Jul 11, 2019 in Exploratory

Hybrid Cars Essay Sample

Background information of the industry

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The automotive industry designs, manufactures, sells and markets the world’s motor vehicles. This industry is one of the most important economic sectors by revenue generation. This industry does no actually include firms dedicated to automobiles after delivery such as motor fueling stations and repair centers. The industry is comprised of so many automobile manufacturers and operating firms. The world’s production of hybrid cars has been fluctuating, reaching a peak in 2007, where 73.3 million motor vehicles were produced. In the year 2009 a drop in production was recorded of 13.5 percent to 61 million. These led to sales in US dropping by 21.2 percent to 10.4 million units, European Union dropped by 1.3 percent  to 14.1 million units, in China  sales rose by 45 percent to 13.6 million cars (Schnee 2007).


The organization Lexus is a luxury vehicle division of Japanese automaker Toyota Motor Corporation. This firm was first introduced in 1989 in United States, and has become globally recognized now being Japan’s selling make of luxury cars. Since 2009, Lexus vehicles are officially sold in over seventy countries worldwide. The division’s world headquarters are located in Toyota, Aichi, Japan, with operational centers in United States, California, Torrance, Belgium and Brussels (Schnee 2007).


The automotive industry is one of the most competitive market. This is out of the need for more luxurious and comfortable makes of motor cars. These competitors include: Chery Automobile Company, BYD Co, Hino Automobile Company and Denso Automobile Company (Schnee 2007).


Many Lexus  models enjoys a worldwide market. This is due to the fact that there are so many retail outlets in different states apart from the headquarters.

Product category

The product in question here is hybrid cars. For instance in looking at Lexus RX 450h model, it was developed after leaving the 2009 original RX hybrid series. In 2010 Toyota came back in 2010 model year with the 450h, which offers more power and significantly economical in fuel consumption. This model boasts of its latest incarnation of Toyota’s Hybrid Synergy Drive which has an improved gas engine. This is a model is among many, with all you would expect from a luxury SUV (Schnee 2007)..

Bases for segmentation

Hybrid cars very well serves the purpose of segmentation. For one, the rich will be highly suited by this brand of Automobiles. This is due to the fact that the demand of goods of ostentation increases with increase in price of the commodity and this model really serves the purpose. Hybrid cars are extremely luxurious motor vehicles which satisfies the real need of the rich. Again we have the category of the middle aged. This segment of the market is common with trying issues. It is for this reason that they will go for the newest model in the entire market, model Lexus RX 450h, RX 400h among others being of high preference (Trout 1969). Most common widely practiced segmentation is the price segmentation. Variation of household incomes defines lines of segmentation. If the income base of the people is high then the organization will prefer such market segment due to the heavy costs accompanied by the appealing features of hybrid cars such as the Lexus RX 450h brand.

Targets of segmentation

The company may decide to focus on certain targets of segmentation. The highly preferred target may be the rich. This is in respect to the price segmentation. The reason behind this is that, it only takes the rich who have heavy bargaining power to afford this models of cars meant for prestige. Again these products will only be common among the middle aged high income earners. This is in respect to the demographic segmentation. The main reason of targeting this segment is because of the fact that it is common in trying and exploiting luxurious items (McKenna 1988).


These hybrid car models, for one, are classified at the category of luxurious products. Lexus among other firms will not have to categorize these products as a cheap since the target group is the rich. It is for this reason that it is meant to have very appealing features, for example, Lexus has features as 12 speaker sound systems, 4.5 liters engine, air condition and other appealing features depending on the cost of the model. These products are well positioned in terms of distribution (McKenna 1988). For instance Lexus RX 450h and  RX 400h, headquarters are in Toyota, Aichi, Japan and so many other market outlets such as: United States, California, Brussels, Torrance among others. This wide distribution of the market offers a wide market of the luxurious products. Again, these products are well positioned in terms of service. These models of hybrid cars are customized and personalized to meet the needs of the minority filthy rich. Lastly, we have the quality being an accustomed measure of market positioning. The quality of these products are meant specifically to meet the purpose. This is basically the luxurious element of the minority rich (Trout 1969).

Buyers decision roles

Firstly, the buyers need to be aware. Before any buying can take place the buyers need to be aware of the existence of the product model in the market. Understanding is another decision role (Day 1980). Once one has the interest to acquire the product then he must be in a position to establish how well the product will be able to meet the needs at hand again as revealed by marketing research (Ries 1981). Purchase is the main decision role. The above will happen while the buyer is making the decision on seeing the advertisement; in the comfort of his or her armchair. The settlement of the matter is when the buyer makes the purchase of the product (Simon 1947) .

Consumer profile

Firstly, is the demographic profile of the customers. These involves a set of characteristics such as income level, age, and social class (McKenna 1988). It will mostly take the middle aged people to go for these luxurious products. This is relatively expensive hybrid cars which mostly attract the rich due to their high market prices (Carlyn 1977). It will amount the filthy rich social class to purchase this kind of a car due to the fact that it is quite costly (Trout1996).

Target segments

Firstly, is the buying pattern consideration. Many people from the less developed areas may not be a target group since they may only have the desire to acquire the products and not the real demand (Simon 1947). Developed regions are known for higher bargaining power hence will be a target for this luxurious products. Next we have the product type. These products are common among the rich whereby as the prices go up the demand will be seen rising. It is for this reason that the rich will be a great target segment for this car model (McKenna 1988). Lastly we have the customer needs. If a customer’s needs are to have a high power vehicle which offers a lot of services and satisfies the entertainment element then he or she will have to go for this kind of a drive. This now becomes a preferred target segment (Trout 1969).


These are actually the distinct features in the product which makes the customer to go for the specific product and not the other substitutes (Simon 1947). For example Lexus RX 450h is luxurious hybrid car which has welcoming and very comfortable features to the consumer.  It has a very strong engine of 4.5 liters. It has a very smart sound system having a range of eight to twelve speakers. It is a very well ventilated car amongst other appealing features (Schnee 2007).


One grate motivation element is the bargaining power. Given that, some buyers will be able to buy the product and others unable, then it follows that it will motivate those who will be able to buy the hybrid cars (McKenna 1988). The able buyers will be taking this for prestige hence motivated to buy more. The other thing is the many outlet distribution points (Trout1996). Lexus for example is one of the leading luxurious car producing firms in the world. Starting with the headquarters in Toyota, Aichi, Japan then to other major outlets as the United States, California, Torrance among others are very convenient and strategically placed outlets for the world’s market. This motivates the buyers for they shall not struggle to get the product (Pine 1993).


The trends in the car industry have been highly fluctuating in terms of the production and prices. This can be attributed to the economic recession which started on the year 2007. This economic crisis has been affecting the entire global economy (Trout1996). Hybrid car production reached a peak in 2007, where 73.3 million motor vehicles were produced. In the year 2009 a drop in production was recorded of 13.5 percent to 61 million. These amounted to sales in US dropping by 21.2 percent to 10.4 million units, the European Union also realized drop of 1.3 percent hence 14.1 million units, and in China  sales rose by 45 percent to 13.6 million cars (Schnee 2007).


Around the globe, Lexus has recorded a tradition of producing the highest ranked luxurious hybrid cars. This includes the Lexus RX 450h which is a very specious kind of  a hybrid car common amongst the filthy rich. To acquire the best model of the car you need to spent more. It is also quite expensive to maintain since it consumes 4.5 liters of fuel in every engine fuel consumption lapse.

Description of target market

The greatest esteemed buyers of this product are the financially stable and able which amounts the rich. This is because of the fact that this hybrid car model is quite expensive to acquire and maintain. It also follow that the more the features you desire the pay of the product (Simon 1947). Another target market is the middle aged people. This is due to the fact that they are meant to explore luxurious products. Satisfying and new products will be common among them as well hence them a very target market segment (Wedel 2000).

Descriptions of needs and wants

The distinct needs to be satisfied by this hybrid car model are so many of them. These may include: the need of a high power engine. This is for sure as the engine runs 4.5 liters of fuel. The need of an entertaining car, which is for sure as the car goes up to 12 speaker systems. Ventilation and touch screens. All these needs and wants are well taken care of by this model of a hybrid car (Wedel 2000).


Anyone looking for a luxurious car, satisfying very unique needs and wants should go for luxurious hybrid cars such as Lexus RX 450h, RX 400h Toyota Highlander SUV, Ford Escape SUV and Honda Accord Hybrid Car among others. This is a model most common among the rich as the more the appealing features the more the cost.

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