Case ID: 6000011     Solution ID: 37094     Words: 748 Price $ 45

Land Rover Vehicles:The Cb40, A Project In Nimbleness And Flexibility Case Solution

Abstract

At first, the autos delivered by Rover Car Company were thought to be as the Doctor's Car. The picture of the auto was to such an extent that it is just dependable amid crisis. Notwithstanding, absence of formative foundation after the Second World War Land Rover to concoct another model of the auto to stay in the exceptionally aggressive car industry. In this way, the organization chose to make a four by four vehicle, as a traveler auto for its clients. Freelander was among the most punctual of the jeeps that were utilized for rough terrain work. Consequently, Freelander was begun.


As the flagship model of Land Rover, the Range Rover is by far the most expensive model in its class. Positioning this vehicle is a tricky task as many consumers will be unable to participate due to the expensive price. Similar to the Discovery, the Range Rover should be positioned towards mid-aged people who are well educated and established in life. Only an average of 8% of the people who purchase the Range Rover have incomes of less than $100, 000 (Exhibit 1). In addition, an average of 77% of owners has at least a college degree at hand (Exhibit 1). Because the Range Rover provides extraordinary luxurious features as compared to the Defender and the Discovery, a quick assumption is that females will be inclined and more willing to show an interest of purchasing one of these vehicles.


Before any cars can roll off the dealerships' driveway, the need for a solid management team to utilize and distribute the company's capital resources to effectively allocate cash across the marketing mix is imperative. By utilizing resources throughout the marketing mix, the money will be spent wisely to provide awareness, communications, and experiences to consumers about the practicality of owning a Land Rover. Looking at Exhibit 3, we find that buyers for SUV's do not consider the Land Rover as a "very/somewhat familiar" brand. In order to be a successful company of any industry, the initial startup strategy must include the promotion of the company's name and image. According to the statistics from Exhibit 3, Land Rover is near to last against their competition in brand recognition. To remedy this problem, a sound resolution must be implemented as quickly as possible. To further support the lack of awareness in the corporate brand name of Land Rover - in Exhibit 3, only 16% of consumers who are in a buying position for a SUV is "probably" intending to purchase a Land Rover. In addition, only 8% of the consumers in a buying position are "definite" in purchasing a Land Rover. Both 16% and 8% respectively demonstrates the lack of consumer confidence. To reduce this perceived risk by consumers, an increase in advertisements and promotions must be implemented.


There are two easy and fast ways to gain global exposure. The first way is through advertising channels such as televisions, magazines, radio broadcasts, and through product placements. The second way is through advertising in product promotions and direct mailing. As a recommendation, during the beginning years of global presence by Land Rover, at least 70% of the marketing budget should be allocated towards the channels mentioned above. This will quickly create a public awareness of the Land Rover's brand name and at the same time, increase consumer knowledge over Land Rover's business. The remaining 30% or so in the marketing budget should then be allocated across corporate sponsorships (public relations), and in experience marketing programs. Experience marketing programs enable potential buyers to undergo and gain experience through a real life learning experience. Though these programs are relatively expensive to facilitate, experience marketing programs are a sure way to receive direct feedback on personal experiences from test drivers. Through the feedback, Land Rover will then be able to pin point key deficiencies in their product line and thus improve upon their weaknesses. On the issue pending with corporate sponsorships, Land Rover is currently participating in approximately ten different events. Keep in mind, over $900, 000 is being spent on these events. Many people do attend these events and notice Land Rover's brand, however, these events do not show that these sponsorship events are in fact attracting new consumers into Land Rover's market. As a new strategy, management should rather focus on promoting several key events, and should then later reallocate any remaining budgets to the other marketing mix factors.


What good can there be if a specific product line is flawless and provides exactly what buyers expect, however the process to exchange the product is deficient and lacking? In order to maintain a streamline distribution of the vehicles, there is an imperative need to monitor closely and control the logistics of the retail strategy being implemented.


Land Rover's secondary approach to distribute their SUV's was to develop specific Land Rover dealerships. However, this strategy was viewed by management as too costly and in addition, poses an investment risk if the idea fails to flourish. The current retail strategy where management identifies key distribution locations has proven to be both effective and efficient. By screening for dealers who demonstrate expertise and enthusiasm for SUV's, the probability of a failing location will be minimized (Currently the average payback time for those deals who participate as a vendor for Land Rover is 90 days).


Complimentary to an efficient distribution outlet should also include an on-going attempt to mitigate the anxieties during the purchasing process at a dealership. Over 70% of consumers believe that buying a car is a big hassle due to the complicated application process required by the dealerships. By providing top notch customer care services and a straightforward means of purchasing a vehicle, this competitive advantage may draw the attention of potential buyers into purchasing a Land Rover merely due to the purchasing ease and simplicity.


After awhile as this purchasing methodology becomes efficient, the retail strategy should then focus on increasing sales volume. With more unit sales, the ability to continually sell cars efficiently will require a larger staff base in order to carryout the responsibilities to fulfill the demand by buyers. 

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Questions Covered

1. What is the genesis of the Freelander?

2. Why is it important for Land Rover to launch a different car model than they had in that time, which focused segment they wanted?

3. What are the characteristics that market segment that Land Rover wants to attract?

4. Why is it important to set the design conditions before executing the design?

5. Identify the main strategies used Land Rover design.

6. Identify the main strategies used production Land Rover.

7. What you have done if you were in charge at the above questions.