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
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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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INTRODUCTION
BRIEF HISTORY OF JAGUAR
 Introduction
 Phases of jaguar
 SWOT of Jaguar
 Solutions
 Conclusions
 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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INTRODUCTION
 Introduction
 SWOT of Jaguar
 Solutions
 Conclusions
 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.

5
INTRODUCTION
 Introduction
 SWOT of Jaguar
 Solutions
 Conclusions
 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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INTRODUCTION
 Introduction
 SWOT of Jaguar
 Solutions
 Conclusions
 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.

7
INTRODUCTION
HISTORY OF JAGUAR IN TIMELINE
 Introduction
 SWOT of Jaguar
 Solutions
 Conclusions

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ANALYSIS OF JAGUAR
JAGUAR 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 JAGUAR
JAGUAR 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 JAGUAR
JAGUAR 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 JAGUAR
JAGUAR 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 JAGUAR
SWOT 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 DISCUSSION
QUESTION #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 DISCUSSION
QUESTION #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 efficiency
Jaguar 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.
SOLUTION DISCUSSION
QUESTION #2

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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.
SOLUTION DISCUSSION
QUESTION #3
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 DISCUSSION
QUESTION #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
21
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-
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.slideshare.net/durgeshiif/tata-motors-acquisition-of-jaguar

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