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Mistake aiming at millennials?

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Old 01-29-18, 04:14 PM
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Johnny Mayday
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Default Mistake aiming at millennials?

There have been a few places lately where industry folks have said some of the recent updates and ad campaigns are going to alienate older Lexus buyers. But since sales aren't suffering, it seems like Lexus knows what it's doing here. Because even if the millennials don't wind up buying the cars now, changing the perception of a brand is like turning a battleship, so getting started now seems like a good idea to me. What do you think?
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Old 01-29-18, 04:32 PM
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Rhambler
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We're all getting old or older and as such we have a finite amount of time before we stop buying cars. If your audience hovers almost exclusively in that "old" range, well, the amount of water in that well is low, so to speak.

Having younger customers, especially for cars, provides an opportunity to build a long-term relationship that will endure. That's what these automakers want. They don't want people one or two cars away from no more cars, they want the younger folks with many more cars to buy and they want the chance to build that relationship so hopefully they keep coming back.

Lexus is repeating Cadillac's mistakes in my opinion. Like Cadillac, Lexus catered or caters to the more older crowd. They saw the writing on the wall and had to bring down that average age or face the aforementioned shallow well problem. Well Cadillac tried to address this by edging styling (AND NOTHING ELSE): poor technology, ancient power trains, and all around dull cars. IT CANNOT BE FIXED IF YOU JUST THROW ON A GIGANTIC GRILL AND SHARP EDGES. It needs everything, the entire image, persona.

Lexus got it wrong. Edgy styling that hides ancient everything: technology, power trains, you name it, it's old. IT WON'T WORK; SEE CADILLAC.
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Old 01-29-18, 04:36 PM
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Originally Posted by Rhambler
Having younger customers, especially for cars, provides an opportunity to build a long-term relationship that will endure. That's what these automakers want. They don't want people one or two cars away from no more cars, they want the younger folks with many more cars to buy and they want the chance to build that relationship so hopefully they keep coming back.
I hear you there, but the performance of modern Caddys is pretty fantastic. The CTS V is hardly just an empty suit, and a Caddy just won at Daytona. I do think they should have used "Brand New Cadillac" by the Clash in a commercial though...

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Old 01-29-18, 04:43 PM
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CTS-V does have a great engine, but it lacks that great technology element. It needs everything. Not just one or two things.

Their normal models have poor engines for the most part and poor technology, all stuffed in an attempt to have an edgy style. It didn't work. Lexus is following the same path: crazy edgy styling trying to hide poor technology, poor technology integration, poor engines, poor, dull driving dynamics, etc., etc. etc.
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Old 01-29-18, 04:45 PM
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Originally Posted by Rhambler
We're all getting old or older and as such we have a finite amount of time before we stop buying cars. If your audience hovers almost exclusively in that "old" range, well, the amount of water in that well is low, so to speak.

Having younger customers, especially for cars, provides an opportunity to build a long-term relationship that will endure. That's what these automakers want. They don't want people one or two cars away from no more cars, they want the younger folks with many more cars to buy and they want the chance to build that relationship so hopefully they keep coming back.

Lexus is repeating Cadillac's mistakes in my opinion. Like Cadillac, Lexus catered or caters to the more older crowd. They saw the writing on the wall and had to bring down that average age or face the aforementioned shallow well problem.
There's two problems with that line of thinking, though....and I don't think the auto manufacturers truly understand either one of them. First, the level of water in the well isn't really that low, and not getting any lower. Not only are older people living much longer these days, but are also driving a lot longer, too....that means old people will be buying or leasing more cars. Second, all those so-called "younger" people and Millenials aren't getting any younger....time doesn't stand still for anybody. Some aren't even interested in cars at all, and those that are aren't going to want to drive heavily sport-oriented stuff for the rest of their lives. That's why there a real danger that this big marketing campaign we've seen lately towards reducing the buying age could backfire quite seriously on a number of automakers. They could very likely be caught with their pants down, without much to offer the older folks still buying cars.

Last edited by mmarshall; 01-29-18 at 04:49 PM.
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Old 01-29-18, 04:47 PM
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Yeah, look at Cadillac's poor attempt. It backfired. Lexus is doing the same thing.

Their intent is good. Their plan and implementation is poor.
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Old 01-29-18, 04:53 PM
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Originally Posted by Johnny Mayday
There have been a few places lately where industry folks have said some of the recent updates and ad campaigns are going to alienate older Lexus buyers. But since sales aren't suffering, it seems like Lexus knows what it's doing here. Because even if the millennials don't wind up buying the cars now, changing the perception of a brand is like turning a battleship, so getting started now seems like a good idea to me. What do you think?
Charging more for their cars and appealing to a younger demographic is something all companies need to do at some point. Not sure if Lexus is succeeding at the high end of their range, but it seems to be working with their bread and butter models.
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Old 01-29-18, 05:04 PM
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Originally Posted by Rhambler
Yeah, look at Cadillac's poor attempt. It backfired. Lexus is doing the same thing.

Their intent is good. Their plan and implementation is poor.
why do you keep relating Cadillac to Lexus? Lexus is successful, Cadillac is not.

2017 has been best year ever for Lexus worldwide, even with most of their models being currently old and them missing few SUV model lines.
If you are talking about success, it is quantifiable, it is really not something subjective.
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Old 01-29-18, 05:13 PM
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It’s relative.

Both catered to the older crowd. Both wanted to move down the demographic ladder so to speak.

Cadillac attempted this with “edgy styling.” It didn’t work.

Lexus is attempting this through crazy, edgy styling. Results so far are...

You see why I brought up Cadillac?


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Old 01-29-18, 05:30 PM
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Originally Posted by Rhambler
It’s relative.

Both catered to the older crowd. Both wanted to move down the demographic ladder so to speak.

Cadillac attempted this with “edgy styling.” It didn’t work.

Lexus is attempting this through crazy, edgy styling. Results so far are...

You see why I brought up Cadillac?



Cadillac (and Mercedes) didn't even show up at the D.C. auto show (I was there today). You can't (effectively) market to anyone if you won't show off your products LOL.
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Old 01-29-18, 05:36 PM
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Originally Posted by mmarshall
Cadillac (and Mercedes) didn't even show up at the D.C. auto show (I was there today). You can't (effectively) market to anyone if you won't show off your products LOL.
That is surprising, Same with Porsche skipping some shows. All three of these brands have decent size display areas mapped out at the Chicago show. You'd think they'd want some kind of presence at most of the shows.
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Old 01-29-18, 05:40 PM
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Originally Posted by Rhambler
It’s relative.

Both catered to the older crowd. Both wanted to move down the demographic ladder so to speak.

Cadillac attempted this with “edgy styling.” It didn’t work.

Lexus is attempting this through crazy, edgy styling. Results so far are...

You see why I brought up Cadillac?


It is quantifiably objective though - Lexus started with new predator grille back in 2012... their worldwide sales increased by over 50% since then.

Of course, that does not mean that You should like it or buy it... but me not liking lexus vehicles does not mean it is not successful.

I bet 2018 will be even better year, if they manage to release new ES and UX in next 6-7 months.
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Old 01-29-18, 05:43 PM
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There's no way you can compare GM's attempts at Cadillac with Lexus.

Lexus has one of the strongest brands of any automaker in the world. To add to that, they've been making relatively well-regarded cars since their inception. GM, on the other hand, had been spewing crap out of the Cadillac division since the early '70s. Forget about its reputation to the world, Cadillac has been a forgotten brand in its home turf for two generations now.

Millennials grew up with Lexuses in their parents' driveways but with Caddies in their grandpa's driveway. They view the brand way more favorably than they do Cadillac.

Vehicles like the IS and NX have been very attractive to millennials. The changes Lexus has made have been for the better.

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Old 01-29-18, 05:47 PM
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Originally Posted by Rhambler
We're all getting old or older and as such we have a finite amount of time before we stop buying cars. If your audience hovers almost exclusively in that "old" range, well, the amount of water in that well is low, so to speak.

Having younger customers, especially for cars, provides an opportunity to build a long-term relationship that will endure. That's what these automakers want. They don't want people one or two cars away from no more cars, they want the younger folks with many more cars to buy and they want the chance to build that relationship so hopefully they keep coming back.

Lexus is repeating Cadillac's mistakes in my opinion. Like Cadillac, Lexus catered or caters to the more older crowd. They saw the writing on the wall and had to bring down that average age or face the aforementioned shallow well problem. Well Cadillac tried to address this by edging styling (AND NOTHING ELSE): poor technology, ancient power trains, and all around dull cars. IT CANNOT BE FIXED IF YOU JUST THROW ON A GIGANTIC GRILL AND SHARP EDGES. It needs everything, the entire image, persona.

Lexus got it wrong. Edgy styling that hides ancient everything: technology, power trains, you name it, it's old. IT WON'T WORK; SEE CADILLAC.

I am 26 and agree with you completely, young kids dont want a lexus boys want sportier, louder vehicles and girls want mercedes, audi or bmw, my friends bust on me all the time because my ls430 is an "old man car. With the rise of uber and other ride service's, as well as delivery options such as amazon, walmart, people my age are not very much into cars and some are not even getting there drivers licenses.
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Old 01-29-18, 05:50 PM
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Originally Posted by LexBob2
That is surprising, Same with Porsche skipping some shows. All three of these brands have decent size display areas mapped out at the Chicago show. You'd think they'd want some kind of presence at most of the shows.
Might (?) have to do with the high cost of renting display-space here in D.C., which, traditionally, like New York, is a big-money town. The convention building in Chicago may not charge quite as much for floor-space as they do here in D.C. (I don't know that for a fact, but it's at least a partly-educated guess). One hint of that is the fact that Ford, Toyota, and GM usually, at most of the shows, have the biggest display areas in square-footage. That, of course, reflects their status as the three largest auto corporations in the American market, with the most number of vehicles to display and (presumably) the largest budgets to do so with. Of course, that still doesn't explain why Cadillac and Mercedes cheaped out of the shows this year......and Cadillac, of course, has GM's huge resources and budget behind them. Go figure.
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