IT FOR MANAGERS

GOA INSTITUTE OF MANAGEMENT

SANQUELIM, GOA

2021-2022

GROUP 4 : Jaguar Land Rover: Towards a Customer

Centric ization
SUBMITTED BY:

● Akash Ghosh (2021065)

● Aman Kumar (2021068)
● Anushkar Chauhan (2021072)
● Harshal Kerkar (2021083)
● Mohit Khemka (2021090)
● Raghunath Prabhudesai (2021100)
● Udita Gupta (2021119)
Q1) Case introduction- What are key changes Tata Motors made to Jaguar and Land
Rover after acquiring these brands in 2008?

Post the acquisition of Jaguar Land Rover, Tata Motors focused on opening up new overseas
plants into cost effective manufacturing and labour countries like China and Brazil. It also
contracted with Magna Steyr to produce its vehicles in Austria. The expansion strategy was
designed to strike a balance between diversified geographies and benefits of global processes.
Jaguar Land Rover also adopted a new customer centric approach. Tata, influenced by its rapid
growth strategy, invested heavily in a single global CRM solution to revolutionise the way the
brand interacted with its customers. An enterprise management platform was created to embrace
the entire ization and its processes. Development of analytical techniques and intelligence
methodologies was also initiated. The basic idea was to get into the customer’s shoes and
analyze the customer journey.

Q2) What does customer journey look like in automotive industry? Is it changing? Why &
how?

The auto industry has come a long way in the past 100 years—and particularly in the last 10
years. Technology is fuelling dramatic changes in how vehicles are manufactured, marketed,
purchased, and driven. Or, in the case of autonomous vehicles, not driven.

Is it Changing? Yes, it is changing.

How you ask, so there are three elements which will showcase the changes that took place in the
last 10-15 years

· Specific preference and buying habit: It’s a process which undertakes in this journey
which is known as customer process in which customer goes through various processes while
selecting a vehicle which has improved and modernized for customer convenience.

Websites have been developed where customer can navigate and find the vehicle of their liking
and also customization is made as to filter out the price range in which the customer wants to
purchase. HE/SHE now can schedule a test drive online which was not the case few years back
and changed the customer experience on a whole new level. And after a purchase is made,
customer service follows up which is integrated in such a way where the system instantly
answers to customer queries and requirements and drives a high level of customer engagement.

Business infrastructure support systems: In the recent years the support system in the
automobile industry has gone through various changes. They have equipped with a well
optimized website and data recording tools are there to collect data of various variants. A
CRM system is developed for customer management and it also handles Back-end
 infrastructure support like customer service teams, customer data recording tools, emails,
messaging integration, etc.

Level of customer experience delivered: According to Deloitte Global Automotive Consumer

Study, 59 percent of consumers say they were never contacted by the manufacturer after buying
their vehicle and 26 percent of customers never hear from the dealership after the initial
purchase. This numbers are changing after implementation of CRM systems as the industry is
able to provide more accurate and faster service to their customer. Service gaps are decreasing
and its leading to increase in brand capabilities. “A sale starts, not ends with the purchase,” Fry
warns. “Providing ongoing support and letting that person know you value their personal
experience is crucial for building brand loyalty and advocacy.

Q3) What data should be collected to ensure that JLR retains a customer-centric
approach? From what sources?

JLR will collect data based on the customer's voice before and after the start process for
consideration during the launch cycle. The suggestions can be a minor change in the productor
repositioning the brand. The idea of "Co-creation" between the customer and the engineers
began; it is when the idea was defined in the concept clinics, which allowed the user to change
according to the needs which emerged with time. By hearing the customers at pricing clinics, one
can be able to forecast the volume as well as the what price should the product be to create a
demand. After the launch of the product, the voice of the customer is still heard so as to
understand the product dependability, and to monitor the sales, how satisfied they are. This
would help the company do development in the successor model and come up with a better
version. Conducting a research region-wise would help better profile potential customers. But the
care should be taken that the research should not be based on demographics only but also on
desires and attitudes. Ethnographic research should also be collected in which context one is
buying it and what is the lifestyle of the customer so as to strengthen the relationship between the
target customer and the brand, thus bringing the right customer closer to the brand. By doing
choice-based conjoint analysis, one was able to figure out the preference of a particular model at
different price points in the pre-production phase, thus helping to forecast what price to keep and
how many to produce. With the increase in the use of the electronic systems to improve the
performance, safety, and comfort of jaguar cars, a lot of data is being collected from the sensors
installed in the car. This would help in doing relevant enhancements. For example: Sensors
discovered that thousands of urban jaguar customers sat in traffic often and for a longer duration
than those in rural. This was interpreted that the urban customers need more comfortable
interiors. So, modifications need to be done accordingly. By analyzing the GPS data company
was able to understand the driving behaviors of the customers, which was used for pro-active
maintenance. GPS data also helped in tailoring the marketing campaigns for a potential new car
that matched specific types of driving behaviour. Before the launch process, the data collected
should be structured in such a way that it allows the understanding of how the customers want
the car to look; the needs that they want to address. The data collected after the launch process
will try to assess whether the car has met the clients ' different targeted needs.

Q4) How has digitization transformed the automotive industry?

There was a gradual shift of attention from the traditional cars to hybrids and Electric Vehicles
(EVs) from the buyer. Since the production of EVs were cheaper than the internal combustion
engine vehicles, it grabbed the attention of the manufacturers. Change of customer’s conception
of cars and car ownership was observed. Self-driving cars and ride-sharing platforms were
gaining attention. Driverless technology could reduce energy cost and traffic fatalities.
Customers preferred mobility platforms over car brands. Mobility platform enabled drivers to
locate a platform-owned car, drive it and leave it parked for the next user. All this could be done
using a smartphone. Digital technologies like virtual reality (VR) and augmented reality (VR)
were expected to change driving habits. These technologies enabled more informed decisions to
meet customers' needs. Also through the aid of VR, customers could take a closer look at the
vehicles which they were interested in buying which eventually reduced the cost involved in
physical transportation of models for display.

Q5) What types of techniques and methodologies should JLR use to understand customers
better on a continuous basis?

Smart and big data analytics are the primary customer intelligence methodologies and techniques
that JLR should leverage to understand the customers.
The different methods are significant in the various stages of the car launch cycle. Big data
methodology is vital at the growth and maturity stages. It helps the seller understand whether the
car has been able to address the needs of the targeted market segment.
Smart data is instrumental in the decline stage as it allows in the determination of the point at
which the price should be slashed in the effort to make way for other new car models.

As seen at JLR, different methods and different techniques are applicable at different stages.

The stages shall be bifurcated into different phases, namely, PRE and POST launch phases. In
these phases the voices of the customers were heard during the launch cycle including those for
minor changes or brand re-positioning.
For PRE launch.
Four Years Before the Product Launch – Co-relation between the customers and engineers
began, when the ideas were in ‘concept clinics’
One Year Before the Launch – Forecasting volumes and price demand simulations could be
performed in ‘Pricing Clinics’

Carrying out Quantitative Research, Qualitative Research, Ethnographic Research & Social
Media Listing would be more appropriate in the Pre-Launch Stage.

For POST launch.

Three Years after Launch – Surveys carried out to measure product dependability to monitor
the sales and service satisfaction. The lifecycle of the product was 7 years and if the consumer
was engaged throughout, it could shape the evolution of a successor model.

Using Cloud Services, VR Headgear would be more appropriate in this stage

Q6) What conclusion can you draw about any customer durable industry using IT for
delighting customers?

Conclusion - These companies go by a customer centric approach to create the most value for
their product in the segment. The steps they take are as follows:

● Maximises customer value

○ By seeking to create, develop and enhance relationships with carefully targeted
customers
○ Seek not only to acquire a customer but to retain them for a longer period
● Changing from product centric to customer centric
○ Takes Voice of Customers into account for future product design and specs
○ The CRM taking all arms to look like a single management, makes it more easier
for the customer to raise any issue
○ CRM does save time of the customer as well as isation itself
○ Improving voice-activated applications and on-board infotainment

The industry using IT does the following, to achieve the above mentioned steps:

● Identifying Potential Buyers

○ On basis of age, income, gender, occupation
○ Also, bifurcating the customers region-wise
● Product Sales
○ Proper sales forecast with high precision, along with the preferred models
○ Taking price elasticity into account while forecasting (by using volume against
price for finding the ‘sweet spot’)
○ Giving VR experience of numerous models (with different colour combinations,
interior material, etc) at one single place, which is impossible and very costly with
physical setup
● Pre-Delivery of the product
○ Never letting the customer to wait alone before the product delivery
○ Sending them the proper Qualitative Info (in form of images) of their order being
processed
● Service of the product
○ Sending the customer proper reminders of the upcoming schedules
○ Giving provisions to book service online
● Consumer behaviour
○ Researching the consumer behaviour to produce products for specific customers
○ Specific designs