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Assessment Record & Cover Sheet

Assessment information

Course(s) Marketing Principles

Semester & Year Semester 1, 2019

Due Date: Week 9 / 12 of May 2019


th

Assessment Task 2: The Marketing Plan

Group:

Name Student No
Huynh Thien Tran Do s3752590
Made Agit Govanda Rajendra s3716185
Duong Minh Nguyen s3738723
Ida Bagus Sidhanta Brahmanda Yoga s3760315

Assessor to Complete:

Assessment Result:

Comments/Resubmission
Arrangements (if applicable):

Teacher Name:
Date:

Students are to submit the marketing plan document electronically via turnitin on canvas on 12 th of May
2019 11.59pm.

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MARKETING PLAN- HA | ROLLS ROYCE CULLINAN
Situational Analysis
Firm’s Mission & Vision
The mission of Zagame is mainly to collaborate with many world-famous car brands such as Audi,
Ferrari, Lamborghini, Romeo, Royce rolls to offer and sell them to customers. Furthermore, Zagame
wants to improve the sales of the Rolls-Royce SUV, the Cullinan and make Rolls-Royce Brands car as
a car for all target markets, not only for old people but also for rich young people (Zagame).

Market Details
- Industry current performance: (Thomson, 2018)

- Industry life cycle stage:

THIS INDUSTRY IS MATURE (Thomson, 2018)

The industry's performance is largely tied to the volume of new car sales. As the vast majority of
imports are transferred through the industry to dealers and fleet buyers, industry revenue has grown in
line with demand for imports (Thomson 2018). Demand for imported motor vehicles has grown over the
past five years due to a consumer shift towards fuel-efficient vehicles and increased demand for
commercial fleet vehicles (Thomson, 2018).

The industry has benefited from the consumer preference towards comparatively smaller and more
fuel-efficient vehicles and the transition of local motor vehicle manufacturers into pure importers over
the next five years is expected to provide a further boost to the industry (Thomson, 2018).

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MARKETING PLAN- HA | ROLLS ROYCE CULLINAN
- Industry Outlook: (Thomson, 2018) - Barriers to Entry: (Thomson, 2018)

- Market trends / Sales Predictions:


Smaller, fuel-efficient cars, SUVs and utility vehicles have become increasingly popular over the
period since people are now more aware of environmental-related issues as well as a great deal of
saving in cost (Thomson 2018).

(Passport,2019)

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MARKETING PLAN- HA | ROLLS ROYCE CULLINAN
Marketing Environment

Economic Factors
“Mr. Politis, who owns 36 percent of the $1.6 billion ASX-listed car dealership group AP Eagers, says
there is a clear link between house price growth and the prestige end of the vehicle market. He said the
big rise in house prices over the past few years on the eastern seaboard, in particular, had helped fuel
strength in the vehicle market, along with the very low-interest rates and leasing deals available to
customers. But falling housing prices in Sydney and Melbourne are likely to start putting the brakes on
prestige vehicle sales because of the wealth effect.” (Evans, S, 2018, Apr 10).

Cultural/Social Factors
“Australia has posted its third vehicle market record in four years with 1,178,133 new passenger cars,
SUVs and commercial vehicles sold in 2016, an increase of 2% on the previous year's record. "It is an
intriguing and exciting time for industry watchers as there's little doubt we are observing a significant
and dynamic transition in consumer preference. While buyer demand for traditional passenger cars
remains healthy, it's clear consumers are gradually transitioning into other segments.” FCAI Chief
Executive Tony Weber said.” (Leggett, D, 2017, Jan 09)

Technology Factors
“Automakers are racing to satisfy new 54.5 mpg corporate average fuel-efficiency (CAFE) targets for
2025. They report plans to use more aluminum in the production process beginning in the next few
years. Aluminum is about one-third lighter than steel but costs about 2-3 times as much per pound. Yet
a 10 percent reduction in weight means about a 7 percent improvement in fuel economy for the life of
the average vehicle. Therefore, vehicles like SUVs, pickup trucks and luxury sedans can shed pounds
more easily in a material switch which may improve the fleet economy.” (Atlanta, 2015, Mar 16).

Environmental Factors
“Therefore, "The more aluminum that is recycled, the better the aluminum supply picture, especially in
the near term, while the industry waits for new primary production to come on stream," says Tony
Palermo, program manager, metallurgy, for Linde LLC in North America.” (Atlanta, 2015, Mar 16).

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MARKETING PLAN- HA | ROLLS ROYCE CULLINAN
Political/Legal Factors
“The Australian automotive industry took a hit in August with sales down 0.2% compared to August last
year. Only 93,336 vehicles were sold.
Prior to the Government's 16 July fringe benefit tax (FBT) change, vehicle sales had increased, on
average, by around 4.8% each month, compared to the same periods from 2012. The Federal
Chamber of Automotive Industries (FCAI) expected last month's sales to be around 98,000 based on
year to date trends, without the negative impact of the FBT change.” (Roberts, G, 2013, Sep 04).

Seasonal/Climatic Factors
"It seems likely that the timing of the Easter and Anzac Day holidays, combined with school holidays,
has been the major factor contributing to lower sales in the past month," FCAI chief executive Andrew
McKellar said.
New car sales in the month were 74,214 vehicles, down 8.8% on the corresponding month in 2010,
according to data from the Federal Chamber of Automotive Industries (FCAI) cited by the Herald Sun
newspaper. (Bromsgrove, 2011, May 05).

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MARKETING PLAN- HA | ROLLS ROYCE CULLINAN
SWOT Analysis

Strengths

• Every design is distinctive and exclusive as the only one.

• Expressing the ultimate luxury lifestyle for customers.

• Have many events that allow customers to drive cars.

Weaknesses

• Roll Royce is a very luxurious car brand. this vehicle is considered as a vehicle for the rich and
lower class cannot buy. Besides, there is high tax rate (30% on the value of the car).

• The process of manufacturing the Cullinan normally takes up to 6 months.

• Only those who have addresses in Melbourne would have chance to own a Cullinan.

• Does not offer any membership benefits at the moment.

Oppotunities

• Attracting who are rich and interested in showing their own personal lifestyle.

• The SUV design will catch up with the current trend and create a breakthrough for Rolls Royce,
a famous brand for luxury limousines.

• Thanks to trial drive events, customers can experience in the realest way, which may increase
the sale rate.

Threats

• Cullinan will face up with other SUV cars from competitor brands such as Bentley Bentayga.

• Costs are increasing: costs of raw materials are increasing and fuel costs are also increasing.
Future vehicle research is also expensive.

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MARKETING PLAN- HA | ROLLS ROYCE CULLINAN
Current Marketing Mix
Product:
Every Cullinan with unique design will expresses customers’ own lifestyles.

Promotion:
• On the website of Rolls Royce, there are advertising videos to promote the new model -
Cullinan. To be more specific, the short clips rotated around how three different ethnicities live
their life in the most extravagant way along with the Cullinan. Through these videos, viewers will
be attracted by the lifestyles that Cullinan can bring for them.

• Chloe is now running 8 driving events a year at the moment. She also suggested that
sometimes it might increase to 1 event on a weekly basis. Chloe is also attempting to expand
her relationship with new customers via her current clients.

Physical Evidence:
• Zagame is located in Richmond because there is more space for car parking compared to the
metropolis. Besides, the showroom in Richmond has a café in which customers could enjoy
their snacks while having their car washed or carved with personalized details.

• Customers who wish to to purchase the Cullinan will be invited to Zagame’s branch located in
Richmond where an intimate car introducing activity will be established. Furthermore, customers
can savour a cup of beverage of their choice and a small brunch while waiting for their car to be
ready. Lastly, customers can hit the road with their brand-new Cullinan, off to wherever they
intend to after the event is over.

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MARKETING PLAN- HA | ROLLS ROYCE CULLINAN
Recommendations Report
Marketing Objectives & Strategy
Objectives:

• Increase the number of customers to at least 5 new people in the next 12-month period once
the partnership campaign with Park Hyatt Melbourne is launched.

• The preconceived notion of an “old-man” automobile will be eradicated for 18,000 potential
customers during the first year of implementation

Strategies: All of our projects will be conducted within a 12-month period starting from January
2020.

• Zagame will offer an enticing car-renting service for Park Hyatt Hotel compared to other
corporates’ services. (applied only for customers whom book the PRESIDENTIAL SUITE.)

To start off, we are going to provide Park Hyatt Melbourne with a couple of benefits. Firstly, we
are going to offer digital-based membership cards to all of our current customers who have
remained loyal to our brand at Zagame since the date of its establishment. This application will
offer greatest convenience for our customers while staying in the most luxurious hotel in
Melbourne. As a consequence, customers may find this feature enticing enough to make a
reservation at this hotel.

Nonetheless, for the purpose of compensating other sources of payment ( driver training,
printing fee, membership card fee, yearly salary for driver and so on ), we will later charge the
hotel 10% of the proceeds Park Hyatt Melbourne collect from our customers’ room service ( not
including extra services ).

• Furthermore, we also carry out driving events at Park Hyatt Melbourne to help customers
experience the ultimate features of Cullinan. Simultaneously, customers will be granted a
special paper weight in the shape of Cullinan symbol.

• This will be another partnership contract between Zagame and Get Your Guide coporation to
promote our Cullinan through an exclusive city tour service ( for PRESIDENTIAL SUITE
customers only). However, Zagame will only act as a third party to maintain the relationship
between the hotel and the travel agent.

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MARKETING PLAN- HA | ROLLS ROYCE CULLINAN
Competitor Analysis

Bentley Bentayga Lamborghini Urus

Strengths The quality is nearly equivalent Having a sportier style than


but cheaper than Rolls Royce Rolls Royce Cullinan, which
Cullinan. attracts more young customers.

Having a higher brand


recognition than Rolls Royce.

Weaknesses Can not do for off-road drives or Too much noise and vibration
provide a raised driving. (2017 are transmitted into the cabin.
BENTLEY BENTAYGA, 2016) (Towler, 2018)

Not very suitable for use on


jammed and very crowded
roads because the engine is
very fast heat.

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MARKETING PLAN- HA | ROLLS ROYCE CULLINAN
Desired Positioning
Current positioning 1

Desired positioning 1

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MARKETING PLAN- HA | ROLLS ROYCE CULLINAN
Current positioning 2

Desired positioning 2:

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MARKETING PLAN- HA | ROLLS ROYCE CULLINAN
Area of Differentiation

• Every design of both the engines and the interior features are distinctive and exclusive as the
only one as a whole

• Customers can have their automobile manually customized according to their personal
preferences

• Cullinan can withstand a plethora of outrageous terrains to offer the most unique and luxurious
experience while driving

• Cullinan can also help boost the status of the owner significantly when displayed on the street or
in the parking lot

Target Market

Very small, affluent and niche Melbourne segment with an interest in the super luxury and adventure (whom opt
for the Presidental Suite)

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MARKETING PLAN- HA | ROLLS ROYCE CULLINAN
Marketing Mix

Product/Service;

• PICK-UP AIRPORT SERVICE (ONLY for customers whom book the PRESIDENTAL SUITE)
- Park Hyatt can utilize our Cullinan for a full 12-month course.
- Customers will be free of charge for this service.
- Zagame will charge 10% per night of the room fee that Park Hyatt collect from our members
as a hiring car fee (if there is not any Zagame’s member visit the hotel, we will let them use
our car free).
- Our driver of airport pick-up service will come early 15 minutes to ensure the punctuation.
Moreover, the Park Hyatt hotel’s concierges will help customers with their luggage.

• MULTI-TASKING MEMBERSHIP CARD (ONLY for Rolls Royce owners at Zagame)


- When Rolls Royce members check in at Park Hyatt hotel, the special feature of this card
allows it to replace the card of the Park Hyatt hotel and access to it’s all services.
- It is applicable to all branches of Park Hyatt worldwide.
- Brief information of customers and their photo for identification purposes will be sent from
Zagame to the hotel if the card is tapped on compatible devices.
- Room reservation information will also be saved onto this card once the card number is
entered at the end of the booking process -> reducing procedures time.
- Customers can also top up this card in advance to use for any extra services at the hotel
through three ways:
+ When they make room booking on the website of Park Hyatt.
+ Anytime at the Park Hyatt’s reception.
+ On the Zagame’s website at Rolls Royce membership category.
- Customers can still use the card to enjoy the hotel’s services even when the money on the
card is up.
- All information about activities involve using the card (tapping, top – upping, information
sharing, over-using, etc.) will be directly updated on Zagame’s website so customers can
control them.
- Customers must tap their card when checking out to ensure that they have paid everything.
Any over-used amount must be compensated before leaving.
- Leftover money can also be utilized for any purchases at Zagame (cleaning car service,
maintenance service and so on).

• CITY TOUR SERVICE (ONLY for customers whom book the PRESIDENTAL SUITE)
- Zagame (the third party between Park Hyatt and Get Your Guide) will update information of
the top 10 most popular tours from the travel agent to the hotel (including lunch fees and
tourguide fees according to each option).
- This a day-trip tour will be conducted on Friday of every week
- This project will be carried out as the same time with the airport pick-up service.
- Customers will be fully charged if wish to enjoy this service.

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MARKETING PLAN- HA | ROLLS ROYCE CULLINAN
Booking process:

- The first step takes place after the customers have finished picking their desired room and hotel
services
- Services provided as a result of our partnership will only be accessed by PRESIDENTIAL
SUITE customers. (illustrated under step 1)
- Late fees will be applied if customers book the pickup and city tour services less than 2 weeks
prior to their arrival.

Step 1:

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MARKETING PLAN- HA | ROLLS ROYCE CULLINAN
Step 3: Customers selections will be shown in this summarized list of pre-verified receipt including city
tour and related options if chosen

Step 4: Customers will make payment and finish booking.

Step 5:

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MARKETING PLAN- HA | ROLLS ROYCE CULLINAN
Promotion:
• Our pick-up and drop-off airport service in cooperation with Park Hyatt hotel will be promoted on
Zagame website in Rolls Royce membership service category. This service is also on Park
Hyatt Hotel website (Home page and when customer make a room booking) and advertised on
the hotel’s social network such as: Facebook, Instagram, Twitter, etc.

• We also conduct driving events once every three months at Park Hyatt Hotel to promote the
Cullinan as well as to create a win - win relationship with Park Hyatt. Clients who join these
events will receive a paperweight designed as Rolls Royce symbol with a message “ROLLS
ROYCE X PARK HYATT” at as a gift of gratitude.

(illustrated picture of the paper weight, René Lalique, n.d.)

Physical Evidence:

Zagame made an agreement to put the Rolls Royce car in front of Park Hyatt
hotel, allowing people visiting the hotel to be able to see the Rolls Royce car in
front of the hotel, which would make Rolls Royce cars more popular and demand
by client.

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MARKETING PLAN- HA | ROLLS ROYCE CULLINAN
Consumer Engagement

The idea How does it support the marketing objectives?

Partnership with Park Hyatt hotel - Park Hyatt is the most luxury hotel in
Melbourne so when carrying out marketing
project with this hotel, the Rolls Royce
Cullinan can be approached more
frequently by our target market.

Offering membership card for Rolls Royce - Creating benefits for our current customers
owners at Zagame. as well as attracting new customers
against other competitors.
- Because Park Hyatt hotel also get profits
from this card, so we can make a good
partnership with them.

Multi-tasking function of the membership - Our target market is a kind of person who
card is very busy and time is really valuable to
them. With our card, they will minimize
time-consuming procedures. Hence, this
feature of the card will increase customer
engagement.

Offering Melbourne trips - This project allow customers to experience


all-terrain feature of Rolls Royce Cullinan.
Therefore, it may change their perception
of an old-man car about Rolls Royce.

Driving events - Besides bringing driving experience on


their own for customers, the paper weight
plays an important role in reminding them
about our Cullinan even Rolls Royce and
our partner – Park Hyatt. This is because
the majority of our market are usually
involved with paperwork. Thus, handing
out paper weight could increase the
chance of our customers utilizing it in their
daily business. This can remind them of
our Cullinan and instil the thought of
ownership into their mind.

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MARKETING PLAN- HA | ROLLS ROYCE CULLINAN
REFERENCE:
Atlanta, 2015, Mar 16, Linde North America; ‘Linde technology can breathe life into aluminum for lighter
cars, trucks and SUVs.’ Biotech Business Week, viewed 12 May 2019, ProQuest Ebook database,
<https://search-proquest-com.ezproxy.lib.rmit.edu.au/docview/1662022992?accountid=13552>.

Automotive News, 2016, ‘BENTLEY BENTAYGA 2017’, Automotive News, vol. 90, no. 6739, pp. 34,
viewed 12 May 2019, ProQuest Ebook Central database, < https://search-proquest-
com.ezproxy.lib.rmit.edu.au/docview/1813977778?accountid=13552>.

Bromsgrove, 2011, May 05, ‘AUSTRALIA: Holiday weekend slows april sales.’ Just-Auto Global News,
viewed 12 May 2019, ProQuest Ebook Central database, <https://search-proquest-
com.ezproxy.lib.rmit.edu.au/docview/864788479?accountid=13552>.

Duffer, R, 2018, Nov 21, ‘5 things we learned driving the $600,000 rolls-royce cullinan SUV.’ TCA
Regional News, viewed 12 May 2019, ProQuest Ebook Central database, <https://search-proquest-
com.ezproxy.lib.rmit.edu.au/docview/2136239257?accountid=13552>.

Evans, S, 2018, Apr 10, ‘House price falls worry prestige car dealers’, The Australian Financial Review,
viewed 12 May 2019, ProQuest Ebook Central database, <https://search-proquest-
com.ezproxy.lib.rmit.edu.au/docview/2022971213?accountid=13552>.

Leggett, D 2017, Jan 09, ‘Australia car sales hit record in 2016’, Just-Auto Global News, viewed 12 May
2019, ProQuest Ebook Central database, <https://search-proquest-
com.ezproxy.lib.rmit.edu.au/docview/1856475554?accountid=13552 >.

Passport, 2019, ‘Luxury Cars in Australia’, Country Report, viewed 12 May 2019, Passport database,
<http://www.portal.euromonitor.com.ezproxy.lib.rmit.edu.au/portal/Analysis/Tab>.

René Lalique, n.d, ‘FROSTED AND POLISHED GLASS 'SPIRIT OF ECSTASY' CAR
MASCOT FOR ROLLS ROYCE’,Artnet, viewed 12 May 2019,
<http://www.artnet.com/artists/ren%C3%A9-lalique/frosted-and-polished-glass-spirit-of-ecstasy-car-
jpS5xNLX_fYPXNcs-BdHcQ2>.

Roberts, G, 2013, Sep 04, ‘AUSTRALIA: FBT change slows car sales.’ Just-Auto Global News, viewed
12 May 2019, ProQuest Ebook Central database, <https://search-proquest-
com.ezproxy.lib.rmit.edu.au/docview/1429663946?accountid=13552>.

Thomson, J 2018, Commercial Vehicle Wholesaling in Australia, Industry Report F3502, viewed 12
May 2019, IBISWorld database,
<http://clients1.ibisworld.com.au.ezproxy.lib.rmit.edu.au/reports/au/industry/default.aspx?entid=360 >.

Towler, A, Apr 2018, ‘Lamborghini Urus’, Auto Express, 26-28, viewed 12 May 2019, ProQuest Ebook
Central database, https://search-proquest-
com.ezproxy.lib.rmit.edu.au/docview/2137104952?accountid=13552&rfr_id=info%3Axri%2Fsid%3Apri
mo>.

Zagame, n.d, ‘About Us’, Zagame, viewed 12 May 2019, <https://www.zag.com.au/about>.

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