Land Rover Case Study

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Aditya Anand Asit Acharya Chaitanya Somawar Kiran Yadav Rakesh S Suresh Prasad Tribhuwan Kumar

LAND ROVER NORTH AMERICA INC. LRNA is envisioning a considerable growth in the SUV market in North America, which is in an evolution mode. This market is witnessing change in customer’s perception, which is crystallizing for meaningful product differentiation in the market. Following points describe the current market standing of LRNA. • Why ‘Discovery’? - LRNA is facing decline in third world market owing oil crises, constrained parts supplies and repair services. To add to this, Japanese companies launched reliable and high quality SUVs, as a result of this, company lost one-third of base model sales. To counter this ‘Japanese Invasion’ and to regain its hold on various segments LRNA is launching Discovery as a versatile family vehicle with extraordinary safety qualities. • SUV Market - SUV market is witnessing a significant growth, people are buying SUVs as it offers increased road holding and handling. It also provides practical and versatile transportation solution as a result, increasing number of people are considering SUVs as alternative to traditional luxury cars. • SUV Target Customers - Typically there are two distinct categories of SUV buyers: 1) one set of buyers who are looking for vehicles which are smart and have more functional attributes. This includes family buyers who value the safety benefits, this also includes older traditionalists who are looking at SUVs as stylish alternatives to traditional luxury cars. 2) Second group comprises of young and affluent adults who value style statement and seek products that make visible statements about their owners’ images and accomplishments. • Land Rover Umbrella Brand - Land Rover umbrella brand was formed as part of new Branding Strategy under which all the models, current and future ones, could be accommodated. The brand captured the essence and spirit of values like authenticity, individualism, freedom, adventure and supremacy.

Decision 1#: Positioning • • As LRNA is having 3 vehicles in its portfolio, which are distinctively placed in SUV segments, it needs to have a product centric positioning strategy. Discovery should be made the front line product and should be positioned as logical evolution of the legendary land rover. It can be positioned in such a way which highlights the stressed ruggedness, off-road credentials and brand heritage. An important aspect of Discovery’s positioning should be ‘affordable Range Rover’.

Range Rover 4.0 SE which offers loads of features and is priced towards higher side at $52,500 should target upscale market segment - preferably people in $100000+ income group, this group of customers is buying Toyota Land Cruiser ($36,708). On the same lines, for Discovery ($29,350) target audience can be people buying Mitsubishi Montero ($27,625) A detailed analysis of ‘SUV Purchase Drivers’ reveals that female buyers are having higher preference (in comparison to average audience) for QUALITY, PERFORMANCE and SAFETY aspects of SUV. ‘Perceptual Comparisons of Discovery versus Competitors’ shows that Discovery is having higher attribute rating score for these parameters, which implies that a unique positioning targeting women consumers could be highly rewarding. Decision 2#: Allocating Funds Across Marketing Mix Elements

Marketing Budget Available $30 million Target Sales 40,000 units Competitor’s Budget Analysis Company Name Jeep Isuzu Ford Source: Exhibit 9 *Don’t include ”Ford” brand promotions Objectives -­‐ Brand Awareness: Rover Products have good consumer perception on parameters like Quality, Safety, Performance, Off-Road Capability, Comfort and Status (Exhibit 13). But it lacks in Brand and product Awareness (Exhibit 10), Brand Awareness should be the major focus of our marketing campaign. -­‐ -­‐ -­‐ Product...
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