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This assignment is on Marketing Strategy. This paper consists of the marketing strategy of
Rolls-Royce Ghost, which is the latest model of Rolls-Royce motor car, one of the most
famous motor car brands in the world. This paper consists of product profile, market offering
by this product, environment affecting this product, marketing mix, segmentation, targeting,
and differentiation and positioning, SWOT analysis, Product classification, branding, pricing
strategy and sales promotion of this product. This paper also offers the answer of some
question, for what the customers will buy this product, how they capture value from the
customers and so on.
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Product Profile
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Market Offerings by Roll-Royce Ghost :
Market offerings are some combination of product, service, information, or experiences offer dot
satisfy a need or want. The Market offerings of Rolls-Royce Ghost are stated below…
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Environments affecting the marketing of
Rolls-Royce Ghost
All of the components of micro and macro environment affects more or less to the marketing strategy
of any product. For that, all of the forces of macro and micro environment do not have the same affect
on Rolls-Royce Ghost’s marketing strategy.
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Product development by Rolls-Royce Ghost:
Rolls-Royce Ghost is a new model car manufactured by Rolls-Royce motors. They design this car for
luxurious drive and as cheaper re-model of Rolls-Royce Phantom. The Customers of Rolls-Royce are
mainly fixed. Rolls-Royce always tries to develop and maintain customer equity so that the market of
Rolls-Royce is almost same all the time. The customer of the Rolls-Royce is rich and famous, and
most of the times they replace their Rolls-Royce by the latest model, so Rolls-Royce Ghost is a new
product in an existing market. The Rolls-Royce motors use develop this ghost model for maintaining
the company growth.
Product
Existing Market Market Penetration Development
Rolls-Royce Ghost is a product development developing strategy for the Rolls-Royce Motors in order
to capture growth.
Market Segmentation:
Market segmentation is to divide the market into distinct groups of buyers who have different need,
characteristics, or behavior and who might require separate products or marketing program. A market
segment is a group of customers who respond in a similar way to a given set of marketing efforts.
Market segmentations are very important to find out which segment should be served in order to grab
best opportunities. Rolls-Royce motor car company has also make market segmentation for serving or
selling the Rolls-Royce Ghost.
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The segmentation variables for Rolls-Royce are listed below:
Geographic segmentation:
Country: Rolls-Royce has targets just developed and first world countries for
Marketing of Ghost
City: Rolls-Royce mainly markets their cars in cities where rich people lives.
Demographic Segmentation:
Income: The Rolls-Royce targets the segment of people who have a very high
income and can afford a costly car like Ghost. Rolls Royce, as was recently
revealed in the Los Angeles Times, only targets potential customers who have
liquid assets in excess of $30 million.
Occupation: Rolls-Royce motors also check out the customer’s occupation. They
target the segments that have a reputation and fame with his occupation.
Psychographic Segmentation:
Social Class: Rolls-Royce Ghost targets the upper uppers social class people to
serve because peoples from this class would buy it to differentiate themselves i.e.
Masons.
Life style: Rolls-Royce targets the persons whose lifestyle is very showy and rich.
Behavioral Segmentation:
Benefits: Rolls-Royce Ghost targets the segment of people who would like to have
luxurious and speedy drive with simplicity of Ghost.
User Status: Rolls-Royce motor car company’s main targeted segment is the
regular users because most of the times users replace their old model with a new
model Rolls-Royce. It only targets potential customers who have liquid assets in
excess of $30 million.
Loyalty Status: Loyal customers are most targeted segment of Rolls-Royce.
Attitude Toward Product: Rolls-Royce always target the segment of buyers who
have a positive and enthusiastic attitude toward Rolls-Royce. For checking that,
the officials of RR will go through buyer’s bio-data, past maintenance of his cars,
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his driving for a month and many other formalities. RR even fine their customers
if they dive the vehicle rashly and resulting in an accident.
Most carmakers produce automobiles for a wide variety of customers and adjust their marketing
strategies accordingly. Rolls Royce, as was recently revealed in the Los Angeles Times, only targets
potential customers who have liquid assets in excess of $30 million. That segment wouldn't be
considered a mass market, and so the way Rolls Royce sells a car is markedly different from other
cars.
Rolls Royce, a long-standing symbol of position and nobility, Rolls-Royce has been an opulent
favorite of the rich and famous ever since it was first manufactured via hand-assembly in England in
1904. Rolls-Royce stands as a lavish status symbol globally. Buy a Rolls-Royce and enjoy the best in
car luxury and refinement.
So to Say, Rolls-Royce targets the extreme rich people who possess a royal, lavish and famous status
and would like to have a luxurious, swift, calm and speedy drive and those who want a personalized
car to feel the taste of uniqueness.
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Totally handmade and hand finished.
the car’s cabin gives off a luxurious aura that comes from the finest woods, wools and leathers
assembled with the pride of English craftsmanship.
It’s become able to create a psychological expression of “Higher the price, better the car”. So
it enjoys a competitive advantage of higher price than all of its competitive models like, 2010
Ferrari California, 2009 Lamborghini Gallardo LP560-4, 2010 Mercedes-Benz S65 AMG,
2011 Jaguar XJ / XJL Super Sport, 2010 BMW 7-series.
It’s always not possible to promote all the differences to differentiate the product. Some differences
should be promoted indirectly. Here the Rolls-Royce Ghost promotes the following differentiations
for creating customer value.
Rolls-Royce never promotes the very high price of its products though it charges high price.
Although the Rolls-Royce is symbol of royal status, lavish status and famous and rich persons from
the very first production, they never promote this for any product.
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Positioning strategy by Rolls-Royce Ghost:
How the rolls-Royce Ghost position itself in the world motor car market? Its extremely true that the
Ghost offers a very differentiated competitive advantages than the other competitor. And at the same
time it also costs a higher price. So from the customer’s point of view, the Rolls-Royce is getting
more prices for more satisfaction. But there are also some people who think the Rolls-Royce charges
more dollars by offering the same thing as the competitors offer. They are getting this more bucks as
the symbol of royal status, lavish status and famous and rich persons.
Price
More The Less
Same
More More More More
for for same for less
more
Benefits
The same The The
Same for same for same
more same for less
Less The less The less Less for
for for same much
more less
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of luxurious, quiet, swift and speedy drive. Through this customer satisfaction it makes its own
profit.
The Rolls-Royce creates its brand name by establishing the essence of royal and lavish status for al of
its brands. Ghost gets the same treatment. The brand name of Ghost is created through the slogans of
simple luxurious driving, dynamic drive, spirit of ecstasy, surge of power moreover the simplest and
purest form of Rolls-Royce cars.
Branding is also essential for creating customer loyalty and capturing customers. but, The LA
Times report says that Rolls Royce doesn't engage in co-branding endeavors. . Customers are invited
to exclusive dinners where contacts are made and deals struck. Buyers receive surprises in the mail,
like a personalized letter from the CEO or a coffee-table book about the brand.
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Pricing of Rolls-Royce Ghost:
Pricing of Rolls-Royce Ghost is made under the concept of value based pricing. Although
personalized car supply, handmade and hand finished car costs more than the other cars which are
made by machines. But the pricing of Ghost’s depend mainly on the its brand value to the customers
and its royal and lavish status. It only targets those customers who can afford to buy such a car. The
price tag makes the Ghost more exclusive. But it has a lower price than its previous model ’Phantom’.
Because it is the simplest version of phantom. The pricing concept of Rolls-Royce is “Higher the
price, better the car”. Segmented or targeted buyers of Rolls-Royce believe this. So, Rolls-Royce is
not price sensitive. The target Customer may not consider the price.
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Conclusion
This assignment consists of the marketing strategy of the world’s one of the most famous
luxury car brand ‘Rolls-Royce Ghost”. The marketing strategy they use is fully customer
based. They have some unique characteristics. But they are surviving with these
characteristics and making profit in this competitive market by understanding the marketplace
and by serving the customers. Rolls-Royce Ghost is a costly car, costs more than other
competitor cars do but it captures this value through creating total customer satisfaction.
Sources of information::
http://buyersguide.caranddriver.com
http://www.economist.com/business-finance/displaystory.cfm?story_id=13611109
http://en.wikipedia.org/wiki/Rolls-Royce_Ghost
http://online.wsj.com
http://www.automoblog.net
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http://www.roadandtrack.com/tests/drives/2011-rolls-royce-ghost
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