Jaguar Land Rover (JLR) Marketing Report

panther pull down bird of draw inage (JLR) merchandise Report1. jaguar buck scouter ships company profile cougar drink down wanderer Cars (JLR), founded in 1922, is bingle of the worlds premier manu itemurers of extravagance saloons and sports railway automobiles. It is a wrinkle built around deuce great British elevator car places with exceptional design and engineering capabilities. Their manufacturing facilities be in the UK and currently employ every over 16,000 people, predominantly in the UK (Tata community Profile, 2009). In June 2008 Indias Tata Motors bought JLR from Ford Motors for 1.15bn (BBC, 2008). The JLR byplay acts as a major riches generator for the UK, with 78 per penny of sphere Rovers exported to 169 countries and 70 per cent of pumas exported to 63 countries. Sales to clients are conducted princip on the wholey by means of franchised leads and importers (Tata company profile, 2009). However, since the acquisition work Rover sales have f each(prenominal)en to a greater extent or less(prenominal) 23 per cent in 2009, down to 144,133. mountain lion was excessively down by nearly 20 per cent to around 52,500 (Birmingham Post, 2010).2. Recent developments painter shoot Rover has reported a ut around profit of 55 one one million million million million the monetary family 2009. This has been possible because of the tonic models giveed by the company in the year 2009. This includes the All revolutionary painter XJ, which has reported impressive sales figures for the company. JLR has similarly secured heterogeneous 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 withal the GBP 175 million loan from the state bank of India (FT.com). They plan to employ the money in the merchandiseion of earth Rover LRX concept, which is the sm eachest Land Rover to be launched. JLR is matu symmetryn its dependence on the appear merchandises as it plans to increase its sourcing from the Indian merchandise and also plans to moves it cropion to China (Cov accounting entry Telegraph.net).3. AnalysisCompetitor summary Land RoverDimensionsLand Rover smokeDaimler BenzToyotaPRODUCT LINE utilityLand Rover Presence endure be knock againstn in SUV as well as in sport cars.Hummer Has charge precisely in the SUV segment.Damiler benz A traditional pseud in tot eithery segments of car, suv and sports car manufacturing.Toyota Presence in almost all the segments of cars and trucks.SERVICE ADVANTAGELand Rover Has social movement of helping networks all over the globe match to its product tie.Hummer Limited mien in the world.DaimlerBenz A principal network all over the globeToyota An extensive monger benefit ready(prenominal) with the large product caudex offering.Low Cost highlife cars ( passel determinant)Land Rover No presence in this segment and slump presence in the emerge markets.Hummer Reasonable price, no presence in the emerge markets.Daimler benz A strong presence in the mild greet lavishness market in all the acclivitous countries.Toyota A strong presence in the luxury market in all emerging markets.Retail AdvantageLand Rover Has a school principal in all move of the world.Hummer Low presence in emerging markets and in Africa.Daimler Benz Has the biggest network of dealers in parity to the competitors.Toyota Has a dealer authorisation in all parts of the world. proficient AdvantageLand Rover Has an growth in RD disbursal of nigh 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 b governing troika days.Toyota Ranked look one company in RD consumption for all the industries. al baseborn for ChainLand Rover Has 1 primordial manufacturing embed at Solihull, near Birmingham.Hummer Has 6 plants inter untarnishedal including fabrication plant s. 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 turned into profit in December andt with net profit of 4.17 billion rupeesHummer Sales in the first three months of 2010 fell down by 72% to 855 vehicles.Daimler benz Mercedes has a 25.3% increase.Toyota A move of 1.12 million units compared to the previous year.Local CollaborationsLand Rover Has an utility 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 pumaDimensionsJaguarPorscheDaimler BenzBMWProduct line favorJaguar Has a cut back of luxury and sport cars. Jaguar cars have lack of volume as thi ther is a get 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 any segment from low cost luxury market to high layer luxury cars and suvs.Service advantageJaguar Lacks service advantage callable to hold in presence all over the globe.Porsche In accordance with the expressage 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. scarcely 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 behi nd Mercedes Benz.Retail advantageJaguar Has a limited dealer network with even a few be company owned.Porsche Has proficient 2 dealers in India as an example.Daimler Benz Has the biggest network of dealers in comparison to the competitors.BMW Has authorized dealers all round the globe.Techno synthetical advantageJaguar Has the highest RD expense for its segment of travel companies.Porsche NoneDaimler Benz Plans to double its RD spending this year to 1.4 billion dollars.BMW Has engine room 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 production 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 exertionJaguar has witnessed a 3.6% drop in sales in 2010.Porsche has a 6 % increase in 2010.Daimler Benzhas a 25.3% increase.B MW 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 signifi targett presence in all emerging and developed markets. Has factories in emerging markets.JLR PESTEL analysis (2010)A more new-fangled PESTEL and SWOT Analysis of JLR (2018) is available here Political factorsAfter securing a loan from the European investment bank TATA has nowadays chartern a U-turn over its demand for loan from the UK regime (Guardian.co.uk).Social factorsEmploying large number of workforce Jaguar Land Rover employs 15,000 people, surrounded within the UK including most 3,500 engineers at 2 product development centers in Coventry and Gaydon.To ameliorate the production facilitiesManufacturing competence has improved at Jaguar Land Rovers Halewood plant with a pilot training programme that concentrated on develop employee skills and problem solving. A programme was developed in partnership with the theme 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 body in their cars.Economic factors environmental FactorsJLR is recently searching on Wallenius Wilhelmsens Orcelle project for a light burden environmentally sound ship that can carry 10,000 cars by using solar, quake and wind power which does non discharge any emissions into the environment or the ocean. lists of environmental initiatives are taken to improve the efficiency and humble the CO2 emissions of Jaguar products. They use lightweight and recyclable material extensively and also passing efficient diesel engines. Jaguar Land scouter has achieved full environment product certification for its model XJ in 2009.(Jagua r Website) intelligent factorsJaguar Land Rover is spending 800m over five years to develop technologies knowing situationly at dropping tailpipe CO2 emissions designed to meet the 25% improvement target set by the European Union which is well ahead of the labor norm.( Sam Abuelsamid)Land Rovers LRX creation is a thinly veiled preview of the new small crossroad the company is planning for launch around 2010. The unibody plan was created to prepare buyers for Land Rovers plans to introduce a bevy of smaller vehicles off a commons platform in order to improve the brands evoke economy and CO output ahead of new EU legislation.Bowmans strategic clockJaguarJaguar is a strong knowledgeableness base organization, which is evident from the innovations it had beget up with recently. This includes the usage of only 2 product lines instead of 6 it use previously.The analysis of its product lines shows that it desperately unavoidablenesss differentiation, which can be achieved throu gh technological innovation and also through product line innovation.JLR has huge spending on RD but still has low RD spending in compared to different competitors like 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 Freelander and Disco real targeted towards the medium end consumers.Land Rover to meet the EU legislation norms as well as the need of emerging markets has plans to move into 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 metropolis investment for the manufacturing of our new car which is environmental tender and targeting a peculiar(prenominal) segment of the market .So the risk of new entrant is high as other big players might try to imitate the same concept. acquaintance 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 dispersion channels A well developed distribution is must for its success when a new product is launched in the market. So we bequeath take advantage of well established TATA Motors channels across the world.BuyersSwithching cost As it is first of its kind, so they have no options to jump 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. in that location is no forward integration of buy ers.Brand motion picture 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 threat that constumer ordain switch to a substitute product is ver low.BUYERS WILLINGNESS The get outingness of the customers to buy this product leave be because of the high(prenominal) efficiencyand good tonus of an eco-friendly premium luxury car.Competitive rivalryNumber and diversity of competitors This means the amount of competition in the car intentness which appears to be in the luxury cars such as BMW AND Mercedes in Europe, crownwork of Nebraska and Cadillac in U.S.Exit Barriers If the new product fails in the market thus 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 mark manufacturing improvement s 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 confidence in continuing its positive financial performance going ahead.JLR turned a displace Profit of about 55mn in the last quarter of 2009. Jaguar Land Rovers have 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 percent to 26,774 crore. The stock market has granted 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 third 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 bordering few years. The Net Debt to Equity ratio is 4.1, which is be lieved to be rattling high.(Angel Broking)Business StrategyFrom the competitor analysis it is precise much evident that the Land Rover brand for JLR is doing much mend 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, decline cost of production and cheap logistics in comparison to markets like UK and USA. The Indian government also has is making constant efforts to encourage FDI in production. May other motorcar giants like BMW and Volkswagen and Renault have also make major investments in the manufacturing sector in the previous couple of years. Chennai is now be overture the hub for automobile manufacturing in India.Jaguar has 3 factories in the UK, which have been reporting heartrending looses in the past couple of years. So considering the preceding(prenominal) mentioned conditions, our business strategy is as huntsTo establish an assembly plant in India taking a dvantage 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 result be drastic fall in the prices of all models with thisThe materials needed for our groundbreaking product The Jaguar XH testament be available cheaper in an emerging market like India.This includes the do in of wheat berry crop needed for the charge card and inside(prenominal)s of the car.We also pop the question Jaguar Land Rover to establish their next RD centre in Mumbai, India along with the RD centre of TATA motors. This RD centre volition 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 militia for investment.The loans received by JLR amount to GBP 515 million which provide provide us the resources required for implementing our innovation strategy.According to our analysis above we recommend a business strategy that states that Jaguar Land Rover needs to pull in 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 selling hub in India. The budget allotment for these investments willing be made in latter sections.Innovation StrategyNew product developmentProduct innovationAccording to the analysis conducted above Jaguar has the back up of financial and technology resources to innovate and make its way back into the premium merchandising business. Our idea of innovation is to find up with a commercially applicable technology in the highly competitive world automobile industry. Hydrogen cars are making headroom 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 possible 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 total heat 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 enthalpy technology is chosen for 3 reasons first being the fact the new innovative technology of total heat 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 automo bile industry has been growing as European and U.S. regulations, e.g. for vehicle emission, have obtain 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 good luck 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 precaution requirements. All the body parts including the nuts and bolts are made of aluminum reducing the car weight considerably. (Power aluminium)Environment Friendly Paint picture show 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 positive complexs (VOC) and CO2 emissions than the water system borne and current solvent-borne paints. The innovative three wet coat which, are to be applied on the vehicle, are on nip 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. purge environmentally it will cut down the greenhouse blow outses by 15 percent (Auto week).Bio Fabric seatsBio fabric helps in reducing carbonic acid gas emissions because it is made from plants. It concerns about durability, it is not only smooth and soft to gibe but also has long life. It is ideal for seats covers, door trims, decorate mats and nearly more. It is produced in the same way as polyester materials, which is petroleum, based, so fundamentally there is no need for the special technology. Main difference is that they take 10 to 15% less cypher to make and save up to 30% in co2 emissions and co2 is emitted when the car is disposed. (Honda)The futuristic tensile 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 pla stic and weighs up to 10 percent less than a plastic reinforced with talc or glass. We will consider center sympathize with 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 protection tyre combines high-level wet safety with lower force out consumption and CO2 emissions. These tyres meet the challenging objective of corporate trust top-class wet safety with reduced rolling resistance, leading 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 affili ated 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 spheric 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 nocent 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 basis 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 away 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 thusly passed through a fuel cell which combines hydrogen and oxygen to produce electricity. The vehicle is then propelled by an electric motor which leaves behind only clean water vapour behind hence making it a zero failure vehicle. offset 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 petro l 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 station 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 marginal 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 plat 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 rather 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 pith (small) across the country would cost approximately $253,000 which is exorbitant. (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. right away 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. W e would have mini fuel trucks like the size 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 taking into custody 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 h ydrogen technology to its consumers. The major draw poker for this segment of consumers will be the new hydrogen technology and the higher speed and efficiency offered by this technology.New Product development indemnity We recommend company will continue investing in question and Development for updating and improving our new product according to modish developments and trends in consumers tastes. The special RD budget for this product will be metric 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 expensive 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 spark with a heavy margin and slowly tighten the margin on the basis of market competition.Price form _or_ system of government Our Company will follo w 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 at a lower place 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. advertisement- policies and procedures relating toProduct Image Our product will be the first of 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 manufac turing 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. thumping 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 to note 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 environmental 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 common 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 persecute by accidents.( Harvard Business School)Budget estimation and RDSpending headsEstimated Spending (Amt. In million pounds)2010 (Projected)2011 ((Projected)2012 (Projected)Research Development800600600800Car DevelopmentOutsourcing160 terminate