Land rover case study harvard pdf

IN1440

Jaguar Land Rover: Towards a Customer-Centric Organisation

Leveraging Customer Intelligence and Data Analytics for Sustainable Growth

03/2018-6354

This case was written by Joerg Niessing, Affiliate Professor of Marketing, and Brian Henry, Research Fellow, both at INSEAD, and Kay Peters, Professor of Marketing, University of Hamburg. It is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation.

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Jens Sulek, Director of Global CRM & Customer Insights at Jaguar Land Rover, was looking at customer data for the F-Pace, the first SUV ever made by Jaguar in its 95-year-old history.1 The F-Pace had been unveiled at the International Motor Show Germany in Frankfurt in September 2015, just one month before Sulek had started working at the wholly owned subsidiary of Tata Motors. It was nice timing for the German executive – the F-Pace turned out to be hugely popular among Jaguar customers, especially women.

A seasoned executive from the automotive sector, Sulek had worked at Porsche in Germany for 10 years before being hired by the British car brand. His experience made him a good fit with Jaguar Land Rover.2 During his last few years at Porsche, revenues had almost doubled thanks to the popularity of two SUVs, the Cayenne and the Macan, whose combined sales made up 70% of total revenues in 2016. In addition to his experience, Sulek had an MSc in Information Systems and Marketing. At Jaguar Land Rover he was responsible for 240 employees, including 190 customer relationship management (CRM) specialists and 50 business analysts who made up one of the largest CRM projects of its kind in the industry. His goal was to improve the systems and processes driving customer centricity.

Jaguar had seen a transformation since 2008, when Ratan Tata, former CEO of India’s Tata Group, bought Jaguar and Land Rover from the American automaker Ford for $2.3 billion, and began investing in the two British brands. Jaguar Land Rover had since become one of the UK’s largest exporters, generating 80% of sales abroad, and its workforce had grown to 40,000 people. Jaguar Land Rover opened its first overseas plant in China in 2014, and another in Brazil. It had also contracted with Magna Steyr to produce vehicles in Austria. Its expansion strategy was designed to strike a balance between diversified geographies and the benefits of global processes.

Industry Challenges Affecting Customer-Centricity

The automotive industry is one of the largest and most international in the world. Some 20 major global automotive companies currently produce around 100 million cars per year. There are over a billion light vehicles globally. The industry provides over 7 million jobs in the United States, and close to 13 million in Europe.3

During the global financial crisis in 2008-2009, automotive sales fell at

near-record rates worldwide. Since then, auto sales had rebounded largely driven by the market in China. Chinese passenger car sales had seen a three-fold increase from 2007 to 2017 from

1 For pedagogical purposes, this case focuses mainly on Jaguar. 2