Lexus points to increase in long-term marketing investment returns

Corporate manager for luxury car brand tells AANA Marketing Dividends program it's upping the emphasis on winning brand equity

Luxury car manufacturer, Lexus, has seen the return on marketing investment of long-term impact activities in order to improve brand equity double thanks to a repositioning of its strategy.

Speaking on the latest AANA Marketing Dividends program, Lexus corporate manager, Adrian Weimers, said Australia is one of the most competitor car markets in the world, with 65 car brands and about 350 models to choose from. This is having a huge impact on the market the brand approaches its marketing strategy, and putting the emphasis on winning top-of-mind share.

At the same time, improved affordability is seeing renewed growth in luxury car sales, and Lexus has joined a range of providers in the luxury category by creating a lower entry price, allowing consumers to engage with the brand earlier in their lifecycle, Weimers said.

“Twenty per cent of our luxury car sales at the moment are to people aged 35 years and under,”he commented. “Most have grown up with luxury vehicles or luxury goods as an aspiration, so the desire to own luxury vehicles won’t diminish. While we wouldn’t target millennials specifically, I think that they are tastemakers and there’s a lot that you can learn from them to shift and change your approach to presenting your brand.”

While car manufacturers have traditionally focused on model launches as a big area of spend, Weimers said the emphasis now needs to be on winning mindshare, while preserving prestige and credibility.

“Everything you do has to be around recency, and your whole marketing strategy has to change accordingly,” he said.

Weimers noted Lexus has year-on-year sales growth targets it’s trying to meet, and that it’s increased its investment into long-term return on marketing in order to make this happen. It's tracking this through attribution models, prior and post its repositioning as a brand, and found the return on marketing investment had improved by 10 per cent.

“You can also split out marketing investment that drives short-term sales versus marketing investment that returns long-term brand equity, and that return on investment for the long-term brand equity has actually doubled,” he said. "That supports our repositioning strategy and when I go in to see our financial officer later this year, I'll certainly be making that case."

Weimers also highlighted the profound impact digital has had on the purchase cycle for car brands. He said insights research undertaken by the industry showed consumers start with two brands.

“You add, you subtract, and then you buy something that is completely different to what you started out looking for,” he claimed. “From a marketer’s perspective, you have to work out what the moments are that you need to win, and where you can change consumers’ direction.”

More from the Marketing Dividends program:

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

JP54,D2, D6, JetA1 EN590Dear Buyer/ Buyer mandate,We currently have Available FOB Rotterdam/Houston for JP54,D2, D6,JetA1 with good and w...

Collins Johnson

Oath to fully acquire Yahoo7 from Seven West Media

Read more

Great content and well explained. Everything you need to know about Digital Design, this article has got you covered. You may also check ...

Ryota Miyagi

Why the art of human-centred design has become a vital CX tool

Read more

Interested in virtual events? If you are looking for an amazing virtual booth, this is definitely worth checking https://virtualbooth.ad...

Cecille Pabon

Report: Covid effect sees digital events on the rise long-term

Read more

Thank you so much for sharing such an informative article. It’s really impressive.Click Here & Create Status and share with family

Sanwataram

Predictions: 14 digital marketing predictions for 2021

Read more

Nice!https://www.live-radio-onli...

OmiljeniRadio RadioStanice Uzi

Google+ and Blogger cozy up with new comment system

Read more

Blog Posts

A Brand for social justice

In 2020, brands did something they’d never done before: They spoke up about race.

Dipanjan Chatterjee and Xiaofeng Wang

VP and principal analyst and senior analyst, Forrester

Determining our Humanity

‘Business as unusual’ is a term my organisation has adopted to describe the professional aftermath of COVID-19 and the rest of the tragic events this year. Social distancing, perspex screens at counters and masks in all manner of situations have introduced us to a world we were never familiar with. But, as we keep being reminded, this is the new normal. This is the world we created. Yet we also have the opportunity to create something else.

Katja Forbes

Managing director of Designit, Australia and New Zealand

Should your business go back to the future?

In times of uncertainty, people gravitate towards the familiar. How can businesses capitalise on this to overcome the recessionary conditions brought on by COVID? Craig Flanders explains.

Craig Flanders

CEO, Spinach

Sign in