Here it comes again, another automotive luxury brand seeking to have “wider appeal without tarnishing the image” (Automotive News 1/11/10).
Lexus is concerned that their customers are too old and they are not appealing to the next generation of luxury car buyers. A reasonable concern.
Lexus appears to be addressing this concern in the usual way that automobile manufacturers do.
First, you add product to your line-up that is designed to meet the requirements or interests of the new target group (after all, they’re very different from the current customers), then you lower the cost of entry into your franchise (they don’t have as much money as the current customers) and finally use marketing to convince the younger target that your brand is cool (at least cooler than they think it is).
Unfortunately, this approach always has the same result, you may succeed in selling a few more cars to the new target group but you leave your current customers confused and your brand weakened.
The Automotive News article even quotes Jessica Caldwell from Edmunds.com who says: “Lexus was really strong, but they have lost their footing….BMW is the ‘Ultimate Driving Machine.’ We’re not really sure what Lexus is.” I agree with her. The overheated luxury segment experienced so much growth in the ’90s and early ’00s, that many of the luxury marques that were fortunate enough to have clear positionings in the beginning were weaker and less distinct at the end of the run-up.