Land Rover North America, Inc Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Company Background:

Land Rover is a British car manufacturing company, which specializes in four wheel drive vehicles, with its headquarters in Whitney, Coventry. In 1985, it was considered to become the leader in SUV market.It has to consider new model and also it should extend the company’s operations geographically in the U.S. which is the largest auto market. The U.S subsidiary, started as Range Rover of North America in 1986, the name was later changed to Land Rover of North America because of the launch of the Land Rover models in U.S.

Current Situation:

In the current situation, the demand for SUVs in U.S is changing.It has changed from the symbols of wealth and prestige to the experiences, which has shown that there will be an increasing trend in the purchase of SUVs and also due to the increase in wealth of consumers in the U.S market.

Problems:

The current problem for LRNA is to determine the positioning strategy for the newly launched Land Rover Discovery against its other vehicles Range Rover and the Land Rover Defender. Along with this the issue is of the strengths and weaknesses against the competitors and the positioning of three SUVs under the brand of Land Rover.

LRNA is facing problem in determining the market mix to allocate the marketing funds properly to meet the goals of the company.

Another problem that LRNA is facing is to decide the retailing strategy and experience marketing initiatives.It wants to redesign the dealers’ networks by converting the franchises into the Land Rover Centers, which will provide several services to the customers.

Recommendations:

Positioning Strategy:

There are two markets whose decision to purchase is affects by factors including safety, reliability, off-road capabilities, quality and comfort. These differences must be highlighted to develop a distinctive market for Discovery and Land Rover brand in the minds of the audience targeted. It should be positioned as the luxury car alternatives with its off-road capabilities and also the rich history it possesses designed for the upper class consumers who have the focus on adventure and exploration while driving the car; however the other line should focus on other classes of consumers.

Although it has weakness compared to other SUVs that the performance advantage is not reflected in the perception of the consumers because most consumers haven’t even heard about Land Rover before its launch. Moreover, excessive marketing by the company plays a major part in promotion before buying a car in the U.S market, due to which Land Rover should associate its umbrella brand on the basis of performance in all SUV segments.

Marketing Mix:

The funds are distributed on the base of priorities of the company and what is required to deal with.The problems in marketing area are low brand awareness, low brand consideration and the un fulfilling potential of sales. The target consumers for the Land Rover are those who have the income of at least $100,000 and are professionals or working on a high level post in organizations with age between 35-50 years. The strategy should be to focus on the awareness of brand through advertisements, like it has conducted before and to target the particular consumers through mentioning the price in the ads. It should also retain the sponsorship, which are important and to help LRNA in creating more awareness about the brand.

Retail Strategy:

The retail strategy should be to open certified Land rover dealers, which would help in reducing the cost that LRNA is currently spending on the dealer network this will also allow it to attract more customers at different locations. LRNA should reduce the experience marketing programs, which are expensive and there are not many customers who take the advantage of the facilities provided.Land Rover North America, Inc Case Solution

Basis for Recommendation:

The basis for the recommendation is for LRNA to achieve its long term goals and objectives.

In pricing strategy, the basis for recommendation is for LRNA to develop such a product positioning, which gives it the advantage over the competitors and helps in achieving the goals of the company by targeting the right consumer for the right vehicle and to market its SUVs on the strong points compared to competitors. Moreover, this gives it long term advantage.

The basis for the recommendation of allocating marketing funds across brand awareness and other marketing mix is because LRNA has entered in the auto market of U.S recently and not many people are aware of the brand.More effort and funds should be allocated to increase the awareness of the brand through advertisement and sponsorship and to target the customers who can afford the SUVs or already have SUVs to consider Land Rover as an option before buying one........................

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