jaguar's passage to india - global marketing

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• Benny Herlambang• Aris Munandar• Firgosti Flamboyant• Nurul Afriyani• Gilang Pratama• Elis Solihat

• Mutia Eka M.• Hambali• Deni Saputra• Maulana Iskandar• M. Dzulfikri

Jaguar ‘s Passage to India

CASE 9-2: GLOBAL MARKET ENTRY STRATEGIES: LICENSING, INVESTMENT, AND STRATEGIC ALLIANCES

GLOBAL MARKETING

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CONTENT

Introduction Brief History of Jaguar Jaguar in Timeline

Analysis of Jaguar Jaguar’s Financial SWOT of Jaguar

Discussion Questions Solutions Conclusions


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INTRODUCTIONBRIEF HISTORY OF JAGUAR

Introduction Brief History of Jaguar Phases of jaguar




1922 - Jaguar Cars Limited, a luxury car manufacturer based in Coventry, is founded as the Swallow Sidecar Company by two motorcycle enthusiasts.

1945 - Swallow Sidecars changes its name to Jaguar, and the first Jaguars with high-performance engines are produced.

1947 - Land Rover, a British all-terrain vehicle manufacturer, rolls out its first vehicle, apparently based on an American jeep from the Second World War. The Land Rover's distinctive bodies were lightweight and rustproof, and designed to be field-serviced, giving the vehicles a reputation for longevity in tough conditions.

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1950s - Jaguar makes its name with a series of elegant sports cars and premium saloons, such as the XK 150.

1961 - Arguably the most famous sports car of all time, the Jaguar E-type, first hit the road.

1968 - Jaguar merges with British Motor Corporation, subsequently taken over by Leyland, which itself was later nationalised as British Leyland.

1970 - Land Rover launches the Range Rover.

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1984 - Jaguar is split off from British Leyland and listed on the London Stock Exchange.

1988 - Land Rover launches the Discovery.

1989 - Jaguar is acquired by Ford.

1997 - Land Rover launches the Freelander.

1990s - Jaguar undergoes a programme of modernization and expansion that ensured the broadest product range in the company's history.

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2000 - Ford buys Land Rover. The brand then becomes closely linked with Jaguar, with some models sharing components and production facilities.

2008 - Ford sells Jaguar Land Rover to Tata Motors, India's biggest vehicle maker, for $2.3bn (£1.5bn), after almost ten months of negotiations.

2010 - In the final quarter of 2010, sales of Jaguar Land Rover cars rise 11pc to 63,155, with particularly strong performances in North America, Russia, and China. Company drives towards a £1bn annual profit.

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INTRODUCTIONHISTORY OF JAGUAR IN TIMELINE





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ANALYSIS OF JAGUARJAGUAR BUSINESS HIGHLIGHT


Jaguar’s Sales Performance

- Jaguar grows especially in China and Asia Pacific, shows that as an UK brand, its global marketing strategy is quite succeed.

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ANALYSIS OF JAGUARJAGUAR BUSINESS HIGHLIGHT


Jaguar’s Profit

- Due to 2008 crisis and under new management, net profit decrease until 2010

- Increasing since 2010 until recently start 2013 Jaguar hit sales record around 450.000 unit.

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ANALYSIS OF JAGUARJAGUAR FINANCIAL REVIEW


Jaguar’s Balance Sheet

• Has a good Current Ration (2013:103.5% and 2014: 117.9%); Jaguar has a good capability to pay its debt with its current assets.

• Decrement in Debt to Equity Ratio (2013: 262.7% to 2014:165.8%); It may show Jaguar has less risk for investing.

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ANALYSIS OF JAGUARJAGUAR FINANCIAL REVIEW


Jaguar’s Income Statement

• Increase in net Profit Margin (2013:8% to 2014:10%); Jaguar shows a growing net profit and better sales performance.

• Increase in ROI (2013:9.46% to 2014:12.05%); Jaguar shows that it can utilize it’s investment better.

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ANALYSIS OF JAGUARSWOT ANALYSIS


D

W

T

Strengths• Consistent in developing

luxurious and elegant product

• Already has a good brand image in its industry

• There is a potential market in BRIC countries

• Increasing demand of luxury cars, as number of wealthy populatin in India isincreasing

Opportunities Threats• Many other automotive

industry player grow in India.

• Non-luxyry card producen start to build their luxury brand (Lexus, Infinity, etc)

O

Weaknesses• Ineffective production

time (110 hours per unit)• Identified as a expensive

and not an environment friendly product. S

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DISCUSSION QUESTIONS


1. Do you think Jaguar and Land Rover will prosper under the ownership of Tata Motors?

2. What do you think are the biggest challenges facing the Jaguar Land Rover in the next few years?

3. Tata Motors recently introduced the Nano, the world’s least-expensive car. The Nano fits Tata’s strategic goal of building a low-cost car for the Indian market. Can Tata succeed in targeting both the very low end of the auto market as well as the high end?

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Do you think Jaguar and Land Rover will prosper under the ownership of Tata Motors?

It’s can be seen that Jaguar and Land Rover will prosper under the ownership of Tata Motors. Jaguar and Land Rover has steadily increased production since it’s bought by Tata in 2008, with around 25,000 staff employed at its plants in the West Midlands and on Merseyside. Jaguar Land Rover said it has sold 425,006 cars in 2013, 27 percent up on a year earlier, with particularly strong demand for its Jaguar XJ and XF and Range Rover models.

SOLUTION DISCUSSIONQUESTION #1

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Do you think Jaguar and Land Rover will prosper under the ownership of Tata Motors?

In order to revitalize Jaguar Land Rover sales, Tata Motors has expanded its product portfolio and also enter into new global market like Asia and US where its sales are comparatively less as compare to Europe. Today their sales grew in the third quarter ending 31 Dec 2013 to 24.8%, up from 21.1% a year ago for China. Europe was No. 2 at 19.7% of sales, followed by North American sales rising by 19.1%. U.K. sales rose by 13.9%

SOLUTION DISCUSSIONQUESTION #1 (Cont.)

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What do you think are the biggest challenges facing the Jaguar Land Rover in the next few years?

Jaguar faces three main challenges:1. Threats from competitor

Many industry player expand in India (and global) along with old brand (BMW, Mercedes, Porsche, etc) or new brand (Lexus, Infinity, etc).

2. Improving its production efficiencyJaguar has 110 hour per unit production time, need to reduce it to make it as a world player in luxury car.

3. Fulfilling growing market demand in India(and global)Not only market grows for luxury cars but also for low end cars, Jaguar should be able to fulfill this demand as it need to expand.


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Tata Motors recently introduced the Nano, the world’s least-expensive car. The Nano fits Tata’s strategic goal of building a low-cost car for the Indian market. Can Tata succeed in

targeting both the very low end of the auto market as well as the high end?

Based on its annual report, Tata Motors seems to already get a success achievement in both low end market and high end market.


As they continue to have other acquisition in automotive industry like having Miljøbil Grenland / Innovasjon from Norway in 2008 and Hispano Carrocera SA from Spain in 2009, they aimed to expand their products in global.

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Tata Motors recently introduced the Nano, the world’s least-expensive car. The Nano fits Tata’s strategic goal of building a low-cost car for the Indian market. Can Tata succeed in

targeting both the very low end of the auto market as well as the high end?

Tata using acquisition strategy (high cost-high involvement), and seems to get succeed with it, continuing its Global Diversification strategy.The result can be seen as on graph showing volume growth of Tata Motors 2013-2014. Rapid domestic growth indicating Jaguar grow from Europe to globally expanding in India.

SOLUTION DISCUSSIONQUESTION #3 (Cont.)

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CONCLUSIONS


The conclusions are:1. Jaguar has a well known reputation and technology and

experience (from its history and Ford’s era)2. Jaguar, as part of global diversification strategy of Tata Motors

(by doing the acquisition), has shown a good prosper under Tata Motor ownership based on its recent financial reports.

3. Jaguar has threats/challenges from competitors, its production efficiency and growing market demand.

4. Tata shows a good growth by engaging both low end (with Nano) and also high end (with Jaguar), based on Tata growth in recent years.

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RECOMMENDATIONS


The recommendations are:1. Continue its product strategy both in low-end (Nano) and high-end

(Jaguar).2. Separate price strategy for each segment, keep its brand image.3. Put more promotion to gain more brand awareness.4. Consider to add production place/plant that may reduce its production

cost, and improving its production time.5. Consider to implement an adaptive strategy to engage more in India,

and also BRIC/global market, to gain more in local market and compete with local producer.

6. Consider to diversify its product by develop an eco-friendly product, also creating a supply for new market in environment-concern countries.

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THANK YOU

Jaguar ‘s Passage to India


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GLOBAL MARKETING

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SOURCES• Berger, R.(2014). Trends for the global auto supplier industry. Roland Berger Strategy Consultant• Keegan, W. J. & Green, M. C. (2013). Global Marketing 7th ed. Pearson Publishing.• Jaguar Land Rover Automotive Ltd. 2013/14 Annual Report. Jaguar Land Rover. [Online] [16 August

2015.] http://www.jaguarlandrover.com/media/75843/jaguar-land-rover-annual-report-2014-15-web_final.pdf.

• Parkins, L. (2013). COMPANY ANALYSIS REPORT: JAGUAR LAND ROVER AUTOMOTIVE LTD. (JLR). Elance.com

• Ganaway, M., Sammy, C., & Smith, C. (2003) A Strategic Analysis of the Jaguar X-Type. www.mcafee.cc.

• http://newsroom.jaguarlandrover.com/en-us/jlr-corp/news/2014/11/jlr_justdrive/ • http://www.forbes.com/sites/kenrapoza/2014/02/10/jaguar-land-rover-push-tata-motors-to-new-h

eights/• http://www.tata.com/htm/Group_MnA_CompanyWise.htm• http://www.tatamotors.com/investors/financials/69-ar-html/financial-performance.html• http://www.investmentu.com/article/detail/27806/tata-motors-air-powered-cars• http://www.slideshare.net/durgeshiif/tata-motors-acquisition-of-jaguar


http://newsroom.jaguarlandrover.com/en-us/jlr-corp/news/2014/11/jlr_justdrive/

http://newsroom.jaguarlandrover.com/en-us/jlr-corp/news/2014/11/jlr_justdrive/

http://www.forbes.com/sites/kenrapoza/2014/02/10/jaguar-land-rover-push-tata-motors-to-new-heights/

http://www.forbes.com/sites/kenrapoza/2014/02/10/jaguar-land-rover-push-tata-motors-to-new-heights/

http://www.tata.com/htm/Group_MnA_CompanyWise.htm

http://www.tatamotors.com/investors/financials/69-ar-html/financial-performance.html

http://www.investmentu.com/article/detail/27806/tata-motors-air-powered-cars

http://www.investmentu.com/article/detail/27806/tata-motors-air-powered-cars

http://www.slideshare.net/durgeshiif/tata-motors-acquisition-of-jaguar

http://www.slideshare.net/durgeshiif/tata-motors-acquisition-of-jaguar

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