Product Innovation
Value Analysis
RX 400h is a SUV produced by Lexus and it is expected that it will have same values as Lexus Company has build during their production years. Therefore Lexus tried to combine power with economy, design with comfort and safety, and also become first worlds SUV with hybrid engine. Accordingly Japanese manufacturer did not let their image and value down as design, quality and customer perceptions for this model are very high: “Lexus RX 400h ranks #3 of 14 in Luxury Midsize SUVs and #1 of 5 in Hybrid SUVs” (U.S.News, 2007).
Although main feature of this SUV is hybrid engine, Lexus still want to keep their high luxury car image, therefore its quality and reliability is at very high standards. Everything what is built in new Lexus hybrid is to add extra value to this car and company as well.
Design is of the most important aspects of the car, therefore Lexus interior and exterior design together with technology which comes in RX 400h is made to increase the value so that customers do not even think to consider is it worth spending this amount of money on RX 400h. And especially when it goes 0-60mph in 7.3 seconds and consumes only 34.9mpg, is sold with 3 year 60,000 mile manufacturer warranty extendable at extra cost up to 7 years, then the value is increased enormously (Honest John, 2007). The Car Enthusiast magazine says: “When you look at the amount of technology wrapped up in the RX 400h's package you have to consider it good value for money”. Lexus also have high customer service standards so even after the car is purchased, customers receive excellent service, which helps to form a good image about the company.
Image Analysis
With being first company to make Hybrid SUV and also by putting all latest technology into RX 400h, Lexus has created the image which they were heading for. Lexus image usually associates with word “Luxury”, but in RX 400h manufacturer also managed to integrate it with power, economy and...