Marketing Mix of Evoque Cars of Jaguar Land Rover - Essay Example

?4 P’s of Marketing Table of Contents Introduction 3 Marketing Mix of Evoque Cars of Jaguar Land Rover 3 a)Marketing mix for targeting low end of themarket 4 b)Marketing mix for targeting high end of the market 9 Conclusion 11 Reference list 13 Introduction Jaguar Land Rover Automotive Plc is one of the British Automobile Companies whose headquarter is located in Whitley, Coventry in United Kingdom. The company is a subsidiary of the Indian Tata Motors. It is mainly involved in developing, manufacturing and selling vehicles which includes Jaguar Land Rover along with Range Rover (Jaguar Land Rover, 2013a). In the year 2002, the Land Rover business and the Jaguar Cars were united and converted into a single entity by the Ford Motor Company. The company acquired Land Rover in the year 2000 from BMW and Jaguar cars in the year 1989. Presently the company is employing more than 25000 employees. Net income of the company is ? 1.215 billion. The next portion of the study has been divided into two sections. The first section will deal with the discussion of the marketing mix for the Evoque product of Jaguar Land Rover for targeting the low end customers at the entry level. The second section deals with discussing the marketing mix of the premium Evoque product in order to target the high end customers for competing with the products like BMW X3, Audi Q5 etc. Marketing Mix of Evoque Cars of Jaguar Land Rover Marketing Mix is considered as one of the most important business tools which help in determining the four P’s involved in the planning of marketing strategy. The four P’s include Product, Price, Place and Promotions. This marketing mix will help in providing set of policies on the basis of mentioned four P’s so that it can act as an essential marketing strategy for influencing the purchase decision of the customers. The main reason behind any business’s success includes a long procedure in which achieving success depends upon marketing. The success linked to marketing depends upon different marketing strategies and all these marketing strategies include 4 P’s of marketing. The marketing mix of Evoque vehicles of Jaguar Land Rover will provide the best possible way of mentioning all the essential elements in marketing. The implementation of marketing strategies in an appropriate manner is important for the achievement of success in the operational market. The marketing mix will give the combination of various important marketing strategies planned by Jaguar Land Rover (Belohlavek, 2008). Each of the four P’s is important for planning such a marketing mix, which would be able to attract the customers easily towards the organization. It will help in determining the profit potential of Jaguar Land Rover meant for separate target segments. a) Marketing mix for targeting low end of the market Product Product means those goods or services which are provided to customers by the organizations. There are different elements connected to the products which help in attracting the customers (Masterson and Pickton, 2010; Hobbs, 2011). The Range Rover Evoque has brought sensational design to the world’s leading marques. The excellent power train technology along with the compact foot prints help in delivering high performance along with reduced carbon dioxide emissions and fuel consumption as compared to any other Range Rover model (Jaguar Land Rover, 2013b). The products are styled with such desirability which cannot be matched by any rival. The Evoque provides various facilities like accurate and fast steering. The ride is such that it possesses the capability of absorbing the imperfections present in the road surface. The vehicles are perfect while exploring the city by means of power, high performance and excellent design at the finger tips. There are unique models, all present in 5 door version: Prestige, Pure and Dynamic. Only Dynamic is present in the Coupe Version. Customer research is known as one of the key elements in developing or planning the most effective marketing mix. The knowledge of an organization related to the demands or needs of the target market segment as well as the competitors in the market helps in offering those products which appear to be appealing to customers and also help in avoiding various mistakes. Addition of any new product or service within the present product or service product line of the business always involves a certain amount of risk and return exchange. For ex- If the organization is good, having high brand name, then providing services to the customers on time is an essential part of the product bundle. In the late 90’s it has been seen that the attitudes as well as values of the luxury car buyers were changing rapidly. It is from that time the customers have become focussed on spending their leisure time with families by going on tours. It has been found that the people wanted greater number of vehicle choices with eye catching designs which would suit their changing life styles. Presently the customers have sliced the market into focused pieces. The product offerings are becoming more differentiated. In order to become successful it is very important for an automotive company to fulfil 100 percent of the customer’s satisfaction. Sigma Research is one of the best ways for predicting the changes or shifts in customer’s choices. The demographic research based on income, age etc is also very important. It would help in planning various other marketing strategies. In the next few years it is expected that there would be an expansion in the luxury car market. At the entry level, the Evoque vehicles are targeting the low ended customers. Thus pricing as well as promotional strategy should be based on the above mentioned target segment. Price Price is one of the most essential elements of marketing mix as the pricing strategy of an organization has an impact on the sales, customer’s demand, and competitive strength as well as the profit (Czinkota and Ronkainen, 2007). Any wrong pricing decision will harm the organization by affecting its efficiency and other functional areas. The pricing objectives should be set while planning for the pricing strategy. The pricing objectives include price stability, profit maximization, improvement in market share condition etc. The pricing approach of an organization should be reflecting the exact position of the specific product in its operational market. The price should be able to cover cost per item value followed by a specific amount of profit margin in it. The Land Rover Evoque is in 7th position out of the 10 Luxury Compact SUVs (U.S. News Rankings & Reviews, 2013). The ranking have been done based on the analysis of 20 different published reviews. While planning for an entry strategy and targeting the low end customers, it should implement penetration pricing strategy. This would help in increasing the market share in the new market. After the product becomes renowned and well recognized in the new market the price can be increased. In new market comprising of low end targeted customer segment this pricing strategy will help in creating goodwill as well as discouraging entry of the competitors in the market. Promotion Promotion is mainly the attempt of an organization for stimulating the demand of the product in the target market but without making any change in product mix, channels of distribution or the pricing strategy. The promotional activities include immense efforts of the markets in order to provide adequate knowledge to customers for persuading or influencing them in buying the company’s products (Kumar, n. d.). Persuasive communication is an important factor while planning for the promotional strategy. The promotional objectives include determining the demand of the product in the market, providing accurate product information to customers as well as the market intermediaries thereby making the other elements in marketing mix more meaningful. In order to plan for an effective promotional strategy, the promotional efforts should have a clear message towards the target audience through an effective channel. The target audience can be explained as those customers who can easily be influenced for purchasing the company’s products. An organization should always focus on market research for identifying the target audience. The route for spreading message must include the utilization of various key marketing channels. One of the most effective key marketing channels is advertising. This mode of promotion acts an essential element for conveying the message to the targeted audience (Tyagi and Kumar, 2004). It acts as the most important element in the promotional mix for communicating with the customers. In present days, it has really become difficult for marketers to get in contact with the correct customers whose needs and demands will comply with the product offerings made by them. In such case, the ease of use of broad range of media such as TV, Internet or Electronic sources, Print media etc have created awareness among the individuals related to the products or service offerings made by the organizations (Tuten, 2008). The following are important promotional tools which can be utilized by Jaguar Land Rover for promoting the Evoque product to the targeted low end customers at the entry level: Television: Advertisements on television helps in providing important information to the national and local audiences. It is comparatively an expensive means of advertising company’s product than all the other options. Jaguar Land Rover can advertise its Evoque product in television for gaining the attention of the targeted audiences. This would help in attracting a wide range of customers towards the company’s products. Moreover, the price offerings (favourable to the low ended customers) if displayed in the advertisements would enable grabbing the attention of these customers more easily. Print: Advertisements via direct mails or different types of printed materials always help in defining what, when, why and where should the customers purchase from any organization. There are different types of print advertisements such as consumer or trade magazines, newspapers, flyers, etc. These forms of advertisements are effective while entering any new market segment. Thus these forms of advertising can be implemented by Jaguar Land Rover for attracting the customers in the new market. Electronic: The company websites help in providing useful information to interested and potential customers (Baker, 2012). The password protected areas permit the users in interacting more easily and seeking more information related to the companies. Advertisements via company websites always provide wide promotion of products. This is the most effective means of conveying the message related to the quality and features of the product to the customers. It is a cheaper means of communication and at the same time can cover a wide range of customers. Jaguar Land Rover’s company website should display the product features and the quality in such a manner that the customers may feel the difference in the product offerings as compared to offerings made by the competitors. The company can use the procedure of sending direct mails for providing detailed information according to their specification. This would also enable in maintaining long term relationship with the customers. The above mentioned promotional activities would present the product quality as features in such manner that it would help Jaguar Land Rover in gaining a reputed position in the new market segment by grabbing the attention of the low ended customers (as their initial target). Place Place helps in determining the location of products and services provided by the organizations (Worsam, 2003). It is the efficacy associated with placing the products in the market which influences the purchase decision of the customers to a great extent. The place must be selected in such manner that the product of the company holds its importance in front of the customers. Jaguar land Rover can place the Evoque Cars in showrooms located in the busy areas in the new market so that it can grab the attention of the target customers easily. In showrooms the sales person can easily influence the purchase decision of the visitors by his/her attitude, appearance, product knowledge, etc (Havaldar, 2005; Anderson and Dubinsky, 2004; Lamb, Hair and McDaniel, 2011) b) Marketing mix for targeting high end of the market This portion of the study will deal with tailoring of the marketing mix to some extent for filling up the gap in the premium Evoque product in order to compete with products like BMW X3, Audi Q5 etc. Product While targeting the high end market, the company should offer premium product for competing with strong competitors like BMW X3, Audi Q5 etc. Range Rover Evoque Car provides same sleek as Range Rover Evoque Coupe Car but along with some additional facilities. These products are available to the premium customers in order to make them feel that the product offerings made to them are differentiated from the product offerings of the competitors. The engineering feasibility study would represent the drivability, quality and breadth of the performance in highly compact and sustainable package. Customer research is required to be conducted so that feedback would help in raising the desirability of the brand for meeting the expectations of these customers. Price The pricing strategies for targeting different customer segment in the market are always different. The high end market demands excellent features within the products for which the customers are ready to pay high prices. The company should implement premium pricing strategy in order to target the high end customer segment. This would create a perception among the customers that the high prices are mainly because of the high quality of the products that are being offered. Moreover it would also help Jaguar Rover in achieving the break even easily. Promotion The promotional activities to be implemented by Jaguar Land Rover for targeting the high end of the market will not change to a great extent as compared to the activities stated above. Television, advertisements via electronic sources and print media will act as important sources for promoting the company’s products among the high end customers. However, Land Rover can also arrange for global marketing campaign. The features of such campaign would consist of animated characters driven around animated landscape. The campaign would display or demonstrate the all round versatility and capability of the vehicles. This would help in demonstrating high quality of the products which would attract the high end customers. The marketing campaign would help in displaying Evoque as the best selling model of Jaguar Land Rover. This would also reflect the style and advanced technology of the cars. This campaign would facilitate the company in gaining competitive advantage over its competitors in the target market segment. Place Place where the product should be placed holds an equal importance. However, the product placement while targeting the high ended market segment is not different. Jaguar Land Rover should place the Evoque vehicles in attractive showrooms for targeting the premium or affluent customers. The ambiance of the showrooms should be such that it provides a feeling of immense satisfaction to the customers visiting those places. Conclusion The marketing mix forms an important part of all the strategies that are planned and implemented by an organization. Jaguar Land Rover has two specific targeted market segments which required planning and implementation of marketing mix in an appropriate manner. Targeting the low ended customers require implementation of the perfect pricing strategy which would be best suitable for the low ended customers but at the same time keep some level of profit for the company. The penetration pricing strategy has been the best strategy which would also help in gaining market shares in the market. While targeting the high level customers, the premium pricing strategy would provide a feeling of satisfaction to the customers as they perceive that higher the price higher is the quality of the products. The market campaigning strategy would act as an effective promotional strategy for influencing the purchase decision of the high ended customers. The recommended marketing mix for targeting these two target segments by Jaguar land Rover would help the company in gaining competitive advantage over its competitors. Reference list Anderson, R. E. and Dubinsky, A. J., 2004. Personal selling: Achieving customer satisfaction and loyalty. Boston: Houghton Mifflin. Baker, M., 2012. The marketing book. London: Routledge. Belohlavek, P., 2008. Unicist marketing mix. Houston: Blue Eagle Group. Czinkota, M. R. and Ronkainen, I. A., 2007. International marketing. Connecticut: Cengage Learning. Havaldar, K. K., 2005. Industrial marketing: Text and cases. New Delhi: Tata McGraw-Hill Education. Hobbs, D. P., 2011. Applied lean business transformation: A complete project management approach. Newcastle: J. Ross Publishing. Jaguar Land Rover, 2013a. Land rover Global Homepage. [online] Available at: [Accessed 19 August 2013]. Jaguar Land Rover, 2013b. Build and Price. [online] Available at: [Accessed 19 August 2013]. Kumar, n.d. Mktg of hospitality & tourism serv. New York: Tata McGraw-Hill Education. Lamb, C. W., Hair, J. F. and McDaniel C. D., 2011. Essentials of marketing. Connecticut: Cengage Learning. Masterson, R. and Pickton, D., 2010. Marketing: An introduction. California: SAGE. Tuten, T. L., 2008. 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