Rolls-Royce is a well-known British luxury car and aero engine manufacturing company that has been in business since 1904. Known for creating some of the best cars and aero engines in the world, Rolls-Royce has made a name for itself as a symbol of quality and exceptional engineering.
The foundation of a Rolls-Royce is luxury and exclusivity. It offers the most renowned and high-quality cars and engines, and it sells those products through a network of luxury dealerships, helping maintain the brand’s image and message. They are based on selling excellence, putting special emphasis on developing memorable client experiences since they understand that their customers aren’t just purchasing automobiles or engines. They are buying a lifestyle and a sense of luxury.
With its focus on the experience of owning a Rolls-Royce, the company is able to justify its high sticker prices and maintain its position as a leader in the luxury market. Rolls-Royce heavily relies on its brand image and reputation when discussing marketing strategies.
The company has a long history of excellence and has built a strong brand that is connected to luxury and superior engineering. Realizing the power of the brand, they strategically built it in their marketing efforts. They have a rich history of pushing the limits of engineering and technology, being at the forefront of innovation in the automotive and aerospace industries, and constantly improving the performance and efficiency of their products.
The thing is, what Rolls Royce does with its cars is much more than a very luxurious engineering. When studying economics and consumer theory, we call a Rolls-Royce a Giffen Good. This means that it is a product whose demand increases as its price increases, which means people buy it for status. Can you stop to imagine how hard it is to create a manufacturing company in which the product you sell gives some kind of power to people? Imagine that the only reason for REALLY rich people to buy one of these cars is so they can show and tell ALL HUMANITY that they have power and loads of money. That’s surreal.
But what makes Rolls-Royce different from a Ferrari, a Bugatti or a Lamborghini? In fact, they are also considered a Giffen Good, but Rolls-Royce reached the top of the graph. Now, Rolls-Royce customers are not rich or millionaire people; unbelievably, they are all BILLIONAIRES. This means that if I’m a billionaire, and I want people to really know I’m a billionaire, not a millionaire, one of the things I should do is buy a Rolls-Royce. What they made was designing an incredible car, which people want to buy to seem superior, and it works. To prove this, reflect: if you ever see a Rolls-Royce on the streets, what’s the first thing you would think about its owner? Do you think the impact would be the same if it was a Ferrari or a Lamborghini?
