18-12-2014

ASTON
MARTIN

ULTIMATE LUXURY AND POWERFUL

PERFORMANCE

POWER. BEAUTY. SOUL

Marketing I
Group 4:
Olivia Callejo
Albert Osuna
Sergi Flores
Jordi Hurtado
Yannick Busse

INDEX
INDEX ............................................................................................................................ 1
I. EXECUTIVE SUMMARY .............................................................................................. 2
II. COMPANY DESCRIPTION .......................................................................................... 3
III. MICROENVIRONMENT .............................................................................................. 6
A. INTERNAL ANALYSIS ...................................................................................................... 6
1. Typology .................................................................................................................... 6
2. Group Structure ......................................................................................................... 6
3. Mission and values .................................................................................................... 6
4. Marketing mix ........................................................................................................... 8
5. Unit market share.................................................................................................... 10
6. Brand positioning .................................................................................................... 11
7. Policies ..................................................................................................................... 12
8. Competitive advantage ........................................................................................... 13
B. EXTERNAL ANALYSIS.................................................................................................... 14
1. Porters 5 forces analysis ......................................................................................... 14
2. Market and customers ............................................................................................ 15
3. Supplier and interest groups ................................................................................... 15
IV. MACROENVIRONMENT .......................................................................................... 18
A.
B.
C.
D.
E.

DEMOGRAPHIC FACTORS.................................................................................................... 18
SOCIOCULTURAL FACTORS .................................................................................................. 19
ECONOMIC FACTORS ......................................................................................................... 20
POLITICAL AND LEGAL FACTORS ........................................................................................... 21
TECHNOLOGICAL AND ENVIRONMENTAL FACTORS ................................................................... 22

V. SWOT ANALYSIS ..................................................................................................... 24

VI. SUGESTIONS FOR THE FUTURE ................................................................................ 28
VII. CONCLUSIONS ........................................................................................................ 29
APENDIX ...................................................................................................................... 30
BIBLIOGRAPHY............................................................................................................. 46

I.

EXECUTIVE SUMMARY
The very essence of Aston Martin is something you feel each time you look at one

of our cars. It sweeps over you on every unforgettable drive. Powerful, exhilarating and
precise yet timelessly elegant and sophisticated; our cars blend iconic design,
exceptional engineering and unrivalled craftsmanship to create an unforgettable,
emotional experience. Each car is the essence of Power, Beauty and Soul.1
This report provides an analysis and evaluation of Aston Martin. The methods used
include an analysis of the micro and macro environmental factors and from them we
draw a SWOT analysis. From these analyses we get to final conclusion about the new
moves Aston Martin should do to take advantage of new opportunities. We
recommend investing in the production of hybrids and electric cars; the improvement
of the Q service; expansion to emerging countries; and the creation of new internships
programs.

II.

COMPANY DESCRIPTION
Aston Martin Lagonda Limited is a British company of luxury cars. It was founded in

1913 by Lionel Martin (winner of the famous mountain race Aston-Clinton) and Robert
Bamford.
Their first car was designed in 1915 but production couldnt start because of the
outbreak of the Second World War.
In 1922, Bamford & Martin produced cars to compete in the French Grand Prix.
Approximately 55 cars were built for sale in two configurations, long chassis and short
chassis.
The company went bankrupt in 1924 and was bought by Lady Charlwood. The
company failed again in 1925 and the factory closed in 1926, with Lionel Martin
leaving. Later that year, Bill Renwick, Augustus Bertelli and investors, which included
Lady Charnwood, took control of the company. They renamed it Aston Martin Motors.
Between 1926 and 1937 Bertelli was both technical director and designer of all new
Aston Martins, since known as "Bertelli cars". Bertelli was a competent driver keen to
race his cars, one of few owner/manufacturer/drivers.
In 1947, tractor manufacturer David Brown Limited bought the company under the
leadership of managing director Sir David Brown. The company also acquired Lagonda
that year. Both companies shared resources and workshop. The firm became
associated with luxury grand touring cars in the 1950s and 1960s.
With its unusual English style, the company acquired worldwide fame when
providing the automobiles to the James Bonds films.
The Aston Martin company was often financially troubled. In 1972, the firm was
sold to Company Developments. The company was resold in 1975 by its receiver
following a further bankruptcy to North American businessmen Peter Sprague and
George Minden for 1.05 million.

A successful turnaround strategy led to the recruitment of 360 new employees and,
by 1977, a trading profit of 750,000. The new owners pushed the company into
modernizing its line.
Pace and CHI took over as joint 50/50 owners at the beginning of 1981, with
Gauntlett as executive chairman. Gauntlett also led the sales team, and after some
development and publicity when it became the world fastest 4-seater production car,
was able to sell the Aston Martin Lagonda in Oman, Kuwait, and Qatar.
In 1982, Aston Martin was granted a Royal Warrant of Appointment by the Prince of
Wales. The company holds the warrant to this day.
Understanding that it would take some time to develop new Aston Martin products,
they created an engineering service subsidiary to develop automotive products for
other companies. It was decided to use the name of the coach building company
Tickford which Aston Martin had owned since 1955, the name being already associated
with quality cars in the public perception. Pace continued sponsoring racing events,
and now sponsored all Aston Martin Owners Club events. Their car became third in the
Manufacturers Championship in both 1982 and 1983. It also finished seventh in the
1982 24 Hours of Le Mans race. However, sales of production cars were now at an alltime low of 30 cars produced in 1982.
As trading became tighter in the petroleum market, and Aston Martin was requiring
more time and money, Gauntlett agreed to sell Hays/Pace to the Kuwait Investment
Office in September 1983. As Aston Martin required greater investment, he also
agreed to sell his shareholding to American importer and Greek. The deal valued Aston
Martin/AML at 2 million, the year it built its 10,000th car.
Although as a result Aston Martin had to make 60 members of the workforce
redundant, Gauntlett bought a stake in Italian styling house Zagato, and resurrected its
collaboration with Aston Martin.
In 1986, Gauntlett negotiated the return of fictional British secret agent James Bond
to Aston Martin. Cubby Broccoli had chosen to recast the character using actor
Timothy Dalton, in an attempt to re-root the Bond-brand back to a more Sean
Connery-like feel. Gauntlett supplied his personal pre-production Vantage for use in
4

the filming of The Living Daylights, and sold a Volante to Broccoli for use at his home in
America.
The company needed funds to survive in the long term. In May 1987, Walter Hayes,
vice-President of Ford of Europe, saw the potential of the brand and Ford took a
shareholding in September 1987.
Ford placed Aston in the Premier Automotive Group, invested in new
manufacturing and ramped up production. In 1994, Ford opened a new factory at
Banbury Road in Bloxham. In 1995, the company produced a record 700 vehicles. Until
the Ford era, cars had been produced by hand coach building craft methods, such as
the English wheel.
In October 2004, the company set up the dedicated 12,500 square metres Aston
Martin Engine Plant engine production plant within the Ford Germany Niehl, Cologne
plant. With capacity to produce up to 5,000 engines a year by 100 specially trained
personnel. By bringing engine production back to within the company, the promise
was that Aston Martin would be able to produce small runs of higher performance
variants engines.
In 2006, an internal audit led Ford to consider divesting itself of parts of its Premier
Automotive Group. After suggestions of selling Jaguar Cars, Land Rover, or Volvo Cars
were weighed, Ford announced in August 2006 it had offered to sell all or part of Aston
Martin at auction.
In March 2007, a consortium of investors purchased 92% of Aston Martin for 479
million, with Ford retaining a 40 million stake. David Richards became the head of the
company of Aston Martin. In December 2012, the Italian private equity fund Invest
industrial signed a deal to buy 37.5% of Aston Martin, investing 150 million as a
capital increase.2

III.

MICROENVIRONMENT
A. INTERNAL ANALYSIS
1.

Typology

Aston Martin is a British brand that produces various types of luxury handmade
cars, including luxury sports cars and grand tourers. It operates in the high premium or
performance car industry alongside other manufacturers, such as, Porsche, Ferrari or
Corvette.

2.

Group Structure

Aston Martin is a private limited with share Capital Company, its fully owned by
Aston Martin Lagonda Group Ltd with a value of 77,636,250.00 GBP. The Group is form
by a parent company, Aston Martin Lagonda Limited, and 3 subsidiaries: Lagonda
Properties Limited, Aml Overseas Services Limited and Aston Martin Investments
Limited.
Figure 1.
Lagonda
Properties
Limited

Aston
Martin
Lagonda
Limited
Aml
Overseas
Services
Limited

Aston Martin
Investments
Limited

3.

Mission and values

Aston Martin an iconic marque of unrivalled heritage has entered a second

century. With fresh investment, a new Chief Executive Officer and the strongest model
line-up in the company's history we now look to an exciting future.3

The nature of Aston Martins brand, gives a special feeling to their customers when
they decide to drive one of the companys models. An unforgettable sensation of
power, elegance and sophistication that is brought by a vehicle that owns a highly
appealing design combined with a precise and outstanding engineering.
An unrivalled craftsmanship that makes every single vehicle a unique product, is
what makes the difference to Aston Martins customers, and so workers, specially, the
ones involve in the production, are constantly on the spotlight.
Aston Martins commitment to society is simple, to offer world class products and
customer service that build lifetime customer relationships. All the lights are on the
employees strive to deliver complete customer satisfaction in all areas of the business
through passion, continuous innovation and the development and operation of stateof-the-art automotive dealerships.
Aston Martin and its employees are guided every day by a value system that serves
as the foundation to understand their way to operate:

Passion for Excellence: as Aston Martin aims to position itself to the best way
possible all the time.

Customer Focused: The work is carried out to please customers and give them
the greatest satisfaction.

Teamwork: The Companys workforce is concerned about the fact that working
together is what will lead them to the final outcome. They promote an
environment among employees of collaboration and respect.

Integrity: The biggest efforts are devoted to guarantee a professional, ethical,

honest and accountable workforce.

Willingness to Grow: They have always a commitment to continuously

improve and innovate, taking into account the latest trends and the evolution
of technology in the actual societies.

Make a Difference: Aston Martin highlights the issue of supporting and helping
any sort of community they serve.

4.

Marketing mix

Product:
First of all it's important to say that all Aston Martin cars are handmade produced,

which makes more difficult to produce a bigger amounts, besides, the quality of the
materials used to produce these cars are high, which means that the cars offered by
the company are high premium quality cars.
The cars Aston Martin is offering (See exhibit 1 for pictures) are the following ones:
Aston Martin Vantage:

is a modern sport car with classic ideals, potent and

unmatchable. There are four types of Vantage using two types of advanced engines, all
of them are available in both roaster and coupe formats.4

V8 Vantage (It has a special edition Vantage GT)

V8 Vantage S

V12 Vantage S

V12 Roadster

Aston Martin DB9: For Aston Martin to create this amazing car was an incredible
challenge, since they seek to improve the former models of Aston Martin, but once
again they fulfill with the expectations, introducing nearly 50% of all parts and more
than 70% of all body panels new, but maintaining the elegance. This model is the most
powerful DB9 ever (peak power of 510 BHP) and also is even more luxurious than the
previous models, and with a world class dynamics.5
Aston Martin Rapide S: Designing this new model has been an incredible experience
for Aston Martin; the model is more luxurious than the previous ones. The industry has
seen us taking the leadership with the ultimate superior engineering. The result is an
Aston Martin more powerful, more luxurious, and with four doors.6
Aston Martin Vanquish: The aim of this model is to be the most beautiful and
desirable car in the world and of course the best Aston Martin ever. This car was
created for the centenary (2013) and is the first step to lead the second century. To
produce this car the most advanced engineering is used, also they are looking for the

best design ever as well as the finest materials, the result of this combination is the
fantastic Aston Martin Vanquish.7
Q by Aston Martin: It is a unique service that turns customers personal vision into
reality, using their ideas to shape the ultimate Aston Martin. With Q, Aston Martin
takes you on a journey, a voyage of inspiration through the world of art, design and
craft, to distant lands or favorite places, soaking up the character of objects and
artifacts, materials, colors, textures and forms and translating them into key elements
of your own car.8
Aston Martin also sells other accessories like phone cases, umbrellas, bags, and
clothing, among others.9

Price:
Aston Martin DB9: The price of the DB9 could go from 228.525 with no extras to

283.344 by adding a rear camera, no conventional leather, carbon fiber seats among
other extras.
Aston Martin Rapide: For this model the prices are between 228.180 up to
266.489 if you add all the extras.
Aston Martin Vanquish: The minimum price a customer has to pay in order to get
the Vanquish is 299.474, and by adding all the extras available the price increases up
to 364.566.
Aston Martin Vantage: For this model the whole thing changes, since there are four
types of Vantage available, the cheapest one is the vantage V8, with a price of
131.714, the most expensive model inside the Vantage is the V12 Roadster, with an
initial price of 231.773, but the price of the Roadster model can go until 275.943
The conclusion of this point is that Aston Martin is a brand just for the upper class,
that's why there are not many buyers. This prices are approximately, the may vary
from country to country. 10

Place:
Aston Martin headquarter is in Gaydon and they have an official dealer network

with more than 140 stores around the world11 (Please see Exhibit 2), mainly in Europe
and USA. That's why they want to increase the dealerships in some developing
countries such as India, China among others, since they want to take some advantage
of the new rich people appearing in these countries, by expanding and increasing the
number of dealerships they will also reduce the waiting list, (sometimes more than one
year to get your car).

Promotion:
Aston Martin like all the other premium quality brands, don't make advertisements

of their cars on television, they rather use experiential marketing to get to their
potential customers. These experiences12 go from driving On ice, by learning how to
handle and drive on an ice course; On a track, learning and getting to drive in an race
track; or On tour, that consists on touring on luxurious European cities. There are other
events like the Aston Martin estate Saturday, which consists in watching the sunset
during a private cocktail to get ready for the Pebble beach13 automotive week in
august. One of the most known event Aston Martin participate was on the James Bond
movies, that was a perfect campaign for them, they also appear on other events such
as the NASCAR or the "24h de lemans". In these events the company offers to the most
important guests the opportunity to experience Aston Martin like never before, by
offering these opportunities the relationship between the brand and the consumers
become more stronger which creates consumer loyalty to the brand.

5.

Unit market share

Aston Martin unit global market share is approximately of 0,07816586%, as we can see in
Figure 2, its low but thats because it is a very expensive brand; as we said before only the
richest ones can afford it.

10

Figure 2.

Source: http://www.statista.com/statistics/262921/global-production-of-luxury-cars-by-make/

6.

Brand positioning

Aston Martin has been evolving since they initiated their production in London the
last century, and so they have become a popular and well-known brand worldwide,
and they have positioned themselves as unique and performance car brand,
competing with very experienced and powerful competitors that offer a similar
product. The luxury car market gathers a big amount of car manufacturers, which are
classified according to the main features they pretend to supply to their potential
customers, those are: comfort, performance, elegance and aggressive design.
Figure 3.

Source: http://3.bp.blogspot.com/1RKwjS05xLw/ULx4GQt7pgI/AAAAAAAAABw/mi5KpZ_4Zjk/s1600/car+market+map.jpg

11

Aston Martin brand is committed to pursue elegance in every car they work on, as
those vehicles are dressed up with a strict accuracy that their customers are able to
appreciate at the end of the day. However, some other competitors are focused on
striving for an aggressive design to receive another sort of attention, but with the same
exact goal, reach as much clients as possible.
This brand is also placed as a performance vehicle, like other manufacturers, such
as, Bugatti and McLaren. This implies that Aston Martins vehicles are specially
oriented to reach high speeds on the road, therefore the cars performance, rather
than putting the spotlight on how comfortable seats or the whole driving may end up
being.

7.

Policies

Aston Martin has established three different types of policies to carry out their
corporate and social responsibilities.14
For Aston Martin to be considered exclusive, highlighting their style, quality and the
craftsmanship personality, have, at the same time to act a like a responsible business
committed to the outer environment, and so, set an environmental policy. It covers
every part of firms all types of operations whether of how involved are to the design,
engineering or servicing, among others. This policy statement is reviewed annually by
the companys environmental department.
Eliminating pollution, using recognized environmental best practices wherever
possible, allows them to set out precise objectives:

Comply as a minimum with all relevant environmental legislation.

Set and achieve all targets for managing their environmental performance, in
order to keep strict control over the environmental aspects of all types of
products, processes and facilities.

Commit to an on-going reduction in energy and resource usage.

Minimize as possible the impact of Aston Martin activities, products and

services through highly effective waste management.

Make a special remark to environmental issues and energy performance

acquisition design, refurbishment, location and use of buildings.
12

Boost sustainable product design, using low carbon energy resources wherever
possible.

Communicate internally and externally their environmental policy, working

with employees, suppliers and partners to promote improved environmental
performance and encourage feedback.

The End of Life Vehicle policy is useful, if the car has come to the end of its useful
life, then motor vehicle manufacturers are required to offer a free take back service of
the last registered keeper, regardless of the vehicles final registration date.
Cartakeback Ltd is the firm selected to provide the service with all the guarantees,
since are fully licensed by the Environmental Agency. The vehicle must be complete as
a whole, and contain all the essential components, like wheels and catalysts. It also has
to be free of any additional waste that might be generated.
The last Aston Martin directive to be applied is the Battery recycling policy, which
tells that when a primary battery of a car comes to the end of its life, it can be
delivered to different facilities:

Garages

Civic Amenity and Recycling Centre

Local authority battery collection schemes

Licensed Scrap yards

Authorized Treatment Facilities

8.

Competitive advantage

The main reason for what they have competitive advantage versus the other luxury
car brands producers in Europe or USA, such as Ferrari and Bentley, is that every car
produced in this organization is handmade manufactured, since all this kind of
companies offer similar features. Therefore their consumers usually belong to upper
class population that really appreciate the craftsmanship that they provide, so in most
of the cases these customers don't pay so much attention on the price but on the
quality, that's why Aston Martin enjoys a price inelastic demand which means that a
possible increase on price would not affect that much in the number of sales, and that
consumers consider craftsmanship an essential issue for their final choice.

13

Regarding the competition outside of Europe or USA, it's relevant to mention that
the cars produced in those countries have a bigger prestige than others produced
outside, that allows Aston Martin to be optimistic, since they have competitive
advantage around the world in comparison with luxury car brands produced for
example in China or India.

B. EXTERNAL ANALYSIS
1.

Porters 5 forces analysis

The Degree of Rivalry:

There is a lot of rivalry among the top luxurious cars. Companies like Maserati,

Bentley or Ferrari compete to be the top brand. Although it might not seem that much
competence, it means nothing there is a reduced number of competitors as the market
segment to which they sell is also small and exclusive.

The threat of potential entry:

The new companies need to invest a lot on design and technology to achieve the

level of the already existing firms. As this product is not a cheap one, people usually
looks for something that they know it works, which makes it difficult to new
companies to enter. Luxury cars companies do already have a name which difficult to
achieve. Also luxurious products have to pay more taxes.

The Threat of Substitutes:

They have hard substitute products to face. Most of them are much cheaper, such

as Ford, Fiat and others. But, as the segment they sell is really different, they can
afford selling high-technology and high-priced cars. Aston Martin doesnt care to sell
its cars to the average consumer, so they dont compete on price.

Buyer Power:
As there are as many buyers as usual cars ones, it might seem they have power on

prices but they dont really have it. To have power on prices its needed a high owning
of the consumer segment so that the company really cares about you and this is not
the case.
14

Supplier Power:
As each part of the car uses materials coming from different suppliers, they dont

have a real power to increase prices. If there was only one supplier for everything, it
would be difficult to replace its job and Aston Martin would maybe be willing to pay
more. For example: the production of the Aston Martin Rapide has more than 30
different suppliers (Please see Exhibit 3).

2.

Market and customers

Aston Martins market segment is the top income one in the society. Not everybody
can spend that much on a car. More specifically Aston Martin market segment is
people between 32 and 54 years old, with a yearly income over 250.000. Their
interests are extravagance, high standards, beauty, exclusivity, distinctiveness, among
others.
Aston Martin tries to connect consumers to the lifestyle side of the brand. Aston
Martin invites its consumers to the production line so as they can feel part of the
company.
Aston Martin competes with other companies that offer really similar products.
They cant really differentiate; they just try to perform better than the rivals.
Through a deal with AMG, Aston Martin is hoping to eventually take market share
away from Volkswagen AG, which owns Bentley, and Jaguar Land Rover.

3.

Supplier and interest groups

Suppliers:
One of the main goals of Aston Martin is to increase by 10% the local suppliers.

Three quarters of the total cars produced are sold overseas and they believe a wealth
of local firms would be set to benefit.
Aston Martin employs 1,700 staff directly and is also supported by around 100 UK
suppliers, which it hopes to increase. In Exhibit 4 you can see the most important
ones.15

15

Dealers:
There are over 140 locations around the world. The expanding Aston Martin dealer

network offers the purchase of both new and pre-owned models. (Please see exhibit 2)
Aston Martin is directly related to some other firms as:

BANG & OLUFSEN: Aston Martin and Bang & Olufsen share a common approach.
Both companies were founded by a pair of pioneering engineers at the start of
the 20th century, and through a commitment to manufacturing skills and design
values, each has grown into an iconic global brand, bringing together
technological and design excellence with the strongest possible emotional
appeal.

JAEGER-LECOULTRE:

Aston

Martin

and

Jaeger-LeCoultre

share

many

philosophies. Each company has a rich heritage and both are dedicated to
producing the finest hand-crafted designs in their respective fields. The
partnership between Aston Martin and Jaeger-LeCoultre is a true celebration of a
common goal: perfection.

LOUIS ROEDERER: The partnerships that endure are those with shared values.
Aston Martin and Louis Roederer share not only exclusivity but the ethos that
the best creations are those that take time and care to bring to life. Attention to
detail, refinement and a heritage that echoes throughout history link two brands
that are sure to share, not only a special relationship, but their future.

JOHN LOBB: Two of the finest British names have joined forces for a unique
project: Winner Sport the ultimate lightweight drivers shoe. Co-designed by
Aston Martins Director of Design Marek Reichman and John Lobbs Creative
Director Andrs Hernndez, the sleek aerodynamic shoe, with its finely-tuned
detailing, speaks to the world of the automobile yet sits comfortably within the
John Lobb collection.

Lifestyle collection
Aston Martin now offers a selection of luxury lifestyle products that have been

developed under license. These exclusive items have been produced by carefully
selected partners across a range of products from contemporary furniture to
technologically advanced bikes, fine jewelry to stunning silverware.
16

Owners Club
The Owners Club16 is for Aston Martin owners only. They organize racing events,

monthly vehicles check-ups, concourses, other events like lunches, tributes and
celebrate especial dates.

17

IV.

MACROENVIRONMENT
A. Demographic factors

Aston Martin is a company that sells almost in all parts of the world. Thats why its
really difficult to analyze the demographic factors. To do it, we will focus on the most
important countries and group the other ones. We will group the European Union
countries, China (the main where they want to grow) and the US (the one to which
they sell the most). We will take into account to analyze it the sector to which the
company sells. The luxurious cars main market sector is the older men one. Taking this
into account we will focus on looking for how much people is there in this sector, the
growth rate and live expectancy at birth.
Aston Martin was set in the UK, and established firstly in Europe. Its the second
area to which they sell the most. In this area we can see also a huge population of over
500M inhabitants and it has a growth rate of 0.22%. As it is also one of the most
developed areas in the world the live expectancy at birth is high: 73-74 years for men
and 81 for women. Most clients are men so it would be better for the company it was
the other way round.17 (Please see exhibit 5)
The US population is the one to which Aston Martin sells the most. That is due to
the huge population: 318M18 and it has a growth rate of 0.77% (in 2014). Also, as it is
one of the top developed countries in the world there are sufficient riches to buy most
part of their production. To be a developed country is also good as live expectancy at
birth is around: 77-78 years. More or less a 20% of the population is inside the
potentially consumer age sector.19 (Please see exhibit 6)
The Chinese market is thought to be the future of the Aston Martins sales. In China
the 30-35% of population belongs to the potential buyers market sector. Its
population (1357 billion) has a growth rate of 0.44%. Live expectancy at birth is around
74.5 years but its increasing as China is developing.20 (Please see exhibit 7)
As the main segment is the one that goes from the 45-75 years, we can understand
why the company has been focused in developed countries, where the population is
older and the life expectancy is higher. We also have to take into account that the

18

population who can afford this product is the rich one. Thats why the company sells
the most number of cars in the EU and in the US. However, as developing countries are
improving the life expectancy and healthiness, the company has realized they can
exploit this new market. Thats why they are focusing on expanding in the developing
countries as China or India, and open new dealerships in Malaysia and South Korea.

B. Sociocultural factors
Cultural environments consist of the influence of religious, family, educational, and
social systems within the marketing system.
The world has more than 3,000 languages and this can cause marketers many
problems in designing advertising campaigns and product labels. Colors have different
meanings in different cultures and all cultures have their own unique set of customs
and taboos. An individual's personal values arise from moral or religious beliefs
learned through experiences. The value of time and a country's business norms are
important to consider when marketing across borders. Religious beliefs can also affect
shopping patterns and products purchased, in addition to the consumers' values. 21
Impulse Buying: We seem to be doing more and more impulse buying purchases
made without advance planning. A shopper may go out to buy only meat and bread.
But once in the store, that person may also buy some fresh peaches, because they look
appealing or are priced attractively; these are impulse purchases. Self-service, opendisplay selling has brought about a marketing situation that recognizes that the buyers
planning may be postponed until at the retail outlet. Because of this trend toward
impulse buying, promotional programs must be designed to get people into a store.
Displays must be appealing, because the sellers package must serve as a silent sales
person.22
We can also think of how culture has an impact on potential consumers, for
example for Aston Martin the movie James Bond revealed strong classic connotations
and gives an image to the brand. Who would not imagine himself being an incredible
spy in the Aston Martin's car, a vision of sophistication, glamour and intrigue.23

19

C. Economic factors
When we look at the economy nowadays we see the most preoccupying matter is
the lowering of purchasing power and rising unemployment, meaning that there is a
decrease in consumption. Anyway Aston Martin is not looking for normal family sedan
cars but they work in the luxury market and as such, their share is not that much
affected. Taking a look on exhibit 8, we will take countries from Africa, India, Europe
and United states as relevant. As we can observe Africa and China make the top of the
list while European and American countries are close from middle to the bottom. So
there is an open gap for companies to enter in the future.
In exhibit 9 we can see the Top 25 countries for GDP (purchasing power parities),
here we can observe that the main countries on the top are actually some of the many
markets where Aston Martin's placed.

24

Also notice that developing countries are

emerging and are progressing at a high rate. Those countries show a high internal
growing demand and with a huge potential market. But we'll see that for some reasons
it could present political and legal difficulties.25
As we are analyzing a car company is important to take a look at fuel costs, as we
can see in Figure 4 below, oil prices have increased a lot over the years, and since oil is
a limited resource, its price is expected to keep the increasing tendency.
Figure 4

Source: http://inflationdata.com/Inflation/Inflation_Rate/Historical_Oil_Prices_Chart.asp

20

D. Political and Legal factors

Stability of Government Policies: Although the preferred political climate for a
global firm is stable and friendly, organizations may still profit and succeed in
traditionally unfavorable conditions. The most important idea is that the government
is stable and the set of rules or codes of behavior that affect business are predictable
and adaptable. If the potential for profit exists and is permitted by government
policies, a global firm can still function.26
There are 5 main political causes of instability that affect the international markets:

Some forms of government seem to be inherently unstable

Changes in ruling political parties

Extreme nationalism

Animosity targeted towards specific countries

Trade disputes

Political Risks: Below is a brief list of the different kind of political risks a company
faces when doing business internationally.

Confiscation, Expropriation and Domestication

Economic risks associated with the political environment (exchange controls,

local-content laws, import restrictions, tax controls, price controls, labor
problems)

Political Sanctions (boycotting trade altogether or on specific products by one

country to another)

Political and Social Activist and Nongovernmental Organizations

Violence, Terrorism and War

Cyberterrorism and Cybercrime

Example of Africa or India, when there is no stability it's difficult to invest and to
entry in markets; although it is a potential market to keep an eye on it for the future.
As we can see in the map of Exhibit 10 the political stability in Africa and India are the
main contested ones.27
Legal issues of safety: Safety recalls are governed by federal law. In general, the law
defines a safety defect as a problem that:
21

Poses a safety risk in motor vehicles

Exists in a group of cars or other vehicles of the same design or manufacture (or
equipment of the same type and manufacture).

Defects that are not related to safety are not covered by federal law and are not
subject to recall. However, non-safety-related defects could form the basis for a
product liability claim or lawsuit.
When a safety recall is initiated by the vehicle manufacturer, he has the duty to
contact owners of the potentially affected vehicles. Federal law requires that the
vehicle manufacturer takes a number of steps in connection with a safety recall
including filing a public report, searching for affected owners, and providing them with
notification letters. This letter must describe the defect, the risk or hazard posed by
the defect, the free remedy, when the remedy will be available, how long the remedy
will take, and what the owner can do if the manufacturer does not correct the problem
for free within a reasonable time period.
There are available remedies that the manufacturer may choose, as long as it is
effective in resolving the safety problem. Remedies might include:

Repair of the defect

Repurchase of the vehicle or equipment

Replacement of the vehicle or equipment.

If the remedy initially offered by the manufacturer is ineffective, the law may
require the manufacturer to provide a different remedy. So there is an existing huge
cost for the manufacturers if anything goes wrong with the production of one model as
they would need to revise every single one to be sure that there is no potential
damage.28

E. Technological and Environmental factors

Environmental Consciousness: Consumers are increasingly becoming conscious of
environmental conservation. One notable example is the development of hydrogen
and hybrid electric-powered vehicles by car manufacturer companies such as Toyota,
BMW, Mercedes and Honda. Such vehicles release non-toxic waste to the environment
such as water.
22

Environmentalism has been a political factor for a couple of decades, and it has
intensified since the 1990s as consumers have become more aware and more vocal.
This is not limited to Europe. But can be found also in U.S.A, Japan, Australia,
Singapore, and other countries who are actively engaged in the greening movement.29
In the technology world, the latest advancement is only as good as the next thing
coming down the line. The car industry is always on the move, whether it be for safety,
entertainment, usefulness, comfort or simply for pure innovation. Right now there are
some technologies30 that may really have a chance in the future and it would be good
to invest on, some companies have already started. This new technologies are:

Cars that communicate with each other and the road, this technology called
Vehicle-to-Vehicle

communication

(V2V)

and

vehicle-to-infrastructure

communication (V2I). This technology is to improve safety and reduce car

accidents.

Self-Driving cars, this technology used lasers, radars, cameras and others. This
would improve safety but also for comfort.

Augmented reality dashboards, this allows cars to identify external objects in

front of the driver and display information about them on the windshield, BMW
is already introducing something like this on its cars.

Airbags that help stop cars, Mercedes is experimenting with airbags that deploy
from underneath the car that will help stop a vehicle before a crash.

Energy-storing Body Panels, in Europe, a group of nine auto manufacturers are

currently researching and testing body panels that can store energy and charge
faster than conventional batteries of today.

23

V.

SWOT ANALYSIS

S
W
O
T

Strong engineering and designing team

Brand attractiveness
Business model operational effectiveness
Highly skilled and passionate workforce
Manufacturing in Europe
Multiple promotional events
High profit margin

Lack of efficient production

Price of cars
High cost in repairing cars
Delays in deliveries
Few car models launched
Low penetration in emerging countries

Efficient use of limited resources

Expanding automobile markets
Attract more customers through competitive
pricing
Increasing the availability of service and spare
parts
Internships for college students
Introduction of new technologies

Increasing fuel costs

Competition from other big automobile brands
Competitors offering similar features at a lesser
price
Product innovation
Introduction of all-electric cars

24

Strengths:

Strong engineering and designing team: The company is characterized by

offering a unique handmade design with a high quality engineering. This design
creates high demand in the luxury car sector.

Brand attractiveness: As Aston Martin is a very exclusive brand, the customers

feel desirable of owning them in their garage. Its easy to establish a link with the
customers in this sense. This could generate a bigger profit.

Business model operational effectiveness: Turn knowledge into action faster

than their immediate competition, and their workforce has an extraordinary
learning and innovative capacity.

Highly skilled and passionate workforce: All employees from every single level
feel encouraged and passionate to end up providing to the ultimate customer a
high-premium car, which has really been made with their willingness to work
every day.

Manufacturing in Europe: Since they production is located in the United

Kingdom, it gives them a better consideration from consumers, than if they
would produce in the Middle east, such as, China or India.

Multiple promotional events: Their cars have featured in James Bonds movies,
and NASCAR races, which increased their brand awareness worldwide and so
their fame among potential customers.

High profit margin: As the price of high-premium brands is expensive, they get
more profit margins, although selling a low number of products in comparison to
other car brands.

Weaknesses:

Lack of efficient production: Due to their handmade production of vehicles, there

is a lack of productivity since they need more time than other companies to
make them, as a unique and stylish design is delivered. As the production is low,
they dont take advantage of economies of scale for producing a large number of
cars.

Price of cars: Setting a high price reduces the possible buyers to this product, as
the proportion of rich people is in all countries rather small.
25

High cost in repairing cars: As the materials from this company, are so rare and
scarce, the difficulty to replace them is extremely high.

Delays in deliveries: Due to the time required to make cars, the waiting list for
turning in the cars suffer from long delays up to one year or even more.

Few car models launched: In emerging economies, their product portfolio is

substantially low, that means a loss of potential clients not convinced with some
cars features of a particular model, which is not compensated with the release
of another more suitable car.

Low penetration in emerging countries: 80% of overall sales came from

developed markets, such as, Europe and the US, then their market share in
emerging countries is lesser than its competitors market share.

Opportunities:

Efficient use of limited resources: The materials used to make these vehicles are
so rare and scarce, and by using them in the most possible efficient way, Aston
Martin is gaining competitive advantage over their competitors.

Expanding automobile markets: As they have a low market share in developing

areas, they pretend to increase its total dealerships in countries, such as, China,
India, and open new dealerships in Malaysia and South Korea.

Attract more customers through competitive pricing: Reduce profit margins, by

dropping the car prices in order to get a higher market share, to offset it by
increasing their overall turnover.

Increasing the availability of service and spare parts: Manage more materials and
keep them for future repairs. Be ready to offer those missing pieces when
needed for our customers, so as to please them.

Internships for college students: Giving students, who are motivated and have an
outstanding academic record, the chance to work for the company to train them
for being key employees in the near future.

Introduction of new technologies: taken a leader role in introducing these

innovative technologies.

26

Threats:

Increasing fuel costs: As the company is unable to control the supply of oil in the
future, there is a high level of uncertainty regarding the oil price, so customers
will consider buying Aston Martin cars since they require a bigger expenditure in
terms of maintenance.

Competition from other big automobile brands: As there are many firms
operating in the same industry, such as, Porsche, Bentley, Maserati and so on.
Then, to catch a more number of customers is not an easy task for any of those
companies.

Competitors offering similar features at a lesser price: Some companies are able
to benefit from economies of scale, since they use mass production, then they
are able to charge lower prices and still get high profits.

Product innovation: Investment in Research and Development is a major issue

when adapting to the latest consumer preferences. The company has to live up
to the customers expectations, because if not the main competitors will take
advantage from this situation.

Introduction of all-electric cars: The worldwide concern for reducing the effect of
global warming, has allowed the creation of some companies that are trying to
convince the general public to start buying them, which might end up harming
the companys aspirations to grow in emerging markets.

27

VI.

SUGESTIONS FOR THE FUTURE

When setting objectives we have to focus on them to be specific, measurable,

achievable, realistic and on time. Taking into account the SWOT analysis we'll have a
clear image of Aston Martin's potential. So here are some suggestions that will not
lead to confusion and will help understanding where to go next.
Focus the innovation towards hybrids and electric cars, as we know that Aston
Martin's engineers are high-skilled and are constantly innovating. We've seen that
there is a growing demand on that side and yet unexplored by Aston Martin.
Q service allows customers to customize accessories and some features of the cars.
Expand this service and try to accomplish even more the fantasies of customers. For
example taking a sample and allowing the customer to work with the designers to
create a unique Aston Martin. It goes from choosing the color of the seats to the shape
of the car. The customer would feel like Aston Martin created this car only for him, this
would add the feeling of loyalty towards the brand.
Aston Martin is announcing the opening of a stunning new showroom in Ningbo in
partnership with Ting Hu Group, further reinforcing the brands commitment to the
Chinese market.31 This piece of newspaper, coming from Aston Martin's webpage,
projects the need to open ways to markets by installing showrooms in them to
increase the brand image around the world. This objective would be to install more
showrooms around the markets where they have a low presence, such as in emerging
countries.
Another key point is looking at the future, find new internships programs for
brilliant students in order to motivate them to be great. This would lead to new ways
of thinking and would bring benefits for Aston Martin, taking the best to be the best,
as they're interested in high-skilled workers.

28

VII. CONCLUSIONS
After performing the SWOT analysis we can conclude that Aston Martin has been
delivering value to customers for many years through unmatchable performance and
exclusive luxury. It has gain a strong position in the luxury/sport car segment as a
result of a perfect combination of engineering, design, productivity of workers and an
outstanding marketing team.
On the other hand, has mentioned earlier in this report, the car industry is
constantly evolving and companies need to introduce new technologies and try to
differentiate on how things are done; in order not to be left behind. For this reason we
have some recommendations that we think will help to maintain Aston Martin position
in the industry:

Introduce hybrids and electric cars to their offers.

Improve the Q service allowing customers to customers to complete design

their own cars.

Expand the use of showrooms in emerging countries.

Create new internships programs for brilliant students.

29

APENDIX
Exhibit 1.
DB9:

Rapide S:

30

Vantage:

Vanquish:

31

Exhibit 2.

32

Exhibit 3.

33

Exhibit 4.

Aston Engineering Derby, UK: Long standing and well respected workshops in the Midlands. Run by David
Jacks, former mechanic with Robin Hamilton on RHAM 001. Also responsible for a racing DB7.

Aston Enginology: New Enginology site, dedicated to show casing Aston Workshop's commitment to quality
and excellence for your Aston Martin engine.

Aston Martin Bits: specialize in new and used Aston Martin replacement and spare parts for the following
models: DB7 Vantage & Volante, Vanquish, DBS, DB9 and the V8 Vantage coupe and roadster

Aston Martin Long Island: Aston Martin of Long Island aim to make the Aston Martin purchase & ownership
experience positive & fun!

Aston Martin Michiels, Belgium: Official Belgian dealer since 1984, Antwerp & Tisselt

Aston Martin of New England Brighton, MA, USA: Heritage specialists for the USA. Usually a selection for
sale of DB4's onward.

Aston Martin Works - Newport Pagnell, UK: Works Service - the factory workshops in Newport Pagnell. From
routine servicing through restoration and on to a huge range of factory approved modifications and
enhancements.

Aston Service Dorset - Poole, Dorset: Worldwide Distributor of AM and Lagonda parts - a comprehensive
parts service for all models

Aston Service Dorset, Poole: AML Officially Appointed Service Agent, supplier of parts for older Astons and
also able to help with build sheets

Aston Workshop: Aston Workshop was established by Bob Fountain in Beamish in 1988. This specialist car
sales and restoration company grew out of Bob's personal interest in restoring Aston Martin cars to the
highest possible specifications.

Autosport Designs, New York, USA: American experts in Aston Martins. Performance enhancements a
specialty. AM Parts America.

Desmond J. Smail Olney, Bucks, UK: Wide range of services for owners - situated in Buckinghamshire

Ecurie Bertelli Olney, Bucks, UK: The place for service and repair of Pre-war Aston Martins. Long established.

Four Ashes Stratford-upon-Avon: Four Ashes Classic Aston Martin Specialists. Established in 1954 by Jack
Moss, carried on from late 2002 by Chris Adams & Jean Moss

Genuine Aston Martin Parts from Heritage Dealer, HWM - UK: Authorized Aston Martin dealer with an
excellent stock of genuine parts. HWM are an official AML Heritage dealer. V8 bumpers and 16 inch 'Ronal
like' wheels for V8's now available

H.D. Rogers and Sons: Imported Auto Parts Specialists: A US company offering a selection of Aston Martin
parts.

Hayward and Scott: Manufacturers of stainless steel exhaust systems

Heritage Restorations: Based in East Sussex, specialize in marques of distinction including Aston Martin.
Restoration, servicing, trimming and painting

HWM Ltd - Walton-on-Thames, UK: The worlds most experienced Aston Martin distributor; servicing and
parts for all cars from the DB4 to the DB7 Vantage

Kevin Kay Restorations: Based in California, USA and specializing in the six cylinder Feltham and Newport
Pagnell cars. Stocking a full range of spares for all the 6-cylinder DB series cars, 1950-1970 in the USA

Nicholas Mee and Co Ltd - London, UK: As London's only official Aston Martin appointed Heritage Specialist,
Nicholas Mee & Co specializes in pre-owned, classic Aston Martins from the iconic DB4 to the current
models. Servicing, maintenance, restoration of all models, . A

34

Noblehouse Exclusive Cars: Noble House, Legendary Cars & Traditional Craftsmanship in the Netherlands.
Noble House also has all rights the DB7 Zagato and DB AR1 models. Also has a growing collection of
interesting prototype cars.

Richard Stewart Williams Ltd - Cobham, Surrey, UK: Servicing, restoration and race preparation from this
most famous Aston Martin workshops. RSW managed the Downe Nimrod cars and the Protec AMR cars in
the late '80s for AML.

Rikki Cann - Essex, UK: Essex' Premier Aston Martin Specialist for both mechanical and bodywork. Fixed
price servicing and a national vehicle inspection service.

Roos Engineering Bern, Switzerland: Official AML centre for service, repair and restoration. Creators of the
rare coachbuilt Vantage V600 and Lagonda Shooting Brakes.

Steel Wings - Pennsylvania, USA: Independent Aston Martin Specialist - for race preparation, repair,
restoration, sales and spares

Stratton Motor Company Norwich, Norfolk, UK: Stratton Motor Co. is a factory approved distributor with
over 30 years experience of Aston Martins. Full servicing facilities available from heritage to current
models. Also offers full race preparation support and management with Heritage Racing Suppor

The Aston Workshop Beamish, County Durham, UK: Always with a huge range of cars available - lots of
pictures on this website.

The V Collection: The V Collection (formally known as The Vantage Collection) is a range of aftermarket
parts custom designed for Aston Martin vehicles, painstakingly crafted by expert modelers to ensure the
highest of quality of finish and fit.

Turrino Wire Wheels: Restoration and manufacture of all types of wire wheels

Wren Classics Dorset, UK: Service, Restoration, Parts and Race/Rally preparation for Aston Martin and other
marques of distinction.

35

Exhibit 5.

36

37

Exhibit 6.

38

39

Exhibit 7.

40

41

Exhibit 8.
Rank Country
1 Zimbabwe
2 Nauru
3 Liberia
4 Burkina Faso
5 Cocos (Keeling) Islands
6 Turkmenistan
7 Djibouti
8 Namibia
9 Senegal
10 Nepal
11 Kosovo
12 Lesotho
13 Bosnia and Herzegovina
14 Haiti
15 Kenya
16 Gaza Strip
17 Swaziland
18 Marshall Islands
19 Afghanistan
20 Yemen
21 Macedonia
22 Cameroon
23 Libya
24 Mali
25 Mauritania
26 American Samoa
27 Grenada
28 South Africa
29 West Bank
30 Serbia
31 Dominica
32 Equatorial Guinea
33 Micronesia, Federated States of
34 Spain
35 Gabon
36 Cape Verde
37 Mozambique
38 Nigeria
39 Comoros
40 Saint Lucia
41 Sudan
42 East Timor
43 Tunisia
44 Croatia
45 Greece
46 New Caledonia
47 Georgia
48 Latvia
49 Lithuania

Unemployment rate (%)

95
90
85
77
60
60
59
51.2
48
46
45.3
45
43.3
40.6
40
40
40
36
35
35
31.4
30
30
30
30
29.8
25
24.9
23.5
23.4
23
22.3
22
21.7
21
21
21
21
20
20
18.7
18.4
18
17.7
17.3
17.1
16.3
15.4
15.4
42

50 Iran
51 Wallis and Futuna
52 Iraq
53 Bahrain
54 Oman
55 Saint Vincent and the Grenadines
56 Maldives
57 Ireland
58 Bahamas, The
59 Puerto Rico
60 Saint Helena
61 Zambia
62 Slovakia
63 Albania
64 Belize
65 Dominican Republic
66 Cook Islands
67 Tonga
68 Jamaica
69 Portugal
70 Poland
71 Jordan
72 Syria
73 Egypt
74 Estonia
75 Barbados
76 Niue
77 Slovenia
78 French Polynesia
79 Montenegro
80 Guam
81 Antigua and Barbuda
82 Ghana
83 Guyana
84 Hungary
85 Saudi Arabia
86 Colombia
87 Sint Maarten
88 Curacao
89 Saint Pierre and Miquelon
90 Algeria
91 Turks and Caicos Islands
92 Mongolia
93 India
94 Turkey
95 Bulgaria
96 France
97 Suriname
98 United States
99 Morocco
100 Kyrgyzstan

15.3
15.2
15
15
15
15
14.5
14.4
14.2
14.2
14
14
13.5
13.3
13.1
13.1
13.1
13
12.7
12.7
12.4
12.3
12.3
12.2
12.1
12
12
11.8
11.7
11.5
11.4
11
11
11
10.9
10.9
10.8
10.6
10.3
10.3
10
10
9.9
9.8
9.8
9.6
9.3
9
9
8.9
8.6

43

Exhibit 9.
Rank Country
1 United States
2 China
3 India
4 Japan
5 Germany
6 Russia
7 Brazil
8 United Kingdom
9 France
10 Italy
11 Mexico
12 Korea, South
13 Spain
14 Canada
15 Indonesia
16 Turkey
17 Iran
18 Australia
19 Taiwan
20 Poland
21 Argentina
22 Netherlands
23 Saudi Arabia
24 Thailand
25 South Africa

GDP (purchasing power parity) (Billion $)

15,290
11,440
4,515
4,497
3,139
2,414
2,324
2,290
2,246
1,871
1,683
1,574
1,432
1,414
1,139
1,087
1,003
926.2
887.3
781.5
725.6
713.1
691.5
609.8
562.2

44

Exhibit 10.

45

BIBLIOGRAPHY
For this project we used the class notes and also for research we used the following
sites:
1

http://www.astonmartin.com/the-company
http://en.wikipedia.org/wiki/Aston_Martin
3
http://www.astonmartin.com/the-company
4
http://www.astonmartin.com/en-us/cars/the-vantage-range
5
http://www.astonmartin.com/en-us/cars/the-new-db9
6
http://www.astonmartin.com/en-us/cars/rapide-s
7
http://www.astonmartin.com/en-us/cars/the-new-vanquish
8
http://q.astonmartin.com/
9
http://www.astonmartin.com/shop
10
http://www.autobild.es/coches/aston-martin/vantage/v12-vantage-roadster-2-2007/60-v12manual/ficha-configurador
11
http://www.astonmartin.com/dealers
12
http://www.astonmartin.com/events
13
http://www.astonmartin.com/en-us/us-events/pebble-beach
14
http://www.astonmartin.com/company
15
http://astonmartins.com/links/services/
16
http://www.amoc.org/
17
http://www.indexmundi.com/european_union/#Demographics
18
http://en.m.wikipedia.org/wiki/Demographics_of_the_United_States
19
http://www.indexmundi.com/united_states/#Demographics
20
http://www.indexmundi.com/china/#Demographics
21
https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/globalmarketing-7/the-global-marketing-environment-53/social-and-cultural-environment-261-4093/
22
http://smallbusiness.chron.com/social-environmental-forces-marketing-22612.html
23
http://marketing-definition.org/marketing-environment-social-and-cultural-forces/
24
http://www.indexmundi.com/
25
http://iems.skolkovo.ru/en/research-platforms/publications/32-the-world-s-top-auto-markets-in2030
26
https://globalmarketingtoday.wordpress.com/about/getting-global-the-political-legalenvironment/
27
http://databank.worldbank.org/data/home.aspx
28
http://www.nolo.com/legal-encyclopedia/safety-recalls-cars-motorcycles-32230.html
29
http://smallbusiness.chron.com/social-environmental-forces-marketing-22612.html
30
http://auto.howstuffworks.com/under-the-hood/trends-innovations/5-future-cartechnologies.htm#page=5
31
http://www.astonmartin.com/live/news
2

46