From the Rolls-Royce experimental archive: a quarter of a million communications from Rolls-Royce, 1906 to 1960's. Documents from the Sir Henry Royce Memorial Foundation (SHRMF).
The branding and market implications of a new car, codenamed Phoenix, weighing whether to call it a Bentley or a Rolls-Royce.
Identifier | ExFiles\Box 111\2\ scan0257 | |
Date | 12th November 1937 | |
-2- Rm{William Robotham - Chief Engineer}4/R.12.11.37. shall not make a very large profit on two very similar cars selling at about the same price, as soon as the designs are rationalised. Over the last four years the average output of these two chassis has been round about 1,200 per annum, and we are convinced that if we are to make a satisfactory profit on our £950 car, then the profit on these two cars at £1,500 must be of the order of £300 per car, because they have been so schemed that 75% of their pieces will be common to the £950 product. Now it would be nice to retain as much of this business as possible until we can see our way through the projected quantity production programme. We are positive that it is entirely wrong to say that the 25/30 and Bentley market has been proved to be an unprofitable one, and that we can forget about it. It is certain that if we went after the £950 market on the same lines as we have gone after the £1,500 market we should be in liquidation almost at once. Considering, therefore, the effect on our present sales of calling the Phoenix a Bentley or a Rolls-Royce, we come to the following conclusions:- If we call Phoenix a Rolls-Royce and put up the body capacity, a customer will be able to purchase anything he wants in the 20/25 H.P. R.R. class (i.e. close-coupled, saloon, saloon with division) except the saloon with occasional seats. Under these circumstances, to what will the sales of the £1,500 Rolls-Royce cars fall? If we call Phoenix a Bentley, by reason of its specification it will necessarily have a very ordinary performance. Surely, therefore, it should not seriously compete with the £1,500 Bentley market (which is in any case smaller than that of the 25/30 R.R.) Having regard to all the circumstances, our conclusions are, that calling the Phoenix a Bentley would upset our existing market least. | ||