Land Rover – Case Study Presentation

Consumer Behavior - Group Number – 2Alok Shukla, Dharmesh Gandhi, Saurabh Jain, Narendran Subbaiah, Adarsh Natarajan,

Ramanathan G A

Land Rover Positioning – Historical Positioning - UK

Land Rover – Functional Value Product Range Rover – Emotional Value Product

Lifestyle Brand (Hedonic Concept) JND concept applied for incrementally increasing the price of

Range Rover PR activities targeted towards effective use of reference

groups and opinion leaders

Initial Positioning in US Range Rover

Perception Aspects Had to develop category membership and provide point of parity Point of Parity

Four Wheel Drive Ruggedness, Safety

Pricing Price dissonance was reduced by educating the customer of its culture and

heritage Point of Difference

4WD with Performance Luxury of a Car Positioned as Luxury Brand with British Heritage

Perception Organization Self Selection using the pricing info in Ads Figure & Ground (Advertisements – Vehicles with muddy ground) Use of concept of closure through its ads Perception Selection - Problematic going by the low Ad Recall and Brand Awareness

numbers (Exhibit – 10) Perception of exclusivity created due to few distributors.

LRNA Stable – Applied Concepts Market Segmentation

With the 4 X 4 leisure segment, made target users based appeal LR Discovery with Dual Positioning

For Young, affluent adults, provided Visible Statements, 3 Doors car

For conservative, smart buyers – Functional values, 7 doors car Umbrella Positioning

Moved over from a single offering to multiple products under a single brand

Discovery Range Rover Defender 90

Land Rover Discovery – Some Perceptual Findings

Discovery is in the same segment as Ford Explorer and Grand Cherokee, however it appeals more to highly educated buyers.

Discovery is also the brand brought predominantly by the affluent class.

Land Rover Discovery - Pricing Dissonance? Is the price of the car in the

segment too high ? More important as the target is to

sell 40000 cars in an year Is price dissonance a bottleneck

for LR Discovery sales volume growth ?

Customer don’t find positive acquisition utility.

Land Rover– Key Recommendations Product Positioning

To reduce price dissonance, new messages should be constructed to enforce premium positioning

Need to enforce family based advertisements more strongly by using the concept of chunking/grouping.

Transaction Utility concept The “Transaction Utility’ could be played up to ensure that customers felt good about their

decision to purchase the LR. This could be used by following retailing strategy.

Allocating funds for Marketing Mix elements Increase budgetary allocation to fund image building activities for the parent brand To increase Ad Recall and Brand recollection and also to educate the customer on brand-

premiumness, PR activities needs to be increased. The relevant concepts are increase in sensory inputs using Weber's law. Print Advertisement should focus on reinforcing aesthetics and comfort features where there is

a perceptual deficit for LR Discovery vis a vis Ford Explorer/ Grand Cherokee

Experiential marketing program should be aggressively pursued Invest in Love of Product Seminars to increase ownership Invest more in Driving Academy – Can be used to drive perceptions for performance facets

Retailing Strategy Continue with centers -make shopping of vehicles a high involvement activity. These centers would help in increasing the association with in brands and people and help in

shifting the reference prices.