Case Analysis: Land Rover North America Essay

The U.S. electric passenger car industry in 2011 was described as being in its infancy, because it is still a new concept to buyers. However there are signs of growth from 2011-2015. Buyers do not consider the car because of price, travel range and vehicle size, along with other secondary concerns.

The British Aerospace wanted to get rid of its noncore and loss making business - the automobile subsidiary - Rover. Rover was operating in a collaborative relationship with Honda. BL was in urgent need of a midsized car that would help improve its image, quality, efficiency, boost its capital and expertise to enable it to continue,

The fourth part of this report will investigate the claim that “smaller cars provide better values than larger cars,” given the provided data. The claim does not make clear what measurement for determining “values” is to be used, but we will proceed with the assumption that Consumer Report’s Value Score is an accurate representation of real-world value. Because we determined that the Size category and the two related ‘dummy’ variables did not have a significant relationship with the Value Score (which caused their subsequent deletion from the equation), and also because Size is largely represented by Cost/Mile—the choice was made to analyze the coefficient for Cost/Mile to help come to a conclusion. We are going to use the following estimated regression equation (which we constructed in Part III) for our analysis:

rationale for owning an SUV, and willingness to put others at risk rather than themselves in a

Andrew Simms, a policy director and head of the Climate Change Program for the New Economics Foundation in England, presents his argument about the impact SUV’s have on our roadways, and the air we breathe. “Would You Buy a Car That Looked like This? “. The title alone gives great insight on what the article is going to be about, (vehicles). “They clog the streets and litter the pages of weekend colour *supplements. Sport utility vehicles or SUV’s have become badges of middle class aspiration” (Simms 542). Simms opening statement not only gives his opinion on how SUV’s are the new trend, but he also paints a picture of what we see every day driving down our roadways. Simms also compares the tobacco industry’s gap between image and reality

Regarding consumer perceptions of major SUV brands, the Land Rover Discovery shared the highest score on quality of 7.4 with the Ford Explorer and Toyota 4Runner. Additionally, the Discovery enjoyed the highest rating of 7.6 on safety. Having the highest score on the two most important factors in the SUV purchase helped position the Discovery very strongly despite its lack of awareness.

For the better part of nearly 2 decades leading up to 2007 the automotive market was dominated by light trucks and suv’s. US auto makers were able to make very high profit margins off of these vehicles due to their price point while they could hardly break even on compact cars so the industry put very high focus on making them, causing them to become cheaper and sales to skyrocket. The general public ate it right up with low asking prices, loads of room, and perceived safety. Sales were at an all time high for entering the new millennium, surpassing minivan sales by 1994. It seemed like nothing could stop SUV’s from selling like hot cakes, that was until 2008.

How has GM used the major segmentation variables for consumer markets in segmenting the SUV market?

For our initial strategy we wanted to choose a product line that would be most intriguing to customers in this poor economy. To initiate this we focused our products around better gas mileage, safety, and quality. In order to do this we needed to evaluate consumers’ needs and desires when making a high involvement purchase such as a car. We believe the best target market for this type of car would be a middle class family that does not have as much disposable income due to the recession in our economy.

The firm will compete with firms C, D, and E who currently hold varying market shares in Economy, Minivan, and Utility respectively. How we intend to win is by introducing the crossover vehicle that has the functions of the Utility, the same capacity of the Minivan, and a different styling than the Economy vehicles.

Purchasing a new car is considered a luxury purchase, making it a highly influenced decision by reference groups on the product choice and the brand selected. As purchasing a car is a high-involvement purchase, normative and informative influences

Technology has brought many luxuries to people. The invention of the automobile has brought convenience to everyday living. People use their vehicles to commute to work, school, home, and other events. Some people cannot even imagine living life without the use of an automobile. People have different tastes in the type of automobile that they drive; the automotive industry has made several different ways to commute. The car and the sports utility vehicle seem to be the most common types. The sports utility vehicle is inferior to the car.

SUV’s have become the center of a large controversy in the last couple of years. Many studies have been conducted on the relation to the economy and the popularity of the SUV. The sport utility vehicle not only affects the economy with its gas-guzzling capabilities during a time of war, but with the safety questions that have continued to arise.

Once he or she knows their budget they are ready to find the type of car that fits their lifestyle. There are many different types but the main four types are sedans, coupes, sports utility vehicles (SUV), and pickup trucks. there are a few sub-categories like van/minivans, wagons, and hatchbacks but they are included in the four main types. There are also different types of drive types such as front wheel drive, rear wheel drive, or 4x4/all wheel drive. To find the type of car that fits their lifestyle he or she will need to think what they will be using the car for. If he or she needs the car to be able to take their three kids to school all year around and they live in a place that snows, a rear wheel drive two-seater coupe will not do them any good. they will need a truck, SUV, or an all-wheel drive sedan. After he or she knows what they need in a car they can start thinking about what luxuries they would want like leather seats, a sunroof, navigation system, or a premium sound system

The buyer decision process of a typical Porsche customer focuses on selecting cars that reflect their high social status, their financial power, and their preference for exclusive products. They are not interested in the utility or price of the cars in comparison with other customers that are interested in how much the car costs, its size, or its fuel economy performance. Porsche buyers also take into consideration the car's performance, but they focus on the sensations they have when driving such a car.