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|Marketing Plan |
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|The Range Rover Evoque |
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|Group work |
|2012-11-12 |
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EXECUTIVE SUMMARY

The Range Rover Evoque is a luxury compact SUV and was released in 2011. The car is a smaller and lighter alternative to the other products in the Land Rover product portfolio which is more fuel efficient (JaguarLandRover, 2011). Land Rover’s market share currently sits under 20% however with the release of the Evoque it is expected to increase (Telegraph, 2011). With the proposed marketing plan, the price of the car is very flexible, ranging from £25 000 to £45 000, attracting a wide variety of customers from different market segments and gaining advantage over competitors at different ends of the SUV market such as Volkswagen, Mercedes and Audi. Customers can change their product in its appearance and performance to fit their needs. The car will be heavily promoted through collaboration with the music industry on television shows such as ‘The X Factor’ in order to gain high profile attention and a premium status by being awarded to the winning contestant of the competition. This also gives the product an opportunity to appeal to customers in diverse sectors of the market watching the show. Men’s style and car magazines will also be targeted in order to gain a good relationship with potential consumers and improve Range Rover’s brand image. The car’s improved fuel efficiency will attract consumers who are conscious about environmental sustainability and improve Range Rover’s brand image. Improved fuel efficiency also satisfies customers as they feel they are getting better value. Traditionally the buyers of Land Rover and Range Rover cars have been men (eHow.com, 2011), however the Range Rover Evoque’s unique size and shape means it appeals to more women. Expanding their market to women gives Land Rover bigger potential to grow. The following marketing plan will therefore not only expand Land Rover’s customer base, it will increase the market share of Land Rover and assist them in becoming the leading manufacturer of SUVs

CONTENTS PAGE

1.0 Introduction……………………………………………………………………………………………………………………3

2.0 Mission statement……………………………………………………………………………………………………………

3. Background of the venture……………………………………………………………………………….................

• 3.1 PESTEL analysis………………………………………………………………………………………………………

• 3.2 SWOT analysis…………………………………………………………………………………………...............

4.0 Market research……………………………………………………………………………………………………………….

5.0 Target markets………………………………………………………………………………………………………………….

6.0 Choice of marketing strategy……………………………………………………………………………………………

• 6.1 Business objectives………………………………………………………………………………………………..

7.0 Positioning of the venture………………………………………………………………………………………………..

8.0 Marketing mix…………………………………………………………………………………………………………………..

• 8.1 Product plan………………………………………………………………………………………………………….

• 8.2 Promotional plan……………………………………………………………………………………………………

• 8.3 Pricing plan…………………………………………………………………………………………………………….

• 8.4 Distribution plan………………………………………………………………………………………………......

9.0 Implementation and control…………………………………………………………………………………………….

10.0 Conclusion………………………………………………………………………………………………………………………

11.0 Reference list………………………………………………………………………………………………………………….

12.0 Appendices……………………………………………………………………………………………………………………

• 12.1 Appendix A “Range Rover Evoque Pricing Policy”………………………………………………

• 12.2 Appendix B „Minutes”……………………………………………………………………………………………………

INTRODUCTION

Land Rover manufactured the first Range Rover in the 1960s, the idea being to create a car which combined the strengths of Rover’s on road saloon and the off-road Land Rover (Range Rover, 2012). This was completely unique at the time and the car has succeeded as one of the top premium leisure vehicles today. Following the first Range Rover, now known as the ‘Classic’, there have been two more generations of the car; the P38a released in 1994 and the current L322 model released in 2001. In 2005 they added another vehicle onto the brand’s product line: the Range Rover Sport. Following its success, the Sport model became Land Rover’s best-selling product in 2007 (Range Rover, 2012). The Range Rover Evoque was unveiled in 2010 and released in 2011. This is the third model on the brand’s product line and was designed to be smaller in size and lighter than the other Range Rover cars as well as having lower fuel consumption, in line with the brands commitment to environmental sustainability (JaguarLandRover, 2011). This challenged presumptions of an ordinary Range Rover’s appearance without altering the qualities which made it so successful (Sharpe, 2012).

MISSION STATEMENT

"Range Rover’s mission is to deliver the highest quality of premium SUV cars worldwide with an ambition to satisfy a diverse range of customers. Land Rover strives to become the leading manufacturer for off-road cars with a dedication towards environmental sustainability."

BACKGROUND OF THE VENTURE
This will look at the overall market trends in relation to the external factors, such as economic factors, that will affect the performance and success of the marketing plan for the Range Rover Evoque. Some of the current market trends in the car industry include smooth driving so the driver feels comfortable and to be able to drive off- road and in city centres. Also, be environmentally friendly due to climate changes etc. but to have a car with great style and design that has great value for money.

PESTEL Analysis

• Political And Legal

“Governments have a great influence on the character of the general business environment through their policies and the resultant legislation.” (Brassington and Pettit, 2006) For this reason the Range Rover Evoque may have problems with Government taxation on the vehicles emissions. “Car vehicle tax rates are based on either engine size or fuel type and CO2 emissions” (GOV.UK, 2012) and with “superior performance with Range Rover's lowest CO2 emissions to date.”(LAND ROVER, 2012) allows the Range Rover Evoque to be more efficient for customers that will have to pay road tax as the car produces lower CO2 emissions than previous Range Rover vehicles.

• Economic

“The effects of the economic and competitive environment are felt by organisations and consumers alike, and it has a profound effect on their behaviour” (Brassington and Pettit, 2006). Therefore, Range Rover Evoque will have to ensure that the prices of the vehicles fit according the current economic climate. “The preliminary estimate of GDP shows that the UK economy grew by 1 per cent between the second and third quarters of 2012, following three successive quarters of contraction.”(NATIONAL STATISTICS, 2012).This means that the UK economy is slowly getting better and therefore Range Rover Evoque can have their prices put to a higher standard. Although, the price will still have to be carefully considered to make sure customers get value for money.

• Sociocultural

“These factors involve much more qualitative assessment, can be much harder to measure and interpret than the hard facts of demographics and may be subject to unpredictable change.” (Brassington and Pettitt, 2006) Range Rover Evoque must look at the sociocultural factors in order to make sure the promotion and price etc. is going towards the right market segmentation. It is true to say that cars have become a necessity for the majority of the population as means of transport, e.g. to get to and from workplaces. Therefore, it is important that the Range Rover Evoque can come across as a necessity but also an affordable luxury.

• Technological

“In an increasingly dynamic world, where the creation, launch and maintenance of a new product are more expensive and difficult than ever, no organisation can afford to ignore the technological environment and its trends.”(Brassington and Pettit, 2006) The Range Rover Evoque should have a range of different features in order to ensure customer satisfaction as gadgets are becoming more popular within cars. This can range from special technological features on the car, such as a satnav, or having high tech machines that can produce the cars to top quality.

• Environmental

“Environmental issues have been of major concern in recent years, and this area has caused consumers to think more critically about the origins, content and manufacturing processes of the products they buy.” (Brassington and Pettit, 2006) Consumers will now look for the new Range Rover Evoque to be environmentally friendly, making it extremely important for the manufacturer to create features on the car that will appeal to consumers concerned with the environment. Hence, why the new Range Rover Evoque now runs on less CO2 emissions than ever before, making it more efficient for the environment.

SWOT Analysis

• Strengths

“There is even an eD4 2WD Diesel engine to further help optimise fuel economy” (LAND ROVER, 2012) making the new Range Rover Evoque stronger as the environmentally features and great designs will appeal it to a wide range of consumers, this will make it more successful as more consumers will be attracted to the car for its fuel economy as this saves money and the environment.

• Weaknesses

The Evoque will be priced at around £30,000(WHICH, 2012). Since, the Evoque is more based on style and design with many features it will be more expensive. However, the vehicle is still small compared to other Range Rover vehicles which could make consumers think it is too expensive for what you get. The vehicle has to be priced in order to compete with other cars and meet customer satisfaction.

• Opportunities

Bringing celebrities that have a good sense of style, such as Victoria Beckham, on board to speak about the Evoque will improve the image of the vehicle and will spark an interest in more fashion- conscious consumers (WHICH, 2012). This now gives the new Range Rover Evoque a new market segment to work towards.

• Threats

The Range Rover Evoque faces some tough competition when it gets realised as there are other famous motor brands such as Audi and BMW. Both have great reputations and high standard of quality along with style and design, making the new Audi Q3 and BMWX1 tough competition and threat for the new Range Rover Evoque. (CARSCOOP, 2012)

MARKET RESEARCH

In order to produce a vehicle which will reach success in the current market, a closer look at market trends is essential. Whatcar.com produced a Car of the Year 2010 report taking into account professional testing and consumer reviews. Noticeable trends are apparent through these such as expectations of smooth driving ability, off-road and in an urban environment and an increasing focus on image. Although Land Rover Discovery placed second it is beaten by Hyundai Santa Fe which is rated highly by consumers for its sleek appearance and driving capabilities and on the market at a lower price is rated as better value for money (Whatcar, 2010). These trends in the market are backed up by BBC Top Gear’s research into SUVs currently on the market, which again take special interest in appearance and comfort combined with performance on the road. A final noticeable trend again picked up from SUV consumer reviews is the environmental efficiency of the models, becoming ever important as awareness of environmental issues and climate change increases (Top Gear, 2012).

Land Rover face a tough market as there is wide SUV competition from most car manufacturers such as Hyundai, Lexus and the popular Porsche Cayenne in the UK and especially in USA where the SUV market is huge and luxury SUVs such as the Escalade and Cadillac are highly regarded. This means that the market share of Land Rover 2010 sits at under 20% but as The Telegraph states has experienced a growth in sales, which could again see an increase on launch of Evoque (Telegraph, 2011).

In order to successfully market the Evoque, Land Rover have taken into account all of these trends and in order to successfully meet the needs of the customer, and have put extensive focus into producing a vehicle that has a sleek appearance in order to also reach out to both male and female buyers, and ensuring that the vehicle is strong on the roads but with greater fuel efficiency levels than its competitors, thusly giving the consumers excellent value for money.

TARGET MARKETS

Traditionally the Land Rover target market has been towards the male, upper class, farmer(eHow.com, 2012) customers to look around their estates due to the appearance of the different ranges and also due to the price and according to jaguarlandrover.com the Defender is “recognised as a leading vehicle in the segment targeting extreme all-terrain abilities” . This meant that the market share that Land Rover could potentially own was restricted to only a small amount and so this is why there has been a large increase in the amount of models being released, to try and increase their target market to as many customers as they can. In 2011 the Range Rover Evoque was released, this model was designed to be different than all other models, it has decreased in size and has more urban look to it which has gained the interest of female customers and therefore has increased its potential to increase market share in the car market.

CHOICE OF MARKETING STRATEGY

The firm will ascertain the needs and wants of customers and compete on differentiation (the price flexibility via the product, good quality and successful brand management). According to the research, Land Rover was beaten by Hyundai Santa Fe which is rated highly by consumers for its sleek appearance and driving capabilities and on the market at a lower price is rated as better value for money (Whatcar, 2010). Although many of Land Rover’s customers look for good-quality cars at a low price, the company has also the customers who are not price-sensitive and have very high requirements. That is why, the company will use the mix of penetration and prestige pricing to reach the wide range of customers who are looking for a good value, appearance, comfort, greater fuel efficiency levels but also appropriate price. Land Rover will use penetration pricing for its Pure version of the car, because the company wants to attract new customers-aim its new product at specific segment in the market which is the middle class customers. Land Rover will use the prestige pricing strategy for its Prestige and Dynamic version of the car, because it wants to keep its luxury feel to its cars and it wants their customers who have bought the cars to feel they have the privilege to drive the car and they are in an elite group.

Business Objectives

• increasing a market share and becoming a pioneering car manufacturer in the United Kingdom;

• creating a brand name and a unique, luxury SUV;

• building the new image of the firm;

• preparing for the relaunch of the car in other countries;

• improving and developing Land Rover brand image through a strong cooperation with music industry;

• promoting Range Rover Evouque as the car that most effectively meets customer needs;

• approaching a range of customers.

POSITIONING OF THE VENTURE

The price flexibility via the product can make it reach more customers, as it is both affordable and luxurious in customer perception. The variety of prices is one of the biggest advantages of Range Rover Evoque which makes it stand out from the crowd. For example, customers looking for expensive and luxurious cars would choose the ones that cost at least £40,000 (Dynamic theme). Those looking for affordable and brand-new cars would prefer the ones that cost approximately £35,000 (Prestige). Customers looking for cheap and good-quality cars would be interested in cars that do not cost more than £30,000 (Pure). Range Rover Evoque meets the requirements of a range of customers unlike some of its biggest rivals: Mercedes-Benz M-class, Audi Q3, and Volkswagen Tiquan. Refer to Appendix A. Overall, all customers would consider the car to be both affordable and luxurious. The potential customers would view Range Rover Evoque as an elegant, modern car with a fashionable design that attracts the most demanding customers. On the other hand, the Pure version of Range Rover Evoque would seem affordable to many customers with middle class salary.

MARKETING MIX

Product Plan

Range Rover Evoque can satisfy the needs of the most fussy customers, because it "uses the latest materials and technology to help make it the most efficient Land Rover vehicle ever" (Land Rover, n.d.). Fashionable design of the car is one of its biggest advantages, as it makes the product extremely attractive to prospective consumers. For instance, the interior of the car "is superbly smart and effortlessly elegant" (Amir Iliafar, 2012).

Customers can chose one of 11 exterior colours available: 10 metallic colours and 1 solid. Buyers may choose between a range of contrast colour roof options or a panoramic sunroof to further personalise its Range Rover Evoque.

"Range Rover Evoque’s interior features a suite of the latest technologies to provide driver and passengers with the most comfortable, most enjoyable experience possible" (Land Rover, n.d.). Therefore each version of Range Rover Evoque includes Climate Control – Automatic with Air Filtration, Interior mood lighting, Oxford Leather Steering Wheel and the Covered Centre Console. The 2.2-litre 150hp eD4 engine of Range Rover is one of its greatest strengths, which differs the car from the previous models of Land Rover, as it was engineered to deliver quieter and more refined performance. It also contributes to Range Rover’s best fuel economy figures and CO₂ emissions of sub 130 g/km for the 2WD Coupé" (Land Rover, n.d.).

Promotional Plan

"The car that inspires the world"-new advertising slogan

Range Rover Evoque will establish a strategy of promotion through TV music competitions (X-Factor or Pop Idol). Since the company will support the music competition, music will be a key element of building a positive image of the company. The car will be a reward for a winner of the show. The winner will be asked to use the car in photoshots and talk about its award during at least five interviews. There will be another car award for one of the voters, as it will appeal directly to the viewers of the show. Obviously, as a major sponsor of the show, Range Rover will be able to promote its new car for free during the show.

Range Rover Evoque will be promoted through press advertising in men’s style, fashion, car magazines. Land Rover as a sponsor of photo shoots will have its new car used in the photo shoots of celebrities, singers and actors. It will be more effective than traditional press advertising.

Internet promotion will involve creating Range Rover Evouque personal website where potential buyers will be able to use a special toll to design their own car and choose features that best suit their needs. It can build a kind of emotional connection between the brand and its customers.

A test drive will help customers decide whether the car suit their needs but, most importantly, build a positive relationships with potential buyers. They will be able to request this free trial on the previously mentioned company's website 24/7/365.

Other forms of promotions that may be used:

-direct calls to previous buyers to tell them about a company's new car;

-sending newsletters via email and letters with good-quality information materials to customers who subscribe to Range Rover Evouque personal website.

Pricing Plan

It is stated on Land Rover's website that "customers can chose one of three design themes: Pure, Prestige, Dynamic" (Land Rover, n.d). Pure is the cheapest version of the car which costs £29,195, 30,995 and £32,695. Range Rover Evoque is quite more expensive and customers must spend at least £3 800 more to buy it, as it is sold for £36,495, £38,295 and £39,995. For the most expensive version of the car buyers have to pay £38,795 or £40,495. All prices depand on the specification of engine (for example: power, torque, maximum speed or CO2 emissions).

The company's new marketing plan will change this pricing policy to reach more customers. Refer to Appendix A. According to new pricing policy the cheapest version of Range Rover Evoque can be bought for £25,000 while the most expensive version of Range Rover Evoque will cost £45,000. 20,000 pound difference of the price of the same products is something uncommon. However, Range Rover Evoque as a pioneer decided to revolutionize the market and, therefore, created one car that can compete with its "cheap" (Volkswagen Tiquan, Audi Q3), affordable (BMW X3, Audi Q5) and very expensive (Mercedes-Benz M-Class) rivals on the market place.

Distribution Plan

Customers would be able to buy a product on the website of the company (Land Rover). They will have a chance to choose a car's design theme and specification of engine. Customers may also order the car by calling the company's call centre. As stated in the company's annual report "Land Rover products in 174 markets, through a global network of 18 national sales companies (‘‘NSCs’’), 83 importers, 61 export partners and 2,241 franchise sales dealers" (Jaguar Land Rover PLC, 2012). As Land Rover has distribution headquarters in a number of cities worldwide, customers will have their product available in their nearest/local sales centre (can be easily found on the website of Land Rover) within 2 days from the date of internet/phone order. Those who prefer face to face transactions can come to one of Land Rover branches or local dealers and talk to one of customer advisors.

IMPLEMENTATION AND CONTROL

The marketing mix will be implemented by groups of marketing experts responsible for advertising through cooperation with music industry, TV and newspapers (Media team), Internet promotion and public relations (Internet and PR team), cooperation with intermediaries/sales centres (distribution team). There will be additional team controlling the product’s performance on the market (customer satisfaction, pricing policy, trends, sales records). This team will monitor sales every week. If these figures start decreasing, the company might change the pricing policy (for example, seasonal price reductions).

The product relaunch will take place during a charity concert (sponsored by Land Rover and broadcasted by the BBC) at Wembley Arena on Christmas Day, 25 December 2012. All funds raised during the gig will be given to the poorest hospital in the United Kingdom.

CONCLUSION

Land Rover faces a tough market, as there is wide SUV competition from most car manufacturers, because the market is huge and luxury SUVs such as the Escalade and Cadillac are highly regarded. Therefore, relaunch of Range Rover Evoque is a key element of building the new image of the firm that must stand out from the crowd to increase its profits. Thanks to trust-based marketing, Land Rover will be perceived as a company that not only creates the good-quality cars, but also supports noble initiatives. Since Land Rover will build strong consumer trust and create a more loyal customer base, buying the company’s new car will appear to be the best choice for the prospective consumer.

REFERENCE LIST

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• RANGE ROVER 40th ANNIVERSARY | Land Rover UK. 2012. RANGE ROVER 40th ANNIVERSARY | Land Rover UK. [ONLINE] Available at: http://www.landrover.com/gb/en/lr/about-land-rover/heritage/range-rover-40-anniversary/. [Accessed 04 November 2012].

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