Infiniti Case Study for Engen
MARKETING ENGINEERING FOR EXCEL
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CASE
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VERSION 2.0.0
Case
Positioning the Infiniti G20
By Gary L. Lilien & Arvind Rangaswamy
Introducing the G20
In April 1990, Nissan’s Infiniti division planned to introduce the G20 in the
United States, adding a third model to the existing Infiniti line. The G20 was already available in Europe and Japan under the name Primera. The car, equipped with a four-cylinder engine developing 140 horsepower, would be
Infiniti’s entry-level luxury car. Initial market response to the G20 in the
United States was disappointing, and management wondered how it might retarget or reposition the car to improve its market performance.
Background
In 1989, three years after Honda first introduced its Acura line, Toyota and
Nissan attacked the U.S. luxury car market, a segment previously dominated by American and German manufacturers.
In November 1989, Nissan launched its new luxury Infiniti division with the
$40,000 Q45 as its lead car and the $20,000 M30. However, Nissan was somewhat late: in August 1989, three months before Nissan shipped its first
Infiniti, Toyota had introduced Lexus, its luxury brand, with a two-car line comprising the $40,000 LS400 and the entry-level LS250.
As the figures for January to September 1990 showed, Lexus outsold Infiniti by 50,000 to 15,000. The reasons for Infiniti’s slow start were threefold:
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First, the Infiniti Q45 came to the market after the Lexus LS400 had established a good market position.
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Second, Lexus had two very good cars, whereas Infiniti’s M30 coupe received poor evaluations from the automobile press and from customers. •
Finally, the eccentric Infiniti advertising campaign that showed scenes of nature, but not the car itself, shared some of the blame. (“Infiniti may not be doing so well, but, hey, at least sales of rocks and trees are skyrocketing,” commented comedian Jay Leno.)
Research Data
Exhibits 1–4 summarize some of the
•
CASE
•
VERSION 2.0.0
Case
Positioning the Infiniti G20
By Gary L. Lilien & Arvind Rangaswamy
Introducing the G20
In April 1990, Nissan’s Infiniti division planned to introduce the G20 in the
United States, adding a third model to the existing Infiniti line. The G20 was already available in Europe and Japan under the name Primera. The car, equipped with a four-cylinder engine developing 140 horsepower, would be
Infiniti’s entry-level luxury car. Initial market response to the G20 in the
United States was disappointing, and management wondered how it might retarget or reposition the car to improve its market performance.
Background
In 1989, three years after Honda first introduced its Acura line, Toyota and
Nissan attacked the U.S. luxury car market, a segment previously dominated by American and German manufacturers.
In November 1989, Nissan launched its new luxury Infiniti division with the
$40,000 Q45 as its lead car and the $20,000 M30. However, Nissan was somewhat late: in August 1989, three months before Nissan shipped its first
Infiniti, Toyota had introduced Lexus, its luxury brand, with a two-car line comprising the $40,000 LS400 and the entry-level LS250.
As the figures for January to September 1990 showed, Lexus outsold Infiniti by 50,000 to 15,000. The reasons for Infiniti’s slow start were threefold:
•
First, the Infiniti Q45 came to the market after the Lexus LS400 had established a good market position.
•
Second, Lexus had two very good cars, whereas Infiniti’s M30 coupe received poor evaluations from the automobile press and from customers. •
Finally, the eccentric Infiniti advertising campaign that showed scenes of nature, but not the car itself, shared some of the blame. (“Infiniti may not be doing so well, but, hey, at least sales of rocks and trees are skyrocketing,” commented comedian Jay Leno.)
Research Data
Exhibits 1–4 summarize some of the