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

Blog Posts

Does your brand need a personality review?

There are five tell-tale signs your brand needs to take a long hard look at itself.

Charlie Rose

Senior Strategy Consultant, Principals

How to create profitable pricing

How do we price goods and services? As business leaders, we have asked ourselves this question since the history of trading.

Lee Naylor

Managing partner, The Leading Edge

Sport and sponsorship: The value of event sponsorship

Australia’s cricketers captured the nation’s attention during their recent run to the semi-final of the ICC Men’s World Cup. While the tournament ultimately ended in defeat, for over a month it provoked a sense of belonging, hope and empowerment for millions of people across Australia. Cricket, and sport in general, has a near-unique ability to empower individuals, irrelevant of their background, demographic or nationality.

Nikhil Arora

Vice-president and managing director, GoDaddy India

I should check these guidelines. I think it's important for me. Thanks for the info!

Juana Morales

IAB releases social media comment moderation guidelines

Read more

I didn't know about that. Thanks!

Jamison Herrmann

Twitter 'recap' helps you catch up with missed tweets

Read more

😂😂😂😂😂😂😂😂

Max Polding

What it takes to turnaround an iconic Australian brand

Read more

I spend a lot of time in my professional life as a provider of marketing solutions trying to persuade customers that CX, UX, UI and Custo...

sketharaman

Gartner VP: Why CMOs and CIOs must band together to make CX a discipline

Read more

I live the best deals at LA Police Gear.

Tyrus Rechs

6 Ways to ramp up Social Media to Your Web Design

Read more

Latest Podcast

More podcasts

Sign in