Case SynopsisThis case describes how Land Rover North America, Inc. (LRNA) has redesigned their dealerships and selling process with the objective of building and enhancing equity for its brand. Land Rover is a niche player in a very crowded and rapidly maturing product category. Competition is fierce and is dominated by large global competitors with extensive dealer networks who differentiate their products largely by size, features, and price. The company has relatively few dealerships and cannot afford the volume of advertising or promotion that its primary competitors can. The company must choose to depend upon positioning its product as a specialty brand, characterized by brand insistence on the part of its buyers.
Charles Hughes, President and CEO of Land Rover North America, Inc. (LRNA) is debating three positioning options for the new $30,000 Land Rover Discovery. The positioning decision will help LRNA settle on advertising messages and other communications strategies.
II. RecommendationsLRNA needs to determine a positioning strategy for the Discovery and itself in North America to entice its two distinct target markets. LRNA is aware that it has two distinct target markets whose purchasing decisions are impacted by various drivers but also knows that factors such as quality, safety, reliability, comfort, off-road capability and aesthetics overlap. When compared with other SUVs or SUV alternatives, we believe the following differences should be highlighted to develop a distinctive niche for the Discovery and Land Rover brand in the target audience's mind. The Discovery and Land Rover brand should be positioned as luxury car alternatives with rich histories and superb off-road capabilities designed for the crÃÂ¨me-de-la-crÃÂ¨me of consumers: affluent, intelligent, practical, unique, full of character, and seeking to empower themselves through adventure and exploration during their driving experiences. The Discovery and Land Rover brand should, in effect,