Rolls Royce Group Plc case study & analysis with questions

1. Presented By-
Shreyashi - 25
Ojaswi Gupta-08
Sagar Mishra- 18
B2B Technology Marketing
Rolls Royce Group Plc

2.  Rolls Royce
 A business established in 1904 which today designs, manufactures and
distributes power systems for aviation and other industries.
 Rolls-Royce has transformed itself from a loss-making British firm into the
world’s second-biggest maker of large jet engines.
 It has blurred the lines between making things and offering services
 It applies collective learning in the organization, especially how to coordinate
diverse production skills and integrate multiple streams of technologies

3. ROLLS-
ROYCE CARS
TODAY ARE
MANUFACTU
RED BY A
DIVISION OF
BMW
IT PRODUCES
AERO-
ENGINES, AS
WELL AS
POWER
UNITS FOR
USE IN THE
MARINE AND
ENERGY
GENERATION
SECTORS.
OVER 50 PER
CENT OF
ROLLS-
ROYCE
REVENUE IS
GENERATED
FROM AFTER-
MARKET
SERVICES.
THE
AIRLINES
PAY ROLLS-
ROYCE AN
AGREED
COST PER
FLYING
HOUR, AND
IN RETURN
ROLLS-
ROYCE
DELIVERS A
COMPLETE
ENGINE
SUPPORT
SERVICE FOR
THE
LIFETIME OF
THE ENGINE.
IT MAKES
VERY SLIM
PROFIT
MARGINS ON
ENGINE
SALES.
THE REAL
MONEY IS
MADE FROM
THE LONG-
TERM
PARTNERSHI
P WITH THE
AIRLINE
THAT IS
CREATED
THROUGH
THE SALE OF
A SERVICE
CONTRACT.
IT HAS
ESTABLISHE
D A WIDE
GEOGRAPHIC
BASE
INCLUDING
THE
AMERICAS,
ASIA,
AUSTRALIA,
EUROPE, THE
MIDDLE
EAST AND
AFRICA.

5.  Earlier Rolls Royce used the Good dominant logic
in which the value is more on exchange relationship
and less focus paid on value in use.
 The purpose of applying service dominance was
“Value that fits to customer vision”.
 What is service dominant logic?

6. Service dominant logic
● Offering Novelty: Not only by technology
leadership on new products (fuel efficient engines
like open rotor project), but also on new Business
Model (service-based contracts)
● Long term contracts of services
● Provide financial predictability.

7. Long-term partnership with the airline that is created through the sale of a service contract.
Run-time analysis of the aircrafts if there is any technical issue detected to reduce the
operations delay of the airlines.
Airline knows exactly how much to budget for engine maintenance.
Improves the residual value of the engine and allow the airlines to concentrate on its core
business.
A combination of excellence in engineering and manufacturing, excellence in customer service,
and excellence in managing customer relationships
Focus on High-performance product/services markets: where profit margins could be
larger,since customers are less price sensitive when the value proposition is distinctive.
Platform design to capture a broader segment of the market, through small variations on the
product with minimum new development costs
Monitoring of competitors and scanning of new technologies

8. SERVICE MARKETING
TRIANGLE Internal Marketing:
Training and Motivating employees
to serve customer well.
External Marketing:
Normal preparing, pricing,
distributing and promoting services
to the customers.
Interactive Marketing:
Describes the employees skill in
serving the clients.

9.  Rolls Royce can focus on both the importance of
services for its civil and defense aerospace
markets and its programs for these markets
 In Civil and military business they can also
commence with the acquisition of developing
country’s jet industry to expand market
segment. Therefore there are tremendous
opportunities for future business in expanding
consumer markets.

10.  https://www.scribd.com/doc/138184528/Rolls-
Royce-Core-Competencies-and-Innovation-Strategy-
Analysis
 https://www.rolls-royce.com/products-and-
services/civil-aerospace/aftermarket-
services.aspx#section-carestore
 https://www.rolls-royce.com/products-and-
services/civil-aerospace.aspx
 https://www.google.co.in/search?q=service+marketi
ng+triangle