Lexus Brand and Advertising Tracking Study

Lexus Brand and Advertising Tracking Study

Presented by Hall & Partnersfor Lexus and Team One

April 2006

Quarter 1 January- March 2006

Hall & PartnersBrand and Communications Research


http://lexus.com/index.html

http://lexus.com/index.html



2

Agenda

Research Objectives & Methodology

What is Lexus’ Status Among Luxury Vehicle Intenders?

Does the Advertising Break Through and Communicate on Strategy?

Collision, DSE Lamppost, DSE Online

Points for Discussion

Appendix

2

Hall & Partners Brand and Communications Research

1

2

3

4

5



3

Research Objectives

3


Purpose of the Study: To explore and track brand imagery and purchase consideration for luxury automobile manufacturers, as well as examine response to recent Lexus advertising. Specifically: Does the advertising break through and is it linked

to Lexus? Does the advertising communicate to strategy? How is the advertising resonating among

recognizers? On what level is the advertising working to elevate

the brand?

Research Objectives for this Report:Examine changes in the relationships consumers have built with Lexus and relevant competitive brands in the marketplace this quarter.

Examine how the current Lexus advertising is working to develop these relationships and reach the brand’s goals.



4

Methodology

sample size

methodology

interview dates 4

Age 25+ Percentage of Sample Soft Quotas

25-35 16% 16%

36-44 22% 21%

45-54 29% 30%

55-64 20% 21%

65+ 13% 12%

Household income

Percentage of Sample Soft Quotas

$75-$100k 19% 19%

$100-$150k 40% 37%

$150-$200k 22% 25%

$200k+ 19% 19%

Primarily or equally involved in automotive purchase or lease decisions in the household

Intend to purchase or lease a new luxury car (sedan, coupe, sporty coupe, wagon or hatchback) or luxury

SUV within the next 24 months

20 minute computer assisted telephone interviews on brand attitudes and media habits followed by a 15 minute online

questionnaire on advertising

Luxury Car:Lexus Cadillac

Acura InfinitiAudi JaguarBMW Mercedes

Luxury SUV:Lexus Infiniti

Acura LincolnBMW Mercedes

Cadillac

400 phone interviews per month/approximately 125 online interviews per month

January 1st, 2006- March 31st, 2006


Lexus & Key Competitors 2What is Lexus’ status among Luxury Vehicle Intenders?



6

Overall

Lexus maintains its position as the front runner in the luxury category and continues to lead the category in consideration

Lexus continues to have a strong QDR reputation particularly dominating in reliability. Lexus’ personality is defined as contemporary, inspired, progressive, and caring



7

Lexus Acura Audi BMW

Cadilla

c Infiniti Jaguar Lincoln

Mercede

s

Unaided Awareness 28% 21% 10% 33% 18% 10% 6% 7% 23%

Total Awareness 97% 95% 95% 96% 96% 92% 94% 88% 95%

Unaided Ad Awareness 12% 7% 2% 9% 10% 4% 2% 4% 8%

Total Ad Awareness 60% 40% 36% 53% 57% 42% 39% 39% 50%

Unaided General Consideration

10% 9% 6% 13% 5% 3% 2% 1% 7%

Total General Consideration 57% 47% 33% 49% 28% 37% 20% 29% 38%

Strength of Consideration -Top 2 Box

46% 31% 24% 42% 23% 25% 18% 20% 34%

Lexus significantly leads all brands in the luxury category for consideration. Other brands continue to experience declines in ad awareness and consideration, while BMW performs slightly stronger on unaided awareness and consideration

Performance Across Brand Measures: JAN-MAR 2006Base: total

/: Significantly higher/lower than Jan – Mar 05 at 95% confidence level /: Significantly higher/lower at 95%+ vs. Lexus

Base: Awareness/General Consideration – (1195): Asked of Car Intenders (896) : Asked of SUV Intenders (299)

Base: Scaled Consideration –- Lexus (1161); Acura (1120); Audi (847); BMW (1133); Cadillac (1142); Infiniti (1102); Jaguar (844); Lincoln (263); Mercedes (1132)



8

LexusLexus

Change vs. Year Ago

Top Vehicle Brand

Vehicle Brand

Average

Exceptional quality 72% 72% 54%

Trust 67% 67% 50%

Reliable vehicles 67% 67% 45%

Customer service 61% 61% 46%

Safety 56% 63% 48%

High performance 53% 77% 52%

Customers’ needs 53% 53% 42%

Respects customers

52% 52% 42%

Innovation 51% 58% 41%

Right vehicle for me

45% 45% 33%

Environment 24% 24% 15%

1%

1%

7%

6%

6%

3%

4%

3%

1%

5%

7%

Lexus maintains a strong reputation in the category across nearly all attributes, particularly on QDR and service attributes. Though gains are being made, Lexus struggles to compete with BMW on perceptions of performance

Q10: Still thinking of [Manufacturer], for each statement I read, please rate each manufacturer on a scale of 1 to 10. The nearer the score to 1, the more you agree the statement does not describe the manufacturer. The nearer the score to 10, the more you agree the statement describes the manufacturer. Starting with [Manufacturer], how much do you think it is…? (score of 8-10)/ : Significantly higher/lower than Jan-Mar 05 at 95% confidence level/ : Significantly higher/lower than Lexus at 95% confidence level : Lexus significantly leads all competitors

Reputation: JAN-MAR 2006Base: total aware of brand

Base: Total Aware of Brand –Lexus (1162), Acura (265), Audi (170), BMW (584), Cadillac (284), Infiniti (260), Jaguar (183), Lincoln (69), Mercedes (579)

http://www.cpbi.org/images/logos/lexus105x50.gif










9

5

2

6

1

-11

-26

0

1

-8

-5

2

3

2

11

3

-7

-24

0

2

-7

2

4

Since this time last year, Lexus has made gains in most reputation measures such as right vehicle for me, reliable vehicles, and safety and continues to widen the gap on reliable vehicles in particular

Lexus Gap vs. Leader

Jan-Mar 05

Lexus Gap vs. Leader

Jan-Mar 06-2

0

+5

+2

+4

+2

0

+1

+1

+7

+2

Gap Change

Exceptional quality

Trust

Reliable vehicles

Customer service

Safety

High performance

Customers’ needs

Respects customers

Innovation

Right vehicle for me

Environment

Q10: Still thinking of [Manufacturer], for each statement I read, please rate each manufacturer on a scale of 1 to 10. The nearer the score to 1, the more you agree the statement does not describe the manufacturer. The nearer the score to 10, the more you agree the statement describes the manufacturer. Starting with [Manufacturer], how much do you think it is…? (score of 8-10)/ : Significantly higher/lower than leader/closest competitor at 95% confidence level

Reputation Gap Change: Lexus vs. Leader (or Next Closest Competitor)Base: total aware of brand




10

LexusLexus

Change vs. Year Ago

Top Vehicle Brand

Vehicle Brand Average

Luxurious 68% 69% 52%

Stylish 61% 63% 49%

Sophisticated 57% 66% 47%

Contemporary 55% 55% 42%

Progressive 52% 52% 36%

Prestigious 51% 75% 46%

Self Assured 46% 55% 39%

Indulgent 44% 56% 40%

Engaging 42% 47% 33%

Inspired 39% 39% 30%

Exciting 38% 56% 34%

Aspirational 35% 42% 29%

Caring 34% 34% 21%

Unique 30% 52% 32%

Understated 25% 43% 26%

Arrogant 20% 46% 27%

-1%

0%

-1%

-4%

-1%

-3%

-3%

2%

-1%

1%

2%

-1%

-3%

2%

-1%

0%

Lexus’ personality remains strong and constant, defined by contemporary, progressive, inspired, and caring. In addition, Lexus performs significantly higher versus the competitive landscape on most attributes

Q8: Still thinking of [Manufacturer], which of the following characteristics strongly apply. Which luxury vehicle manufacturer, if any, would you say is [1st statement]?/: Significantly higher/lower than Jan-Mar 2005 at 95% confidence level/: Significantly higher/lower than Lexus at 95% confidence level: Lexus significantly leads all competitors

Personality: JAN-MAR 06Base: total aware of brand








11

-5

-6

3

8

-4

-3

-21

-8

12

-1

-2

6

7

-5

1

-18

-7

9

Lexus has made gains in most strategic attributes versus the leader. Lexus continues to narrow the gap with the leader in exciting and continues to lead the next closest competitor in caring, progressive, and contemporary

+4

+4

+3

-1

-1

+4

+3

+1

-3

Gap Change

Luxurious

Stylish

Contemporary

Progressive

Engaging

Inspired

Exciting

Aspirational

Caring

Lexus Gap vs. LeaderJan-Mar 05

Lexus Gap vs. LeaderJan-Mar 06

Q8: Still thinking of [Manufacturer], which of the following characteristics strongly apply. Which luxury vehicle manufacturer, if any, would you say is [1st statement]?/ : Significantly higher/lower than leader/closest competitor at 95% confidence level

Personality Gap Change: Lexus vs. Leader (or Next Closest Competitor)Base: total aware of brand




12

Over time, Lexus has steadily increased as the only brand for consideration

Q4 Please tell me how strongly you would consider purchasing or leasing each of the following manufacturers. I’m going to read several statements to you, when I have finished please give me the number corresponding to the statement that best describes your

impression.

Top Box Consideration – “Only Brand I’d Consider”12-week Rolling AveragesBase: total aware of brand

12

7

10

6

11

0

2

4

6

8

10

12

14

16

18

20

7/1/

2002

8/12

/200

2

9/23

/200

2

11/4

/200

2

12/1

6/20

02

1/27

/200

3

3/10

/200

3

4/21

/200

3

6/2/

2003

7/14

/200

3

8/25

/200

3

10/6

/200

3

11/1

7/20

03

12/2

9/20

03

2/9/

2004

3/22

/200

4

5/3/

2004

6/14

/200

4

7/26

/200

4

9/6/

2004

10/1

8/20

04

11/2

9/20

04

1/10

/200

5

2/21

/200

5

4/4/

2005

5/16

/200

5

6/27

/200

5

8/8/

2005

9/19

/200

5

10/3

1/20

05

12/1

2/20

05

Lexus Linear (Lexus)

Date represents start of 12 week rolling period



13

Over time, perceptions of Lexus for performance and innovation have increased slightly

72%

69% 68%

70%

50%

53%

45%

51%

40%

55%

69%

84%

Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006

Q10: Still thinking of [Manufacturer], for each statement I read, please rate each manufacturer on a scale of 1 to 10. The nearer the score to 1, the more you agree the statement does not describe the manufacturer. The nearer the score to 10, the more you agree the statement describes the manufacturer. Starting with [Manufacturer], how much do you think it is…? (score of 8-10))Q8: Still thinking of [Manufacturer], which of the following characteristics strongly apply. Which luxury vehicle manufacturer, if any, would you say is [1st statement]?/: Significantly higher/lower than Q302 at 95% confidence level

Dashboard Metrics – Lexus Core Image AttributesLexus Core Image Attributes (Q3 02 – Q1 06)Base: Total Respondents Asked

Pollen

ExceptionalQuality

High Perf.

Luxurious

Innovation

Prestigious



14

Summary: What is Lexus’ Status Among Luxury Vehicle Intenders?

Lexus leads all competitors in terms of total consideration, and all competitors in ad awareness

Brand reputation is centered around strengths in QDR, and Lexus dominates in reliable vehicles. Lexus now leads BMW on “right vehicle for me”

Lexus’ personality is defined as contemporary, progressive, inspired and caring, and runs neck-to-neck with BMW for stylish

There’s further evidence that Lexus is developing a higher and more dynamic profile – and is increasingly seen as luxurious, stylish, and inspired

There has been a steady increase over time in those who see Lexus as the “only brand I’d consider”

Lexus continues to hold its leadership position in the luxury vehicle category, while seeing gains in innovation and performance over time


CollisionDid Collision Break Through and

Communicate to Strategy?

33



16

Overall…

Collision softly communicated on strategy its intended message of luxury and performance capabilities of the RX 400h hybrid vehicle

However, the ad was highly distinctive and engaging, while making its point in a creative way



17

Collision Ad Strategy

Primary Communication:

Communicate that the RX 400h is a hybrid vehicle that offers both luxury and performance.



18

56%

Recognition & LinkageBase: Total Exposed To Advertising

29%

QAD1a Do you remember seeing this television ad before today?QAD1b: What automotive manufacturer do you think this ad is for?

Despite average levels for recognition and linkage, Collision’s efficiency score was lower than the Lexus average

Recognition Linkage Branded

Recognition

16%

Average Recognition

:

32%

Average Linkage:

52%

Average Branded

Recognition:

17%

Lombard

Street

8.8

Efficiency

Average Efficiency:

12.6

Recognition Base: Total exposed to ad: Collision (404)Brand Linkage Base: Collision (117)

35% incorrectly linked brand

9% Unsure



19

48%

10%

58%

50%

24%

74%

Collision was seen as standing out and appealing – with salience scores significantly higher versus the average, and involvement scores directionally higher than both Lexus and competitive averagesAd Response (Salience, Involvement and Persuasion)Base: Total recognizers

QAD1e: Which of these statements best describes how different you find the advertising? QAD1d: Which of these statements best describes how appealing you find the advertising?QAD1f: Thinking of this ad, which of the following statements best applies to the advertising?

/ Significantly higher/lower than Collision at 95% confidence Total Ad Recognizers: Collision (117); Lexus TV Average (122); Competitive Average(115)

30%

7%

37%

Somewhat stands out from

other ads

Really stands out from other

ads

More appealing

than other ads

Very appealing

Makes me a lot more

interested in getting a Lexus

Makes me a little more


Lexus TV Average 62% 53% 39%

Really stands out 17% 13% 8%

Somewhat stands out 45% 40% 31%

Comp TV Average 62% 49% 38%

Ad Salience Ad Involvement

Ad Persuasion



20

Approximately 2 in 3 felt the ad was clever, which further demonstrates why the spot is seen as standing out and interesting. Collision also made respondents want to learn and find out more – directionally higher than the averages, but not necessarily more interested than the average on actual purchase intent

QAD1g: And which of these statements do you think go with this advertising?

CollisionLexus TV Average

Competitive TV Average

Makes its point in a clever way

65% 40% 37%

It is believable or credible for the brand

26% 34% 32%

It makes me want to learn/find out more

23% 15% 17%

I can relate to the attitude 21% 26% 23%

The message is relevant and meaningful to me

15% 16% 15%

It changes how I think about the brand

9% 7% 8%

I find the ad confusing 8% 9% 15%

It makes me feel Lexus is a brand for me

6% 10% 11%

It's boring 3% 8% 9%

Ad DiagnosticsBase: Total recognizers

/ Significantly higher/lower than Collision at 95% confidence Total Ad Recognizers: Collision (117); Lexus TV Average (122); Competitive Average(115)



21

1 in 4 recognizers took away the primary intended message of the RX 400h being a hybrid vehicle that offers both luxury and performance

Total Ad Recognizers: Collision (117)

Collision


RX 400h is a hybrid vehicle that offers both luxury and performance (NET)

26%

Offers two cars in one 22%

Offers both luxury and performance 3%

Best of both gas and electric vehicles 2%

Partial Communication: 33%

High Performance 31%

Luxury 4%

Message CommunicationBase: Total Recognizers

QAD1c: What do you feel was the main message of this ad? What do you think this ad communicates? What impressions does the ad give you about [the brand]?



22

Many recognizers also saw Collision delivering an overall message about Lexus such as being reliable, high performance, and sporty

Total Ad Recognizers: Collision(117)

Collision

Other Communication:

Other (NET) 29%

Hybrid 13%

Fast/Speed 11%

Powerful 9%

Lexus is… (NET) 68%

Reliable/Dependable 19%

Safe 7%

Fun to drive 5%

Appearance (NET) 15%

Sporty 8%

Stylish 6%

Sleek 2%





23

Summary

The “clever” creative idea stood out for consumers

Executionally, the spot stood out for many, and for some it “makes me want to find out more” information. However, actual interest in “buying” a Lexus was on par with the average

Though the spot was salient and managed to catch people’s attention, overall communication take-away was soft

The spot ultimately communicated to 1 in 4 recognizers an overall message of both performance and luxury of the hybrid vehicle

The majority took away the overall brand message of reliability, high performance, and appearance

Overall, the creative idea was very distinctive; however, the ad communicates the strategic intent primarily through the voice over

Collision resonated with consumers, connecting with them primarily through its distinctive creative idea


OnlineDid Online Break Through and


63



25

Overall…

Online was widely recognized with above average efficiency. The ad performed well and on strategy delivering the intended message of a Lexus being the ultimate holiday gift and of the Lexus sales event

The ad resonated among those who saw it as most knew it was from Lexus and felt it made its point in a “clever” way



26

Online Ad Strategy


Communicate that Lexus is having a sales event.

Secondary Communication:

Communicate that a Lexus is the ultimate holiday gift.



27

80%


62%


Recognition for Online was nearly double the average. Linkage levels are also very high, with Branded recognition three times the average. Online was also highly efficient


Recognition

50%

Online

20.5

Efficiency

Recognition Base: Total exposed to ad: Online (273)Brand Linkage Base: Online (168)


6% Unsure

Average Recognition

:

32%

Average Linkage:

52%

Average Branded

Recognition:

17%

Average Efficiency:

12.6



28

51%

10%

61%

51%

15%

66%

Salience for Online is slightly higher than the Lexus and competitive averages, while appeal is significantly higher than the competitive average. Persuasion is slightly below the TV and competitive averages but on par with the DSE averageAd Response (Salience, Involvement and Persuasion)Base: Total recognizers


/ Significantly higher/lower than Online at 95% confidence Total Ad Recognizers: Online (168); Lexus TV Average (122); Competitive Average(115)

24%

8%

32%


other ads


ads

More appealing

than other ads

Very appealing

Makes me a lot more







DSE Average 66% 54% 31%



Ad Persuasion



29

Online was also seen as making its point in a clever way – significantly higher versus the Lexus and competitive averages. The spot was also believable and easily understood


OnlineLexus TV Average



58% 40% 37%


38% 34% 32%



14% 16% 15%


10% 15% 17%

It's irritating 10% 7% 8%


It makes me feel (brand) is a brand for me

8% 10% 11%


7% 7% 8%



/ Significantly higher/lower than Online at 95% confidence Total Ad Recognizers: Online (168); Lexus TV Average (122); Competitive Average(115)



30

2 in 3 took away that a Lexus is the ultimate holiday gift. While only 1 in 6 took away that Lexus is having a sales event, this is the highest level we have seen for Lexus sales event ads

Total Ad Recognizers: Online(168)



Online


Lexus is having a sales event (NET) 16%

Lexus is having a sale in December 7%

Lexus is having the best values now 7%

Lexus is having a sales event 2%


Lexus is the ultimate holiday gift (NET) 68%

Treat yourself/someone to a Lexus gift 36%

Giving a Lexus is the best gift 21%

Better than any other gift 13%

A Lexus is the ultimate gift 6%



31

Many took away overall brand messaging communication such as exciting, aspirational, and luxurious

Online



Exciting 7%

Aspirational 7%

Elegant/Classy 7%

Luxurious 5%

High performance 4%

Stylish 3%



Total Ad Recognizers: Online (68)



32

Summary

2 in 3 luxury intenders recognized the spot which translated into a high efficiency score for the ad

The spot was extremely well branded to Lexus

The spot was impactful for those who recalled it

It was also seen as clever and believable Online communicated its desired message of ultimate holiday gift to 2 out

of 3 recognizers. Only 1 in 6 took away that Lexus was having a sales event, however, this is the highest we have seen for any Lexus sales event ad, and is on par with other luxury vehicle sales event ads tracked by H&P

The spot is on par with generating interest in wanting to find out more and in terms of purchase intent

Online was a highly efficient ad and appealing to those who recalled it


LamppostDid Lamppost Break Through and


63



34

Overall…

Lamppost was also highly efficient, widely recognized, and extremely well branded. The ad performed well and on strategy, delivering the intended secondary message of the ultimate gift idea

Lamppost resonated among those who saw it as most felt it made its point in a clever way, though few were persuaded to find out more



35

Lamppost Ad Strategy


Communicate that Lexus is having a sales event.


Communicate that a Lexus is the ultimate holiday gift.



36

79%


58%


The recognition level for Lamppost is nearly double the average, and the spot is also well branded. Efficiency score for Lamppost is also almost double the average


Recognition

46%

Lamppost

22.4

Efficiency

Recognition Base: Total exposed to ad: Lamppost (273)Brand Linkage Base: Lamppost (157)


4% Unsure

Average Recognition

:

32%

Average Linkage:

52%

Average Branded

Recognition:

17%

Average Efficiency:

12.6

DSE average: 66% 64% 42%16.0



37

39%

12%

51%

52%

13%

65%

Salience, Involvement and Persuasion for Lamppost are on par with the Lexus and competitive averagesAd Response (Salience, Involvement and Persuasion)Base: Total recognizers


/ Significantly higher/lower than Lamppost at 95% confidence Total Ad Recognizers: Lamppost (157); Lexus TV Average (122); Competitive Average(115)

25%

8%

33%


other ads


ads

More appealing

than other ads

Very appealing

Makes me a lot more







DSE Average 66% 54% 31%



Ad Persuasion



38

Lamppost was seen as making its point in a clever way with a relevant message – both directionally higher versus the Lexus and competitive averages, though the spot persuaded few to want to learn/find out more


LamppostLexus TV Average



47% 40% 37%


31% 34% 32%



21% 16% 15%

It's irritating 10% 7% 8%

It makes me feel (brand) is a brand for me

10% 10% 11%



7% 15% 17%


7% 7% 8%



/ Significantly higher/lower than Lamppost at 95% confidence Total Ad Recognizers: Lamppost (157); Lexus TV Average (122); Competitive Average(115)



39

Approximately half took away that a Lexus is the ultimate holiday gift, while few took away that Lexus is having a sales event

Total Ad Recognizers: Lamppost (157)

Lamppost


Lexus is having a sales event (NET) 4%

Lexus is having a sale in December 3%

Lexus is having a sales event 1%


Lexus is the ultimate holiday gift (NET) 52%

Better than any other gift 21%

Treat yourself/someone to a Lexus gift 16%

Giving a Lexus is the best gift 12%

A Lexus is the ultimate gift 10%





40

The majority saw the ad delivering an overall message about aspiration or luxury

Lamppost



Aspirational 42%

Elegant/Classy 11%

Luxurious 9%

Reliable/Dependable 2%

Different/Unique 2%

Safe 2%



Total Ad Recognizers: Lamppost (157)



41

Summary

Nearly three in five luxury intenders recognized the spot and ad efficiency was nearly double the average

The spot was extremely well branded to Lexus

Response to the advertising execution was on average for most measures

It was seen as clever Lamppost communicated its desired message of being the ultimate holiday

gift to 1 out of 2 recognizers, however the primary communication of sales event was low as is typical of most luxury vehicle sales event ads tracked by H&P

Though the ad is on par in terms of purchase intent, the spot generates low interest in wanting to find out more

Lamppost was highly efficient and made its point in a “clever” way



42

Saw 1 Ad, 24%

Saw 2 Ads, 47%

Saw No Ads, 29%

Overall, 71% of Luxury Intenders have seen at least one ad in the DSE campaign, with nearly half seeing both adsCampaign RecognitionBase: Total Exposed to Advertising

QAD1a Do you remember seeing this ad before today?

Base: Total exposed to all 2 ads in the campaign (273)

Seen at least one ad in the campaign:

71%



43

2005 DSE advertising is among the most distinctive, appealing, and persuasive of all DSE ads tracked since 2002

Salience (Very/Somewhat

different from other ads)

72%

61%

56%

66%

65%

70%

2002 - Surprise (a)

2003 - DSE (b)

2004 - Living Room (c)

2004 - Tangled (d)

2005 - Online (e)

2005 - Lampost (f)

Involvement (Very appealing/More appealing than other

ads)

Persuasion(Makes me a lot/little

more interested in buying or leasing a

new Lexus)

DECEMBER SALES EVENTS – ADVERTISING RESPONSE OVER TIME

QAD1e/d/f:Which of these statements best describes how different you find the advertising?/Which of these statements best describes how appealing you find the advertising?/ Thinking of this ad, which of the following statements best applies to the advertising?Base: Ad recognizers; Surprise (185); 2003 DSE (277); Living Room (189); Tangled (131); Lampost (157); Online (168) abcdef: Significantly higher at 95%+ vs. column

60%

49%

48%

61%

51%

53%

36%

25%

26%

32%

33%

32%

cd

cd

cd

c

cd



44

Recognizers find Online to be on par with the 2002 and 2003 DSE ads for credibility and ability to relate to the attitude, while Lampost is on par with the highest DSE scores for relevant and meaningful.

38%

17%

17%

12%

39%

33%

24%

18%

12%

16%

20%

7%

14%

6%

24%

25%

9%

12%

5%

38%

30%

14%

10%

10%

31%

26%

21%

10%

7%

35%

It is believable or crediblefor the brand

I can relate to the attitude

The message is relevant andmeaningful to me

It's irritating

It makes me want tolearn/find out more

2002 - Surprise (a)2003 - DSE (b)2004 - Living Room (c)2004 - Tangled (d)2005 - Online (e)2005 - Lampost (f)

DECEMBER SALES EVENTS – ADVERTISING RESPONSE OVER TIME

QAD1g: For each advertisement, please select all statements that you feel apply.Base: Ad recognizers; Surprise (185); 2003 DSE (277); Living Room (189); Tangled (131); Lampost (157); Online (168) : Significantly higher/lower at 95%+ vs. Lexus TV Average *: Significantly different at 95%+ vs. Lexus Sales Event Average

cdcd

cc

cdcde

cdcd

cdc

f

cdc

ef


Points For Discussion 4



46

Points For Discussion

46


The Lexus brand continues to be a strong player in this luxury category. Lexus has strengthened its core values while holding on to some of its gains in terms of style, luxury, and inspired. Over time, Lexus has done a nice job at moving the needle with innovation and to a lesser degree, performance

The sales event advertising is strong at communicating the secondary communication of a “holiday gift” among two year intenders without having a detrimental impact on the majority of the brand measures

However, we need to talk to one month or near-term intenders to determine whether “sales event” should be primary communication objective among this more narrow target


Appendix: Dashboard Metrics &

Demographics 5



48

Dashboard Metrics – “Only Luxury Brand I’d Consider”

0%

2%

4%

6%

8%

10%

12%

14%

16%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Q4: Please tell me how strongly you would consider purchasing or leasing each of the following manufacturers. I’m going to read several statements to you, when I have finished please give me the number corresponding to the statement that best describes your impression.

Top Box Consideration Over Time (Jan 05 – Mar 06)Base: Total Respondents Asked

Lexus

MercedesBMW

Cadillac

Infiniti

Acura



49

Dashboard Metrics – Lexus Core Image Attributes

40%

55%

69%

84%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Q10: Still thinking of [Manufacturer], for each statement I read, please rate each manufacturer on a scale of 1 to 10. The nearer the score to 1, the more you agree the statement does not describe the manufacturer. The nearer the score to 10, the more you agree the statement describes the manufacturer. Starting with [Manufacturer], how much do you think it is…? (score of 7-10))Q8: Still thinking of [Manufacturer], which of the following characteristics strongly apply. Which luxury vehicle manufacturer, if any, would you say is [1st statement]?

Lexus Core Image Attributes (Jan 05 – Mar 06)Base: Total Respondents Asked

Pollen

ExceptionalQuality

High Perf.

Luxurious

Innovation

Prestigious



50

Demographics

Jan – Mar 05(a)

Jan – Mar 06(b)

Age25-35 16% 16%36-44 21% 22%45-54 29% 29%55-64 22% 20%

65+ 12% 13%Annual Household Income

$75K-$100K 19% 20%$100K-$150K 38% 40%$150K-$200K 24% 22%

$200K+ 19% 19%Number of People in the Household

1 4% 7%a2 37% 33%

3 19% 19%

4 or more 40% 40%Children Under 18 in Household

No children under 18 52%b 47%1 child under 18 in household 17% 18%

2 children 23% 25%3 children 6% 7%

4 or more children 1% 2%Children not in household

Yes, I have children who have moved away 43%b 39%No, I do not have children who have moved away 56% 61%a

Age, Annual HH Income, Number of people in HouseholdBase: Jan- Mar 2005 (1191), Jan- Mar 2006 (1195Children under 18, Children not in household Base: Jan- Mar 2005 (1129), Jan- Mar 2006 (1093)ab: Significantly different at 95%+ vs. column

DemographicsBase: Total Respondents



51

Demographics

Jan – Mar 05(a)

Jan – Mar 06(b)

Education

High school graduate 5% 6% Some college, Associates Degree 11% 13%

College Graduate, Bachelor’s Degree 41% 41% Some Graduate work 4% 5%

Graduate Degree (Master’s, Ph.D., M.D.) 38%b 33%Employment Status

Employed full time for pay 51% 50% Employed part time for pay 10%b 7%

Self-employed 12% 12% Full time parent, homemaker 8% 11%a

Retired 15% 16%

Unemployed, Disability 2%b 1%Ethnicity

White, Caucasian, European American 87% 87%

African-American, African descent, Black 3% 2% Hispanic, Chicano, Latino 3% 4%

Asian, Pacific Islander, Asian American 3% 4%Gender

Male 49% 48%Female 51% 52%

Base: Jan- Mar 2005 (1191), Jan-Mar 2006 (1195)ab: Significantly different at 95%+ vs.column

DemographicsBase: Total Respondents

811 W. 7th StreetSuite 1000 Los Angeles, CA 90017

213.239.9969

Documents

Lexus Brand and Advertising Tracking Study