Slipping Away:
Did Someone Hit the Lexus Marketing
Folks with a Stupid Stick?
The LA Times on September 8, 2004 ran an
article about the luxury car maker, a division of
Toyota, and their plans to revamp their product line
so it appeals to a younger, less Boomer market.
We had to double-check the date on the masthead
as we read the piece to make sure it wasn't in fact
April 1st, because it contains some of the most
foolish
sounding things we've heard in recent years from
such an "astute" marketer.
Let's share the folly [but you'll have to listen to our
rant]:
The article says Lexus grew from nothing to become
the leading luxury car seller in America in 15 short
years because "Lexus...astutely targeted a
customer base of baby boomers entering their peak
earning years."
[Okay, we're with you so far...when do we swerve
off the road?]
The article continues..."But rivals sell to the same
crowd of fiftysomethings. And in recent years
General Motors Corp.'s Cadillac, BMW and
DaimlerChrysler's Mercedes-Benz all have done a
better job of attracting the more serious automotive
enthusiasts among boomers by offering models with
bigger engines, faster acceleration, stiffer handling
and more daring styling.
"Dennis Clements, 59, head of U.S. operations for
Lexus, part of Toyota Motor Sales USA in Torrance,
acknowledges that the brand's core market of
aging
boomers 'is not a good one to build an image
in.'" [Emphasis added!]
[Huh? Who's been buying your cars? Who made you
number one?]
The article goes on..."To keep the marque fresh and
draw younger buyers, Lexus is redesigning its entire
lineup over the next four years. 'You'll see sportier
cars, more powerful cars and trucks, [with] a wider
range of engines,' he said."
[He's an idiot. But wait, he gets even dumber:]
"First up early next year is the...hybrid RX400, with a
base price expected to top $45,000..."
[Pray tell, Mr. Clements, who has $45,000 to spend
on a new car? A 30-year-old or a 50-year old?]
"For all the new Lexus models in the works, Clements
talks a lot about the need to add a flagship vehicle
priced at around $100,000...It could be a four-door
sedan to compete with Mercedes-Benz's big S-Series
sedan (the top-end model costs about $122,000),
and BMW's redesigned 7-Series (around $117,000).
Mercedes, Clements points out, has a dozen models
that sell for $70,000-plus, 'while at Lexus we have
none.'"
[Whap, whap, whap goes the stupid stick. What
planet does Mr. Clements inhabit where a $100,000
car is attainable to anyone young who isn't a pro
sports athlete or Mark Cuban?]
[End of rant. Apologies to Dennis Miller.]
What Lexus fails to understand is that the Boomer
market, aged 40 to 58, is huge and will be buying
luxury automobiles for 30 to 40 more years.
The "aging Boomer" is not one person, but 78 million.
With the highest discretionary income in their lives.
The least amount of debt in their lives. The most
appreciation for the finer things. And so and so
on.
It is our sincere hope that Lexus sees the light and
does the math -- there simply aren't that many
under-40-year-olds period, much less those who can
afford a Lexus. Revamping the product to be relevant
to them and presumably less relevant to the very
audience that created and built the brand is about
the dumbest thing we've heard in quite a while.
Companies often forget that they don't own the
brand, their consumers' do. Just ask Coca-Cola who
owns Coke.