Jaguar Land Rover Limited is an automobile manufacturing company based in the United Kingdom. Its headquarters is in Whitley, Coventry. The company designs, manufactures, and sells vehicles under the brand name of Jaguar and Land Rover. Luxury and sports vehicles are manufactured by this company. Although both Jaguar and Land Rovers have a long history, they were merged in 2008 to form Jaguar Land Rover. The company was later acquired by Tata Motors of India and declared as its subsidiary. The company is known for its innovative and unique designs that offer luxury, class, and various functions inside the vehicles. In 2018, the company sold 439,749 units under the Land Rover brand name and 174,560 units under the Jaguar brand name (Jaguar Land Rover, 2019). In 2018, the company generated revenue of 25.8 billion pounds and had more than 43000 employees (Jaguar Land Rover, 2018).
Following are the four dimensions of the Ansoff Matrix for Jaguar Land Rover:
Market Penetration
This is the promotion of existing products in existing markets. Jaguar Land Rover does this in various ways. The first strategy the company uses is to sponsor various sporting events. This helps promote the company’s products. It may even showcase its products during these events to promote them. Sporting events are an excellent strategy to promote company products. Another strategy the company uses to offer newer variants of already existing models with greater functions and improved performance. This helps develop a greater attraction by the consumers. The company also offers various forms of maintenance and after-sales services to help consumers ensure their vehicles perform well. The merger of both of these brands has helped increase its market share and reduce competition. Jaguar Land Rover also has strategic alliances with sports and other companies to help promote its products.
Market Development
Market development is done through the promotion of existing products in new markets. The best strategy for market development for Jaguar Land Rover would be to geographically expand. Currently, the organization has five production units in the United Kingdom and one in India. It can further expand this to establish manufacturing units in Australia and North America for sales in those markets. This will help reduce product prices as they no longer would need to be exported to those regions from the United Kingdom or India. Another strategy the company can use is to offer its vehicles in various variants catering for those with a smaller budget but with a desire to purchase a luxury or a sports vehicle. This will help create new market segments in its existing markets it can target. The company can also amend certain aspects of the vehicles to suit the markets it wants to enter. This will help increase sales in the new markets the company wishes to enter. Each market development effort requires a strong promotional campaign as well.
Product Development
When a new product is launched in an existing market, a company attempts product development. The main product development strategy the company uses is to launch new products. These can be new models being launched for the first time or new models of earlier vehicles being already sold. Each model offers a new design, improved specification, higher creativity, and better performance. In the luxury automobile industry, new models are greatly awaited by enthusiasts and brand lovers. Jaguar Land Rover invests millions of pounds each year in its research and design efforts to create new designs (Jaguar Land Rover, 2016). The products go through various product development steps, quality checks, and tests before they are launched. Each product launch is supported by an aggressive marketing campaign to ensure success.
Diversification
Jaguar Land Rover operates in a single industry. It has great potential to diversify in various ways. It can vertically diversify by manufacturing its own components which it currently purchases from suppliers. It can establish its foundry and other units to create these parts. It can also develop its own logistics system to deliver the units to retail outlets. This will help increase supply chain performance. Jaguar Land Rover also has the potential to diversify into unrelated industries such as heavy machinery, consumer electronics, non-luxury vehicles, smartphones, and so on. The successful brand name and ability to innovate can be a winning factor leading to successful diversification.
References
Jaguar Land Rover, 2016. Annual Report 2016. [Online] Available at: http://annualreport2016.jaguarlandrover.com/assets/jlr_ar_2014-15.pdf [Accessed 18 Jan. 2020].
Jaguar Land Rover, 2018. Annual Report 2018. [Online] Available at: https://www.tatamotors.com/wp-content/uploads/2018/07/27060927/jlr-annual-report-2017-18.pdf [Accessed 18 Jan. 2020].
Jaguar Land Rover, 2019. Annual Report 2019. [Online] Available at: http://annualreport2019.jaguarlandrover.com/ [Accessed 18 Jan. 2020].