Rolls Royce Market Plan

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  • Topic: Rolls-Royce Motor Cars, Luxury vehicle, Rolls-Royce
  • Pages : 6 (910 words )
  • Download(s) : 141
  • Published : March 19, 2011
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Objectives Environment Analysis Targeting Position 4 P’s Analysis Budgeting Monitoring

1. Objectives
“Be the leader provider of premium products and premium services for individual mobility”

Market Share**
Sales
• Units per year (worldwide): 2008: 1,212 cars 2009: 1,002 cars 2010: 2,711 cars 2011: +10% vs. 2010 +10% 2,711
**US DATA BMW group includes: Rolls Royce, Mini & BMW brands

• Mercedes: 1.6% • Audi: 0.8% • Porsche: 0.2% • Jaguar: 0.1% • BMW group: 1.7% Objective  + 0.1% Market share BMW group in mature markets and gain presence in growth regions

Financial Objectives*
1,212 1,002

• EBIT margin: 8% - 10% • Pre tax return on sales: 7% • Gross margin: 15% • Net value added: +40% 2010 2011
*BMW group includes: Rolls Royce, Mini & BMW brands

2008

2009

Others include: Sustainable mobility, social responsibility, Global trend  Emerging markets

2. Environment Analysis  2.1 PESTL
Political
Tax policy
Increase in prices within the luxury automobiles sector

Technological
Sales
Not possible to do any type of transaction online nevertheless it can be the first way to contact a dealer.

Trade restrictions & barriers
In some nations protectionist measures can drive to impose such measures making it hard to enter.

Rate of technological change
Even though Rolls Royce is a traditional brand of cars, new models need to comply with advanced technology that go in had with its well recognized engineering quality.

Economic
Purchasing Power
Outstanding when analyzing luxury brands.

Legal
Environmental regulations regulations regarding Global climate change “ Competitor trade regulations

Globalization
New market entry  Emerging economies

Recessionary pressures
As many other luxury brands can be deeply affected by financial

Exchange rate
Weakening of the dollar

Social
Income Distribution
“Rolls Royce only targets potential customers who have liquid assets in excess of $30 million”

Living conditions
Baby boomers are a “large demographic group with concentrated spending power”

2. Environment Analysis  2.2 SWOT
Strengths
 Tradition as a solid backup (Est. 1904)  Design + Comfort + Quality  High brand awareness  Leader in the premium automobile manufacture  Stability under the BMW group stewardship  Bespoke personalization program  Uniqueness

Weaknesses
 Traditional image might be an obstacle for conquering “young” potential rich customers

Opportunities
 Subsidiary of the BMW group  Globalization  New emerging markets with potential clients  Technology adapted to traditional cars

Threats

 Economic recessions  Emergence of more economic automakers offering “luxury” cars (Ex. Lexus from Toyota of Infiniti from Nissan)

3. Targeting Position
Price
Rolls Royce Audi

Quality
Renault Lada

Positioning Segmentation

Targeting
•  “Old Money” Customers  Look after an heirloom that can be passed to future generations •  “New Money” Customers  Looking for instant recognition •  There are approximately 85,000 potential customers worldwide •  Wealthy

•  Geographic: Europe North America & Middle East (emerging markets are starting to be considered : India & China) •  Socio demographic: Net worth of $30 MM (large fortunes) / Royalty or entrepreneurs / Own more than 3 houses / Have 6 or more luxury or collectable cars •  Behavioral: Customers have a clean and distinguished look. Look for: superiority, performance, reliability & quality •  Psychographic: Luxurious lifestyle / Status symbol

•  Superiority •  Performance •  Technologically advanced •  Quality automobile producer •  Exclusive •  Luxurious •  Tradition •  Refinement •  Contemporary style •  Outstanding engineering •  Reliability

4. 4 P’s Analysis
Product
-  “Luxury motor car par excellence” -  2 models available on the market: Ghost & Phantom -  Technologically advanced cars -  Personalized features available “Only you know what your special Rolls...
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