Marketing Research Report for Aston Martin

Ali Ahmad
Graduate Student
Department of Political Science

October 2018

Shahjalal University of Science & Technology, Sylhet

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Abstract

Aston Martin is currently reckoned as one of the key players in the arena of luxury sports car
brand. The current study predominantly based on secondary data and it principally shed light on
producing marketing research report for Aston Martin. Both qualitative and quantitative data
have been used here to explore the current market circumstances of the company. The study also
focuses on predicting the upcoming marketing tendency as well as competitor’s position in the
market. Subsequently, it explains the difficulties and opportunities of Aston Martin in the market
by investigating the information and data using PESTEL and Porter’s 5 forces. At the very end,
some imperative suggestions have been offered to become a top brand in the sphere of luxury
sports cars and grand tourers.

Introduction

Aston Martin is a renowned automotive brand originated back in 1913. Two British citizens
named Lionel Martin and Robert Bamford was the co-founders of this well-known luxurious car
brand. The head office of Aston Martin located in Warwickshire, England. Aston Martin cars
became a part of British culture soon after using its DB5 model car in a famous movie called
‘Goldfinger’ in 1964 by the fictional character James Bond. Since 1982, this British
manufacturer of luxury sports cars has become a Royal Warrant as a supplier of motorcars to the
Prince of Wales. It turns out to be an international automobile brand with more than 150 car
dealerships in over 50 countries on 6 continents. Aston Martin automobiles are exclusively
produced for the selected consumers that demand super speed at the back of the wheel. They are

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the elite customer and love to consume luxury products in order to maintain a class in the
society. This luxury brand merges all of these components flawlessly and sells the product at a
highly expensive price. Through the affiliation with the James Bond franchise, Aston Martin
maintains a strong pop culture. Therefore, a number of cars produced by Aston Martin
automobile brand have been featured in several James Bond films. Aston Martin shares a huge
market across the world and roughly every people want to have that brand even once in a
lifetime. They have recruited around 1850 staffs all over the world.

The current condition of Aston Martin in the market:

Aston Martin is a British origin automobile manufacturing company principally manufacturing

of luxury sports vehicles and grand tourers across the world. Currently, 1,850 employees are
working in Aston Martin. Presently, Aston Martin is manufacturing customized sports cars for
the interested customers. The staffs are recruited from different countries around the world.

The revenue of Aston Martin was 593.5 million pounds in 2017. Aston Martin witnessed the top
percentage augmentation in its record in 2017. In accordance with Brand Finance, a top
independent business assessment and policy consultancy, in 2018, Aston Martin has been placed
as the world’s fastest-growing brand of the automotive industry. The current competitors of
Aston Martin are:

 Mercedes-Benz
 Ferrari
 Automobili Lamborghini
 Maserati
 McLaren
 Bentley Motors
 Audi
 BMW Group
 Rolls Royce Motor Cars
 Porsche

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The current models of Aston Martin products include:

Models of vehicles Descriptions

Aston Martin Vanquish S Volante It is a grand tourer launched at Geneva Motor

Show in 2001.
Aston Martin Vulcan Aston Martin Vulcan is a two-door lightweight
track high-performance car. It was also
introduced at Geneva Motor Show in the year
2015. Aston Martin Vulcan is an atypical
product. The company produced merely 24
vehicles. The price of each vehicle is at $2.3
million.

Aston Martin V8 & V12 Vantage Aston Martin V8 & V12 Vantage is the leanest
as well as agilest vehicles of Aston Martin’s
product collections.
Aston Martin Rapide S Aston Martin Rapide introduced as a model of
car in the year 2006. Subsequently, it was
launched as a sports car in 2010. The updated
model has salon four-seater as well as four-
door high-performance.

Upcoming models of Aston Martin

Models Reports Price

Aston Martin V8 Vantage It is a two-seater sports car US$149,995

produced as an heir to the

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 earlier model which had been
in manufacture for twelve
years. Vantage is an
electronically controlled car
which produces around the
similar fresh bonded-
aluminium stage like the
DB11.

Aston Martin Valkyrie Valkyrie is a limited-edition US$3.2 million

vehicle jointly produced by
Red Bull Racing, Aston
Martin, and other producers. It
is regarded as one of the
fastest sports cars in the world.

The Competitive position of Aston Martin Models in the Market

Aston Martin predominantly concentrated on producing luxury cars. Therefore, it has very few
competitors in the market compared to other company. Competition in the HLS (Hue, Lightness,
and Saturation) car principally based upon the power of the behind of wheels, uniqueness of the
brand, innovation and performance, captivating styles and constant renewal offerings to meet the
demand of customers. The below table shows some examples of existing HLS models in each of
the model categorization and manufacturer types:

Categorization of vehicles Model s of Aston Martin Models of Selected

Competitor

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Hyper-car  Aston Martin Valkyrie  Ferrari LaFerrari
 Aston Martin Vulcan Aperta
 Vanquish Zagato
Supercar  Vanquish S  Lamborghini
Aventador
 Ferrari F12
 Ferrari GTC4 Lusso

Sports  V12 Vantage S  Lamborghini Huracan

 Vantage GT12  McLaren 650S
 Vantage GT8  Porsche 911 Turbo
 V8 Vantage S  Ferrari 488

Sports Grand Tourer  Vanquish  Ferrari California T

 DB9 GT  Bentley Continental
 DB11 GT
 Rolls-Royce Wraith
 Mercedes S65 Coupe

4 Door Coupe  Rapide S  Bentley Flying Spur

 Panamera Turbo/
Turbo S
 BMW M6 Coupe
Porsche

Through the reputation of elitism and paucity, elite luxury brands separate themselves from the
huge automotive company. These are ultimately driven by the personalization, limited-edition of
product, high performance, captivating styles, luxury and innovation which allow the selected
luxury brands to make the mark in the arena of the automotive industry. High-net-worth

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individuals are the ultimate consumer of the luxury products. Having considered that issue,
Aston Martin developed a globally acclaimed brand in the sphere of the automotive industry.
The company focuses exclusively on the distinct design of vehicles, luxury, innovation and high
performance for the particular tastes as well as individual fondness of High-net-worth individuals
(HNWIs).

Marketing Strategy of Aston Martin:

The sales team of the company placed its products at the appropriate place. The team also
segments the goods and services in an efficient manner. The sales management of Aston Martin
carries out a video march across the particular city to display its new versions of products. The
sales team also confers ad in new films. The company also announces additional benefits in the
car. The company also bestows its time and energy to have a profound perception of its
competitors’ business strategy.

Through situational analysis, the sales team of Aston Martin has been proficient to know its
competitor deeply. The analysis allows the company to make out its prospective clients,
shareholders and also assist them to realize the gap between what is being bestowed to them by
the company and what the clients’ actual demands. Through SWOT analysis, Aston Martin tries
to understand its strength of the company. Along with the strong side, it also gives its effort to
know the weakness of the company. SWOT analysis also allows the company to analyze the
opportunities and threats of the company which is crucial for making the policy decision for the
company.

Aston Martin also applies the strategy of personalization in a luxury industry. They produce
around 7,000 cars last year that are the same as Ferrari, a leading brand of luxury sports car. In
Aston Martin, there is merely a single robot factory named James Bonder. This luxury sports car
company is still self-sufficient in producing luxury vehicles for highly earned individuals. In the
history of 102 years, Aston Martin has produced 80,000 cars. Interestingly enough, around 95%
of these cars are still prevailed.

Aston Martin uses customer relationship management (CRM) strategy in order to interact with
the customers on a one-to-one way. It facilitates the company to meet organizational as well as

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customer goals. Besides, the company designated the content-oriented storytelling technique to
make on the legacy of the brand, with possession along with history of personal model adding
together their value and status. Aston Martin’s partnership with James Bond is certainly a
principal basis of its branding. Making 10 units of the DB10 for the new movie is such a story
impossible to the most luxury brands in the contemporary world.

The following are the marketing trend of Aston Martin and traditional luxury brands:

Trend of Aston Martin Trend of Traditional Luxury Brands

'Omotenashi'; sophisticated customer

relationship management (CRM) platform; Valued: treated as an individual.
individual touch.

unique series vehicles Unique products for the very few

Q by Aston Martin; bespoke product

Product individualization
specification.

Aston Martin Lifestyle; events; access to the

Experiences outside the product.
company.

Affiliation with corresponding clothing brands,

Amicable associations with other sectors.
hotels, airlines.

Strategy of briefing the customers

Aston Martin’s strategy of briefing the clients is very distinct. It follows the below approaches to
brief the customer:

 Shedding light on appropriate audience

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  Avoiding the largest audience
 Sharing the passionate personal story of using the car
 Making a fair distance to make the desirability of having the product

Marketing Mix of Aston Martin

The marketing mix is one of the significant terms of marketing. It denotes the 4 inclusive stages
of marketing assessment.( McCarthy, Jerome E. (1964) These include: product, price,
promotion, and place. Marketing mix facilitates the company to review and define the chief
issues that influence the operational tactics of the market. Marketing mix is a set of tools that
company uses to influence its customers to buy its products. Marketing mix assists the company
to make strategic decisions while launching new products in the market. It also helps the
company to produce tactical decision when modifying existing products.

Product

Marketing
Price Mix Place

Promotion

Figure: Marketing mix

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Aston Martin analyses its brands through 4ps (Product, Price, Place, Promotion). With
application of 4Ps Aston Martin determines its marketing strategy. The following are the
Marketing Mix of Aston Martin.

Product in the Marketing mix of Aston Martin

Aston Martin is a name of a luxury cars brand mainly popular for its distinct styles and high
performance. It allows the consumers to purchase a fashionable and luxury sports vehicles in the
automobile sector. Aston Martin enables its clients to buy highly customizable as well as
exclusive sports products in the automobile industry. Customers who really love the highly
powerful wheels of the vehicles, Aston Martin’s sports vehicles are the ultimate choice for them.
Using Aston Martin’s products is all about prestige and tradition. Another key thing for this
brand is that it launches innovative and sophisticated products in every few years.

Current models of this brand include:

Current models of Aston Features Price

Martin

Aston Martin Vulcan Aston Martin Vulcan came up Starts around $2,300,000
in 2015 at Geneva Motor
Show. Only 24 cars of this
model manufactured and
therefore, Aston Martin
Vulcan is a limited products.

Aston Martin DB11 Aston Martin DB11 launched Sstarts around $250,000
in 2016 at the Geneva Motor
Show. It was introduced as a
replacement of DB9

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Aston Martin Rapide S It is a mid-ranged high From $382110 to $399950
performance launched in
2010

Aston Martin Vanquish Aston Martin Vanquish Starts around $316,000.

debuted in 2001 with
improved aerodynamics and
powerful engine.

Aston Martin V8 & V12 It most responsive vehicles of start at$149,995

Vantage Aston Martin’s product
collections.

Price in the Marketing mix of Aston Martin

Aston Martin’s products mainly manufactured for serving highly-earned consumers. The
company followed premium pricing policy in its marketing approach. Therefore, the company
does not produce cars at lower price. Aston Martin’s car is a symbol of elitism and highly-paid
personnel of renowned organizations purchase the products of this company.

Place in the Marketing mix of Aston Martin

Aston Martin showrooms are situated in the rich place where merely selected consumers to visit
the shop. More to the point, sales areas are selected in a way that the consumer has to make some
endeavors to purchase one, creating an expression that you will be the happiest person after
having one product. When a prospective consumer arrives in the sales area, stores staffs make
sure that the customer has a complete and comfortable experience.

Promotion in the Marketing mix of Aston Martin

Aston Martin is a globally recognized and highly acclaimed brand for automotive industry. They
use their recognition to promote the brand. Apart from that, Aston Martin cars attend various

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racing competition and gain award frequently which they use to attract the consumers. They also
promote their goods and services over the established print media as well as trendy magazines.
Aston Martin has a usual presence in online especially in social media. They share their
product’s details via i.e. Facebook, Twiter, and Instagram on regular basis. Recently, Aston
Martin adopts a new marketing strategy to promote its brand via billboards. Aston Martin also
promotes its products on FM and Radio.

A variety of Aston Martin’s cars have been featured in James Bond movies as the company has
collaboration with them. The company has been receiver of a number of globally highly praised
awards. In the history of Aston Martin’s products DB11 was the champion of Most Beautiful Car
the World in 2017at the prestigious Golden Steering Wheel Awards.

PESTEL analysis of Aston Martin

PESTEL analysis is a concept in marketing principles which use as an instrument of companies

in order to know the situation of the market before launching a new products or services.
PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal factors.
PESTEL analysis allows the company to have an overall perception while pondering over
implementing a new plan. It helps the company to research the concern market before making
any important decision.

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 Political
Factors

Economic
Leagal Factors
Factors

PESTEL Analysis

Environmental
Social Factors
Factors

Technological
Factors

Figure: PESTEL analysis

There are couples of issues need to take into account while carrying out this analysis. They are:

1. Will the political situation affect the company?

2. How the current economic indicators are?
3. How much influence does the society has in the market and what are its aspects?
4. What are the prospective technological innovations in the market and how much will it
affect the market?
5. What are environmental issues in the industry?

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 6. Will the existing laws be an impediment to launch a new product and is there any
possibility to make any law that may affect the company?

The following are the PESTEL analysis of Aston Martin

Political Factors

The world is confronting a plethora of troubles i.e. turbulent political condition, civil war,
abnormal government change. It may affect the Aston Martin to reach its products every corner
of the world. Therefore, the behaviour international market is not favourable to augment its
production. The company may penetrate in the emerging countries having taken the political
scenario into account.

Economic Factors:

The current global growth is stagnant and downward trend. Therefore, Aston Martin should think
over the principal economic factors like unemployment rates, gross domestic product, exchange
rate, interest rates etc. Through analyzing these factors, Aston Martin can make its strategic
decisions. Indeed, this factors help to have deep economic conditions of a certain country. So, by
looking into these economic factors, the company can even change its marketing strategy as well.

Social Factors:

Truth to be told, business originates and develops in society. So, the social factors i.e heritage,
customs, standard of living, education, religious spirit, income, awareness etc. Play a pivotal role
in determining the attitude of a person in large-scale. Therefore, Aston Martin usually makes the
marketing policy taking these factors into consideration. In order to make the business
sustainable and welcoming to the society every company should admire and promote the local
culture. Aston Martin sincerely deals with issue when it comes to tradition and customs of the
country they deal in.

Technological Factors:

In 21st century, technology plays a significant part in the arena of business. From the very
commencement of its journey Aston Martin emphasized on the innovation. Therefore, they took

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the assist from the advanced technology to make its product sophisticated and sustainable. More
to the point, consumers have the special attention to the application of new technology. Aston
Martin’d every products has the space of applying new technology considering the constant
demand of customers. Besides, Aston Martin takes the full advantage technology to promote its
products around the world. Still the Aston Martin should consider the below issues:

 Latest technical advancements of the competitors of Aston Martins

 Increasing rate of auto manufactures
 Innovative use of technology for products promotion by rivalry company

Environmental Factors:

Aston Martin carefully considers the ecological factors while launching any products. Because of
the 21st century customers are conscious about the environmental issue. Aston Martin vigilantly
assesses the ecological standards that are necessary to penetrate in that market. Aston should
follow the below ecological factors while introducing any products in the market:

 Legal issues concerning ecology

 Outlook of customers towards ecological products
 Weather
 Recycling
 Climate change
 Endangered living thing

Legal Factors:

The consideration of legal factors is very crucial for every company. Aston Martin gives the
particular priority on legal requirements. While inflowing a fresh market Aston Martin considers
the below legal issues:

 Intellectual property rights

 Labour law
 Safety and health law
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  Discrimination law
 Consumers protection law

The application Porter's Five Forces Model in Aston Martin

Porter's Five Forces Model introduced by a Harvard Professor named Michael E. Porter.The
model was published back in 1979 in Harvard Business Review. (Michael E. Porter:1979)

Porter's Five Forces Model is device that facilitates the company to analyze the current
competitors. It is very essential for a company to take the strategic decision. Aston Martin
emphasizes on Porter's Five Forces Model With an intention of attaining competitive advantage:

Threat of
substitute
products

Bargaining Bargaining
Rivalry Among
Power of Power of
Existing
suppliers buyers
competitors

Threat of
new
entrants

Figure: Porter's Five Forces Model

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The following are the use Porter's Five Forces Model in Aston Martin:

Bargaining power of buyers:

In accordance with the model buyers are the price sensitive. They always try to buy the best
product in comparatively less price as possible. It pressurize on Aston Martin. Therefore, they
consider the power of buyers while launching any products. Besides, as there are a considerable
numbers of competitors in the automotive industry, the customers have a good flow of
information regarding any products. It helps them to be powerful bargainers. The below are the
ways for Aston Martin to deal with the bargaining power of buyers:

 Through launching innovative products

 Producing economically viable products
 Attaining capacities and investing more on research and development.

Bargaining power of Suppliers:

All of the automotive companies are buying raw products from various suppliers. Therefore, the
dominant position of suppliers are the impediment of producing cost efficient Aston Martin’s
products. The below are the ways for Aston Martin to face the bargaining power of suppliers:

 Connecting with numerous sources of suppliers

 Creating a separate department to supply the raw material for Aston Martin
 Making a formal contract with some comfortable suppliers

Rivalry among existing competitors

The intense rivalry with the competitor is not healthy for any company. It reduces the
profitability on the whole. Aston Martin has some intense competitors i.e Ferrari, Automobili,
Lamborghini, Maserati , McLaren, Bentley Motors, Audi, BMW Group , Rolls Royce Motor
Cars, and Porsche etc.

Aston Martin can follow the below strategy to tackle its competitors:

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  Determining its long term strategy
 Making a viable segmentation
 Building cooperative relations with competitors to augment the size of the market.

Threat of substitute products:

The prosperity of a company suffers when the newly introduced products meets the need
of a similar consumers. Over the years, Aston Martin faces the problem immensely. The
company can follow the under strategy to sort out the trouble regarding substitute products of
rivalry competitors:

 Making the company service-friendly so that consumer can become a sustainable client.
 Discovering the ultimate demand of the consumer

Threat of a new entry:

It is true that profitable companies attract the investors to establish new company. The newly
launched company subsequently starts sharing the market. Thus, new entrants of the company
reduce the profitability for other organization in the sector. This problem can be sorted out in
below ways:

 Producing the very distinct product so that customer will have the only way to find the
desirable products.
 Making the products more sustainable compared to Other companies
 Spending a great deal of money in research to develop the quality of the products.

Concluding remarks and policy recommendations:

Aston Martin is in internally renowned sports car brand. It has operations in 6 continents with 50
countries around the world. It follows its marketing approach to determine the strategy of its
clients. This strategy conducts in order to meet the demands of the existing tendency of the

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market. Together with, the company give special attention to satisfy the expectations of
customers. Aston Martin’s sales team applies all the indispensable and basic approaches for its
products. Still, they are confronting plethora of troubles in the market. Aston Martin can take the
below policy recommendations into account to sort out its issues:

Firstly, Aston Martin usually produces luxury items which only purchase by highly-earned
consumers. So, the company should launch some products which can buy the middle-earned
consumers. It will facilitate the company to boost up its profitability.

Secondly, Currently, Aston Martin’s products are available only in handful number of countries.
They can enter into the automotive markets of emerging and developing countries. Southeast and
South Asia can be a convenient option in this regard.

Thirdly, Aston Martin’s repairing service is not available everywhere. Therefore, it takes
couples of month to repair the car which is literally intimidating. The company should work on
this sphere to eliminate the suffering of its consumers.

Fourthly, Aston Martin should increase its investment in research to develop the quality of its
products.

Aston Martin makes luxury products which cannot be used regularly. But they can use their
technical knowledge into making products that will help people in getting better cars. This will
also help them in fighting it off with many mass-market automobile producers around the world

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