Lexus Marketing Strategy

Figures are taken from the Income statement and Balance sheet as at 30 January 2009 and as at 30 January 2010.

1996 Current Assets: Cash & Equivalents Marketable Securities AFS Accounts Receivable Inventory Other Current Assets Total Current Assets Property & Equipment, net Goodwill, net Other Total Assets Current Liabilities: Short-Term Borrowings Accounts Payable Accrued Expenses Income Taxes Payable Current Maturities of LT Debt Total Current

Item 7.|  |MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS|  | |25|  |

| |financial statements related to cash and cash equivalents, receivables, and inventories. | | |

Learning Objective: 04-03 Present an income statement with earnings per share, statement of stockholders equity, balance sheet, and statement of cash flows.

Complete an income statement, balance sheet and statement of cash flows for 2011. Please provide information on any assumptions you make not already stated in the case.

Income statements and balance sheets were reviewed to summarize the following key points that could

Assets | Current Assets | | Cash And Cash Equivalents | 222,640   | 229,299   | 246,400   | | Short Term Investments | -   | -   | -   | | Net Receivables | 82,235   | 63,136   | 47,178   | | Inventory | 17,016   | 14,345   | 12,295   | | Other Current Assets | 31,228   | 23,905   | 16,211   | | Total Current Assets | 353,119   | 330,685   | 322,084   | Long Term Investments | -   | -   | -   | Property Plant and Equipment | 492,022   | 444,094   | 403,784   | Goodwill |

According to Holt (2004), a brand can be defined as a term, name or a design that distinguishes product or service of one manufacturer from others. Brands are normally utilized in advertising, business and marketing. In accounting terms, brand is an intangible asset which is present within every organization. It is most valuable asset that is outlined in the balance sheet of a company. Brands owners need to effectively manage their brands in order to enhance shareholder value. Brand valuation is an important technique that associates money with a brand. Effective branding often results into high sales volumes of a particular product. A customer who prefers a brand is more likely to choose other products which are offered by the same brand. Brand can be stated as a personality that facilitates identification of a company, product or service. It even encompasses relation with other constituents like customers, partners, investors, staff, etc. Individuals distinguish psychological aspect of a brand from experimental

Consolidated Statements of Income (in thousands) 2003 2004 2005 Revenue Net sales Cost of goods sold Gross profit/(loss) Gross margin Operating expenses Sales and marketing Engineering and product development General and administrative Total operating expenses Operating income/loss Other income/expense Interest income/expense Other income/(expense) Income before provision for income taxes Income taxes Net income/(loss) Net margin 61,529 41,072 20,457 33.2% 64,063 43,155 20,908 32.6% 60,144 45,835 14,309 23.8%

Profit available less Dividends Retained profits Capital Owners' equity Loan from Carter Other liabilities Accum depreciation

Positive aspects. The Chevrolet Company took a big step forward in its advertising campaign last spring. The company decided to have a new promotional form which was to run an ad contest that people can post their video clips about the Chevy Tahoe in its website. The benefit for this approach is to involve people who are really interested in the company’s products in conversation (Rose, 2006). By doing the customer-generated advertising, Chevrolet enhances the relationship with its customers and establishes the customer loyalty. People can share their thoughts and participate in the communication which means they have the power to influence the brand and the

1994 Liabilities and Equity Short-term borrowings Accounts payable Progress collections and price adjustments accrued Dividends payable Taxes accrued Other costs and expenses accrued Current liabilities Long-term borrowings Other liabilities Total liabilities Minority interest in equity of consolidated affiliates Preferred stock Common stock Amounts received for stock in excess of par value Retained earnings Deduct common stock held in treasury Total shareowners’ equity Total liabilities and equity $644.9 696.0 1,000.5 72.8 337.2 1,128.1 $3,879.5 1,195.2 518.9 5,593.6 $ 71.2 $ — $465.2 414.5 3,000.5 $3,880.2 (175.9 ) $3,704.3 $9,369.1 $665.2 673.5 718.4 72.7 310.0 1,052.6 $3,492.4 917.2 492.1 4,901.7 50.1 — $463.8 409.5 2,683.6 $3,556.9 (184.5 ) $3,372.4 $8,324.2 $ $120.6 376.2 300.5 58.7 318.3 392.6 $1,566.9 364.1 221.0 2,152.0 41.4 — $455.8 266.9 1,384.5 $2,107.2 — $2,107.0 $4,300.6 1993 1985

Balance sheets and income statements are a snapshot of a company’s stability and financial situation. Combined the statements show the income, expenses, and stockholder’s equity in the company. These statements are often analyzed by financial institutions when a company comes to them needing a loan. Stockholders and other investors also look at these statements to make sure their investment will return a profit for them. This paper will look at four different companies and their balance sheets and income statements. The companies are Eastman Chemical Company, Covenant Transportation

Today such options as television, radio and print advertising can be effective for brand advertising and sales promotion on the Russian market. Serious brands that occupy a significant share in the global market like Mercedes-Benz, Audi, Renault, Toyota, Nissan usually spend a lot on new models launching and advertising. Outdoor advertising is not always effective option, as in most cases the driver could not see it. Outdoor advertising works well only in case the location of billboards and city-lights was chosen correctly and they are located in front of the traffic lights, in the parking places, busy streets, places where frequent traffic jams occur. Public relations in many companies today occupy a large part of the marketing budget. Organization of test drives and workshops for journalists, providing cars for prestigious events, participation in the rally, racing and sponsor promotions allow to get a powerful effect and add extra touches to the image of particular dealership and brand as a whole. However, a lot of auto-marketing experts believe that the future of this sphere is online advertising. These are the context, teaser ads, bright articles on various thematic resources, as well as contact with the audience through social networks. Today consumer is more protected from the effects of offline advertising as it has recently outdated itself. Older formats are becoming less effective, while new efficient offline formats were not created yet. This is not surprising, as