Introduction to Brand Management January 28, 2008 Brand Brief & Brand Story
Maintain the Heritage of the Brand ..the modern embodiment of the classic British ultra-luxury “saloon,” albeit one that comes from a German-owned automaker. - Jim Gorzelany, Forbes Auto For over 100 years the motorcar company was British owned, but since 1998 it has been owned by BMW, a German company. The brand must work even harder to keep the English lineage of reliable, ultra luxury cars suitable for royalty in tack. A potential point of concern could surface with the RR4 since the prototype has been spotted on a BMW 7series chassis.
Offer Them Something, They Cannot Get Themselves Our customers like a degree of kudos. They can tell friends they had dinner with Rolls-Royce, or they met the designer of the Phantom. – Graeme Grieve, Rolls-Royce's sales and marketing director Rolls-Royce buyers are part of a very small niche at the pinnacle. This makes a Rolls-Royce prospect difficult to address especially with staff, friends, and associates around to protect them from unwanted sales pitches. Opt of little or no conventional media to reach these deep pockets instead focus efforts on event marketing.
Protect the Brand While Building new Relationships We don’t make any allowances for pre-owned vehicles – a car fit for Rolls-Royce Provenance has to be virtually faultless. – Rolls-Royce motorcars .com Given unprecedented demand for current models combined with the fact that more than six out of ten of all Rolls-Royce motorcars built are still roadworthy, there is an opportunity for another type of Rolls-Royce owner to emerge – those who want the quality offered by Rolls-Royce , but are unable to afford the straight out of Goodwood price.
Pop-Culture Among the Nouveau Riche Having snapped up country estates and English football clubs, the nouveau riche now want what is set to become the must-have status symbol of 2008, a customized RollsRoyce. – Bojan Pancevski, Telegraph.co.uk
State of the Business
Images and Associations Trademarks & Taglines Pop Culture Clubs
Emotional Rewards & Owner Experiences
Brand Values Reputation Value Relationship Value Experiential Value Symbolic Value
Appendix a. Historical Trademarks b. Advertisements c. Pop Culture Examples
The Heritage: Rolls-Royce Over the Years
Rolls-Royce is one of the most fascinating and well-known brands in the world, the luxury motor car par excellence. For over 100 years, motorcars of the Rolls-Royce brand have stood for truly outstanding engineering, quality and reliability. Rolls-Royce grew from the British electrical and mechanical business established by Frederick Henry Royce in 1884. Royce built his first motorcar in 1904 and in May of that year met Charles Stewart Rolls, whose company sold quality cars in London. An agreement was reached that Royce Limited would manufacture a range of cars to be exclusively sold by CS Rolls & Co – they were to bear the name Rolls-Royce. Rolls-Royce Limited (1906 – 1987) Rolls-Royce Limited was a car and, later, aero-engine manufacturing company founded. Rolls-Royce was nationalized in 1971 and the present Rolls-Royce plc was re-privatized in 1987. The automobile company was separated in 1973. Rolls-Royce PLC (1987 – Present) Rolls-Royce PLC, a world-leading provider of power systems and services for use on land, at sea and in the air, operates in four global markets - civil aerospace, defense aerospace, marine and energy. Rolls-Royce Motor (1973 – 1998) Rolls-Royce Motors was created from the de-merger of the car business from Rolls-Royce Limited in 1973. In 1998 the production facilities at Crewe plus the Bentley name were sold to Volkswagen, whereas BMW acquired, for the continued development and production of Rolls-Royce motorcars, the rights to the Rolls-Royce marque for automotive business from Rolls-Royce plc. Rolls-Royce Motorcars (1998 – Present) From 1998 to 2002 BMW supplied engines and parts for both brands. It was not until January 1, 2003 that only BMW would be allowed to name cars "Rolls-Royce", and Volkswagen’s former Rolls-Royce/Bentley division would build only cars named "Bentley". For the new generation of Rolls-Royce motorcars, an engineering and design team was established in central London during 1999 to create the car, which was to become the new Phantom. The Phantom, launched in 2004, is the first all-new Rolls-Royce in nearly 40 years and was built in the all-new Rolls-Royce plant at Goodwood in West Sussex, England. II.
State of the Business
At the 2008 North American International Auto Show, Rolls-Royce announced a record increase in sales for 2007. Last year 1010 Rolls-Royce vehicles were sold which means a 25% increase compared to 2006. The largest markets for Rolls-Royce are North America, UK and China with the best dealerships being Beverly Hills, London and Abu Dhabi.
The Rolls-Royce dealer network expanded to 80 in 2007, with new showrooms including St Petersburg, Kiev and Dresden. The top selling dealers worldwide in 2007 were, respectively, Beverly Hills, London, Abu Dhabi, Tokyo and Dubai. Abu Dhabi saw the highest annual increase, with sales more than doubling. Looking ahead in 2008, Rolls-Royce has announced its intention to launch a two-door coupĂŠ model, based on the Phantom, in the summer. Further into the future a new RollsRoyce model series, to sit alongside the Phantom models, will be launched in 2010, currently named RR4. III.
Rolls-Royce is meant to appeal to a select few individuals who happen to enjoy a lifestyle commensurate with their stratospheric levels of net worth. John Del Tatto, a sales professional at Manhattan Motorcars, Inc., says the Rolls-Royce buyer falls into one of two groups: Old Money or New Money. The old money buyer wants an heirloom that he or she can pass down through the generations. The new money buyer, on the other hand, is looking for instant recognition. Rolls-Royce buyers are almost all self-employed, heirs to large fortunes, royalty or entrepreneurs. The person Rolls-Royce describes as its target customer is someone who has three, four or five homes; a net worth of around $30 million; and around six other exotic, collectable or ultra-luxury cars. These customers would see the companyâ€™s base price of almost half a million dollars as, simply, membership dues in a very special automotive club. A club Cap Gemini estimates numbers about 85,000 worldwide. The brand caters to impulse buyers who charge a motorcar on a credit card and others who spend time thinking about what they want, ordering special features and waiting for delivery. The gestation period for a final sale can then be anywhere from two hours to years. IV.
Images and Associations
Trademarks, Taglines & Slogan (See Appendix A & B for historical trademarks and advertisements)
“The Best Car in the World” "Trusted to Deliver Excellence" “Design Without Compromise” “At 60 miles an hour the loudest noise in this new Rolls-Royce comes from the electric clock.” – David Ogilvy Pop Culture (See Appendix C for more examples of pop culture) Rolls-Royces have often been used in popular culture as a stereotype of wealthy people, particularly millionaires. Examples include the one driven by the eccentric millionaire in the film, City Lights (1931), starring Charlie Chaplin. Other examples include: Kraft Foods Poupon's pompous Rolls-Royce rider Jay-Z reportedly bought his pop-superstar girlfriend, Beyoncé, a 1959 Rolls-Royce convertible, said to be worth $1 million, for her 25th birthday. Suspender Love by Scorpions; Chorus: Give me the long faced girl on the magazine; Show me the white Rolls-Royce in the rain Sean "Diddy" Combs has the limited-edition Rolls-Royce Phantom estimated to cost $370,000. Nicknames: Rolls; Roller Rolls-Royce Clubs Clubs open membership to anyone with a genuine interest in Rolls-Royce and Bentley cars, whether owners or not. In addition, the clubs have a justifiable reputation for friendliness and informality. The Rolls-Royce Owners Club (1951, U.S.) and Rolls-Royce Enthusiasts Club (1957, U.K.) are the oldest and largest organizations with local clubs around the world. V.
Brand Positioning The Household Name for Over-The-Top Automobile Luxury Core competency: Outstanding engineering, quality, and reliability
The company's founders wanted to build cars that would not only set speed and endurance records, but also so quiet you would not hear them coming. Beginning with the 1907 Rolls-Royce Silver Ghost, the company has had a tradition of naming vehicles for silent things: Ghosts, Wraiths, Spirits, Shadows, Clouds and Phantoms. It is obvious Rolls & Royce understood the importance of vertical differentiation even before it was termed. The obsession with silence continues today: at slow speeds, the Phantom's exhaust gases are sent through a longer route than they would be at high speeds, a process which deadens sound while the Phantom is driving in a city or other environment at "parade speeds." 3
Through strategic use of “family names”, it further enhances associations with the RollsRoyce brand. It also aids the sales process by supporting the corporate objective, “design without compromise.” VI.
Emotional Rewards & Owner Experiences
There is simply no sneaking around in a Phantom. As you drive down the street you can see camera phones tracking your every move. If you treasure anonymity, this is not the car for you. - Bob Austin, Rolls-Royce spokesman Purchasing a Rolls-Royce is an exceptional experience. The cars indulge and delight owners, passengers, and passersby alike with their unique blend of opulence, refinement, dynamism combined with the finest materials and hand-craftsmanship. Therefore, it is important to note that for most brands customers are more likely to share negative perceptions of the company than offer accolades. Rolls-Royce is the exception to the rule. Before the new Phantom was launched, Rolls-Royce had the image of a car for middle-aged men, but the Phantom is unique: it has both faces old and young. – Nigo, Japanese fashion designer It doesn't get much more stately, opulent and luxurious than a Rolls-Royce. For decades, the marque has set a standard that other luxury carmakers have aspired to reach. – Edmunds.com We had it personalised by including a number of additional bespoke details. I think owning a car such as the Phantom is tantamount to possessing a rare art masterpiece; it is something that will remain distinguished and valuable for all time. - Sheikh Jaber Al-Abdullah Al-Jaber Al-Sabah, a member of Kuwait's ruling family Actually a fabulous car…I have one on order, have driven the Drophead and the Phantom, and both are amazing. The quality is tops. – RRDrophead (Edmunds.com RR Discussion Forum) Of course, nothing is ever completely perfect. I just don't get it. I don't get how anyone could find that car attractive. It is truly hideous to my eyes. – John Marco (Edmunds.com RR Discussion Forum) …excellence had to overcome a lack of the mechanically adventuresome, as a Rolls-Royce came to lack the technological sophistication of far cheaper German sedans. – Daniel Pund, Edmunds Sr. Editor speaking of the older Rolls-Royce models
Reputation Values The hydraulic tappets are assembled while immersed in a tank of paraffin to prevent minute particles of dust from settling on the delicate working surfaces before being matched to tolerances of 10,000th of an inch. – London Times Advertisement Rolls-Royce has prospered for more than 100 years because of its attention to details. Each car has a history book created as it is being assembled. The person responsible signs for every major assembly, test and inspection. Once bought it will bear the name of the owner, and is a complete record of every stage of the manufacture of the Rolls-Royce Relationship Values Rolls-Royce is one of the few brand that does not require ownership for one to feel passionately about the brand and what it represents. The tale of John Lennon and the old woman is one example that demonstrates this point. Shortly after John Lennon purchased a Phantom V in 1965, he became bored with the matte black finished and had it repainted. Lennon’s newly painted psychedelic car drew some public outrage when an old woman, in London’s downtown, attacked the car using her umbrella while yelling: "You swine, you swine! How dare you do this to a Rolls-Royce." Obviously, the Rolls-Royce is passionately regarded in England as one of the many symbols of British dignity!
Experiential Values Among the world's most exclusive automakers, two brands tower above the others: Ferrari for performance, and Rolls-Royce for comfort. The Phantom has succeeded in its mission to make sure Rolls-Royce remains the household name for over-the-top automotive luxury. The car, in fact, borders on the sinful and decadent.
Symbolic Values Rolls-Royce in itself is the ultimate icon representing a person’s status; however, there are two identifiable features that make a Rolls-Royce a Rolls. "The Spirit of Ecstasy," designed by Charles Robinson Sykes, most aptly expresses the sensation of driving a Rolls-Royce car. She has adorned the radiators of Rolls-Royce motorcars since 1911 and is certainly the most attractive and best-known motorcar mascot in the world. The Rolls-Royce radiator grille is made entirely by hand and eye - no measuring instruments are used. It takes one man, one day to make a Rolls Royce radiator, and then five hours are spent polishing it. VIII.
From the Outside Looking In: The Rolls-Royce Brand Story
Normally I would have worn a t-shirt and jeans to run errands on a Saturday. Instead I carefully applied make-up and fussed with my hair prior to putting on a classic Chanel ensemble complete with designer pumps before heading to the Rolls-Royce showroom. It may seem a little over the top, but ones desire to own a Rolls-Royce can elevate a lifestyle. Perfection is the only accepted standard at Rolls-Royce. Out of respect for the brand, I wanted my appearance to communicate a similar message. I was greeted upon arrival by Janie, the receptionist, who asked me that although I could look at the Porsche, Lamborghini, etc. showrooms alone, could I wait for a sales professional to escort me into the closed off and separate area that housed Rolls-Royce? Quickly unenthused about cars that could never pass the standards set by Rolls, I soon opted for the seating area. “No,” I heard Janie tell some high school aged boys. “No celebrities have come by today,” drowning the hopes of budding celebrity spotters. Thinking about the wealth that has walked these rooms, I began imagining life as an owner of a Rolls. Of course, any high profile Rolls-Royce owner will need a driver. Lucky for me since 1922 Rolls-Royce has run a chauffeur’s training course at its School of Instruction in Crewe, Cheshire. The fact it is still going today is testimony to the quality and professionalism of the course. Not to mention the valuable service it provides to owners worldwide as drivers are assessed on etiquette, car care, maintenance, maneuverability, skid control and formal driving. “Ms. Marbury,” said a refined and immaculately dressed sales professional. “I was told you would like to view the Roll-Royces?” Once around the corner and catching a full view of the coveted Phantom & Phantom DHC, it really hit home how opulence with refinement was, and still is, the defining criterion of the marque. From the hand-cut and handassembled signature grill, detailed to exacting tolerances and signed by its craftsman, to the iconic "Flying Lady" mascot. Rolls-Royce spares no expense when it comes to quality.
Nervously, I climbed into the Phantom only to have my aching, heeled feet massaged by its thick, sheepskin floor mats. This is when the Rolls-Royce experience of total pampering begins. It seems as if the entire automobile was made with me in mind. The seats were a joy to perceive as with each encounter they gently cupped and supported my lower back with the care of loving partner. No wonder they are eagerly purchased by royalty across the globe as coach built versions of these one-off, hand-built luxury automobiles. In fact -- at the risk of sounding melodramatic -- I felt a bit empty inside after exiting the Rolls-Royce, knowing that it would be unlikely to find myself at the helm of another car that will spoil me as much. IX.
Articles Gelinas, Gabriel. You Definitely Have Arrived. Canadian Underwriter. Don Mills: Fall 2007. pg. 45, 1 pgs Halliday, Jean. Ultra Luxury Cars Avoid Traditional Marketing Path. Advertising Age. (Midwest region edition). Chicago: Apr 27, 1998. Vol. 69, Iss. 17; pg. 27, 1 pgs Hoy, Peter. Hip-Hop Hot Rods. Forbes.com (2007) Katz, Alan. Posh Cars Pile Up As Demands Drops. Business Report. (2004) Lienert, Dan. Driving the New Rolls-Royce Phantom. Forbes.com (2004) Lienert, Dan. What Your Car Says About You. Forbes.com (2007) No Author Given. Building and Managing a Brand. Chilli Breeze. Pancevski, Bojan. Super-rich make marque on Rolls Royce. The Telegraph. (Dec 30, 2007) REED, John. Rolls works hard on its soft sell MARKETING. Financial Times. London (UK): Feb 6, 2007. pg. 10 Books Clifton, Simmons, et al. Brands and Branding. The Economist. (2003) Rolls-Royce Dealership Manhattanmotorcars. New York, New York (Visited 19 January 2008) Websites Rolls-Royce motorcars – www.rolls Royce motorcars .com Rolls-Royce Enthusiasts’ Club - www.rrec.co.uk/website/index.asp Rolls-Royce Owners’ Club - www.rroc.org/ Proper Motor Car – www.propermotorcar.com Wikipedia. – www.wikipedia.com
Appendix A â€“ Historical Trademarks
Appendix B â€“ Advertising 8
Appendix C – Pop Culture
“Of course I didn’t just marry you for your money dear. There was also your house in France, the Rolls Royce, your mother’s diamonds…”
Pop-Junkie.com: Pop-Singer Ciara is chauffeured during her 22nd birthday.
Clothing â€“ 1980s T-Shirt
Rolls-Royce provided a new Phantom for MTV European Music Awards and invited artists to autograph the back seat. The seat was removed and turned into a sofa that was later sold for $25,000. The money was donated to the Staying Alive Foundation, a global organization dedicated to preventing the spread of HIV and AIDS.
This is a very rare 2-Stamp set of a classic automobile from the Auto 100 Stamp Set commemorating the first 100 years in the History of the Automobile (1886 to 1986).
Document created January 2008 as part of the VCU Brandcenter curriculum.