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Land Rover has awarded its CRM assignment to Rapp Collins Malay-sia, as the brand shifts gear to compete outside the increasingly cluttered 4x4 luxury segment.

Rapp Collins' appointment comes as Land Rover prepares to launch three models in Malaysia this year, including the highly-awarded Discovery 3, which was named best SUV in 2004 by Top Gear in the UK. However, the brand is facing increased competition from newcomers such as Kia, Nissan, Toyota and Porsche, which have launched their SUV models in the last 16 months. Mercedes-Benz is also expected to roll out its A-Class 4x4 shortly, following strong growth in SUV sales, which expanded by about four per cent last year and is expected to maintain this momentum in 2005.

"We see more car brands like Nissan, Kia and Rexton, for example, introducing more 4x4 car models in the market," said Rosie Hong, managing director of the four-year-old CRM operation, which counts Mattel and American Home Assurance as new clients.

Hong said Land Rover was looking to make a bigger investment in CRM to tackle the market challenges it now faces, as Malaysia has been tasked with dismantling tariffs and other barriers in its auto market under Asean Free Trade Area rules.

"Land Rover is shifting the battle ground from just being an authority in the 4x4 luxury segment to an overall more prestigious and premium luxury car segment," added Hong.

Rapp Collins' assignment is customer- rather than trade-focused. "Land Rover is not a big spender above-the-line, as its target audience is very targeted, narrow, premium and high-end. It tends to maximise its investment and marketing dollars in specific and targeted channels, where its target audience can be reached," explain-ed Hong.

The CRM push is expected to focus on Land Rover's established Coterie Club loyalty programme, which provides owners with discounts for parts and services and organises a variety of programmes throughout the year, including regular outings in order to create ambassadors for the brand.

"The Coterie Club has been quite successful in retaining customers," said Hong.

Rapp Collins, which is believed to have outgunned three other CRM rivals in the review, said the agency was evaluated on six criteria, including strategy development and implementation, creativity and cost effectiveness.

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