Toyota Lexus Market Penetration Strategy
In 1989, Japanese automobile brand Toyota launched high ended luxurious car, Lexus in American market. Lexus was the new brand and Toyota didn’t mention their Toyota intentionally in the Lexus commercial. As a matter of fact, Toyota’s cash cow was Corolla and Camry and both of them was regard as very reliable and price worthy car. However, in American thought that Toyota didn’t match with the luxurious automobile brand.
The LS 400 that was the first model of Lexus was $ 35,000 and 16,000 cars were sold. Experts
estimated that Toyota barely made a profit with $ 35,000 retail price. However, with this penetration strategy, Toyota sold 63,000 cars and the people who were riding the LS 400 became the valuable oral marketer for Toyota. For the first 2 years, Toyota secured the American luxurious automobile market.
LS400 became kind of symbol in high ended car market and always the top of the consumer satisfaction survey. The doubt American might have about the capability of Toyota suddenly disappeared. And then Toyota increased the price of Lexus.
The history of LS 400 retail price
1989 $35,000
1990 $35,380
1991 $39,000
1992 $42,600
1993 $47,030
1994 $50,370
1995 $51,680
In this way, Lexus successfully positioned itself as a luxurious brand. For the first year, Lexus barely made a profit but in the long term perspective Toyota developed the Lexus brand as the strongest brand in the American high ended car market and now Lexus became star item concering BCG matrix.
In 1989, Japanese automobile brand Toyota launched high ended luxurious car, Lexus in American market. Lexus was the new brand and Toyota didn’t mention their Toyota intentionally in the Lexus commercial. As a matter of fact, Toyota’s cash cow was Corolla and Camry and both of them was regard as very reliable and price worthy car. However, in American thought that Toyota didn’t match with the luxurious automobile brand.
The LS 400 that was the first model of Lexus was $ 35,000 and 16,000 cars were sold. Experts
estimated that Toyota barely made a profit with $ 35,000 retail price. However, with this penetration strategy, Toyota sold 63,000 cars and the people who were riding the LS 400 became the valuable oral marketer for Toyota. For the first 2 years, Toyota secured the American luxurious automobile market.LS400 became kind of symbol in high ended car market and always the top of the consumer satisfaction survey. The doubt American might have about the capability of Toyota suddenly disappeared. And then Toyota increased the price of Lexus.
The history of LS 400 retail price
1989 $35,000
1990 $35,380
1991 $39,000
1992 $42,600
1993 $47,030
1994 $50,370
1995 $51,680
In this way, Lexus successfully positioned itself as a luxurious brand. For the first year, Lexus barely made a profit but in the long term perspective Toyota developed the Lexus brand as the strongest brand in the American high ended car market and now Lexus became star item concering BCG matrix.
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