Assessment activity 3.1
P1 How marketing techniques are used in two organizations

In this assessment I will describe how marketing techniques are used to market products in two organizations. I choose Lexus and Hawk knitwear.

Lexus is the luxury vehicle division of Toyota. It was first introduced in 1989 in the United States. It is now sold globally and it is the largest-selling make of premium cars.

Lexus
Marketing techniques
Lexus is one of the largest luxury vehicle division, so they have to keep up their good work. It is very important to develop new cars every 2 years. They need to develop extra tools for the car, that you can buy when you already have a car, or which you can get as a gift when you buy a new car. Diversification is an important thing at Lexus, because they have business clients and private clients. Each client will have another special thing they want and Lexus has to fulfill their expectations.

Brand building and positioning
Lexus started in 1989, in the United States of America. It all begun with the question; can we create a luxury vehicle to challenge world’s best? Toyota started a top secret project, F1 and when they finished the project, the Lexus LS400 was developed. It was a great success and now, several years later, Lexus is still the best in the luxury vehicle division. Since they start focusing on hybrid cars in 2011, the only became bigger in Europe. They build up a luxurious car brand, which is still known for all the luxury and high tech stuff. Lexus also invests a lot of money in good advertising, such as TVCM, advertisement in newspaper, magazine and internet. Lexus is focusing highly on existing customers and try to maximize their customer satisfaction. This will lead to new customers, who are introduced by them.

Brand extension
Lexus is a division of Toyota, so Toyota extended their company to develop a new brand. But they do not sell or develop anything but cars.

Relationship marketing
Lexus provide a long term relationship with their customers. Glink is a telematics system and links to the 24 hours Lexus Owner’s Desk hotline. With this service owners can use various services; reservation for a hotel, restaurant or airplane tickets. They can also get support in car trouble or acute disease. This will build a strong relationship with the owners.

Hawick knitwear
Marketing techniques
Hawick Hosiery Company started in 1874 in Trinity Mills. Today, 138 years later it is still producing every garment in the same factory. Fashion is changing every season, and so they have to come up with something new every season. It is hard for such a small company to keep up with their competitors. The competitors are making the same product much cheaper then they do. So Hawick Knitwear is going to export their products to Asia. They come up with a new clothing line and will show them at a special Asian trade market. Every year they need to change their product, because when they would sell the old collection over and over again it could mean the end.

Brand building and positioning
They started in Scotland 138 years ago and still Hawick Knitwear is a very known brand in the United Kingdom. However, they do not only make their own cashmere products, but they also make products for other brands. Through all the competition it is very hard for such a small company to make their brand known around the whole world. They especially focusing on the UK market and on the

Brand extension
To extend their brand they have to go worldwide, but not all the board of directors agree with this decision. The plan of brand extension was made by Digby Jones, a very famous British businessman who is known for his excellent knowledge about running a business. He has written a new marketing plan and his plan is to extend Hawk knitwear in China. They are going to a sort of speed ‘date’ event for British traders, to show their products to Chinese companies. They have 5 minutes to show their products and to talk about a collaboration. After the ‘date’ the Chinese traders have made a selection of companies they want to get to know better and they will meet again. A big fashion company decided that they want to collaborate with Hawk Knitwear.

Relationship marketing
Hawk knitwear also provides a long term relationship with their clients, although there are some short term relationship too. Most of the time they know their customers very well and to stay in touch with their customers, they have special offers and once in a while they organize a fashion show for all the customers, where they can meet the designers and showing the new collection.