Introduction

Land Rover North America’s president and CEO, Charles Hughes had a dream for the company: to make

North America the #1 Land Rover market worldwide. The Land Rover Discovery was a big success with

over 2,000 units sold and 4,000 customers waiting availability. They were also planning to re-design the

Range Rover and add improvements to the Land Rover Defender. Based on the growing strength of the

U.S. SUV market, research suggests consumers are seeking vehicles that can help them have

"experiences" while being practical, safe, reliable and luxurious.

Competitive Analysis

The SUV market included 30 products with prices ranging from $10,000 to $60,000 (1994). The market

was concentrated with Jeep and Ford, with Chevrolet as a distant third. In the luxury segment competitors

included: Mercedes, Lexus, and Infiniti (announced entry in 1996); Jaguar, Acura, Lincoln, and Cadillac

(studying entry for 1997). Jeep Grand Cherokee was the best-selling SUV in America. Jeep was a very

popular brand due to their heritage as America’s first-ever SUV. Ford Explorer was the second best-

selling SUV. Both Jeep and Ford has multiple price points in their portfolios allowing for a large

customer target. Chevrolet’s brands were depicted as “product quality with style”. Ford Explorer and Jeep

Grand Cherokee are the biggest competitors when it comes to customer perception of major SUV brands.

They have higher brand awareness while Land Rover Discovery has the lowest (refer to exhibit 1)! Ford

Explorer and the Jeep Cherokee also have the first and second highest overall opinion of SUVs (refer to

exhibit 2). Again, both Ford and Jeep have the highest rating when it comes to buying consideration (refer

to exhibit 3).

Product Line Analysis & Pricing

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The Land Rover Discovery - Introduced in April 1994 after first introduced in the UK. Price of the SUV is

$29,350. The SUV was targeted for US customers that included features they’d enjoy. Features included:

alarm system with keyless entry, cruise control, heated exterior mirrors, five-door entry, seven-passenger

seating capacity, dual electric sunroofs, fog lamps, rear air conditioning and leather upholstery. When the

vehicle launched, it was the only SUV in its class with dual front airbags and anti-lock braking as

standard equipment.

The Land Rover Defender - Limited edition and was launched when the company changed its entire

branding. It was the original Land Rover, however redesigned for a separate identity. Pricing for the

Defender should be a little under $20,000. The Defender does not have all the same features as the

Discovery and it is competing with cars like the Jeep Grand Cherokee which are priced at $21,000.

Segmentation & Target

The Land Rover vehicles are high-end SUVs that offer all the benefits of other SUVs, but viewed as a

nicer SUV. The Land Rover should target both males and females who are between the ages of 25-40.

The market segment includes those who enjoy adventure and outdoor activities. The geographic region is

everywhere in the United States, except cities with high poverty. This is because marketing should aim to

attract outdoors people who most likely live in wooded or even beach areas. Also, the SUV has aesthetic

appeal, so people in nice areas of the United States would be likely to buy the car. Looking at Exhibit 4,

it’s clear that both SUV drives under the age of 40 are concerned with off-road capability, 4.2/5.0, as well

as aesthetics 4.1/5.0, however they were not as concerned with their social image 3.0/4.0.

Positioning

SUV purchases were driven by product benefits including but not limited to: product quality,

product safety, product performance, overall comfort/convenience, off-road capability and

aesthetics.

The Land Rover Discovery - Dual positioning. First, as The Definitive Family 4 x 4. Second, as

A Logical Evolution of the Legendary Range Rover. Emphasizing the features and safety of this

car has allowed them to target families.

The Land Rover Defender - Position as the truly rugged all-terrain vehicle. This is because of the

look and feel of the car. They want to segment it to outdoorsy people who thrive off adventure.

Branding

The company changed its name to Land Rover North America, this way it didn’t have ties to the high-

luxury Range Rover name. Land Rover had loyal owners whose lifestyle centered on the brand. There

were avid collectors who owned more than one Land Rover. It became more than just a brand, it was a

social experience. There was merchandise created as well as social events that centered on Land Rover.

The values of Land Rover included individualism, authenticity, freedom, adventure, guts and supremacy.

Conclusion

In conclusion, what is important is that the Land Rover brand separated itself from the overall Range

Rover image. They wanted Land Rover to appeal to an adventurous audience who was concerned about

self-image but still wanted a nicer SUV. Land Rover has tough competition since rebranding themselves

apart from Range overall. The top competitors are Ford Explorer and Jeep Grand Cherokee. Global sales

indicate that in 1994, the Defender at 10,545 sales, was more popular than the Range Rover at 8,168

sales. Keeping prices lower than their Range Rover is also important. The $54,000 4.0 SE is priced at

$54,000. The Discovery and Defender are more of outdoor sport cars, they can’t be seen as luxurious.

Since rebranding Land Rover, sales will increase in the United States because it will appear to a different

target market than Range Rover.