Land-Rover-North-America--Inc.-(HBS-case)-[Marketi

HarvardBusinessSchool9-596-036Rev.August30,1996CharlesHughes,presidentandCEOofLandRoverNorthAmerica(LRNA),smiledashereviewedthecompany'slatestfieldreports.LRNAregistered4,503totalunitssoldinfirst-half1994,morethandoublethevolumeinfirsthalf1993.TheDiscovery,thecompany'sfirstnew4X4(four-wheeldrive)vehicleintwentyyears,wasshapingupasquitethesuccessstory:over2,000unitssoldandnearly4,000customersondealerlistsawaitingproductavailability.OtherchangestotheLandRoverline-up,includingatotalredesignoftheRangeRoverandimprovementstotheLandRoverDefender,promisedfurthersalesgainsinthecomingyear.Witha$110minfusionoffundsfromnewparentBMW,HugheshadreasontobelievethathisdreamofmakingNorthAmericathe#1LandRovermarketworldwidewaswellwithinreach.ThegamehadchangedsinceLandRover'sNorthAmericansubsidiaryopeneditsdoorsin1987.LRNAhadgrownfromadistributorshipsellingonlyoneLandRovermodeltoamulti-productfirmwiththreevehiclesunderthecorporateumbrella.Buthowbesttomanagethatline?MuchhingedongettingthepositioningfortheDiscoveryright.Thecompanyhadstraddledthefencewithitslaunchadvertising,runningsomeadstargetedtofamilieswithTheDenitiveFamily4X4positioning,andsometo4X4enthusiastswithTheEvolvedLandRovertheme.SomesuggestedthefirmshouldstressDiscovery's$20,000pricedifferential'versusitsup-marketsiblinginstead,andpositionthemodelasTheMoreAffordableRangeRover.Itwastimetostopwafflingandgetoffthefence.Astutelinemanagementrequiredcarefularticulationoffiscalyearmarketingplansaswell.Decisionsconcerningthecompany'sexperiencemarketingefforts,sponsorshipactivities,andretailingstrategieshadtobemade.Themanagementteamhadtodeterminewhatsupport,ifany,toputbehindthecorporateLandRoverbrandversusindividualmodelsintheline.Soundrecommendationsconcerningtheallocationoffundsacrossbrandsandmixelementsrequirednotor-dyadeepunderstandingofthemarketingtasksathand,butastrategicvisionofthecompany,itsproductline,andthebrandswithinitaswell.LRNAwasgrowingfast,andHughesknewthatdecisionsmadenowwerepivotaltothefuturetrajectoryofthefirm.Hughespackedupthedatahisresearchmanagerhadcompiledforhimandheadedforhome.TomorrowhewouldjoinmembersofhisPresident'sCabinetonLongLstandanddesignthemarketingstrategiesandtacticsthatwouldmakeLRNAthe#1LandRovermarketworldwide.DivergentviewsofthestrategicrolesofthedifferentmodelsintheLRNAline,andopposingvisionsofthegluethatheldthemalltogetherpromisedalongmeetingahead.Prl!essorSusanFournierpreparedthiscaseasthebasisforclassdiscussionratherthantoillustrateeithereffectiveorineffectivehandlingofanad?nznistrativesituation.Copynght9)[e-mail]rmissionto-545-7685orwriteHarvardBusuiessSchoolPublishing,Boston,?vfA02163.Noreproduced,storedinaretrievalsystem,usedinaspreadsheet,ortransmittedinlectronic,mechanical,photocopying,recording,orotherwise-withoutthesSchool.ILandRoverNorthAmerica,Inc.596-036HistoryofLandRoverTheLandRoverTheRoverGroup,whichbeganasasewingmachineandbicyclemanufacturingconcerninSolihull,Englandin1860,conceiveditsfirstfour-wheeldrive(4WD)utilityvehiclein1947.Designengineersintendedthenewvel-dcleassomethingrathersimilartoapost-warJeep,butmoreusefultoafarmer,muchmoreversatile,abletodoeverything!Itwastobeavehiclefortheland:aLandRover,asmanagingownerWilkschristenedtheproject.Wilks'productphilosophywastobuilditsimpleandstrong;creaturecomfortsintheLandRoverwouldbevirtuallyabsent,andgadgetrykepttoaminimum.TheLandRover'saustereappearancewouldserveasadesignhallmark:itwastobestarklypracticalandnotexactlyugly,butpossessiveofadistinctlyattractiveappearanceallitsown.Thevehiclewasreceivedwithgreatenthusiasmatits1948AmsterdamMotorShowlaunch.T'hereisnowsomethingwhichcaneitherberegardedasaprivatecarabletoperformvaluabledutiesotherthansheertransport,orasageneralpurposecountrysideworkercapableofprovidingcomfortable,efficienttransportation.ThisdualroleoftheLandRovercannotbetoohighlystressedbecauseitopensuppossibilitiesofthegreatestvaluetothosewholiveinthecountry,whetherundercultivationorinthewildstate.(TheAutocar30Aprfl1948)LandRoversquicklybecameaweu-establishedpartoftherural,industrial,civil,andmilitaryscenesintheUnitedKingdom.Policeandfirefighterswereoutfittedinspecially-designedLandRove'rs.AfullsixintenLandRoversweresoldtomilitarycustomers.Withinfiveyearsofitslaunch,80%ofLandRoversweredestinedforThirdWorldcountrieswherethevehicle'sfunctionalutilitywasgreatlyvalued.WhileLandRoverdesignevolvedthroughtimeinresponsetochangingcustomerneeds,carewastakentomaintainthecharacteristicLandRoverimage.Thechassis,wheelbase,bodystyle,suspension,andgenerallayoutremainedunchanged,asdidthebasicaestheticsofthevehicle.TheRangeRoverTheRangeRoveraddressedmanagement'sdesiretorespondtochangingmarketplaceneedsforamorestylish4VVDvehiclewithouttartinguptheLandRover.TheRangeRoverwasstillconsideredfirstandforemostasautilityvehicle,however.AccordingtochiefdesignengineerSpenKing,theRangeRoverresembledaLandRoverinperformance,toughness,versatility,andessentialdesignandthereforewasquiterecognizablyaRoverproduct,yetdeliveredonimportantunmetb