So the new Jaguar launches today and before it does I wanted to offer my prediction.
JLR wants to mimic the success of Porsche AG.
This may seem a crazy provocation when you consider Porsche sold 320,000 cars in 2023, a 7% increase, whilst JLR sold 431,000, a 22% increase on the previous year.
So why would a bigger company want to emulate a smaller one.
My prediction for their new product is this:
Car 1: 4 door EV super saloon to go against the Porsche Taycan
Car 2: 2 door EV sports car to go up against the 911
My hypothesis is the broader view of portfolio mix and management, including potential audience and pricing.
Here are some thoughts why:
- The Cayenne and then the Macan were the saviours of Porsche by moving into the fast growing SUV market. A sports SUV, the sub-category they created, was a great way to bring in new consumers to the brand who may have loved the marque, but couldn't be convinced to buy a sports car when they also had to have a family car.
- The Macan went on to become Porsche’s best selling vehicle at the time, selling circa 90,000 per year, and eclipsing the 911 and the Cayenne.
- JLR already have the SUV market very well covered with their Land Rover, Range Rover, and Defender brands.? According to the JLR corporate website The Land Rover Defender, Range Rover, and Range Rover Sport models accounted for 76% of JLR's order book.
- Whilst SUV's were booming Porsche also looked where else they could grow. The whole market was moving towards SUV’s (and smaller SUV’s) - as seen by the Porsche Macan and JLR’s own Range Rover Sport and Jaguar I-Pace. But Porsche flipped that in 2019 when they launched the Tacan - an EV Sallon.? By 2023 Porsche sold 50% more Taycans than Macans - some 136,000 Taycan models were sold in 2023 and that’s why this is interesting, because maybe the saloon isn’t / wasn’t dead and Jaguar focussing on SUV type vehicles like the I-Pace simply wasn't enough of a difference in the portfolio.
- The average price for Porsche Taycan starts at ￡86,000 and goes up to ￡161,000. Comparatively the Jaguar XF starts at just over ￡35,000. Even the cheapest Porsche Macan starts at ￡56,000. So JLR isn’t leveraging the potential value in the market.
- Porsche has also significantly increased its sales of the 911 - to circa 50,000 units per year, up 24% on the previous year.
- And the average price of a 911 is over ￡100,000.
If the rumours are true that the first new EV from the revised Jaguar brand is a 4 seater sports saloon they are going straight after the Porsche Taycan market. And then will they go for the 911 as well with launch number 2?? An EV 2+2 sports car?
And both will be well over ￡100,000 as are the Porsche models!
Let’s see what they announce today…
Interesting comparison! It's always valuable to look at how different companies approach portfolio management. What aspects of their strategies do you find most compelling?
Design Director at Tag
2 个月It’s very weak as a brand revamp, a formula creation that lacks unique vision or iconic value… change the brand name and you could be looking at a number of other brands with the same tonality and feel…
Chief Growth Officer | Consumer Goods-CPG-FMCG | Ex Coca-Cola | Ex strategy consultant | Strategy, Planning, RGM, Innovation, Insights, M&A | Results-oriented problem solver | Internationally mobile
2 个月Really excellent article Adrian. It is striking that Jaguar, Maserati, Alfa Romeo more or less failed in the sporty segment while Porsche, BMW, Audi succeeded. You are right on the money as regards a lack of product innovation / poor product line up. I wonder whether marketing also has a role to play. Some of Jaguar and Alfa’s products were great but did not match their competitors’ sales (F type, Giuletta Quadrifoglio).
Building brands at pivotal business moments
3 个月Can’t wait to see - suspect you’re not far off