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Land Rover North America, Inc With Teacher's Questions And Comments For This Case

1232 words - 5 pages

Case SynopsisThis case describes how Land Rover North America, Inc. (LRNA) has redesigned their dealerships and selling process with the objective of building and enhancing equity for its brand. Land Rover is a niche player in a very crowded and rapidly maturing product category. Competition is fierce and is dominated by large global competitors with extensive dealer networks who differentiate their products largely by size, features, and price. The company has relatively few dealerships and cannot afford the volume of advertising or promotion that its primary competitors can. The company must choose to depend upon positioning its product as a specialty brand, characterized by brand insistence on the part of its buyers.Charles Hughes, President and CEO of Land Rover North America, Inc. (LRNA) is debating three positioning options for the new $30,000 Land Rover Discovery. The positioning decision will help LRNA settle on advertising messages and other communications strategies.II. RecommendationsLRNA needs to determine a positioning strategy for the Discovery and itself in North America to entice its two distinct target markets. LRNA is aware that it has two distinct target markets whose purchasing decisions are impacted by various drivers but also knows that factors such as quality, safety, reliability, comfort, off-road capability and aesthetics overlap. When compared with other SUVs or SUV alternatives, we believe the following differences should be highlighted to develop a distinctive niche for the Discovery and Land Rover brand in the target audience's mind. The Discovery and Land Rover brand should be positioned as luxury car alternatives with rich histories and superb off-road capabilities designed for the crème-de-la-crème of consumers: affluent, intelligent, practical, unique, full of character, and seeking to empower themselves through adventure and exploration during their driving experiences. The Discovery and Land Rover brand should, in effect, convey the following message: you are what you drive.LRNA must also determine what marketing mix to utilize and how much of its marketing budget should be allocated to each media strategy. First, we would advocate increasing the marketing budget to approximately $30 million to better position LRNA against our competitors. Since our target consumers are educated, married males in the 35-64 age group with annual incomes of $100K or above, we would suggest allocating sixty percent of our budget to advertising through television and print ads with a 65-35 split between the two. Ads should present the dual nature of the Discovery and Land Rover brand as rugged, exciting, but safe vehicles equally adept at handling the challenge of the jungles of Madagascar and the challenge of the city highway with your children on board. Print ads would be placed in business and news magazines as well as national newspapers such as The New York Times, Wall Street Journal, Financial Times and...

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