Marketing Management for Rolls Royce: Competitive Analysis, Market Segmentation, and Brand Positioning

This report discusses the marketing management strategies for Rolls Royce, focusing on competitive analysis, market segmentation, targeting, and brand positioning. It also includes information on the demand forecast, pricing strategy, and integrated marketing communication mix.

Marketing
management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Competitive information.............................................................................................................1
Environmental scanning..............................................................................................................2
Demand Forecasted.....................................................................................................................4
Specific market segmentation, targeting and positioning...........................................................4
Product or service’s brand positioning........................................................................................5
Market leaders, niche for the products and services...................................................................5
Consumer adoption process........................................................................................................6
Pricing strategy decisions............................................................................................................6
Plan for location, hours of operations and the way in which demand and capacity issues will
be managed..................................................................................................................................6
The integrated marketing communication mix...........................................................................6
Communication media................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing management refers to the discipline of company that pays emphasis towards
applying marketing orientation, methods, practices and techniques to manage resources and
activities effectively. It majorly facilitates practices and functions that are related to distribution
of products and services (Bagozzi and et.al., 2018). For understanding marketing management,
Rolls Royce company is selected. It is luxury auto mobile maker whose headquarters are located
at England, UK. The company is planning to launch an electronic car with innovative feature of
weather forecasting, eye lock as well as digital scanner.
The present report highlights information about competitors, scanning of environment,
STP statements, brand positioning and other relevant details.
MAIN BODY
Competitive information
For all the businesses that are planning to meet all the long-term business objectives or
willing to launch a new product or service in the market then it will be very important for them
to make sure that they are analysing the competitive information (Chang, McAleer and Wong,
2018). As Rolls Royce will be launching a new car in the market with innovative feature of
forecasting the weather within the range of 10 KM and eye lock system so the business will be
required to analyse it. In order to analyse it porter's five forces could be applied to the company.
All the factors of this model are discussed below in context of the organisation:
Competitive rivalry: Level of competition within the industry demonstrates this factor.
If it will be high then it may affect the business of the entity. As Rolls Royce will be launching a
car with innovative features so it will be required to analyse the major players in the market. The
major competitors of Rolls Royce are Bentley, Bugatti, Toyota, Daimler, Bomberdier etc. All of
them can also launch cars with similar features in the market so that level of competitive rivalry
for the organisation is high.
Threat of new entrant: A new company which can affect the business of existing
players in the market are known as new entrants (Chernev, 2019). The automotive sector is very
big and there are various barriers to enter in this market one of the common barrier is huge
funding and high level of competition. The threat of new entrant for Rolls Royce will be very
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low if it will launch a new car with innovative features such as weather forecasting and eye lock
system.
Threat of substitute: All the products and services which are providing same benefits to
the customers. The idea of launching care with innovative features such as weather forecasting
and eye lock is very unique and there is no substitute for these types of qualities. It reflects that
the threat of substitute for Rolls Royce for its new car is low because of lack of substitute for it.
Bargaining power of customers: When clients are not satisfied with the price which is
decided by the organisation for the products or services then they bargain on the price and they
tend to switch to the low priced items (Decker and Stummer, 2017). The car which will be
launched by Rolls Royce in the market in upcoming year have unique and innovative features
and there is no another seller of such cars yet so the customers will not bargain for the same. It
demonstrates that the bargaining power of customers for the company will be low.
Bargaining power of suppliers: If the number of supplier is very high in the industry
then it may result in lower bargaining power of them. In the opposite situation the bargaining
power of them will be high. The suppliers of goods for innovative technologies for weather
forecasting and eye lock system in automotive industry is very low. Due to this, Rolls Royce
may have to face the issue of high bargaining power of suppliers while launching the new car
with innovative features.
Environmental scanning
In terms of analysing and identifying the overall situation and condition of market it is
pretty much effective to consider and analyse overall market area as it is useful in understanding
the dimensions and dynamics of market in terms of enhancing their business condition and also
more effective to improve the business on the continuous basis (Di Benedetto and Lindgreen,
2018). This factor is helpful in terms of identifying the risk factor and tends to develop effective
strategies and standards in order to overcome them. The below analysis is based on the new
product of Rolls Royce as company introduce new electric car with innovative feature including
weather forecasting and also tends to eliminate pollution and carbon emission which is beneficial
for the environment. Some factors are mentioned as under: Political: This factor tends to include various political components that has major impact
on the running and functioning of company. It depicts that driving electric vehicle is quite
prominent and beneficial for company as it does not harm environment and other factors
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that prominently fit with the political conditions of company. In regard of this, the
electric car consider various future and current support for its electric vehicles and also
tends to offer prominent funding. In regard of this, the current deployment within the
electric vehicles is supported by the Horizon 2020 which is the biggest EU research and
innovation programme. In regard of this, the electric vehicle of Rolls Royce is supported
by the European Green Vehicles Initiative which is the contractual public-private group
that deliver green vehicles and mobility system solutions. Economical: This factor for the electric car is related with the overall economic
condition and consider the sales of electric vehicles which is increasing and also meet
regarding the expectations within the industry (Ellram and Murfield, 2019). For this,
electric vehicle market grows at a very fast rate which is around 10-12% of the total car
ends. In regard of this, the European market share considering the electric car grows as
per the market share of different countries. For this, the purchase price of the electric
vehicle is undertaken a the major issue for the further market penetration. Social: These factors depicts the attitudes of the European Union customers towards the
electric vehicles and for this, customers has the lack of knowledge and also have very
good experience towards the electric vehicles. In terms of this, the attitude of Europeans
on the side of urban mobility is asked regarding the unique phenomenon by considering
the air pollution, road congestion, travelling cost and noise pollution as these are the
largest issues from the road transportation. In terms of electric vehicles all these factors
are not present that makes it more reliable and effective. For this, many of the users
identified that electric vehicles are more conventional and offer prominent satisfaction to
their customers. As it does not product noise, driving style is normal and abilities is also
quite satisfactory. Technological: This factor tends to consider the existing and future technological
innovations for this, the main challenges include the electric vehicles tends to face
regarding the limitations in specific range (Hollensen, 2019) (Keegan, 2017). In terms of
this, the distance among the electric vehicle tends to pass on with one charge but the
challenge included with it is it tends to develop the effective charging infrastructure.
Along with this, the battery is also considered as an obstacle as it tends to enhance the
cost of vehicle which is somehow not convenient for customers.
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 Legal: It is related with the legal laws and legislations as the electric car which is offered
by Rolls Royce has the advantage of weather forecasting which is its innovative feature
and it depicts that the conventional cars should be eliminated in terms of half by
considering the greenhouse gas emissions which is transport and should be eliminated on
the grounds of prominent standards. In terms of this, successful execution of electric
vehicles in European Union depends on the significant changes for the national
regulations as it is the prominent process which should be supported at the local level.
 Environmental: This factor consider the level of pollution which is developed by the
electric vehicles and the attitude that exist in the business environment considering the
consumers and governments (Kireev and et.al., 2016). For this, the electric cars has the
prominent potential in order to decrease air pollution. As it is also important to identify
the types of air pollution which is eliminated by the use of electric vehicles. For this, the
climate change in future tends to impact the environmental conditions and society that
tends to develop electric vehicles.
Demand Forecasted
Demand forecasting refers to the process wherein past sales data are utilised for the
purpose of developing estimating about predicted forecast of customer demand (Kotabe and
Helsen, 2020). The new electronic car will be launched in coming 1 year and managers of Rolls
Royce have forecasted that the entity will be able to sell around 200 units on its launching date.
The demand is forecasted by the organisational managers after conducting market research and
understanding the needs of customers for the innovative features.
Specific market segmentation, targeting and positioning
Target market is considered as the procedure in which multiple questions are considered
by the company in terms of selecting the target market and consider prominent position in order
to execute the supportive marketing mix (Kotler and et.al., 2018). For this, the marketing
procedure tends to define the marketing strategy and other concerning factors which should be
considered as per the marketing strategy within the defined market. Its factors are discussed as
under: Segmentation: Rolls Royce tends to target the prominent area in terms of its products and
services as its offerings are quite expensive and the commodities are offered as the very
high prices. It tends to include various factors and segments like demographic, behaviour,
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income level, lifestyle and so on. In regard of Rolls Royce, they consider the lifestyle and
income level of customers as their products are quite expensive and every individual
cannot afford it. Targeting: It define the target market of company which is proactive in nature
considering the selection of significant market area undertaking the intention of
prominently focusing marketing offers and undertaken activities (Krasyuk and et.al.,
2017). For this, Rolls Royce tends to target the customers who belongs from the 30-45
age group and also belongs from rich class who can easily afford the product of company.
 Positioning: After launching new electric car with innovative features, Rolls Royce
become the leader of market due to its new and innovative features that makes it unique
that helps in increasing the customer base and reputation of company.
Product or service’s brand positioning
Effective brand positioning strategy leads to maximising relevancy of customers as well
as competitive distinctiveness to maximise value of company and its offering. In case with Rolls
Royce, the new electronic car will be positioned through using product characteristic strategy. As
the new electronic car have unique feature of weather forecasting, digital scanner and eye lock,
this will attract large customer base towards it because the strategy emphasises more on
characteristic of product that is going to benefit customers.
Market leaders, niche for the products and services
The market leaders for the new electronic car that Rolls Royce is planning to launch are
Bomberdier, Bugatti, Daimler, Bentley and Toyota. All these companies designs and
manufactures top class cars that are widely preferred by high and upper middle class group. For
their product, they have identified entire world as their niche market. However, there is no such
car introduced by any competitors that have the features that Rolls Royce will introduce. So, for
the new electronic car, targetted niche is London for initial sales. The product is going to be a
challenger for well established brands as it is more demanded by customers (Naudé and Sutton-
Brady, 2019).
Consumer adoption process
Consumers of Rolls Royce will learn about the new electronic car through advertisements
and social media promotions. They will adapt it as quickly as possible as it is a innovative car
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that will help customers to forecast weather and lock the car through eye sensor. The product
will be targetted to heavy users as they adopts new features in cars in quick time period. Their
estimation time for adoption is 5 months.
Pricing strategy decisions
Competitive pricing strategy and premium pricing strategy are commonly used by
automotive companies for the purpose of pricing strategy decision (Obradović, Kostić and
Mitrović, 2016). In context to new electronic car, Rolls Royce will use competitive pricing
strategy in which it will consider competitors prices while setting prices for the new car. This
will ensure profitable sustenance of entity and help in setting suitable price that covers
production cost, overheads cost and many more.
Plan for location, hours of operations and the way in which demand and capacity issues will be
managed
It has been planned by Rolls Royce that the new car with innovative features will be
launched in London at initial level. Apart from this, the hours for operations will be around 10 to
15 as it will be very important to pay attention towards business attentively. It has also been
planned by the enterprise that the demand and capacity issues will be managed with proper
planning, assessment and control of operations ( Bagozzi and et.al., 2018).
The integrated marketing communication mix
The integrated marketing communication matrix for new electronic car that will be
launched by Rolls Royce is as follows:
Communication Purpose Medium Frequency Audience
Project team
meetings
For reviewing
status of the
project to
launch new
electronic car
with innovative
features of eye
lock, weather
forecasting and
Face to face as
well as
conference call
Monthly Project Team
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digital scanner
Internet
platforms
To generate
awareness about
the new
electronic car in
mass number of
people
(Krasyuk and
et.al., 2017).
Emails,
Facebook and
Instagram
Weekly Technical team
Public relations To build
relations with
general public
and providing
them details for
new electronic
car
Face to face As needed Project manager,
sponsor and
stakeholders
Communication media
The possible communication media that will be used by Rolls Royce managers are as
follows:
 Internet platforms: Through the communication media, information about the new
electronic car will be communicated to targetted customers (Ellram and Murfield, 2019).
 Project team meetings: The communication media will be used to communicate detail
about new electronic car of Rolls Royce with the entire team and stakeholders involved in
the project.
 Public relations: Another communication media that would be used by Rolls Royce for
building and maintaining positive image of brand and increasing awareness about
innovative features of the electronic car.
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CONCLUSION
By considering the above discussion, it is identified that in order to survive within the
dynamic business environment, it is important to have competitive information of market that
helps in the effective survival in market. Fir this, environmental scanning is conducted which is
useful in analysing the risk factor for the electric car and also find significant solutions in order
to overcome them. Furthermore, demand is also forecasted for the new product considering the
specific segmentation, targeting and positioning by offering the products and services of
company.
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REFERENCES
Books and Journals
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Chernev, A., 2019. Strategic Marketing Management-The Framework. Cerebellum Press.
Decker, R. and Stummer, C., 2017. Marketing management for consumer products in the era of
the internet of things. Advances in Internet of Things. 7(3).
Di Benedetto, C. A. and Lindgreen, A., 2018. The emergence of Industrial Marketing
Management as the leading academic journal in business-to-business
marketing. Industrial Marketing Management. 69. pp.5-12.
Ellram, L. M. and Murfield, M. L. U., 2019. Supply chain management in industrial marketing–
Relationships matter. Industrial Marketing Management. 79. pp.36-45.
Hollensen, S., 2019. Marketing management: A relationship approach. Pearson Education.
Keegan, W. J., 2017. Global marketing management. Pearson India.
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production and sale activity of the enterprise. International Review of Management and
Marketing. 6(6S).
Kotabe, M. M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.
Kotler, P and et. al., 2018. Marketing management: an Asian perspective. Pearson.
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Applied Business and Economic Research. 15(12). p.83.
Naudé, P. and Sutton-Brady, C., 2019. Relationships and networks as examined in Industrial
Marketing Management. Industrial Marketing Management. 79. pp.27-35.
Obradović, V., Kostić, S. C. and Mitrović, Z., 2016. Rethinking project management–Did we
miss marketing management?. Procedia-Social and Behavioral Sciences. 226. pp.390-
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