Branding - Lexus Car Company Essay Example | Topics and Well Written Essays - 2000 words

Branding - Lexus Car Company - Essay Example Therefore, the re-branding process constitutes the development of a new ‘‘name, term, symbol, design or a combination of them’’ with an aim of reaching a new position in the stakeholders’ and competitors’ minds. Therefore, re-branding is measured by the level of changes in marketing aesthetics and brand position. Re-branding is either evolutionary where it involves minor, gradual and hardly perceptible changes in the aesthetics and positioning, or revolutionary where it involves major and identifiable changes in aesthetics and positioning that lead to fundamental re-definition of a company. This is a proposal on how to re-brand Lexus. Therefore, I shall examine the brand’s background and determine its position in the automobile industry. I shall then establish the reasons why the company would require to undergo a re-branding process. I shall then proceed with the formulation of the re-branding plan by taking advantage of underlying oppo rtunities and establish measures to counteract the challenges that might arise. The process shall culminate in the selection of an appropriate branding agency that will carry out the re-branding process. ... Although Lexus is fully owned by Toyota, it has developed its distinctive luxury image in the consumers’ minds. This image is entirely different from Toyota’s image that provide feisty and reliable cars and not flashy cars. In this case, Lexus was provided with its own brand values. The launch of a Japanese luxury car to compete with the likes of Cadillac, BMW and Mercedes Benz would have seemed preposterous some decades ago. However, the introduction of the Lexus LS 400 after the investment of colossal amounts and production of numerous prototypes broke this notion. Over the years, Lexus has evolved from an improbable outsider to a formidable force in the luxury automobiles industry. The competition among the leading luxury vehicle manufacturers has been heating up over the last few years. This race involves pushing sales, leading in profitability, admiration for its models and incorporating innovative technologies. Furthermore, to lead in this industry a company has t o offer better service and quality besides selling more units than the competitors. Although Europe has been experiencing an economic slump, the luxury automobile producers have been increasing their investments and production capacity. These efforts aim at increasing sales in growing markets such as the United States and China. This is because the luxury industry demands players to continuously raise the bar. Therefore, making counter-cyclical decisions, although not easy, can determine the level of progress that a company will achieve (Ciferri, 2013). Rationale for Re-branding The automobile industry is facing new challenges in controlling carbon dioxide emissions and in reducing fuel consumption. Manufacturers are focusing on developing ‘green’ concept vehicles that can be mass-produced.