How did Jaguar revamp its market strategy during a recession?

During economic downturns, the final question for marketers is whether or not to lower their advertising spending in anticipation of better times or to keep their existing approach to grow market share. However, much disruption and re-creation the macroeconomic storm continues to cause to various Jaguar's 2020 advertising campaigns, the automaker remains steadfast behind the wheel.

During the first two quarters of 2021-22, the global chip scarcity cost JLR over £4 billion in lost incremental sales, the equivalent of around Rs 41,300 crore. A total of 84,442 units were shipped in the first quarter, and a further 64,032 units were sent in the second quarter of this fiscal year. On the other hand, obtaining the expertly predicted annual volume of 360 000 to 370 000 units seems to be a challenging task.

What the Director Says

It is possible, says Jaguar Land Rover UK's marketing director, Anthony Bradbury, that switching tactics amid a recession may be your most devastating marketing mistake yet.

It is essential to sustain "nurture-based activity" even if businesses have to adjust their expenditure levels to match the degree of client involvement and economic conditions, says Anthony Bradbury, UK marketing director for car marques. In this book, he reflects on his tenure as Land Rover's UK marketing director during the recession of 2008-2009. As far as we can tell, firms and brands that invested throughout the recession emerged stronger than they were before.

However, he could still be able to affect specific strategic alterations to the designs of high-end automobiles. In light of the current challenging circumstances, any adjustments that are made will center on maintaining the level of money spent on the media to satisfy the current level of consumption and demand. This tactic will be used rather than reorganizing the marketing budget on an ongoing basis. According to Bradbury's plans for his next advertising campaign, the Jaguar brand will be the principal focus of his efforts.

The Strategy Followed

This strategy, which tries to create long-term connections with both present customers and new buyers, seems to have been tried and tested in the car sector.

Jaguar CEO Ian Bradbury's objective for the year 2020 has always been to broaden the brand's reach while simultaneously expanding Jaguar's year-round presence. March and September have traditionally been the most critical months for marketing in the automotive sector since this is when manufacturers most often introduce new models. The pandemic that was the impetus for the recession served, in many respects, to amplify the effects of the planned brand-building that had been going on. In point of fact, when there is a slowdown in the economy, it may be the perfect time for an advertiser to purchase advertising at a discount since their competitors are also working to reduce the expenses of their own operations. This is also true for Jaguar car spare parts.

Despite this, after a period of relative calm, the Bradbury company has decided to increase the amount of money it spends on pricy television advertisements. This comes after Jaguar's biggest expenditure was attributable to sales generated through social media, most of which were acquired via organic posts with some paid promotion thrown in. The most current advertisements for Jaguar demonstrate its vehicles to be forward-thinking, uniquely British, and cutting edge. These advertisements are receiving a heightened level of focus as part of efforts to make the most of the limited number of new business prospects that have arisen since vehicle shops throughout England have started to reopen. According to Bradbury, advertisements that are purchased via the Adsmart platform on Sky will encourage people to visit the Jaguar dealership in their area.

Some of Jaguar's TV spending will unavoidably be used to pay for the expected return of live sports events.

Because there is less competition for those people's attention on television, Jaguar is in a better position to spend money on advertising now than ever before because the number of people watching television is at an all-time high. This is true in many contexts, but especially on television. According to Warc and Enders Analysis, the amount of money spent on television advertising in the United Kingdom may fall by 30 to 50 percent in the second half of 2018.This helps to explain, at least in part, why Jaguar decided to continue its sponsorship of the new Sky Documentaries, even though those shows had already been completed before the outbreak.

Conclusion

As a direct result of the recent recession in the economy, Jaguar is now formulating plans to accelerate its transition to a strategy of making retail sales through online channels. It is currently being tested for various purposes, including the online signing of documents and the online demonstration of products.