Land rover case study

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Land Rover Case
History of Land Rover 2
SWOT- analysis 3
Key issues: 4
Positioning Alternatives 5
Positioning Recommendation 7
Recommendation for Marketing Allocation and Utilization 8
Target Groups 8
Advertising 8
Budget Allocation 9
Sponsorship 10
Experience Marketing Programs 10
Driving Schools 10
Love of Products 10
Promotional and Direct Mails 10
ShouldLRNA open new concept center? 10
How we would manage the Land Rover line: 11
Conclusion 11
Sources 12

History of Land Rover
Land Rover began in England in 1860, conceiving its first four wheel drive utility vehicle in 1947.  It was something new as it offered a vehicle for “land”, a versatile, performance SUV; it became quickly established: within 5 years, 80% of sales were destined for3rd world countries.  When demand was present in the marketplace for a more stylish product, Range Rover was introduced to capture the segment of the market desirous for this luxury SUV.  By the mid 1980s, Rover had established a strong consumer following.

The Rover group was hit hard in mid 1980s by what was deemed “The Japanese Invasion”.  The Japanese had identified an opportunity in theemerging 4X4 leisure sector of two distinct user segments:  first, a group of "young, affluent childless adults looking for products that made statements about their status and accomplishments"; second, the "conservative buyers" - the family sector. 

American “Hot” SUV Market - The 1985 Worldwide Market Review suggested SUV sector needed geographic expansion into the US Market.  There had been asteady growth in sales, and the forecasts showed continual projected increases in demand throughout the decade.  The American SUV Market was “hot” and Rover needed to compete.

In 1986, Land Rover North America opened the doors with Charles Hughes as CEO, a veteran in the automobile industry with over 20 years experience. He was the key for penetrating the U.S market.

In 1989 the Range RoverHunter was introduced; a stripped down Range Rover to be exact, which turned into a disaster. In 1992 there was a name change and Range Rover North America became Land Rover North America.

1994 was a year to remember since the Discovery was launched in the U.S and became an immediate success.  The Discovery earned several prestigious awards in its first year, including Four Wheeler of the Year.Another change included BMW becoming the new parents.  As a result, Rover met with a dramatic increase in funding that would enable them to more successfully compete with others in the market.  Lastly, Rover opened their first
Land Rover centre in Atlanta.
SWOT- analysis
Strengths | Weaknesses |
* Successful launch of new product; The Discovery * New parents BMW- increased funding *Leader in Luxury SUV market * Managerial Expertise * Distribution System * Consumer feedback * Strong UK identity- British heritage * Strong brand in Europe | * Brand Awareness * Ad Recall * Prices on various product lines compared to competitors * Weak marketing skills for the U.S market * Not a market leader in the U.S car industry * The merge of names |
Opportunities |Threats |
* Openings to extend brand * Openings to extend image * Increasing market share by stealing from the rivals * Serving additional customer groups | * Entry of potentital new competitors * Loss of sales to substitutes who are marketed better or more economical * Losing the image of luxury |
A general assessment of the companies strengths, weaknesses, opportunities andthreats is called a SWOT-analysis (Kotler 2005)

The analysis consists of two sides, the internal which are the strengths and the weaknesses of the company and the external which is the opportunities and the threaths.

There are several key issues we would like to look upon.
The main goal:
The main goal of the company is to reach 40,000 Land Rover North America units sold in the year 1998...