Jaguar announced that they would be entering the luxury sports utility vehicle market segment in 2016. Common among women and family buyers is the Range Rover which is produced by their parent company, Jaguar Land Rover. They sold a cheaper sports sedan last year in Britain attracting younger customers. The new line would appeal more to families than their other vehicles. They have only released an announcement and have not given specifics on price or features yet. This new Jaguar SUV will be based off of a concept car that received exceptional reviews at an auto show last year.
Knowing your customer profiles for products is important for deciding where to market. When companies know their current and previous customers, it’s easier to know what consumers they haven’t reached. One way for them to attract new customers is to move into a completely new market segment. Although this can be a risky venture if enough research and planning isn’t done. Diverse customer groups can be analyzed to gather certain demographic and psychographic variables to better understand customers on a personal level. Certain variables such as: age, income and education level can determine what form of advertising would be more effective for each customer group.
Provided Jaguar extensively researched and planned, this move could be extremely beneficial. This would attract new customers but also help them retain this younger generation in the future. Depending on what the vehicle is priced at could determine its success. Their idea is for this to be a sporty family SUV, something Jaguar does not currently have on the market. This would probably attract older millennials who are financially established with small, young families. Millennials are currently not major consumers of Jaguar so opening up their line for this market would leave them with room to grow. If Jaguar prices the SUV too high then that would reduce the amount of people who would be able to comfortably afford this vehicle, shifting it into a different customer group which could possibly be too saturated or not high-end enough for the top tier consumers. If Jaguar successfully launches this SUV, it could only lead to endless possibilities for this classic brand.
The pictures provided are taken from the website for Jaguar's luxury SUV conceptual model . You can check out their ideas for entering this new market here!