Land Rover NA

Wei Wei, Daniel Terebelo

October 15, 2015

1. Describe the brand associations for:

1a.) The Land Rover vehicle concept was to provide a rugged, versatile vehicle. It came to be
associated with vehicles, able to do everything.i It was intended to be somewhat Spartan and of
a unique appearance. They became to be an integral part of agrarian/industrial countryside work.
The capable nature of the Land Rover vehicle came to be associated with individualism,
authenticity, freedom and adventure.ii
1b.) The Range Rover was an upscale, yet still capable, version of the Land Rover. It was
associated with an English sense of luxury. It was not to be associated with rural agrarianism,
but more with countryside gentlemen, where luxury and utility had lived in harmony for
centuries.
1c.) The Land Rover Discovery was developed to compete for buyers who wished to own the
vehicle as a personal image statement or to fulfill symbolic needsiii. It was also intended to
target customers whose purchase was mostly influenced by functional needsiv. The vehicle was
targeted to families who sought comfort in the safety of four-wheel-drive and who sought more
capable luxury.
1d.) The Land Rover umbrella brand carried a long and enduring history of capable and durable
vehicles. They could be seen on safaris, off-roading, deep in the jungle and at countryside
estates. The notion that these vehicles were pervasive across the British Empire evokes a sense
of individualism and exploration. These associations were as rich as they are subtle and likely to
be meaningful to more informed SUV customers and off-road enthusiasts. As such, any vehicle
emblazoned with the Land Rover nameplate was likely to be thought of as adventurous, refined
and somewhat superior; similar to colonial Britain. The Land Rover brand is a well-recognized
broad corporate brand not a single model. Consumers can associate supreme quality to any new
model or even accessories under the Land Rover brand.
2a.) Why do people buy SUVs?

Land Rover NA

Wei Wei, Daniel Terebelo

October 15, 2015

Before 1990, purchase of an SUV represented buyers status and taste. It is a symbol of wealth
and prestige. After 1990, SUV purchase was driven by consumers increased pragmatism such as
driving safety and their expectations of both real and fantastical experiences with 4WD vehicles.
SUVs provide good pulling capacity and plenty of room; they have the cargo capacity of a small
truck and can be used as a minivan but much better looking. Some experts believe an SUV is as
stylish as traditional luxury cars and can thus be an alternative to luxury cars in the future. SUVs
also provide off-roading capabilities which fit peoples fantastical needs. It makes buyers feel
good about themselves by just imagining their SUV has the capability to go off road or for a run
in heavy snow while the other vehicles cannot.
2b.) Who is the typical SUV target consumer?
The first segment is affluent stylish young adults. Driving an SUV proves that they possess not
only their own accomplishments but also they are different from the others.
The second segment is family consumers who are more practical. They dont care too much about
the image statement of an SUV but focus on the functional, safety and practical side. Older
conservative traditionalists who think an SUV is an alternative to traditional luxury cars are also
part of this segment.
From Exhibit 19, Maritz Truck Buyers Study, 1994; we have below observations: More males
are likely to buy SUV (66% male SUV buyers VS 49% male population). More married without
kid (50% VS 28% in population); More people in their 35-49 are likely to buy SUV (43% VS
29% in population). More higher education (80% college or above VS 45% in population) and
More professional/managerial (38% VS 13% in population) are likely to buy SUV. SUV buyers
also have much higher income. (63K VS 31K US average)
3. Differentiation and Positioning:
3a.) What are the differences among competitive SUV offerings
Product Form Competitors included higher-end models of Jeep and Ford SUVs as well
as soon to be introduced models by Lexus and Mercedes. They provide a wide range of price and
brand awareness. All of those competitive SUV brands provide a lot of variety in term of quality,

Land Rover NA

Wei Wei, Daniel Terebelo

October 15, 2015

safety, performance, off-road capability, aesthetics, comfort, economics and status/images.

Category Competitors include similar sized SUVs such as the lower model Ford
Explorer, Jeep Cherokee, Jeep Grand Cherokee and Chevrolet Blazer.

Generic Competitors

could be said to include all SUVs, including the Ford Escape and Jeep Wrangler.
Budget Competitors would include all other vehicles that could also meet some or all of
Land-Rovers competitive characteristics. This category would include other luxury family
vehicles, and larger crew-cab pick-up trucks, which would be capable of providing off-road
ability while offering seating for up to six passengers.
3b.) What positioning strategy would you recommend for Land Rover Discovery?
We believe that critical to the success to the Land Rover positioning in North America is
continued emphasis on Land Rovers perception as an individualistic, extremely safe and capable
vehicle. According to the Exhibit 8, Quality and Safety are the most important factors to select
SUV among ages, genders or lifestyle; it should be targeted to younger, professional, welleducated individuals who are looking for either a highly capable or adequately sized family
vehicle. The true off-road capabilities of the vehicle, are not likely to be fully utilized by most
customers, however, they are very evocative for the target customers, and offer a sense that
purchase of a Land Rover vehicle is as much an aspirational statement as it is a functional
decision. We have seen time and again that the ability of brands to tap into a customers
aspirations by means of brand associations, and even brand history, serve as a means to
differentiate and establish a loyal class of customers. The brand should not be diluted with
down-market products or models. Unlike, GM where the Pontiac buyer became a Buick buyer,
and aspired to become a Cadillac owner, Land Rovers should simply offer 2-3 models, all in the
higher-end markets and that is where they should maintain their brand. One characteristic of the
American market, however, is that many companies have done well without needing to segment
brands. With both the Range Rover and Land Rover offerings considered high-end import
vehicles, both vehicles could simply be marketed under either the Range Rover or Land Rover
brands. The shared history of the vehicles will not be lost on the educated consumer. To the
contrary, Range Rovers luxury and Land Rovers capabilities are intended to complement each
other. They could therefore easily live under one umbrella manufacturer label within the North
American market.

i Land Rover North America, Inc. Harvard Business Review, pp 2, 1995

ii Land Rover North America, Inc. Harvard Business Review, pp 3, 1995
iii Tulin Erdem, New York University, Customer Behavior and Analysis, pp 9, 2015
iv Tulin Erdem, New York University, Customer Behavior and Analysis, pp 9, 2015