- Current Market Situation
- Brand Origin
- Buy "Market Research (Range Rover Car)" essay paper online
- Existing Product Lines/Items in the UAE
- Organizations that Market the Brands
- Business Activities, Date of Establishment, Structure and Size, and Strengths and Weaknesses
- Market Environment
- Macro-Environmental Factors
- Micro-Environment Factors
- Major Changes and Trends that Influence Marketing Decisions on the Brand’s Existing Product Lines/Items in the UAE
- Market Description
- Market Segments
- Marketing Opportunities
- Market Research Analysis
- Related Business essays
Range Rover is a brand that is robust and intrepid and continues to change its history as it masters the manner of terrain, capturing the hearts around the globe. One can find Range Rover in any suburbs or cities as they fit well in any surrounding including the countryside. Decades of innovation have made the company reach a success. The Rovers have navigated the rugged and unknown territory by grasping the aspects of composure and capability, thus distinguishing the Land Rover Badge as unique. The paper offers a market research on the Range Rover in the UAE and the Al Tayer Group that sells the product. It will also analyze the competition and marketing opportunities in the region and offer a market analysis.
Current Market Situation
In 1947, there was a man who did a sketch of a car in the sand at the Welsh beach. The car was a Land Rover. Two British brothers, Maurice and Spencer Wilks, obtained the inspiration from the versatile and rugged nature of the Army jeep. They then collaborated with British automaker Rover to create the first Land Rover. They launched the first car in 1948, and it appeared to be a product of British ingenuity after the World War II. The early Land Rovers seemed crude but were suitable for operations in the field. It is evident in how the Land Rover gradually expanded its range to Range Rover, Freelander, Discovery, and the most recent Range Rover Evoque (Land Rover, 2016).
The Land Rover created the Range Rover in 1970. It had the V8 engine and a body of aluminum. A stylish vehicle was more consumer-oriented than the first models. The Land Rover cars continued to grow and in late 90s, then the company introduced the Freelander. It was the first vehicle to have a Hill Descent Control. The later versions enhanced the maneuverability on steep descents through automatic braking that retained the speed of the vehicle in check. In 2000, Ford bought the Land Rover, but the company had financial instability. As a result, the creators sold the company again to Tata Motors an Indian automaker (RAK Investment Authority, 2009). Currently, the Land Rover is still famous for its luxury SUVs that include Range Rover, Ritzy, and the LR4 as well as Evoque. Range Rover appeared in the UAE in 2012 when the ruler of Dubai obtained its first brand.
Existing Product Lines/Items in the UAE
The major suppliers of the auto market in the United Arab Emirates are Toyota, Ford, BMW, Mercedes, Nissan, Mitsubishi, Honda, Volkswagen, and General Motors. Saudi Arabia has a vehicle assembly plant for Volvo, Mercedes and MAN trucks. Jeddah a national automotive industry partner with Mercedes group Germany design and run the vehicle components. The products from this plant have a large market in the GCC as the demand for the truck is high. The indication of the expansion of Mercedes shows that Range Ronge has the capacity of also doing well in the area. Moreover, Jeddah has also made a joint venture with Zahid Tractors, the distributors of Volvo Group Europe. Haji Hussein Alireza assembles MAN in Jeddah plant (RAK Investment Authority, 2009). Therefore, the existing products in the UAE are widely available through imports.
Organizations that Market the Brands
Business Activities, Date of Establishment, Structure and Size, and Strengths and Weaknesses
The Al Tayer Motor is the organization that promotes and sells the Range Rover in the UAE. The first establishment was in 1982 and aimed to represent American and European automobile manufacturers including the Range Rover Brand. Its business activities comprise network sales of auto parts and vehicles such as Maserati, Ferrari, Spyker, and Ford Trucks. The Al Tayer Motors is the official importer as well as dealer of car brands such as Range/Land Rover, Jaguar, Ford and Ferrari (Al Tayer, 2016). The company structure has two departments. The first deals with luxury cars such as Jaguar, Range Rover, Maserati, and Ferrari. The second is the marketing sector that deals with consumer cars such as Ford, Lincoln, and Mercury. The Al Tayer Group associates its strength to its substantial market share and the average consumer income which is high. Outstandingly, the Range Rover is among the most popular cars in the UAE. The Middle East has a historical relation with the Land Rover brand. People in the UAE have a high recognition of the Range Rover. The market here is favorable as 90 percent of the market had Land Rovers in the 1960s (Feuilherade, 2014). However, the company faces some weaknesses if Land Rover stops the production of the Range Rovers, then the company will lose loyal customers of the brand, decreasing its market share in the UAE and Al Tayer profits.
Macro-environmental factors that influence the company include political, economic, technological and social. The political factors comprise the rule of 51 percent ownership of the business by localities. The country is a member of the WTO. Thus, Range Rover has to follow the regulation (RAK Investment Authority, 2009).However, the UAE has a stable political environment, and all organizations have to follow the environmental protection law. Regarding economy, the region benefits from economic recovery. Oil is the primary driver of the economy in the UAE. The stable prices of oil restore the region’s confidence, thus leveraging its favorable prospects. The UAE’s economy is liquid and has a high current account balance. The area has a high business confidence due to its increase in disposable income that offer a background in the automotive sector. There is an increase of vehicle imports in the Middle East as the area has an affluent working population (United Arab Emirates Business Forecast Report, 2014). The technological factors include government encouraging investors to promote industries away from gas and oil production. The government wants to ensure the area has a strong, broad-based economy. The automotive sector is one of the ideal investments the government encourages.
The micro-environmental factors affecting the Al Tayer Motors include automotive part suppliers, the Land Rover Group, its employees, and the customers. Buyers of Range Rover are the most vital factor influencing the running of the company (United Arab Emirates Business Forecast Report, 2014). Al Tayer Motors survive due to meeting the needs of the car buyers. Land Rover lovers want luxury cars, and the company provided the Range Rover. The business deals with its customers by creating a showroom to educate the public on the car and its parts. Besides, good company relations with the public enhances the reputation of Al Tayer Motors thus increasing sales. Furthermore, the company has a competitive advantage over its competitors, although some cars are as efficient as the Range Rover. The group maintains their sales by capturing the imagination of the public through advertisement.
Major Changes and Trends that Influence Marketing Decisions on the Brand’s Existing Product Lines/Items in the UAE
The future shapes the significant trends in the industry in the UAE. The vehicle buyer is changing. The growing BMW’s market depicts that the middle class, as well as other people, are investing in owning a car. The automakers have to navigate the three powerful forces to create a market share and widen profits. The first trend is the turbulence technology, industry imperatives, and uneven market. The number of young people learning to drive is also increasing dramati y. However, some people choose the solution of using a shared car to save fuel charges per mile. The Range Rover Group has to be optimistic in forecasting the unevenness of the UAE market.
The UAE is the strongest automotive market in the Middle East. The region is the fastest growing car market globally with a growth rate of 11 percent. The current market size for cars is about AED 23 to 36 billion, transferring to sales of over 300,000 vehicles. The future size of the market will probably rise by 2 to 3 percent (RAK Investment Authority, 2009). Young drivers are the group that purchases most of the luxury cars including the Range Rovers. Furthermore, people with high standards of living have disposable income, thus, the potential to buy the cars. Customers desire for cars that use petrol or diesel due to the low cost of fuel in the region. Nonetheless, the production of hybrid and electronic cars may change the trend. The UAE population may in the future change their preferences.
The Range Rover is the market segment of luxury sports utility. It is also a dual purpose car mainly for world leaders, athletes, entertainment personalities, and design visionaries. The potential changes in the existing, and new segments should happen due to the availability of credit. When credits become available for car buyers, it will enable most people to buy luxury cars (RAK Investment Authority, 2009). There are marketing opportunities as the UAE that are among the world’s biggest luxury-vehicle markets. Nevertheless, there are potential new segments for passenger cars as the region is evolving at a rapid pace. Moreover, there are predictions that nearly eight out of every ten people will have a new vehicle in a couple of years. In that case, other types of cars have a possible chance to appear on the market (RAK Investment Authority, 2009).
Range Rover has the potential of market penetration, diversification, and product and market development. To strategi y position itself as the leading seller of premium vehicles, the Group has to offer high-quality products to potential and existing markets. In the UAE, they have been selling Range Rovers to correspond to the needs of the younger generation. However, as many people can purchase the cars the economy of the country is rising. On this point, Al Tayer and Tata Motors have to consider new brand segments when manufacturing the Range Rovers (Automotive Manufacturing Industry Profile: Middle East, 2015). The brand targets the younger generation, according to market research. However, to maintain the current market segment and attract potential segments, the company has to expand its brand to correspond to the needs of every buyer.
Market Research Analysis
The rate of luxury car usage is high. Fuel prices in the region are lowest in the world, thus the use of cars such as BMW, Audi, Mercedes and Range Rover. The level of satisfaction with Range Rover is considerable as it manages high street fashion and the noble off-road. It is smaller than the BMW but prettier for the younger generation. On the other hand, 8 out of 10 people buy Range Rover Sport because it handles the harsh environment in the Middle East. However, the level of satisfaction for BMW is similar as it is also an all-wheel drive (Automotive Manufacturing Industry Profile: Middle East, 2015). The reason for the gratification includes the product which is high-tech, restricted to the class, and it is a fast, smooth and luxurious vehicle. The place is in the Middle East, where the wealthy need the car due to harsh. The power of the car lies in the brand promotion and quality of the product. The current consumer preferences of the brand are more robust but with luxury touches. Based on the research, more people will need the four-wheel drive to maneuver the harsh terrain of the UAE; they may choose comfort and not the luxury. Briefly, every possible brand is in the UAE. However, the luxury cars have the best opportunity in the region.
In conclusion, the Range Rover is a brand that would be a world-beating product. The high business confidence and the increase in disposable income allow a favorable background for the automotive sector. Today, land rovers have tamed the earth’s toughest terrain as they have the unstoppable off-road capability. However, the Al Tayer Group targets the young people who love luxury cars. From the market analysis, it is evident that more people, including older generation, will purchase vehicles due to the favorable economy in the UAE. Therefore, the Group has to include more market segments to cater to new and potential buyers.