ROLLS-ROYCE MOTOR CARS PROCESS BOOK
By Fang Ben |Nivedita Govila | Angela Peng Nanthitha Shanmuhasundaram LXFM-730 | Marketing Strategies for Luxury Brand and Experiences Prof. Alessandro Cannata Winter 2018
TABLE OF CONTENTS Executive Summary Introduction History Pestal Current Status - Mission and Vision Statement SWOT Analysis Aaker Matrix Kapferer Prism Keller’s Pyramid Brand Strategy - Unique Revelation - Belief System - Brand Rituals - Distinctive Lexicon Market Overview Market Size - Growth Potential and Future Opportunities Competitive Landscape - Future Competitive landscape - Growth Potential
Key Success Factors Core Competencies, Competitive advantages Future Trends Primary and Secondary Target Consumer - Demographic information - Lifestyle/psychographic information
- Behavioral information - Customer Segmentation Goals and objectives Strategy Overview Luxury Ingredients Development -Purpose -Product -Pricing -Placement -Promotion -People Unique selling proposition Conclusion Appendix Bibliography
1 EXECUTIVE SUMMARY Rolls-Royce has held its position as one of the world’s opulent cars and a status builder for over 114 years even though its ownership has shifted hands during these years. Rolls-Royce has been built upon a strong British heritage, associations with artists and royalty along with its silent engines. This gave us an opportunity to analyze and understand how Rolls-Royce built its brand and how it would react to the change in technology and customer approach in the next ten years, in order to maintain its brand equity and the experience of ultimate luxury. After analyzing the brand it was clear that Rolls-Royce will still remain closely associated with personalization of artistic expression in a well-crafted car. The brand will continue to leverage its customer’s preference, craftsmen’s expertise and artistic collaborations. Nonetheless, Rolls-Royce’s competitors are moving fast towards adopting the new trends in technology such as electrification
and Artificial Intelligence, which play key roles in the future of luxury cars. Rolls-Royce chooses to remain a late adopter of technology so as to focus on personalization and craftsmanship. However, the brand does adopt technology when it is at the peak of its success and our proposal is to leverage this aspect to develop a technological integration into the existing products along with the launch of a coupe and mid-sized SUV. It is pre-eminent for Rolls Royce to maintain its existing association along with creating new associations. Hence, This proposal will focus on an ethnocentric approach for analyzing ways in which Rolls Royce would incorporate these trends, thereby maintaining brand loyalty, awareness, and making new association along with preserving the old ones. The proposal covers challenging aspects that need to be considered in order to elevate Roll-Royce’s brand equity without diluting the brand density, which is required for the brand image.
This proposal addresses Rolls-Royce’s position in the next 10 years, 2030, in terms of brand awareness, association, loyalty. These three elements of brand building will be tackled throughout the proposal and it will be the main focus of this book. Rolls-Royce has a strong brand density and has maintained its connoisseur status throughout the 114 years of its existence. Hence, the proposal will cover the aspect of brand density, the fourth pie of brand building as well. The proposal will cover market trends, customers’ demand, associations, competitions, and target consumers followed by the relationship of Rolls-Royce with each of these elements. The book will further dwell on the strength and weaknesses of RollsRoyce, its achievements over the years and it’s existing market positioning to predict future opportunities the brand can seize and threats it can prepare for. Finally, the book will imbue the 10-year proposal for Rolls-Royce Motor Cars.
2 INTRODUCTION
3
H
ISTORY
•
Rolls died in a plane crash.
Company became public for £100,000.
•
Royce fell sick but worked from his house.
•
Construction of the Derby factory to meet demand.
•
Rolls Royce became part of the social scene.
•
Size of the factory was 12.7 acres and electricity was the cheapest.
•
Personal mascots became the new norm.
•
1904 •
1906
1907
Creation of first Rolls Royce car.
•
•
Parternship between Henry Royce and Charles Rolls.
•
Became known for smoother, quieter, and more relaible cars.
•
4 cars were built a 10 hp (2 cylinder) priced at £395,15 hp (3 cylinder) £500, 20 hp (4 cylinder) priced £650, 30 hp 6 cylinder) priced £890.
•
Declared best car in the world - covering 14,371 consecutive miles.
•
The first car was unveiled in Paris Salon on December - 15
The Silver Ghost for the first time with 6 cylinder.
•
1914
1910 •
The open bodied ghost built for the Austrian Alpine Trials won the race by achieving 80 mph for the first time.
•
Production for civilian stopped due to the RR being armored and sent to war.
•
Lawrence of Arabia said the RR was more valuable than the gems of the desert during war.
•
Phantom II became the choice of the middle class who cruised down with it during the weekend to France.
•
Rolls Royce’s “R” V12 engines were used in Blue-bird that set the 1933 world record.
Rolls entered USA by buying a site in Massachusett - closed in 1931
•
•
Entered aviation engineering industry.
Again the RR engine set a world land speed record - 272.46 mph (Sir.Malcolm Campbell).
•
Henry Royce died in 1933.
•
The Rolls Royce engine set the new world record air record.
•
Reaching 312.2 mph the The Thunderbolt using “R” engine set the world land record again.
1925-29
1920 •
Phantom 1 supereded Silver Ghost.
•
7876 Ghosts were produced till date.
•
The engine developed for the 1929 was further developed into merlin engine and power both spitfire and hurricane.
1930’s
•
• • •
1940’s •
1946 - Silver Wraith a coach built body was made.
•
1949 - Silver Dawn with a standard wheel was introduced. These were much lighter and mostly exported.
RR began a relationship with the royals, establishing a higher status symbol. 1950 - Phanton IV - designed for royalty. Only 18 Phantom IV cars built for state officials and royals. 1950 - V8 engines were for the first time used in Phantom V.
1950’s
1960’s •
RR was coveted by the “new rich” like celebrities and actors.
•
Phantom II was used in the 1956 film “The yellow Rolls-Royce”.
•
John Lennon bought a white RR Phantom V and then changed it to back body then to outlandish, colorful design. Now it is one of the most valuable items of pop memorabilia ever.
•
Rolls Royce was in financial trouble - 1970.
•
It was then bought by the the Britain Government and named (Rolls Royce Limited).
•
in 1973 - The car was made as a sub division.
1998 - Volkswagen bought the RR motor cars company (only the car division) from Vickers by bidding more than BMW.
•
Volkswagen bought the 3 rights - “The spirit of Ecstacy” (for $40 million), the shape of radiator grille and the crew factory.
•
BMW instead got the lisence to use “Rolls-Royce” brand name and the engines for both Bently and Rolls-Royce were supplied by BMW.
•
Now Volks wagen couldn’t sell the car without the brand name and BMW could not make the car.
•
Hence, and understanding between Volkswagen and BMW that Volkswagen will produce and use the brand name till December 31st 2002 after which everything will be bought over by BMW in 2003.
1980’s
1970’s
•
2003
1990 - 2002
•
In 1980 - The British defence company bought Rolls Royce completely (from aerospace to car).
•
On January 1st 2003 BMW bought “RollsRoyce motor car limited” and all the rights to manufacture and sell Rolls Royce
•
In 1980 - First limousine by RR was released - Silver-spirit - Silver Spur which was 42’’ long.
•
The production centre was moved to a new location in Goodwood, England.
•
60% is recycled of all materials used to make the car is recycled.
•
Art programs and artist collaborations were introduced to stay close to the artistic background of RR as “The Spirit of Ecstacy” was created by a sulptur.
•
Bespoke services for personalising car from start to end was introduced.
•
•
1983 - Thrust 2 broke the land speed record - 633.468 mph, powered by RollsRoyce Avon 302 Jet engine. 1985 - Rolls Royce went public with the stock floated on London Stock Exchange.
THE SPIRIT OF ECSTASY During 1910 when mascots became a norm numerous high-class individuals commissioned artists to create a mascot and used them on their Rolls Royce. Hence, Claude Johnson, Managing Director of Rolls-Royce commission Sykes a sculptor, to create an emblem/ mascot for Rolls Royce so no one can install their own mascots on a Rolls Royce and taint the image in the future. “The Whisper”, the precursor to the Spirit of Ecstasy was cast as an emblem for Montagu, a lord in the kingdom of Britain. The whisper has Eleanor Velasco Thornton as the model as she was having a secret affair with Montagu. The figure has her clothes fluttering and her finger on her lips shushing. Only 3-4 castings were made and only 2 survive and are at the National Motor Museum in Beaulieu. Sykes First version for Rolls-Royce was called “spirit of speed” that was a modified version of Whisper. Later, Charles Sykes called it “A graceful little goddess, the Spirit of Ecstasy, who has selected road travel as her supreme delight and alighted on the prow of a Rolls-Royce motor car to revel in the freshness of the
air and the musical sound of her fluttering draperies.” But Royce was not happy about it since it impaired the driver’s view. In February 1911 Sykes presented to Rolls-Royce the “Spirit of Ecstasy”, which was easily recognizable as being a variation on the theme of “The Whisper”. The similarity was hardly coincidental because the model for both was Eleanor Thornton. The sculptor’s signature appeared on the plinth. Even after Rolls-Royce took over the casting of the figures in 1948 each Spirit of Ecstasy continued to receive this inscription until 1951. Today’s Spirit of Ecstasy, from the 2003 Phantom model onward, stands at 3 inches and, for safety, is mounted on a spring-loaded mechanism designed to retract instantly into the radiator shell if struck from any direction. There is a button within the vehicle which can raise/lower the emblem when pressed. She can be made from highly polished stainless steel, stainless with 24-carat gold plating, or from illuminated frosted crystal – the latter two being optional extras. Aftermarket customized versions are also available, including those covered in a matte black paint or studded in diamonds.
PESTAL
4
POLITICAL By 1870 it Britain was the most industrialized and the most powerful country in the world. In 1892, for the first time in the history, the British Parliament began to represent class distinctions in English society. By 1906, twenty-nine seats in Parliament went to Labor Party. Finally, in 1913, the powerful Labor movement, about to eclipse the Liberals as the Conservative’s opposition, pushed through the Trade Unions Act. This law granted unions legal rights to settle their grievances with management directly, without the interference of a generally conservative Parliament. Another major item of parliamentary reform was the Parliament Act of 1911. It ended the veto of the House of Lords and only allowed it to delay bills for two years. MPs were also paid for the first time under this Act. There was a risk of military invasion as Most of the services by Rolls Royce were being provided to the military. Bureaucracy and interference in industrial goods & service industry by govt. affected the political scenario.
ECONOMICAL Wages were stagnating while prices continued to rise throughout the country. Workers responded to their problems by putting their faith, not in the Liberal Party, the group that traditionally received the worker vote since industrialization, but in the militant trade unions, organizatioans that advanced worker demands in Parliament, cared for disabled workers, and assisted in pension, retirement, and contract matters. Emblems were popular and the rich created one for themselves, that is how to logo came up. Business Cycle included different stages - prosperity, recession, recovery.
SOCIAL The Industrial Revolution had created severe social problems, as Britain became the world’s most urbanized country. Over half of her population lived in cities. The social problems were to be found especially in the area of housing, education, and healthcare. Education and worker’s rights were being addressed. It was also the time when emblems were popular and the rich created one for themselves, and that is how logos became popular. Cultural differences prevailed in the society in the early 20th century. The society also saw the emerging entrepreneurial spirit and broadened nature due to Industrialization.
TECHNOLOGICAL The companies favored trading partners on the basis of the level of technology that they possessed. Since Industrialization happened two decades ago, different technologies, various forms of metals, engines, other innovations that were used in war, mining, medical industry. The technological developments helped to increase the skill level of workers and industrialists.
ART & LITERATURE The Industrial Revolution had created severe social problems, as Britain became the world’s most urbanized country. Over half of her population lived in cities. The social problems were to be found especially in the area of housing, education, and healthcare. Education and worker’s rights were being addressed. It was also the time when emblems were popular and the rich created one for themselves, and that is how logos became popular. Cultural differences prevailed in the society in the early 20th century. The society also saw the emerging entrepreneurial spirit and broadened nature due to Industrialization.
PHANTOM
5 CURRENT
GHOST Company: Rolls Royce Motor Car
STATUS
Parent Company: BMW Headquarter: Westhampnett, United Kingdom Manufacturing site: Goodwood, London, United Kingdom Dealership: 138 as of 2018. New ones opened in Atlanta, Hiroshima; Japan, Phuket; Thailand.
Current models : 1. Phantom - 4 doors, is a passengers cocoon. MSRP: from $417,000. Horsepower: 563 hp. Re-launched in 2018 and can be completely customized. 2. Ghost - 4 door sedan smaller than Phantom. MSRP: from $311,900. Horsepower: 563 hp. 3. Wraith - 2 door coupe. MSRP: from $320,000. Horsepower: 624 hp. 4. Dawn - 4 seats convertible. MSRP: from $346,000. Horsepower: 563 hp. 5. Cullinan - First Rolls-Royce SUV will be released in 2019.
DAWN
Rolls-Royce Black badge: a modified, darker version of the Ghost, Wraith, and Dawn. It is bold and faster than the original models.
•
Rolls-Royce Bespoke: The car can be exclusively hand-made to order according to a client’s taste. It brings the client’s dream car to life and each one is the only one in the world. The “Sweptail” is the most expensive new car ever purchased at $13 million.
During the first nine months of 2017, deliveries of Rolls-Royce were affected amongst others by political uncertainties in the Middle East and the market environment in the USA. Moreover, due to the model change, the Phantom was no longer fully available, which also had an impact. Hence, Rolls-Royce Motor Cars financially underperformed in the year 2017. Americas still retain number 1 spot in terms of sales. Chinsese sales increased 40% YOY.
2016 vs 2017 3000 Number of units
WRAITH
•
2625
2500
2343
2742
2346
2000 1500 1000
941
768
939
709
500 0
3rd Qtr Sales
Source: BMW Quarterly reports
3rd Qtr Production
First 3 Qtr Sales 2016
2017
First 3 Qtr Production
MISSION STATEMENT “Rolls-Royce Motor cars offer the most exclusive luxury automobiles built to utmost perfection.”
VISION STATEMENT “Our vision, in its purest form, is to create the automotive equivalent of haute couture. This is the future of luxury mobility.”
6
SITUATIONAL ANALYSIS
S
•
•
Reputation built up over richly traditional history.
•
Supreme quality, exquisite hand craftsmanship and attention to the finest detail. Highly skilled workforce, huge investment in training and developing of its employees. It takes approximately 60 people and 450 hours to design, construct and craft each rolls Royce.
•
Quality class comfort - known for its superior engines and suspension system
•
Association with the parent company (BMW Group) Continuously researching into the technology.
•
Superior design, committed to art, strong aspirational value in minds of people.
•
Technical and financial support from BMW (parent).
•
Global presence in more than 50 countries across the world, customers are spread across 180 counties of the world.
Increased focus on autonomous driving. Being under the BMW Group, Rolls Royce has great potential to develop their electric and self-driven cars.
•
Investing in digitalization and electrification.
•
Customization and personalization can be perfected through the bespoke program.
•
Luxury consumption is shifting from star brands to connoisseur - people value experiences, art accomplishment more than showing off status and wealth.
•
High brand density could be leverage without diluting it.
•
Growing customer spending in developing countries such as India, China and major cities in Middle East.
O
W
•
Limited exterior modification: the design of its models look similar, various cars look like clones of a single model. People who prefer the brand for its standards styling and design might look for little more variety.
•
Over reliance on repeat purchase that stem from client loyalty. Niche market- for a small group of the richest people.
•
Was known for its engines, now they are using the BMW engines after a little modification which could dialate the brand equity a little bit.
•
Newer generation does not connect to the history.
•
Competitors- Bentley, Maybach.
•
Growing raw material cost.
•
Political uncertainty in the Middle east and market contraction in the USA. (2016: 1684 units, 2017: 1575 units).
•
Government incentives for electronic vehicles.
•
Luxury consumption shifts from conspicuous to inconspicuous.
•
The world’s serious concerns about sustainable transportation options: challenges Rolls Royce’s profitability in the future as they are leveraging on their V12 engines.
•
Political and economic uncertainty
T
BRAND AS A PRODUCT Provides a window to the future while nodding to the past. Ultra Luxury vehicle with superior technology, style and design
ORGANIZATION •
Quality and engineering perfection
•
Artistic creations
•
Design without compromise
•
Continuous diversification and innovation
•
Name of its founders - Rolls-Royce
•
Inspirational
•
British heritage
•
Powerful
•
•
Confident
•
Sophisticated
•
Artistic
Spirit of ecstasy metaphor shows Rolls Royce’s strong brand image that has the power to change the world
PEOPLE
SYMBOL
7 AAKER MODEL
KAPFERER PRISM Physique
KELLER’S PYRAMID Picture of the sender
• RR & Aura symbol (crystal, silver metallic) • Quality and engineering perfection • Luxury vehicles
Relationship • • •
Personality
• Perfectionist • Sophisticated • Strong
Culture
Influential Inspiring Reliable
• • • • •
Reflection
British heritage Sophistication Diversification and innovation Liberation Commitment to art
Self-Projection
• Ultra rich • Successful • Sophisticated
• • • •
• • • •
Brand Resonance Internalization
Externalization
8
Powerful Confident Elegant Self achievement
Picture of the Receiver
Kapferer’s Prism talks about the 6 aspects associated with the brand. Starting with the physique of the brand that is perceived by people outside the brand. A relationship between the brand and the people as Rolls-Royce being influential, inspiring and reliable. Reflection is the stereotypical users of the brand. While personality stands for the brand’s character, culture is the systems of value and basic internal principles, and self-projection is the self-image of a consumer through the brand.
Consumer judgment
Consumer feelings
Brand performance
Brand imagery
Brand salience
Engagement with consumers before and after purchase Customers are extremely loyal to the brand Customers have attachment to their personalized Rolls-Royce Rolls-Royce has a strong community of owners • • • •
Leader in luxury vehicle Highest quality Rich history Muscular design • • • •
Excellent ride Attention to detail Unique styling Unmatched service • • • •
• • • •
Social approval Extreme comfort Security Self-respect
• • • •
Heritage Stable and safe Quite and comfortable Timeless design
Pinnacle of luxury vehicle High craftsmanship Exclusiveness • A personal cocoon High price • British royalty
9
10BRAND
DISTINCTIVE LEXICON
BELIEF SYSTEM
STRATEGY BRAND RITUAL
UNIQUE REVELATION
•
Purity in design, ultimate quality and craftsmanship.
•
When developing new models: “we will only do it if it is really right, if it is a true RR”
•
You don’t buy, you “commission” a Rolls Royce - almost all Rolls-Royce that leave the Goodwood factory is Bespoke, unique. The Bespoke service - Over 90% of deliveries are custom-made
•
Every Rolls-Royce is an inner solace and a sanctuary
•
Pushing the boundaries of technology, quality and craftsmanship
•
Every car has emotion and creates an emotional bond with the maker and the owner.
•
Investigate the realms of what was possible
•
•
“Take the best and make it better. When it does not exist, design it” - Royce’s moto
The human element is significant in every Rolls-Royce, every element is hand-trimmed
•
•
Create the automotive equivalent of haute couture
“Pay respect to history,” “understanding the classical routes that define today ”Production is controlled and volume isn’t pushed.
•
Brand Logo & the “Spirit of Ecstasy”
•
“Black Badge”- modified versions of Ghost, Dawn and Wraith to attract younger customers who want to be on the wheel instead of back seat.
•
“Pantheon grille” - Untouchable” part of a Rolls Royce that was trademarked in 1974
•
“Starlight” headliner which is highly customizable to meet each individuals constellation. Takes up to 17 hours to complete
•
Being chauffeured by white-gloved driver
•
The back of the Rolls Royce is where you want to be, while if you seek thrill the driving seat is a good place.
•
•
The rise of the spirit of ecstasy and its importance in a Rolls-Royce
“TeleServices” system that connects the car with your dealership. Passes on maintenance issues to nearby dealerships
•
•
The owner being part of the making process
“Rolls Royce Assist” (connects with the nearest emergency call center)
•
Customer services through one on one consults
•
The beautiful roar of the engine for a silent drive from external noice
11 MARKET OVERVIEW Luxury cars remained the top performing segment (growing 8%), particularly in the very high end of the market, within which sales were strong in China. 18% revenue from the car sales comes from luxury cars, which accounts to be a $100 billion Industry. Global market size for luxury cars grew from 245 billion euros in 2010 to 438 billion euros in 2016. The global market size for luxury cars grew from 245 billion euros in 2010 to 438 billion euros in 2016. Much of the growth is attributed to the increasing consuming power of emerging markets such as China and India. Sales of luxury passenger vehicles in China reported the highest growth rate in 2010, when the market grew by 77 percent. Since then, the estimated market growth in China has varied between 21 and 35 percent.
Despite the rise of these markets, mature markets such as the United States remain important target countries. Mercedes-Benz leads the luxury car market in the U.S., with a luxury car market share of more than 16 percent. Lexus, Audi, BMW and Cadillac are the runner-ups. Not only are the three German luxury car brands - Stuttgartbased Mercedes-Benz, Munich-based BMW and Ingolstadt-based Audi - among the leading brands in the U.S. luxury car market, but they are also the top three luxury brands globally. Volkswagen’s Porsche, Geely’s Volvo and Tata’s Land Rover and Jaguar round off the list of the leading luxury vehicle brands in the world. Rolls Royce accounts for a small segment by selling 4011 units in 2016.
Luxury car sales in 2016, by marque (in million units)
Numer of sold automobiles
Worldwide sales volume of Rolls-Royce automobiles
Sales in million units
12 MARKET SIZE In the United States luxury car market, over the past few years, it is the crossovers and SUVs, which have been experiencing growth in sales. In 2016, the two leading players in the market, Mercedes-Benz and Lexus did not see any of its non-SUV models experience growth in sales. The luxury car market in the US is now diverging into two clear categories, the budget cars and the ultra luxury cars. There is clustering of new purchases in the two extreme categories of budget and ultra luxury. In Europe, greater demand for high-end models as compared to the emerging markets such as China where the entry-level luxury markets are seeing greater growth. In 2017, the luxury car segment in China is
seeing strong growth. The millionaires in China increased by 10% in 2016 year-on-year. Despite the government’s austerity drive, sales of super-luxury and supercar sales have not slowed down in China. Mercedes-Benz witnessed its best ever month in terms of sales in China in March 2017. The low oil prices and global macroeconomic factors are affecting the luxury goods market in the Middle East. While over the last 10 years the personal luxury goods market witnessed an annual growth of 8-10%, it is projected to drop to approximately 4-5% over the next few years. With the introduction of Electric and autonomous vehicles market size would expand in China and UK.
Globally, 1.4 million more women are licensed to drive than men. 62% of new cars are purchased by women. It has been observed that men worldwide are more inclined towards European Luxury cars. The average age of luxury car buyers is around 50 yrs.
Super luxury car sales and global billionaire population by yeat
Projected Share of Global Luxury Goods Market 2028
Numer of sold automobiles
Super Luxury Car Sale Are Booming
As the global billionaire population expands steadily, super luxury cars are in huge demand with a record of 28500 cars sold in 2016.Bentley and Ferrari were the dominant forces in the segment last year, with a market share of 37 and 24 percent respectively. The most popular models last year were all Bentleys: the Continental came first, with the Flying Spur second and the Bentayga rounding off the top three. The United States had the highest global sales volume at 30 percent and 8,377 vehicles sold. The UK was in second place with 4,600 vehicles sold while China’s recent surge has seen it roar into third place with sales surpassing the 4,400 mark and 54.2%growth.
CURRENT MARKET ROLLS ROYCE For the year 2016, Rolls Royce’s revenue went up 6% on its 2015 results. A total of 4,011 cars were delivered to customers in more than 50 countries (which is its second highest annual sales result behind its 2014 record), affirming the brand’s strength and resilience in a year of challenging market conditions for luxury goods worldwide. In Europe, deliveries jumped up 28 per cent while the Americas grew by 12 per cent and Asia Pacific swelled by 5 per cent. Sales in Japan jumped by 51 per cent, 30 per cent in Germany and 26 per cent in the United Kingdom.
Although sales in the Middle East fell away slightly, Rolls-Royce Motor Cars Dubai came home as the brand’s highest selling dealership globally. Rolls Royce delivered 3362 motor cars to customers in 2017 despite the absence of Phantom. The first modern coach-built Rolls Royce, “Sweptail” was unveiled along with the successful new launch of Dawn Black Badge.The company saw significant expansion in the Technology and Logistics Centre. It also invested majorly in Goodwood manufacturing plant in order to get ready for new models.
COMPETITIVE LANDSCAPE To qualify as true competitors to Rolls Royce, the company should be • Priced above 300,000 USD • Both sport and luxury segments • Possess excellent build quality • Rich in heritage • Associated with status marker in the society Competitors to Rolls Royce include • Aston Martin • Bentley • Maybach • Lamborghini • Ferrari
13
WHAT ARE THEY DOING? Competitors are expanding their product lines (noticeably towards SUV). “The appetite for ultra-luxury SUVs, especially in China, means that if you’re not in the segment very soon, you may likely be left behind,” says Dave Sullivan, manager of product analysis with automotive industry research firm AutoPacific. “When the next downturn hits, or if something sends a hiccup through the Chinese economy, the brands without an SUV could see trouble on the horizon.” The global luxury SUV market is projected to grow at a CAGR of 25.08% during the period 2017-2021.
Competitors are attracting the next generation.
Competition is actively building brand equity.
Sielaff joined Bentley last year, but had already worked on the Bentley Speed 6 concept car and Bentayga as part of a wider role within the VW Group. In particular, the Speed 6 was seen as a test bed for a new, more youthful interpretation of Bentley’s brand values.
Ferrari is much more than a luxury car company. It’s a brand. The company sells Ferrari-branded merchandise through its website and from 32 stores worldwide. These range from children’s clothes to Mahjong sets. According to its IPO filing, Ferrari licenses the brand to companies including Oakley, Tod’s, Lego, Electronic Arts, and Movado. Ferrari also gets royalties from Ferrari World — its theme park in Abu Dhabi, UAE. It plans to open another theme park in Spain that will also include a Ferrari themed hotel.
Sielaff said in an interview: “To be absolutely clear, I don’t want to destroy the heritage of the brand or even harm it in any way, but as in all life we have to improve and take steps forward,” and “that means making the brand and its products appeal to a younger audience, from wealthy 30-year olds upwards.
Aston Martin and James Bond is a combination which has left an indelible mark on popular culture, which is an invisible but priceless asset for Aston Martin.
ANALYSIS BASED ON THREE PARAMETERS Bentley
Aston Martin
Rolls Royce
Ferrari
Lamborghini
Maybach
Full Electric Car
Concept
2019
Concept
2020
Concept
Concept
SUV
Available
2020
Late 2019
Late 2019
Available
Available
Poster Appeal
Low
Medium
Low
High
High
Low
FUTURE COMPETITIVE LANDSCAPE Trend towards an electric future. China, the world’s largest car market, is working on a plan to ban the production and sale of vehicles powered only by fossil fuels. It has plenty of company: India, France, Britain and Norway want to ditch gas and diesel cars in favor of cleaner vehicles. In Germany, Chancellor Angela Merkel has hinted that it’s only a matter of time before the country that invented the modern car sets an expiration date of its own. At least eight other countries have set sales targets for electric cars. Bentley is embracing electricityThe British firm’s latest concept car, the EXP 12 Speed 6e, is a showcase for what an all-electric car wearing the Flying B might be like. Maybach unveiled its version of electric future in 2017. “The Vision Mercedes-Maybach 6 Cabriolet takes modern luxury into the realms of the ultimate in luxury and is the perfect embodiment of our design strategy,” said
Gorden Wagener, Daimler AG chief design officer, in a statement. The integration of AI (artificial intelligence) in cars. The number of intelligence (A.I.) systems used in infotainment and advanced driver assistance systems (ADAS) systems will jump from 7 million in 2015 to 122 million by 2025, according to a new IHS Technology report. By 2020, Gartner predicts, there will be 250 million cars connected to each other and to the infrastructure around them via Wi-Fi systems that will allow vehicles to communicate with each other and the roadways. For most of us, driverless cars will be gateway AI, one of the first domains in which humans will be asked to trust the reliability and safety of an AI system for a very complex task.
GROWTH POTENTIAL Rise in women’s spending Luxury automakers are paying to wealthy female buyers worldwide. Automobili Lamborghini SpA recently produced its first fully modern SUV; Ferrari NV and Aston Martin Lagonda Ltd. will soon do the same. According to IHS Markit, women buy more compact and midsize luxury SUVs-the single largest growth market among luxury brands than any other vehicle type. Saudi women will be able to legally operate vehicles, as of June 24, 2018, smart observers expect the 3-ton $450,000 V-12 coach to be overtaken in popularity by something rather more fun, such as the sporty two-door Rolls-Royce Wraith. Strengthen brand presence in Asia and other emerging markets Asia-Pacific is taking over North America as the largest holder of global wealth in 2019, making it an important market for Rolls Royce. Middle East, Latin America and Eastern Europe have seen tremendous growth in personal wealth, seen to be high-growth markets for Rolls Royce.
14
KEY SUCCESS FACTORS
KEY SUCCESS FACTOR OF LUXURY CAR INDUSTRY
1. Opulence and status provider Rolls-Royce •
Heritage
•
Personalization with artistic collaborations
4. Innovation
•
5. Personalization
Craftsmanshio with silent engine
•
2. Engines 3. Heritage
•
•
•
•
•
Opulence and status provider - this is they key requirement for any luxury car. The brand building process should focus on this.
•
Engines - Luxury cars brag about their engines and each engine has its music that its drivers crave to listen. It is one of the important aspects of poly-sensuality.
•
Heritage - using this factor for brand building is important as it allows customers to know the values of the brand and what it stands for. Innovation - innovation without removing the heritage factor is key. Brand like Maybach still have heritage but offer impeccable safty in their car (bullet proof) Personalization - every luxury car can be personalised but the extent to which the car can be personalized varies. It allows the owner to create an emotional bond.
•
STRENGTHS
Excellent customer service - luxury cars rely on excellent customer service with personal care and attention to detail and this increases repeat customers. Emotional connection - every luxury car hand-crafted (percent varies from car to car) and this creates and emotional bond between the car and its maker. Since it is made with human component, the maker knows how to give a car its soul which in return creates an emotional bond with its owners. Craftsmanship - the human component makes every car unique but with the perfect quality. The time taken to make a car perfect is enormous and luxury brands use that as a brand building tool.
6. Excellent customer service 7. Emotional connection 8. Craftsmanship
COMPETITIVE ADVANTAGE
DIFFERENTIAL COMPETITIVE ADVANTAGE
Rolls-Royce •
Opulence and Status Provider
Rolls-Royce
•
Personalization
•
Emotional Connection
Bentle
•
Craftsmanship
Bespoke services that makes • Heritage every car unique (customers can build their dream car) Bentley
Bentley
•
Heritage
•
Heritage
•
•
Excellent customer service along with excitment attributes.
Excellent customer service
•
Craftsmanship
•
Opulence and status provider
•
Very steady even on ice.
•
Performance and speed
•
Broad variety
Maybach •
Innovation in safety
•
Handmade engines
•
Has automated car technology (not in use)
•
Environmental friendly initiatives (solar panel on the car roof)
•
Craftsmanship
Maybach •
Innovation
•
Engines
•
Opulence and status provider
•
Heritage
•
•
Personalization
Excellent customer service
Maybach •
Innovation
15
COMPETITIVE ADVANTAGE
BENTLEY
About: Founded 1931 Parent: Volkswagen. Head quarter: Crewe, England Popular young and old. Price: 200,000 Models: 5 (at least 4 styles each) Core competency: Ability to produce broad range of silent sports cars that can be a cocoon.l
MAYBACH
About: Founded 1886. Parent: Daimler, Germany. Head quarter: Stuttgart, BadenWĂźrttemberg, Germany. Popular among Celebs and statesmen. Price: Starts at 168,000. Models: 5 Core competency: Research and develop better safety standards and provide best performance handmade engines.
ASTON MARTIN
About: Founded 1914 Head quarter: Gaydon, England Popular young and old bold customers. Price: starts at $186,000 Models: 6 Core competency: Creates cars that have the perfect power at optimum level enjoyment to provide safety and comfort.lifes
• Heritage • Engineered by Germans but • still a British royalty. • Every car is unique • Bespoke service • Elegant and silent • Using artists to immortalize art on wheels. • Craftsmanship • Innovative in terms of materials and design • Royal associations • Amazing cooling technology. • Creating emotional bond About: 1904 Parent: BMW Head quarter: Derby, England (Goodwood)
Popular: among royals and celebrities Price: starts at $300,000 Models: 5 (more-bespoke)
Core Competency: Reliable and unique opulent cars made through artistic collaborations to provide the unique art on wheels that become a travelling cocoon.
ROLLSROYCE
• Heritage • Quality & Durability • Speed / Silent Performance • Craftsmanship • Broad variety • Bio-fuel yet steady on ice (world record) • Easy to service • Collaborates with furniture artists • On demand service • Innovating for a customer • Extraordinary customer service • Personal touch (not in car) • Sporty & Cocoon
• Heritage • Speed and durability • Quality and performance • Never lost its identity “power, beauty & Soul”. • Builds hyper-cars & sedan • Craftsmanship • Guinness book of world record (2011) safest car. • Best IMC (product placements). • Racing / sports cars
• Heritage • Quality & Reliability • Has automated car technology (not in use) • Safety technologies • Environmental friendly (solar panels). • Good IMC Plan & centralized marketing strategy. • Longest and heaviest easy to maneuver cars • Multi-purpose • Handmade engines by single person • Bringing electric vehicle (2019) (quietest salon car) S600.
ELECTRIC CAR
16FUTURE
TRENDS
CONNECTIVITY
ENVIRONMENTAL FRIENDLY PARTS AUTONOMOUS DRIVING
• •
•
•
Without connectivity, it is difficult to complete tasks easily and efficiently. Cars currently do have wifi and other capabilities. In a decades time connectivity would be more convenient with cars being connected to cars, with easy access to office servers through cars, easy access to the home computer through a car. Connectivity in terms of AI in the car is set to take precedence by 2030.
•
Autonomous driving is the new trend that is currently a buzz in everyone’s ear.
•
Experiments are still being conducted to perfect the technology. However, it is a high possibility that it would be successful by 2030.
• •
Brands like Tesla have already released cars that are being tested and modified continuously. The use of Artificial Intelligence will elevate driving convenience and will be a quickly adopted technology.
Luxury cars like Maybach have solar panels on the roof of the car which generated 63 watts of electricity for the Air conditioning unit. This also allows the car to stay 15% cooler than other cars.
•
Brands already recycle their waste materials by giving them to fashion and other industries.
•
Environmental friendly parts should be added only if it elevated the aesthetics of the car or helps to enhance the functioning of the car. As just have an environmental friendly part wouldn’t elevate the brand awareness or create new associations nor help in brand building process.
•
An electric car is the newest disruptive invention which would become an innovation by 2040 as 54% of the new car sales is predicted to be electric (Bloomberg NEF).
•
According to Bloomberg NEF, it is forecasted that 530 million electric cars will be on the road by 2040, which will require 8 million fewer barrels of oil a day to run.
•
Development and complete adoption of this technology have to still go a long way, hence, governments like Norway, are providing an incentive to citizens who purchase electric vehicles.
•
By 2030, India would only sell electric cars according to CNN (June 3, 2017).
•
European countries and few countries in Asia have already started installing charging stations. *Appendix 1
17
TARGET CONSUMER
Rolls Royce was predominantly known as a rich old man’s chauffeurdriven car and this image has changed in recent years. According to the CEO, Torsten Müller-Ötvös, majority of the vehicles are for selfdrivers today, except for Phantom which is more like 70/30, 30% being self-driver. The average age of Rolls Royce owner is much lower around 45, which is 11 years younger than they were in 2010. It is a lot younger than the average new car buyer at 53 and the average luxury car owner at 50 according to Kelly Blue Book (KBB). Market research shows that Phantom buyers are mostly in their 50s and 60s; the affordable Ghost ($263000) buyer is roughly 10 years
younger; and the two-door Wraith and Dawn models are especially attractive to much younger people in their 30’s even 20’s. “We are seeing, in that segment of ultra-high-end-growth individuals, a fast decrease in average age,” Müller-Ötvös said. “It’s fantastic, it really is.” Even though older buyers tend to be loyal buyers, but as they age, their number naturally decreases. In order to develop future buying excitement, Rolls Royce brand image needs to be associated with younger customers in the future decade years. The company itself claimed that the Dawn model, a car clearly built for the self-driver, is attractive to sports car (Ferraris, Lamborghini) buyers, not in a way that would replace the Ferrari, but more in the way to have that in addition in the garage for a different driving or riding experience. The Dawn model has brought 80% of new customers to the brand in 2015. Therefore, attracting new and younger customers is extremely important for the future growth of Rolls Royce.
The brand was place at the 9th most male-dominated luxury car brands. In 2014, female purchases around 15% of Rolls Royce vehicles in the U.S., which is a substantial increase. Phantom only has an audience of 1% women, as women are very much interested in self-driver vehicles like the Dawn and Wraith models. Ghost also brought Rolls Royce business women drivers. Many successful women running businesses or building businesses up in the Middle East and Asia are some potential buyers of Rolls Royce. As women’s wealth is on the rise, many luxury automakers are paying attention to wealthy female buyers worldwide. Rolls Royce is not going to ignore such trend, and introducing the new SUV models in 2019 could possibly attract more women consumers in the future. Apart from that, women enjoy being chauffeured, but also don’t mind being the driver of their Rolls Royce. The percentage of women buyers of Rolls Royce may continuously increase in the next decade.
A typical Rolls Royce owner is one of the two sorts: the “ultra-rich net worth” who have over $30 million to spend a year, and the “high net worth” who have about $5 million to spend a year. They normally own more than three homes and three to six luxury sector vehicles, and they are mostly self-employed and entrepreneurs. 80% of Rolls Royce buyers build their fortunes by themselves, and the other 20% are often celebrities and athletes. Based on the information of existing Rolls Royce consumer analysis and research, below is the projected primary and secondary target consumers in year 2028.mind, EnvironMentality has rcing practices,
TARGET CONSUMER RESEARCH
Demographic info:
Lifestyle, psychographic info
Age :35 + Geographic: International continent in major cities of the Americas, Europe, Middle East and Asia Pacific Gender: Target mainly at male consumers, and welcome any female buyers. (The percentage of female buyers expect to increase to 30%) Income: High disposable annual income of at least $2 million Education: Bachelor’s degree or higher
Work and Leisure: • Balanced work and leisure lifestyle • Self-employed or top executives • Travel on private airplanes • Look for exceptional experiences • Enjoy outdoor activities • Eat at three star Michelin restaurants where the chef will prepare a private dinner for them
Behavioral info: • Can accept latest and advanced technology • Consume media through magazines for connoisseurs, TV, Mobile app news, and sometimes social media • Purchase luxury goods that are elegant and modern • Luxury consumption for selfindulgence & symbol of success • Particular about their expectations • Look for refinement and superior craftsmanship • Buy whatever they want as they are financially free
Secondary target consumers are younger and aspirational luxury vehicles buyers who have the potential to become the future primary buyers of Rolls Royce. “If you are not connecting at least on the aspirational level with a younger buyer, changes are when they get to 40’s or 50’s and are able to buy your product, they won't think of you” Stephanie Brinley- senior analyst- Americas at HIS Automotive. Secondary consumers can be young people in their 20’s and 30’s, who are current Porsche and Mercedes S class owners and have the potential to multiply their wealth in the future. They can also be those who might say “oh, guess what, I like this wraith, and I’ll put it in addition to my Ferraris into my garage, because driving Ferraris can be stressful from time to time.”
Interests: • Love to join events and parties that they need to have an invitation for • Appreciate any forms of art including literature, music, and performing art • Enjoy traveling to exceptional places • Love doing works that interest them • Enjoy reading & learning new things Relevant opinions and beliefs: • Determined and ambitious • Not afraid to express themselves • Seek for indulgences, experience of opulence, uniqueness, refinement and superior craftsmanship • Look for serenity in a cocooning environment especially when it comes to vehicle buying • Sometimes emotional and sensual ices,
PRIMARY TARGET CONSUMER
Demographic info: Age : 25 – 34 Income: one half million and has potential to multiply Education: Bachelor’s degree or higher Geography and Education are the same as primary consumers Lifestyle, psychographic info • Already making fortunes in new industries like IT, engineering, robotics, real estate, entertainment or any industry that able to generate wealth quickly. • Into latest and advanced technology and material, into interactive digital space • Active on social media • Environmental conscious • Luxury consumption as a symbol of success and a reward
SECONDARY TARGET CONSUMER
JACK WANG Age: 43 years old Occupation: Founder of e-commerce platform Residence: Handzhou, China Education: Bachlor’s degree in Business Wealth: 2.2 billion dollars Lifestyle: Self-made ectrepreneur. Lives an understated lifestyle. Work obssessed and has little time to enjoy life. Not born in luxury but learnt about luxury since success. Function is important to him. His values align with Rolls Royce "When things don't happen right away, just remember: it takes 6 months to build a Rolls-Royce and 13 housr to build a Toyota.
ELLA JARSDEL Age: 39 years old Occupation: entrepreneur, restaurateur, author, and television personality Residence: London and Los Angeles Education: Master’s degree in Business Wealth: 70 million dollars Lifestyle: Lives a glamorous and superstar lifestyle. Appears in various episodic television programs and luxury lifestyle magazines. Interested in fashion & beauty. Enjoys reading and writing. Conservative when it comes to luxury purchasing, prefers products that are sophisticated, elegant, and modern. Prefers more traditional luxury brands such as Chanel, Hermes, Givenchy, and Cartier.
RAM NARAYANAN Age: 50 years old Occupation: Businessman Residence: Mumbai, India Education: Graduate from Cornell University & Harvard university Wealth: 1 billion dollars Lifestyle: Urban, born with a silver spoon, travels everyday, life revolves around business and family, desires leisure time, lives lavishly, loves privacy, entertains guests regularly, his children live in luxury.
18
10 YEAR PROPOSAL
GOALS & OBJECTIVES 1. Build new brand associations to further strengthen the brand image
2. Respond to the current electrification trend in the automobile industry
3. Remain relevant through new technology and model introduction while maintaining the current level of exclusivity 4. Provide customer with the unmatched bespoke opportunities
5. Provide the ultimate luxurious driving experience with silence and comfort
The future of ultra-luxury car market will be a very complicated and exciting one for Rolls Royce. As more and more new money is being generated around the globe, Rolls Royce has an opportunity to target new customers in both mental and market space. Many ultra-high net worth individuals are self-made and young entrepreneurs who appreciate luxury vehicles that glide effortlessly in its poetic tone, as well as enhance their driving and back seat experiences. With the increase in longevity of human population, to the extent that the percentage of people over 65 will be 17% in the year 2050. (compared to 8.5% in 2016) Rolls Royce has the opportunity to retain the loyalty
of its existing and new customers. Hence, it is quintessential that Rolls Royce stays true to its traditional luxury roots while pushing the boundaries to employ optimum technology. Hence we introduce our goals and objectives. Two of the most important technologies for Rolls Royce in the next 10 years will be electrification and AI integration, both of which have set unstoppable trends in the luxury auto industry. This propels Rolls Royce to be creative in the integration and execution of these technologies to truly build up their brand equity instead of blindly following trends that could dilute the brand’s focus. Brand equity can be elevated through the introduction of new product offerings along with value additions, which is further dweled upon using the 6P’s.
STRATEGY OVERVIEW
product will cater to the growing customers selfdriven demand and Product opens opportunities Introduce at least one electric model in the next in countries like 10 years Saudi Arabia that has just provided women For Rolls Royce, the introduction of electric with the right to vehicle will not simply be for the sake of drive. Along with the following industry’s trends, an electric Rolls will old models of Wraith be quintessentially Rolls Royce and add value and Dawn our new to our clients. Electrification will make Rolls Coupe and SUV will Royce vehicles more silent, more comfortable provide customers to ride in, and better to drive because of its low with a perfect selfcenter of gravity which enhances stability. In driven experience addition, electric motors will require much less and the Phantom will maintenance, which makes the ownership of Rolls provide the ultimate Royce more convenient and pleasant.This cocoon experience. Purpose: To preserve and enhance the artistic expressions through luxury on wheels.
LUXURY INGREDIENTS
LUXURY INGREDIENTS
For over a century, the Spirit of Ecastacy has silently graced every Rolls-Royce. Now, she has a voice... Product: Integrate artificial intelligence into all models ( “AI service” and “AI driver’s safety.”)
Hey, Eleanor...
To build Rolls Royce’s brand equity, establishing refreshing and strong brand associations will be key. We will collaborate with IBM on the integration of artificial intelligence, and IBM’s “Watson” AI system will be a valuable addition to our already strong product offering. An association with IBM will promote progressive brand associations that allows Rolls Royce remain relevant. In addition, we want to leverage on Rolls Royce’s glorious past, especially Rolls Royce’s R-engine which played a major role in speed-record-setting by Bluebird. Along with silence, promoting new associations with power, speed and innovation, which are important to the next generation of consumers is the key. To successfully integrate AI into the entire Rolls Royce experience, we have developed two main usages for the technology: “AI
service” and “AI driver’s safety.” AI service allows any Rolls Royce vehicle to detect services or repairs that are due/unnoticed and report them automatically to the local dealership, who then contacts the owner to arrange for service pick-up and courtesy vehicles, making servicing the vehicle hassle-free and time-saving for the owner. AI driver’s safety will be an intelligent system with multiple sensors to detect driver’s health condition, which makes sure the driver of the vehicle is in good condition to drive the vehicle. Knowing the health condition of oneself or that of their chauffeur's will give Rolls Royce’s owner the peace of mind before they get on the road. It also detects health issues like a stroke and stops the car so an accident can be prevented. A new product that is more appealing to younger customers like a Mid-size SUV or a Coupe in both electric and gasoline. This will depend on the success of Rolls Royce’s first ever SUV; “Cullinan” in 2019. The midsize SUV and Coupe will be equipped with gears for leisure, travel and daily transportation.
LUXURY INGREDIENTS Pricing: The pricing structure will remain largely unchanged. Pricing for the electric model will remain exclusive and on the very top end of the electric car market. Placement: Expanding brand presence in developing markets is key for Rolls Royce due to the growing income and spending power in developing countries. In addition to technologies, Royce Rolls will expand its presence in developing markets such as China, India, and Brazil. Regions such as Asia-Pacific and Latin America are seeing tremendous growth in terms of the share of global wealth and the number of billionaires according to Statista. It is important to establish strongholds in these up-andcoming markets in order to capitalize on the sales potential later on without diluting the brand density. People: An addition of focus on service personnel apart from the existing craftsmen in the Goodwood factory (future electric vehicles will not require as many workers to produce). The use of customers as a brand builder is important as they are part of the designing process. Top clients can be leveraged during private events to promote the new Coupe and SUV as even the rich admire the richer. Promotion: Leverage on brand associations of the past, as Rolls Royce used to be a pioneer in car engine technology. This will provide the associations of speed and power along with the existing silent aspect. Build brand associations with AI technologies such as IBM’s
“Watson” which will provide associations with high-tech innovation. Launch events for VIP clients that offer test drive and pre-ordering services for the new Rolls Royce electric or gasoline cars. Polysensuality - along with the replacement of V12 engines with electric engines the music of the engine would be replaced as well, thus, an important aspect of the car is lost. However, this can be turned to an advantage. As one of the senses is lost another gets elevated. So the constellation on the ceiling of the car can be made to move or other aspects of the car can help enhance another sense to compensate for the lack of engine sound. Social media platforms can be leveraged to play microvideo focusing on product uniqueness and excellence along with instilling new brand associations. Promotion codes would be very private and discreet, which only the connoisseur car enthusiasts will associate with. The Rolls Royce club would be a synonym to secrecy and using this club we will promote the brand rather than rely on endorsements. The purpose of the brand promotion is to instill excellence, uniqueness, high-tech and artistic expression in the minds of customers through the focus on artistic videos of product making, the focus on bespoke services and the silent powerful engine. The promotions would be conceptual and will rely on silent power and leverage the culture of British heritage and royalty with an ethnocentric approach.
UNIQUE PROPOSITION • AI provides hassle-free maintenance service • AI driver’s safety gives customers peace of mind • The ultimate level of customization and personalization • A luxury electric car experience like no other on the market
19
CONCLUSION After intensive research and analysis a concrete conclusion was derived that, Rolls-Royce with its strong heritage, brand loyalty and awareness wouldn’t drastically shift its ethnocentric approach in the next 10 years. The brand will nonetheless do everything possible to stay relevant in the market without diluting its brand equity and density. Our first strategy, investing in AI safety and service technology to enhance customer experience post, during, and pre-purchase and use, would help strengthen Rolls-Royce’s brand equity. Further investing in electric engines 10 years prior full adoption of the technology by the mass market would allow the brand to establish itself as a leader in the luxury segment. The electric cars would be an addition to its existing models along with keeping the gasoline engines, this will help in slowly converting its existing customers. However, Rolls-Royce should invest in developing the engines further to meet their standards by leveraging their parent
company and not simply use existing technology. Rolls-Royce has to set itself apart by creating an engine that could be patented and could become proprieties in the future, otherwise, the brand image and density could be diluted. The third and final addition is the launch of new models like coupe and a midsize SUV. This would allow Rolls-Royce to add variety to its existing offerings along with attracting new customers. With increasing longevity of humans, attracting young customers (35 and above) and having their loyalty for the rest of their life would benefit RollsRoyce in the long run. To conclude our three strategies can be combined and promoted using existing customers through private events, continuing to provide bespoke services and an excellent one on one consultations to make a customers dream car. Existing resources such as people and distributors have to be leveraged for a successful launch and continued adoption.
20
APPENDIX-1
APPENDIX-2
22 BIBLIOGRAPHY •
https://www.bmwgroup.com/en/investor-relations/financial-reports.html
•
https://www.youtube.com/watch?v=M5umvhkCUWI
•
https://www.thenational.ae/business/bespoke-is-the-way-to-go-for-rolls-royce-1.697292
•
https://www.rolls-roycemotorcars.com/en-GB/information/our-download-library.html#brochure : broachers
•
https://www.rolls-roycemotorcars.com/en-GB/home.html
•
http://www.academia.edu/7033015/PEST_Analysis_on_the_automobile_industry
•
https://www.theverge.com/2017/12/5/16735690/lamborghini-uru-luxury-suv-bentley-bentayga
•
http://www.sparknotes.com/history/european/1871-1914/section1/
•
https://www.businesswire.com/news/home/20180105005378/en/Global-Luxury-SUV-Market-2017-2021-Audi-BMW
•
http://www.historyhome.co.uk/peel/politics/reform.htm
•
https://www.autocar.co.uk/car-news/new-cars/bentley-target-younger-customers
•
https://www.motor1.com/news/137944/rolls-royce-argues-no-competitors/
•
http://www.businessinsider.com/ferrari-merchandise-and-licensed-products-2015-10
•
https://www.mbaskool.com/brandguide/automobiles/4328-rolls-royce-motors.html
•
http://money.cnn.com/2017/09/11/autos/countries-banning-diesel-gas-cars/index.html
•
https://www.press.rolls-roycemotorcars.com/rolls-royce-motor-cars-pressclub/video/detail/PF0005569/new-phantom-the-gallery-by-nymphenburg
•
https://www.caranddriver.com/news/bentley-exp-12-speed-6e-concept-ev-photos-and-info-news
•
https://www.press.rolls-roycemotorcars.com/rolls-royce-motor-cars-pressclub/video/detail/PF0005570/new-phantom-the-gallery-by-nature-squared
•
https://www.architecturaldigest.com/story/mercedes-maybach-unveils-stunning-new-all-electric-luxury-convertible
•
https://www.carthrottle.com/post/the-rolls-royce-cullinan-has-a-one-touch-viewing-suite-at-the-back/
•
https://www.computerworld.com/article/3083426/car-tech/heres-how-ai-is-about-to-make-your-car-really-smart.html
•
•
https://www.marketwatch.com/story/ai-in-2018-waiting-for-driverless-cars-to-become-a-reality-2017-12-27
https://www.press.rolls-roycemotorcars.com/rolls-royce-motor-cars-pressclub/article/detail/T0277885EN/rolls-royce-motor-cars-2017:-the-year-ofbespoke?language=en
•
https://www.bloomberg.com/news/articles/2018-03-06/aston-martin-revives-lagonda-luxury-with-a-radical-electric-sedan
•
https://www.dezeen.com/2017/07/28/latest-rolls-royce-phantom-car-design-incorporates-art-gallery-in-dashboard/
•
https://www.forbes.com/sites/jackperkowski/2017/10/10/china-raises-the-bar-with-new-electric-vehicle-rules/#3f8a241977ac
•
https://www.youtube.com/watch?v=-ZQjAevcBek
•
https://www.luxurysociety.com/en/articles/2014/12/in-conversation-with-torsten-muller-otvos-ceo-rolls-royce/
•
http://www.businessinsider.com/rolls-royce-to-skip-hybrids-and-go-straight-to-electric-cars-2017-7
•
https://www.bloomberg.com/news/articles/2018-02-13/luxury-automakers-are-finally-discovering-the-power-of-women-buyers
•
https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/disruptive-trends-that-will-transform-the-auto-industry
•
https://www.theguardian.com/business/2015/sep/08/rolls-royce-convert-women-new-dawn
•
https://www.youtube.com/watch?v=KNiHO3OCTrc
•
https://www.luxurysociety.com/en/articles/2014/12/in-conversation-with-torsten-muller-otvos-ceo-rolls-royce/
•
https://www.topspeed.com/cars/mercedes/2019-mercedes-maybach-s-class-ar179858.html
•
http://www.autonews.com/article/20000401/SUB/4010722/a-look-at-the-rolls-royce-life
•
https://infogram.com/mercedes-benz-1g6qo2qwzje7278
•
http://www.autoguide.com/auto-news/2014/09/buys-rolls-royce.html
•
https://en.wikipedia.org/wiki/List_of_Mercedes-Benz_engines
•
https://deepknowhow.com/2017/04/18/rolls-royce-wraith-black-badge-for-younger-demographic/
•
https://www.youtube.com/watch?v=vMkwBWrJtNw
•
https://www.bloomberg.com/news/articles/2017-06-28/rolls-royce-drivers-are-a-lot-younger-than-you-think
•
https://www.youtube.com/watch?v=bL1UyGwxKrU
•
https://research-methodology.net/bmw-segmentation-targeting-and-positioning/
•
https://www.youtube.com/watch?v=Xuc8sVERy6Q
•
https://www.press.rolls-roycemotorcars.com/rolls-royce-motor-cars-pressclub/article/detail/T0267065EN/rolls-royce-motor-cars-announces-second-highest-sales-record-in-marque%E2%80%99s-113-year-history?language=en
•
https://www.mercedes-benz.com/en/mercedes-benz/mercedes-benz-tv/innovation/e-mobility-mercedes-benz-is-electrifying-the-future/?v=AiplVDi1_nM
•
https://auto.howstuffworks.com/1907-1926-rolls-royce-silver-ghost.htm
•
https://www.mercedes-benz.com/en/mercedes-benz/vehicles/passenger-cars/mercedes-maybach/
•
https://www.rolls-roycemotorcars.com/en-GB/house-of-rolls-royce/the-history-of-rolls-royce.html
•
Bently - https://www.marketing91.com/marketing-strategy-bentley/
•
https://en.wikipedia.org/wiki/Rolls-Royce_Limited
•
https://www.youtube.com/watch?v=g1y191bbbno
•
https://www.slideshare.net/DanielBernardi/dissertation-aston-martin-2012
By Fang Ben |Nivedita Govila | Angela Peng Nanthitha Shanmuhasundaram LXFM-730 | Marketing Strategies for Luxury Brand and Experiences Prof. Alessandro Cannata Winter 2018