Rolls Royce strategic brand management

Strategic Brand Management: P58211 Professor: Bjoern Asmussen

Group Members:

Luca Ornella: 15128108 Martina Mingardo: 15121615 Salvatore Campitiello: 15122163 Nasim Iqbal: 15117743 Mauricio Ortegon: 15123143 Sourav Sen: 15125807

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What is Rolls-Royce Motor Cars selling?

• Kotler P., Armstrong G., Harris L., and Piercy N. (2013). “Principles of marketing”. 6th edition Australia: Pearson

Core Product • Car • Heritage • Status Symbol • Exclusivity

Actual Product • Brand Name • Quality Level • Design • Metaphorical Packaging • Features

Augmented Product • Delivery • Warranty • After-sale Service

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A B COF MARKET POSITIONING

ttributes enefits laims

• Kotler P., Armstrong G., Harris L., and Piercy N. (2013). “Principles of marketing”. 6th edition Australia: Pearson 5

A

B

C

Rolls-Royce is an outstanding super luxury car with an iconic design, handcrafted and made in England.

Rolls-Royce gives to the customer an immediate recognizable status of royalty and heritage.

The customer service is matchless.Rolls-Royce is made to be the best car in the world,

it is design without compromises. Trusted to deliver excellence, enjoy the silence.

• Kotler P., Armstrong G., Harris L., and Piercy N. (2013). “Principles of marketing”. 6th edition Australia: Pearson 6

The customer which is an eccentric millionaire

is looking for self fulfillment in social environment.

This makes Rolls-Royce in a direct competition

not only with cars but also with yacht and private jet.

• Dibb S., Simkin L., Pride W M., and Ferrell O C. (2012) Marketing Concepts and Strategies. 6th edition. Andover: George. 7

0

1250

2500

3750

5000

2007 2008 2009 2010 2011 2012 2013 2014 2015

From 2008 Rolls-Royce dealer network expanded to 80 new showrooms including Saint Petersburg, Kiev and Dresden Top selling dealers are Abu Dhabi, Beverly Hills and London.

Launch of Ghost series II in November 2014

How many cars does Rolls-Royce Motor Cars sell?

For sales and dealers references see appendix8

Who is Rolls-Royce Motor Cars selling to?Selected few individuals with

liquid asset in excess of 30 million dollars

Entrepreneurs Self Employed Celebrities

Old Money Buyers New Money Buyers• Status symbol • Heirloom

• Status symbol for the new rich • Instant recognition

For references see appendix 9

• Pure creation• Unique work • Materialized perfection• Survive the trends• Small series, workshop, handmade work, very fine craftsmanship• Series, factory highest quality in the

category• Mass series • Cost pressure• Average quality

• Kapferer, J.N. (1997). “Managing Luxury Brands, The Journal of Brand Management,”.

The brand

The upper-range brand

The luxury brand

Inaccessible luxury

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Tranformation GridReduce • No ways to say that Rolls-Royce

is doing a bad work

Stop • Restricting itself in just one

customer sector maintaining too strictly rules about exterior design

Start • New ways to exhibit the brand

as fashion, modern and luxurious

Raise • Increment the communication

through social media • Increase the dealers network

• Chernatony. D. L. (2012). From Brand Vision to Brand Evaluation. 3rd Edition. New York. Rutledge. 11

Brand Revival Strategy

Highlight the crucial aspect of the past and in the meanwhile revitalize the brand

Need to feel at home, research of landmarks Express self identity being fashionable

Exploit the nostalgia of the past to create a modern product Vintage is fashionable and can express self identity without changing Rolls-Royce values

“Awakening” of the brand catching both “new” and “old” money

Effects

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Back to the roots Campaign

Reviving an old model

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ROLLS-ROYCE SILVER CLOUD 1 DROPHEAD COUPE

ROLLS-ROYCE PHANTOM 1 JONCKHEERE COUPE

Curvy design more likely to appeal to a younger customer and women than the square

shape design of current models16

Rolls-Royce and Mansory

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• Targeting new segments by promoting Rolls-Royce’s existing relation with Mansory

• Mansory has many followers on social media where it shows the latest innovations and customizations.

Effects

• To attract those potential buyers who desire ‘self-identity’ with the unique qualities behind a modified Rolls-Royce

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Who are the potential consumers that may be attracted ?

• Young consumers primarily of ‘new money’, both male and female

• Consumers interested in fashion and new trends

• Those who just want to separate themselves from social cultural norms and stand out. Those interested in ‘self-expression’.

Why Mansory?

• The German based luxury car modification is exclusive in its on right, working with only top luxury brands.

• They already have a working relation with Rolls-Royce Motorsports.

• A potential tie up between these two organizations would greatly benefit both sides, even without the relationship being exclusive.

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Nostalgic advertising campaign with

celebrity endorsement

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• A great Youtube campaign with the support of a great personality such as an actor doing what he knows how to do best: recite

• Celebrity credibility, trustworthiness, attractiveness, similarity, the match-up congruence with the product

• Creation of nostalgia throw the impressive impact of a campaign that express the values and perfection that was the dreams of both Charls Rolls and Sir Henry Royce

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Why nostalgia? • Nostalgic advertisement is going to

hit the hearth of the consumers with a powerful emotion.

• Nostalgic advertisement has been widely used by those firms which have a long history behind them. Rolls-Royce has more than a hundred years of history and that means that has a lot of story to tell. Nostalgic advertisement if developed properly in a short movie format can express both the past and present together.

Why celebrities? • The strategy of actor endorsement

has positive effects for both company and celebrity.

• Companies try to find testimonials that are widely seen as a reference point, excellence in their field, and are suction for the new emerging class.

• Celebrities have great visibility on social media allowing them to capture the interest of many people around the world.

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Risks and Benefits• Conflict with current customers who buy the brand for its traditional design.• Uncontrollable Celebrities behaviour can affect the image of the brand.• Loss of car identity due to modifications.

• Attract younger/women customers.• Renew the brand concept.• Start the battle in the competitor´s market.• New advertising for existing cars is not enough to catch the attention from the

zeitgeist customers.23

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References• Dibb S., Simkin L., Pride W M., and Ferrell O C. (2012) Marketing Concepts and Strategies. 6th edition. Andover: George.

• Kotler P., Armstrong G., Harris L., and Piercy N. (2013). “Principles of marketing”. 6th edition Australia: Pearson

• Edwards, H. and Day. D. (2005). Creating Passion Brand: Getting the Heart of Branding. 1st edition. London. Kogan Page.

Ltd.

• Chernatony. D. L. (2012). From Brand Vision to Brand Evaluation. 3rd Edition. New York. Rutledge.

• Asmussen, B., March. H. S., Occhiocupo. N. and Farquhar, J. (2013).

“The Multi-Layered nature of the Internet-based Democratization of Brand Management”.

Journal of Business Research. Vol 66, PP. 1473-1483. 26

• Hyun, H. K., Lee, H. J., Kim, M., and Cho, S. (2015).

Style synthesis and analysis of car designs for style quantification based on product appearance similarities.

Journal of Advanced Engineering Informatics. Vol 29, PP483-494.

• Rolls Royce Website. 2016. Available at: (online) http://www.rolls-royce.com/sustainability/better-power/

customer.aspx.

Accessed on 06/04/2016.

• Rolls Royce. Available at: (online) http://www.rolls-royce.com/country-sites/singapore/customers.aspx.

Accessed on 07/04/2016.

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• Rolls Royce Our Story. 2016. Available at: (online) http://www.rolls-royce.com. Accessed on 07/04/2016.

• Rolls Royce Trust Objectives. 2016. Available at: (online) http://www.rolls-royce.com/. Accessed on 07/04/2016.

• Understanding the Luxury Car Buyers WARC. 2016. Available at: (online) http://www.warc.com/Pages/. Accessed on

07/04/2016.

• Brown S., Kozinets R.V., Sherry J.F., Teaching Old Brands New Tricks: retro Branding and the Revival of Brand Meaning,

Journal of marketing, 2003

• The Guardian. 2016. Available at: (online) http://www.theguardian.com. Accessed on 07/04/2016.

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• Katz, Alan. Posh Cars Pile Up As Demand Drops. Business Report (2004)

• Lienert, Dan. What Your Car Say About You. Forbeb.com (2007)

• Pancevski, Bojan. Super-Rich Make Marque on Rolls Royce. The Telegraph (2007)

• Reed, John. Rolls Works Hard On Its Soft Sell Marketing. Financial Times (2007) pag. 10

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