Executive Summary
In this marketing plan, the researcher has critically analyzed the internal and external forces in the environment that may help this firm market the new product effectively. The new product, the 2016 Range Rover Sport SVR, is unique and meets the needs of its target market perfectly well. What the firm now needs to do is to come up with superior marketing campaigns that will attract customers to this product. It also needs to ensure that the product is always available when needed by the clients
Introduction: Company Overview
Land Rover is a leading manufacturer and marketer of four-wheel-drive vehicles, most of which are sport utility vehicles (SUV). The design for Land Rover vehicles was initiated in 1948 by Maurice Wilks, who was a chief designer at the Rover Company. His design was very successful that after a few years, Land Rover became a company with its unique design of SUV cars of different series.
With its headquarters in Whitley, Coventry, in the United Kingdom, the firm started an ambitious program that focused on providing multi-purpose cars that could be used in different terrains. The firm’s mission clearly stated the aim of the firm to provide high-performance cars that could be used in different terrains and for different purposes. The popularity of the Land Rover cars went beyond the United Kingdom soon after it was launched. It became a preferred car for military and militia groups all over the world because of its tough body and unique ability to overcome tough terrains.
Land Rover is currently owned by Tata Group of Companies, but its headquarters in the United Kingdom was not changed. The company has remained very popular among the middle class, high class, and the elderly who need a greater sense of security in the cars that they drive. The company has a variety of products that it sells locally in the United Kingdom and in the international market.
The top car models that this firm delivers to the market include Defender, Freeelander, Discovery, Range Rover, Range Rover Evoque, and Range Rover Sport. Range Rover Sport is one of the most popular car models from this company that has received massive acceptance in the global market. In this paper, the researcher will primarily focus on the market planning for the newly produced the 2016 Range Rover Sport SVR.
Corporate mission
The corporate mission of Land Rover Company, the maker of the 2016 Range Rover Sport SVR, states that the firm’s philosophy is to provide its customers with unique cars that not only provide movement solutions but also offer them a sense of class, safety, and comfort at all times. This corporate mission is clearly demonstrated in the newly launched the 2016 Range Rover Sport SVR. This product is unique in many ways.
From its shape, engine capacity and comfort, to its applications, the car outsmarts all other previous models of Range Rover Sports cars. The figure below shows the comfortable seats of this new model of Range Rover Sports.
As shown in the figure above, it is clear that the car meets the standards as defined in the firm’s corporate mission statement.
Core competencies
Core competencies of a firm enable it to stand out among the rest as a unique brand based on how it uses its resources and skills in the market. Brooks (2016) says that the core competencies at Land Rover have been focused on the safety and performance of the cars. The shape and size of the car, its interior and exterior features, and general performance are all designed to offer maximum safety for its occupant even when the car is moving at top speed.
The manufacturer dedicated a lot of time and resources when designing the 2016 Range Rover Sport SVR, and the outcome was marvelous. The car shows how deeply skilled the engineers at this firm are and the emphasis that the firm lays on the quality of its products.
Marketing micro-environment
It is important to look at the micro-environment of this firm in relation to its newly introduced the 2016 Range Rover Sport SVR. The figure below provides a summary of these micro-environmental factors that may affect the ability of the firm to achieve success with the new product.
As shown in the above figure, customers are very important components of the internal environment of this firm as it goes with its new car model to the market. The customers’ taste and preferences in the market and the financial capacity will determine the performance of this new model in the local and international markets. As stated below, the primary targets for this new product are the rich and the upper-middle class who have the capacity to pay the high price that comes with this classy product.
The employees of this firm will also play a critical role in ensuring that the 2016 Range Rover Sport SVR is a success in the market. This is shown in the data presented in Figures 3 and 4. The employees in the production unit, sales department, and logistics must coordinate very closely to ensure that the needs of the customers are met in the best way possible. They must always remain motivated. The competitors matter a lot in defining the market environment.
Toyota Land Cruiser, Audi, and Benz are some of the top competitors challenging this new model in the market. As Sorger (2012) says, media is currently considered part of the internal environment because of its significant influence and constant presence, especially if there is a scandal that may attract the attention of the public. As such, the management must ensure that positive publicity is maintained when promoting this product. The shareholders will want value for their investment. As such, this new car model will need to make attractive profits that can translate to impressive returns to the shareholders. Finally, the suppliers should be given special treatment to ensure that they are reliable and affordable in the delivery of their products.
Marketing macro-environment
The macro-environment is also going to have a significant influence on the performance of the 2016 Range Rover Sport SVR in the local and global markets. Using PESTEL analysis may help in understanding these external forces. The political environment in the United Kingdom, where the firm is located, has remained relatively stable since the end of the Second World War. It has created an enabling environment for this firm to operate.
Most of the markets in Europe, the Americas, Asia, and Africa, where the firm sells its products have also experienced a stable political environment, which has translated into a stable market. The economic environment in Europe and America has recovered from the 2008 economic recession. It means that the purchasing power of the target market is on the rise, the fact that makes it very likely that this product will be a success.
The social environment is diversified given that the firm operates in the global market. The increasing popularity of the Western culture in the global society is likely to benefit this product as it is very popular in the West. Technology will be a negative and a positive force at the same time. The emerging technologies make it easy for the competitors to emulate the unique design of this product. This firm can use the same technology to enhance the product’s quality as a way of making it more popular.
Ecological issues such as the level of emissions and the noise from the car are factors that the designers must be able to address to avoid instances where the car is considered unfit in some countries. The legal environment is another issue that this firm should be keen to address, especially cases where it is accused of infringing into property rights of other firms.
Current brand portfolio
As mentioned in the introduction, Land Rover has experienced a long period of market success over the past half-century since it started producing its Land Rover Models. In the current market, the brand Land Rover is becoming less popular as the firm has allowed individual models to be promoted under their own sub-brands. As such, people are aware of these sub-brands more than they are aware of the main brand of the company.
Defender and Discovery are some of the oldest sub-brands that were very popular in the 1960s and 1970s. Freelander then became another very successful brand that became popular in the late 1990s. The invention of the Range Rover Evoque and Range Rover Sport series marked the biggest success in the firm’s history. The 2016 Range Rover Sport SVR is one of the top cars which are marketed and sold under the sub-brand of Range Rover Sport. The table below shows the brand portfolio at this firm.
Table 1: Land Rover Brand Portfolio.
Gap analysis
Based on the above analysis, what lacked from the portfolio was a sleek car that meets the values of this firm but in a unique way based on the customers’ emerging needs. This is the gap that this new car model has come out to address. It brings out a taste of class without compromising on safety, comfort, and engine performance.
Product Analysis
New product
The 2016 Range Rover Sport SVR is a new product that promises to be very successful in the market because of the unique characteristics that it has. It promises to deliver superior value at a time when customers are demanding more than just a car. Customers are demanding for comfort, safety, prestige, and convenience whenever they are purchasing an automobile. These are the features that this new product promises to its clients. Figure 5 shows a photograph of this product.
Value proposition
In its value proposition, the 2016 Range Rover Sport SVR is presented as a comfortable and classy automobile that meets the needs of high-end users in a special way. It is positioned as a family car that can meet all the basic needs but still offer something special in terms of speed and movement in rough terrains. It is positioned as a car meant for the cities, but still has the capability of moving in the rural settings that lack the superhighways. The car can be driven for a longer distance without the occupants feeling tired because of the adjustable seats which enhance comfort.
Segmentation strategy
The market segments targeted by this new product can be classified in terms of age, gender, and social class. In terms of age, this product is very popular with middle-aged people who have stable families. They need a car that can be used by all the family members without straining. They also need a car that puts safety, comfort, and security of the occupants ahead of any other thing as a way of protecting their family members. In terms of gender, this product is popular among men than women.
Men often prefer larger automobiles than women. In terms of social class, this product targets the upper middle class and the rich. These two segments have the capacity to purchase the product. The characteristics of this car, as discussed above, meet these needs in a very special manner. It offers its users space for the family members, safety, security, and comfort for the occupants, and a sense of class. It is a product that clearly demonstrates the class that the user belongs, making it very popular among the rich. The unique way in which it meets the needs of its target clients enhances its ability to achieve success in the current competitive automobile market.
Intended positioning
According to Ryans (2010), the manner in which a product is positioned in the market matters a lot because it defines the audience that will be attracted to its brand awareness campaigns. People of different classes are attracted to products that they believe belong to their class. The upper middle class and the rich are specifically very choosy and therefore, it is important to be very keen when positioning a product that targets them. The 2016 Range Rover Sport SVR is positioned as a product for the rich. It is positioned as a classy product that goes beyond offering basic transport needs. It is a product that tells the society the class that one belongs. These are some of the factors that have made it very popular among the rich.
Marketing mix
In order to understand the market forces that this new product will face, a further analysis will be necessary using marketing mix elements. It will help in determining what the firm can do differently in the market to achieve the success it needs in this highly competitive market. The analysis will focus on the four primary elements of marketing mix.
Product
According to Crathorne (2013), a product is the first elements in the marketing mix. A product must meet the needs of the market for it to be considered appropriate for a given segment of the market. In this case, Land Rover is offering a product, the 2016 Range Rover Sport SVR, which offers the basic need of movement. However, the firm appreciates the fact that every other car in the market offers the same service to the customer.
As such, the company has gone a step further to ensure that its products offer more than just the basic need of movement from one place to the other. It has introduced numerous features that make the product to stand out from the rest. First, the product comes with very unique features that enhance security and safety of its users. This is done in an articulate manner using various additional features both inside and at the outer parts of the car.
This is one step towards making the product different from others. Inside the car, there is unique comfort that is facilitated by high quality leather seats which are adjustable based on one’s height. The feature is not very common in standard cars. The car also comes with a sense of class because of its size, engine capacity, type of body, among other factors. All these features make this car special. The SUV can also have extra capacity at its rear where sports equipment or any other item can be kept. Figure 6 shows the rear end inside of the car.
Price
The price element is very important because it defines the market segment that can purchase the product. The current price of the 2016 Range Rover Sport SVR is $224,110 in the United States. The price is relatively lower than that in the United Kingdom where it is manufactured. The high price of the product makes it an exclusive product for the rich. It cannot be affordable to the middle class and low-end market segment specifically because of its high price tag.
Place
The Range Rover Sport has specialty shops all over the world where the product is sold. Unlike other cars, this product targets a special market segment that is very keen when making purchases. As such, it cannot be sold at local dealers who sell various car brands. It has specialty shops where clients can have all their issues addressed before, during, and after making the purchase. This strategy helps this firm to ensure that clients remain satisfied even after making the purchase of the product. The 2016 Range Rover Sport SVR is currently available in Europe, North and South America, and selected markets in Asia and Africa.
Promotion
Promotion is a critical ingredient in ensuring success of this firm in the market. According to Boyne and Jeffers (2014), promotion is very critical in the modern market because buyers often want to purchase a brand more than the product. Range Rover is a brand that is highly trusted. As such, any car that bears this brand is automatically associated with high quality and the rich. It is, therefore, very important for this firm to come up with very effective marketing strategies. Currently, it is using social media marketing in the global market and mass media marketing in specific market. Based on the target market discussed in the section above (the middle-aged and the elderly), this firm should spend more on mass media than social media.
Conclusion
The critical analysis of the marketing plan for the 2016 Range Rover Sports SVR shows that it has a potential to achieve success in the market. The micro and macro-environmental forces are favorable to this new product and if it manages to align its marketing strategies to the market needs and external environmental forces, then it will achieve the desired success. Given that this is a new product in the market, the firm will need to spend more on advertising.
References
Boyne, J., & Jeffers, O. (2014). Noah Barleywater runs away: A fairytale. Hoboken, NJ: Wiley & Sons.
Brawley, B. (2015). Range Rover Sport SVR: the Red Hot Chili Rhinoceros. Car Street Journal, 14(2), 1-5.
Brooks, G. (2016). The secret chord. New York, NY: Springer.
Crathorne, R. (2013). Range rover the first fifty: Prototypes, yvbs and nxcs the story of the early. London, UK: Brooklands Books Ltd.
Cuhaj, George, S., & Michael, T. (2016). Standard Catalog of World Coins 2016: 1901-2000. New York, NY: Cengage.
Fleming, C. (2015). Luxurious Lexus RX makes cheaper NX look bad in comparison. Los Angeles Times, p. 18.
Fleming, C. (2016). Range Rover Sport HSE Td6: a posh drive through El Niño’s wickedness. Los Angeles Times, p. 11.
Ryans, A. B. (2010). Winning market leadership: Strategic marketing planning for technology-driven business. Toronto, Canada: Wiley.
Sorger, S. (2012). Marketing planning: Where strategy meets action. Boston, MA: Pearson.
Undercoffler, D. (2015). Car review: 2014 BMW X5 versus Land Rover Sport in luxury SUV market. Los Angeles Times, p. 3.