HNI sellingThe Rolls Royce case

What is HNI

According to World’s Wealth Report 2009 :

HNIs are those who hold at least US$1 million in financial assets with both excluding collectibles, consumables, consumer durables and primary

residences.

Reports say...

• 2008, worldwide 8.6 million HNIs, a declined 14.9% from 2007

• HNI wealth worldwide, US $32.8 trillion, a 19.5% decrease from 2007

• Ultra-HNIs losing 24.6% in population and 23.9% in accumulated wealth

The report revised its 2007 projections that HNI financial wealth would reach US$59.1 trillion by 2012 and revised this downward to a 2013 HNWI wealth valued at $48.5 trillion advancing at an annual rate of 8.1%.

Segments...

Category Name Income Population

Ultra-HNW in excess of US$30 million 10500 Households

Super HNW between US$10 and $30 million 42000 households

HNI between US$1 million and $10 million 320000 households

Super affluent between US$125,000 and $1 million 350000 household

Mass affluent between US$25,000 and $125,000 1.8 mn households

Mass market between US$5,000 and $25,000 39 mn households

Growth in segments

The Past and The Gift

History

Founded by Henry Royce and Charles Stewart Rolls in 1904.

Also manufactured jet engines Rolls Royce and Bentley brands Bought by Vickers in 1980 Sold it to Volkswagen and BMW Bentley went to VW and Rolls Royce to BMW

Rolls Royce and India

The Maharajas from pre-independence days Imported by the Indian rich Re-entered the Indian market in 2005 Costing between 2 to 4 crores

It is a niche segment

“You can’t go by numbers. Probably, we may maintain the same number this year” - Rolls-Royce dealer(Mumbai)

Year Sales

2005 5

2006 7

2007 12

2008 14

Marketing Approach

NO co-branding endeavors Dealers are chosen based on their common

interests with customers Customers are invited to exclusive dinners Buyers receive personalized letter from the

CEO Focus on repeated purchase

Customer loyalty rate

“nearly a third of business comes from repeat customers”

Car gets a 1 crore makeover

Dilip Chabria re-designed a RR Silver Coupe

Thank you