Case Analysis: Land Rover North America

1874 words - 7 pages

1) Background Analysis:
General Market Assessment: In the 90's, the SUV was looking to become a highly contentious market, however, with a new emphasis on the Leisure SUV. This was where LRNA will be able to maximize its market share, and perhaps grab a foothold on the market.
Competition and behavior: The SUV industry in North America was becoming increasingly competitive, with "over 30 SUV models, their prices ranging from $10,000 to $60,000. Market leaders were Jeep and Ford, with Jeep having a strong heritage in the USA much in the same was as Land Rover did in the United Kingdom. Jeep itself had three lines; much in the way Land Rover was trying to carry various lines for different segments of the market. The international impact on the North American SUV sales was modest, and the luxury segment of the SUV class was about to become more competitive with new products from the likes of Mercedes and Lexus.
Company Analysis: Land Rover started off in the UK and was able to market itself on its heritage. When it made the jump to North America, it had banked on this British heritage. Land Rover North America (LRNA) had initially started off in respectable terms as a somewhat boutique firm, with a staff of 15 and 60 dealers. Recently they have taken a decision to move from a niche player with unit sales of 5,000 to a bigger player in the US SUV market. One of the key areas that they are focusing on is the introduction of the Land Rover Discovery.
Current: Currently, LRNA has switched from a corporate identity based solely on the Range Rover, to the overall umbrella brand of Land Rover, which it self has multiple sub brands (or vehicles) one of which is the Discovery. With the decision of branding and introducing the Discovery, LRNA needs to decide to whom the vehicle most appeals to.
Decision: It is my recommendation that LRNA decide to market the Discovery towards the family sect as the The Definitive Family 4 x 4. This strategy is based upon the surveys and brand perception of the Discovery line amongst their competition as well as within the Land Rover umbrella. The SUVS had a perception of being more safer to drive and also hit an increasing pragmatism within the market. I shall expand my decision in the recommendation segment.

2) Recommendation:
The target for my recommendation, as I have said above, is the Family buyers "who needed versatile and practical transportation solutions" and as the definitive family 4x4. If one were to look at Exhibit 8 as provided in the study, it shows as part of the conjoint analysis that out of the highest SUV intenders, who preferred Quality and Safety, with Mean importance ratings of 4.5 and 4.3, were most important to people with children, with ratings of 4.5 and 4.4. Of the least importance to anyone was Status/Image, at 2.9. The importance of status and image had waned from the 80s, and the 90s now stressed on experiences and pragmatism. In line with this we see that from a mean importance of...

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