Awais

Toyota has announced a new product and distribution strategy for Japan that introduces the Lexus brand and includes the reorganisation of Toyota-brand sales channels into four channels from the current five.

Toyota said that the new product and distribution strategy is aimed at allowing Toyota to adequately respond to future changes in consumer values and in the structure of Japan's highly competitive automobile market.

Specifically, the elements of the new strategy are:

1. the establishment in Japan of the Lexus brand-apart from the Toyota brand-as a "global premium brand for the 21st century";

2. the merging of the Netz and Vista sales channels to form a new Netz channel capable of addressing the needs of what Toyota calls the growing segment of "new value" consumers, while keeping in mind the needs of current customers;

3. the reinforcement of the identities of the Toyota, Toyopet and Corolla sales channels and a review of their product line-ups.

Toyota cited a number of factors affecting the Japanese market that are bringing change at a pace greater than that in any other industrially developed nation. These included low birthrate and a rapidly aging society.

Under its new product and distribution strategy, Toyota said it plans to put full effort into creating a global premium brand by introducing the Lexus brand to Japan. The company said that it is restructuring its domestic sales network, such as through establishing a new Netz channel and other measures, to give it a 'more future-looking stance'.

Awais

Toyota has announced plans to launch its luxury Lexus brand in Japan and to cut the number of sales channels selling Toyota brand vehicles at home from five to four.

Lexus sales will start in 2005 through a dedicated network of 150 dealerships.

Lexus has been a superb success in the US but has done less well in Europe and is hardly a factor in Asia Pacific outside of a few markets. Toyota intends to change this, turning Lexus into a true global premium brand. It will extend its reach in Asia [there will be a feature on this strategy in the next AutoAsia magazine], starting with Japan.

By merging the Netz and Vista sales channels to form a new Netz channel Toyota hopes to make a clearer appeal to what it calls ‘new value consumers (ie younger people). At the same time it will “reinforce” the brand identities of the Toyota, Toyopet and Corolla channels and make sure they get plenty of new product, officials said.

The enlarged Netz channel will have about 1,600 outlets and 30,000 employees. Currently there are 970 Netz outlets with 20,000 employees and 640 Vista shops with 10,000 employees.

The objective is to save money by streamlining the sales system and at the same time make itself more responsive to rapidly changing consumer tastes in Japan. At bottom, it’s all about maintaining an iron grip on the Japanese market.

In a statement Toyota said: “TMC intends to use the new strategy to steadily maintain a non-minivehicle market share of more than 40 percent and to secure an even greater market share in the mid to long term.”

gavriil

Very interesting. I think that's a good move.

On a semi-relevant note to the above, I was reading yesterday that Nissan decided to shift their current strategy of naming their vehicles. Currently similar vehicles around the world have different names. One name for the USA, a different name for Europe, yet another name for Japan, etc.

There are only 2 vehicles that have the same name around the world for Nissan currently, one is the Maxima and the other is one of their SUVs.

korchen

That makes sense to me now. I was in Japan over the holiday and there was a huge Toyota "showcase" where, they displayed all of their models, including some Lexus models, and you could sit in them and check them out. It was like a permanent Toyota car show.

1SICKLEX

I think it is good too. Though, I kinda like Toyota Altezza and Aristro etc. I guess they will start calling ricer lights "Is'rs".LOL.

Who cares, it's all a name.

clstyle

dam such a awesome car like lexus
what took them so long to introduce that in japan,
that car should be all over the world.

kansaiwalker1

Friday, October 31, 2003


What's a Lexus? Toyota faces a challenge selling its luxury brand in Japan


By Yuri Kageyama / AP Business Writer



CHIBA, Japan -- The Lexus luxury brand is one of Toyota Motor Co.p.'s big overseas successes. But to the Japanese, the brand name doesn't mean much.

"I'd rather have a BMW," said Takahiro Hiruma, a 41-year-old public servant who now drives a Nissan minivan. "The BMW's got a better image."

That's because Lexus actually has no image in Japan. While nearly two million Lexuses has been bought abroad, most of them in the United States, it is a name Toyota never has used in its home country. The company has sold similar models in Japan, but under names like Harrier, Windom and Celsior.

In an acknowledgment that the auto market is becoming a global one, Toyota plans to start selling the Lexus brand in Japan for the first time in 2005. Its booth at the Tokyo auto show this week featured sport utility and sleek, futuristic versions of the car.

Toyota, based in Toyota City, in central Japan, is considering opening anywhere from 150 to 180 outlets nationwide to sell a still-undecided Lexus lineup.

The goal for the homecoming is clear: Take advantage of a brand that has grown in the last 14 years to take Toyota to greater heights to rival the standings of Mercedes Benz or BMW.

"Lexus has become a U.S. brand. My mission is to make it a global brand," said Takeshi Yoshida, managing officer overseeing the Lexus. "By doing that, the Toyota brand will also be upgraded."

Japanese tend to have a soft spot for imports, be they Louis Vuitton handbags, Remy Martin brandy and Porsche sports cars.

So they may just be sold on the Lexus as an import of sorts, although most Lexuses are still manufactured in Japan and Toyota, despite its global prowess, remains as Japanese as a company can get.

Toyota officials won't say how many Lexus cars they hope to sell in the first year or how much they expect the brand will add to Toyota's already soaring profits. But they do say launching the Lexus in Japan isn't just about image; it's part of a clear business strategy to sell more cars.

Global branding has been on the rise lately, and the auto industry is actually a latecomer to the marketing trend.

Nissan Motor Co., Toyota's domestic rival, is using its "Shift" slogan in all of its advertising worldwide, to underline a company undergoing change.

Mazda Motor Corp., based in Hiroshima, has chosen "Zoom zoom" to highlight the sporty, fun-to-drive quality of Mazda cars.

Global branding doesn't necessarily save money, because advertising and promotion still must be tailored to each region. But in an increasingly mobile world, where people and information travel quickly, a uniform message is seen as more effective.

"With the world becoming more seamless in terms of what one sees and associates with over broadcast and the Internet, it's no longer simple to distinguish where a market ends and another starts," says Shuri Fukunaga, managing director at global communications consulting company Burson-Marsteller in Tokyo.

Whether the Lexus will take off in its own home is still unclear. But if track record is any indicator, Toyota is likely to have a good chance. The company controls about 40 percent of Japan's auto market and dominates the best-seller list here.

Still, the company expects building the brand in Japan to take time. Judging by less-than-enthusiastic response of onlookers at the auto show, they are probably right.

"I don't get it," said Tomohiro Matsushita, a 24-year-old driving instructor who drives a Honda Step Wagon minivan. "I've heard of it, and it looks cool, and maybe it will be one of the models I'll consider buying. That's about it."

DISRUPTV

ouch acura may fare even worse than lexus in their own market if honda decides to introduce the full acura line there

1SICKLEX

COnsidering the # of pics I've seen of owners in Japan swapping out their Toyota badges for Lexus, it will work.

DISRUPTV

dude!


i was just at the lex forum


i'm soooooooo sorry 2 hear abt what happened to your whip bro But you are in one piece and fine, thats all that matters...lket me know if theres anything i can do 4y bro


goodluck man

1SICKLEX

Thanks dude. I am still a lil outta it, have yet to post here.

blk_coupe

curious, will the cars cost more now that they're change the name in Japan?

gavriil

Lexus claims fourth J.D. Power Gold Award - - Posted by: kak on Monday, April 19, 2004 - 11:16 PM CET

Lexus has claimed an unprecedented fourth successive Gold Award as the number one ranked brand in the 2004 J.D. Power and Associates UK Customer Satisfaction Study. Not only has Lexus remained Britain's best, it has also succeeded in substantially improving its performance to set a new high score of 878 points out of 1,000. The figure marks a new record in the 11-year history of the survey. Lexus improved its results in all four categories of the survey - Quality and Reliability, Vehicle Appeal, Service Satisfaction and Ownership Costs - demonstrating how the brand's legendary pursuit of perfection continues to deliver real rewards to the customer.

Industry-leading quality of service has always been a Lexus hallmark, yet in this category an improvement of 34 points was achieved, increasing the advantage over all other premium market rivals. Notably BMW, Jaguar and Mercedes-Benz all performed worse in this area - and overall - than in 2003.

The IS200/300 range remained the standard bearer for Lexus's emphatic performance, improving its ranking from third to second highest placed model overall and increasing its advantage as number one in the upper medium segment to 42 points ahead of its closest rival.

The 2004 J.D. Power survey, presented in conjunction with What Car? Magazine, was conducted among drivers of cars registered between 1 September 2001 and 31 August 2002. The results were drawn up from more than 23,000 completed questionnaires from both private owners and company car drivers.

Success in the J.D. Power survey sustains a successful start to 2004 that has seen Lexus achieve excellent first quarter UK sales and record high March registration figures. Lexus also retained its number one position in the latest Dealer Attitude Survey conducted by the National Franchised Dealers Association (NFDA) and gained the highest approval ratings in Sewells' annual Fleet Operators Attitude Survey for the third year running.

Karl Schlicht, Lexus Director, said: "To win a fourth Gold Award is excellent, but to do so by improving our performance by such a degree is a tribute to the fantastic work done by our national network of centres and the Lexus GB team.

"Success in the J.D. Power survey is all the more rewarding for us as it is based purely on the opinions and experiences of our customers. Their satisfaction remains central to all our endeavours and we shall continue to work to set even higher standards in the future."

gavriil

They just keep kicking butt year after year all over the world. Good for them!

heyitsme

Make it Quality and Reliability and Excitement, and then I'll start caring.

gavriil

I am blown away by Skoda and Mazda! Wow!

Note: Skoda is a VW subsidiary which before VW bought it, was a piece of crap. It was like Yugo quality.

So Skoda kicks ass and VW and Seat (another VW subsidiary) are at the bottom! What gives? Could it be the super low expecations from Skoda owners due to Skoda's past?

Look at Mercedes, below the industry average once again. How pathetic.

1SICKLEX

Mercedes is horrific.

ItalianStallion

below suzuki. what a shame...

gavriil

Aint it a shame really? What a mess...

fdl

Old news, but a new article.



Lexus to be launched in Japan

NAGOYA, Japan -- Fifteen years after the first Lexus automobile went on sale in North America, the Japanese auto giant Toyota is planning to launch its world famous luxury brand in Japan.

Toyota Motor Corp. is setting up 180 Lexus dealerships in Japan, preparing to start sales in August 2005 with a first-year sales target of 50,000 to 60,000 vehicles. Worldwide, Toyota has sold more than 2.4 million Lexus models since its launch. But while Toyota has sold luxury cars at home, it hasn't sold the Lexus here.

Japanese fans of luxury cars have always had a weakness for imported brands -- such as Mercedes and BMW -- that carry a prestige that homegrown models don't offer.

"Toyota must show a special value in the Lexus, a way to make people proud they own one," said Shinji Kitayama, auto analyst with Shinko Securities in Tokyo. "It's not going to sell that well at first, but sales can be expected to pick up gradually."

To win over the Japanese, it won't be enough for courteous dealers to pamper customers -- a strategy that worked in North America but something that is standard in Japan, Toyota officials said. The key will be training sales people to offer even better services, they said.

"Our goal is not just volume. We're going for prestige," Toyota's project general manager Tony Fujita told reporters Wednesday as he showed them around a stylish Lexus dealership in Nagoya, west of Tokyo.

Winning respect for the Lexus in Japan is critical to boost Toyota's brand development, Toyota executive vice-president Kazushi Iwatsuki said.

"We want to make the Lexus a premium global brand by succeeding in selling it in our motherland," he said.

Toyota will roll out four models in the first year, and most dealers are expected to achieve profitability by the second year, Toyota said.

The expansion of the Lexus market comes at a time when Toyota sales are booming not only in the United States but also in Europe and Asia.

For the fiscal year ended March 31, Toyota marked a milestone with a 55 per cent surge in profit from the previous year to become the first Japanese company to earn more than one trillion yen a year.

The manufacturer, based in Toyota city near Nagoya, sold 6.7 million vehicles worldwide and expects to sell 7.02 million vehicles this fiscal year.

Some Japanese connoisseurs are already looking forward to the arrival of the Lexus.

Satoru Imada, a 33-year-old garden designer, visited a Lexus showroom during a recent trip to Australia.

"Luxury cars used to feel a bit old-fashioned for our generation," he said. "The Lexus is a new kind of luxury car that represents our values and allows us to express ourselves."

Kunihiko Shiohara, an analyst at Goldman Sachs in Tokyo, believes the advent of the Lexus in Japan will be a good way for Toyota to streamline its operations.

"Toyota dealers have been such a fantastic success in Japan, it's otherwise hard to introduce change," he said.

dom

I thought Gilbo said he saw Lexus cars when he was in Japan?

Dan Martin

Isn't Lexus coming out with an ultra-lux car next year? I wonder if that will go hand-in-hand with the new Lexus dealers opening in Japan? There are probably more than a few potential buyers in Japan.

Junkster

I think we mentioned this before, but now it seems concrete.

With the slumping sales in the market for Toyota in their domestic market, a new badge would be a fresh breeze for their brand in general.

Yea, is there any further news on the ultra lux vehicle.

Junkster, whose not a big Lexus fan.

CGTSX2004

iTrader: (1)

Lexus cars are nice if you like cushy. They generally aren't really regarded very highly for being driver's cars, with the exception of the IS.

BuddySol

So the Celsior will still exist under Toyota, but a LS430 or whatever will be sold to? I guess Toyota has figured out that part, and I guess that's why they expect people not to understand the concept at first. There's got to be a market if them silly Japanese are badge swapping their "T" for an "L"

phile

It's still blurry at this point, no one is sure if a Lexus will still be a Toyota, even in Japan, or if there the two brands will be distinctive enough from each other, i.e. no rebadging.

Toyota's announced that they'll bring Lexus to China as well, and Nissan recently announced it's introducing Infiniti to S. Korea.

fdl

He was either full of crap, or it was imported.

dom

BTW, I was all ready to throw in my "TimeLine of History" jpg before I saw that quote.

TSXforme

Or he could have seen some Toyota cars modded with lexus badging. Sounds familiar? Afterall, some NA drivers like to rebadge their Lexus/Acuras/Infinitis with JDM badges. I can assume that the converse can be true.

gilboman

where do you get Toyota is slumping in domestic market? i've read in a few articles recently about toyota increasing its market share in japan and overall sales at the expense of honda and nissan was increasing domestic market share as well although not nearly as much as toyota was.

dom

gilbo, what about you seeing Lexus's in Japan? Whats the story there?

Junkster

http://wardsauto.com/ar/transportati..._toyota_bring/

Last paragraph.

Junkster, whose looking for more verifications.

CGTSX2004

iTrader: (1)

He was probably high on something at the time.

phile

He also saw some Acuras...

kenbiddulph

Rebadging is becoming more common in Japan, seeking Acura badges for example. Some have even traded JDM for Acura TL for example. I know a friend of mine who did such a thing for Inspire badges.

BuddySol

They even go as far as putting the airbag stickers all over their sunshades. Hardcore.

kenbiddulph

Damn, didn't know that, thats pretty hardcore alright!

gavriil

Toyota to start selling Lexus cars in Japan - - Reuters / May 26, 2004 - - Source: autonews.com

TOKYO -- Toyota Motor Corp. said Wednesday that it will start selling its Lexus cars in Japan in August next year, with an annual sales target of 50,000 to 60,000 vehicles.

Toyota will offer four Lexus vehicle series -- the LS, GS, IS and SC -- in Japan within a year of the launch.

The Lexus will be sold through a new network of 180 dealers, Toyota said.

The Lexus nameplate, born in the United States in 1989, has been an important profit driver for Toyota, and its success has prompted the automaker to introduce the brand into the domestic Japanese market.

In 2003, Lexus sales in the United States reached a record 260,000 vehicles, beating the previous year's record by 11 percent. It was the best-selling luxury brand in the United States for a fourth straight year.

gilboman

stupidity owns you

dom

Gilbo, did you or did'nt you see Lexus's and Acura's when you were in Japan? If you did I guess we're to presume they were either imported or rebadged.

So did you or did'nt you? Stop ducking the question.