This assignment is on Marketing Strategy. This paper consists of the marketing strategy of Rolls-Royce Ghost, which is the latest model of Rolls-Royce motor car, one of the most famous motor car brands in the world. This paper consists of product profile, market offering by this product, environment affecting this product, marketing mix, segmentation, targeting, and differentiation and positioning, SWOT analysis, Product classification, branding, pricing strategy and sales promotion of this product. This paper also offers the answer of some question, for what the customers will buy this product, how they capture value from the customers and so on.
Product Profile
The Rolls-Royce Ghost is smaller luxury 4-door saloon automobile from Rolls-Royce Motor Cars. The “Ghost” nameplate, named in honor of the Silver Ghost, a car first produced in 1906, was announced in April 2009 at the Auto Shanghai show. Ghost is the essence of Rolls-Royce in its simplest, purest form. Every inch delivers on the power of simplicity. The new Rolls-Royce Ghost is the Phantom’s baby brother, although it’s hardly little at more than 212 inches long. Powered by a engine which is a 6.6-liter, direct-injection, twin-turbo V12 with variable valve timing producing 563 horse-power and 575 pound-feet of torque mated to an eight-speed automatic transmission. The car weighs 5,445 pounds (2,470 kg).
Its length-height ration is 2:1.Rolls is predicting a 0-to-60-mph time of around 4.7 seconds. The Ghost was designed by Ian Cameron and Charles Coldham (interior) and engineered by Helmut Riedl. Manufacturer of this car is Rolls-Royce motor car company which is a concern of BMW group; Germany. The production model was officially unveiled at the 2009 Frankfurt Motor Show.
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Rolls-Royce Ghost -A want:
Want is something a person would like to have. Wants are the form of human needs take as they are shaped by cultural and individual personality. Though Rolls-Royce Ghost is designed as a less costly model than the previous model ’Phantom’, still Rolls-Royce is one of most costly cars. A car is not a ‘need’ for a general income person or less busy person but it is a ‘need’ for a busier person who can afford a car. But a Rolls-Royce is only luxurious cars which have a costly brand value. So a Rolls-Royce Ghost can never be a need, it’s a want for those who can afford it in the other words, who have demand for it.
Market Offerings by Roll-Royce Ghost:
Market offerings are some combination of product, service, information, or experiences offer dot satisfy a need or want. The Market offerings of Rolls-Royce Ghost are stated below… * Luxurious drive with simplicity:
Rolls-Royce is a renowned motor car brand that offers always luxurious drive. Roll-Royce Ghost is not exception at all. But with luxury it offers a lower price than the previous model of Roll-Royce Phantom. Ghost is the essence of Rolls-Royce in its simplest, purest form. Every inch delivers on the power of simplicity. * Handmade and hand finished Personalized features:
Rolls-Royce is not only hand built but also hand finished, and through the bespoke program, each car is customized to meet individual standards and satisfaction, including personalized features, such as your initials engraved in 24-carat solid gold interior features. It’ll be delivered according to how the customer demands it so the customer can get unique ownership experience. * Royal and Lavish Status:
The name of Rolls-Royce comes with the royal essence because it is the opulent choice of the rich and famous from the very first production of its car and Roll-Royce ghost is not an exception. Rolls-Royce Ghost stands as a lavish status symbol globally. * Dynamic drive, Spirit of Ecstasy, and surge of power: The Rolls-Royce Ghost also offers multi-sensory experience, more dynamic drive, Spirit of Ecstasy, and endless surge of power. Its new 6.6-liter V12 engine will produce 563 horsepower and 575 pound-feet of torque remains whisper-quiet even when accelerating. All that power is sent to the rear wheels through an eight-speed ZF transmission. The result is a 0-60-mph time of 4.7 seconds and an electronically limited top speed of 155 mph. * Best after sales service:
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The Rolls-Royce motors offer the best care of your car after sales service by the most talented technicians of the world.
Environments affecting the marketing of Rolls-Royce Ghost
All of the components of micro and macro environment affects more or less to the marketing strategy of any product. For that, all of the forces of macro and micro environment do not have the same affect on Rolls-Royce Ghost’s marketing strategy. * Major actors in the Ghost’s microenvironment:
* The Company: The company’s decision affect Ghost’s marketing * Competitors: Rolls-Royce has to create greater customer value and satisfaction than the competitors. * Publics: Marketing Strategy of Ghost should be affected by the financial people, Media publics and Internal publics. * Customers: Customers are the most important actor for Ghost. Rolls-Royce pays special attention to the customer’s demand and supply personalize car for the customers.
* Major factors in Ghost’s Macro environment:
* Economic environment: The factor that affects the Rolls-Royce most that is the economic factor. Rolls-Royce Ghost operate their marketing activities most where peoples are rich and over rich e.g. Hong-Kong, Manhattan etc. it’s definitely not cheap. Most expensive but luxurious car in the world. So the economic factor is most important. * Technological Environment: Rolls-Royce Ghost are marketed in the areas which are technologically developed. It is marketed where the company can easily provide the after sales service to the customers.
Product development by Rolls-Royce Ghost:
Rolls-Royce Ghost is a new model car manufactured by Rolls-Royce motors. They design this car for luxurious drive and as cheaper re-model of Rolls-Royce Phantom. The Customers of Rolls-Royce are mainly fixed. Rolls-Royce always tries to develop and maintain customer equity so that the market of Rolls-Royce is almost same all the time. The customer of the Rolls-Royce is rich and famous, and most of the times they replace their Rolls-Royce by the latest model, so Rolls-Royce Ghost is a new product in an existing market. The Rolls-Royce motors use develop this ghost model for maintaining the company growth. The model they used is shown below with a chart:
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Existing Product New Product E Existing Market New Market| Market Penetration| Product Development| | Market Development| Diversification|
Figure: Developing Strategy for Growth
Rolls-Royce Ghost is a product development developing strategy for the Rolls-Royce Motors in order to capture growth.
Market Segmentation:
Market segmentation is to divide the market into distinct groups of buyers who have different need, characteristics, or behavior and who might require separate products or marketing program. A market segment is a group of customers who respond in a similar way to a given set of marketing efforts. Market segmentations are very important to find out which segment should be served in order to grab best opportunities. Rolls-Royce motor car company has also make market segmentation for serving or selling the Rolls-Royce Ghost. The segmentation variables for Rolls-Royce are listed below: * Geographic segmentation:
* Country: Rolls-Royce has targets just developed and first world countries for Marketing of Ghost * City: Rolls-Royce mainly markets their cars in cities where rich people lives. * Demographic Segmentation:
* Income: The Rolls-Royce targets the segment of people who have a very high income and can afford a costly car like Ghost. Rolls Royce, as was recently revealed in the Los Angeles Times, only targets potential customers who have liquid assets in excess of $30 million. * Occupation: Rolls-Royce motors also check out the customer’s occupation. They target the segments that have a reputation and fame with his occupation. * Psychographic Segmentation:
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* Social Class: Rolls-Royce Ghost targets the upper uppers social class people to serve because peoples from this class would buy it to differentiate themselves i.e. Masons. * Life style: Rolls-Royce targets the persons whose lifestyle is very showy and rich. * Behavioral Segmentation:
* Benefits: Rolls-Royce Ghost targets the segment of people who would like to have luxurious and speedy drive with simplicity of Ghost. * User Status: Rolls-Royce motor car company’s main targeted segment is the regular users because most of the times users replace their old model with a new model Rolls-Royce. It only targets potential customers who have liquid assets in excess of $30 million. * Loyalty Status: Loyal customers are most targeted segment of Rolls-Royce. * Attitude Toward Product: Rolls-Royce always target the segment of buyers who have a positive and enthusiastic attitude toward Rolls-Royce. For checking that, the officials of RR will go through buyer’s bio-data, past maintenance of his cars, his driving for a month and many other formalities. RR even fine their customers if they dive the vehicle rashly and resulting in an accident. Market targeting by Rolls-Royce Ghost:
It’s impossible to serve all the market segments by a single product. So, after evaluating Market segments, the company should target a market segment. Target market is a set of buyers sharing common needs or characteristics that company decided to serve. Most carmakers produce automobiles for a wide variety of customers and adjust their marketing strategies accordingly. Rolls Royce, as was recently revealed in the Los Angeles Times, only targets potential customers who have liquid assets in excess of $30 million. That segment wouldn’t be considered a mass market, and so the way Rolls Royce sells a car is markedly different from other cars. Rolls Royce, a long-standing symbol of position and nobility, Rolls-Royce has been an opulent favorite of the rich and famous ever since it was first manufactured via hand-assembly in England in 1904. Rolls-Royce stands as a lavish status symbol globally. Buy a Rolls-Royce and enjoy the best in car luxury and refinement. So to Say, Rolls-Royce targets the extreme rich people who possess a royal, lavish and famous status and would like to have a luxurious, swift, calm and speedy drive and those who want a personalized car to feel the taste of uniqueness.
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Differentiation and Positioning:
A company differentiates and positions itself by creating and promoting competitive advantages. Rolls-Royce motor cars do so in differentiating and positioning their product, The Rolls-Royce Ghost. Let’s have a look what competitive advantages they create: * Rolls-Royce provides the Symbol of Royal, lavish and famous pride.
* Totally handmade and hand finished.
* Rolls-Royce Ghost offers personalize car supply, as like as customers wish. * The New Rolls-Royce Ghost offers a more luxurious swift drive than others. * the car’s cabin gives off a luxurious aura that comes from the finest woods, wools and leathers assembled with the pride of English craftsmanship.
* Quiet environment inside the car.
* It’s become able to create a psychological expression of “Higher the price, better the car”. So it enjoys a competitive advantage of higher price than all of its competitive models like,2010 Ferrari California, 2009 Lamborghini Gallardo LP560-4, 2010 Mercedes-Benz S65 AMG, 2011 Jaguar XJ / XJL Super Sport, 2010 BMW 7-series.
* Best after sales service.
Which Differences Rolls-Royce Ghost Promotes:
It’s always not possible to promote all the differences to differentiate the product. Some differences should be promoted indirectly. Here the
Rolls-Royce Ghost promotes the following differentiations for creating customer value. * Luxurious drive with simplicity:
* Handmade and hand finished Personalized features:
* Quiet environment inside the car
* Best after sales service
* Dynamic drive, Spirit of Ecstasy, and surge of power:
Rolls-Royce never promotes the very high price of its products though it charges high price. Although the Rolls-Royce is symbol of royal status, lavish status and famous and rich persons from the very first production, they never promote this for any product.
Positioning strategy by Rolls-Royce Ghost:
How the rolls-Royce Ghost position itself in the world motor car market? Its extremely true that the Ghost offers a very differentiated competitive advantages than the other competitor. And at the same time it also costs a higher price. So from the customer’s point of view, the Rolls-Royce is getting more prices for more satisfaction. But there are also some people who think the Rolls-Royce charges more dollars by offering the same thing as the competitors offer. They are getting this more bucks as the symbol of royal status, lavish status and famous and rich persons. Price| Benefits| | More| The Same | Less|
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| More| More for more| More for same| More for less|
| The Same| same for more| The same for same| The same for less| | Less| The less for more| The less for same| Less for much less|
Figure: Value Proposition of Rolls-Royce Ghost.
Marketing Management Orientation of Ghost:
The Rolls-Royce Ghost follows the marketing Concept in marketing management orientation. It never emphasize on the production or sales volume. In what it emphasizes, that is what the customers want. Generally Rolls-Royce factory makes less than 800 cars a year. It depends on the customer’s demand. Rolls-Royce delivers personalized cars to the customers and provides customer satisfaction of luxurious, quiet, swift and speedy drive. Through this customer satisfaction it makes its own profit.
Rolls-Royce Ghost-a specialty product:
A specialty product is a type of consumer product with unique characteristics or brand Identification for which significant group of buyers is willing to make a special purchase effort. Rolls-Royce Ghost is just like this-a specialty product. It offers personalized car to the customers. It also offers luxurious drive with simplicity, handmade and hand finished personalized features, quiet environment inside the car, best after sales service, and dynamic drive, Spirit of Ecstasy, and surge of power, Rolls-Royce is symbol of royal status, lavish status and famous and rich persons from the very first production,. So buyers make special buying efforts for having a Rolls-Royce Ghost.
Branding of Rolls-Royce Ghost:
“When you buy a Rolls-Royce, you join in long illustrious owners all over the world.” – Grant Williams, sales support manager. The Rolls-Royce creates its brand name by establishing the essence of royal and lavish status for al of its brands. Ghost gets the same treatment. The brand name of Ghost is created through the slogans of simple luxurious driving, dynamic drive, spirit of ecstasy, surge of power moreover the simplest and purest form of Rolls-Royce cars. Branding is also essential for creating customer loyalty and capturing customers. but, The LA Times report says that Rolls Royce doesn’t engage in co-branding endeavors. . Customers are invited to exclusive dinners where contacts are made and deals struck. Buyers receive surprises in the mail, like a personalized letter from the CEO or a coffee-table book about the brand.
Pricing of Rolls-Royce Ghost:
Pricing of Rolls-Royce Ghost is made under the concept of value based pricing. Although personalized car supply, handmade and hand finished car costs more than the other cars which are made by machines. But the pricing of Ghost’s depend mainly on the its brand value to the customers and its royal and lavish status. It only targets those customers who can afford to buy such a car. The price tag makes the Ghost more exclusive. But it has a lower price than its previous model ’Phantom’. Because it is the simplest version of phantom. The pricing concept of Rolls-Royce is “Higher the price, better the car”. Segmented or targeted buyers of Rolls-Royce believe this. So, Rolls-Royce is not price sensitive. The target Customer may not consider the price.
Sales Promotion of Rolls-Royce Ghost:
To get to these customers – and to keep them – Rolls Royce employs a series of unique marketing approaches. The LA Times report says that Rolls Royce doesn’t engage in co-branding endeavors. Dealers are chosen based on their common interests with customers. Customers are invited to exclusive dinners where contacts are made and deals struck. Buyers receive surprises in the mail, like a personalized letter from the CEO or a coffee-table book about the brand. Anything to make the customers feel special, in the hopes that they will replace their Rolls Royce with another at the right time. And many do: in the US, nearly a third of business comes from repeat customers. That’s a customer loyalty rate that doesn’t come easy, but it helps when your direct competition is a yacht or private jet. Rolls-Royce encourages customers to take advantage of the bespoke nature of its build process, allowing buyers to select the woods, paints and leathers used to finish the car. A tour of the factory confirms that much of the car is hand built, although I was disappointed to learn that no longer are the radiator shells crafted in-house and signed by a single artisan, but rather come from a supplier. This is another way of sales promotion to the customers.
Conclusion
This assignment consists of the marketing strategy of the world’s one of the most famous luxury car brand ‘Rolls-Royce Ghost”. The marketing strategy they use is fully customer based. They have some unique characteristics. But they are surviving with these characteristics and making profit in this competitive market by understanding the marketplace and by serving the customers. Rolls-Royce Ghost is a costly car, costs more than other competitor cars do but it captures this value through creating total customer satisfaction.
Sources of information::
http://buyersguide.caranddriver.com
http://www.economist.com/business-finance/displaystory.cfm?story_id=13611109 http://en.wikipedia.org/wiki/Rolls-Royce_Ghost
http://online.wsj.com
http://www.roadandtrack.com/tests/drives/2011-rolls-royce-ghost
