yon

...or, if it means I will get flamed less, perhaps Lexus is missing out on a marketing opportunity?

The IS has a checkered sales history, and the SportCross especially had very low sales volume. Part of what Lexus is going after is the younger crowd, hence the combination of sport, style, and a lower entry price point. So it's fair to say that the demographic they're marketing to is the 20-something (probably single) man. Get 'em in the fold early and all that.

Obviously, at least in the 1st gen, their success rate is not very high. And for me, the answer is pretty simple: most 20-something single men simply can't afford the car. A lot of them want the car, that much of the marketing effort seems to have succeeded. But it doesn't necessarily translate into sales.

Ever since we got the 02 SportCross, my pet theory has been that Lexus has---at best---missed an important segment. At worst, they're marketing the car entirely wrong. Several data points over the past months have only reinforced this to me.

One was when I was considering a consignment deal for my 02 ES300. I was talking to a local used car guy, and his take on the IS is that if he had one on the lot, his biggest problem would be fending off all the unqualified buyers. I.e., he'd have every young guy with a modded-up Civic (modded to look like an IS) drooling over the "real thing". Of course, few of these guys would be able to afford one, so he'd be beating them back with a stick.

Another data point is the fierce loyalty I've seen here on CL with the SportCross owners. We tend to beleive that we are fortunate to have found a rare gem---a very reliable, practical car that's fun as hell to drive. In our own case, you'll pry the 02 SportCross from my wife's cold, dead fingers. She is proud as hell of her car---again, fun as all get-out yet she can haul stuff when she needs to. There's gotta be something to that.

Most recent data point: this morning I'm bringing her car in for the 45K service. Next to me pulls in an IS 250, with Nav no less (didn't think they existed in NH). Out steps what appears to be an exact duplicate of my wife's demographic: a professional woman in her 40's. I chatted her up briefly, and she's lovin' the IS, and had come from an RX. Didn't dwell on it too much, but she must have found a way to live with the impracticalities of the IS sedan (maybe her husband drives a SUV now).

What Lexus needs to do is go after the money. Middle-aged professional women. They'd normally buy a VW or perhaps an Audi. But they want more luxury, or they're sick of having the car in the shop all the time. VW has hatches and wagons, so bring the SportCross back so that this demographic can have its cake and eat it too. And there must be a way to market to this segment at the same time you're appealing to the 20-something men. VW seems to pull this off, why can't Lexus?

Anyway, that's my rant for the day. I just couldn't get over seeing an example of my pet theory step out of a brand new IS-250!

4TehNguyen

iTrader: (1)

lexus doesnt chase markets for profits, it makes what it think is right for its lineup and what will last, they dont go around to chase the latest fad. I dont see how middle age proffessional women immediately brings wagon to mind, I hardly see any wagons around Houston at least. The car is selling beyond lexus expectations so it seems like its working

The IS was suppose to be the car that broke the normal conception that lexus were non sporty floating couches for old people. To give you a perspective I made plans what car I would save up for college, even ran STi WRX, G35 coupe, Acura TL through my mind. Never once did I think about getting a Lexus. Since 04 I loved the TL and was pretty set on getting it, until the IS was announced and I drove it at Taste of Lexus. I immediately fell in love with it and plan to get an 07 model. IS will attract many younger people who wouldnt have considered a lexus before, im one of them, I'll be 24 when I get mine. IS is luring away former 3 series drivers and other makes of luxury cars. Once the new 07 LS460 comes out and the GS gets upgraded with new engines then more people will start to consider

Kipperm13

I have to admit that I am that mid 20 year old guy - "23" that sold my 97 civic for the IS350. I think they came right at me in this market and I am so happy that they did. Love everything about the car. If they went after the slightly older women this car wouldn't look this great. just my .02

PhilipMSPT

iTrader: (5)

The IS250 does appeal to a younger population that crave more luxury. The IS350 adds power. Since most young professionals do not need the extra room (they have no kids, live alone or with their significant other only), the IS is a nice small package that accommodates their needs. This does not exclude older professionals that want a little car for city needs.

It is true that most 20-something single men can't afford the car. That's why it's in the luxury division. I would love for everyone to be able to afford the IS, but the fact is, I pay a little extra not just for luxury but also a little prestige.

You quoted "There must be a way to market to this segment at the same time you're appealing to the 20-something men." Believe me, Lexus is marketing to this population. It's just a matter of affordability. Younger professionals will end up with the IS, and a generally older population will end up with an ES.

dfw350

I am 25. Its not about your age, its about your salary and your mindset.

Ichigo

Im 24 and moved up from a 99 Civic and Im glad Lexus marketed the new IS the way they did. I drove my Civic for a long time waiting for the right "luxury" car to be available. For the longest time, I couldnt bring myself to buy a BMW or the G35. Finally the new IS came out and it was perfect, sporty with all of the luxuries a Honda could only dream of.

I agree with you that Lexus should market towards professional women, but I think Lexus is trying to market towards ALL younger professionals who can actually afford the car. The market is so wide open for 20-40 yr old professionals, why focus on only 40 something women professionals?

charlesmsn

Agreed. For older professionals, the IS would be a good second car when the SUV wasn't needed.

Or, people with young kids who can actually fit in the back row comfortably!

mort

The IS is actually quite affordable if leased, considering the residual value of the Lexus at the end of the lease. You can get a lot less of a car for same monthy lease payment.

bigbwb

I am also 25 and my soon to be fiance(who its for) is 24. We just purchased a SGM IS250 RWD as a replacement to her current 2000 328CI. It should arrive sometime in early April. I agree that this car is for a younger business class crowd(not necessarily women) who have college educations and no kids(hence the small backseat). People who appreciate nice things and reliablility such as myself, would be interested in this car. I enjoyed the "drive" of the BMW, but wanted something a bit more luxurious and alsmost just as fun to drive, and the Lexus fit the bill. I have had experience with my parents luxury vehicles in the past which has been very informative. We have had a previous 2002 GS300, and now have a MB CLK350, and also a 2002 330Ci conv. in FL. For advertising, Lexus I believe is targeting the right demographics such as myself and the previous posters. The car is not overly expensive(couple grand more than a loaded Camry or Accord) and sporty with many of the ammenities of the higher line cars. To me, entry level luxury cars are the best bang for your buck and can be very fun, reliable, and eye catching.

I may be full of BS, but who cares, the IS is a fine automobile either way

Brandon

Bichon

Lots of middle age folks associate "hatchback" with "cheap economy car". Given the vehicles in the marketplace in the 1980s, that's not surprising. More recently, both MB and BMW have tried marketing entry level luxury class hatchbacks with limited success.

The tide is starting to turn, more in the hot hatch (Audi A3, VW R32) than the luxury car arena. But even in that segment, I think the average buyer is a bit youner than your wife.

GFerg

I believe part of Lexus goal with the new IS was to actually increase the average age of the buyer to the mid 30's.(I read that somewhere on here). The 1G IS had an average age of 29 years old, the youngest for ANY car company including SCION. They definitely did try to increase sales with the new IS as the 1st IS was to bring young people into the brand and hopefully stay with them. It basically focused on only one demographic and to a majority was very un-Lexus like in many ways. With the new IS, it covers a broader demographic while still appealing to the younger crowd.

The IS Sportcross was a very slow sell, and probably will not make a comeback anytime soon(if at all). Bimmer, MB, and Audi all have wagons on sale currently and they all sell very slowly here in the US. The European market is totally different and wagons are bigger sellers there. Lexus really doesnt make many vehicles for the niche market(the main reason why there is no Manual IS350, low sales).

Oh and for the record, Lexus doesnt compete with Volkswagon at all.

dmacneill

Well, I meet all the demographics listed in the above posts except one. I am a college educated (two degrees) professional, have no children needing a back seat, appreciate nice things and reliability, don't like or need a SUV, and like the affordability of the IS. The major difference is that I am 60 years old! To quote dfw350 above, "Its not about your age, its about your salary and your mindset."

When I was negotiating with my salesperson about my IS back in October, he was also working with another couple trading in an ES300. The wife was interested in the IS, and in talking with them it turns out she is an attorney in her mid-fifties and her husband is a physician. They ordered the exact same car I ordered except for the color. So, while young professionals may be a target for Lexus for the IS, I think that they will sell a decent number of vehicles to people like me.

integlikew

IM 24 and my girl i have lived with for 4 years is 24 also. We are upgrading from rice rockets too. 2000 civic Si and acura integra. Sounds like they hit the age group i love the car. I can afford it now and its a very, very nice upgrade for us.

charlesmsn

rock on!

TimboIS

Wrong! Lexus is trying to raise the average age of the IS buyer.

Carter calls the second-generation IS "incredibly different" than the original, and says it should appeal to a slightly older demographic: 30- to 45-year-olds.