Lexus - Global Brand Refresh to Regain Market Leadership


Lexus, a former leader in the luxury automobile sector, faced the uphill battle of reclaiming its brand dominance from Mercedes. This challenge was particularly pronounced in key markets like the United States, which accounted for over 70% of its revenue. To overcome this, Lexus undertook a comprehensive global brand refresh, aiming to align its brand with the sophisticated lifestyles of its target audience and position itself as more than just a car, but an integral part of an enriched lifestyle.


The strategy for repositioning Lexus was not a mere facelift, but a comprehensive overhaul of its brand identity. This involved everything from in-depth market research to narrative development and marketing execution, leaving no stone unturned in the pursuit of a successful rebrand.

In-depth Market Research:

Conducted qualitative and quantitative research to deeply understand its target demographic's values, preferences, and lifestyles, particularly affluent families.

Development of a New Brand Platform:

Introduced a holistic brand strategy that repositioned Lexus as central to the lifestyle of affluent families, focusing on sophistication and inclusivity.

The brand narrative underwent a significant shift, moving away from the cars themselves and towards the experiences of the drivers and passengers. This new narrative cast them as the heroes of the Lexus story, a subtle but powerful change that resonated with the target audience.

Revitalization of Brand Elements:

Created new visual and verbal expressions that communicated the refined elegance and approachability of the Lexus brand.

Implemented comprehensive brand and visual guidelines to ensure consistency across all communications globally.

Strategic Marketing Initiatives:

Launched an internal brand campaign to foster employee alignment with the new brand philosophy, highlighted by a video on sustainability.

Developed and aired a new television spot that encapsulated the essence of the revamped brand, focusing on the enriched lives of Lexus owners and their families.

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The global brand refresh yielded significant and measurable success:

Market Leadership and Revenue Growth:

Lexus not only regained its position as the leader in the luxury automobile sector but also experienced substantial revenue increases, particularly in its largest markets in the United States and Western Europe.

Improved Marketing Efficiency:

The rebranding efforts led to a significant 37% reduction in customer acquisition costs (CAC), a clear demonstration of the improved marketing efficiency and effectiveness that the strategy brought about.

Enhanced Customer Lifetime Value:

Lexus saw an increase in customer lifetime value (LTV) to 2.8x, indicating stronger customer relationships and increased brand loyalty.


Lexus's global brand refresh stands as a compelling testament to the transformative power of a well-executed rebranding strategy. By refocusing on the lifestyles and aspirations of its target audience and placing them at the heart of the brand narrative, Lexus not only reestablished its market dominance but also set a new standard for luxury automobile branding. This strategic pivot not only allowed Lexus to reconnect with existing customers but also attracted new ones, securing its position as a leader in the luxury automotive industry.

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