Land Rover North America Case
Marketing: Land Rover North America
Land Rover must determine how to position the Discovery to expand sales in North America. Land Rover vehicles have done well in the states, but developing the brand will be critical to achieving the lofty goal of 40,000 in sales by 1998. Alternatives:
* Slow the plan for new Centre dealerships and focus funds on other marketing efforts such as advertising and sponsorships. * Reduce ad budget for Range Rover since it already has market presence * Remove the Land Rover name and market Discovery by itself * Drop the price so it isn’t the highest price compact SUV * Establish points of parity with Range Rover
* Establish frame of reference with Jeep or Ford rather than Range Rover * Establish frame of reference with luxury cars
* Switch focus of Discovery from an off road vehicle to a luxury family vehicle * Interior redesign with better comfort
* Target adventure seekers
* Target middle and upper middle class with families
* Add children’s sports tournaments to corporate sponsorships. * Advertise the corporate brand in addition to individual models * Expand the Driving Academy Programs
* LRNA recently suffered from a failure of the Range Rover Hunter that was supposed to be a less expensive Range Rover. This resulted in losing some of the brand recognition in the US as a high end luxury vehicle. * Consumers became confused again in 1990 when North America Range Rover changed its name to the corporate LRNA name. * In 1994 there will be over 30 SUVs on the market, with increasing competition in the luxury category. * Jeep Grand Cherokee, a market leader competing in the same category as Discovery has an ad budget of $67.8 million dollars, compared to current $3 million for Discovery. They will also be competing against Ford and Chevrolet with significant ad budgets toward competing vehicles and their brands. * LRNA does not have sufficient funds to support the desired advertising and sponsorship activities. * Only 10% of survey participants are currently very or somewhat aware of Land Rover Discovery * LRNA currently has 3 vehicles in the US, with one more about to launch. They must determine how to best segment the market for each vehicle so they aren’t competing with each other. * Expert judge is recommending Explorer or Grand Cherokee over Discovery due to the high price tag not being justified by adequate luxury features. Recommendations:
1. Continue to strongly link “Land Rover” with Discovery and increase mention of Range Rovers when promoting Discovery. 2. Advertise more to the primary positioning of “The Definitive Family 4x4” and shift the secondary positioning to “Versatile luxury” 3. Establish a frame of reference with the Jeep Grand Cherokee 4. Establish a secondary frame of reference with luxury cars 5. Slow down the plan for new Centre dealerships and focus funds on other marketing efforts such as advertising and sponsorships 6. Market the Land Rover brand in addition to individual models 7. Expand the Driving Academy programs
8. Next year model design more space for passengers
1. Continue to strongly link “Land Rover” with Discovery and increase mention of Range Rovers when promoting Discovery.
LRNA already overcame the large challenge of justifying the high price of the Range Rover and the Range Rover has a lot more brand recognition than Discover currently does. The Discovery is the highest priced SUV in its class and needs the Range Rover name already established to help demand at that price. According to the Allison-Fisher Image Barometer study perceptions of the Land Rover Discover were very close to the perception of the Range Rover. This means consumers have already established Range Rover as the current market comparison in their...