When Separating Brands Really Works

Back in the late 1980’s, Toyota made a bold business decision to separate its luxury products into a new company to compete directly against Mercedes and BMW. The creation of the Lexus brand quickly was followed by Nissan (formerly Datsun) renaming its luxury business Infiniti. This was brand separation with many questions. How much brand equity should be shared with the parent? Does Toyota quality or engineering bring anything to the party for Lexus? Can Toyota be believable as the manufacturer of a luxury product? Should a Lexus dealer be situated in or near a Toyota dealer? Should they look the same? Should they act the same? [Read more →]

March 15, 2010   36 Comments