With the Black Panther tie-in, Ericksen said he believes Lexus can make a positive impression on both younger customers and minorities. As recently as 2007, Lexus LS sales had risen to the third-highest annual total in the nameplate’s history: 35,226 units, a 16-year high. Here are some of the best reasons why demographics matter. Toyota has managed to make most of their vehicles uglier than they were before. Can you say that about any older LS? The new design fails so many tests. Godzilla, Ford’s 7.3-Liter Monster Motor King? The problem is that it suffers from “Modern Lexus” flu. Detailed demographic information is available from the Census Bureau's website. The consumer’s age is between 30 to 50 years old. As SCE pointed out, a different demographic bought them, one with more money than the target demographic that’s forced to dabble in the used vehicle market. However, unlike for say, Mercedes, where S Class owners may have switched to the GLS or G-wagon, LS owners really don’t have an option aside from the aging GX/LX – the LX in particular being a modest seller. LS500 is a massive mistake. To compare that to the US population, the median household income in the United States in 2017 was $61,372 . One year ago was at new car show and sat in a new LS. Rather than attracting 1,000 buyers per month, the LS attracted 461 on average.Granted, the market was hardly kind to the LS’s competitors. Demographic segmentation is the division of a target market into smaller groups of people who share demographic characteristics. On the whole, different age groups have different interests, values, incomes, and buying patterns. Demographic. You can get an Avalon for less money, and still feel like you’re riding a cut above a Camry. These were the basic customer thinking process. "We are going after a younger customer, and just from a demographic standpoint, the younger you go, the more culturally diverse the population gets," Cooper Ericksen, Lexus' head of marketing, told Bloomberg. Anyone forecasting a sales increase for a sedan at this point is silly. The silky smooth Toyota V8 was a quintessential part of the package, it and the build quality are what makes these cars so desirable even on the used market. I’ve owned several LS models over the years and their reputation is well earned, but I have a 7 series now. Lexus’s failure to compete in that class, relying only on antiquated off-road trucks, is a massive strategic blunder. The newer ones just don’t do anything for me..That gaping maw kills it. In fact, when Lexus first outsold Mercedes-Benz and BMW on an annual basis, the LS was one of just three Lexus nameplates. Then in 2000, Lexus became America’s top-selling premium marque. Ugly design, so so performance, and poor reliability. 2nd – the sleeker profile of the LS 500 cut down on rear passenger space compared to the LS460L; these days, the ES has a roomier rear passenger compartment. Ugly grille, shape like ES, no interior size advantage over the grown up midsize ES. Reliability? Consumer preferences, perceived cheaper gas, higher ride height of SUVs and demographics of its customers have dictated to Lexus what their buyers wanted. Shocked at how cramped it was in the cockpit. Nearly 43,000 copies of the LS were sold in 1990, for example, at a time when BMW’s 7 Series did just a quarter of that volume; and with Mercedes-Benz some 17,000 units abaft. © 2020 MotorTrend | MOTOR TREND GROUP, LLC. B. In addition to styling, there’s the downgrade from the V8 to a pedestrian V6. My take is this: LS, Supra, LC, 86 and the like at this point are projects favored by Mr. Toyoda. 22) Lexus targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. Welcome to climbing up AND ducking down into your vehicle. Mr. Toyoda I believe sees these niche models are important to the overall health of Toyota/Lexus. Sure I’ll hammer the exit ramp or cloverleaf but comfort is #1 need 95% if the time. You now have a choice of sedans with cramped rear headroom or CUVs with a buckboard ride because the suspension has to be stiff to combat the high center of gravity. In fact, the influence of the chosen target market on pricing and promotion can hardly be underestimated because, if the company like Ford or Lexus, manufactures cars for its target customer group, it should set the price affordable to customers and beneficial for the … But good thing for you, as new 600h’s were discounted as much as $20k (if not more), so used ones should be quite affordable now. The IS 250's median buyer age is 41 and the IS 350's is 45, compared with … They shot themselves in the foot trying to go for a “bold statement” or what have you, and also in the elimination of the V8. Do you value rear seat comfort and a good ride/handling balance? In the second-half of the year, Lexus fell 18-percent shy of its monthly target. Basically like a CT6 done right. When Marvel's The Black Panther hits theaters next month, expect the Lexus LC 500 to get a lot of screen time. Target market. The LS has gone from the best selling flagship sedan (by a good margin) to a distant 3rd, which spells trouble as the US market is by far the largest market for the LS (the LS isn’t a big volume seller in Japan). A) intermarket segmentation B) loyalty segmentation C) life-cycle segmentation D) targeting segmentation E) psychographic segmentation Answer: A 23) When the size, purchasing power, and profiles of a market segment can … Otherwise, your marketing strategy is basically just a stab in the dark. Simple minimalist clean lines were what made past Lexus elegant and classy. Choosing one or multiple segments to target (market targeting). "Detroit Three: Remote Work Goes Into Effect in U.S., Unless You’re Working the Line", "Jeep Wrangler and Gladiator Recalled Over Toasted Clutch", Tales from the Service Desk: Extended Warranties and the Selling of a Scam, Junkyard Find: 1959 International Harvester AM-80 Metro-Mite, 2022 Honda Civic Hatchback Reprises Golden Days, Rare Rides: Be a Pioneer in a Jeep Cherokee From 1985. According to Bloomberg, that's because it's not only T'Challa's personal ride in the film, it's also part of Lexus' plan to attract younger, more diverse buyers and ultimately regain its place as the top luxury brand in the U.S. As baby boomers get older, it makes sense that luxury automakers would try to attract younger buyers. But Lexus is hitting the targeted median ages for products aimed at younger buyers. Yet with the launch of a new model in 2018, Lexus intended to dramatically increase the U.S. sales volume for its biggest and most costly sedan. Audi only sold 2,963 A8s; half the number of A8s moved just half a decade earlier. Define the Lexus branding strategy. Lexus initially hit that target, to be fair, but eventually fell far short. The car is 205 inches long yet feels cramped inside. Over the course of three decades, Lexus has accomplished remarkable feats in the U.S. marketplace. Lexus hadn’t topped the 12K mark since 2010 and hadn’t hit five-digit territory since 2013 for that matter. 3rd – V8 no longer available. @bd2, I just loved that exposition and well thought-out analysis. The interior is a work of art. The new one looks like larger Nissan Versa sedan. New LS is too long and squatty. Lexus seems to have lost the thread and aren’t competitive, in style and competitiveness, with the German 3. The old designs convey stateliness and class, like the old benz sedans. Even Cadillac looks restrained compared with this car. Personally I think this gen should be LS500h standard and then optionally use the 7200RPM 2UR-GSE in an F-sport trim. Lexus is expanding the idea of luxury to attract a younger demographic of drivers. Why Knowing Your Target Market Is Important. The Lexus LS, the brand’s flagship sedan, was an especially important piece of the puzzle in those early days. The LC 500 is the best example for the design language and sales have been struggling. I find your comparison inaccurate, insulting, and unfair both to Remington and to the ’61-’65 Lincoln Continental. What is to like? I just don’t like the look of the new LS at all. I love the brand, product, resale and performance BUT in that arena I want comfort. Lexus reported late last year that its IS buyers are now averaging under 30 years old. I am surprised that they sell them at all even at current level. A new Genesis G90 is the old Lexus LS. 4th – reliability doesn’t factor in as much due to (a) the Germans having improved in that dept. This can enable you to correlate positive responses to your product or service with specific demographic groups – the same groups that you should later target. But as the LS gained license to move upmarket, as the Great Recession came and went, as the tastes of luxury car buyers became the tastes of luxury SUV buyers, the LS became something of a forgotten flagship. It can save you money, increase profits, and can make or break a company. Right now the sweet spot is the 2013-17 facelift fourth-gen cars, but expect good deals on the fifth gen within a couple years. Bracken said, "It's a very purposeful and strategic move on our part. I liked every LS generation (weak styling on the 01-03, before they sharpened it in 04), but don’t like the current model’s styling at all. Now I struggle to find the advantages. I am sure the SUV/CUV surge played a part in it but please look at the current design. If accurate, shows that Toyota isn’t finding ROI enough to warrant investing too much into their RWD sedan lineup. Strategy of targeting audience and market … By 2019, Lexus was selling only around 100 LCs per month in the U.S. Timothy Cain is a contributing analyst at The Truth About Cars and Driving.ca and the founder and former editor of GoodCarBadCar.net. That was an 80-percent year-over-year increase thanks to the arrival of a new generation. Years ago ,1992, when I bought an LS 400, I got a V-8 Lexus for the price of a 6 cylinder Mercedes. I REALLY like the redesign… more interesting design in and out, great seats, lots of room, more engaging to drive. ", But that doesn't mean Lexus has any plans to rein in its styling department to keep older customers happy. Not just sedans but LS is a poor performer against the Germans and ranked last place in segment in CR rankings. 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