Land Rover North America, Inc.
1. Why is LRNA launching the Discovery?
2. Why do people buy SUVs? What benefits do SUVs deliver? Does the product make sense on a rational, economic basis?
3. Market Segmentation: Who is the typical SUV consumer and how is this changing?
4. Product Differentiation: What are the differences among competitive SUV offerings? What are the distinctive roles of the different brands within the Land Rover line?
5. What strategic considerations are involved in moving this brand forward? Make recommendations on suggested positioning, and delivering this positioning through the marketing mix.
1. Why is Land Rover North America, Inc. launching the Discovery?
The successful of Japanese
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The research also shows that consumers in 1990s were no longer driven by status concerns but the real and fantastical “experience.” The perception of a safer vehicle, make SUV fits the consumer trend.
The Truck Study done by Maritz in 1997 agreed with the above result that quality, safety, and performance are more important than the symbol of status.
Another research conducted in 1994 by Maritz Truck Buyer’s Study showed that most SUV buyers are:
Male 66% vs female 34%
50% married without kids
80% of them age below 49. The median age is 41.
Higher education level
Higher income lever. Their mean income is $63K which is higher than the US average $31K.
4. What are the differences among competitive SUV offerings?
The best selling-SUV brand
The standard of SUV in the US
Offered three brands: Jeep Grand Cherokee, Jeep Cherokee and Jeep Wrangler
Price ranged from $21,000 to 11,800
Highest ads spending, $67.8 million
Best brand awareness
Low repair and maintain cost
High complaint rate
Good seating capacity
The 2nd best selling SUV brand
Multiple prices and models
$24 million advertising budget and Exporer benefited from cooperate