Digital Marketing Strategies for Lexus UX250h

This assignment requires an analysis of digital marketing strategies employed for promoting the Lexus UX250h. Students need to examine various online resources such as provided journal articles and a website link about the vehicle to understand the key trends, tactics, and tools utilized in its digital marketing campaign. The focus should be on understanding how these strategies aim to reach target audiences and effectively promote the vehicle.

MARKETING
COMMUNICATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Range of products provided by company & profiling of a specific product...............................3
Marketing Communication Tool.................................................................................................4
PART 2............................................................................................................................................8
Marketing communication plan..................................................................................................8
SOSTAC Framework..................................................................................................................8
STP............................................................................................................................................14
Product Life Cycle Management Plan......................................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Marketing communication is a strategy used by business organisations to promote their
products & services in market. This technique is also applied by companies in communicating
detailed information related to features & benefits of products in target market so that customers
get attracted. Objective of marketing communication is to enhance customer base & brand image
of company by conveying products. This report includes an overview of product line of Lexus.
Further, this report gives details of a specific product of company which is Lexus UX250h.
Furthermore, this report explains different types of marketing tools used by brand and their
features, characteristics & effectiveness. Moreover, this report elaborate segmenting, targeting
and positioning theory of marketing. Further, this report includes a strategic marketing
communication plan. Furthermore, this report critically analyse various strategies of marketing
communication. Moreover, this report explains effectiveness of strategies of marketing
communication.
PART 1
Range of products provided by company & profiling of a specific product
Lexus is a multinational company which offers Luxury Vehicles and Performance
Vehicles in 70 countries across the globe. It is the 10th biggest Japanese Company in auto mobile
sector. Company has its headquarter in Nagoya, Japan and it is also has its operational centres in
countries like Belgium, Brussels and United States. Lexus does marketing of its products &
services in more than 70 counties across world with this it becomes Japan's largest selling auto-
mobile company. It is sub a division & a brand of Toyota(Witten and Pal, 2016).
Lexus includes wide rand of models in its portfolio such as sedan, SUV, coupé and
convertible. It also introduce sports car in 2007 and company launches wide range of innovative
models in all of this categories like Hybrids & F models which includes RX 450h, HS 250h, GS
400 & FC 400. Sales volume of Lexus is increasing day by day which shows that marketing of
its products are very high.
For enhancing profits and customer base of company in 2019 it is launching Lexus US
which maximises its productivity & performance as Lexus is launching this product by replacing
it with CT Hatchback which is not liked by customers. UX25h is more powerful car with 143
horsepower antinkson cycle thus, its is the fasted product launched by Lexus. Organisation is
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launching this product in market for young generation thus, its target customers are youngsters
and target market is streets of European City. Because this car is small, suitable for city streets,
having innovative features and luxury. Thus, Lexus is focusing to invest in marketing of this
product to enhance its sales volume(Yasmin, Tasneem and Fatema, 2015).
Marketing Communication Tool
For enhancing sales volume, market share and customer base of company's new product
Lexus use various types of marketing tools. Marketing tools are elements through which firms
promote its products & services and creates awareness about companies product in individuals.
These tolls are also beneficial for Lexus in building relationship with its customers. Marketing
tools also helps companies in establishing effective communication, Company use different types
of marketing tools for the marketing of UX250h, which are discussed below-
Sales Promotion- Sales promotion is when organisation use different strategies such as
incentives, discounts, coupons and attractive schemes to retaining its customers. Lexus promote
UX250h by offering free taste drives to its customers and it also provides discount such as 5-
10% , this is a characteristics of this marketing tool. Company use this marketing tool with the
motive of enhancing sales of its new product. For this Lexus also influence customers to buy its
products by giving advertisement related to features and discounts through banners, glorifiers,
wobbler's and newspaper.
This marketing tool used by Lexus is effective because with this customer can get
experience and it is easy for customers to make decisions related to purchase of car. It is also
effective as it helps customers in differentiating features of UX250h from other brands.
On the other hand, Sales promotion is a short term marketing strategy thus, it is not
beneficial for Lexus in long term. This tool is not effective in maximising revenue of firm.
Advertising- It is the most efficient and effective marketing tool which helps firms in
promoting and enhancing their brand image. Features of this marketing tools is it create
awareness of product among customers and it is to be given to many places at a same time which
requires less time & effort. Characteristics of advertisement one advertisement related to
UX250h can used in many places and it requires huge investment. Because, Lexus advertise this
product through various sources such as radio, print media, television and social media.
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Advertisement is very effective marketing tool for Lexus as it helps company in creating
its brand image and it is beneficial for firm to communicate necessary information to its
customers. AS UX250h is newly introduced product advertisement is an effective tool and it also
helps Lexus in enhancing its markets share by increasing sales of its products & services.
Whereas, Advertising needs high investment which in turn reduces profit margin of
Lexus. Marketing manager of company also needs to check effectiveness of marking programme
as it is liked by public or not. Advertising is also prepared in accordance with different culture
and society. Further, advertisement is effective & liked by customers when Lexus use innovative
ideas in it(Chaffey and Ellis-Chadwick, 2019).
Personal Selling- According to this marketing tool Lexus interact directly with its
customers and give detailed information about features & influence them to purchase UX250h.
Feature of this marketing tool is it facilitate direct relationship with customers. Characteristics of
this tool is it helps customers in choosing right product by giving right information to customers.
As per this marketing tool marketing manager of Lexus decide a target audience and contact with
customers with the helps of phone calls & emails. While contacting with customers company
convince customers to buy product by giving them information. Marketing in this toll closes with
selling the product thus, it is beneficial for company in maximising sales volume of UX250h.
This tool is very effective as it helps Lexus in establishing relationship with customers
and it also effective as resolves all the queries of customers. It is also effective as it offer the
product by satisfying needs of customers which further important for brand in its potential
growth and development(Park, Ok and Chae, 2016).
However, personal selling consume much time and efforts of marketer which is a
disadvantage for Lexus in promoting its new product which is UX250h.
Direct Marketing- Lexus also invest in this marketing toll for marketing of UX250h.
According to characteristics & features of this tool also facilitate face to face communication
with customers. Company does promotion of UX250h by texting directly to its customers and
by using catalogues, brochures and emails. Existing customers of company also does marketing
of its product by giving reviews and feedbacks on social media sites.
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This marketing strategy is effective as it contacts directly to customers with this
customers shows their interest in product launched by company. This marketing tool is also
beneficial as it helps in managing relationship with customers and it also gives satisfaction to
customers. All this efforts further benefits Lexus in increasing its profitability, brand image and
market share in global market.
On the other hand, Direct Marketing is an in efficient tool as it does not give detailed
information to customers and many customers ignore messages and emails sent by Lexus.
Personal Relation- Lexus also use this marketing tool to promote & enhance sale of its
UX250h in target market. According to features of this tool marketing manager of Lexus builds
relation with its customers by organising various events and by giving information about product
to its customers through press release & news. Characteristics of this tool is its is a short term
advertisement tool creates for establishing awareness among youngsters so that they show their
interest in buying new model of Lexus. By conducting various events & programmes company
gives information about product as why it is unique and different from other products. Lexus
also organise programmes in colleges and institutions as this product is specially designed for
youngsters.
This marketing toll is beneficial for Lexus as with this company directly interact with
target customers and this in turn maximises profits, sales volume and market share of brand.
Personal Relation helps company in retaining its customers for long term which further helps
firm in enhancing its customer loyalty(Luxton, Reid and Mavondo, 2015).
Marketing Theory
Marketing theory is an approach used by organisations with an objective of maximisation
of sales. According to this company promote & place its products & services in target market in
a way which creates demand among customers for that product. Lexus apply marketing theory
for enhancing sale of its upcoming product by attracting customers. This theory also important
for firm as its enable it in making marketing strategy. Marketing theory used by company
includes Segmentation, targeting & positioning, these all are discussed below-
Segmentation- Segmentation is a process in which organisation divide its market in
different groups according to geographical area, life styles, preferences, buying behaviour and
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belief's & values. Lexus also differentiate its market according to age group, life styles and
purchasing power. After statementing market on these basis company design information for all
type of segments differently so that they can get attracted.
Lexus gives details regarding UX250h such as its importance, features and new add ons
to all its segments. Segmentation makes easy for firm to influence customers and it helps in
maximising sales volume of company. Lexus use different marketing tolls for different segments
such as it uses public relation and advertising for youngsters. For adults it uses sales promotion
and direct selling. Segmentation also benefits company in selling its product in different market
as with this it can decide in which market it needs to invest more on promotion. For increment in
sales of UX250h brand decide to promote this product more in Europe and Less in United States.
This segmentation is done by company in accordance with needs & desire of geographical area.
Targeting- It is a marketing activity in which company decide in which target market it
require to promote &b offer its product & services. In this process Lexus target and select a
specific segment in which it offer its UX250h. Thus, company decided to target young
generation as it thinks that youngsters are more desperate in purchasing innovative & luxury cars
. Further brand set its target market and make decision to launch its Lexus UX250h in Europe as
it is affordable and small which is street friendly in that target market(Blakeman, 2018).
Selection of target market helps company in giving information and it also require less
cost in developing advertisements & promotion strategy as it is given to same market &
audience. Focus on same target market enhances profits of company. On the other hand, it is also
inefficient of Lexus as its profits & brand image in other market declined.
Positioning- Positioning is a process of placing & offering product in target market.
Objective behind this process is making product available in target market and to target audience
or customers. Positioning of product is done in accordance with feedbacks & reviews received
from customers. This approach is important in creating brand image.
It is also essential for Lexus in developing & managing new product in market.
Company gives information to target audience regarding product by using various marketing
tools such as advertising, personal selling, direct marketing and public relation. It is a market
approach through which company can evaluate its sales volume and demand of its product &
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service ion target market. Lexus 1st place its product in market of Europe(Petersen, Kushwaha
and Kumar, 2015).
PART 2
Marketing communication plan
The marketing communication plan for Lexus UX250h will be followed as :
SOSTAC Framework
Situation
 Swot Analysis
Strengths Weaknesses
 The Lexus is prestigious in the segment
of luxury.
 Continuous innovation to achieve
maximum power from limited
consumption of fuel.
 Strong presence in events of racing
which builds good customer
connection.
 Dynamic and Stylish design creates a
customer base and attraction of
customers.
 Product portfolio of cars of Lexus are
limited in growing markets.
 Tough competition leads to limited
shares of market.
 Distribution and service of network is
limited in Lexus.
Opportunities Threats
 Expand auto mobile market towards
globalization of Lexus.
 Lexus can opt for early mover
advantage in hybrid segment of cars.
 Increase market segment to acquire
new customers.
 Costly brand.
 Competition from other auto mobile
brands such as Audi, Mercedes Benz,
Ferrari, Jaguar, BMW, etc.
Objectives
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 The company focuses to expand their brand in national and international market till the
year end of 2020.
 The Lexus increase their profitability by end of this year by 2%.
 Lexus auto mobile will increase their sales upto 5% till 2020.
 Company will focus to gain almost 80% loyalty of customers till the year 2021.
 Lexus will increase customer base upto 20% by the year end of 2021.
 To reach a market share of 3% in luxurious auto mobile industry by the end of this year.
 To reach satisfaction of customers 95% by the year 2021.
Strategy
Marketing mix
To achieve the objectives the marketing will be done to tailor the targeted audience. The
marketing mix here will describe with three levels, Pricing strategies, promotional strategies,
distribution strategies.
Product
Core Auto mobile
Actual Lexus is a prestigious luxurious brand. The model of Lexus UX250h is a hybrid car
which is a five seater vehicle (Atul, & Mona,(2015). There are front engines in the
car and 4 door hatchbacks.
Extend Lexus EPA estimates will 41 mpg in the city and on high ways it will offer 39 mpg.
The interior material are of excellent quality and the car also owns virtual gauges
behind their steering wheels. Also, the exterior designs are attractive and economic
fuel consumption is the main highlighting attribute.
Pricing
The price of new Lexus UX250h will cost from £29,900 (Lamberton, & Stephen, (2016). The
high price of this car will symbolise high quality and luxurious brand. The pricing has been
exposed to customer at high price due to psychology of luxurious brand consumers. Though this
model of Lexus has high pricing but they offer excellent quality and comfort within their cars.
Place
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The distribution channel of Lesus auto mobile will be other countries as the company aiming to
expand to other national and international boundaries other than UK. The company will place
their channel of distribution in America, china and South Asia.
Promotion
The strategies that will be followed by Lexus will be mix of pull and push elements of
marketing. The company will do promotions through social media marketing, advertisement,
display on billboard, newspaper and paid promotions. Also, Sales Promotion, Advertising and
Digital Marketing will be done by Lexus to increase their sale of model UX250h.
Tactics Pull element
Paid social media ads
The company Lexus will promote their model UX250h by paid social media ads (Pham,&
Gammoh,(2015). Where they will expose special traits and attributes of the car. Such as Hybrid
feature. The company also offer price and their aim of global extension through social media ads
to attract new customers of different geographical boundaries.
Blog
The company will also post blogs regarding safety and security from accident of cars. Also,
Lexus will give security assurance like Airbags in cars by posting blogs every month to satisfy
the queries in mind of customers who are interested in buying this model of Lexus.
Instagram
Lexus will create their brand image by making aware the customers about their new launched
model. This will create a new customer base and also retain existing ones by attracting them with
new model with their identical features.
Facebook
Facebook has their users worldwide. So, by promoting their newly launched brand through
Facebook will help them in attracting new customer base. The customers will know about their
adopted technology by promoting through Facebook. Lexus will able to gain customers from
different geographical boundaries along with UK. Push element
Test driving to attract customers by giving them experience of ride
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The interested and potential customers will give an opportunity to ride this car of Lexus. So that
they can experience its features and quality. This attract customers and by test driving the
company are letting them develop experience (Karimova,(2015).
Create brand awareness by Facebook and instagram
The Facebook and instagram will be use as a push element because the company will need to
make customers aware about their newly launched brand that is UX250h. The company will post
pictures of their model and also disclose identical attributes to gain new customers' attention.
Also, they will offer customers feedback through videos.
Action
An implementation and budget plan will be presented which help the company Lexus to reach
their objectives. Implementation plan will formulate first and this will follow by budget plan
showing estimate of the cost of this six month campaign.
Implementation plan
May 2019 June 2019
5th Blog, instagram and Facebook launch. 3rd New showroom will open in China.
9th Press release send out for model
UX250h.
5th Daily post updated on Facebook and
instagram.
15th Preventive measures for accidents
posted on blog.
16th Newspaper advertisement.
21th Advertisement through Television. 23rd Blog updated regarding first aid cure
after any accident.
26th instagram pictures of model UX250h
will upload.
28th Two showroom will open in America.
28th Pricing of the model UX250h will
launch in an evening event.
30th Test driving campaign in America.
29th Test driving campaign conduct in
America and Asia.
31st Newspaper advertisement in China.
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July 2019 August 2019
1st Paid social media ads. 5th Newspaper advertisement in America
and China
7th Test driving campaign 9th Television advertisement in South Asia.
9th Sponsor sport event of Golf in
America.
16th Test driving campaign in South Asia.
16th Pictures of model UX250h will upload
on Facebook.
21st Four showrooms will open in South
Asia.
23rd Pictures of events of golf will upload. 25th Photographs of opening will be
uploaded on Facebook.
29th Blog related to Hybrid feature in auto
mobile will be updated.
31st Newspaper advertisement in China and
South Asia.
September 2019 October 2019
3rd Test driving campaign in America,
China and South Asia.
1st Paid social media ads will be execute.
5th Photographs of Campaign on
Facebook.
7th Pictures of Lexus UX250h will be
uploaded on instagram.
16th One more showroom will open in
America.
9th Test driving in All showrooms of
Lexus.
18th Facebook and instagram update
regarding opening to create awareness.
16th Feedback video will be uploaded on
Facebook.
22nd Blog related to safety equipments in
auto mobile will be uploaded.
23rd One showroom will open in China.
23rd Newspaper advertisement in South Asia
and China.
28th Advertisement in newspaper of China.
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26th Television advertisement in other
countries.
30th Billboard advertisement for their model
of Lexus.
28th Local event in China will be organised
by Lexus.
30th Pictures of Events will be uploaded in
instagram and Facebook.
Budget plan
Cost of Showroom opening £129,900
Cost of newspaper advertisement £150
Social media paid ads £250
Test driving campaign cost £5,000
Sponsorship of golf event £15,100
Local event in China £1,200
instagram competition £150
Cost of blog writer £150
Expense related to billboard advertisements £250
TOTAL £146,150
Control
Balance score card model will be created to aid in keeping track of the activities of operations
which will lead in objectives achievement.
OBJECTIVES MEASUREMENTS TARGETS INITIATIVES
Financial perspective
Increase growth Market share To reach 3% market
share by the end of
this year.
Focus on competitors
customers.
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Increase in growth Profitability Profitability will
increase by 2% by the
end of this year.
By creating brand
awareness through
social media
marketing.
Consumer perspective
Create brand
awareness
Existing customers'
feedback.
Loyalty of 80% out of
total customer by the
year 2021.
Test driving campaign
at regular intervals.
Creation of awareness
for brand
Satisfaction of
consumer.
To reach 95% of
customers satisfaction
by the year 2021.
Social marketing
through blogs,
instagram and
Facebook.
Internal business perspective
Provide safety and
quality
Excellent quality raw
materials will be use in
production and
manufacturing.
Assurance of 100%
safety for consumers
and economy fuel
management.
Super high control of
chain of supply.
Innovation perspective
Campaign for test
driving.
Campaign
effectiveness
To expand globally in
national and
international markets.
By targeting high class
income of consumers
and interested
customers insights.
STP
VALS Segmentation strategy
Psychographic segmentation of the Lexus auto mobile will focus on high class people. As Lexus
is a luxurious brand which offers cars for only high income class people. Customer who prefer to
buy this cars are generally conscious for their status and buy cars of Lexus which matches their
personality.
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Targeting strategy
Primary target Secondary target
 Attract new customers of different
geographical area.
 Attract customers of rivalry companies
like Audi, BMW, etc (Eagle, Hamann,
& Low, (2016).
 Retain existing customers.
Positioning strategy
On positioning map, the Lexus UX250h will position themselves as increment in expansion
through different geographical boundaries will lead to increase in sales and annual revenue.
Product Life Cycle Management Plan
Product life cycle management plan is prepared by companies to manage overall life
stages includes in development of its product. In this plan organisation manage product from its
origin to manufacturing and selling. Thus, this process is beneficial for firms in introducing new
product in market and creating demand for that product. Lexus also implement this plan in for
promoting & developing its new product which is UX250h. Development of a product includes
four stages and for resolving problems occurring in all these stages such as introduction, growth,
maturity and decline this plan is prepared. Product Life Cycle management plan is discussed
below-
Development- At this stage organisations do a research on new product to check its
viability. Before launching Lexus UX250h in market company does a research on target market
and preference of customers. Company also does a research on how much amount is to be
invested in manufacturing & marketing of its new model. This plan helps brand in introducing its
new model in market.
Financing- In this stage Lexus decide how much money is to be invested in
manufacturing of UX250h and how many cars need to be manufactured. Company also makes
decisions regarding extra investment for further expansion if this product becomes successful in
market.
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Marketing- After this Lexus decide what type of marketing strategies can be used for
creating awareness among customers regarding new product. Lexus does marketing of UX250h
through personal selling, advertisement, direct marketing and public relation. This all marketing
tools helps Lexus in maximising its sales and customer base which in turn enhances overall
profitability and market share of company(Fill and Turnbull, 2016).
Manufacturing- At this stage Lexus evaluate cost of manufacturing of 1 car and if cost
is high than it needs to reduce the cost by as to enhance its sales volume. Because, all customers
does not get ready to purchase product at high rate. Elimination of extra cost also helps Lexus in
gaining more profits (Adeigbe et.al., (2015). Thus, this stage is beneficial for brand in achieving
potential growth in target market.
Information- At last Lexus collects information to customers as they are liking the new
car which is UX250h or not. This information is collected by brand through feedbacks & reviews
on social media sites and companies websites. According to this feedbacks & reviews of
customers Lexus make further changes which makes its product more popular in market. By
doing improvement customer get satisfied which further helps company in managing its new
product from declining stage. For collecting effective information from customer Lexus needs to
develop an efficient information system(Wuryandani, Ismoyowati and Nugrahini, 2018).
CONCLUSION
This report outlined profile of a particular product offered by Lexus. Further, this report
summarises different types of marketing tools used by company to promote its products &
services. Furthermore, this report concludes relevant marketing theory. Moreover, this report
outlined a strategic marketing communication plan with the helps of different communication
theories. After that, this report summarises marketing communication strategy in the context of
global business organisation. Further, this report concludes effectiveness of various stretegies
used in marketing communication.
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REFERENCES
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Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing. Pearson UK. Using twitter data for
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Eagle, L., Hamann, M., & Low, D. R. (2016). The role of social marketing, marine turtles and
sustainable tourism in reducing plastic pollution. Marine pollution bulletin. 107(1). 324-
332.
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Witten, I. H. & Pal, C. J. (2016). Data Mining: Practical machine learning tools and
techniques. Morgan Kaufmann.
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Wuryandani, S., Ismoyowati, D., & Nugrahini, A. D. (2018). STP analysis in marketing
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Yasmin, A., Tasneem, S., & Fatema, K. (2015). Effectiveness of digital marketing in the
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Online
About Lexus UX250h. 2018. [Online]. Available through :
<https://www.caranddriver.com/reviews/a25334805/2019-lexus-ux250h-hybrid-suv-by-the-
numbers/>.
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