Case 2.4 Rover Cars:The Catalyst and Conquest
’91 direct marketing programmes
This case was written by Professor Adrian Payne, who is Director of the Centre for
Relationship Marketing at Cranfield School of Management, Cranfield University.
The UK motor-car market is subject to considerable cyclical activity. Typically
there is a high surge in car sales in August each year when a new letter on
number plates becomes current, and a surge at the start of a new year.
Table 2.4.1 provides volumes and percentages of car sales for 1990.
The motor-car market is volatile and highly competitive. Around 14 car
makers currently sell over 20,000 units each year and these account for
approximately 92 per cent of all sales. With the recessionary conditions
over this period all motor-car manufacturers have been under pressure to
achieve sales volume and maintain profitability. Annual statistics for the
period 1987–1991 are given in Table 2.4.2. In order to try and achieve
similar levels of sales, some companies have sought to increase market
share by significant reductions in price.
For a number of years the lion’s share of the car market has gone to meet
the demand of fleet users. For some manufacturers, up to 70 per cent of their
output found its way on to the road as the company car. Attractive though
the fleet market is, competition has always been fierce and buyers have typ-
ically been able to negotiate sizeable discounts. More recently, government
policy has tended to weigh against the company car, certainly in the form
The customer market domain: Managing relationships with buyers 97
Figure 2.4.1 Typical calendarised sales pattern
Source: SMMT