Applied Consumer Behaviour: Lexus 2015 - Case Study Example

Applied consumer Behaviour - Lexus 2015

Introduction

The economies around the world have achieved phenomenal growth in terms of infrastructure and communication with the help of advancement in science and technology. This has increased the spread of business ideas and knowledge across the heterogeneous groups of consumers residing in different parts of the world (Terkan, 2014). The divers of this growth in communication are mobile phones, internet, and social media networks which have made it possible to communicate with a large number of people within a short time. Social media can be perceived as an attractive and beneficial option for brand promotion resulting in its popularity among the advertisers and marketers. One can easily identify the greater integration of different social media platforms for promoting products and reaching their target consumers (Neti, 2011).

Researchers have presented that among various channels of social media network sites, Facebook has surpassed that mark of 1 billion active users in 2012, and currently takes immense pride in having 1.7 billion active users when calculated on a monthly basis (Statista, 2016). It can be observed from the following figure.

Figure 1: Facebook users across the world in 2016 (Quarterly data)

(Source: Statista, 2016)

This paper aims at analysing an advertisement campaign in order to explain the consumer buying process. Lexus is a segment of Toyota, which specialises in luxury cars. The changes in the consumption pattern across the world has also affected Lexus to adopt innovative marketing to reach greater consumers. This paper evaluates different aspects of Lexus’ advertise campaign on Facebook.

Target market (Who?)

Lexus manufactures premium range cars who prefer class quality. Lexus NX is a luxury car of Toyota’s compact SUV/ crossover segment. Lexus with the help of Team One has created 1000 specialised video advertisements to target the niche audience of Facebook with the help of the principle of segmentation.

Figure 2: Market Segmentation to achieve better marketing results

(Source: Lamb, Hair and McDaniel, 2011)

Segmentation has allowed the brand to reach target consumers with a more personalised approach. Each advertisement is based on particular themes and according to the preference of the consumers, one out of 1000 will be published. Thus, the videos will directly relate to the consumers’ tastes. For example, if a consumer likes music and is a professional, the ad published on the Facebook account of the consumer will follow a music theme (Marshall, 2015). The target audience of this product is the young generation who are tech savvy and active on social networking. The design of Lexus NX is more aligned to the fast paced lifestyle of the urban consumers. Lexus has been popular among the aging population but the company has shifted its focus to expand its consumer base by including young urban population. Keeping in mind the preferences of young professionals, the tagline of the NX model has been developed which speak of what the product will offer (Buckley, 2015a).

Features and Benefits highlighted (What?)

Figure 3: The new Lexus NX model

(Source: Buckley, 2015a)

According to Teri Hill, the Media Manager of Lexus, this specialised advertisement campaign was designed to highlight the features of Lexus NX, which are suitable for the daily life-style of the young professionals living in the urban areas. The design of the car represents a perfect amalgamation of technological innovation with the outlook of a sports car. This objective of making a car which offers fuel-efficiency and the features of a sports car has resulted in the formulation of Lexus NX. The advertisement campaign has highlighted each detailing of the new model to generate maximum engagement of the viewers. The luxury crossover Lexus NX provides an upgraded service in comparison to the typical SUV (Lexus, 2016a). The tagline represents this objective very skilfully where the product is seen to promise providing something just beyond utility. If the SUV design is regarded as satisfactory to the consumers, then Lexus NX offers certain additional features which distinguishes this from other similar products (Unified Inc., 2016).

Time of Placement (When?)

In this advertisement, the sturdiness of the new Lexus NX model is depicted along with the components of seasonality. The car can be driven amidst rain and across fast lanes depicting that the car has the qualities of any other sports car as well as the strength and security of an SUV. The advertisement shows that this model of Lexus is provides great utility to both men and women. The car has been designed to suit the professional need of a CEO also to match the requirement of a party-goer. Therefore, one does not have to sacrifice style for utility. The product incorporates not just the average functionalities of a medium of transportation but can also pose as a style statement, which is not just for men. The Lexus NX is a much appreciated upgradation of an average SUV illustrating the outlook and safety.

Advertising Channel Used (Where?)

The advertisement campaign was launched on Facebook to capture maximum attention and viewership. Facebook is the most preferred social networking platform of the youth, who are the target customers of the new car model. The reason behind making 1000 unique videos is that each individual is driven by certain factors which are exclusive to him or her. For example, a bag is carried by both, a women who is going for shopping or a man going to his office. In this case, they both need the same thing but the outlook and the preference is different. Lexus wanted to produce something which satisfies the requirement of both these consumers. Thus, to get all the information related to a large number of consumers, Lexus has utilised Facebook and through hard work and a series of permutations and combinations, they have designed 1000 advertisement videos. The outcome has been highly satisfactory as Lexus NX was able to reach 11.2 million Facebook users leading to viewership of 10.8 million videos. The management of Lexus revealed that there was a 300% increase in efficiency and 1678% increase in the engagement ratio which speaks for the grand success of the marketing campaign (Lexus, 2016b).

Advertising Intention (Why?)

The purpose of this advertisement is the shift in the target customer of Lexus. Lexus NX is designed to attract young consumers who are professionals and prefer to live in style. Lexus has been popular among the aging population because of its premium range and sophistication (Buckley, 2015b). However, the company has been developing strategies to expand its consumer’s base which will bring higher revenue for the company. The advertisement indicates gender equality making the claim that not only Lexus NX is perfect for women but also it is suited for men. The sporty look with sharp edges and a fuel efficient turbo engine offers the right mix of sophistication with quality. Since, Facebook is a part of young generation, the company has chosen the most popular social networking site to spread the customer’s awareness and create the required anticipation in the market for a more customised product.

Instead of spending a high amount in formulating a single advertisement campaign, Lexus has designed 1000 personalised videos with immense hard work and dedication which ensures tailor-made advertisement campaign. The creative director of Team One has commented if a product is relevant to personal life or daily activities, the manufacturer will be more persuasive in creating their place among the consumers (Buckley, 2015b). Team One paid required attention on demographic and geographic detailing, personal choices and affinity for vehicles (Team One, 2016).

Perception

The behavior of the consumer is driven by their perception to reality which may or may not consider objective reality. Consumer perception comprises of three different elements, which contribute to the decision of the marketers. The first element is sensation, which is defined as the psychological effect that a particular promotional measure spurs among its audience. The second element is choices, which are made by the consumer based on the impetuses. For example, the consumer decides to buy the new Lexus NX based on the advertisement campaign launched on Facebook. The third element of consumer perception is interpretation, which a consumer derives from the advertisement (Schiffman, et al., 2013). For example, The Lexus NX advertisement depicts that the vehicle is capable of withstanding harsh weather conditions and contains the qualities of a sports car. In simple words, perception can be defined as the procedure through which customers’ sensations are chosen and interpreted.

Figure 4: Variants of the NX model

(Source: Lexus, 2016c)

Team One has worked very hard to create 1000 unique videos based on real life preferences, like, music, architecture, travelling, etc., with which each customer will be able to identify giving a personal touch to the content viewed by each Facebook user. The advertisement clearly distinguishes ordinary from exclusive quality by showing a simple wooden chair and a more skilfully crafted chair which transpires the tagline “beyond utility”. The colour and the music offer a rich feel to the entire advertisement. According to Lexus media manager, the advertisement campaign was designed to be customised to achieve maximum engagement and the launch on Facebook served the objective completely (Team One, 2016).

Motivation

Motivation can be defined as the psychological force that drives an individual to act in a specific way. In case of understanding what motivates a consumer to make a specific purchase, it is difficult because in majority of the occasions, they are not aware of their own choices. In case of purchasing a car, a consumer considers some of the important question which are described below (Blythe, 2013).

• Why to buy a specific model?
• What additional features does it have that distinguishes a particular model from its close substitutes?
• Will those features suit my requirement?
• Why that model is important to me?

The new Lexus NX advertisement tries to answer all the above questions and in order to do it, they have created not just one but 1000 videos to motivate the consumer in buying Lexus NX instead of any other model.

According to Maslow’s hierarchy of needs theory, human needs are inspired by a number of attributes which can be observed to have a hierarchical structure. Moreover, Maslow also proposed that lower needs are to be fulfilled prior addressing the higher ones. The five motivational needs proposed by Maslow are described in the figure below.

Figure 5: Maslow's Hierarchy of Needs

(Source: Daft, 2014)

In accordance with Maslow hierarchy of needs, one can understand that the Lexus’ advertisement is trying to address self-actualisation and esteem. Lexus only deals with high-end luxury cars and owning the new NX model will only influence a sense of achievement and enhance the owners’ status which can be aligned to the notion of self-actualisation and esteem. This is highlighted in the difference between a simple chair and more skilfully crafted chair.

Buyers Process

In order to understand the effectiveness of a particular advertisement, the different stages in the buyer process can be helpful. Lexus NX not only highlights a brand image but also offers safety and security, which the prime focus of owning a SUV.

This can be further explained with the “Think-feel-do” theory as described below (Lantos, 2015).

• Think: At this stage, the buyers absorb brand information.
• Feel: Consumers process the information and form either a positive or negative or neutral idea towards the brand
• Do: Consumers choose to buy or not based on their perception to a specific brand.

The Lexus advertisement had been designed in such a way so as to make consumers feel that the new product offers an upgradation in comparison to its rivals’ products. The phenomenal increase in the engagement percentage reflects that the particular brand has gained the positive attention of the consumers.

Involvement level/ risks involved

The Lexus NX model is cross-over SUV which may not be a choice of a young urban professional who lives alone. There are better sports cars which are more suitable for adventure. The popularity of Lexus is primarily among the older population and the new attempt of making the new model an amalgamation of sporty look and class may not be liked by them. This segment of Lexus consumers may not be active on Facebook; thus, the advertisement fails to include its loyal customer base.

Market mix

Market mix is one of the commonly used tool comprising four elements, namely product, price, place and promotion. These four elements lies at the heart of the business plan when a company decides to rejuvenate its brand image and hopes to secure long-term profits. The four elements are not exclusive and they are to be evaluated simultaneously (Masterson and Pickton, 2010).

Product

The advertisement of Lexus NX not only focuses on the new product but also emphasises on the brand itself. The advertisement places greatest emphasis on the design of the car specifically, chiselled edges, high power turbo engine and angular design. The purpose of the advertisement is to present a dynamic car embarking on adventure and quality. This is the reason that Lexus has confidently voiced the slogan “beyond utility”. Moreover, the backdrop of the car effectively communicates that the car is built for those who value quality with style.

Figure 6: The attractive design of the new Lexus NX

(Source: Lexus, 2016b)

Place

The advertisement campaign has been exclusively designed for Facebook. The target market for this new product is urbanised youth and the explicit reach of social media across the world is highly evident. Therefore, using Facebook as the promotional platform is the most appropriate choice. Lexus itself is a high-end brand manufacturing and distributing luxury cars.

Promotion

Lexus aims at promoting the new car among the young consumers who seek fun and security. The promotional objective of this advertisement campaign is to create a new market for the luxury brand of Toyota. The use of personalised themes are a great way of engaging potential customers’ attention and increases the chances of revenue.

Price

Lexus manufacturers premium range products but there is no information in the advertisement related to the price of the new model. The advertisement has been designed to impress the consumer by the overall look and feel of the car.

Conclusion

Critique and recommendation

The use of appealing taglines not only summarises the intention of the seller but also creates an emotional bond with the audience. However, the use of Facebook has only increased the exposure of the brand but whether it would transform into high sales could not be guaranteed. The advertisement campaign is highly innovative as it uses a more customised approach which clearly aligns viewer’s preferences with that of the features of the concerned product. I feel the use of dark backdrop highly accentuates the sleek, chiselled edges of the car and its fast movements across the roads shows how comfortable the ride will be. According to me, the various models of the car in different colours could have been highlighted in the advertisement. This would have provided the consumers with the alternative variants available in the market. The car is meant for an improved experience in comparison to a typical SUV. The intention of getting a wide exposure to the target consumers has been served with the launch of the campaign on Facebook with a highly customised approach.

Reference List

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