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Jaguar Land Rover (JLR) Marketing Report

Paper Type: Free Essay Subject: Marketing
Wordcount: 5476 words Published: 10th Apr 2018

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1. Jaguar Land Rover company profile

Jaguar Land Rover Cars (JLR), founded in 1922, is one of the world’s premier manufacturers of luxury saloons and sports cars. It is a business built around two great British car brands with exceptional design and engineering capabilities. Their manufacturing facilities are in the UK and currently employ over 16,000 people, predominantly in the UK (Tata Company Profile, 2009). In June 2008 India’s Tata Motors bought JLR from Ford Motors for £1.15bn (BBC, 2008). The JLR business acts as a major wealth generator for the UK, with 78 per cent of Land Rovers exported to 169 countries and 70 per cent of Jaguars exported to 63 countries. Sales to customers are conducted principally through franchised dealers and importers (Tata company profile, 2009). However, since the acquisition Land Rover sales have fallen nearly 23 per cent in 2009, down to 144,133. Jaguar was also down by nearly 20 per cent to around 52,500 (Birmingham Post, 2010).

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2. Recent developments:

Jaguar Land Rover has reported a net profit of 55 million the financial year 2009. This has been possible because of the new models launched by the company in the year 2009. This includes the All New Jaguar XJ, which has reported impressive sales figures for the company. JLR has also secured various financial loans to continue its search for new models and new technologies. This includes the GBP 340 million loan from the European investment bank and also the GBP 175 million loan from the state bank of India (FT.com). They plan to employ the money in the production of Land Rover LRX concept, which is the smallest Land Rover to be launched. JLR is increasing its dependence on the emerging markets as it plans to increase its sourcing from the Indian market and also plans to moves it production to China (Coventry Telegraph.net).

3. Analysis:

Competitor analysis Land Rover:


Land Rover


Daimler Benz



Land Rover – Presence can be seen in SUV as well as in sport cars.

Hummer – Has presence only in the SUV segment.

Damiler benz – A traditional player in all segments of car, suv and sports car manufacturing.

Toyota – Presence in almost all the segments of cars and trucks.


Land Rover – Has presence of service networks all over the globe according to its product line.

Hummer – Limited presence in the world.

Daimler Benz – A dealer network all over the globe

Toyota – An extensive dealer service available with the large product line offering.

Low Cost Luxury cars (volume determinant)

Land Rover – No presence in this segment and low presence in the emerging markets.

Hummer – Reasonable price, no presence in the emerging markets.

Daimler benz – A strong presence in the low cost luxury market in all the emerging countries.

Toyota – A strong presence in the luxury market in all emerging markets.

Retail Advantage

Land Rover – Has a dealer in all parts of the world.

Hummer – Low presence in emerging markets and in Africa.

Daimler Benz – Has the biggest network of dealers in comparison to the competitors.

Toyota – Has a dealer authorisation in all parts of the world.

Technological Advantage

Land Rover – Has an growth in R&D spending of about 11.6%in 2009.

Hummer – Development of new cars H4 and H3T.

Daimler benz – Plans to increase its R&D spend to 12.6 billion euros over the next three years.

Toyota – Ranked number one company in R&D spending for all the industries.

Supply Chain

Land Rover – Has 1 primary manufacturing plant at Solihull, near Birmingham.

Hummer – Has 6 plants worldwide including assembly plants. With no presence in the emerging markets.

Daimler benz – Has plants spread out in all parts of the world including factories in emerging countries.

Toyota – Toyota conducts its business worldwide with 64 overseas manufacturing companies in 28 countries and regions.

Recent Performance

Land Rover – They turned into profit in December quarter with net profit of 4.17 billion rupees

Hummer – Sales in the first three months of 2010 fell down by 72% to 855 vehicles.

Daimler benz – Mercedes has a 25.3% increase.

Toyota – A drop of 1.12 million units compared to the previous year.

Local Collaborations

Land Rover – Has an advantage in the Indian market with the parent company TATA Motors in the country.

Hummer – None.

Daimler Benz – None.

Toyota – Has presence in all developed and emerging markets. Has factories in almost all parts of the world.

Competitor analysis Jaguar:




Daimler Benz


Product line advantage

Jaguar – Has a range of luxury and sport cars. Jaguar cars have lack of volume as there is a lower geographical spread for its models.

Porsche – Has presence in the sports car segment as well as the high end SUV segment.

Daimler Benz – A traditional player in all segments of car, suv and sports car manufacturing.

BMW – A presence in every segment from low cost luxury market to high class luxury cars and suv’s.

Service advantage

Jaguar – Lacks service advantage due to limited presence all over the globe.

Porsche – In accordance with the limited product line it has a small service network.

Daimler Benz – A dealer network all over the globe.

BMW – A widespread dealer service network.

Low cost luxury cars (volume determinant)

Jaguar – No presence in this segment as well as low presence in the emerging markets.

Porsche – No presence in this segment. But is building its presence in the high-end market of emerging countries.

Daimler Benz – A strong presence in the low cost luxury market in all the emerging countries.

BMW – Maximum market share in this segment in emerging market behind Mercedes Benz.

Retail advantage

Jaguar – Has a limited dealer network with even a few being company owned.

Porsche – Has just 2 dealers in India as an example.

Daimler Benz – Has the biggest network of dealers in comparison to the competitors.

BMW – Has authorized dealers all round the globe.

Technological advantage

Jaguar – Has the highest R&D spending for its segment of automobile companies.

Porsche – None

Daimler Benz – Plans to double its R&D spending this year to 1.4 billion dollars.

BMW – Has technology development and R&D centre in emerging markets of China and India.

Supply chain

Jaguar – Has only 3 factories in the UK. So a limited advantage of local production in the developed and emerging markets.

Porsche – Has only one production centre in Germany.

Daimler Benz – None.

BMW – Has 24 factories in 13 countries including assembly factories in emerging countries.

Recent performance

Jaguar has witnessed a !3.6% drop in sales in 2010.

Porsche has a 6 % increase in 2010.

Daimler Benz has a 25.3% increase.

BMW also has 8.4% increase.

Local collaborations

Jaguar – Has advantage in the market of India with the major presence of its parent company TATA motors in the country.

Porsche – None

Daimler Benz – None

BMW – Has significant presence in all emerging and developed markets. Has factories in emerging markets.

JLR PESTEL analysis (2010):

A more recent PESTEL and SWOT Analysis of JLR (2018) is available here >

Political factors:

After securing a loan from the European investment bank TATA has now taken a U-turn over its demand for loan from the UK government (Guardian.co.uk).

Social factors:

Employing large number of workforce: Jaguar Land Rover employs 15,000 people, surrounded within the UK including approximately 3,500 engineers at 2 product development centers in Coventry and Gaydon.

To improve the production facilities:

Manufacturing competence has improved at Jaguar Land Rover’s Halewood plant with a pilot training programme that concentrated on developing employee skills and problem solving. A programme was developed in partnership with the National Skills

Academy for Manufacturing (the Skills Academy) and training provider

BUCAM, to combine traditional problem-solving with basic skills.( Clair Churchard)

Technological factors:

Jaguar Land Rover is known for its technologically superior cars. They also invented and commercialized the concept of aluminium body in their cars.

Economic factors:

Environmental Factors:

JLR is recently searching on Wallenius Wilhelmsen’s Orcelle project for a lightweight environmentally sound ship that can carry 10,000 cars by using solar, wave and wind power which does not discharge any emissions into the environment or the ocean.

Numbers of environmental initiatives are taken to improve the efficiency and reduce the CO2 emissions of Jaguar products. They use lightweight and recyclable material extensively and also highly efficient diesel engines. Jaguar Land rover has achieved full environment product certification for its model XJ in 2009.(Jaguar Website)

Legal factors:

Jaguar Land Rover is spending £800m over five years to develop technologies designed particularly at dropping tailpipe CO2 emissions designed to meet the 25% improvement target set by the European Union which is well ahead of the industry average.(  Sam Abuelsamid )

Land Rover’s LRX Concept is a thinly veiled preview of the new small crossover the company is planning for launch around 2010. The unibody plan was created to prepare buyers for Land Rover’s plans to introduce a bevy of smaller vehicles off a common platform in order to improve the brand’s fuel economy and CO^ output ahead of new EU legislation.

Bowman’s strategic clock:


Jaguar is a strong innovation based organization, which is evident from the innovations it had come up with recently. This includes the usage of only 2 product lines instead of 6 it used previously.

The analysis of its product lines shows that it desperately needs differentiation, which can be achieved through technological innovation and also through product line innovation.

JLR has huge spending on R&D but still has low R&D spending in compared to other competitors like BMW, so innovation and differentiation in its product line is limited along with lack of cost savings is its production activities.

Jaguar has low presence in the emerging markets compared to its competitors, which is an opportunity to launch attractively priced product.

Land Rover:

The brand Land Rover has a wider presence in the developing markets compared to Jaguar. Land Rover already has products the Freelander and Discovery targeted towards the medium end consumers.

Land Rover to meet the EU legislation norms as well as the need of emerging markets has plans to come up with a range of smaller SUV’s in 2011.


Barriers to entry:

Economies of scale: As our new launch of Jaguar XH requires high capital investment for the manufacturing of our new car which is environmental friendly and targeting a specific segment of the market .So the risk of new entrant is high as other big players might try to imitate the same concept.

Knowledge and Technology: The ideas and knowledge that provides competitive advantage over others is its unique hydrogen-based technology which creates barrier to entry.

Product Differentiation: As the new product has to be different and accepted by the customers. So, we are providing our customers with the expected attributes of premium luxury cars.

Access to distribution channels: A well developed distribution is must for its success when a new product is launched in the market. So we will take advantage of well established TATA Motors channels across the world.


Swithching cost: As it is first of its kind, so they have no options to switch over.

Number of customers: The bargaining power of buyer is low as there we have mentioned in our switching cost that there are barriers to new entrants.There is no forward integration of buyers.

Brand Image: the Jaguar Land Rover already has an established Brand Image as a manufacturer of premium luxury cars.


Bargaining power of suppliers: Bargaining Powers of suppliers is less

Threat of Substitutes

PRICE BRAND:the threat that constumer will switch to a substitute product is ver low.

BUYERS WILLINGNESS: The willingness of the customers to buy this product will be because of the higher efficiencyand good quality of an eco-friendly premium luxury car.

Competitive rivalry:

Number and diversity of competitors: This means the amount of competition in the car industry which appears to be in the luxury cars such as BMW AND Mercedes in Europe, Lincoln and Cadillac in U.S.

Exit Barriers: If the new product fails in the market then it is not easy for the company to exit because of the involvement of huge capital investments.

Product quality:To maintain its new generation premium luxury car the company has to make manufacturing improvements continuously to furher keep uplift its quality.

Jaguar land Rover Financial Performance:

JLR has shown a substantial increase in the last couple of quarters. Due to the seasonality change in the JLR’s business cycle, management has gained confidence in continuing its positive financial performance going ahead.

JLR turned a Net Profit of about £55mn in the last quarter of 2009. Jaguar Land Rovers combined sales volume have increased to about 28% QoQ to 56700 units which was about 44300 units for the 2nd quarter of 2010. The revenue of TATA motors grew by 47 percent to 26,774 crore. The stock market has given a thumbs up to TATA Motors as the stock moved up by 6.33 percent in Feb,2010. The retained earnings for JLR for the third quarter for 2010 has been £55mm.

TATA Motors Limited’s Net Debt stands at about Rs22,745 cr. Of this the aggregate long term debt is around Rs 16,302cr of which 50% has to be repaid over the next few years. The Net Debt to Equity ratio is 4.1, which is believed to be very high.(Angel Broking)

Business Strategy:

From the competitor analysis it is very much evident that the Land Rover brand for JLR is doing much better than the brand Jaguar. The sales

After the takeover the head office decisions for JLR is now made in India. India also is a country, which provides cheap labor, lower cost of production and cheap logistics in comparison to markets like UK and USA. The Indian government also has is making constant efforts to encourage FDI in production. May other automobile giants like BMW and Volkswagen and Renault have also made major investments in the manufacturing sector in the previous couple of years. Chennai is now becoming the hub for automobile manufacturing in India.

Jaguar has 3 factories in the UK, which have been reporting heavy looses in the past couple of years. So considering the above mentioned conditions, our business strategy is as follows:

To establish an assembly plant in India taking advantage of TATA’ established manufacturing plant across India.

To fund this assembly plant through the Loan secured from the State Bank of India.

To supply cars to the Indian market, Sub continent market and the South-east Asian market through this plant.

There will be drastic fall in the prices of all models with this

The materials needed for our innovative product ‘The Jaguar XH’ will be available cheaper in an emerging market like India.

This includes the waste of wheat crop needed for the plastic and interiors of the car.

We also propose Jaguar Land Rover to establish their next R&D centre in Mumbai, India along with the R&D centre of TATA motors. This R&D centre will be the main hub for innovating the proposed Jaguar XH.

The upward trend in the financial analysis stets that the financial condition of JLR is improving. And there are increasing cash reserves for investment.

The loans received by JLR amount to GBP 515 million which will provide us the resources required for implementing our innovation strategy.

According to our analysis above we recommend a business strategy that states that Jaguar Land Rover needs to catch up with its competitors and take advantage of its parent company presence in India. We have also laid a base for launching our innovation strategy by establishing R&D and marketing hub in India. The budget allotment for these investments will be made in latter sections.

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Innovation Strategy:

New product development:

Product innovation:

According to the analysis conducted above Jaguar has the back up of financial and technology resources to innovate and make its way back into the premium selling business. Our idea of innovation is to come up with a commercially applicable technology in the highly competitive world automobile industry. Hydrogen cars are making headway in the R&D centre of many automobile giants. Our innovation is to come up with a high-end environmental friendly car, which can be commercially viable technology for high-end buyers to spend. The idea generated by our group is to come up with a product, which not only has a hydrogen engine but all the other components used in the car are environment friendly. This includes the seats, tyres, aluminum body, reduction in pollutants etc. Unlike other manufacturers we recommend to launch a high end product. The reason for this is to target our new technology to customers that are willing to pay the price for a better, faster and an environmental friendly car.

Product description:

We have named our product as the Jaguar XH (H for hyrogen). The hydrogen technology is chosen for 3 reasons first being the fact the new innovative technology of hydrogen cars, which is gaining momentum in the automobile industry. Secondly, This technology can give Jaguar and TATA the competitive advantage they need to gain back their lost brand awareness. And lastly, the awareness of the overall environmental impact in the automobile industry has been growing as European and U.S. regulations, e.g. for vehicle emission, have become more stringent.

Aluminum body:

A car’s body makes up around 25% of its total weight, so Jaguar uses aluminum wherever possible to make weight savings. And because the body is lighter, the braking and suspension components do not need to be as big, equaling more weight saving. The aluminum body developed by Jaguar helps in its cars to become lighter and faster. Aluminum technology also makes the cars safer meeting increasingly safety requirements. All the body parts including the nuts and bolts are made of aluminum reducing the car weight considerably. (Power aluminium)

Environment Friendly Paint:

Painting vehicles has in the past been one of the auto industry’s biggest environmental challenges stated by Mary Ellen Rosenberger. We are planning to develop paint; which is environment friendly. The technology will combine an advanced chemical formulation, which will be made of high-solids, solvent- borne paint. The high solids, solvent borne paint helps to produce fewer volatile organic compounds (VOC) and CO2 emissions than the water borne and current solvent-borne paints. The innovative three wet coating which, are to be applied on the vehicle, are on top of the other, without any drying time during the coats. Doing this will reduce the process in painting, which will lead to a smaller and more efficient paint shop. There are high hopes for this technology and it is estimated that doing this will help save about $7 per vehicle by cutting the time it takes to paint and will even cut back the CO2 and VOC emissions by 10 percent. Even environmentally it will cut down the greenhouse gasses by 15 percent (Auto week).

Bio Fabric seats:

Bio fabric helps in reducing co2 emissions because it is made from plants. It concerns about durability, it is not only smooth and soft to touch but also has long life. It is ideal for seats covers, door trims, floor mats and some more. It is produced in the same way as polyester materials, which is petroleum, based, so basically there is no need for the special technology. Main difference is that they take 10 to 15% less energy to make and save up to 30% in co2 emissions and co2 is emitted when the car is disposed. (Honda)

The futuristic plastic interiors:

We plan to implement environmental-friendly wheat straw-reinforced plastic in our vehicle. Its just the third-row interior storage bins made from the natural fiber-based plastic that contains 20 percent wheat straw bio-filler, this application alone reduces petroleum usage by some 20,000lbs per year, cuts CO2 emissions by 30,000lbs per year, and represents a smart, sustainable usage for wheat straw, the waste byproduct of wheat. Wheat straw-reinforced resin has many advantages over non-reinforced plastic, which is currently used by most of the auto companies. It has better dimensional integrity than a non-reinforced plastic and weighs up to 10 percent less than a plastic reinforced with talc or glass. We will consider center console bins and trays; interior air register and door trim panel components, and armrest liners to be made from the wheat straw-based plastic. We recommend the usage of such materials for the Jaguar XH. (Gizmag.com)

Eco friendly tyres:

Bridgestone ECOPIA EP150 eco-friendly tyres will be used in the car Jaguar XH

These low rolling resistance tyre combines high-level wet safety with lower fuel consumption and CO2 emissions. These tyres meet the challenging objective of combining top-class wet safety with reduced rolling resistance, leading to higher fuel efficiency and lower CO2 emissions.

These Bridgestone tyres are made of materials technology called NanoPro-TechTM combined with a new tread design. NanoPro-TechTM produces a lower rolling resistance by reducing energy loss in the top compound during rotation. The new tread design features thin rib and a connected block by which contact pressure and wet braking performance is enhanced.

ECOPIA is Bridgestone’s flagship brand that helps to increase vehicle energy efficiency and thus contributes to the prevention of global warming. This is achieved by tumbling rolling resistance and/or saving resources whilst maintaining various performances needed of tyres, especially advanced safety performance. (News Market)


Hydro chlorofluorocarbons (HCFCs) are compounds made up of hydrogen, chlorine, fluorine, and carbon atoms. HCFC’s are a substitute to CFC’s that are used as a coolant in refrigerators, aerosols, cars, etc.

Earlier CFC’s were used as a coolant and because it had classes of compounds that used to deplete the ozone layer, HCFC’s are now used as a substitute and are not as harmful as compared to CFC’s.(Science J rank)

Hydrogen technology:

The Jaguar XH is a car which is good for the environment. For the very first time, this car will be sold to the direct customer on a full scale basis and will be the most environment friendly car in the world.

Based on the same design that is currently being used by Honda FCX Clarity, the Jaguar XH will use a hydrogen tank that will pass hydrogen through a battery and produce energy which will in turn run the motor of the car. This car uses no gas of any kind and hence does not leave any harmful pollutants. Hydrogen is stored in a tank and is then passed through a fuel cell which combines hydrogen and oxygen to produce electricity. The vehicle is then propelled by an electric motor which leaves behind only clean water vapour behind hence making it a zero omission vehicle.

Source: Honda Clarity

However, as compared to petrol, hydrogen does not affect the environment in any way possible and the only emission that is released is water vapour. So even though hydrogen may be very environment friendly, it simply fails to produce as much as energy as petrol can give. In other words, the car will not run as fast as it does when petrol is being used.

There are a couple of innovative strategies that can be used in order overcome this barrier of speed and efficiency. We propose to design and make the car more aerodynamic and sleek and made of aluminium. Aluminium is used as it is lighter than steel and is strong as well.

Although the estimate cost to setup one large hydrogen fuel station would cost about $1.16 million approximately (Energy independence), we do not plan to set these up during the initial years till we see a marginal increase in our sales for jaguar XH or other companies may want to join partnership and build the hydrogen fuel stations in different parts of every city. Our proposed business strategy would be to set up a huge hydrogen fuel stations in different parts of the country based on a location strategy. For example: there would be 8-10 hydrogen fuel plants in different parts of UK. For example: London, Bristol, Manchester, Birmingham, Newcastle, Edinburgh, etc. The diagram shown below, demonstrates as to how hydrogen will be produced at each of our plants.

Source: Argonne National Laboratory

Our strategy is to deliver fuel to our customers rather than them coming to us and refueling. By strategically placing these 10 stations all over UK, we would be able to deliver fuel to our customers much more efficiently and effectively. Although this may sound a little strange, there is a logical reasoning behind this strategy. To set up each fuel pump (small) across the country would cost approximately $253,000 which is exorbitant. (Energy Independence) . So in order to save up a lot on cost, we plan to just set up 8 to 10 factories in strategic locations. Now our customers do not need to come to the factory to refuel but we would go to them instead. It may then seem as to how fuel can be delivered so often. But a litre of hydrogen can run the car for approximately 390 kilometers. Hence it will be more cost effective for us to deliver the fuel directly as per their convenience. We would have mini fuel trucks like the size of the regular ambulances that will be particularly be imported from India (as the cost is low) and will run on LPG and the emission from these vehicles will be controlled as well by using the 3-way catalyst technology. (Nett). Each location will have an average of 5 to 10 fuelling trucks depending in the demand of the vehicle in those particular cities. Now, if the owner of the car sees that his car is running low on fuel, all he needs to do is to make a phone call. But then what if he already runs out? Every car is fitted with an emergency hydrogen tank which is attached to the main tank. This emergency tank will contain a litre of hydrogen enough to run the car for approximately 390 kilometers.

Marketing and Commercialization plan:

Product Planning :-

Marketing of our new innovation ‘Jaguar XH’ (hydrogen)

Target market: This product will be targeted towards the upper class segment in the US and UK markets, the product will offer new hydrogen technology to its consumers. The major attraction for this segment of consumers will be the new hydrogen technology and the higher speed and efficiency offered by this technology.

New Product development Policy: We recommend company will continue investing in Research and Development for updating and improving our new product according to latest developments and trends in consumer’s tastes. The special R&D budget for this product will be calculated in the section ahead.

First environmentally friendly car to be sold on retail basis in the UK and US market in the year 2013.

Pricing- policies and procedures relating to:

Price Level: Our product will be expensive and target the premium segment and its price will range between GBP 1.5 million to GBP 1.8 million.

Margins to adopt: Considering the heavy investment in the project. We would start with a heavy margin and slowly tighten the margin on the basis of market competition.

Price Policy: Our Company will follow One-Price policy in a country but price may vary between U.S and U.K depending upon Government taxes and Import Export tariffs

Branding- policies and procedures relating to Brand Policy: The car will be available in the market under the brand name of Jaguar.

Channels Of Distribution- policies and procedures relating to:

The car will be available to end users through already established showrooms of Jaguar in U.S and U.K. also the existing channels of distribution will be proposed.

Advertising- policies and procedures relating to:

Product Image: Our product will be the first of its kind. It will be the world’s most environmental friendly car and this will be its unique selling point. It will be marketed as the world’s first fastest sedan because of the advantages of hydrogen technology. A heavy budgeted marketing plan will be needed, as this product will be the next biggest innovation to hit the industry after the TATA Nano.

Corporate image: Jaguar is famous for years for manufacturing quality luxury and sports cars for upper and upper middle segment of the market. With the takeover by TATA, it will be benefited by the reputation that TATA enjoys of an innovative company.

Mix of Advertising: Our car will be advertised through Ads on T.V, Internet. Big boards and banners will be displayed in the main and commercial areas in cities of U.S and U.K.

Promotions- policies and procedures relating to:

Tag line – ‘The Greenest Leaping Cat’

Will be marketed with an expensive marketing budget of GBP 100 million through all possible promotional sources. As the world’s most environmental friendly car ever.

Display and launch- Our car will be first displayed and launched in Auto Expo in U.S and U.K in 2015 and all other major automobile expo’s held in all parts of the world.

It will be available for test-drives at Jaguar showrooms in U.S and U.K. It will also be put on display for public at major airports in U.K and U.S.

Servicing- As this is an all new product and technology, servicing could be a biggest challenge that JLR will face. All arrangements will be made for after-sale servicing of our new car at all the service centre for Jaguar in U.S and U.K. Also auto parts will be made available with the dealers for replacements in case of damage by accidents.( Harvard Business School)

Budget estimation and R&D:

Spending heads

Estimated Spending (Amt. In million pounds)

2010 (Projected)

2011 ((Projected)

2012 (Projected)

Research & Development





Car Development





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