This assessment will cover the following questions:
- Provide the skills in carrying out a comprehensive marketing audit and identifying Opportunities and Threats in the context of Rolls Royce company.
- Generate the marketing research skills through a systemic approach of searching, collecting and interpreting and analysing data to support the formation of the suitable marketing plan.
- Rolls Royce is a British luxury auto-mobile manufacturer. Implement findings to create and position a new unique selling proposition. In the process creating a new product in line with future demand.
Marketing management is related to managing the marketing activities of an organisation by applying techniques, tools and orientation so that the company products and services can successfully attract the attention of customers. Success of a company largely depends on marketing management as it helps in analysing the current trends of market so that goods and services can be manufactured in accordance with needs and wants of customers. It also helps the company in new product development, advertising, promotion and selling its products by determining market needs so that such products and services can be made which help in creating high customer value and increasing their satisfaction (Phadermrod, 2019). In this report various concepts of marketing management are discussed in relation to automotive industry located in UK which will help in analysing the opportunities present in the market in this industry. Rolls Royce is a British luxury auto-mobile manufacturer which was established in 1998 having its headquarters in England, UK. In this report market positioning and unique selling proposition of the company will be discussed along with the internal and external market analysis so that it can grow in market. Further the marketing mix of company will be discussed so that opportunities for new product development can be identified in market.
1) Industry background, market positioning and present unique selling proposition
Automotive industry comprises of companies which are involved in the design, development, manufacture, marketing and selling of motor vehicles and helps in generating revenue for country. The UK has highest productivity of major European car producers which means that UK is at the cutting edge of automotive industry which makes it a global competitor in the automotive market and also makes it a world exporter of most luxurious and expensive cars. The industry produces over £82 billion turnover and about £18.6 billion value which contribute towards the UK economy and also help in generation of employment opportunities (Sarsby, 2016).
Rolls Royce Motor Cars Ltd. is a British car manufacturer which manufacture luxurious cars that are premium priced and are generally targeted to high income class families. The cars manufactured by the company are of unique designs and are manufactured by using modern technologies which help in maximising customer experience and increasing value for customers. The company position its products in market by following STP method which help the company in analysing market and dividing it into smaller segments so that its marketing strategies can be focused on the target market segment. STP is a marketing tool which can help the company in identifying its target market in which it can compete in an efficient manner by applying the marketing strategy so that the sales and profitability of company can increase. STP of Rolls Royce is as follows:
- Segmentation: Market segmentation is related to dividing a large market into smaller groups or segments in such a way that each segment include buyers having similar needs, characteristics or behaviour so that company's products or services can be targeted to that particular market. This helps the company in identifying the markets in which it can sell its products and focus its marketing strategies so that its target customers can be identified. Rolls Royce can segment its market based on various characters like geographic, demographic, psycho-graphic and behavioural so that it can target its products and marketing strategies in that market which can help in increasing its sales. It mainly focus rich people who have high living standards so that the sales of Rolls Royce can be increased (Abdel-Basset, 2018).
- Targeting: This stage relates to evaluating all the segments of market so that they can be judged based on their level of attractiveness which will help the company in choosing the most profitable market where it can target its products so as to increase its sales. Rolls Royce target its market based on the characteristics of population who can afford highly expensive and luxurious cars offered by it so that it can increase its sales in the target market. This helps the company in analysing the markets which are more attractive for the company. The other factors which the company looks at before identifying its target markets are the markets where people are ready to spend more, have high brand attractiveness and have needs for high quality of auto-mobiles (Perera, 2017).
- Positioning: At this stage the companies formulate marketing-mix strategy so that their target markets can be attracted in the most efficient manner. This will help the company in increasing its sales and also gaining competitive advantage which will help it in bringing innovations in its products so that their uniqueness can be maintained. Rolls Royce position its products by offering its car at high price in the target market so that the customers who can afford expensive cars can be efficiently reached which helps in increasing the sales of company.
Unique selling proposition is the unique factor or feature which make the company products or services differentiated from other competitor companies so that it can achieve a competitive edge in the market and attract customers based on their unique features. This is the feature which helps the company in attracting a large number of customers and creating a high value for them. Rolls Royce is one of the oldest car makers in the world and is well known for its excellent craftsmanship and unique designs of cars which helps in creating high experience for its customers. There are several features which the car contains that gives the company a unique selling proposition in the market. Some of these USP points are:
- Customization: The cars manufactured by Rolls Royce can be customized as per the needs of customers so that they can design the car as per their needs and requirements. This include getting the car designed in a different way both internally and externally, change the material which is used to make the seats of cars, the design components can also be changed etc. so that high customer satisfaction can be achieved (Aithal, 2016).
- Exclusivity: The company manufactures cars which have exclusive designs which help in creating a high standard image of the car owner in society as these cars can only be afforded by the people belonging to high income group. This helps in increasing the status of a person in the society in which they live and enhance their reputation. Owning a Rolls Royce car gives a highly prestigious image to the person in society and also enhance their standard of living.
- Recognition: Rolls Royce cars give recognition to people in the society as these re generally owned by people who have the capacity to spend huge amount of money. This is a unique feature which helps in enhancing the image of person in the society which helps in increasing the sales of company as customers can be attracted on the behalf that if they purchase Rolls Royce cars their recognition in society will increase (Sammutâ€Bonnici, 2015).
- Powerful engine: The company manufacture cars which have powerful engines and make low sound which is a unique feature of luxurious cars and helps in attracting customers. Powerful engines of these cars help in boosting the speed of cars while increasing the comfort of customers so that more customers can be attracted which will help in gaining a competitive advantage in the market.
Thus the above mentioned special features in Rolls Royce cars give it unique selling proposition and help the company in increasing its sales so that a competitive edge can be achieved in the market thus giving the company a unique position in the market.
2) Marketing audit so that the potential for growth in market can be analysed
Marketing audit refers to a comprehensive and systematic analysis of the market so that the potential threats and opportunities present in the market can be analysed so that the company can grow strategically and increase its profitability. This also help in analysing if the company's current strategies and efforts related to marketing are able to meet the company goals and objectives (Team, 2018). All the internal and external factors that can affect company's strategies need to be analysed so that a complete evaluation can b done which can help the company to grow in the market. External factors that affect Rolls Royce while functioning in UK can be analysed by using PESTLE analysis which is a strategic management tool that helps in evaluating all the external factors that affect company.
PESTLE analysis of Rolls Royce
It is an analysis that define the different factors which positively affect the growth of Rolls Royce and it includes all the macro-environmental factor that affects the success of Rolls Royce.
- Political: It is a factor that includes the policy, rules and regulation of government that affects the growth of Rolls Royce. As UK is a developed country thus the change in policy and regulation of government doesn't affect the growth of the Rolls Royce. Thus Rolls Royce has a lot of brand value and profit and also has a lot of amount of funds by which its growth, working culture, organisational factor doesn't affect by the change of policies. But it can affect the ability of customer's to buying, and if the company invested in china, Russia, Brazil where political factor are unstable that will be a risk for the Rolls Royce (Filippov, 2017).
- Economic: It is a factor that includes the inflation rate, interest rate, growth rate, economic growth, tariff etc. As UK is the stable country but its economy is quite fluctuated over the few years by which Rolls Royce's performance, growth, economy also affected. The fluctuation in the economy result in loss for the Rolls Royce and company also affected by the tariff rate. If Rolls Royce make their product in Mexico and sell to Europe then it doesn't affect by the tariff but if Product make in United States and sell in Europe then Rolls Royce affects by 10% tariff.
- Social: It is a factor that includes belief and attitude of people towards Rolls Royce. This factor is affected by population growth, health and wealth, age distribution etc. As UK is one of the most stable country and have less cultural difference that have a positive impact on the auto mobile sector. Rolls Royce deals with the manufacturing by considering research and development that attracts the maximum customers (Akwetey, 2015).
- Technological: It is a factor that includes the technological advancement. For Rolls Royce to stay in a market it is a mandatory requirement as they also deals with the aerospace segments. Rolls Royce also invest the maximum funds in research and development to upgrade the company with the technologies. Rolls Royce also works with the car project that is 103-EX. and that car is the combination of technology and all the basic necessity of people. The company also deals with the future advancement by which they attract a lot of amount of customer and build the profit.
- Legal: It is a factor that include health and safety of people, consumer rights and laws, etc. As UK is the stable country thus there are some legalities that must be followed by companies. Rolls Royce works in several country thus they must focus on the legalities which directly affects the growth of the company. To avoid the legal action Rolls Royce must focus on the quality of auto mobile products to gain the profit. Rolls Royce also maintains the legal formalities while working in different countries and at the time of manufacturing different products as regulation and safety will vary (De Sarbo, 2017).
- Environmental: It is a factor that includes population index, carbon footprints set by the government. As UK is most clean and healthy country and always focus on the environmental cleanliness. Rolls Royce also works to adopt maximum use of renewable sources and reduce the use of fossil fuels. The engines of Rolls Royce is also more advanced that manage the low emissions. Rolls Royce also moves forward to work with electric vehicle take-off and landing vehicles by which they promote the usage of sustainable technology.
By considering all the factor of PESTLE analysis it helps the Rolls Royce to enhance the business performance and with this analysis Rolls Royce knows about the external factor that affects the growth of development of the company.
It is a analysis by which Rolls Royce leads the performance by understanding several factors like strength, weaknesses, opportunity and threat that helps the company for strategic planning.
- Strength: Rolls Royce have simple and focused organisational structure that helps the company to achieve their target at a particular period of time. Rolls Royce have strong research and development team that makes their product different from other that attracts a maximum number of people by which company gains the profit. The biggest strength of Rolls Royce is that they always comes with technological advancement and focus on re-engineering that makes strong brand image and by which a strong Rolls Royce gains the profit (Andaleeb, 2016).
- Weaknesses: The major weaknesses of Rolls Royce is to manage the continuous change of technology that affects the growth of Rolls Royce. Risk management is also be the major weaknesses as because technological advantage always comes with risk and to manage that company needs a strong management system. As Rolls Royce leads to aggressive financing growth that increases the debt to equity ratio and sometime it leads the weakness of the Rolls Royce.
- Opportunity: It is the abilities of the Rolls Royce that is raises by the competitive market or by the target market. It includes those factors that positively affects the growth and development of the Rolls Royce. The major opportunities of Rolls Royce is their focus on increment of automation like self driven system that is easy for them to achieve. Customization is also be the biggest opportunity as Rolls Royce focus on fulfil the needs of people by maximize the growth of personalized vehicles. Rolls Royce inserts some technology like IOT, machine learning and connectivity of data that makes their product even more luxuries (Deepak, 2019).
- Threat: It is a factor from which the Rolls Royce must take care off as it affects the growth of the company and Rolls Royce must aware about the threats that is generated by the market. The major threat of Rolls Royce is Brexit that is the withdrawal of UK from Europe that affects the operation of the company. Risk factors and uncertainties like foreign exchange rate, interest rate, commodity rate is also act as the threat that affects the growth of the company.
From the above SWOT analysis it can be said that the company can successfully grow in the market which means that if it plans to introduce some new products then the profits can increase exponentially.
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Ansoff's Matrix for Rolls Royce:
Ansoff's matrix is a strategic planning tool which was given by Igor Ansoff and is used by companies so that their strategies for growth in market can be analysed. This matrix can be used by Rolls Royce so that it can successfully grow in the market by using any of the following four strategies:
- Market penetration: In this strategy existing products are sold in the existing market of company so as to increase company sales in current customer base. This strategy can be used by Rolls Royce by lowering its prices so that more number of customers can purchase company's existing products in the existing market (Kotler, 2018).
- Product development: Through this strategy company tries to grow in the market by introducing new products in existing market so that more sales can be achieved by increasing the sales in existing markets. Rolls Royce can use this strategy by bringing innovation in its products so as to attract a large number of customers through its new and unique features hence creating high value for its customers which can help in increasing customer satisfaction.
- Market development: Through this strategy a company can grow in the market by introducing its existing products in new markets so that the customers present in new markets can be attracted which can help in increasing the sales of company. Rolls Royce can use this strategy by entering into new markets so that its sales can increase thereby increasing its profitability (Keller, 2015).
- Diversification: This strategy can be used by companies to grow by introducing new products into new markets which helps the company in increasing its market and increase its sales. Rolls Royce can use this strategy to grow in a new market by offering its new and advanced products with differentiated features so that its sales can increase.
3) 4Ps model so that new product can be developed
The four Ps of marketing are the essential factors related to marketing which help need to be analysed by the company so that it can efficiently market its products and services in the market and increase the sales of company. The concept of 4Ps need to be analysed by the company for making its marketing strategies so that right products can be delivered to right customers on right time and at right place which help in enhancing the brand image of company. The company can use 4Ps of marketing before launching its new products so that right customers can be targeted and attracted to purchase the company's products at right price and at right place so that the sales of new products can increase (Nordhielm, 2015). Rolls Royce is a renowned company which manufacture luxurious cars having unique features which can help in attracting customers belonging to high income class families who can afford the company's products. The 4Ps of marketing mix will help the company in reaching right customers and offer them products at right prices so that maximum customer satisfaction can be achieved. The new product which is launched by the company is electric motor vehicles so that it can grow in the market and increase company sales:
- Product: Rolls Royce is a globally recognised British brand of luxurious car manufacturing company which offer highly expensive and luxurious cars to its customers and mainly focus on high income group families who can afford its products. The company also offer customised cars to its customers which help in maximising the value created for customers and also increase their level of satisfaction. The company make use of highly advanced technology so as to manufacture its cars with unique features so that a prestigious look can be given to its cars. The new product that company aims at offering in market are electric cars which will help it in increasing its sales in the near future. Electric vehicles can help the company to increase its sales as they are going to be the future trend which will help in saving the fuel costs and also saving the environment from pollution.
- Place: Rolls Royce is present worldwide with its offices spread in 50 countries worldwide while its headquarter is located in England, UK. The company sell its cars through two different marketing channels which are directly through its online website and through the wholesalers who then sale the cars to retailers. The company has a network of over 500 suppliers that help the company in providing it with raw materials that are required to manufacture the products that are finally delivered to customers. The company can sell its new products i.e. electric vehicles through the online platform by improving its online website more user friendly and easier to use. These electric vehicles can be sold by the company through its retail stores so that cot can be saved by the company while managing its margins (Olson, 2018).
- Price: Rolls Royce has premium priced its products as it mainly focus on the upper class society and highly earning income groups as the products offered by the company are expensive. The company offer high quality products to its customers which can be customized and additional add-ons can be done on the products thus enhancing its features which further increase the price of its products. The company simply focuses on highest quality and premium pricing so that only a particular section of the society can be focused which help in maintaining high reputation of the company. The company offers lot of exclusive features which means that even though the prices of cars are high it can attract customers based on the unique features offered by company. The company can offer its electric vehicles to customers at high prices focusing on the rich class of society which will help in increasing the company sales.
- Promotion: Rolls Royce uses multiple media channels in order to promote its products and reach to a large number of customers which helps in increasing the profitability of company. Advertisement on television and radio, use of social media and online advertising etc. help the company to promote its products in an efficient manner. The company also promote its products through trade exhibitions and events so that new customers can be created and existing customers can be made loyal (Homburg, 2017). This helps in increasing the attractiveness of company's products so that its profitability can increase. For successfully promoting its new products the company can use online platform and social media so that a large number of customers can know about the electric vehicles that the company aims to offer. Also the company can advertise increasingly about its new products which will help it in attracting the attention of a large number of customers.
Thus the company can launch its new products in the market by applying the marketing-mix in an effective manner so that the target customers can buy their products and help in the growth of company. The internal strengths and market opportunities can help the company to grow efficiently in the market. However, the company needs to deal with its weaknesses and the potential threats in market so that these do not create a problem for the company to grow