Jaguar Land Rover Automotive Plc Marketing Essay

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Jaguar Cars Ltd is a British luxury car manufacturer, headquartered in Coventry, United Kingdom. It is part of Jaguar Land Rover business which is a subsidiary of Tata Motors. Tata Motors bought JLR from Ford Motors for a net consideration of $2.5 billion, in 2008. Jaguar's principal products include XF, XJ, XK and also F-Types and R model cars. Jaguar sells in more than 100 countries worldwide, making it one of the most popular car brands facing competition from BMW, Mercedes Benz, Porsche, Aston Martin, Toyota, Lexus, Honda, Aura and Cadillac etc. People have preferred to buy Jaguar car companies over the years because not only are Jaguar cars comfortable but they are also known for their better handling as compared to other same sized cars from different companies. Jaguar took advantage of the opportunities available in the Chinese and Indian automotive market by having a growth of 157% in India and a share of 59.6% in the 9.7% premium car segment volume increase in the Chinese automotive market. At the same time, Jaguar has had to face tough competition from other European brands who have been trying to introduce cars which emit less CO2 as the environmental regulations are very strict in both Europe and the USA. Due to the economic recession, it was inevitable that Jaguar had to postpone the sale of C-X75, a new hybrid car, because of its over £700,000 price to a customer. Jaguar should increase their advertisement budget and invest more on Research & Development to come up to the standard set by companies such as Lexus.


Summary 1st Page

Introduction 1st Page

Jaguar's Product 2nd Page

Jaguar's Competitors 2nd Page

Jaguar's Order Winning Criteria 2nd Page

Jaguar's Opportunities and Threats 2nd Page

Recommendations to improve Jaguar's strategy 4th Page

Conclusion 4th Page

References 5th Page


Jaguar was established in 1922 headquartering in Coventry, United Kingdom. It is part of Jaguar Land Rover business which was acquired by Tata Motors from Ford Motor Company for a net consideration of $2.5 billion, in 2008 (1). Jaguars' mission has been to create and build beautiful fast cars (2), it also wants to deliver a desirable range of original car offering a unique blend of sensuous style, contemporary luxury and performance spirits. Jaguar has a long tradition of creating beautiful, fast saloon and sports cars which provide their customers with comfort, refinement and an unrivalled driving experience (3). This report includes the various products, opportunities and threats and the techniques that Jaguar should adopt to improve their strategy.


Jaguars' principal products include the cars that have been mentioned in Table 1.0.



A true Jaguar sports car; the latest in a distinguished bloodline. Engineered to deliver a driving experience that is intuitive, instinctive and alive. (4)



Sports car styling, saloon car luxury. XF. It won the 'Executive Car of the Year' award, in 2008. (5)



The luxury saloon has evolved. The XJ merges contemporary styling with exceptional performance. Its Supersport engine can accelerate from 0-60 mph in 4.7 seconds. (6)

XF Sportbrake

XF Sportbrake

XF Sportbrake. Jaguar's stunning new estate car. (7)



XK, XKR and XKR-S. All created to make the heart race. All available in a choice of coupe or convertible. It was introduced in 2006 to replace the old 1996 XK8 version. (8)


The XFR, XKR and new XKR-S. Supercharged performance to make your heart race. (9)

Table .0


Jaguars' main competitors have been mentioned in the Table 2.0 below.

The Jaguar Car company faces competition from various other companies; Audi AG, BMW, Mercedes Benz, Porsche, Aston Martin, Toyota, Lexus, Honda, Aura, Cadillac, Mazda, GMC and Bentley (10). In the United States of America itself, its main competitors are BMW, Porsche, Lexus and Audi (11).

Table .0 Competition

Why buy Jaguar cars (Order Winning Criteria)?

Jaguars order winning criteria has been mentioned in Table 3.0 below.

Customers prefer to buy Jaguar cars because over the years they have grown to be loyal to the Jaguar car company because it not only provides high quality drive but it also designs its cars with a historical touch that people have liked over the years. With the comfort, reliability and luxury that the Jaguar cars provide, buying from them is not just an option but a choice they have made. It has been noted that the handling of any sized Jaguar car is on average better than other cars. Along with this, Jaguar markets its cars through celebrities such as Lana Del Rey (12) and also Prince Charles owns a Jaguar which gives their followers an incentive to buy the same car as their idols.

Table 3.0 Why buy Jaguar cars?

Opportunities and threat for Jaguar in the next three years?

In the next 3 years, the new products that the jaguar company launches will be able to keep the consumers interest. This is already starting to have its affect; Jaguars had a share of 59.6% in the 9.7% premium car segment volume increase in Chinese automotive market. This was due to the introduction of the new XJ 3.0 petrol model to the market in March 2011.

Emerging economies like India and China are a good market to invest more in. Jaguar saw the result of introducing Jaguar 2012 model year range (incorporating the XJ, XF and XK) during 2011-2012 in India through a growth of 157% over the previous year (13). Investing more into these countries will not only increase the profit, whose effect can be seen in Figure 1.0, but it will also make the brand more popular.

Jaguar Land Rover Automotive PLC

Coventry, CV3 4LF (England)

Registered no 


Not publicly quoted



The GUO of this controlled subsidiary is TATA MOTORS LIMITED

Evolution of: Profit (Loss) before Taxation (2008 - 2011)

Figure (14)

Moreover, positive outlook that a company gets from the work done toward the creation of a hybrid car is greatly appreciated. This is due to the overall increase in the demand for eco-friendly cars. Jaguar has ceased this opportunity to create a good impression. Which is why, they have started introducing two hybrid cars; C-X16 and C-X75 in the US (15). Also, Jaguar has been lead organization in project 'Limo-Green'. The 'projects aim is to demonstrate a vehicle with sub-120 gm/km whilst maintaining the "premium-ness" of the vehicle.' (16). Jaguar also complies with both TS 16949 Quality Standard and ISO 14001 Environmental Standard (17).

However, Jaguar faces tough competition from other European brands. This competition is likely to intensify in the next few years. To counter this, Jaguar must keep on grasping every opportunity which will increase their growth.

Jaguar has significant operations in the USA and Europe where there are stringent regulations relating to vehicular emissions (18). Since Jaguar premium cars are known to be emitting CO2, it has in recent years tried to address this threat by introducing cars emitting less than 150g/km CO2 (19).

Jaguar is exposed to various risks including the uncertain global economic conditions, fluctuations of currency and the rising cost of raw materials (20). The global economic recession of 2008 has done significant damage to the European and the US economy. The US economic growth is projected to average between 1.5% and 1.7% in 2011-12 (18). Due to this, Jaguar faces the threat of not only low return on capital employed but also severe damage to their reputation if things do not go the way they have been planned. This has forced Jaguar to postpone the sale of C-X75 because it will cost over 0.7 million Pounds to a customer. Along with this, the company will not be able to make profit which is basically the main aim of any company. This results in the downstream of the Jaguar premium cars.





Stringent Environmental Regulations have been imposed in the USA and Europe.

Higher minimum wage rate in the UK has forced Jaguar to venture into Chinese and Indian market where cheap labor is available.

Recent economic recession has had its effect on the global demand.

Fluctuation of Currency and rising cost of production have made an impact in the Automobile industry.

People did not generally consider Jaguar to be a good brand.

It was considered to be an 'Old man Car'.

Cars did not have enough technical know-how to be able to reduce the cost of its new hybrid C-X75 because of which it costs over 0.7 million Pounds.

Other car manufacturers have really good technical expertise which have made them better.

Table PEST Analysis

How can Jaguar improve their strategy?

Jaguar should market their products more efficiently and use word of mouth to be one of the techniques used to market their cars. This way, if a person hears someone they already trust recommend a Jaguar car, then they will automatically believe that the Jaguar cars are something to look forward to. Also, Jaguar should also produce smaller cheaper cars so that people who cannot afford the highly priced executive cars could also become proud owners of a Jaguar. This is a technique which most of the other car company's use to gain a high market share. Toyota, Honda and Ford all produce a different range of cars. This has led them to a great market share.

Jaguar as a company should diversify its range of products. They could produce different variety of products related to their cars. For example; Porsche has a subsidiary company, Porsche Design, which produces and sells different accessories such as cases for mobile phones, tablets, bags and other items such as shirts and shoes (21). Jaguar could do the same and improve their brand image and reduce the burden of earning profit solely through their cars.

Moreover, Jaguar in recent years has tried to successfully lower the average age of drivers from fifty years of age to forty years (17). Although the aim of Jaguar is thirty-six, I think that lowering the average age to twenty-seven would be a good choice. By doing this, the company will produce a range of cars that will be sporty in not only design but also performance. This will attract the younger generation; therefore, increase the profit margin for Jaguar.

Jaguar has a rule that if an employee saves Jaguar money, then s/he will get 5% of the amount of money saved (17). I think Jaguar should increase this percentage because then the workers will get motivation to find economical ways of manufacturing the same products with the same or less resources.

Furthermore, Jaguar has built the new XJ from aluminium only. This has made the XJ not just fast due to less weight but also very resistive. Jaguar could use the same material to build other cars which will attract more customers who look for durability and resistance more in cars rather than price.

Jaguar spent 243 million Pounds in 2012 on Research and Development (20). At the same time, other companies such as Toyota spent around 5.3 billion Pounds on Research and Development (22). This shows that Jaguar needs to invest more on R&D to compete against other companies and be able to introduce new cars.


It can be seen that to make most from the opportunities available to Jaguar, they will have to keep on investing more in the Indian and the Chinese automotive market. Also, investing more in Research & Development would be worthless unless Jaguar sees the result through cheaper and more efficient hybrid cars. This would win more eco-friendly customers who will generate more revenue for the company. To reduce the effect of the global economic recession, diversification is one of the main things that Jaguar should consider doing since that way they will be able to earn profit from different products and not just cars, thus, reducing risk.