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Grader Notes

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Grader Notes



1) Update on Lexus in Europe 2) Do SWOT of Lexus in Europe.

3) Your recommendations for Lexus in European market.

Grade Sheet


  • Provided little or no information on the luxury car industry in Europe

  • Gave very little idea of market size and market growth

  • Made recommendations with no specific factual support

  • Used little or no visuals

  • Paper did not flow well and had some structural weaknesses

  • Missed a number of the issues listed further below


  • Provided good information on the luxury car industry in Europe

  • Gave some idea of market size and market growth

  • Elaborated and developed arguments thoroughly

  • Used a readable format with bullets, headings, etc

  • Used a logical format with introduction and a recommendation

  • Used frameworks or visuals effectively


  • The above plus:

  • Visually presented European luxury automobile players:

    • Market size, market share and market growth

  • Identified European luxury market requirements

  • Identified and rated Lexus’ strengths and weaknesses

  • Showed where Lexus is not meeting market needs

  • Identified Price, Product, Place or Promotion issues

  • Differentiated the importance of SWOT findings

  • Paper was creative or engaging in some way

  • Recommendations directly addressed the problems

  • The recommendations were specific and actionable

  • Addressed some risks of your recommendations


Key case Points

Lexus in Europe

  • Toyota is a very successful car company throughout the world due to its Kaizen philosophy, great quality, good value and excellent R & D.

  • Toyota as a company is very capable with its luxury segment given their excellent success in the highly competitive U.S. luxury market.

  • Lexus is not selling well in the European market.

  • Opportunities are good, with growth in the luxury European auto market.

  • Lexus Product, Price, Place and Promotion problems in Europe include:

    • Poor product design and style for European tastes (too bland)

    • Poor product offering (no diesel engines)

    • European perception mismatch of luxury product (prestige is based on established heritage and tradition)

    • Lack of product differentiation (associated too much with Toyota)

    • Possible pricing (too low for European perceptions of prestige)

    • Non-differentiated distribution (sold in Toyota dealerships)

  • How important is each of the above in terms of root causes of the problem? How did you rate them and prioritize them?

  • Based on your prioritization, solutions should be directly relevant to problems – for example, Non-differentiated distribution as a major problem would likely demand exclusive dealerships for Lexus.

  • Identification of some risks associated with recommendations is essential (setting up exclusive dealerships would mean huge investments).


  • Clearly identified and rated the importance of problems

  • Connected recommendations directly to problems

  • Provided some clear roadmap for the future action

  • Recommendations solved the problem (Product, place..)

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