Jaguar Land Rover (JLR) Marketing Report

puma bring in R over (JLR) Marketing Report1. puma Land bird of passage confederation visibleness painter Land Rover Cars (JLR), founded in 1922, is one of the worlds premier manufacturers of luxuriousness saloons and sports rail elbow room cars. It is a business built around two great British car brands with exceptional design and engineering capabilities. Their manufacturing facilities be in the UK and currently employ over 16,000 people, predominantly in the UK (Tata Comp both Profile, 2009). In June 2008 Indias Tata Motors bought JLR from Ford Motors for 1.15bn (BBC, 2008). The JLR business acts as a major wealth generator for the UK, with 78 per cent of Land Rovers exported to 169 countries and 70 per cent of mountain lions exported to 63 countries. Sales to customers are conducted princip in ally done franchised traders and importers (Tata club profile, 2009). However, since the acquisition Land Rover sales have fallen nearly 23 per cent in 2009, down to 144,133. puma was in any case down by nearly 20 per cent to around 52,500 (Birmingham Post, 2010).2. Recent developmentscatamount Land Rover has reported a net profit of 55 million the fiscal year 2009. This has been possible because of the new models ordered by the company in the year 2009. This includes the All New Jaguar XJ, which has reported impressive sales figures for the company. JLR has also secured motley financial loans to continue its search for new models and new technologies. This includes the GBP 340 million loan from the European investment bank and also the GBP 175 million loan from the asseverate bank of India (FT.com). They plan to employ the money in the end produce of Land Rover LRX concept, which is the smallest Land Rover to be launched. JLR is increasing its dependence on the emerge markets as it plans to increase its sourcing from the Indian market and also plans to moves it harvestion to China (Coventry Telegraph.net).3. AnalysisCompetitor analysis Land Rov erDimensionsLand Rover skunkDaimler BenzToyotaPRODUCT LINE rewardLand Rover Presence passel be seen in SUV as strong as in sport cars.fastball Has presence meet now in the SUV segment.Damiler benz A traditional faker in all segments of car, suv and sports car manufacturing.Toyota Presence in almost all the segments of cars and trucks.SERVICE ADVANTAGELand Rover Has presence of avail networks all over the globe harmonize to its crossway zephyr. gage Limited presence in the world.DaimlerBenz A dealer network all over the globeToyota An extensive dealer service open with the large ingathering line offering.Low Cost Luxury cars (volume determinant)Land Rover No presence in this segment and low presence in the appear markets.Hummer Reasonable determine, no presence in the emerging markets.Daimler benz A strong presence in the low terms luxury market in all the emerging countries.Toyota A strong presence in the luxury market in all emerging markets.Retail Advanta geLand Rover Has a dealer in all separate of the world.Hummer Low presence in emerging markets and in Africa.Daimler Benz Has the biggest network of dealers in simile to the competitors.Toyota Has a dealer authorisation in all parts of the world. technological AdvantageLand Rover Has an growth in RD spending of about 11.6%in 2009.Hummer Development of new cars H4 and H3T.Daimler benz Plans to increase its RD spend to 12.6 billion euros over the next three years.Toyota Ranked bet one company in RD spending for all the industries.Supply ChainLand Rover Has 1 primeval manufacturing give at Solihull, near Birmingham.Hummer Has 6 plants worldwide including assembly plants. With no presence in the emerging markets.Daimler benz Has plants spread out in all parts of the world including factories in emerging countries.Toyota Toyota conducts its business worldwide with 64 overseas manufacturing companies in 28 countries and regions.Recent PerformanceLand Rover They morose in to profit in December quarter with net profit of 4.17 billion rupeesHummer Sales in the initial three months of 2010 fell down by 72% to 855 vehicles.Daimler benz Mercedes has a 25.3% increase.Toyota A drop of 1.12 million units compared to the previous year.Local CollaborationsLand Rover Has an emolument in the Indian market with the parent company TATA Motors in the country.Hummer None.Daimler Benz None.Toyota Has presence in all developed and emerging markets. Has factories in almost all parts of the world.Competitor analysis JaguarDimensionsJaguarPorscheDaimler BenzBMW intersection point line benefitJaguar Has a hunt of luxury and sport cars. Jaguar cars have lack of volume as there is a lower geographical spread for its models.Porsche Has presence in the sports car segment as well as the high end SUV segment.Daimler Benz A traditional player in all segments of car, suv and sports car manufacturing.BMW A presence in every segment from low cost luxury market to hig h class luxury cars and suvs.Service advantageJaguar Lacks service advantage due to limited presence all over the globe.Porsche In accordance with the limited product line it has a small service network.Daimler Benz A dealer network all over the globe.BMW A widespread dealer service network.Low cost luxury cars (volume determinant)Jaguar No presence in this segment as well as low presence in the emerging markets.Porsche No presence in this segment. But is building its presence in the high-end market of emerging countries.Daimler Benz A strong presence in the low cost luxury market in all the emerging countries.BMW Maximum market share in this segment in emerging market behind Mercedes Benz.Retail advantageJaguar Has a limited dealer network with even a few being company owned.Porsche Has just 2 dealers in India as an recitation.Daimler Benz Has the biggest network of dealers in comparison to the competitors.BMW Has authorized dealers all round the globe.Technological adva ntageJaguar Has the highest RD spending for its segment of automobile companies.Porsche NoneDaimler Benz Plans to double its RD spending this year to 1.4 billion dollars.BMW Has applied science development and RD centre in emerging markets of China and India.Supply chainJaguar Has only 3 factories in the UK. So a limited advantage of local fruit in the developed and emerging markets.Porsche Has only one production centre in Germany.Daimler Benz None.BMW Has 24 factories in 13 countries including assembly factories in emerging countries.Recent performanceJaguar has witnessed a 3.6% drop in sales in 2010.Porsche has a 6 % increase in 2010.Daimler Benzhas a 25.3% increase.BMW also has 8.4% increase.Local collaborationsJaguar Has advantage in the market of India with the major presence of its parent company TATA motors in the country.Porsche NoneDaimler Benz NoneBMW Has significant presence in all emerging and developed markets. Has factories in emerging markets.JLR PESTEL analysis (2010)A more recent PESTEL and SWOT Analysis of JLR (2018) is available here Political factors later securing a loan from the European investment bank TATA has now taken a U-turn over its demand for loan from the UK government (Guardian.co.uk).Social factorsEmploying large number of workforce Jaguar Land Rover employs 15,000 people, surrounded within the UK including approximately 3,500 engineers at 2 product development centers in Coventry and Gaydon.To improve the production facilitiesManufacturing competence has improved at Jaguar Land Rovers Halewood plant with a pilot training programme that concentrated on developing employee skills and problem solving. A programme was developed in partnership with the National SkillsAcademy for Manufacturing (the Skills Academy) and training providerBUCAM, to combine traditional problem-solving with basic skills.( Clair Churchard)Technological factorsJaguar Land Rover is known for its technologically superior cars. They also invented and commercialized the concept of aluminium automobile trunk in their cars.Economic factorsEnvironmental FactorsJLR is recently searching on Wallenius Wilhelmsens Orcelle pick up for a lightweight environmentally sound ship that can carry 10,000 cars by using solar, wave and wind power which does not discharge any emissions into the environment or the ocean.Numbers of environmental initiatives are taken to improve the efficiency and reduce the CO2 emissions of Jaguar products. They use lightweight and recyclable sensible extensively and also exceedingly efficient diesel engines. Jaguar Land rover has achieved full environment product certification for its model XJ in 2009.(Jaguar Website) lawful factorsJaguar Land Rover is spending 800m over five years to develop technologies designed limitedly at dropping tailpipe CO2 emissions designed to play the 25% improvement target set by the European Union which is well ahead of the industry average.( Sam Abuelsamid)Land Rovers LRX Co ncept is a lightly veiled preview of the new small crossover the company is planning for launch around 2010. The unibody plan was created to prepare buyers for Land Rovers plans to introduce a swarm of smaller vehicles off a common platform in order to improve the brands fuel economy and CO output ahead of new EU legislation.Bowmans strategic clockJaguarJaguar is a strong innovation based organization, which is evident from the innovations it had come up with recently. This includes the usage of only 2 product lines instead of 6 it used previously.The analysis of its product lines shows that it desperately needs contrastiveiation, which can be achieved through technological innovation and also through product line innovation.JLR has huge spending on RD but still has low RD spending in compared to former(a) competitors kindred BMW, so innovation and differentiation in its product line is limited along with lack of cost savings is its production activities.Jaguar has low presence in the emerging markets compared to its competitors, which is an opportunity to launch attractively priced product.Land RoverThe brand Land Rover has a wider presence in the developing markets compared to Jaguar. Land Rover already has products the Free trim downer and Discovery targeted towards the middling end consumers.Land Rover to meet the EU legislation norms as well as the need of emerging markets has plans to come up with a range of smaller SUVs in 2011.PORTERS FIVE FORCESBarriers to entryEconomies of scale As our new launch of Jaguar XH requires high ceiling investment for the manufacturing of our new car which is environmental friendly and targeting a specific segment of the market .So the risk of new entrant is high as other big players might try to sham the same concept.Knowledge and Technology The ideas and knowledge that provides competitive advantage over others is its unique henry-based technology which creates barrier to entry.Product Differentiation As the new product has to be different and accepted by the customers. So, we are providing our customers with the expected attributes of premium luxury cars.Access to diffusion channels A well developed distribution is must for its success when a new product is launched in the market. So we go away take advantage of well constituted TATA Motors channels across the world.BuyersSwithching cost As it is first of its kind, so they have no options to switch over.Number of customers The bargaining power of buyer is low as there we have mentioned in our switching cost that there are barriers to new entrants.There is no forward integration of buyers.Brand Image the Jaguar Land Rover already has an established Brand Image as a manufacturer of premium luxury cars.SuppliersBargaining power of suppliers Bargaining Powers of suppliers is lessThreat of SubstitutesPRICE BRANDthe affright that constumer lead switch to a substitute product is ver low.BUYERS WILLINGNESS The go forthingness of the custome rs to buy this product provide be because of the higher efficiencyand good quality of an eco-friendly premium luxury car. warlike rivalryNumber and diversity of competitors This means the amount of competition in the car industry which appears to be in the luxury cars such as BMW AND Mercedes in Europe, Lincoln and Cadillac in U.S.Exit Barriers If the new product fails in the market indeed it is not easy for the company to exit because of the involvement of huge capital investments.Product qualityTo maintain its new generation premium luxury car the company has to desex manufacturing improvements continuously to furher keep uplift its quality.Jaguar land Rover Financial PerformanceJLR has shown a substantial increase in the last couple of quarters. Due to the seasonality change in the JLRs business cycle, management has gained assurance in continuing its positive financial performance going ahead.JLR turned a Net Profit of about 55mn in the last quarter of 2009. Jaguar Land Rov ers combined sales volume have increased to about 28% QoQ to 56700 units which was about 44300 units for the 2nd quarter of 2010. The revenue of TATA motors grew by 47 part to 26,774 crore. The stock market has given a thumbs up to TATA Motors as the stock moved up by 6.33 percent in Feb,2010. The retained earnings for JLR for the tierce quarter for 2010 has been 55mm.TATA Motors Limiteds Net Debt stands at about Rs22,745 cr. Of this the aggregate long term debt is around Rs 16,302cr of which 50% has to be repaid over the next few years. The Net Debt to fair play ratio is 4.1, which is believed to be very high.(Angel Broking) business organisation StrategyFrom the competitor analysis it is very much evident that the Land Rover brand for JLR is doing much best than the brand Jaguar. The salesAfter the takeover the head office decisions for JLR is now do in India. India also is a country, which provides cheap labor, lower cost of production and cheap logistics in comparison to ma rkets like UK and USA. The Indian government also has is making constant efforts to encourage FDI in production. May other automobile giants like BMW and Volkswagen and Renault have also made major investments in the manufacturing sector in the previous couple of years. Chennai is now becoming the hub for automobile manufacturing in India.Jaguar has 3 factories in the UK, which have been reporting laborious looses in the past couple of years. So considering the above mentioned conditions, our business strategy is as followsTo establish an assembly plant in India taking advantage of TATA established manufacturing plant across India.To fund this assembly plant through the Loan secured from the State Bank of India.To supply cars to the Indian market, Sub continent market and the South-east Asian market through this plant.There will be drastic fall in the prices of all models with thisThe materials ask for our innovative product The Jaguar XH will be available cheaper in an emerging m arket like India.This includes the waste of wheat crop needed for the shaping and interiors of the car.We also propose Jaguar Land Rover to establish their next RD centre in Mumbai, India along with the RD centre of TATA motors. This RD centre will be the main hub for innovating the proposed Jaguar XH.The upward trend in the financial analysis stets that the financial condition of JLR is improving. And there are increasing cash reserves for investment.The loans received by JLR amount to GBP 515 million which will provide us the resources required for implementing our innovation strategy.According to our analysis above we remember a business strategy that states that Jaguar Land Rover needs to catch up with its competitors and take advantage of its parent company presence in India. We have also laid a base for launching our innovation strategy by establishing RD and marketing hub in India. The budget allotment for these investments will be made in latter sections. renewal StrategyN ew product developmentProduct innovationAccording to the analysis conducted above Jaguar has the back up of financial and technology resources to inaugurate and make its way back into the premium selling business. Our idea of innovation is to come up with a commercially applicable technology in the highly competitive world automobile industry. henry cars are making headway in the RD centre of many automobile giants. Our innovation is to come up with a high-end environmental friendly car, which can be commercially viable technology for high-end buyers to spend. The idea generated by our group is to come up with a product, which not only has a atomic number 1 engine but all the other components used in the car are environment friendly. This includes the seats, tyres, aluminum body, reduction in pollutants etc. Unlike other manufacturers we recommend to launch a high end product. The reason for this is to target our new technology to customers that are willing to pay the price for a better, faster and an environmental friendly car.Product descriptionWe have named our product as the Jaguar XH (H for hyrogen). The heat content technology is chosen for 3 reasons first being the fact the new innovative technology of hydrogen cars, which is gaining momentum in the automobile industry. Secondly, This technology can give Jaguar and TATA the competitive advantage they need to gain back their lost brand awareness. And lastly, the awareness of the overall environmental impact in the automobile industry has been growing as European and U.S. regulations, e.g. for vehicle emission, have become more stringent.Aluminum bodyA cars body makes up around 25% of its total weight, so Jaguar uses aluminum wherever possible to make weight savings. And because the body is lighter, the braking and suspension components do not need to be as big, equaling more weight saving. The aluminum body developed by Jaguar helps in its cars to become lighter and faster. Aluminum technology also makes the cars safer meeting increasingly safety requirements. All the body parts including the nuts and bolts are made of aluminum reducing the car weight considerably. (Power aluminium)Environment Friendly PaintPainting vehicles has in the past been one of the auto industrys biggest environmental challenges stated by Mary Ellen Rosenberger. We are planning to develop paint which is environment friendly. The technology will combine an advanced chemical formulation, which will be made of high-solids, solvent- borne paint. The high solids, solvent borne paint helps to produce fewer volatile organic compounds (VOC) and CO2 emissions than the water borne and current solvent-borne paints. The innovative three steady coating which, are to be applied on the vehicle, are on top of the other, without any drying time during the coats. Doing this will reduce the process in painting, which will lead to a smaller and more efficient paint shop. There are high hopes for this technology and it is estimated that doing this will help save about $7 per vehicle by cutting the time it takes to paint and will even cut back the CO2 and VOC emissions by 10 percent. Even environmentally it will cut down the greenhouse gasses by 15 percent ( elevator car week).Bio Fabric seatsBio fabric helps in reducing co2 emissions because it is made from plants. It concerns about durability, it is not only smooth and soft to touch but also has long life. It is ideal for seats covers, door trims, floor mats and nearly more. It is produced in the same way as polyester materials, which is petroleum, based, so basically there is no need for the special technology. Main difference is that they take 10 to 15% less energy to make and save up to 30% in co2 emissions and co2 is emitted when the car is disposed. (Honda)The futuristic plastic interiorsWe plan to implement environmental-friendly wheat straw-reinforced plastic in our vehicle. Its just the third-row interior storage bins made from the natural fiber-based plastic that contains 20 percent wheat straw bio-filler, this application alone reduces petroleum usage by some 20,000lbs per year, cuts CO2 emissions by 30,000lbs per year, and represents a smart, sustainable usage for wheat straw, the waste byproduct of wheat. Wheat straw-reinforced resin has many advantages over non-reinforced plastic, which is currently used by most of the auto companies. It has better dimensional integrity than a non-reinforced plastic and weighs up to 10 percent less than a plastic reinforced with talcum or glass. We will consider center console bins and trays interior air register and door trim panel components, and armrest liners to be made from the wheat straw-based plastic. We recommend the usage of such materials for the Jaguar XH. (Gizmag.com)Eco friendly tyresBridgestone ECOPIA EP150 eco-friendly tyres will be used in the car Jaguar XHThese low rolling resistance tyre combines high-altitude wet safety with lower fuel consumption and CO2 e missions. These tyres meet the challenging objective of combining top-class wet safety with reduced rolling resistance, stellar(a) to higher fuel efficiency and lower CO2 emissions.These Bridgestone tyres are made of materials technology called NanoPro-TechTM combined with a new tread design. NanoPro-TechTM produces a lower rolling resistance by reducing energy loss in the top compound during rotation. The new tread design features thin rib and a machine-accessible block by which contact pressure and wet braking performance is enhanced.ECOPIA is Bridgestones flagship brand that helps to increase vehicle energy efficiency and thus contributes to the prevention of global warming. This is achieved by tumbling rolling resistance and/or saving resources whilst maintaining various performances needed of tyres, especially advanced safety performance. (News Market)CoolantsHydro chlorofluorocarbons (HCFCs) are compounds made up of hydrogen, chlorine, fluorine, and carbon atoms. HCFCs are a substitute to CFCs that are used as a coolant in refrigerators, aerosols, cars, etc.Earlier CFCs were used as a coolant and because it had classes of compounds that used to deplete the ozone layer, HCFCs are now used as a substitute and are not as harmful as compared to CFCs.(Science J rank)Hydrogen technologyThe Jaguar XH is a car which is good for the environment. For the very first time, this car will be sold to the direct customer on a full scale grounding and will be the most environment friendly car in the world.Based on the same design that is currently being used by Honda FCX Clarity, the Jaguar XH will use a hydrogen tank that will pass hydrogen through a battery and produce energy which will in turn run the motor of the car. This car uses no gas of any kind and hence does not leave any harmful pollutants. Hydrogen is stored in a tank and is then passed through a fuel cell which combines hydrogen and oxygen to produce galvanizingity. The vehicle is then propelled by an electric motor which leaves behind only clean water vapour behind hence making it a zero omission vehicle.Source Honda ClarityHowever, as compared to petrol, hydrogen does not affect the environment in any way possible and the only emission that is released is water vapour. So even though hydrogen may be very environment friendly, it simply fails to produce as much as energy as petrol can give. In other words, the car will not run as fast as it does when petrol is being used.There are a couple of innovative strategies that can be used in order overcome this barrier of speed and efficiency. We propose to design and make the car more aerodynamic and sleek and made of aluminium. Aluminium is used as it is lighter than steel and is strong as well.Although the estimate cost to setup one large hydrogen fuel move would cost about $1.16 million approximately (Energy independence), we do not plan to set these up during the initial years till we see a fringy increase in our sales for jaguar XH or other companies may want to join partnership and build the hydrogen fuel stations in different parts of every city. Our proposed business strategy would be to set up a huge hydrogen fuel stations in different parts of the country based on a location strategy. For example there would be 8-10 hydrogen fuel plants in different parts of UK. For example London, Bristol, Manchester, Birmingham, Newcastle, Edinburgh, etc. The diagram shown below, demonstrates as to how hydrogen will be produced at each of our plants.Source Argonne National LaboratoryOur strategy is to deliver fuel to our customers preferably than them coming to us and refueling. By strategically placing these 10 stations all over UK, we would be able to deliver fuel to our customers much more efficiently and effectively. Although this may sound a little strange, there is a logical reasoning behind this strategy. To set up each fuel pump (small) across the country would cost approximately $253,000 which is exorbita nt. (Energy Independence) . So in order to save up a lot on cost, we plan to just set up 8 to 10 factories in strategic locations. Now our customers do not need to come to the factory to refuel but we would go to them instead. It may then seem as to how fuel can be delivered so often. But a litre of hydrogen can run the car for approximately 390 kilometers. hence it will be more cost effective for us to deliver the fuel directly as per their convenience. We would have mini fuel trucks like the surface of the regular ambulances that will be particularly be imported from India (as the cost is low) and will run on LPG and the emission from these vehicles will be controlled as well by using the 3-way catalyst technology. (Nett). Each location will have an average of 5 to 10 fuelling trucks depending in the demand of the vehicle in those particular cities. Now, if the owner of the car sees that his car is running low on fuel, all he needs to do is to make a phone call. But then what if he already runs out? Every car is fitted with an emergency hydrogen tank which is attached to the main tank. This emergency tank will contain a litre of hydrogen enough to run the car for approximately 390 kilometers.Marketing and Commercialization planProduct Planning -Marketing of our new innovation Jaguar XH (hydrogen)Target market This product will be targeted towards the upper class segment in the US and UK markets, the product will offer new hydrogen technology to its consumers. The major attraction for this segment of consumers will be the new hydrogen technology and the higher speed and efficiency offered by this technology.New Product development Policy We recommend company will continue investing in Research and Development for updating and improving our new product according to latest developments and trends in consumers tastes. The special RD budget for this product will be calculated in the section ahead.First environmentally friendly car to be sold on retail basis in the UK and US market in the year 2013.Pricing- policies and procedures relating toPrice Level Our product will be costly and target the premium segment and its price will range between GBP 1.5 million to GBP 1.8 million.Margins to adopt Considering the heavy investment in the project. We would start with a heavy margin and slowly tighten the margin on the basis of market competition.Price Policy Our Company will follow One-Price policy in a country but price may vary between U.S and U.K depending upon Government taxes and Import Export tariffsBranding- policies and procedures relating to Brand Policy The car will be available in the market under the brand name of Jaguar.Channels Of Distribution- policies and procedures relating toThe car will be available to end users through already established showrooms of Jaguar in U.S and U.K. also the existing channels of distribution will be proposed.Advertising- policies and procedures relating toProduct Image Our product will be the first o f its kind. It will be the worlds most environmental friendly car and this will be its unique selling point. It will be marketed as the worlds first fastest sedan because of the advantages of hydrogen technology. A heavy budgeted marketing plan will be needed, as this product will be the next biggest innovation to hit the industry after the TATA Nano.Corporate image Jaguar is famous for years for manufacturing quality luxury and sports cars for upper and upper middle segment of the market. With the takeover by TATA, it will be benefited by the reputation that TATA enjoys of an innovative company.Mix of Advertising Our car will be advertised through Ads on T.V, Internet. Big boards and banners will be displayed in the main and commercial areas in cities of U.S and U.K.Promotions- policies and procedures relating toTag line The Greenest Leaping CatWill be marketed with an expensive marketing budget of GBP 100 million through all possible promotional sources. As the worlds most enviro nmental friendly car ever.Display and launch- Our car will be first displayed and launched in Auto Expo in U.S and U.K in 2015 and all other major automobile expos held in all parts of the world.It will be available for test-drives at Jaguar showrooms in U.S and U.K. It will also be put on display for public at major airports in U.K and U.S.Servicing- As this is an all new product and technology, servicing could be a biggest challenge that JLR will face. All arrangements will be made for after-sale servicing of our new car at all the service centre for Jaguar in U.S and U.K. Also auto parts will be made available with the dealers for replacements in case of damage by accidents.( Harvard Business School)Budget estimation and RDSpending headsEstimated Spending (Amt. In million pounds)2010 (Projected)2011 ((Projected)2012 (Projected)Research Development800600600800Car DevelopmentOutsourcing160Fuel