ELAMBRE, JESSICA E. BSAIS3
HISTORY
History of Rolls-Royce dates back to 1904 when Henry Royce was introduced to
Charles Rolls in Manchester. Royce ran an electrical and mechanical business since
1884, while Rolls was one of Britain’s first car dealers. The thing that brought the two
men together, however, was the two-cylinder Royce 10 that was made by Royce in
1904. Rolls preferred three- and four-cylinder cars, however, he was so impressed by
Royce’s two-cylinder vehicle that he promised him to take as many Royce’s cars as he
could make. Royce and Rolls reached an agreement according to which four models
will be made, all will bear Rolls-Royce name and they will be sold exclusively by Rolls.
The first Rolls-Royce two-cylinder car was presented at the Paris Salon at the end of
1904.In 1906, the two entrepreneurs formed Rolls-Royce Limited.
In addition to the two-, three- and four-cylinder cars, Royce started working on
development of a new six-cylinder model with 40/50 hp. In the following years, RollsRoyce focused exclusively on the new model which came to be known as the Silver
Ghost. In 1907, the Silver Ghost was declared ‘The Best Car in the World' after its
record-breaking success. Travelling from London to Glasgow 27 times - covering
14,371 consecutive miles - the iconic motor car broke the world record for a non-stop
motor run while demonstrating unrivalled reliability and comfort. It was the very same
40/50 model that made Rolls-Royce one of the most desirable brands and forced the
company to open a second factory in the United States to be able to keep up with the
demand.
STRENGTH OF ROLLS-ROYCE
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Brand Image – Rolls Royce cars have always been strongly
associated with quality and performance and are the last word in
luxury. This brand image has helped the brand charge a premium
for their cars.
Backing from the parent company – Rolls Royce cars have the
technical support from the parent company which has been
continuously researching into the technology and has perfected it
over the years. This association with the parent company acts as
their biggest strength.
Superior design – Rolls Royce Cars have perfected the art of top
class design in luxury cars and they are also experts in interiors. The
build quality is high and the engine and chassis are also superior.
Luxury Variants – The variants of the Rolls Royce brands like
Phantom, Phantom Drophead Coupé (convertible), Phantom Coupé
(coupe) and Ghost are all popular in the premium automobile
segments.
Skilled workforce – The Company recruits people with a lot of
attention and most of the employees who work with Rolls Royce are
highly skilled and qualified in their respective domains.
Pan-global presence – Rolls Royce has a presence in more than
50 countries across the world and their customers are spread across
180 countries of the world
WEAKNESSES OF ROLLS -ROYCE
• Status Symbol: Rolls Royce is perceived as luxury brand and people
associate it with high status and dignity. It is perceived as a rich man’s
vehicle and thus seen as unaffordable for lower classes.
• Evolutionary Design: The design of Rolls Royce cars have evolved
over time and thus the various cars look like clones of a single model.
Customers who choose Rolls Royce cars are people who prefer the
brand for its standards styling and design.
• Exorbitant Pricing: Rolls Royce Cars are priced at the highest end
of the spectrum and may be unaffordable for most customers. This
makes the company target just niche segments and thus cater to a
small clientele.
• Over-reliance on repeat purchase: Rolls Royce cars are luxury cars
that target a small group of customers and they depend on client loyalty
and repeat business for their revenues.
STRATEGIES BEING EMPLOYED
1.Product Strategy of Rolls Royce
Customers can order customized cars from Rolls Royce Motors which is unrelated
to the Rolls Royce brand, which is owned by another business with the same name.
The long front bonnet metallic finish exteriors and tailored interiors distinguish Rolls
Royce cars.
2. Price Strategy of Rolls Royce
Rolls Royce is a well-known brand with unrivalled brand value. It targets the rich
and upper-class with its premium autos. The company has established a High-Premium
pricing strategy for all of its items because they are all in the high-luxury market.
It appeals to affluent people who care about their reputation, name and status yet
are unconcerned about extravagant spending. Being associated with the Rolls-Royce
brand is a privilege, and the company capitalizes on this by maintaining its premium
cost range.
3. Place Strategy of Rolls Royce
Rolls-Royce is a desirable automobile with over 150 production sites and activity in
around 50 countries worldwide. The highest sales figures are in the Middle East, the
United Kingdom, and the Asia-Pacific region.
To ensure that autos reach their customers quickly and without delay, the company
leverages the services of its parent company (BMW), which has its own advanced and
popular distribution network and includes dealer services.
4. Promotion Strategy of Rolls Royce
Rolls-Royce has established itself as a luxury brand with global recognition since
its inception. It has succeeded in building in the minds of consumers a strong ideal
brand value.
Its marketing techniques include displays at high-profile events, expensive hotels, and
exclusive vehicle shows. Rolls Royce caters to an extremely exclusive and niche
market, and the company relies heavily on word-of-mouth advertising from happy
customers who unknowingly become brand ambassadors and marketing agents for the
company.
PRIMARY REASONS FOR BEING A GLOBAL BRAND
Rolls-Royce, a brand renowned for elegance and durability. Rolls-Royce is often
chosen as the ride for the world's elite. In fact, some early models were designed
exclusively for royalty. Rolls-Royce vehicles are handcrafted from roof to road with
meticulous attention to details.