Land Rover was facing financial difficulties in the mid-1980s due to declining sales in third world markets and parts supply issues. Market research identified two types of potential customers for SUVs - young, affluent status seekers and more conservative buyers focused on functionality. To appeal to both groups, Land Rover introduced the new Discovery model.

1. Land Rover Case
Case Write Up

2. Why is LRNA Launching Discovery?
 By mid1980s the goinggot toughfor the rovergroup. Due to oil crisis the companylostitsholdon the third
worldmarkets. Alsothe constrainedpartssuppliesandscantrepairservicesstartedtakingatoll onthe
company’ssales.
The lossin one thirdof the base model salesfrom1983 to 1985 plummetedthe company’sprofitsandmade the
companylookoutfornewermarkets.
 The above mentionedcrisistriggeredamarketresearchwhichledtofiguringtwodistinctusersegmentsforthe
emerging4X4leisure sector.The firstisa groupof the affluentyoungwhowantedtomake a visiblestatement
withtheirvehiclesandthe secondwere conservative buyerswhowere more interestedinvehiclesthatwere
smart and functional thanthose thatmade image statements.Keepingboththese usersinmindthe newsavior
DISCOVERYemerged.
Why do people buy SUVs?
Following are some of the reasons for people to buy SUVs
 Multipurpose versatile vehicle
 Offers mix of elements like quality, performance, off-road capability, aesthetics, comfort/convenience, economics and
status/image
 It offers great value for money, fun to drive experience, ride comfort, and seating capacity
 It also offers durability, ease of handling, great engine quality
Now people have moved from the perception of holding vehicles for the sake of status symbol. They areno more attractedto
present wealth and prestige. People aredrifting towards, safety and functional needs. The want both luxury and utility in a
single vehicle
Who is the typical SUV Consumer and how is this changing?
 Typically the SUV Consumerconsistedof twosegmentsinthe beginning:
 Young andInfluentpeople who wantedtodisplaytheirstate andaccomplishmentsthroughtheir
vehicles.
 The conservative buyerswhocaredmore aboutthe functional aspectsandwantedvehiclesthatwere
smart and notjustmade image statements.
 By 1992 the researchconductedshowedthat the consumerswere nolongerdrivenbythe statusconcerns
unlike inthe past.NeitherdidtheyconsiderSUVsasthe symbolsdemonstratingrichnessandstatusand
prestige.Whattheywantedwasa newanddistinctexperiencewhichwasboth“real andfantastical”
 From the exhibit19followingobservationscanbe derivedaboutthe SUV buyers
 66% are male and 34% are female.
 74% are married(24% withkidsand restwithoutkids) and26% are notmarried.
 The maximumSUVsare ownedbythe age groups 35-49 followedby65+
 80% of themage below49. The medianage is 41
All these clearlysubstantiate the shiftmentionedfromyoungandaffluentprestigebuyerstosmartbuyers.

3. What are the differences betweencompeting SUV’s inthe market place?
Followingare the differencesobserved :
Jeep
 It isthe bestsellingSUV brand.
 It has price rangingfrom$21,000 to 11,800
 Offeredthree brands: JeepGrandCherokee,JeepCherokee andJeepWrangler
 It has strongheritage inthe sportutilitydomainandisthe firsteverAmerican SUV.
Ford Explorer
 It isthe secondbestsellingSUV Brand.
 It has $24 millionadvertisingbudgetandExplorerbenefitedfromcooperate umbrellaads.
 It has the highestConsumers’perceptionintermof qualitysafety,aesthetics, andcomfortamongall SUV
brands.
 It has multiple price modelsandhaslowerprice evenwithhighbrandawareness.
Chevrolet
 It isthe thirdmajorplayerselling200,000.
 $60 millionadpromotional budget
 It ispositionedasanAmerican legendstressingcombatprovencredentials.
 Low repaircost, head/legisroomy,fairlyfuel economy
What Strategic considerationsare involvedinmoving the brand forward?
(1) The Positioning: Instead of reaching customers in every segment, it can work more on quality and safety because quality
and safety were rated “the most important factors for selecting SUV” for the buyers in every gender, income, and marriage
life cycle.
(2) Allocatingfundsonmarketingmix:
Increase itsmarketingspendingto$30 million
 Use TV,newspaperanddirectmail.
 Increase itscorporate advertising.
 ContinuingitsPRprograms. Drop small events.
 Organize itsowneventstoreplace the jointeventsorganizedbytobaccocompanies.
 Redesignexperience-marketingprograms. Make the car simple,cheaper,andcanbe appliedtoeachregionin
the world. The alternative isholdingthe expensive one about4timesa yearto save cost. Cooperate withits
vendorstosave cost.
 Continue itspromotionanddirectmail campaigns.
(3) The retail strategy:
 Exclusive dealershipshouldbe appliedtojustifythe price andimage.
 The company providesfinance toitsretaileroninvestmentproject.