Equity

1

• Equity
• (Describe what the brand stands for, or aims to,
  that makes it distinct)

Current State

• Market
• United States

• The Pursuit of Perfection
• A philosophy of continuously improving the
  engineering process, the automotive result and
  service delivery.
• A shared belief with the target in the manner in
  which they pursue their goals. Like us, they are
  never done.

• Key competitor
• BMW Based on prestige/sales volume
• Mercedes Based on prestige alone

• Target Audience demographics
• Primary
• Adults 30-54, HHI 100K
• Secondary
• Super Affluents, HHI 300K
• OR 1 million in investible assets

Character
Brand Values Intelligence. Precision.
Advancement. People. The Ongoing Pursuit.
Brand Personality Confident. Intelligent.
Progressive. Stylish. Provocative.
Building Blocks that support Equity
Target Audience insights, psychographics
Discerning Affluents Luxury consumers who
both know and appreciate meaningful brand and
product differences. They are interesting and
interested, live their lives confidently and are
leaders or influencers - in their peer set.
They like to stay ahead. Whereas the pure status
seeker is content merely to flash the badges to
which they belong, the Discerning Affluent likes
to know the stories the marvels, the
wonderments behind the choices they make. They
place a high value on substance alongside of
style.

• Product strengths/functional attributes
• Innovative technologies.
• Examples include adaptive front lighting systems
  (headlights that rotate up to fifteen degrees),
  advanced air filtration systems, pre-collision
  safety system, smart access technology, hybrid
  engines, etc.

• Consumer benefits
• Individually, each advancement offers a
  meaningful consumer end benefit. For example,
  rotating headlights that help drivers to see
  whats around the bend before they get to the
  bend.
• Collectively, Lexus advancements align with our
  targets self-identify. We pursue perfection like
  the target pursues their life with a constant
  drive towards improvement. They are never done.

COMMUNICATIONS ARCHITECTURE
2

• Equity
• (Describe what the brand stands for, or aims to,
  that makes it distinct)

Potential Future State No. 1

• Market
• United States

• Champion the spirit of Progressive Change
• Create a new kind of heritage rooted in shaping
  the future.
• gt The European brands will read from the pages
  of existing history while Lexus will continually
  write the new pages of history.
• gt Looking backward will never lead you to
  creating the worlds first 8-speed A/T.

• Key competitor
• BMW Based on prestige/sales volume
• Mercedes Based on prestige alone

• Target Audience demographics
• Primary
• Adults 30-54, HHI 100K
• Secondary
• Super Affluents, HHI 300K
• OR 1 million in investible assets

Character
Brand Values People. Ingenuity. Progress.
Simplicity. The Pursuit of Perfection.
Brand Personality Inspired. Ingenious. Modern.
Stylish. Audacious.
Building Blocks that support Equity
Target Audience insights, psychographics
Affluentials (influential affluents)
Traditionally, power has been political or
financial, rooted in authority or money the
capacity to make things happen or to keep them
from happening. Influence, by contrast, is soft
power the ability to shift the course of events
through ideas or relationships rather than
coercion or enticement. Affluentials include
gatekeeprs, opinion-shapers, star-makers and
paradigm-sifters. Some are household names, but a
greater number arent. They fly under the radar.
What all of them have in common is that they are
changing the world, pushing it in new directions,
shaping its economy and culture as profoundly as
the old high-and-mighty ever did.

• Product strengths/functional attributes
• Advancements in technology and thinking.
• Examples include hybrid engines that can
  outperform conventional engines, sensors that can
  read and respond to changes in body heat
  temperature, technology that can enable an
  automobile to virtually park itself, pre-crash
  technology that can help to predict and respond
  to an impending accident before it happens, etc.

• Consumer benefits
• Individually, each advancement offers a useful
  improvement to the driving experience. Not
  progress for progress sake, but change that makes
  the drive simpler, faster, safer, etc.
• Collectively, Lexus advancements align with our
  targets desire to impact meaningful change in
  the world. The key benefit is in being
  emotionally connected with a brand that is
  pursuing the same (or similar) end result a
  shared philosophy.

COMMUNICATIONS ARCHITECTURE
3

• Equity
• (Describe what the brand stands for, or aims to,
  that makes it distinct)

Potential Future State No. 2

• Market
• United States

• Putting People at the Center of our Universe
• A philosophy of building cars, and designing
  experiences, around the targets specific wants
  and needs.
• gt Whereas some build for the sake of
  engineering, and others for the sake of prestige,
  Lexus builds around human beings.
• gt The more we know about people, the more we
  know about cars.

• Key competitor
• BMW Based on prestige/sales volume
• Mercedes Based on prestige alone

• Target Audience demographics
• Primary
• Adults 30-54, HHI 100K
• Secondary
• Super Affluents, HHI 300K
• OR 1 million in investible assets

Character
Brand Values The individual. Self-expression.
Knowledge. Relevancy. The Pursuit of Perfection.

Brand Personality Confident. Insightful.
Engaging. Expressive. Artful.
Building Blocks that support Equity
Target Audience insights, psychographics
Discerning Affluents Luxury consumers who
both know and appreciate real brand and product
differences. They are interesting and interested,
live their lives confidently and are leaders or
influencers - in their peer set. Whereas the pure
status seeker is content merely to flash the
badges to which they belong, the Discerning
Affluent likes to know the stories the marvels,
the wonderments behind the choices they make.
They place a high value on substance alongside of
style they appreciate products and services that
attend to their wants and needs.
Product strengths/functional attributes Intuitive
technologies. Examples include intuitive
climate control, voice activated NAV, VDIM
(vehicle dynamic integrated management system),
ASL ( automatic sound levelizer), an array of
sensors that read and adjust to changing
environmental situations, intelligent park
assist, etc.

• Consumer benefits
• Individually, each bit of intuitive technology
  offers a unique emotional benefit. For example,
  intelligent park assist gives the driver added
  confidence in a parallel parking situation.
  Other features delight, fascinate and energize.
• Collectively, Lexus intuitive technologies
  anticipate the drivers wants/needs leaving them
  feeling important the center of our universe
  and completely taken care of (cared for).

COMMUNICATIONS ARCHITECTURE
4

• Equity
• (Describe what the brand stands for, or aims to,
  that makes it distinct)

Potential Future State No. 3

• Market
• United States

• Celebrate Ingenious Simplicity
• Japanese heritage, Lexus heritage, is rooted in
  making things better/making things simpler.
• Ingenious simplicity is a brand truth, a relevant
  motivator for the target, and a differentiator in
  the luxury auto category.
• gt What the German engineers will achieve in two
  parts, we know the Japanese engineers can achieve
  in one part.

• Key competitor
• BMW Based on prestige/sales volume
• Mercedes Based on prestige alone

• Target Audience demographics
• Primary
• Adults 30-54, HHI 100K
• Secondary
• Super Affluents, HHI 300K
• OR 1 million in investible assets

Character
Brand Values Simplicity. Form and Function.
Innovation. Engineering. The Pursuit of
Perfection.
Brand Personality Ingenious. Creative. Cool.
Modern. Tasteful.
Building Blocks that support Equity
Target Audience insights, psychographics
Discerning Affluents Luxury consumers who
both know and appreciate real brand and product
differences. They are interesting and interested,
live their lives confidently and are leaders or
influencers - in their peer set. Whereas the pure
status seeker is content merely to flash the
badges to which they belong, the Discerning
Affluent likes to know the stories the marvels,
the wonderments behind the choices they make.
They place a high value on substance alongside of
style they appreciate products and services that
make their lives simpler.
Product strengths/functional attributes Intuitiv
e technologies. Examples include intuitive
climate control, voice activated NAV, VDIM
(vehicle dynamic integrated management system),
ASL ( automatic sound levelizer), an array of
sensors that read and adjust to changing
conditions, intelligent park assist, smart access
key, etc.
Consumer benefits Individually, each piece of
intuitive technology helps to simplify the steps
involved in achieving an ideal driving
experience. Smart access, for example, allows the
driver to open, start and drive their car without
having to ever reach for a key. Collectively,
Lexus intuitive , really ingenious, features
align with the targets desire to adopt
technologies that help to make life simpler. So,
Lexus shares their same pursuit.
COMMUNICATIONS ARCHITECTURE
5

• Equity
• (Describe what the brand stands for, or aims to,
  that makes it distinct)

Potential Future State No. 4

• Market
• United States

• Reveal Lexus to be iconic for Unconventional
  Wisdom
• Position against the notion of Lexus being the
  smart brand, and re-position as the
  unconventionally wise brand.
• Establish a tradition for having changed, and
  continuing to change, the way the auto category
  acts and behaves.
• Celebrate the brands pioneering spirit.

• Key competitor
• BMW Based on prestige/sales volume
• Mercedes Based on prestige alone

• Target Audience demographics
• Primary
• Adults 30-54, HHI 100K
• Secondary
• Super Affluents, HHI 300K
• OR 1 million in investible assets

Character
Brand Values Invention. Questioning Everything.
Disruption. The Future. The Pursuit of
Perfection.
Brand Personality Visionary. Bold. Intelligent.
Self-Assured. Imaginative.
Building Blocks that support Equity
Target Audience insights, psychographics
Affluentials (influential affluents)
Traditionally, power has been political or
financial, rooted in authority or money the
capacity to make things happen or to keep them
from happening. Influence, by contrast, is soft
power the ability to shift the course of events
through ideas or relationships rather than
coercion or enticement. Affluentials include
gatekeeprs, opinion-shapers, star-makers and
paradigm-sifters. Some are household names, but a
greater number arent. They fly under the radar.
What all of them have in common is that they are
changing the world, pushing it in new directions,
shaping its economy and culture as profoundly as
the old high-and-mighty ever did.
Product strengths/functional attributes Uncommon
luxury. Examples include a dealership and
ownership experience that incorporate elements
from high-end luxury brands more than the
traditional auto category, the integration of
intuitive technologies into all Lexus vehicles,
hybrid technology that excels in the areas of
performance and low emissions, an extreme
attention to quality, details, and craftsmanship
that surpasses Rolls, etc.

• Consumer benefits
• Individually, each novel aspect of the brand
  speaks to a previously unmet category need such
  as treating people with respect in the
  dealership.
• Collectively, Lexus approach to acting in an
  unconventionally wise manner has achieved an
  uncommon if not unprecedented result. Lexus,
  like the target who embraces the brand, has a
  pioneering spirit. And fans align themselves with
  the pioneering sentiment.

COMMUNICATIONS ARCHITECTURE
6

• Equity
• (Describe what the brand stands for, or aims to,
  that makes it distinct)

Potential Future State No. 5

• Market
• United States

• Present Lexus as an Object of Desire
• Turn the pursuit of perfection from a practical
  justification into an emotional attraction.
• Own a feeling, an emotive response, more than an
  intellectual idea be the status symbol for new
  wealth.
• Just be it (act as a leader) versus having to
  say it (dont rationalize that we are a
  leader).

• Key competitor
• BMW Based on prestige/sales volume
• Mercedes Based on prestige alone

• Target Audience demographics
• Primary
• Adults 30-54, HHI 100K
• Secondary
• Super Affluents, HHI 300K
• OR 1 million in investible assets

Character
Brand Values Design. Detail. Modernity. Mystery
and Intrigue. The Pursuit of Perfection.
Brand Personality Vital. Engaging. Desirous.
Artful. Provocative.
Building Blocks that support Equity
Target Audience insights, psychographics
Status-oriented Affluents Affluent men and
women who place a priority on acquiring a
collection of possessions and experiences that
ladder up to a meaningful statement about the
successes they have achieved. If the traditional
Lexus customer is content with the brand as a
sign of self-reward, then this new group is
distinct in that they have a greater desire to be
outwardly expressive. That is, status conscious
affluents aim to be acknowledged by others for
their success. Correspondingly, messages about
innovation and style- things that others can see
have greater currency for this group then do
stories about interior comfort and quality.
Style, on top of substance, is what helps to
drive cachet and interest for this group.
Product strengths/functional attributes Luxury
in the details. Examples include the crystal
headlights in the next-generation LS, the dyed
through leather in the ES, the L-finesse styling
being integrated in all the new Lexus vehicles,
the inclusion of high-tech/high-touch technology
in Lexus vehicles, etc.

• Consumer benefits
• Individually, the details incorporated into each
  Lexus provides an emotive, sensory immersive
  driving experience one that enlivens the senses.
  
• Collectively, Lexus approach to designing
  automobiles incorporating progressive design,
  innovative technology, the finest materials,
  perfecting the details makes the brand an
  object of desire. For the target, Lexus offers
  style, on top of substance, to satisfy their
  hearts desire.

COMMUNICATIONS ARCHITECTURE