Rolls Royce

Marketing Project
Instructor: Coelhoso J.Pedro

Trifan Dumitru,

Salih Ulev.

SMK, 2010.
 Agenda :
1)Introduction
2)Presentation
3)Today‘s offer
4)Strategy
5)Princing strategy
6)Implementing in Russia strategy
7)Implementing in China strategy
8)Communications strategy
9)Target market
10)Distribution
11)Competitors
12)Conclusions
13)Disscusions
14)Personal opinion
15)Refferences

Introduction :
2
No business in today‘s world operates in a complete unaffected by market forces sphere.By their nature
business activities are competitive. Within a dynamic, rapidly changing business environment producers
are constantly entering and leaving the market. At the same time, changing customer preferences provide
signals for business to develop new strategies with different products and services. Some businesses will
succeed bu responding to and meeting market needs, while others may not perform quite so well.

RR Motor Cars1

Rolls-Royce Motor Cars is a company that today meets customer demands for all models from production
at the company's manufacturing plant in Goodwood, West Sussex and England. The company is
relaunched in January 2003. At the time, both Phantom and Ghost are one of the most exclusive super
luxury cars in the world. The stabilisation of the production process for RR Motor Cars new model series,
Ghost - and this is reflected in the smooth delivery of cars to dealers and customers around the world.
Company has risen to the challenge of meeting unprecedented customer demands, whilst at the same time
ensuring the very highest standard of quality which is the hallmark of all Rolls-Royce Motor Cars.
Company is young, even that she show successes the risk persist also with new opportunities. In order to
realize a better business position, first of all is need to research in the past of the company and in the
present time position. That include the offer, princing strategy, communication strategy, extension and
adaptation strategy in new countries strategy, study of target market and not the last one, study of the
competitors. For a small company is really important to see all the content of the picture of business that
they do and to try to find ways to have a full benefit of the present time and to be ready for the future.

Rolls Royce2

History change the markets conditions in civil aerospace,defence aerospace, marine and energy. This has
a knock-on effect on their suppliers – the aeroplane, helicopter, ship, submarine manufactures and in turn
on their suppliers – the engine manufactures. Rolls Royce is one of only three engine manufactures in the
world that has a proven capability to design, develop and produce large gas turbine engines. In recent
years the company has faced many challenges that have affected its position in the industry. By providing
an analysis of the communication strategy, princing strategy, target market, competitive environment
affecting RR, company achieve and after work towards its vision of becoming the world‘s first choice for
power solutions for the new century. For know and understand better this information, company also do
research in the past experience, is notable that the past experience of RR is big. By using this information
company try to adapt better to new countries with new demands from customers. Rolls-Royce, a world-
leading provider of power systems and services for use on land, at sea and in the air, has established a
strong position in global markets - civil aerospace, defence aerospace, marine and energy.

Presentation :
RR Motor Cars

„Design Without compromise“. Rolls-Royce Motor Cars is not well-known in the world, but is a growing
brand. It is the embodiment of the promise to the customers. In today’s competitive environment, it is
not enough to build great products: customers are looking to us to deliver the best in service solutions.
Company try to build enduring relationships with customers, partners and other stakeholders.

RR Motor Cars SWOT Analysis

1
Source : http://www.rolls-roycemotorcars.com/#/the_company/latest_news/successful-second-quarter/
2
Source :http://www.rolls-royce.com/press/press_releases/
3
STRENGTHS OPPORTUNITIES

 Increase turnover and trading profits  New Products

 Strong Balance Sheet  Market shift to globalisation

 Automobile Manufacturer  Innovation & Alliances

 Brand Awareness  Customers demand change to more comfortable

and relevantly cheap cars
 Human resources
 New Technologies in Automobiles
 Capabilities to turn resources into

advantages

WEAKNESSES THREATS

 Perception of High Prices  New & existing competition

 Customer disinterest  Volatility in Price of Fuel

 Environmental issues: Pollutions  New legislations

 Buyer sophistication and knowledge  Consequences of the oil crisis

 Substitute products or technologies  Economic recession

 Market shift to globalisation

 Takeover bids

 Far-East Automobile companies expansion

 Extremely high competition for customers and

resources

4
Rolls Royce3

„To be Trusted to Deliver Excellence“ is Company‘s central organising thought. Rolls-Royce is one of
the most well-known brands in the world. Today, this brand means more than engineering excellence. It is
a standard of quality across all activities. Rolls Royce guides our actions and behaviours and the way
presenting to the world as a leading-edge, international power-systems business. As a global company,
active in 50 countries with governments, partners, customers and suppliers, having a strong, consistent
brand is a great asset. „Rolls-Royce is an engine manufacturing company, serving global civil aerospace,
defense aerospace, marine and energy industries. The company operates in the UK. It is headquartered in
London, the UK. The company recorded revenues of £10,414 million during the financial year ended
December 2009, an increase of 14.7% over FY2008. The net profit was £2,217 million ($3,471.7 million)
in FY2009, as compared to the net loss of £1,342 million in FY2008“4.

Rolls Royce SWOT Analysis

STRENGTHS OPPORTUNITIES

 Increase turnover and trading profits  New Products

 Strong Balance Sheet  Market shift to globalisation

 Engeneering Manufacturer  Innovation & Alliances

 Brand Awareness  New Technologies

 Human resources

 Capabilities to turn resources into

advantages

WEAKNESSES THREATS

 Perception of High Prices  New & existing competition

 Customer disinterest  Volatility in Price of Fuel

 Environmental issues: Pollutions and  New legislations

Economy
 Consequences of the oil crisis
 Buyer sophistication and knowledge
 Economic recession
 Substitute products or technologies
 Market shift to globalisation

 Takeover bids

 High competition for customers and

resources

3
Sources : http://www.rolls-royce.com/about/brand/
http://www.researchandmarkets.com/reportinfo.asp?report_id=575079
4
Source : http://www.datamonitor.com/store/Product/rolls_royce_group_plc?productid=C4DFE20F-9E15-4C09-94AD-
BAE1A95E1288
5
History5

RR is a result of a great partnership of engineers Charles Rolls and Henry Royce. Everything started in a
meeting over lunch at the Midland Hotel in Manchester on May 4, 1904, arranged by a guy named Henry
Edmunds. Due to his effort, he made the two pioneers of the car manufacturing company to come up with
an agreement that Rolls would exclusively sell as many cars as Royce could produce. Best-known body
styles included the Barker Tourer, Hooper Landaulet, the London-Edinburgh type and Barker enclosed
cabriolet. The first cars were built in Royce's Cooke Street factory in Manchester but following the
success of the Silver Ghost, the company moved to a custom-built factory, designed by Royce, in
Nightingale Road, Derby. As the twenties roared in RR resumed car production and introduced several
key models. In 1921 the company opened its first factory in U.S.. through the decade both the car and
aero divisions flourished, with RR‘s engine winning the prestigious Schneider Trophy. The Second World
War meant focus shifted to building aero engines, both at the Derby Works and a new factory,
commissioned by the Air Ministry, and built at Crewe in Cheshire, which would eventually become the
home of RR limited from 1946. In 1940 RR began lon association with the Royal Family, replacing
Daimler as the preferred supplier of motors cars to the monarchy. The 1970s proved to be a challenging
decade for RR. Despite going into receivership and relaunching as two separate companies,RR Limited
for the aero divisiopn which became RR plc in 1985, and RR motors Limited for the Motor Car division,
many notable models were introduced. After British defence company, vickers plc bought RR Motors
limited and continued to produce RR and bentley cars. By 1985 the company name changed to RR motor
Cars limited and was floated on the stock exchange. The 1990s saw the end of production at Crewe and
BMW Group purchased the rights to produce RR motor cars. The Rolls-Royce Motor Cars headquarters
and assembly plant lies in the Sussex Downs at Goodwood. Shaped by the vision of world-renowned
architect, Sir Nicholas Grimshaw, the facility inspires everyone who works there and sits sympathetically
within the natural beauty of its setting. Phantom, and Phantom Extended Wheelbase, set new benchmarks
for the luxury car market and continue to set the pace. The launch of Ghost marks the next stage in the
evolution of the marque. RR as the second division of the company in present is fast growing in business
spheres like Civil and Defence Aerospace, Marine, Energy and Nuclear. "Now RR reflects timeless
values of quality, distinction and authority, combining the best of the past with the best modern design,
engineering and technology to re-interpret the role of company in the 21st century."

Today‘s offer :
RR Motor Cars offers two main models of luxury cars produced at Goodwood, the Ghost and Phantom.
Ghost model is single, but if you buy a Phantom, you will have to chose between: Phantom Extended
Wheelbase, Phantom Drophead Coupé or Phantom Coupé.

Rolls Royce offers a wide range of products in five sectors. Civil Aerospace products : Large aircraft
engines; Small aircraft engines; Helicopter engines. Defence aerospace : Combat jets; Helicopters;
Transporters; Trainers; Tactical aircraft; Unmanned Aerial Vehicles . Marine : Automation & Control;
Bearings & Seals; Deck machinery; Diesels, gas turbines & gas engines; Electrical power systems.
Energy : Gas engines; Gas turbine engines; Gas compression; Diesel engines; Fuel cells; Automation &
Control Systems; Distribution generation Systems. Nuclear : instrumentation & controls; Components &
systems manufacture and Special purpose machinery and tooling.

Services

RR Motor Cars offers a full diagnostics and service of the cars by technicians trained in Goodwood.
Also RR Motor Cars offer cars parts and accesories that will reassure the performances of the car.

5
Sources : http://www.rolls-royce.com/about/heritage/timeline/
http://www.rolls-roycemotorcars.com/#/the_company/history/the_beginning/
6
Rolls Royce give you to chose if between TotalCare, CorporateCare, MissionCare and Mission Ready
Management Solutions, each involves the proper size range applies in particular in the field. This type of
service will ensure that any installation will be in perfect condition for use.

Strategy :
RR Motor Cars strategy6 :

Main principles :

- Simplicity :Everything is designed and crafted to be so invitingly approachable, so simple, that it

encourages you to regard RR cars as perfect and appropriate for any occasion.
- Natural, not styled : Proportions are all present and correct, the ideal 2:1ratioof the height of the
wheeles to the height of the body,the long wheelbase and bonnet, the short overhang at the front and
the long overhang at the rear.
- Balance of refinement and dynamic : Cars are more dynamic and less tiring for the driver and also
a comfort for the passengers even when travelling flat out uneven road surfaces.
- Graciousness : If you lift your foot from the accelerator quickly and press the brake pedal it will
apply extra force, enabling you to bring the car to a sudden and safe standstill.

Rolls-Royce Motor Cars strive for perfection in everything they do. Products are hand built at
headquarters and manufacturing plant at Goodwood in England where cutting edge technology and
traditional craftsmanship skills come together. Maintaining close links with Goodwood, company
Dealerships are embassies of company around the world providing the level of service you would expect
from Rolls-Royce Motor Cars.

Rolls Royce strategy7 :

For future:

- Address 4 global markets;

- Invest in tchnology, capability and infrastructure;
- Develop a competitive portofolio of products and services;
- Grow market share and installed product base;
- Capture substantial aftermarket opportunities.

Today RR values :

- Reliability –customers place their trust in RR. Company committed to responding to their needs
and the needs of those we work with.
- Integrity – at the heart of the way we operate and behave.
- Innovation – RR strive to be open minded and flexible in work. A forward-thinking culture creates a
well-managed and contemporary organisation that is always seeking to improve.

As the emphasis shifts towards transparency and high standards of governance and ethics, the integrity of
RR brand demonstrates company commitment to providing clean, affordable power to drive economic
and social development in a responsible way.
6
Source : http://www.rolls-roycemotorcars.com/#/the_company/latest_news/
7
Sources : http://www.rolls-royce.com/reports/2005/html/strategy.html
http://www.rolls-royce.com/reports/2005/html/focus.html
7
Princing strategy :
RR Motor Cars :

Company‘s cars are among the most expensive cars in the marketplace when compered to other provider.
The thinking goes: If your peers see that you can afford a high priced option, they’ll assume you are more
successful. Driving a Rolls comes with a certain amount of bragging rights. The market demand is one of
luxury and exclusivity. Rolls Royce prefer to make less cars when compered to competitors. It sells one
customer instead of a lot of customer.Because that is less expensive to deliver and sell. Rolls-Royce
produce less than 800 of them every year, and prices start at a third of a million dollars, with the sky
obligingly serving as the limit (They recently sold a stretched Phantom Extended Wheelbase limousine to
a customer in China for $2.2 million.). In addition, users can view photos and videos of company
vehicles in the Media Library section of the website.

Rolls Royce :
Rolls Royce‘s success in civil aerospace, defence aerospace, marine and energy is based on wide product
portfolio, access to global markets and the strength of gas turbine technology. Rolls Royce is one of the
largest company in these areas. One of the most important thing for Rolls Royce is quantity .So that
costumers prefer to Rolls Royce, they don‘t think price. Rolls Royce determine the price in the
marketplace. That is why Rolls Royce is a high-price provider in the marketplace. It would be nice to say
"Rolls-Royce's pricing strategy is materials + value added + profit" but in the real world of industrial
procurement it rarely works that way. Users can find informations of company products in the official
website and if more information is required, company have e-mail, telephone numbers or costumer can
find local representants if the costumer is in a city zone where company have a subsidiary.
Implementing in Russia strategy :
Rolls-Royce Motor Cars8 :

Company already have two bussines places in Russia – Moscow and St. Petersburg. RR Motor Cars try to
keep the four main principles of the general strategy but, in accordance with local economic situation.
The russian economy don’t give the possibility to all or majority of population to have a RR cars, of
course, the cars of RR are are considered to be luxury cars, but company have to adapt to new market.
Now Russia don't produce luxury sedans. The traditional producer of Russian luxury sedans, Zil, largely
dropped out of the automobile business when the Cold War ended in 1991. These conditions gives the
possibility to RR Motor Cars to enter on russian auto market.

Price

The company use high price - premium strategy in Russia. RR Motor Cars are uniqueness about cars.
Because of this approach RR gets substantial competitive advantage. In Russia driving Rolls Royse
represent prestige. Russia don't produce luxury sedans now. This provide an advantage for company.
The consumers demand luxury cars. RR motor Cars is an important company for them.

Place

8
Sources : http://www.rolls-roycemotorcars-dealer.com/moscow

http://www.rolls-royce.com

8
Company already have two bussines places in Russia – Moscow and St. Petersburg. costumer or company
in the offer, can chose in what way the car will enter in the possesion of the buyer : company can deliver
the car, the buyer wil pick up the car or another company, or a mix of the ways. But RR always prefer to
use direct channel in Russia. It buys cars to clients without using wholesaler. The Company commitment
to the Russian market is now well developed like Rolls-Royce Motor Cars in UK.

Product

RR Motor Cars can play with variables like : price, car components, dimensions of services quality,
delivery, advertising, responses to costumer demands and others details. The company can offer to the
costumer to chose items of car (components) and transactional items like delivery, services, warranty
(also, this items can be changed by the company in the offer before the transaction). Many parts of the
cars can be replaced or removed. This is the case of speed transmission, suspension, compressor type,
catalitic converter, types of tyres, brakes, fuel system that can be replaced with other types. Accessories
like GPS, Oxygen Sensor, Cigarette Lighter, Clock can be removed that the cars to be more accesible to
the clients.

Promotion

The Company use personal selling and, demonstration and sampling effectively in Russia. It has unique
approaches. Dealerships communicate with their clients directly. They make anything that clients fell
special. They usually use Rolls Royce Motorcars` videos in the internet.

Distrubition

Costumer or company in the offer, can chose in what way the car will enter in the possesion of the buyer :
company can deliver the car, the buyer wil pick up the car or another company, or a mix of the ways.

People

The company has highly personal communication with its emloyee in Russia and they hire people for
local offices..

Process

They are doing the business with custemers in Russia. But manufacturing process is done in UK.

RR Motor Cars, products are defined as a luxury cars and are focused on this market in Russia. The
Company, only targets potential customers who have liquid assets in excess of $30 million. It does not
have suplliers in this country. It has two dealership in Russia.

Rolls Royce :

RR company already enter in Russian market and have offices in Moscow, Vladivostok and St
Petersburg. Company, supplies engines for Russian airlines, helicopters and business jets; industrial gas
turbine and piston engines for gas pumping and power generation. Rolls-Royce engines also power
aircraft of Transaero, Yakutia and Polet. A TotalCare agreement has been signed with Polet and
Transaero. There are also about 20 Rolls-Royce powered business jets flying in Russia today. In Russia,
RR company try to keep the main directions of the general strategy and company values but, in
accordance with competitors, economic situation and market demands. In order to adapt better to this
country, RR will use Marketing Mix :

9
Place - company already have offices in the main cities of Russia : Moscow, Vladivostok and St
Petersburg. This places are the better choice, because they are in the potential centers of company's target
market.

Price - company use penetration strategy of price, because they need to gain market position in these new
regions. RR determine the price in the marketplace, following the general princing strategy: materials +
value added + profit" but in this case they have to put a as low is possible, price in the begining.

Product - company try to find customers with demands that are possible to be satisfied, by company
possibilities, they search potential target market customers. RR have o big offer that give the possibility
for the company to be adapted to Russia with the same general strategy .Product options are strictly
depended on customers and the price and that is the good way in the adaptation process of this item.

Promotion – In this country, for the next 5 years is better to apply loyalty programs to the customers and
after to pass to premiums type of promotion. Communication strategy have to include promotion by TV
and Speciallized Newspapers, but also need to be emphasized that the offer can be find in company's
websites.

Distribution - company operate own distribution, in some cases with local distribution companies. To
meet in the best way customer's demands and possibilities is better that customer to chose between this
two options.

People - the work factor is not mobile, that's way company will have to hire local people, but is better for
some jobs, that the company to practice instructions courses with new employs.

Process - work place and work time is very depending because some contracts are related with a local
work, but others can be done in company's manufacturer offices and the time and conditions are different.
In some cases the work place can be chosen by the customer.

RR have a distinguished target market and segment of costumers, they work with big companies and
government. Like a prezent contract in Russia , announcing that it would supply eight industrial gas
turbines to a subsidiary of Gazprom, for the 1,200 kilometre Nord Stream gas pipeline which is being
built to add capacity between Russia and Europe. Also, they change the suppliers of raw materials and
cooperate with local services and delivery providers, in result now company have progres and succes in
this region, and they keep searching better's ways to be more closer to costumers from Russia.

Implementing in China strategy9 :

RR Motor Cars10 :

The Rolls-Royce Motor Cars Ningbo showrooms in Greater China are located at Beijing, Chengdu,
Guangzhou, Hangzhou, Hong Kong, Shanghai and Shenzhen. In China's market for luxury autos are
complex regulatory challenges and different fashions but there is also a rapidly growing appetite for
luxury goods, including high-end autos. Substantial growth was seen in all regions, with a particularly
strong performance in the APAC region, especially China. And while sales of luxury cars still lag behind
those in the West, the complex China market is of growing importance to the brands at the upper reaches
of the industry.

Price

9
Source : http://www.rolls-royce.com/china/en/default.htm
10
Source : https://www.press.rolls-roycemotorcars.com/pressclub/p/rr/pressDetail.html?
outputChannelId=4&id=T0079747EN&left_menu_item=node__5450
10
RR offer customers high price Premium cars. Rolls-Royce customers are a unique breed. RR need to offer
them the very latest in technology, design, materials and performance while at the same time remaining
ever-conscious.

Product

Rolls-Royce name has been symbolic of the very best, the embodiment of perfection - in craftsmanship,
style and refinement. It will be to ensure the continuation of this tradition by maintaining Rolls-Royce’s
pinnacle market positioning within the super-luxury segment into the future.

This union of tradition and futuristic innovation is best expressed in, the Rolls-Royce cars. Since it was
first announced that a slightly smaller, more approachable Rolls-Royce was to be developed, we have
worked hard to ensure that the car delivers complete Rolls-Royce authenticity. The cars embodies
impeccable poise, a magnificent drive and has been created with exceptional skill and attention to detail
by RR designers, developers and master craftsmen and women. Add to these attributes the unmistakable
modernity of the cars, which embodies a full array of advanced technology.
Place

The Rolls-Royce Motor Cars Ningbo showrooms in Greater China are located at Beijing, Chengdu,
Guangzhou, Hangzhou, Hong Kong, Shanghai and Shenzhen.

The company perfectly located in vibrant cities and offer ideal settings for our Chinese customers to
become familiar with RR cars. The Company see good potential for dealership expansion in China and
the rest of Asia Pacific.

Promotion

There is some factors in China that dictate company sales strategy. In China is an automotive hierarchy
unlike any in Europe and North America. A different type of car for midlevel managers and a different
one is for executives, this is like a part of culture in China. This hierarchy comes from a market still
developing the middle and upper classes. RR cars become symbols of achieving "membership" in those
demographics

Distrubution

It takes three to six months in China to deliver a Rolls-Royce and this has become a status symbol and
selling point. The customers in China like to brag about how long it will take to build their cars.
Adaptation to Chinese market is growing, for this, company use items like business particularities
(delivery, price, warranty, financial conditions), cultural particularities (comunication, general
attributions of behavior, social values) and costumers demands (car details, business)

People

Rolls-Royce Shanghai was once again one of company’s top 10 performing dealerships last year, having
consistently featured in its top 10 since 2007. RR confidently expect this trend to accelerate, with China
establishing itself as a leading market for Rolls-Royce Motor Cars within the next few years.RR’s
confidence in this market is demonstrated by its dealer expansion programme. It now has more dealers in
China than in any other country except the USA. The dealers are perfectly located in vibrant cities and
offer ideal settings for our Chinese customers to become familiar with our cars. RR see good potential for
dealership expansion in China and the rest of Asia Pacific.
Process
11
RR doesn’t produce car in China. It produces the cars in UK. However, It has Ningbo showrooms in
Greater China are located at Beijing. When clients give an order to a car, it takes three to six months to
arrive them.

RR're not just targeting the high-end buyer, the segmentation increasing. Rolls-Royce, is also popularity
in China, surpassing Japan as its largest market in Asia and making up just over 10% of global sales in
200911.

Rolls Royce :

Company has been buiding a strong presence in Civil Aerospace, Marine and Energy in China for more
than 45 years12. This involvement includes recent milestones in the civil aerospace and energy markets
which, with marine and defence, are the company’s four global markets. In addition to providing
equipment and servies, Rolls-Royce works with Chinese partners in training and manufacturing. In order
to adapt better to China, RR company use Marketing Mix:

Place - currently RR has offices in Beijing, Shanghai, Dalian and Hong Kong, which are the places with
the biggest target market potential customers.

Price - in China, company is present for a long time and now they use premium princing strategy and in
this way keep brand power in the region.

Product - the strategy is similar with the general strategy and in another countries strategy, because
company is focused her offer and demands and possibilities of customers.

Promotion - as company already have experience in this part of the world, the loyalty programs are to
keep market position. Communication strategy, here is more based on internet, on local websites and
interest of the customer.

Distribution - is following the same general strategy with his own distribution and sometimes using local
companies help, and also according to customer.

People - RR growing the field of developing quality technical and managerial training programmes with
employes and a range of Chinese organisations and a number of central government ministries.

Process - the work process is similar to another countries and according to conditions from contracts
(time, place).

The company commitment to the market in China can best be illustrated by a number of joint ventures
and collaborative relationships, including two joint ventures - Hong Kong Aero Engine Services Limited
(HAESL), and Xian Rolls-Royce Aerocomponents (XRA). A number of other Chinese companies like
Sichuan ChengFa Aero Science and Technology Ltd are also important suppliers for rings, sheet metal
and fabrications. RR, has won a contract from PetroChina to provide gas turbine compressor systems for
a new natural gas pipeline which will further expand the Chinese gas supply network bringing gas from
Western China to Beijing. RR have a very wide range offer of ways running business, they adapt very
well in China including all the collaboration contracts with providers of materials, of specialists, of
services and so on. All the variables of contracts are particulary established, what means that is a

11
Source : https://www.press.rolls-roycemotorcars.com/pressclub/p/rr/pressDetail.html?
outputChannelId=4&id=T0079747EN&left_menu_item=node__5450
12
Source : http://www.rolls-royce.com/
12
confortable predisposition to business in this country, the offer is flexible and that is what the chinesse
costumers want and make the company succesful here.

Communications strategy :
RR Motor Cars13 :

RR Motor Cars employs a series of unique communicating approaches. Dealers are chosen based on their
common interests with customers. 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. Anything to make the customers feel special, in the hopes that they will
replace their Rolls Royce with another at the right time. And many do: in the US, nearly a third of
business comes from repeat customers. That's a customer loyalty rate that doesn't come easy, but it helps
when your direct competition is a good car. In addition, RR Motor Cars is helping aspirational consumers
imagine themselves in its line of luxury cars with a mobile application. RR Motor Cars is not looking to
directly drive sales, but hopes to create a deeper sense of engagement between consumers and the brand.
The relationship between an owner or prospective owner and a dealer is already a highly personal. The
dealers are in direct contact with their clients. Rolls-Royce cars owners and prospective owners are
understandably a unique and select group of people. Rolls Royce Motor Cars use the other ways to attract
potential costumers attention is by brochures, media publicity and web. But this ways are not so much.
This part is not most important. Direct communication is the most important. In 2006 Rolls-Royce
accelerated a groundbreaking effort to create an innovative communication program. . It was built on 10
"drivers" that boosted trust, morale, business knowledge, innovation, decision making, accountability,
engagement and solid two-way communication that permeated every strata of the workplace. Rolls-Royce
dubbed the program a "winning workplace".In less than two years of operating, Rolls-Royce's facility
showed impressive gains, including: a 16 percent increase in operating income, a 19 percent reduction in
labor hours in one product line, an error reduction rate of 400 percent in one area, Employee business and
customer knowledge went up 70 percent, Cross-functional knowledge jumped by 50 percent.

Rolls Royce14 :

Rolls Royce promotions are effected mainly through its websites. You can see almost every product.
Those products` features are described in website. RR website designed to the Rolls Royce look. The
website fearures diffferent photos, information based on the location, many feature a choice of several
language and Rolls Royce news and articles, and dealers contact information. The company offers sign up
to website. If you sign up, you get the news delivered to your inbox or mobile phone. If clients want to
buy RR product, They have to communicate with the dealers. The company has five branch. These are:
Bristol branch, Coventry branch, Derby branch, Hucknall branch and Indianapolis branch. The company
has regional offices in Asia, America, Australia, Europe, Middle East. But RR headquarter is in London,
England.

Target market :
RR Motor Cars15 :

13
Sources : http://findarticles.com/p/articles/mi_hb5797/is_200812/ai_n32311067/
http://www.autoblog.com/2007/02/20/the-rolls-royce-of-marketing-strategies/
14
Source : http://www.rolls-royce.com/about/heritage/branches/
15
Source : http://www.rolls-roycemotorcars.com/
13
Company has established a strong position in global markets and is investing in new capability to better
meet the increasing needs of its global business and growing customer base around the world. RR Motor
Cars, products are defined as a luxury cars and are focused on this market. Rolls Royce, 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 company sells a car is markedly different from how. Driving a Rolls,
comes with a certain amount of bragging rights. The market demand is one of luxury and exclusivity. The
reputation of Rolls-Royce Motor Cars is built on its exacting standards, a quality that’s embodied in its
luxury vehicles. But during tough times even this vehicle manufacturer has to pull out all the stops to
persuade its target market of ultra high net worth individuals to make such a big purchase. To help
customers justify the cost to themselves, focus is on bringing to life Rolls-Royce’s perfectionism and
attention to detail. It connected with customers’ emotions by providing them with tactile proof of the RR
Motor Cars’s outstanding quality, printing the letter on a piece of the finest-grade sandpaper, the same
type used to get the glass-like finish on the cars. By showcasing company’s uncompromising attitude to
production, the whole mail pack engaged buyers to give them that extra nudge they needed to make a
purchase. RR Motor Cars won’t reveal the detailed results of this international direct mail campaign, but
it will say that it has been very successful.

Rolls Royce16 :

The 5 big market sectors, with subsectors, that are the segments of business and offer, that help customers
and company to have strong and trustfull business relationships.

- Civil Aerospace:
1)Large engines 2)Small engines 3)Helicopters

The civil aerospace business powers over 30 types of commercial aircraft and has a strong position in all
sectors of the market: wide-body, narrow-body and corporate and regional aircraft. Over 13,000 engines
are currently in service with 650 airlines, freight operators and lessors and 4,000 corporate operators.
Despite a decline in air traffic, the market is beginning to recover, albeit slowly. 2010 traffic will see a
return to growth but from suppressed levels. We remain cautious but optimistic of seeing the historic
traffic growth level of approximately five per cent per annum achieved over a 20-year period.

- Defence Aerospace :
1) Combat jets 2)Helicopters 3)Transporters 4)Trainers 5) Tactical aircraft
6)Unmanned Aerial Vehicles

RR have a 36 per cent partner in EUROJET, the European engine consortium that produces the EJ200 -
the power behind the Eurofighter Typhoon. Together with MTU Aero Engines of Germany, Italy's Avio
and ITP of Spain, Rolls-Royce is engaged in design, development manufacturing and in-service support
work for the EJ200. Eurofighter Typhoon aircraft have entered service with the partner nations of the UK,
Germany, Italy and Spain, and the first export order has been secured with Austria. Company also is
involved in the Joint Strike Fighter (JSF) programme since its inception in 1996. RR provide all key short
take off and vertical landing (STOVL) components, drawing on our unique experience in the field of
vertical flight engine design, development and production of engines power aircraft in all of the major
military aviation market sectors, from military transport aircraft and helicopters, to trainers and combat
aircraft.

16
Source : http://www.rolls-royce.com/

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- Marine:

1)Offshore 2)Merchant 3)Naval 4)Fishing 5)Submarines

RR provide a range of capabilities and expertise for – merchant vessels, naval surface ships, submarines
and offshore vessels. Company primary focus is on power, propulsion and motion-control solutions,
serving over 2,000 customers and equipment installed on over 30,000 vessels globally. RR are committed
to the marine market and maintaining a world-leading position in the design, development, supply and
support of products and systems for commercial and naval customers worldwide. RR global support
network underpins all activities, ensuring support is at hand when costumer need it, anywhere in the
world.

- Energy:
1)Oil & Gas 2)Power Generation 3)Distributed Generation

In the energy, Rolls-Royce has supplied more than 15,000 units to customers in nearly 120 countries and
is investing in new products and capabilities for the oil and gas industry and for distributed electricity
generation. Energy demand comes in two categories. One is in oil and gas, which is driven both by the oil
and gas price and by the difficulty of finding new reserves. Company is driven by existing oil running out
and new oil being found in more difficult places, which require greater degrees of technology, this is what
Rolls-Royce Energy provides its customers with.

- Nuclear:
1)Civil nuclear 2)Submarine nuclear propulsion

For 50 years, Rolls-Royce has been helping Naval and commercial utility customers to maximise plant
operation and safely extend plant lifetimes. Rolls-Royce is focused on providing utility to customers with
integrated, long-term support services across the reactor lifecycle, covering safety, licensing and
environmental activities; component design, manufacture and supply; in-service support and plant life
extension; as well as nuclear instrumentation, control and safety systems. And with extensive nuclear
certified supply chain expertise, RR is able to meet the growing needs of customers in today's global
nuclear market.

After transaction Services:

In today's volatile environment, control on the cost of ownership and maximising operational capability is
becoming increasingly essential. Removing technical and financial uncertainty and the administrative
burden associated with engine aftercare can assist in addressing these issues. Rolls-Royce has a long
history of offering programmes which provide service support for our customers' engines. Over the last
five years we have taken these services to new levels in response to the change in customer demand. With
the introduction of our value-added service solutions like : TotalCare; CorporateCare; MissionCare and
Mission Ready Management Solutions, RR is able to support all customers with optimum cover,
recognising individual needs.

Distribution :
RR Motor Cars17:

17
Source : http://www.rolls-roycemotorcars.com/
15
In order to be closer to potential customer, company established very many regional offices as in :
Melbourne, Sydney, Brussel, Toronto, Vancouver, Beijing, Chengdu, Gangzhou, Hangzhou, Hong
Kongm, Ningbo Shanghai, Shenzhen, Paris, Nicosia, Radebeul / Dresden, Köln, Mumbai, New Delhi,
Jakarta, San Donato-Milanese, Roma, Tokyo, Yokohama-shi, Al Hamriya, Jeddah, Riyadh, Safat , Kuala
Lumpur, Mexico City, Monte Carlo, AC Utrecht, Doha, Bucuresti, Moscow, Singapore, Sandton,
Phoenix, Beverly Hills, La Jolla, Los Gatos, Seoul ,Málaga ,Newport , Beach, Pasadena, Rancho
Mirage, Greenwich, Fort Lauderdale, Longwood, Miami, Naples, Madrid , Abu Dhabi, Dubai, Kiev, Las
Vegas, Palmyra, New York, Raleigh, Dublin, Muscat, Glattbrugg / Zurich, Dallas, Houston, Birmingham,
Dunmow, Edinburgh, Knutsford, Sunningdale, London. All the cars are produced in England and after
delivered to buyers. As in the case of RR division every regional offices has its own website adapted, also
with telephone numbers, e-mail adress and adress of the office. Another services like delivery or
information services, in order to help business with the main company,is that everyone can plan details
after the main transaction on every regional website, this fact is very useful for business for the RR
Motor Cars company and customers.

Rolls Royce18:

Company have offices in five parts of the world, including : America, Asia, Australia, Europe, Middle
East & Africa. Particulary:

In America : Brazil, Rio de Janeiro, Reston, Indianapolis, Montreal.

In Asia : Beijing, Hong Kong, New Delhi, Jakarta, Seoul, Malaysia, Singapore, Bangkok and Hanoi.

In Australia : Sydney.

In Europe : Belgium, Prague, Paris, Berlin, Roma, Moscow, London.

In Middle East & Africa : Riyadh, Dubai.

Almost every regional offices has its own website in local language, also with telephone numbers, e-mail
adress and adress of the office. For optional services, every regional website can offer adresses of
companies with who RR cooperate to help custumers for the best relationship and business running way.

Competitors :
RR Motor Cars19:

Even that company produced luxury exclusive cars, exist other companies that have the same target
market and are the competitors. RR Motor Cars have a small competition that include companies like
Bentley, Jaguar Cars, Chrysler, Maybach, Daimler. The main competitor of company is Bentley,
especially cars like Azure, Continental and Arnage, also company have time-to-time competition with
some models of cars of others companies like Chrysler 300C, but these competitors are even not a
complete competitor of one model of RR Motor Cars : the price, the quality and other items are not the
same. Maybe there really is an economic slowdown if companies like Bugatti are going budget-minded.
Well, budget minded for the ultra-exclusive supercar maker means coming to the level of Rolls-Royce.
Bugatti, in cooperation with its sister brand Bentley, may be teaming up to create a sedan knock-out

18
Source : http://www.rolls-royce.com/
19
Source : http://hoovweb.hoovers.com/rolls-royce-motor-cars/--ID__134055--/freeuk-co-factsheet.xhtml
16
punch to Bentley’s direct competitor. The volume of luxury cars market is very small - less than 8
thousands cars per year. But the market has trend to increase. And competitors on this small but
expensive market are very strong and serious. That is why I offer you the possibility to see the current
models of Bentley and Rolls-Royce to make your own opinion about luxury cars.

Rolls Royce20:

In today world, the business competition is very important and, of course, there are competitors for the
company in following areas : Aerospace & Defense Parts Manufacturing ; Aerospace & Defense ;
Electronics ; Electrical Products ; Industrial Manufacturing and Machinery Manufacturing. Much as there
are just two big commercial plane makers -- Boeing and Airbus -- there are just three main commercial jet
engine makers. Rolls-Royce engines may not show up in the official sales pitches of its top American
rivals, General Electric and Pratt & Whitney. In aviation industry companies will likely find a way to
exploit Rolls' misfortunes as a reliability issue. Airlines buying the 787 have a choice between Rolls or
GE. On the other hand, the Rolls-Royce engine problems could merely end up being a minor bump on
take-off. Next to Pratt & Whitney and Rolls-Royce, GE Aviation Systems now rules the runway as the
world's largest producer of engines for commercial and military planes. The division of General Electric's
Technology Infrastructure segment makes large and small jet, turboprop, and turboshaft engines that
power aircraft from cargo, executive, and passenger jets to bombers and helicopters. Its GE Aviation's GE
Engine Services unit offers maintenance, service, and spare parts. Pratt & Whitney is a company of
aircraft engine manufacturers, is also a RR competitor. Another competitor is SAFRAN, company strives
to keep civilians and military personnel safe from mishaps in the air and on land. The company is
returning to its aerospace roots while building up its defense and security operations. It restructured its
operations to include three divisions: Aerospace manufactures aircraft/rocket/space engines, propulsion
systems for fixed wing, as well as rotorcraft; Defense develops and builds navigation systems, drones,
and optronics; and Security offers biometric identification and access control systems. SAFRAN's
segments serve both the civilian and military sectors, working alone or in partnership with other major
companies. For the company's strategy is important to uncovering opportunities, solid information about a
company’s competitors can be critical. Now, RR adapt to the competition, but competitors use
innovation, and this fact together with economic, social and technical factors determine the situation of
company as a result.

Conclusions :
In response to changes within of business environment both companies develop orientation from that of
engeneering to become more business and service focused. The organisations has had to become much
more proactive, dealing with new ideas to create more services and costumer focus. In the past, change
was rare and slow, the companies tended to follow that the organisations has to meet the needs of the new
way of operating. Organisational structures define importatnt relationship within the business, and create
a mechanism for meeting business objectives. At the same time, it has been important to create a new
business culture, within RR companies. A culture exists within the minds and hearts of the people of the
organisations and contributes to the way they make decisions and develop business strategies. As an
organisations changes from a product-focused organisations towards becoming a products and services-
orientated culture, this require more involvement of its people, with greater empowerment and rapid
decision taking. The corporate identity is the sum of the culture and its expresion in behaviour and
physical terms. RR companies have defined the identity that it needs to encourage, building on past
reputation and achievements for continuing succcess. As these changes take place, the organisations also
realigning its financial reporting framework and corporate governance. This will change how the whole
business shapes its purposes and priorities. For nearly 100 years, Rolls-Royce has been the icon of
20
Source : http://www.hoovers.com/company/Rolls-Royce_Group_plc/crxyci-1-1njea3.html
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engineering and design. The name has entered the language as the expression of perfection in a range of
endeavors far beyond the industries. For the Rolls Royce division business situation is very dynamic,
because of the competitors, but company is focused on his strategy and environment for selecting the
target market customers and run business. Also they striving to imply in big projects, that involve much
work and money, these efforts will have good results if they will always follow companies general
principles and values. General strategy of the company is also very important, to keep her and to adapt to
different regions is difficult, but this must be done. Using correct marketing items, company will
continuing gain more profit and customer trust. For the RR Motor Cars, situation is in economic progress,
company is focused on luxury car market and the cars models that they make have not so big competition.
The power of the brand means exclusivity and this fact is very important, because he influence the
business activity. The main principles, that company try to emphasize are, in the same time, the values of
the cars in customer's mind. Company striving to find always better an better solutions in car
manufactures, services and in relations with the customers to be more close and trustful to them. The
competitors are also very powerful and important, but if the organisation will be consistent in what they
do, the succes of implementation in different countries and in business, in general is just a question of
time. In general, both divisions do their best to meet customer demands in a best way. "Rolls-Royce
supremacy is the reward of superlative design and meticulous care in manufacture. Its secret lies in the
proved excellence of the Rolls-Royce productions in Durability, Trustworthiness, Economy, Speed,
Silence and Comfort. Many cars have attempted to specialize in one or other of these points, but the
Rolls-Royce is alone in that it embodies them all."21

Discussions :

The history is the main connection between the companies and the main source of brands powers in
business. Companies try to keep brand values whatever will be the price and place. In adaptation to new
countries, this is the thing that matters. Rolls Royce company have more experience and more
relationships in business life than RR Motor Cars, also the company offer is bigger, this facts mitigate the
way run business : customers already know about the brand, about values, principles, about the quality of
work, of products, about they relationship skills, and that make thing more easy. For RR Motor Cars is a
more difficult situation, because they have to build all this items, including relationships with customers,
especially the fidelity of customers, because, customer's trust don't come easy and is very important to
keep this. Company have not so much products and this is, on the one hand very good because of
exclusivity, but on the other hand, is not so good, because company's chances to demonstrate values are
small, and is hard to extend keeping the same feeling on customer's mind of exclusivity. RR Motor Cars
is a reborn brand and very young, but the management team try improve all the best for the future.
Regarding the strategies, the Rolls Royce division is more sure and more future-oriented than RR Motor
Cars, but as last one is more young, for her is more important now building of brand value and they try to
be as more possible focused on that, that's way they don't have a strong established strategy. Also have to
notice that RR Motor Cars company made almost all vehicles in UK, that is a really big obstacle in
extension direction. In communication strategy, RR Motor Cars treating individual all the customers in
meeting of all the demands, but the second company is like to be more selective with customers, they are
focused on big affairs, but in any case Rolls Royce also try to improve the best relationships with the
customers. In the distribution part, also is emphasized target market of RR company, they work in
regions with more profit possibilities according to his business, the another company have many offices,
but they are just selling offices, not production ones, and all the customers, everytime have to wait that
the cars to come from UK. Both companies offer a service after transactions, that is also very good and is
like an investment. If companies will keep the same way doing business orientation, they for sure will be
more successful and will gain more profit, and that is especially important for RR Motor Cars, growing
company.

Personal opinion:

21
Source : http://www.autointell.com/european_companies/rolls-royce-bmw/rolls-royce-phantom/rolls-royce-phantom-
01.htm (Rolls-Royce sales brochure, 1928)
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We think that both companies have a strong past, even for the RR Motor Cars, the way running business
is very good for both, the values are very important and the strategy, even that the young company don't
have a strong one. There are many competitors for each of the companies and if RR and RR Motor Cars
will keep and develop brands names, they will lose market positions, which are very important and hard
to gain in big countries like Russia and China, but regarding the future in a positive way, both companies,
by trying to improve the best, are on the right, successful way, of progress.

Refferences :

Main sources :

http://www.rolls-royce.com/

http://www.rolls-roycemotorcars.com/

Other sources :

http://company-profile.reportlinker.com/o0320508/Rolls-Royce-Group-PLC.html

http://hoovweb.hoovers.com/rolls-royce-motor-cars/--ID__134055--/freeuk-co-
factsheet.xhtml

http://www.autoblog.com/2007/02/20/the-rolls-royce-of-marketing-strategies/

http://www.autointell.com/european_companies/rolls-royce-bmw/rolls-royce-phantom/
rolls-royce-phantom-01.htm

http://www.conceptcarz.com/vehicle/z1442/Rolls-Royce-Phantom-I.aspx

http://www.datamonitor.com/store/Product/rolls_royce_group_plc?productid=C4DFE20F-
9E15-4C09-94AD-BAE1A95E1288

http://findarticles.com/p/articles/mi_hb5797/is_200812/ai_n32311067/

http://www.hoovers.com/company/Rolls-Royce_Group_plc/crxyci-1-1njg6y.html

https://www.press.rolls-roycemotorcars.com/pressclub/p/rr/pressDetail.html?
outputChannelId=4&id=T0079747EN&left_menu_item=node__5450

https://www.press.rolls-roycemotorcars.com/pressclub/p/rr/startpage.htm

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http://www.researchandmarkets.com/reportinfo.asp?report_id=575079

http://www.rolls-roycemotorcars-dealer.com/moscow/

Http://www.rrec.co.uk

Http:/www.rroc.org

http://www.strategypage.com/htmw/htlead/articles/20100529.aspx

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