MKT302 - Lexus Digital Marketing Strategy Analysis and Competitor

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This report provides an analysis of Lexus's digital marketing strategy, identifying its weaknesses in reaching potential customers due to issues like cybercrime, hacked websites, and reliance on online advertisement alone. It contrasts Lexus's approach with the successful digital marketing strategies of Toyota Harrier, which focuses on customer engagement, persuasive advertising, and transparent communication. The report recommends that Lexus prioritize website security, adopt e-selling procedures, and enhance its overall digital marketing strategies to improve brand awareness and customer satisfaction. The analysis concludes that Lexus should focus on improving its digital presence to maintain its position as a pioneer in hybrid cars and a leading luxury automobile brand. Desklib provides a platform for students to access similar assignments and study resources.
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Digital Marketing
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Introduction
In this report, I will focus on a Lexus car premium brand. Lexus is one of the luxury cars
manufactured by the Toyota Motor company. The Lexus brand is sold in many parts of south and
northern America, Asia, Europe, Oceania and Africa. Lexus is ranked among the top reliable and
quality automobiles based on the consumer and power reports. From 2007, Lexus vehicles set a
new record in terms of selling potential. In 2007, 8.18 million Lexus automobiles were produced
by the Toyota Company (Batra, Lenk, & Wedel, 2010). Out of the produced stock of the Lexus
automobiles, 7.61 have been sold. The selling of the Lexus premium brand is increasing and
targeted to all regions across the world except Asia as well as Japan. The report given by the J.D
reports shows that the difference percentage sale of Lexus between the year 2006 and 2007 had a
positive deviation of +6.2% while the production increased by +6.7% (Avila & Isabel, 2008).
The production of Lexus brand increased from 2006 to 2018 with many customers showing
much interest with the new Lexus premium brand. In the year 2005, the Lexus brand was
introduced in Japan which included IS sedans and convertible SC.
Digital marketing strategies used by the brand
The Lexus brand has been using an online marketing strategy to reach as many customers
as possible. The company has used online marketing gigs such as a blog for advertisement of its
automobiles. The Lexus brand is getting the social type of networking sites especially for the RX
hybrid buyers which enables them to have proper communication between them and potential
customers. The company has been using the car log which is so attractive and description of the
car features for attraction of the potential customers (Oliver, Schab, & Holweg, 2017). The
Lexus Company has been advertising its premium Lexus brand through social websites such as
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Jalopnik.com which is marketing and advertising websites for luxury goods and services such as
mobile phones, automobiles and building materials. The company has its facebook page and
Instagram page in which the potential buyer is able to reach the Lexus online support for any
enquiries. The company has employed the 24/7 online support who are in its Facebook page and
Instagram ready for the assistance of any potential customer who is willing to get the information
regarding the car (Verma and Verma, 2018).
Reason why the brand has been unsuccessful with their digital marketing strategies
The brand has not been successful in its digital marketing strategies following the fact
there are many issues of cyber crimes. There are reported cases whereby the online websites
displaying the Lexus brand have been hacked and false information added to its real features of
their automobiles. This has been reported and suspected to be done by company competitors who
destroy the real features of the Lexus premium brand for their personal gain. Currently, there are
reported cases in which the photos displaying the Lexus car brand have been deleted in the
Jalopnik.com website and replaced with porn photos and ghetto children (Faull, 2018). This has
been a big mess in advertising the brand since many of the customers have wondered what kind
of picture the company is displaying on behalf of advertising their brand. This has reduced the
customer's trust with the company especially who read those posts and therefore leaving negative
reviews in the marketing websites regarding the company displays. Lastly, the online
advertisement is not enough for the company since most of the customers are not able to access
the online information regarding the brand. Most customers depend on live persuasions and road
shows which is not the case in the digital Lexus car digital marketing strategies.
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Competitor brand from the same industry which has been very successful in enhancing
brand awareness using digital marketing strategies
The Toyota Harrier is one of the Lexus brand competitor following the strategies which
the competitor has put across regarding the digital marketing of their brands. Toyota harrier
manufacturers are using e-selling digital strategy in selling its brands as well as giving
information to the clients regarding their brand. The reason as to why the Toyota Harrier brand is
so successful in its digital marketing strategy is that it is more attached to the customers than
Lexus do. Harrier advertisements are done all over the world. Its advertising strategy is so
persuasive especially the discounts that they offer their customers upon purchasing the car
(Kapferer & Bastien, 2009). It has displayed the best features in its online websites which are so
attractive to the potential customers as compared to the Lexus which most of the time just show
the customers the log of the Lexus brand. I think the reason why harrier has been successful in
the enhancement of its brand through digital marketing is that it has been clearly defining the
pros and cons of the car in the social media and advertising websites hence customers gaining
more trust in Toyota Harrier than Lexus.
Recommendations
The Lexus brand company should look for best digital marketing strategies so as reach
many potential customers. They should as well focus on how the features regarding the brand
will reach the customers without bias. This can be achieved by making sure that the websites that
host their advertisements for their brand are well secured. The company should adopt e-selling
procedure so as to make sure that they reach all classes of the customers.
Conclusion
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The report has shown the basic information regarding the Lexus brand. The new model of
the car is one of the most effective brand Lexus can ever produce. The company is there
supposed to focus on improving the quality of the car and try as much as possible minimize the
challenges faced through competition. They should improve on their digital marketing strategies
so as to satisfy their customers fully. Currently, the Lexus brand is positioned as pioneer hybrid
cars all over the world. It is classified under classic cars with comfort features and therefore one
of the luxury cars all over the world.
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References
Avila, S. I. M., & Isabel, S. (2008). Lexus: a premium brand. The Ritksumeikan Business
Review, 47(2), 71-89.
Batra, R., Lenk, P., & Wedel, M. (2010). Brand extension strategy planning: Empirical
estimation of brand–category personality fit and atypicality. Journal of marketing
research, 47(2), 335-347.
Faull, J. (2018). Lexus launch new website across Europe. [online] Available at:
https://www.thedrum.com/news/2012/06/28/lexus-launch-new-website-across-europe
[Accessed 5 Dec. 2018].
Kapferer, J. N., & Bastien, V. (2009). The specificity of luxury management: Turning marketing
upside down. Journal of Brand Management, 16(5-6), 311-322.
Oliver, N., Schab, L., & Holweg, M. (2017). Lean principles and premium brands: conflict or
complement?. International journal of production research, 45(16), 3723-3739.
Verma, S. and Verma, S. (2018). Lexus Brand Strategy | Openview Blog|Lexus Brand Strategy |
Openview Blog. [online] OpenView Labs. Available at:
https://labs.openviewpartners.com/lexus-brand-strategy/ [Accessed 5 Dec. 2018].
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