Jaguar XJ still the icon

Jaguar is returning to form. The British prestige manufacturer has just launched the latest incarnation of its XJ flagship to build on the sales success of the smaller XF in Australia -- and globally.

But with the price of the new XJ starting just below $200,000 and the superseded model selling in such small numbers for 2009, one could be forgiven for thinking that the XJ is no longer as relevant to Jaguar fans as it once was. Could it be that the hot-selling XF is now the car that people think of first when talk turns to Jaguar?

"No. Not at all," replied Jaguar Australia's Marketing and Public Affairs Manager, Mark Eedle, when asked that question by the Carsales Network during the launch of the latest XJ.

"The XJ was launched in 1968 and over time, has become the iconic Jaguar. What we're seeing now with the [new model] is a re-establishment of the XJ as the flagship and signalling very clearly the direction of the Jaguar brand with its 'beautiful fast car design', with all the technology in the car, with the luxury of the car, the craftsmanship -- all hallmarks of the Jaguar brand -- and showcasing it in the car as the ultimate Jaguar.

"Each of the three models has a very distinct audience, but... the XJ is the flagship of the Jaguar brand. It is the core central image to what our brand is about, because not only is it beautiful, but... it is also very quick, handles beautifully, is full of amazing luxury and craftsmanship. It epitomises everything that the Jaguar brand stands for."

Nonetheless, Jaguar sold 19 of the older X350 generation XJ last year and 32 foor the year before that. The superseded car wasn't set the ambitious sales and brand-boosting targets Jaguar Australia has set for the new car. Eedle's General Manager, Kevin Goult, told journalists at the launch of the new XJ that the importer was aiming for sales of 10 a month by the end of 2011. That's a far cry from 19 for the full year, 2009.

"When you look back at the historic XJ figures," explained Eedle, "XJ sold in very healthy numbers in previous guises and while 19 cars [sold] last year may seem like quite a low number, bear in mind that 351 -- the all-new XJ that we're seeing here -- was revealed in the middle of July last year. And so you would have seen people start to back away from [the X350 model], as they knew the new car was on its way."

Is the new XJ hampered by any baggage as it starts to appear in Jaguar showrooms? We asked Eedle whether such things as the Luxury Car Tax, retro styling of earlier models and Jaguar's long-standing reputation for mediocre quality had all conspired to keep Jaguar's sales lower than expectation over decades.

It was suggested during the launch by former JRA PR boss John Crawford that the LCT had hurt Jaguar sales when the tax was introduced by the Hawke government, but Eedle was not convinced.

"I dismiss the luxury car tax," he said, "in that it affected everybody in the same [sales] category and, simply through the nature of our product range, we have cars that are always affected by LCT, whereas some of our competitors have smaller models. So that one, I don't believe, had any [further] difference on us than it did on any of our competitors."

Retro styling was a fad that led to the creation of cars such as the Chrysler PT Cruiser, the BMW MINI, the Volkswagen New Beetle and a host of other cars including the Rover 75. Jaguar jumped on the bandwagon wholeheartedly.

"The retro styling [fad]: you could argue that as we came through the 1990s and the first decade of the new millennium, that people were looking for something more forward-looking and that our retro styling didn't have as big appeal as if we had gone to a more contemporary styling earlier on, but beyond that, I don't think things like quality are an issue anymore," Eedle suggested.

On the final night of the launch for the new car, Jaguar chief David Blackhall announced that Jaguar (and Land Rover) would offer new-car buyers the option of an extended warranty. Despite Eedle's views, it seems like the reputation of decades ago still fouls Jaguar's endeavours to penetrate the market deeper.

"I don't believe there's much baggage [where quality and reliability are concerned]," says Eedle, "there may be a few anecdotes, but they're told almost in a humorous fashion: 'Oh, I remember when...'

"But it's very much understood now that that was 20 years ago and we've come a very long way over the last 20 years. We've had some great success in things like JD Power surveys... over the last couple of years. We continue to build some very fine motor cars."

No one suggests for a moment that the current crop of Jaguars are not up to par for quality and longevity, but there are plainly still some large-car buyers in the market who dismiss the marque because of a reputation years out of date. So how does the company plan to salvage those buyers and get the XJ on their shopping list? The extended warranty at least signals the company's confidence in the product, so that's a start. But for that matter, what about reaching buyers generally?

"It's obviously a very niche market, for large luxury saloons in Australia," answered Eedle.

"We like to communicate as directly as we can with our customers, so while there will be some advertising, because it will obviously bring a great halo to the brand and show the greater audience exactly where Jaguar is going, you'll see that we do a lot of experiential marketing activities with our target [buyers].

"So we do some VIP events, for example; we place the car in the appropriate places... it's a lot more one-on-one or person-to-person marketing rather than the broader mainstream, given the nature of the price point we're playing with and the type of customer who purchases this car."

In hindsight, we asked Eedle, could different marketing have helped Jaguar's sales in Australia, during the period prior to the introduction of the XF? And would Eedle adjust anything now to improve the management of the brand in Australia?

"We've been very consistent in our marketing," Eedle answered. "We've always put forward a very consistent image, but... with cars, the piece of metal itself is so central to what your success is going to be. Yes, there's brand reputation obviously... but if people aren't getting appeal from the physical piece of metal, then no amount of marketing is going to change or massively alter your sales."

"The XF is a beautiful example of that. That car should almost be a case study on how a... piece of metal can change the fortunes of a company, because the reaction to it, both in sales, but also in brand perception -- who you're appealing to, a broader or younger range of people being attracted to a brand through the product you deliver -- XF is the prime example of how you can do it... so well."

"What more can be done [in the future]? Using the asset we've just launched [the XJ] and promoting it to ensure we maximise our sales opportunity on it, but also to go down the second trail to further improve the image of the brand."

The second trail to which Eedle referred was a promotional avenue for the brand, rather than the car itself.

"It's a great opportunity to use that vehicle and promote not just the XJ, but also the Jaguar brand," he explained.

"But of course, XF and XK... will also need some of their own marketing to ensure that the more targeted audience -- of the XF, of the XK -- understand what specific models are relevant to them. But yes, the XJ is the overall halo Jaguar image car..."

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