Case Assignment Questions
Why is LRNA launching the Discovery?
The LRNA is launching the Discovery because of the Japanese crisis. They are losing their market share to the new lines of cars that Japan is coming out with. Because of the Japanese crisis, it triggered a worldwide market review. The data suggested that the 4x4 leisure sector was actually made up of two distinct user segments. The first was a group of young, childless adults that sought a product that made a visual statement about their owners’ images and accomplishments. This group wanted vehicles that were unique and different, that made them stand out from the crowd. They viewed four wheel drive as an exciting option, though they may never actually go off- roading to use it. The second group was made up of conservative buyers who were more interested in vehicles that were smart and functional, verses making a statement like the first group. They were family buyers who needed versatile and practice vehicles. Also included in this group are older traditionalists who thought of SUV’s as an alternative to traditional luxury cars. In this group, family buyers appreciated four wheel drive because of the safety benefits that came with it, and the older crowd appreciated four wheel drive because it increased road holding and handling while driving. The LRNA introduced the Land Rover Discovery because they felt that it would satisfy both segments with one product.
Why do people buy SUVs?
SUV purchasing decisions were driven by a multitude of product benefits, including product quality, product safety, product performance, and overall comfort/convenience. The SUV having major off-road capabilities played a large factor in SUV purchasing intentions. SUV aesthetics were also a big buying motivator, especially compared to alternatives.
Who is the typical SUV consumer and how is this changing?
As discussed earlier there were originally two segments of typical buying