Marketing Audit of Jaguar Land Rover Company on Sustainability

Executive Summary

The marketing audit of Jaguar Land Rover Company on sustainability reveals many elements that the organization must implement in the company’s future strategic development. The company faces stiff competition from other automotive companies like Audi, Mercedes Benz, and BMW, placing the company on the receiving end of implementing strategic choices for sustainability more effectively. The marketing audit shows that the company must invest in cost-effective and adequate human resources to realize its mission and vision effectively. The intense involvement of the leadership in decision-making in adopting recyclable resources is among the essential considerations of the company in its efforts to achieve success. The report evaluates all the macro-environmental factors, micro-environmental factors, and strategic choices that can be adopted to transform the company’s sustainability. The report covers all the processes in implementing and controlling the strategic choice.

Key Words

Differentiation focus– is a competitive strategy of the company to outperform others by narrowing the market coverage.

Social-culture climate– refers to the trends in consumer behaviour or perceived notions over a given product.

OKR tool– Objective and Key Results

A balanced scorecard is a system of management that gives in-depth feedback on the internal and external factors affecting an organization.

1.0 Introduction

1.1 Introduction to Marketing Audit

The role of a marketing audit is to promote effective competition by enhancing effective decision-making (Hakimovna & Muhammedrisaevna, 2022). Jaguar Land Rover, an automotive company, located in Lode Lande, Solihull, England, faces stiff competition from companies like Audi and Mercedes Benz (Carroll, 2022). According to Hadrian & Stets (2020), consumers often change their tastes and preferences influenced by many factors in global marketing. Fast changes in technology and tremendous increases in competition make many automotive companies develop the competitive mechanism to establish the underlying perception and customer loyalty. The Land Rover report aims to establish the protocols and policies that the management will put in place to ensure effective sustainability in the market trends (Carroll, 2022). The marketing audit’s greatest contribution is to enhance the company realize its mission and vision which are summarized in Appendix A.

1. 2 Land Rover Company Background

The Land Rover Company has frequently faced challenges meeting the market’s fast-changing social corporate responsibility trends. Companies like Toyota and Audi have embraced biodiversity and water during its operation (Enderwick, 2020). However, since 1948, Land Rover has given little interest to its governance. The Rover Company was the first owner of the automotive company that embraced limited operation in its ownership. Despite frequent changes in ownership and governance, the company 2013 was co-owned with Jaguar acquiring the name Jaguar Land Rover Company (Carroll, 2022). Further, Tesla Automotive Company has been proven to change customers’ tastes and preferences by engaging in extensive market research. Besides, the company has not been able to interact frequently with the upcoming generation to keep a wide taste of its automotive in all age brackets of customers.

A tremendous change in technological preferences has affected the automotive industry. Areas such as digital marketing and branding have taken a new shape, which Jaguar Land Rover has not considered in achieving sustainable operations (Túry, 2018). The advertising and customer service since 2020 has been changed in a manner that is new to the company. An audit of sustainability to determine which strategies are not working for the company is important. The auditing will expose the company to new ideas that will increase its market share through customers widening the market share. Moreover, the audit will help the company better understand the close competitors in the automotive industry.

The marketing audit on sustainability will embrace the use of external and internal markets of the company. The external factors focus on global factors like global warming, social factors, and the ethical elements of the company’s operation (Choudhary et al., 2022). In addition, the local requirements are essential in understanding the sustainability condition of Land Rover in its current market state. The impact of technology sheds light on how the company will invent and adopt multiple technology concepts to ensure its sustainability. The internal factors, including the employees and management culture, form the basis for sustainability in all areas (Bandeira et al., 2022). The marketing strategies have embraced the use of social media in the past ten years, creating a significant twist in the cost of marketing. The use of social media such as Twitter and Facebook in understanding the company’s condition is regarded as essential in reaching out to every generation. The process and structural requirements of robust marketing have been based on the efficiency of incorporating social media in marketing (Hąbek & Lavios, 2021). Also, automation and live streaming in various media channels are essential in understanding the company’s current marketing strategy.

2.0 Key Findings – Marketing audit

2.1 Macro-environmental factors

2.1.1 Political and Legal Environment

Automobile companies are affected by the legal measures that are established by the political class. The factors directly linked to where the company operates to affect the approach to which the company’s policies (Selvasankar, 2020). The legal requirements in the U.K. strictly recommend the reduction in the emission of CO2 into the environment. All countries have adopted the requirement worldwide where Jaguar Land Rover Company operates. The target of the legal requirement is to attain a reduction in global warming, which has increased desertification resulting in drought and hunger. Automotive companies must adopt all sorts of technologies that ensure minimal emission of CO2 gas, which leads to the greenhouse effect (Johnson, 2022). As the pressure accumulates from the environmental conservation policies, the company has most of its vehicles emitting high amounts of CO2.

Besides, the desire to provide decomposing elements from all manufacturers is part of the law’s requirement across the globe. Many countries have advised manufacturers to acquire plastic-free technologies in making their products, such as care bumpers, packaging bags, and domestic products (Hall, 2019). It is the responsibility of any company to focus on conserving the soil through the production of degradable materials. All the efforts are set to keep the soil productive for crop farming and use by wildlife to balance the ecosystem. However, Jaguar Land Rover Company uses natural rubber to produce the tyres and the lamination of the breaking pedals. The use translates to only 5% of the total materials that constitute the Jaguar Land Rover vehicles (Mikušová et al., 2018). Besides, the use of recycled aluminium in designing the exterior and some interior parts has been accommodated partially. The company has embraced recycling plastic to reduce the littering of non-degradable material in the environment. However, the use of plastic has been limited to some minor elements of the vehicles, such as the rear mirror’s casing and plastic sunroof of the cars. More than 90 of the Jaguar Land Rover materials are limited to using copper and steel for the major parts like engines and suspensions.

2.1.2 Technology

Technology in automotive companies has evolved through adopting software that helps thrive forward the classic nature of automotive (Hall, 2019). A new and efficient design has been applied to fuel consumption by companies such as Toyota and Volvo to reduce the emission of waste products. The computer-monitored technology has been applied to emit C02 at minimal levels during fuel burning. Besides, renewable energy technology is in place to help attain various environmentally friendly elements as outlined by the Climate Conservation Act. For example, hybrid engines have been recommended to minimize fuel consumption through battery charging during driving, reducing the amount of C02 emitted. The battery is charged during the shaft’s rotation helps provide power through the electric transmission to the engine’s crankshaft. Among the modern technologies, Jaguar Land Rover uses LED lights as part of the technology that reduces the wastage of energy obtained from the vehicle’s battery (Filippini et al., 2019). It must have less waste light and a high degree of useful lumen lighting compared to any technology available in lighting. The company has acquired the technology to reduce noise pollution by silencing the exhaust pipe sound.

2.1.3 Social Factors

Furthermore, the culture of the U.K. has been dynamic over the years. Most companies have embraced the increment in the retirement age of their employees. Both women and men have a retirement age of 66 (Foster, 2018). It is attributed to an increase in the productivity of the employees due to improvement in the working condition through health and life insurance. Foster (2018) denotes that the retirement age has increased by 1-2 years every decade, and it has been projected to be at 67 or 68 by 2039. The Jaguar Land Rover Company offers a retirement age of 60 years. It is six years lesser when compared with the present age established by the government of the U.K. Despite the benefits such as pension and health covers; much fresh knowledge is washed away due to the earlier retirement.

2.2 Micro environmental factors

2.2.1 SWOT analysis, SWOT Analysis, Pestle, Porters, 4PS and STP

Understanding competition in automotive companies, SWOT analysis (as shown in Appendix B) provides the most effective approach to analyzing Jaguar Land Rover’s microenvironment regarding stakeholders and competition. It is based on the demotion of the Land Rover Limited Company by half-level. One of the company’s strengths is the unified distribution channel through Cheryl distribution. The unified distribution process in 2015 has constantly helped the company meet its marketing sustainability by differentiating the roles (Choudhary et al., 2022). The main aim is to create more managing organs to accommodate the company’s management policies and cut the distribution cost.

In addition, the company uses the traditional approach in supply to help the locals get in touch with the benefits of the sales in enhancing effective positioning as shown in appendix 7.3. The traditional approach has created many jobs for the retailer suppliers of leather that is useful in the interior design of vehicles. All 100% of the suppliers are paid on time and directly from the procurement department to ensure transparency by the company (Bhattacharya, 2021). It ought to create a good reputation between the company and the U.K societies. Further, the company focuses on the bargaining power where it targets the rich as shown in appendix 7.6. Elimination of corruption is targeted through direct payment to the suppliers and distributors.

The company provides an opportunity for the customers to seek preference on the materials of their choice in the vehicles they need. It offers interior customization to vehicles like Range Rover Evoque, Sport, and Kvadrat where customization is effective to target the required class as summarized in appendix 7.5. The specifications include an opportunity to choose the interior’s condition where high-end natural fibre Eucalyptus textiles are available. The suede cloth in part of the seats is created according to the customer’s choice, whereas most cars like Range Rover Velar have been designed to suit the customer demands, which does not harm the company (Peças et al., 2018). However, the company has a weakness as recycling plastic bottles is limited to 53 bottles per vehicle to increase its efficiency, suiting the wide range harming the customer and the company’s profits as summarized in appendix 7.4.

Jaguar Land Rover Company has designed tools to protect passengers from cars rolling when making sharp corners. Besides, the fast-changing technology has resulted in the companies getting pressure from the general public and already experienced an air conditioning system that avoids allergies when in vehicles from companies like Audi and BMW as summarized in Appendix C. The system has reduced bacteria, virus, and fungi penetration as the vehicle moves from one point to another during driving. The system, designed to accommodate people with respiratory conditions, is a choice that has not been implemented fully by the company (Fletcher et al., 2018).

2.3 Marketing strategy and marketing capability

The major marketing strategy of the company is segmentation. The company uses behavioural and knowledgeable groups to design vehicles based on preference. The aim is to meet the demographic needs of a given population in the market. Comparable to other companies like BMW and Mercedes Benz, the company is considered to attain a competitive market share effectively. The strategy offers an opportunity to promote offers accordingly depending on elements such as psychographics and geography and attain the ‘guest experience (Lloyd, 2021). It allows people in developing countries access a luxury SUV that can be driven on all types of roads. People in up countries now use Ranger Rovers vehicles with a high level of customization to smoothly drive through potholes and muddy roads. Client satisfaction and an opportunity to meet the wide geographical needs have been attained.

The ability to purchase a luxurious car is based on the fact that the selective targeting is restricted to a class of the elite population. The company employs a ‘target strategy’ across a wealthy population to increase its market share. The professionals and people who assume executive positions in society are prioritized in making the cars that give them prestige (Spotlight, 2020). Wealthy family members get an opportunity to be regarded as potential customers.

The most effective element in the competitive marketing of automobiles is using existing marketing tools to reach out to the customer (Gupta, 2022). There has been an impressive approach in utilizing available resources in partnering with the local prints and media to market the company’s cars. The company uses live streaming for advertising new products. The YouTube channel of 825k subscribers has been instrumental in marketing the company (Ulas & Vural, 2019). The new inventions and technologies are well presented in the YouTube shorts of the company. It has made it effective in attaining sustainable operations by engaging the frameworks present in society. Social media platforms such as Facebook, Instagram, and Twitter have been well integrated into the company’s marketing tools.

The cost of production plays an important role in determining the value of the automobiles of any company. The cost of production through the value of materials used significantly impacts the overall purchase price of the cars. For example, BMW and Audi, in the last five years, BMW and Audi have worked together with different software developers to attain minimal production costs (Maniha et al., 2018). The partnership is significant in changing the ability to provide quality cars at the right time and place. Land Rover has adopted various strategies like customization of the cars at the regional centres to improve the total needs cost of the cars. Jaguar opening car service centres in all ist market countries provides customers with an opportunity to lower maintenance costs.

 2.4 Organizational culture

Automotive companies have assumed a culture that sustains marketing approaches that can be adopted by any automobile. The customer value marketing culture has always prioritized the client’s needs (Tuckman, 2022). Innovative marketing links existing technologies to improve customers’ experiences through creativity. Jaguar Land Rover has established a culture of societal marketing where all the products are made available through the existing media channels. For example, in the last five years, Land Rover has consistently used Guardian, the Sun, and Metro as the top print media in reaching out to the people. They interact directly with what society consumes daily to establish the frequent use of every resource. It has created an increased understanding of how the company operates and meets the client’s preferences.

3.0 Strategic Choice

Many essential market elements, such as production cost, directly affect sustainability in automotive companies (Turker, 2018). The company experiences stiff competition from other automotive companies and will need a differentiation and focus strategy to ensure it meets its goal. It has to increase customized automobiles to suit differentiation in the competitive market. Fast changes in technology and problems of climate change require the company to focus on its strengths and improve on weaknesses as much as possible to increase its market share. Thus, there following elements of differentiation and focus should be adopted by the company during the manufacturing and operation of all its activities.

The reduction of CO2 in the operation of Jaguar Land Rover is the most sustainable approach the company should take to ensure the greenhouse effect is well mitigated. It will reduce the total CO2 gas produced by the company’s automobiles and production sites. The strategic choice should include a reduction of tailpipe CO2 by up to 80% in the total gas emitted (Hamedi et al., 2021). Reducing vehicles and the operational footprint from the energy site, including all the body parts, will effectively attain the collective goal. The process will include engaging in an efficient production process where fewer CO2-emitting vehicles will be produced.

Further, in reducing the CO2 emission into the environment, the company will have to adopt the hybrid technology of running all the Land Rover engines. The academic research will form the basis of acquiring the technology that ensures minimal emission of CO2 gases into the environment. The next generation of vehicles that produce less than 120g/km of CO2 will be manufactured, making a new concept of Limo-Green vehicles in the market (Wade, 2021). All the improvements will depend on the government’s innovation agency and the transport department. The need to move away from the high emission rate of CO2 from vehicles will be well understood through the integration of Limo-Green technology in most Land Rover-powered engines. The need to provide the researchers with an opportunity to extensively engage in determining the right technology will be funded adequately by the company (Carroll, 2022). Thus, it will be effective to produce cars will minimum emission of CO2 as outlined in the climate care website.

Designing vehicles using computer models will enhance safety during car crush. The computer technology used in the car models in testing the car crash will ensure the safety of all passengers is attained (Tyagi, 2018). The biggest concern is how effectively the computer models will maximize the safety of the exact prototype of the cars. The production of a prototype car will be enhanced by conducting rigorous car crash tests and making possible improvements. The technology will effectively ensure all the passengers in the car are safe during the car crash to reduce the death rates linked with Land Rover cars.

Furthermore, customer sustainability will be attained through the engagement of the car dealers. The dealers must explain to the customers what the company is doing to ensure sustainability. The major process will involve displaying all the efforts put in place by the company on the dealers’ websites and all the TVCs at the dealers’ centres (Ramkumar, 2020). The staff will undergo training on sustainability issues, such as reducing CO2 emissions into the environment. In addition, the customers will undergo the CO2 offsetting program to ensure they adhere to the climate care standards recommended on their website.

The increase in the retirement age of employees from 60 years to 70 years will enhance the retention of experienced labour. The strategic choice is centred on ensuring a smooth knowledge transition from the experienced retiring employees to the new staff (Börsch-Supan et al., 2021). All the staff members will have a chance to mentor every new staff at their respective department to ensure no misrepresentation of knowledge and the company’s sustainability culture. Further, the proper allocation of pension at the right time and quantity to the retiring employees cater to the goodwill of the ex-workers of the company.

The company needs to increase the suppliers from the current value of 2,200 to 3,000 to broaden the intensity of the benefits to the individuals associated with the Land Rover (Ulrich, 2022). It will increase the benefits of economic growth for the company’s business partners. Besides, increasing the purchase of goods and services from multiple suppliers will support the transportation of the parts and company products. The strategic choice improves the integral part of the business where all the members of the society will benefit through garnering profits. Also, adopting the blockchain supply will increase accountability in terms of purchase and payment (Seth et al., 2022). For example, the leather supply will use blockchain technology to increase transparency. The approach includes using GPS data and all the biometrics and elements, such as leather, to track the movement of leather from the supply to the company for use.

Furthermore, social media and print media will improve the interaction between the company and the general public to enhance economic growth. Providing tenders to print media will diversify the sustainability of the company’s product to the general public. There is a need to reduce YouTube marketing as minimum benefits are linked to the community. Social media will effectively attain a cohesive interaction culture with the public (Jasiński et al., 2021). Besides, using public figures and influencers like footballers, athletes, and music celebrities will help the company increase its market share. Further, the influencers will increase customer loyalty through the psychological impact established amongst the customers. Thus, the company will have a robust social corporate responsibility that will establish a strong market base in the U.K. and across the globe.

4. 0 Strategy Implementation and Control

4.1 Strategic Planning

Implementing the differentiation and focus strategic plan will involve engagement, monitoring, and communication. The engagement of all employees through supervision by managers of every department of production will offer an opportunity for the strategic choice to be implemented (Turker, 2018). Fundamentally, the employees’ training on new marketing sustainability approaches will take place within a month. The workshop must focus on climate-friendly and customer-preference choices of production. It will open up an avenue of creating a culture that improves the well-being of the company employees and the general public. Besides, monitoring company car dealers’ relationship with the customer will be enhanced through selective benchmarking (Doyran, 2020). It should focus on improving the areas of interest, such as increasing client satisfaction and attaining corporate social responsibility

Further, the involvement of the CEO and core partners of the company will facilitate effective implementation. The change in the company’s culture will need to involve the management team to allow adequate funding for training and benchmarking (Doyran, 2020). The involvement of the company’s leadership will create an opportunity for the employees to embrace creativity when serving the customers through a reward program. All the major changes in the company’s operation need the management team’s approval to ensure the company moves toward a direction that meets its goals, mission, and vision.

Further, the implementation process will undertake monthly communication with the employees and the customers. The human resource departments will progressively give a monthly report on the company’s achievements (Labrecque et al., 2018). It will be important in helping the employees and customers realize the areas improved and what is expected to change every time. Through effective communication, where feedback from the World Climate Organisation and the general public will be highly analyzed, the company will attain its differentiation focus strategy to meet customer needs.

4.2 Tools

The main tools supporting the differentiation focus strategy include the OKR tool and a balanced scorecard. The OKR tool will focus on evaluating the achievement of the objectives where sustainability is a major area of interest (Ferreira, 2022). The objectives, such as reducing CO2 emission, customer safety, and employee well-being, will be measured on the key results provided. For example, attaining minimum CO2 emissions and increasing the number of recyclable products are useful indications of the company’s successful differentiation focus. Besides, the balanced scorecard on areas of interest will be useful to allow continuous changes in the strategy. Effective reduction in production cost and marketing management will indicate positive improvements in the strategy adopted (Chen et al., 2022). Balancing the company’s financial expenses will be important in attaining a cost-effective strategy. The company’s business process will balance with the customer needs and capacity of the company to control the strategy put in place. For example, the cost of training the workers and communicating with the general public must be economical in sustaining the company’s operation. Thus, it will ensure that the differentiation focus strategy is well monitored and controlled.

5.0 Conclusion

Jaguar Land Rover has had stiff competition in attaining steady sustainability over the years. The company will need to reduce production costs by using renewable and recyclable sources. The use of plastic materials will be a priority for the company to minimize the production cost for both interior and exterior design of the cars. The company’s efficiency over the years will be determined by the public’s perception of the company’s efforts to enhance sustainability. It will include investing in the social-cultural climate to attract new customers to recognize the Jaguar Land Rover automobiles. The customers’ behaviour will change based on the company’s communication efforts and commitment to reducing air and soil pollution through its products.

Further, the company will make available essential resources that will allow continuous invention and innovation. Human resources will influence what the company can produce in the future. The fast-changing Technology will be the central pillar of transforming the company to continue to realize its mission and vision. For example, the navigation tool helps the drivers to different destinations that are completely new to the drivers. It is only possible through continuous innovation and inventions to improve the luxury and efficiency of vehicles. Thus, it will rely on human resources, leadership and social-cultural climate to ensure future strategic development.

7.0 Appendices

7.1 Appendix A. Jaguar Mission, vision and Values

7.2 Appendix B. SWOT Analysis for Jaguar Land Rover

Strengths Weaknesses
·         Sustainable Materials

·         Unified distribution


·         Compete with other SUVs  brands

·         Dissatisfaction from clients

Opportunities Threats
·         Online fans

·         Technology advancement

·         Expanding global market

·         Intense competition

·         Competitors new technology

·         Covid-19 uncertainties