GOA INSTITUTE OF MANAGEMENT

Project Report

On

JAGUAR CARS

Submitted To:

Professor N. Meenakshi

Submitted by:

GROUP 5(Section A)

Gaurav Sharma (2015015)

Samyukta Paul (2015045)

Achyut Razdan (2015005)

Pranav Kakkar (2015035)

Milind Chauhan (2015025)

Sonia kerkar (2015055)

Introduction

Jaguar is a brand of Jaguar Land Rover which is owned by the Indian company Tata Motors since 2008.

Jaguar's business was founded under the name of Swallow Sidecar Company in 1922, originally making

motorcycle sidecars before developing bodies for passenger cars. Under S. S. Cars Limited, the business was

extended to complete cars. S. S. Cars was renamed as "Jaguar" in 1945. It merged with British Motor

Corporation in 1966,and then in 1968 it merged with Leyland Motor Corporation and became British Leyland,

itself to be nationalised in 1975.Jaguar was de-merged from British Leyland and then was acquired by Ford in

1990.

Jaguar has, in recent years, manufactured cars for the British Prime Minister. 

Jaguar cars today are designed in Jaguar Land Rover's engineering centres located at Coventry and

Warwickshire, and are manufactured in Birmingham, The Company today employs over 10,000 employees.

Segmentation, targeting and positioning strategies of the brand in the

Indian market

Jaguar has always been in a leading position. It continues to occupy in spite of occasional budget constraints, the

position of being a product that provides ultimate customer satisfaction. The primary marketing objective of

Jaguar has been to strengthen its brand equity and achieve retailing mileage out of that.

Market segmentation involves dividing a broad target market into subsets of consumers, or countries who

have, or are perceived to have, common needs, interests, and priorities.

Targeting refers to choosing only those segments which seem attractive to the company and the company has

the capability to serve.

Jaguar uses the following bases for segmenting the consumer market and has targeted these segments

effectively by aiming at what customer from each of these segments look for.

1. Demographic Segmentation :

Demographic segmentation divides the markets based on variables such as age, gender, family

size, income, occupation, education, race and nationality.

Jaguar has done this segmentation based on factor such as age, gender and income.

Targeting:Jaguar came out with Jaguar S-type which was targeted at the younger customer base.

The XE sports Sedan had a dual target, theyouth and women.

Jaguar’s XFR, XJL Super sport and XKR-S models are basically targeted at confident,

well-educated and intelligent individual who create businesses, technologies and lifestyles that

have an impact on our culture.

The Jaguar XF series targeted the luxury car market (> Rs. 25 lakhs). This was for the high

net worth individuals in India.

Based on age, Jaguar has targeted the following groups, viz.

Successful professionals in the age group of 30-45 (singles and couples)

Executive families in the 40-50 age range (2+ children)

Aged individuals (couples aged above 50).

2. Psychographic Segmentation :

Psychographic segmentation is done based on lifestyle and personality traits.

Targeting:With commercials like “Captured: Jaguar at play”, Jaguar tried to attract the confident,

powerful, independent individuals who love dynamism. The commercial used three of Jaguars

sports cars, viz. Jaguar’s XFR, XJL Super sport and XKR-S models to inflict upon the viewers

a sense of power and exhilaration when they sit behind the wheels.

Jaguar’s luxury car range are targeted at those consumers who are successful, aristocrat and

have a status and lifestyle to maintain.

Brand Positioning

Positioning is a strategy that aims to make a brand occupy a distinct position, relative to the other competing

brands in customer’s minds.

The positioning strategy of Jaguar needs it to differentiate itself from its direct competitors, BMW, Audi, and

Mercedes in terms of performance, dependability and styling. All of its competitors being in the luxury car

brand range, Jaguar’s Point of Parity (PoP) lies in its constant appeal to the niche market of high net worth

individuals in the country and, its launch of expensive sports cars.

At the same time, Jaguar has managed to brand itself as truly different from its competitors (PoD) by positioning

the brand as animate – seductive, emotional, unique, energetic and high performance – while posing the

question, “How alive are you?”The “Alive” campaign targets luxury consumers who are contemporary,

sophisticated and daring, and have a desire for authentic, independent brands. It also appeals to a more youthful

audience, while not alienating its current demographic.

Jaguar then launched a rebranding campaign with a new logo and a revamped brand image. In an attempt to

modernize the brand and appeal to a younger demographic, Jaguar introduced some elements into its logo

design that looks more 3-dimensional and introduces a chrome gradient effect.

The primary message of the campaign was Jaguar is ALIVE. It is a car not so much manufactured as is created.

The campaign was designed to capitalize on the existing emotional pull of Jaguar’s vehicles.

Evolution of STP strategies

Jaguar was launched in India in 2008 after it was bought by Tata Motors from Ford. In 2008 there were few

models to offer to Indian customers because of the price. As being a foreign brand all the cars were imported to

India due to which a hefty excise and customs were levied thus making them in the reach of few people.

Initially they were segmented and targeted for the following classes

Rich businessmen and industrialist

Top executives of big firm

It was positioned as top end luxury and premium car brand with class and elegance.

In 2010 they sold 884 cars including corporate order. With these sales they weren’t gone reach anywhere , thus

they change in strategy.

From the following points we can see the shift in these strategies

They started assembling and manufacture of cars here in India which gave them respite from hefty

excise and duty, thus making their car cheaper and competitive

Introduction of new models XE which is targeted to young executives, small businessmen thus

expanding their reach

They kind of shed their luxury corporate image with introduction of sport car model Jaguar F type to

tap the population which love sports car

Penetration in tier two towns like Aurangabad, Ludhiana etc. through which they increased their

Sales

Due to these changes their market share increased

Market Share in 2010

Other carsJaguar

Market Share in 2014

OtherJaguar

Influence of environmental factors in shaping the STP strategies

For any business to grow and prosper, managers of the business must be able to anticipate, recognize and deal

with change in the internal and external environment. Environmental analysis is a tool to identify all the external

and internal factors that can affect the organization’s working.

PEST analysis is the most effective tool to anticipate the impact of the environmental factors. This tool provides

a holistic picture of the situation. It strategizes on the basis of Political, Economic, Social Cultural and

Technological factors.

Impacts of Political Factor

Support for globalization- Political parties are

motivating for globalization

Strong reputation and trust- New vehicle buyers

choose dealer based on reputation

Low import duty

Government golden share in the company- Designed

to prevent takeovers

Impacts of Economic Factors

Highly trained and low cost work force

Competitive labor cost model

Highly mobile work force

Economic developments have led to major upturn in

demand for luxury cars

Oil prices and interest rates reduced

Impacts on Social Factors

High uniqueness factor

Moving towards Eco-friendly cars- Introduction of Jaguar XJ-e

Technological awareness increases demand

Promoting engineering career

Impacts of Technological Factors

Technological diversification- Aerospace Industry

Advanced production process

Match new technologies- Intelligent self-learning cars

User can study all intricacies online

Strong R & D facilities- Collaboration with Intel

Strong tie up- Chery Automobile Company, Universities

Other Factor Influencing the Strategy

Impacts of Demographic Factors

Increasing High-Net-Worth Individuals- Grew at 20.8% to 1,53,000

Target Audience- Male/Female between 30-50

Trend for newer brands and higher environment friendliness

The PEST analysis proves that Jaguar has a very external environment.

Analysis of the attractiveness of the luxury car industry with respect to

Jaguar

Suppliers’ bargaining power: between low and medium

The balance of power between supplier and car manufacturer in the luxury car industry is normally tilted in

favor of the car manufacturer, since the suppliers are numerous and often small-medium in size, while car

manufacturing companies are much larger and globalized.

In the luxury segment such as Jaguar’s, suppliers are less weak, since luxury cars require exclusive materials

and manufactured parts of high quality (such as real leather and real wood interiors, high-technology devices

for entertainment) which only a smaller number of suppliers are able to deliver. This makes the switching

costs for luxury car manufacturers greater than those of mass market manufacturers. Also to be considered is

International sourcing, which is less of a threat, stemming from the need to preserve the image of excellence

and prestige which can restrict the ability to purchase parts from firms located in emerging countries.

Thus, power of supplier in the luxury car industry can be rated as fair. Jaguar acquires most of its parts and

assemblies from foreign suppliers such as Autoliv BKI Spain,the world’s largest automotive safety supplier

(airbags, seat belts, and passive and active safety systems), Continental Automotive Systems Slovakia (brake

callipers), Brembo Poland (break discs) ZF Lemforder UK (assemblies, suspension, driveshaft, brake

assemblies etc.) amongst others.

Customers’ bargaining power: medium-high

The power of buyers in the luxury car industry is also quite fair. Customers have a significant amount of power,

mainly due to the choice of large variety of luxury brands and product, and because of the presence of

substitutes. Customers can choose from many different brands and car models, with widely differing

performance, quality, appearance, pricing, additional features. This allows the customer to freely choose the

product that best fits her preferences, status and lifestyle. The Internet has improved customers’ access to

information about the characteristics of car models, and to the experience and reviews of past users and

experts. That forces premium car makers to improve continuously quality in order to not fail to meet the high

expectations of customers and also to not fall behind competitors’ innovations and improvements.

Once a customer has purchased a car, there are moderate switching costs to change to another, since the current

car’s value will have to be reduced when it is sold in the used car market or returned to the car dealer. Brand

loyalty in the luxury car segment is higher than for lower-end cars, since customers tend to develop a closer

emotional relationship between their self-image and their car and brand (provided that the expectations are

being met).

Another favorable factor for car companies is that the size of buyers and of their individual orders are small,

since most of the customers buy only one car every some years, reducing the significance of the behavior of an

individual customer.

The presence of many substitutes to luxury cars enhances significantly the bargaining power of potential

customers. Customers likely become more cost conscious and switch to less glamorous but cheaper and more

efficient “normal” cars and thus may choose to use any of a wide range of transportation devices instead of

luxury cars.

Threat of substitutes: medium-high

Luxury cars fulfill basically two needs for customers: provide a means of transportation, and assert the

privileged status of their owner. The first need can be fulfilled by a variety of other products, such as other

types of cars, motorbikes, bicycles, public transportation systems, planes. The most recognizable substitutes

for the luxury cars from Jaguar are either cars rolled out by Audi, BMW and Mercedes-Benz or higher-end

cars from ultra-luxury brands (Rolls Royce, Ferrari, Bentley, Lamborghini), or at the other end of the

spectrum, less expensive cars from non-luxury brands (Ford, Toyota, General Motors, Fiat).

Higher-end brands can exert additional pressure by introducing some car models with lower-than-usual prices or

special discounts to allure customers with lower incomes than their traditional customer base. At the same

time, technological progress allows non-luxury car makers to include in their cars more and more of the

features and amenities initially reserved to luxury cars (for instance driving-assisting systems and touch

screens), forcing luxury brands to innovate at a fast pace to keep the appropriate level of differentiation and

superiority.

Another major threat to car manufacturers’ sales is the presence of the used cars markets.

Premium brands of motorbikes such as Ducati and Harley-Davidson could be considered suitable substitutes

for luxury cars as both a transportation device and a status symbol.

Threat of new entrants: between low and medium

The luxury car industry is protected by significant barriers to entry and thus the threat of new entrants is

relatively low. One of the most significant barriers comprises the brand equityenjoyed by most established

brands. The repute of the brand is extremely important to customers; luxury brands such as Jaguar, Mercedes-

Benz, BMW and Audi have a long and magnificent history to boast about, and the companies work hard to

preserve the association between them and other symbols of individuality and of top-notch quality and

performance.

Although several Asian companies have developed new luxury brands to compete with the traditional European

and American brands, it is extremely difficult for challengers to match the prestige of brands with years of

history.

Another challenging barrier to entry is the huge initial investment required to enter car markets in general. Large

amounts of capital are required to set up manufacturing facilities and invest in R&D, among other large

expenses. This also creates large sunk costs and makes it hard to achieve economies of scale. The capital

requirements are one of the main reasons why new luxury brands have been produced by companies which

were already present in the market as large car manufacturers (Toyota’s Lexus and Nissan’s Infiniti) and not

by new, free-standing, companies.

Other protective factors include the high degree of product differentiation and of competition in the industry,

which make it less attractive.

Competition between established firms: high

Competitive rivalry in the luxury car segment is extremely high as Luxury car concentration in the industry is

not very high in the advanced markets, and a variety of very different brands with different origins and tactics

compete. The rivalry between companies is rather intense, especially with Jaguar in the Indian market mainly

due to the presence of the three global leaders: Audi, BMW and Mercedes-Benz. These three companies

compete hard to attain not only market leadership in all the major markets, but also to be recognized as the top

luxury brand in customers’ perception not only in India but every country across the world. The ascent of

Jaguar from “outsider” to “significant challenger” to Audi, BMW and Mercedes Benz has further contributed

to make rivalry even harsher. Further to this, the competition has extended from the advanced markets to the

emerging markets, where each company hopes get a privileged grip to take advantage of the future growth of

middle classes.

Jaguar explicitly recognizes each of the three companies as competitors, and their public statements and

advertising and promotional campaigns make provocative comparison between the cars as to performance and

innovativeness. Technological innovation is one field of fierce competition, as each of the companies claim to

be technological leader in the industry. Competition on pricing is also intensified.

In addition to the old competitions between market leaders, there are also challenges posed by the new luxury

brands developed by the large successful Asian car manufacturers such as Hyundai, Honda, Toyota and Nissan

which are challenging the Western brands including Jaguar in their home markets by developing new brands

and offering customers cars with lower prices and better fuel efficiency.

The presence of significant sunk costs is a barrier to exit which causes even companies in loss to stay in the

market, thus increasing the degree of competition in the industry.

A Complementary 6 th Force :

The complementary segment in the luxury car industry is relatively significant as this factor provides for a

dynamic component to the 5 forces frame work. This factor allows the industry players to acknowledge their

interdependencies. A complementary product in this context would be anything related to usage of the luxury

car and would include and not be limited to fuel, tires and services such as insurance, loans etc. When a

manufacturer has total control over these services or goods, it imparts to him a significant advantage over his

competitors and the complementary goods only provide for added value, apart from achieving added power

over supplier and consumer all at once. This helps to minimize competition and provides for a clear advantage

to the manufacturer. For example: Tata’s Financial Services as a complementary that can assist/provide for

Jaguar’s sales in India.

To conclude, the luxury cars industry is moderately attractive considering the relatively low suppliers’ buying

power and threat of new entrants alone; but taking into account the high buyers’ bargaining power, the high

threat of substitutes and the intense degree of competition between the top companies, the overall profile of

industry is rather unattractive.

Understanding consumer behaviour

Luxury cars like jaguar are preferred by HN1 (high Net worth individuals).These individuals want to

differentiate themselves from the crowd and project themselves as the high social status individuals. High social

status from perceived brand image of Jaguar is the most common driving factor of its segments. Jaguar has

presence in terms of their showrooms and its dealer outlets only in the very premium urban areas of India.

Jaguar cars are financially confined for many people, and therefore seen as “true status symbol” or a “symbol of

sheer success”.

Factors that influences Consumer Behaviour

Socio-cultural Factors

Customers of Jaguar have high sense of prestige and status wherever it travels. Jaguar cars are not for masses at

all rather it focuses it on the classes. The exclusivity and uniqueness of jaguar influence the brand conscious

consumer. Marketers of Jaguar have tapped on the status-symbol potential of the brand “jaguar”.

Personal Factors

Occupation and economic circumstances of the customers influences consumption patterns. The purchasing

power of Indians is in an increasing trend. Increase in disposable income of the consumers has influence the

buying behaviour of the consumers. Also, Brand personality of Jaguar: upper-class, exclusive, classy,

sophisticated, also attracts the consumers with the same personality. Lifestyle preferences of the Indian

consumers have changed with the shift of consumer attitude towards from affordability to quality, pleasure and

design which has suddenly accelerated business in luxury car segments.

Motivation and perception

The brand Jaguar fulfils the esteem needs and Self-actualization needs in the Maslow’s Hierarchy of Needs.

Jaguar’s Super luxury cars have become as the status symbol and a matter of esteem. Consumers of jaguar like

to flaunt their cars as their prized possession. The frequent use of jaguar cars stimulates the perception of an

“ultra luxury life” the consumers gain from their possession. Jaguar‘s “unique driving experience” is one of the

consumer’s motivation factor.

A Brand Awareness consumer centric campaign ALIVE was launched to tap on the Indian luxury car segments.

The Brand awareness of jaguar was low when it came to India. So, company decided to launch a consumer-

centric campaign – “How Alive are you?” to establish the “Jaguarness”of its products.  

Product Life Cycle

GLOBAL TREND

Swallow Sidecar company launched its first product ‘motorcycle sidecars’ in 1922. In the following years it

started expanding its business by producing complete carsfor passengers. In 1931, the famous S.S models were

launched and in 1935, the name Jaguar was adopted by the company and S.S model were renamed as S.S

Jaguars.

After 1950’s we saw a further surge in the company’s growth rate and the strengthening of the market share.

Lyons and his senior engineers, decided to come up with a product which was stylish and had real performance.

Only a handful of them were supposed to be built. The XK 120 which was built on this thought process stole the

1948 motor show. This growth continued till 1960’s but Jaguar lost its independence as it got merger British

Motor Company to form British Motor (holdings) Limited. Within no time, it was realized the combination was

poor with too many financial difficulties.

Over the next few years, insufficient capital was the major reason for Jaguar to not come with a new product. In

July 1984, Jaguar was listed as a separate company on the stock market to track its own record. The main

problems faced by jaguar at this time was quality control, lagging delivery schedules and poor productivity

In 1980’s, Ford bought Jaguar and over 20 years spent about 10 billion dollars to keep the brand floating in the

market. Jaguar reported loss year after year which ended in 2008 when Tata Motors came into the picture.

INDIAN TREND

In case of JLR India, the product was launched in 2009 entering the introduction phase of a new product. Within

two years we see a regular growth of the product. The products haven’t reached the maturity level as it will be

too early to come to that conclusion. That is why our product life cycle only shows first two phases of PLC.

 In 2014, we see a small drop in the sales as it was due to the discontinuation of Freelander and some issues in

the manufacturing plant in Pune. Looking at the trend in India, It is expected to grow at higher pace and with the

launch of XE model in the upcoming year, it will be able to take on AUDI, BMW and Mercedes lower end

models.

Sales

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