jeudi 29 novembre 2012

How can Lamborghini and Rolls-Royce have such different identities?


We mentioned in a previous article the fact that both companies, though part of the same market, have diametrically opposed identities. One just need to take a look at the new Lamborghini Aventador to figure out it is all about being fast, performant and aggressive. It is a pantomime of the so-called “supercar”. However, if one looks at the latest Rolls-Royce Phantom Drophead (but also to all their cars), he will see that the stakes are different here. If it were not for the four wheels and the engine, the Phantom would be closer to a yacht than to the Aventador. The ride of the car will be more comfortable, so will the seats, and the car was not shaped in a wind tunnel to maximize aerodynamic performance, it was shaped to please the human eye.
We reckon that a positioning map placing all the brands on the market we are interested in according to their priorities when designing a car illustrates this difference. Comparing the importance of performance (or comfort) and elegance (or aggressive design) gives a good idea of each brand’s identity. Let’s remind though, that this map does not judge the performance or the elegance of the brand (which may vary depending on the cars), it just measures how much of a priority performance would be over comfort, and elegance over aggression.
This map clearly shows how opposite are the firms from Sant’Agata and Sussex. It may seem odd to say that performance is almost not at all a priority for Rolls Royce when you know that most Rolls Royce are powered by 6.5l or 6.75l V12 engines producing up to 560 BHP[1]. It actually is. But the point is that despite these engines, even the coupé version of the Phantom (the Drophead), weighs 2.6 tons! As James May from Top Gear points out in the video embedded, the chassis is not made from carbon fiber, unlike the Aventador. It is not made to allow insane cornering speeds, but to look beautiful and be as comfortable as possible to drive. The identity of a brand also lies in its design. The rims or the radiator grill always are very similar on a Rolls-Royce. So is the general shape of the cars, as well as the mascot. A brand new Rolls Royce surprisingly looks like any of its 100 years old ancestor.

Rolls Royce Phantom Drophead Top Gear test

Take Lamborghini on the other hand. All Lamborghinis have looked very aggressive in their time, though the Miura and the Aventador barely look alike. When you see one of these, you are more impressed or surprised, than actually struck by its beauty. Mechanically, it is pretty much the same. The 6.5l V12 delivering 700 BHP is there to catapult the car from one corner to another with brutal power. So is the 4 wheel-drive system. So is the f1-derived suspension technology. Everything on a nowadays Lamborghini is made to make it as quick as possible around a race track. Just like a race car.
The identity of a brand does not lie in the question “How do they make a car?” Lamborghini and Rolls-Royce both use expensive and exotic materials, in state of the art factories. It does not either lie in the question “What do they do?” They both make cars that make millions of boys (young or not) dream around the world. The identity is defined by the question why? Lamborghini builds cars to make the customer feel the thrill racing drivers feel. Rolls Royce wants to treat them as if they were part of the Royal Family.
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mercredi 28 novembre 2012

What is a luxury car for a human being?


     We should start answering this question by a wider one: what is a car for a human being?
     Cars are considered as one of the major technological inventions. They are part of our occidental way of life: in France, 81.7% of families possess car and 34.5% possess 2 or more cars (Insee 2011); in the USA, there is around 300 million cars (US Bureau of Transit Statistics for 2004 : 250 million registered cars with approximately 16 million new car sold each year). Of course, a car is a mean to go from one point to another. But is not it more than that? Could we really compare –apart from the technological aspect– a car to a bike or a city bus? What is really our car to us?
     Psychologists agree on the fact that a car is often a projection of ourselves. Indeed, people really have a special relationship to their car compared to other objects: they drive it mostly every day, control it, take care of it… Buying a first car is also an important step in someone’s life, not only for its cost, but because it represent his independence, his ability to move faster by himself.  
     Buying a car is a very involving process because it is an exceptional purchase (the average lifetime of a car is 13 years1) and it requires investments due to its cost. Customers make careful choices comparing brands, performance, equipment, and prices and thus create a special relation to their car once it is bought: they chose it carefully; it represents them in a way. 

     Regarding the luxury car industry, the purchase process is quite the same: it is highly involving because the price of this kind of goods (as expensive as houses) and it is still an unusual purchase. We will develop in another article the importance of brand identity in this particular purchase process, yet we can definitely say that customers recognize themselves in the luxury car that they are buying.
     Moreover, this industry sells performance, exceptional design and material, high technical abilities but above all, it sells dream. Through advertising and communication, history and traditions, luxury cars have become the product you want to buy “when you are rich”. Few cannot say that they did not imagine what would be their car in this situation. Realizing this dream is satisfying your ego; it is also showing the world your premium taste in cars and expresses the social category you belong to. 
     Considering the former elements, customers have a strong and long lasting emotional relationship to their luxury car.  

1http://temis.documentation.equipement.gouv.fr/documents/Temis/0037/Temis-0037871/NS_133_2.pdf


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The luxury car market


As explained in the previous article, we are going to focus on two brands with very much opposed approach to making some of the world’s finest cars: Lamborghini and Rolls-Royce. Both belong to a whole market we will consider as the luxury car market. The two brands compete on this market with prestigious names such as Ferrari, Porsche, Aston Martin, McLaren or Bentley.
This market, just like every other, has its leaders, performing consistently through peaceful and crisis times; and its environment sensitive brands. Rolls-Royce selling performance is at the moment excellent, despite the economic turmoil since 2008, setting its all-time sales record in 2011 with 3,538 vehicles sold[1]. This may sound like a small number, but let’s keep in mind that the prices start at nearly $400,000[2]!

The latest Rolls Royce Phantom

On the other hand, Lamborghini is recovering from a couple of years of decreasing sales. In 2008, 2,430 were sold[3], but only 1,515 in 2009[4] and 1,302 in 2010[5]; whereas 1,602 vehicles were sold in 2011[6].Lamborghinis are actually cheaper (if such a word can be associated to the Sant’Agata’s Brand) than the Rolls-Royce. A standard rear-wheel drive Gallardo can be bought for less than $200,000.

The Lamborghini Gallardo LP-570
                As we mentioned, Lamborghini and Rolls-Royce each have their own approach, range, and therefore identity. So their competitors are not necessarily the same as they operate on different segments of this market. Lamborghini, like Ferrari or Porsche is very much about sportiness, performance and passion. These cars are usually referred as “supercars” because of their performance. Rolls-Royce however, competes with Maybach or Bentley in the making of elegant, comfortable and luxurious cars.
                Another interesting difference is that Lamborghini, Ferrari and Porsche are directly competing with very similar car layouts, performance and pricing; whereas Rolls-Royce’s closest competitor identity wise (Maybach) will disappear in 2013, replaced by the S-Class range of Mercedes-Benz in the Daimler AG range as Maybach’s sales were insufficient over the last decade[7]. Bentley however is showing pretty strongly over the last few years[8], even though, some of Bentley’s cars (as the Continental GT line) are not competing directly with Rolls-Royce’s.

The Bentley Continental Flying Spur (left) and the Rolls Royce Ghost (right)

                These brands are almost all parts of bigger groups of brands (Ferrari belongs to Fiat, Lamborghini to Audi and therefore to VW, like Porsche, Rolls-Royce is owned by BMW, etc…). So, a lot of care is taken to avoid brands cannibalizing each other. It also impacts the brand identity, but we will address this issue in a further article.
                In a nutshell, this market, though it has its challenges inherent to an economic crisis time, features brands standing very strong. Some actually stand stronger than ever, like Rolls-Royce.





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dimanche 25 novembre 2012

Welcome to our blog!


Here, you will discover the luxury car industry in a marketing brand audit point of view.
We will be treating issues such as what does a luxury car represents for a human being, the way brands on this market differentiate themselves from one another, the kind of relationship that buyers have with these brands, the emotions and personality of these brands, their marketing and communication strategies, the nature of the product and the purchase of such goods…
We will explore this fascinating market and focus on two very different brands belonging to it: the very English one, all about comfort and elegance; as opposed to the very Italian one, all about performance and aggression: Rolls-Royce and Lamborghini.
Have fun!



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