Marketing Plan for Rolls-Royce with China Aspects - Case Study Example

2016 Marketing Plan for Rolls-Royce China Name Institution Course Date 2016 Marketing Plan for Rolls-Royce China Introduction Rolls-Royce is the second biggest manufacturer of jet engines and also specializes in automobiles (Katz, 2015). China is both a key market and a manufacturing base for Rolls-Royce specialized in civil aerospace, automobile, marine as well as nuclear. It has built a strong and sustainable foundation in China. Rolls-Royce produces luxury products which are accessible to the wealthy. This paper is a 2016 marketing plan that will highlight aspects of target market such as demographic, geographic, behavioral to name a few. It will also detail out the marketing mix of Rolls-Royce and will analyze the future scope of its products. Target Market Segments Demographic Segmentation The target market for Rolls-Royce in terms of demographic has been classified according to age, generation as well as occupation. It has also been classified according to the purpose with which the product serves and also according to the different life stages their customers belong to. Rolls-Royce China provides its customers with different products depending on aspects such as age (Rolls-Royce, 2015). The company classifies the different types of products based on the age and gender of their customers. Rolls-Royce China therefore can target women who are deep-pocketed by marketing its products to its customers. This can be a very important aspect of marketing since Rolls-Royce can maintain a very respectable and sustainable relationship with every Rolls-Royce buyer (Rolls-Royce, 2015). In addition, the company can target their market according to their income status. For example, customers who are interested in purchasing a Rolls-Royce automobile are sensitive in knowing the benefits and advantages that come along with the exuberant price. Therefore, Rolls-Royce can use this strategy to target customers who fall in this category of income earners. Psychographic Segmentation This kind of segmentation involves lifestyle of individual customers. It also entails the customer’s activities together with their corresponding interests and opinions. It classifies individuals according to the way they spend their leisure. Rolls-Royce targets a market that includes individuals who relish an extravagant lifestyle according to their levels of income (Roll-Royce, 2015). For example, these kinds of individuals are classified into two main categories: old money or new money. Old money includes individuals who have the motive of passing down the luxury products to their later generation. Whereas, new money entails individuals who like to show off in order to gain recognition. Therefore, Rolls-Royce China can seek market from such persons by targeting customers who are in the following social group; entrepreneurs, those that are self-employed as well as those that have had the privilege to inherit their family’s large fortune (Rolls-Royce, 2015). In addition, Rolls-Royce China can target individuals who own three, four or even up to five homes and also those who have a net worth of about $30 million. Behavioral Segmentation Behavioral segmentation separates customers into classes with regard to their knowledge, response, their rate of usage and also their readiness stage to purchase a certain product. It is renowned that building market segments most at times commence with the behavior variables. Rolls-Royce customers are characterized into light, medium and heavy users. Light users are those that have a Rolls-Royce automobile or product and rarely use them except during important occasions (Rolls-Royce, 2015). On the other hand, heavy users are those customers who utilize the automobile or product to its full potential. Therefore, Rolls-Royce China can use this as a marketing strategy by targeting customers who use their Roll-Royce product either lightly or heavily. In addition, the loyalty status also prevails in customers who use these products. They may include hardcore loyal and shifting loyal. Therefore, the company can target such market influencing them considerably (Rolls-Royce, 2015). Geographic Segmentation Geographic classification involves dividing people in relation to nations, countries or regions. This criterion brings together both geographic and demographic data to form a definite profile. For instance, the company’s retail stores are located in regions where a huge number of consumers live in high-status class region (Rolls-Royce, 2015). The largest geographical market segment for Rolls-Royce is China and the US. This can be a potential market for Rolls-Royce China. Marketing mix Product A product is the fundamental component of the marketing mix since it tends to fulfil the needs of the customers. Generally, Rolls-Royce company focuses on automobiles, deck machinery, water jets, jet engines, rudders and stabilising systems to name a few (Lisa, 2012). Rolls-Royce has had the capacity to deliver quality to the consumers. They have produced engines with positive features such as fuel efficiency and durability. The employees of the company are trained in ways in which they deal with customers. This will strengthen its relationship with them. Effective delivery of products in 2016 will require the company to expand on its discovery of customer’s tastes and preferences. The company also offer specialised produced that match the needs of the buyers. Price A company’s goal concerning price is to reduce the costs of their products by improving efficiency and production. Rolls-Royce China should increase the company’s needs in order to increase the value of its products as perceived by the customers (Finocciarro, 2010). There are many ways in which the company prices their products. Regarding Rolls-Royce, the company uses a combination of premium pricing and geographical pricing (Rolls-Royce, 2015). It uses a high price for its unique products. This is because of its competitive advantage and the fact that the company is safe to charge higher prices to its luxury products. In addition, at times, Rolls-Royce prices its products according to the geographical location of customers. For instance, the company can sell its automotive at higher prices in the United States as compared to China. Place Place is a component of marketing mix that can also mean channel of distribution. It can be considered as a mechanism in which products move from manufacturers to the consumers. Getting the products to the consumers involves a distribution system. Rolls-Royce carries out their distribution through the use of joint venture, subsidiaries and mergers and acquisitions (Rolls-Royce, 2015). Rolls-Royce manufactures and offer high-quality automobiles and other products; it is keen to details and offer products that have value for money. The recent approach to which Rolls-Royce distributes its products is through a mobile app (Finocciarro, 2010). In selling its automotive, the company uses an iPhone application with interactive features where customers can personalise a vehicle. Rolls-Royce also sells other products apart from automobiles through the application (Rolls-Royce, 2015). In addition, Rolls-Royce also uses a large market dealership and import to networked countries. The company has many plants in China and other countries where they store their products before distribution. Moreover, Rolls-Royce has more than 3000 dealers operating in different regions who can sell their products to the customers. Promotion Promotion encompasses all the methods and tools available for marketing communication. Promotion is carried out in order to increase product awareness by increasing revenues and sales. With regard to Rolls-Royce, promotion is conducted through the internet where they advertise their products online (Rolls-Royce, 2015). The company also carry out direct marketing often where the company communicate to the consumers directly. In addition, Rolls-Royce also makes use of trade fairs and exhibition where they showcase their products with an aim of retaining their customers while creating new ones. The company end up selling much at such showcases. Additionally, Rolls-Royce has utilised a number of advertising approaches in promoting their products including television, new product launches, magazines and brochures. Analysis of future scope of products Although Roll Royce Company has strong brand recognition all over, it will require much more in order to remain competitive. Its presence in China has led to its growth in sales and revenues (Rolls-Royce, 2015). The high cost structure of the company can weaken its brand in some market segments. Therefore in order to prevent this, the company can further diversify their products in order to meet the needs of the entire market segment. In future, the company has the potential to expand its product market by diversifying its brand portfolio (Prencipe, 2010). In addition, the company will harness all concepts of manufacturing and production, from research to innovation and product maintenance and repair. This will unlock innovative ways of generating revenue streams. The customer’s personalisation and customization for Rolls-Royce will continue to prevail and it will increase its speed to market in addition to its customer engagement. The company will invest more in build to order instead of developing to stock. This will reduce intermediaries as much as possible and increase sustainable relationship with the buyers (Prencipe, 2010). Conclusion To sum it up, Rolls-Royce China can classify its target market according to the following aspects: demographic segmentation which involves both age and occupation of its customers. It can also be classified in terms of psychographic segmentation which entails the lifestyle of the customers and how they choose to spend their leisure. Also, behavioural segmentation provides a ready market for the company since it singles out the customers according to their usage as well as their loyalty to the products. Geographic segmentation classifies the customers with regard to their location. Generally, Rolls-Royce is facing intense competition and for it to remain competitive it should give a chance for price reduction in addition to expanding into new markets. The company has maintained its brand and recognition which attracts potential buyers. References Benjamin D. Katz, 2015, Rolls-Royce Plans Asian Production Push with China Still Key. Bloomberg Business. retrived from http://www.bloomberg.com/news/articles/2015-10-08/rolls-royce-plans-asian-manufacturing-push-as-china-still-key Finocciarro, P 2010, Rolls-Royce targets aspiring luxury consumers with mobile app, Mobile Marketer Newsletter. Retrieved from, http://www.mobilemarketer.com/cms/news/content/6946.html Lisa M 2012, Rolls-Royce increases Marine Business in China, Business Shanghai Review. Prencipe, A 2010, Sustaining the Innovation Process: The Case of Rolls-Royce plc William Lazonick. The European Institute of Business Administration (INSEAD). Rolls-Royce 2015, Rolls-Royce China, A key market, manufacturing base and supply chain partner. Retrieved from http://www.rolls-royce.com/careers/working-for-us/our-locations/china.aspx Read More