Marketing Case Analysis
Chery International: Linking up with Land Rover and Jaguar
Questions and Answers:
1. Analyze the buyer decision process of a traditional Jaguar Land Rover customer.
The traditional Jaguar Land Rover customer values luxury brand and
exemplary customer service. Luxury saloons and sports cars also appealed to
them.
2. Why might Chery be an ideal partner for Jaguar Land Rover in China?
It is for the fact that Chery have been the top Chinese vehicle exporter for
seven years and had achieved year-on-year increase on sales of vehicles.
3. To what extent could it be said that Jaguar Land Rover is the only non-German
premium vehicle brand that has global credibility?
Jaguar Land Rover is owned by Tata Motors of India that has a buoyant
sale of their saloons and other vehicles. The company has been able to export
some 70% of all Jaguars to 63 countries and 78% of Land Rovers to 16
countries.
4. Explain how both positive and negative attitudes towards a brand develop. How
can the brand change customer attitudes towards it?
Positive attitude towards a brand develop if the particular product meets
the expectation and standard of the customer. Negative attitude towards a brand
develop if the product lacks the quality/specifications required or the expectations
of customers are not met.
A brand can change the customer’s attitude towards it whether it improves
in all aspects or subsides.
5. What role does the Jaguar Land Rover brand play in the self-concept of its
buyers?
The Jaguar Land Rover designed new cars that are tailor-made for their
customers depending upon their specific requirements. Also, the company is not
just focusing on vehicles sales in China; it has also embraced new technologies
and has become involved in education, humanitarian aid, and environmental
protection.
Chery International: Linking up with Land Rover and Jaguar
MARKETING CASE ANALYSIS
I. Time Context
The case happened on March 2012
II. Point of View
Mr. Ralf Speth
III. Statement of the Problem
How could Chery’s and Jaguar Land Rover’s luxury vehicles compete to
the leading global brands in China that would appeal to the Chinese market?
IV. Statement of the Objectives
 To launch a new version of Land Rover Freelander at a price comparable with
medium-price luxury cars.
 To launch 40 new models for 2016, the majority will be destined to the
Chinese market.
 To produce 50,000 cars a year on which at least 75% of it will be sold out to
the market.
V. Areas of Considerations (S.W.O.T. Analysis)
Strengths
 Chery Automobile Co. Ltd. had been the top Chinese exporter for 7 years.
 Chery Automobile Co. Ltd. had established 1,000 distribution outlets and
800 service centers.
 Jaguar Land Rover is expanding its dealership network across China.
 Jaguar has an established trade name in the market and is particularly
famed for its luxurious saloon and sports car.
Weaknesses
 Most of the employees of Jaguar Land Rover are in Britain, making it hard
for them to determine the buyer decision process of the Chinese people.
 Chery and Jaguar Land Rover are more concerned in selling and
increasing their sales setting aside the marketing part of the business.
Opportunities
 There is an increasing demand for luxurious cars that can be beneficial to
the company.
 Tailor-made vehicles attract Chinese customers for it is made to their
specific requirements.
 There is an SUV craze in China, and Jaguar Land Rover is ideally placed
to capitalize on the popularity of this type of vehicle.
Threats
 Their competitors are already established global brands.
 The product of their competitors are very known and tested by the portion
of the market.
VI. Alternative Course of Action (ACA)
ACA No. 1 – Chery and Jaguar Land Rover should create new designs based on
the specifications of their customers.
Pros
 The company will be able to meet the expectations of the
customers.
 Tailor-made vehicles attract the Chinese people.
Cons
 It would take a longer time on manufacturing the vehicle.
ACA No. 2 – Hire additional skilled workers and employees whose specialization
is designing cars and provide continuous training for the old and new workers.
Pros
 Increase on man-power that help increase production.
 The customers will be offered different kinds of new models.
Cons
 This will be added cost to the company.
ACA No. 3 – Increase emphasis on marketing the products and not just focusing
on selling it.
Pros
 Through advertisements, the new models could easily catch the
attention of the public.
 The customers could easily identify their brand from the other
competitors.
Cons
 It will be an added cost to the company.
VII. Conclusion and Recommendation
Based from the facts of the case, the joint venture of Chery and Jaguar
Land Rover was made in able to compete with other established global brands of
vehicle, specifically in China. In order to capture the Chinese market easily, Ralf
Speth, CEO of Jaguar and Land Rover, confirmed that the company would build
a new factory in Chang Su, in the Jingsu Province that is seen as an ideal
location for transportation to the rest of China.
Considering that the target market is Chinese people, who value luxury
brands and exemplary customer service, it is recommended the adoption of
Alternative Course of Action No. 1 (ACA No. 1) – Chery and Jaguar Land Rover
should create new designs based on the specifications of their customers. The
company would be able to meet the expectations of their customers since the
design is based on their specific requirements. With satisfied customers, the
customer value of the company will surely increase.
VIII. Action Plan and Implementation
Marketing Activity Schedule
 Hiring of new workers and designers.
 Training of the old and new employees.
 Designation of the new employees.
April – June 2012
 Creation of new designs for the cars and selecting 5 of
it.
 Announcement of the “Tailor-made Vehicles” and the
release of the new models on trade shows, T.V.
commercials and magazines.
 Deliver the cars to the designated distribution outlets.
 Distribution of fliers in malls and paste posters in
distribution outlets.
July – September
2012
 Launching tri-media campaign of the tailor-made
vehicles.
October–
December 2012
IX. Marketing Control
 Monitor the sales of the cars on each distribution outlets on a monthly basis
for three months to ensure that its target sales are met.
 Analyze the buyer decision process of the Chinese people for three months
and create new models based on their preferred designs.
 Make a monthly report of the market shares.

Marketing Case Analysis

  • 1.
    Marketing Case Analysis CheryInternational: Linking up with Land Rover and Jaguar
  • 2.
    Questions and Answers: 1.Analyze the buyer decision process of a traditional Jaguar Land Rover customer. The traditional Jaguar Land Rover customer values luxury brand and exemplary customer service. Luxury saloons and sports cars also appealed to them. 2. Why might Chery be an ideal partner for Jaguar Land Rover in China? It is for the fact that Chery have been the top Chinese vehicle exporter for seven years and had achieved year-on-year increase on sales of vehicles. 3. To what extent could it be said that Jaguar Land Rover is the only non-German premium vehicle brand that has global credibility? Jaguar Land Rover is owned by Tata Motors of India that has a buoyant sale of their saloons and other vehicles. The company has been able to export some 70% of all Jaguars to 63 countries and 78% of Land Rovers to 16 countries. 4. Explain how both positive and negative attitudes towards a brand develop. How can the brand change customer attitudes towards it? Positive attitude towards a brand develop if the particular product meets the expectation and standard of the customer. Negative attitude towards a brand develop if the product lacks the quality/specifications required or the expectations of customers are not met. A brand can change the customer’s attitude towards it whether it improves in all aspects or subsides. 5. What role does the Jaguar Land Rover brand play in the self-concept of its buyers? The Jaguar Land Rover designed new cars that are tailor-made for their customers depending upon their specific requirements. Also, the company is not
  • 3.
    just focusing onvehicles sales in China; it has also embraced new technologies and has become involved in education, humanitarian aid, and environmental protection.
  • 4.
    Chery International: Linkingup with Land Rover and Jaguar MARKETING CASE ANALYSIS I. Time Context The case happened on March 2012 II. Point of View Mr. Ralf Speth III. Statement of the Problem How could Chery’s and Jaguar Land Rover’s luxury vehicles compete to the leading global brands in China that would appeal to the Chinese market? IV. Statement of the Objectives  To launch a new version of Land Rover Freelander at a price comparable with medium-price luxury cars.  To launch 40 new models for 2016, the majority will be destined to the Chinese market.  To produce 50,000 cars a year on which at least 75% of it will be sold out to the market. V. Areas of Considerations (S.W.O.T. Analysis) Strengths  Chery Automobile Co. Ltd. had been the top Chinese exporter for 7 years.  Chery Automobile Co. Ltd. had established 1,000 distribution outlets and 800 service centers.  Jaguar Land Rover is expanding its dealership network across China.
  • 5.
     Jaguar hasan established trade name in the market and is particularly famed for its luxurious saloon and sports car. Weaknesses  Most of the employees of Jaguar Land Rover are in Britain, making it hard for them to determine the buyer decision process of the Chinese people.  Chery and Jaguar Land Rover are more concerned in selling and increasing their sales setting aside the marketing part of the business. Opportunities  There is an increasing demand for luxurious cars that can be beneficial to the company.  Tailor-made vehicles attract Chinese customers for it is made to their specific requirements.  There is an SUV craze in China, and Jaguar Land Rover is ideally placed to capitalize on the popularity of this type of vehicle. Threats  Their competitors are already established global brands.  The product of their competitors are very known and tested by the portion of the market. VI. Alternative Course of Action (ACA) ACA No. 1 – Chery and Jaguar Land Rover should create new designs based on the specifications of their customers. Pros  The company will be able to meet the expectations of the customers.
  • 6.
     Tailor-made vehiclesattract the Chinese people. Cons  It would take a longer time on manufacturing the vehicle. ACA No. 2 – Hire additional skilled workers and employees whose specialization is designing cars and provide continuous training for the old and new workers. Pros  Increase on man-power that help increase production.  The customers will be offered different kinds of new models. Cons  This will be added cost to the company. ACA No. 3 – Increase emphasis on marketing the products and not just focusing on selling it. Pros  Through advertisements, the new models could easily catch the attention of the public.  The customers could easily identify their brand from the other competitors. Cons  It will be an added cost to the company. VII. Conclusion and Recommendation Based from the facts of the case, the joint venture of Chery and Jaguar Land Rover was made in able to compete with other established global brands of vehicle, specifically in China. In order to capture the Chinese market easily, Ralf
  • 7.
    Speth, CEO ofJaguar and Land Rover, confirmed that the company would build a new factory in Chang Su, in the Jingsu Province that is seen as an ideal location for transportation to the rest of China. Considering that the target market is Chinese people, who value luxury brands and exemplary customer service, it is recommended the adoption of Alternative Course of Action No. 1 (ACA No. 1) – Chery and Jaguar Land Rover should create new designs based on the specifications of their customers. The company would be able to meet the expectations of their customers since the design is based on their specific requirements. With satisfied customers, the customer value of the company will surely increase. VIII. Action Plan and Implementation Marketing Activity Schedule  Hiring of new workers and designers.  Training of the old and new employees.  Designation of the new employees. April – June 2012  Creation of new designs for the cars and selecting 5 of it.  Announcement of the “Tailor-made Vehicles” and the release of the new models on trade shows, T.V. commercials and magazines.  Deliver the cars to the designated distribution outlets.  Distribution of fliers in malls and paste posters in distribution outlets. July – September 2012  Launching tri-media campaign of the tailor-made vehicles. October– December 2012 IX. Marketing Control  Monitor the sales of the cars on each distribution outlets on a monthly basis for three months to ensure that its target sales are met.  Analyze the buyer decision process of the Chinese people for three months and create new models based on their preferred designs.  Make a monthly report of the market shares.