Marketing - Cathie Owens

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SITUATION ANALYSIS 2

Situation Analysis

Internal (Organizational) Environment

Review of marketing goals and objectives

Jaguar’s current marketing plans for the I-PACE is to have the first production models on the road by the year 2018 (Burt, 2017). It is expected to be the smartest five-seater car, incorporating all the versions of modern vehicles. It will be a performance, family and SUV car all in one. The company will use this groundbreaking design to ward off competition and lure in clients of all ages and needs thus boosting the sales of the car (Burt, 2017). Though the car will be electric, the company will still maintain it’s known traditional for performance by having the competitive range and charging time. The company knows that the main competition it will be having is the new Model X designed by Tesla and it has set the standards as high as having a range of 500km charging to full capacity in under two hours (Burt, 2017). The goals that the new I-PACE has achieved has been able to march with Jaguar’s 80-year history of beautiful cars, relevant technology and performance (Burt, 2017). The car will start the new generation of Jaguar, as the company will be embracing a more modern daring design accompanied by innovative technologies that will enhance the customers’ experience. The car is hailed as the first step of the future for Jaguar, and the future is already here. The transportation industry is expected to drastically change in the next decade compared to the past century (Burt, 2017). With all these changes, taking place, the Jaguar I-PACE is projected to take the leading role. Currently, the demand for electric cars has gone up with consumers becoming ever more aware of the effects of emissions on the climate (Burt, 2017). Marketing environment has also changed with more focus on cars producing fewer emissions. The I-PACE has qualified in all these departments thus making the car the best option for consumers globally, mainly as it promotes the zero tailpipe emissions (Ayre, 2017). With the price of the car to be announced later this year, the public feedback on the design, performance specifications and the fact that it is Jaguar’s first fully electric car is positive.

Review of current marketing performance

During the last fiscal year of 2016, Jaguar Land Rover’s (JLR) revenue rose. However, the company’s earnings declined to suggest that investments made in the Chinese market with the new models are not profitable ("Tata Motors Earnings Review", 2016). The company’s sales increased by sixteen pieces compared to the same period in 2015. This growth drove the revenue up to £5.45billion if the tax was to be negated the company’s poor performance can be clearly appreciated as it fell from £638 million to £399 million. A drop margin of 4.1%, all of which is attributed to the Chinese market, the largest car market ("Tata Motors Earnings Review", 2016). However, with the slow rise in the Chinese market, as well as the introduction of the new XE saloon and F-Pace models, profits are expected to increase. Tata, the parent company of JLR, announced that the company sales declined by 6%, in the last three months stock decreased by approximately 30% and this has reflected weakly on the premium vehicle division that is JLR (Alan Tovey, 2016). This flat performance after the analysis was discovered to be mainly caused by the severe pricing environment adopted in China. Chinese customers have become inclined to choose premium foreign vehicles and are now choosing budget cars. This has resulted in the loss of market share, even with the Chinese locally assembled Range Rover Evoque, sales are still dropping ("Tata Motors Earnings Review", 2016). The rough economic conditions and low supply experienced in China are expected to be temporary.

Review of current and anticipated organizational resources

JLR is expected to build its latest model at its plant in Solihull in the United Kingdom (UK) as they pledged to return the heritage of British cars back to the nation. The Velar model will be the fourth member of the Range Rover family and is expected to be available for public orders by the summer of 2017 (Monaghan, 2017). It is anticipated to be sold in more than a hundred global markets. Currently, Range Rover accounts for more than 80% of the luxury cars produced in the UK contributing an approximate £10 billion yearly to the economy. This decision was made after the European Union warned of the death of the British Manufacturing job cuts associated with their exit from the EU (Monaghan, 2017). Moreover, the decision was made after Tata that parent company injected £1.5billion into the facility to improve on the technology on the Solihull factory; this meant that an additional 10,000 people are to be employed. Currently, the Tata directly supports approximately 50,000 jobs in Britain’s manufacturing plants and a further over 250,000 suppliers (Monaghan, 2017). This new investment will mean that the number of employees and suppliers are to increase to support the manufacture of the new car. The new Range Rover model is expected to be the cheapest of all Range Rovers, it purchasing price will be approximately £45,000.

Review of current and anticipated cultural and structural issues

The positive aspect of JLR is its willingness to embrace change unlike the majority of the other global car manufacturers. The company carries out surveys and delivers on the needs of not only the consumer but also considers the environment in its car production (Burt, 2017). Currently, the automotive market is in demand for high performance, long range, and technologically advanced electric vehicles. The company has delivered this with the unveiling of their new Jaguar I-Pace at the Geneva motor show (Ayre, 2017). This is evidence that the company is flexible enough to change with the global trends. Secondly, the company has not abandoned its British heritage even after being acquired by an Indian company; JLR has still invested in the United Kingdom even though there are much cheaper countries where it can manufacture its products. Other countries that produce JLR vehicles include Brazil, China and India and a factory is under construction in Slovakia (Monaghan, 2017). This shows how the company accepts change and new cultures thus expanding its understanding of client needs.

References

Alan Tovey. (2016). Jaguar Land Rover sales accelerate but profits in reverse as investment puts a brake on performance. The Telegraph. Retrieved 20 April 2017, from http://www.telegraph.co.uk/business/2016/08/26/jaguar-land-rover-sales-accelerate-but-profits-in-reverse-as-inv/

Ayre, J. (2017). Jaguar I-PACE Concept Makes The Rounds In Geneva & London. CleanTechnica. Retrieved 20 April 2017, from https://cleantechnica.com/2017/03/17/jaguar-pace-concept-makes-rounds-geneva-london/

Burt, M. (2017). Jaguar I-Pace: new pics of production-spec electric SUV | Autocar. Autocar.co.uk. Retrieved 20 April 2017, from https://www.autocar.co.uk/car-news/motor-shows-la-motor-show/2018-jaguar-i-pace-electric-suv-revealed-plus-exclusive-autocar

Monaghan, A. (2017). Jaguar Land Rover pledges 'heart and soul' to UK as new model debuts in Solihull. the Guardian. Retrieved 20 April 2017, from https://www.theguardian.com/business/2017/mar/01/jaguar-land-range-rover-velar-solihull-west-midlands

Tata Motors Earnings Review. (2016). Forbes.com. Retrieved 20 April 2017, from https://www.forbes.com/sites/greatspeculations/2015/08/11/tata-motors-earnings-review-will-the-gloom-for-jaguar-land-rover-in-china-end-soon/#667812af2f28