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Jaguar

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A Strategic Analysis of the Jaguar X-Type April 30, 2003

Mark Ganaway Cindy Sammy Christopher Smith

Executive Summary
Jaguar has entered the low-price luxury segment with its new X-Type vehicle. Jaguar’s strategy is twofold: 1) Jaguar hopes to capture its traditional customers at a younger age (up to 20 years younger) and engender life-long loyalty to its brand. 2) Jaguar hopes to increase revenues and margins through an aggressive growth strategy. Jaguar has run into a few problems with its strategy including poor reviews for quality of the new X-type, production that far exceeded demand, and aggressive pricing that may adversely affect the brand image. However, the core strategy is sound, and we would like to recommend the following: • Maintain autonomy of Jaguar unit to ensure differentiation. • Continue to offer high value to price features while improving production problems to attract customers and leave a luxurious impression. • Pursue growth in line with demand to limit discounting and sales based on price. If these measures are enacted, Jaguar will be successful in increasing sales volume, attracting new, younger customers and maintaining its brand image.

Introduction
Towards the end of World War II, Sir William Lyons began building the first Jaguars. Since that time, the distinctively British automobile has been synonymous with style, elegance, and impressive performance engineering. In 1989, Jaguar was brought under the Ford Motor Company umbrella, and this brand now also strives to be”…(an) excellent value for money for that level of luxury car.”1 A key component of this new strategy is the introduction in 2001 of the X-Type into the low-price luxury vehicle segment. This decision was viewed by many analysts as a huge shift from Jaguar’s historic positioning and had the potential to greatly undermine the Jaguar brand. However, BMW and Lexus

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