1. Article by Gina Chon Presentation by AJ, Adam and John Power Point by Michalena

2. Current Lexus Image Comfort Good customer service Boring advertisements Focused on technical features Reliability Conservative Practical

3. Current Lexus Sales Sales grew 7% last year. Sold a total of 322,000 new vehicles. More than a third of the sales come from two vehicles priced in the $30,000 range. Lags behind the world-wide sales of BMW and Mercedes brands.

4. Biggest Names in Luxury BMW Ferrari Mercedes Porsche These brand name cars are known for being fast and luxurious. More appealing to the rich who want a stylish car.

5. Obstacles Loyalty to previously owned brands. High-end car advertisements typically target males but 51% of Lexus buyers are female. Slow process to change the public’s perception. Less “prestige luxury” cars. Sold only in certain foreign markets.

6. The Start of Lexus’ “New Push” Started in 2005. Prompted by Toyota’s sales hitting record highs. The super-affluent team surveyed car buyers who had at least $5 million in assets.

7. Survey Conclusions The ultra-rich have multiple cars – it is not necessary to compete with other brands but rather complement them. Wealthy buyers like unique experiences. Rely on peers for advice, not advertisements and other third-parties.

8. What is Lexus doing? Designing cars to complete more flashy brands rather than compete with them. Introducing several vehicles priced at $70,000 and above. Hosting parties and fashion shows. Created new position of “brand experience manager” in each of its regions of the U.S.

9. New Lexus Vehicles LS600h – a hybrid electric luxury sedan priced at over $100,000. In 2008, Lexus will release a sports car with more than 500 horsepower to attract more male buyers.

10. Conclusion Lexus does not currently have the credibility or brand-name appeal of other luxury cars. Steps they are taking should slowly change the image of Lexus and increase sales among the wealthy.

11. Lexus BMW