Land Rover North America Case Analysis
3. Product Differentiation: What is the typical SUV consumer? An SUV consumer is typically a male between the ages of 35-49. He is likely married but does not have children yet. His has probably completed part of college, or is a college graduate. He typically has an occupation other than being self-employed or a professional/managerial job. The household income of an SUV consumer is just below $50,000 a year up to $74,999 a year. Their most important reason for selecting an SUV is its four-wheel drive capability. They mostly use their SUV for running daily errands and transportation to/from work. They also use their SUV for pleasure driving. Research showed that SUV consumers in the 1990s wanted both real and fantastical experiences, instead of being concerned about status symbols or the collection of possessions that showed wealth and prestige. According to Yankelovich Monitor survey about retail shopping satisfaction, consumers dislike shopping for cars the most. Car shopping was ranked the most anxiety provoking and least satisfying of any of the retail experiences studied.
5. Brand Positioning: What are the three brand positioning alternatives from the case? What are the pros and cons associated with each alternative? The first brand position that was briefly considered for the Discovery was the position of being The More Affordable Range Rover. The benefits of this positioning were that they could use the established Range Rover brand that SUV consumers in America understood and trusted, but for a more affordable price. They decided against this brand positioning because of the experience they had with the Range Rover Hunter. In focus groups that they conducted, it seemed that there was a market for a less appointed vehicle so they created the Range Rover Hunter. But after the Hunter was introduced to the market in 1989, they realized that consumers viewed the Hunter as a “cheaper stripped down Range Rover” and it ended up being a failure. The second
5. Brand Positioning: What are the three brand positioning alternatives from the case? What are the pros and cons associated with each alternative? The first brand position that was briefly considered for the Discovery was the position of being The More Affordable Range Rover. The benefits of this positioning were that they could use the established Range Rover brand that SUV consumers in America understood and trusted, but for a more affordable price. They decided against this brand positioning because of the experience they had with the Range Rover Hunter. In focus groups that they conducted, it seemed that there was a market for a less appointed vehicle so they created the Range Rover Hunter. But after the Hunter was introduced to the market in 1989, they realized that consumers viewed the Hunter as a “cheaper stripped down Range Rover” and it ended up being a failure. The second