Is the Indian market ready for a Jaguar?
One of the most aspirational luxury car brand Jaguar, is all geared up to race up its top lines in the Indian market. The company has launched a new campaign globally ‘How Alive are You’ to add fresh impetus to the brand. The print campaign has already been rolled out in India too, and TVCs are soon to follow suit. With the launch of the new marketing campaign, Jaguar aims to increase awareness of the brand amongst a new audience in line with its ambitious future plans.
The campaign capitalises on the existing emotional pull of Jaguar’s cars and challenges consumers to answer: ‘How alive are you?’ The campaign is the result of collaboration with SPARK44, the international communications agency that’s part-owned by Jaguar Land Rover.
But the question is: Are Indian consumers and is the Indian market ready for Jaguar?
Well just go through some numbers: As per industry reports, the luxury car segment in India has grown at the rate of 70-80 per cent, though on a small base. The annual World Wealth Report (2011) of Merrill Lynch Wealth Management and Capgemini, suggests, India has the world’s 12th largest High Networth Individuals (HNI) population. Not just that, among the top 12 countries globally, India’s growth in HNI population was highest at 20.8 per cent. Experts feel that this rapidly growing nouveau-riche segment is expected to keep fuelling the demand in the luxury car segment in the years to come.
Murad Ali Baig
Murad Ali Baig says, “The base of the luxury car market in India is still small… but the segment is growing faster than the mass segment. Also, with the HNI population on rise, certainly the affordability of luxury cars is going up and I am sure there is a market for a brand like Jaguar.”
According to Jaguar, it has grown by over 100 per cent in terms of sales in the last one year in India and currently has 6.5 per cent share of the luxury car market in the country.
Adrian Hallmark, Global Brand Director, Jaguar Cars
Talking about the luxury car market in the country, Adrian Hallmark, Global Brand Director, Jaguar Cars stated to Pitch, “It is relatively small at present but has a huge potential. We know that it will grow fast. We are going to be here (in Indian market) and we will fight for our share in this market because we see India as our second domestic market.” He also added that in the next eight years, he expects the Indian luxury car market to grow at 300 per cent while the global market is expected to grow at 40 per cent.
However, interesting case in point is that though the luxury car segment is quite buoyant in the country, the volumes are attractive in the entry luxury segment, much more than the mid and top luxury segments that Jaguar is addressing so far.
Vidyadhar Wabgaonkar, Senior VP – Strategic Planning, DraftFCB + Ulka feels, “For getting the pricing right, Jaguar will have to consider assembling its entry models in India. At the moment, it is assembling only the Freelander model in our country.”
Jaguar’s starting model costs about Rs 48 lakh in India (ex-showroom price). Thus, experts feel that to ride on the growth of the entry luxury segment, Jaguar will have to get into the entry luxury car segment too. That’s where the volumes will come from. And thus, a lot of efforts will be required in investing behind the entry level offerings both in terms of branding and new products.
Interestingly, the incumbent competition, viz. BMW, Mercedes and Audi, has already invested in building brand equity. Jaguar has a differentiated and charismatic offer against this competition, but a lot needs to be done on the brand front. Experts are of the view that Jaguar will have to plan for a quantum growth in its brand building investments in India. Wabgaonkar says, “The buyers that it addressed in the past were a well-travelled lot that had experienced the glory of the brand in its home markets. When Jaguar looks for volumes, it will have to address a new segment that would not be as conversant with the international stature and heritage of Jaguar.”
Jaguar’s Hallmark acknowledges this, “The first step for us is to get our products established in terms of the technical and design attributes and also establish the ‘Jaguarness’. Because brand Jaguar is kind of known in India but its brand attributes are not known in depth in India.”
Setting up a strong distribution will be another challenge for the brand. Jaguar’s Hallmark says, “Distribution is a key part of our expansion plan in India”. Jaguar has tripled its dealer network to 15 (from 5 at the beginning of 2011) and plans to take the number to 40 in the next couple of years. Baig feels, “Setting up dealership for high end luxury cars is a very expensive business. But that is where the company needs to focus as the experience in showrooms will matter a lot for the brand.”
Jaguar entered the Indian market in 2008 after Tata Motors bought the Jaguar Land Rover business from Ford Motors.
One of the most aspirational luxury car brand Jaguar, is all geared up to race up its top lines in the Indian market. The company has launched a new campaign globally ‘How Alive are You’ to add fresh impetus to the brand. The print campaign has already been rolled out in India too, and TVCs are soon to follow suit. With the launch of the new marketing campaign, Jaguar aims to increase awareness of the brand amongst a new audience in line with its ambitious future plans.
The campaign capitalises on the existing emotional pull of Jaguar’s cars and challenges consumers to answer: ‘How alive are you?’ The campaign is the result of collaboration with SPARK44, the international communications agency that’s part-owned by Jaguar Land Rover.
But the question is: Are Indian consumers and is the Indian market ready for Jaguar?
Well just go through some numbers: As per industry reports, the luxury car segment in India has grown at the rate of 70-80 per cent, though on a small base. The annual World Wealth Report (2011) of Merrill Lynch Wealth Management and Capgemini, suggests, India has the world’s 12th largest High Networth Individuals (HNI) population. Not just that, among the top 12 countries globally, India’s growth in HNI population was highest at 20.8 per cent. Experts feel that this rapidly growing nouveau-riche segment is expected to keep fuelling the demand in the luxury car segment in the years to come.
Murad Ali Baig
Murad Ali Baig says, “The base of the luxury car market in India is still small… but the segment is growing faster than the mass segment. Also, with the HNI population on rise, certainly the affordability of luxury cars is going up and I am sure there is a market for a brand like Jaguar.”
According to Jaguar, it has grown by over 100 per cent in terms of sales in the last one year in India and currently has 6.5 per cent share of the luxury car market in the country.
Adrian Hallmark, Global Brand Director, Jaguar Cars
Talking about the luxury car market in the country, Adrian Hallmark, Global Brand Director, Jaguar Cars stated to Pitch, “It is relatively small at present but has a huge potential. We know that it will grow fast. We are going to be here (in Indian market) and we will fight for our share in this market because we see India as our second domestic market.” He also added that in the next eight years, he expects the Indian luxury car market to grow at 300 per cent while the global market is expected to grow at 40 per cent.
However, interesting case in point is that though the luxury car segment is quite buoyant in the country, the volumes are attractive in the entry luxury segment, much more than the mid and top luxury segments that Jaguar is addressing so far.
Vidyadhar Wabgaonkar, Senior VP – Strategic Planning, DraftFCB + Ulka feels, “For getting the pricing right, Jaguar will have to consider assembling its entry models in India. At the moment, it is assembling only the Freelander model in our country.”
Jaguar’s starting model costs about Rs 48 lakh in India (ex-showroom price). Thus, experts feel that to ride on the growth of the entry luxury segment, Jaguar will have to get into the entry luxury car segment too. That’s where the volumes will come from. And thus, a lot of efforts will be required in investing behind the entry level offerings both in terms of branding and new products.
Interestingly, the incumbent competition, viz. BMW, Mercedes and Audi, has already invested in building brand equity. Jaguar has a differentiated and charismatic offer against this competition, but a lot needs to be done on the brand front. Experts are of the view that Jaguar will have to plan for a quantum growth in its brand building investments in India. Wabgaonkar says, “The buyers that it addressed in the past were a well-travelled lot that had experienced the glory of the brand in its home markets. When Jaguar looks for volumes, it will have to address a new segment that would not be as conversant with the international stature and heritage of Jaguar.”
Jaguar’s Hallmark acknowledges this, “The first step for us is to get our products established in terms of the technical and design attributes and also establish the ‘Jaguarness’. Because brand Jaguar is kind of known in India but its brand attributes are not known in depth in India.”
Setting up a strong distribution will be another challenge for the brand. Jaguar’s Hallmark says, “Distribution is a key part of our expansion plan in India”. Jaguar has tripled its dealer network to 15 (from 5 at the beginning of 2011) and plans to take the number to 40 in the next couple of years. Baig feels, “Setting up dealership for high end luxury cars is a very expensive business. But that is where the company needs to focus as the experience in showrooms will matter a lot for the brand.”
Jaguar entered the Indian market in 2008 after Tata Motors bought the Jaguar Land Rover business from Ford Motors.