Lexus Product Development and Marketing Strategies: How Companies Can Avoid Commoditization  

Oleh:

OSAKI, Takanori

Jenis: Article from Proceeding
Dalam koleksi: The 14th Asia Pacific Industrial Engineering and Management Systems Conference (APIEMS), 3-6 December 2013 Cebu, Philippines, page 1-6.
Topik: Product development; Marketing strategy; Commoditization; Premium product; Lexus
Fulltext: 1295.pdf (368.13KB)

Isi artikel

At the present time, many companies encounter difficulties making profits due to the progress of low price competition. Commoditization that one’s product is function-wise indistinguishable from others is the leading reason for low price competition. In this paper, against the problem of commoditization, the product development centric marketing strategy, which focused on the creation of high functional benefit, is discussed through the case of a premium automobile: Lexus. The result shows that the creation of high functional benefit requires strong top-down leadership, organization reforms, abundant investments including money and time, thoroughgoing development and production, also marketing including staff training. That means the product development strategy to generate overwhelmingly high functional value should be implemented beyond the traditional product development process in a present high competitive market. In short, the creation and sustention of premium to avoid commoditization are not mere product development but company-wide business development.

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