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Land Rover North America Essay

Charles Hughes, president and CEO of Land Rover North America (LRNA) plans to expand Land Rover market in North America. Based on the increasing U.S. SUV market, research exhibit suggests consumers seek vehicles that can provide them “rugged driving experience” while being practical, safe, reliable and luxurious. With the success of the Discovery in the U.K. and near doubling the Land Rover brand worldwide, LNRA is seeking to become the “world’s premium 4×4 specialty company” through effective branding, product and retail strategies. The success of this campaign depends on making the correct positioning, marketing mix and retail strategy. LRNA can position the Discovery among the below segments:

a. The Definitive Family 4X4 theme
b. The Evolved Land Rover theme
c. The More Affordable Range Rover theme

a. U.S. sales of cars and light trucks totaled 15,298,538 units in 1993 with SUVs comprising 8% of the total units. Cars comprised 56 % of the market and light trucks 36 % of the total. b. SUVs (contained within light truck category) are categorized into mini, compact and full-size, with the compact category being the largest share, 74% percent of the total in 1993. c. The industry as a whole has grown by 9% from 1992 to 1993. This growth is primarily due to the 15.5% growth of light trucks from 1992 to 1993 and within this category 18.6% growth of SUVs during this period. d. Discovery is in the same segment as Grand Cherokee and Ford Explorer while it appeals more to highly educated buyers and is predominantly bought by the Affluent class. ANALYSIS FROM THE EXHIBITS

a. The Definitive Family 4X4 theme
Discovery is positioned to highlight the superior safety aspect which is complemented by high off-road capabilities. The theme taps the “> $100K household income” family SUV market for which there are no current competitors. The position highlights the perception of high quality and rigorous safety standards that will justify the price premium. A balanced mix of corporate advertising and individual models advertising will strengthen the corporate brand image of luxury, quality, and safety. b. The Evolved Land Rover theme

Customers care more about quality and safety than the brand image. While promoting the rugged nature of the brand maintains the knowledgeable off-roaders, it does not tap into the concerns of the high-salary family man looking for the safest drive for their family. While the theme highlights the superior off-road capability perception, the market can be better served by the Defender, which is used almost exclusively for this purpose. c. The More Affordable Range Rover theme

Highlights economical advantage of Discovery over other Land Rover models, however, Discovery is at a price disadvantage with competitors from this position. Positioned to serve mid-income families hence brings direct competition with other major market players that may degrade the prestigious and historical heritage of the Land Rover brand. The theme may also temper brand image with high income Range Rover users. RECOMMENDATION

Recommend positioning Land Rover Discovery “The Definitive Family 4X4 theme” as the safest luxury SUV in the world. This position leverages Land Rover’s exceptional safety features and customer perceptions to enter the relatively new and untapped market of luxury SUV.

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