Land Rover Case Essay

1198 words - 5 pages

In order to successfully launch the Discovery, LRNA had to identify a target market. The influx of Japanese models proved that consumers clearly wanted an SUV. As with any successful product launch, it was imperative for LRNA to identify its target market. The American market was dominated by Jeep and Ford at the time. Land Rover decided that they could deliver a product that would satisfy consumers as well as compete with the market leaders. Analysis of research data revealed that two separate groups of consumers were the most likely to be in the SUV market. The first group is comprised of young, childless adults. Generally affluent and upwardly mobile, they wanted their vehicles to portray ...view middle of the document...

As mentioned above, LRNA’s main competition in the SUV category was Ford and Jeep. The market for sport utility vehicles was heating up and the ability to differentiate itself from the market leaders was imperative for Land Rover. Americans had over 30 different brands to choose from at widely varying price points. Even more automotive companies were conducting studies on possibility of launching their own products. Jeep was deeply entrenched within the minds of Americans in the SUV category. Jeep got its start in the early 1940’s as a utility vehicle for the United States Army. Throughout the decades it solidified itself into a unique vehicle with a heritage very similar to Land Rover itself. Jeep has a very distinctive style that it has retained throughout different models and scored very high among consumers’ perceptions of aesthetics and creature comforts. On a scale of 1-10, scored a 7.5 on attributes of aesthetics and comfort and convenience. Its second highest product attribute was its status/ image, which scored an impressive 7.4. In a automotive review, Road & Track Magazine described the Jeep Grand Cherokee as the most “car-like.” In short, Jeep offered a very unique line of products to consumers and would be a formidable competitor for LRNA.
Ford decided to focus its efforts on offering an SUV with luxurious features and creature comforts. Not surprisingly, the Ford Explorer scored the highest among all SUV’s in the creature comfort category with an impressive 7.6. Ford also scored well on attributes such as quality, safety, and aesthetics, with scores of 7.4, 7.4, and 7.5, respectively. Ford offered American consumers a familiar brand in a product category that many consumers were buying into for the first time. Taking market share from this American stalwart would also prove to be a difficult challenge.
In order to gain market share in the competitive SUV arena, Land Rover had to make sure that its products paralleled the spectrum of potential consumers. The premium brand in Land Rover’s lineup was the Range Rover. This was the first Land Rover vehicle that was introduced to Americans and many, in fact, considered them to be the flagship brand. LRNA already had the advantage of brand equity in the Range Rover because they had launched their line in th1980’s. Connotations that followed the Range Rover were often of luxury, elegance, refinement and generally evoked the feelings of British royalty. Status conscious Americans knew what they were buying into when they purchased a...

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