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Lexus is one of the leaders in the luxurious cars industry. At the same time, the company needs to develop its marketing strategy to maintain its competitive position successfully. In this regard, the company pays a particular attention to the pricing strategy and distribution strategy because they play an important part in Lexus’ business development. In actuality, Lexus attempts to develop flexible pricing and distribution strategy to meet needs and wants of its customers but the focus of the company on the premium segment of the market maintains its prices at the very high level compared to other manufacturers operating in lower segments of the market. In such a situation, Lexus attempts to offer its customers loyal attitude and a system of discounts, which maintain the interest of customers in Lexus’ vehicles. In addition, the company attempts to improve its distribution strategy to attract more customers and to increase their satisfaction. Therefore, Lexus uses its pricing and distribution strategy to enhance its position in the market and to increase the customer satisfaction.
Pricing strategy of Lexus
The pricing strategy of Lexus plays an important part in the business development of the company because it helps to promote its products and to make them attractive to customers. In this regard, it is worth mentioning the fact that Lexus offers customers its vehicles at the high price because Lexus’ vehicles are luxurious cars, which are costly to manufacture and distribute. In fact, the company focuses on the premium segment of the market and creates cars of the high quality. At the same time, the quality is not only the only element that contributes to the high price of its vehicles. In addition, the company invests considerable funds in the introduction of innovations in its vehicles, which put Lexus’ cars into an advantageous position compared to its major rivals. The introduction of innovations increases the costs of production that naturally influences the price customers have to pay for Lexus’ cars.
Pricing strategy and customers’ motivation
At the same time, the pricing strategy of Lexus focuses on the attraction of customers and their motivation to buy Lexus. In fact, the motivation is very important for the pricing strategy of Lexus. This means that Lexus offers customers flexible pricing policies to meet their needs and expectations. For instance, the company can offer customers the price they can afford at the moment. To put it more precisely, the company offers customers diverse options of paying for Lexus’ vehicles, including the possibility to use loans and a system of discounts to buy cars from Lexus.
At this point, it is worth mentioning the fact that customers grow more motivated to buy cars, if they feel the individual approach to them from the part of the company. In this regard, the customer-centered approach is very helpful and Lexus develops this approach to customers to motivate them to buy its vehicles. The company enhances its position in the market through offering customers products of the high quality and full of innovations at the price they are ready to pay for Lexus’ vehicles. In fact, the company uses the customer-centered approach to provide customers with the cars they want, although they have to pay the high price for these cars.