Rolls Royce launched a new car called the Ghost, and according to an article in the Economist magazine, the sales expectations appeared in line with typical cost-volume-profit calculations and good better best practices, where the goal is to sell the middle, or “better” price point vehicle, with the “good” and ‘Best vehicles” acting as psychological stimuli.

In this scenario, the Ghost, as the “better” vehicle sells for approximately £170k while the Phantom sells for £300k. The marginal sales of Ghost digs a little into the Phantom market – say 15% yields to the less expensive car, a reasonable estimate. The reported expectations are 3,000 units sold, of which 2,000 are Ghost. The margin on the Ghost is likely much greater than the Phantom. Therefore, if these numbers are met, Rolls Royce expects to be self-funding at the 3k sales unit volume, meaning all profit must be in the Ghost.

These are relatively low volume numbers, and we can assume that Rolls Royce can’t afford to lose market share. Sales in California have dropped predictably and the Rolls Royce US market sold approximately 480 units in 2008. China and other developing nations with new wealth have high import tariffs and may include other barriers to entry for the manufacturer.

While the brand has incredible recognition, the reach and frequency of media seem to be limited to targeted print vehicles, events, and very little else. Most of us will never own or even ride in a Rolls Royce ‘motor car’. The handmade vehicles have achieved a stellar brand value untouched by anyone in the US or Japan, but they are facing some image problems of being “too ostentatious” in economically challenging times, and not environmentally friendly.

So here’s my two cents for the company: Stop ignoring the Internet. The company recently stated In the Economist that there is data going back to 1904 suggesting there is no link between Rolls-Royce sales and stock markets or GDP. We all know the Internet did not exist in 1904. I would suggest that times have changed and the influence of this global medium may have an effect on sales going forward.

Many luxury B2C companies think their client base is somehow immune to any Internet influence. I have personally seen this to be an incorrect assumption in my relationships with other luxury brands. I would be hard-pressed to point out a global brand that doesn’t need to speak with their customer online, in fact. 23% of the world, 78% of U.S and 49% of Europe have access to the Internet; 66% of online Americans use search to research products or find information. Brands can now be created and destroyed online– not instantly, but surely through neglect over time. Rolls Royce needs to have a conversation with its existing market now. The web can provide the brand with unlimited reach. In fact, search volume for phrases like “luxury car brand” have increased over the last year, and monthly search volume for “Rolls Royce” is over 2 million.

Then there is the issue of Brand protection. Rolls Royce needs to defend against those who wish to tear it down. The Phantom needs to maintain its stature in the marketplace and face challenger brands online, before sales are eroded further. Otherwise, it’s doubtful BMW will continue to finance this line if they can only sell 600 units.

That leads us back to the Ghost. Again, the company is relying on the same venues to sell a less expensive product and ignoring the Internet entirely. One suggestion is to isolate the Ghost market on the Internet and through segmented offline media. The Ghost has significant potential to reach a new market that has been largely ignored.

The Internet can be utilized to help create the order: As the lead times are 6 months plus, why watch money fall into a black hole when the process can be an event? At each stage, from dirt to finished product there is a Rolls Royce story in the making. Inviting the customer to take part in the process can be a vital part of the customer journey.

The Internet can help define emerging markets; research into search queries can yield priceless information about where luxury markets exist. My advice is don’t focus purely on brand search, but reach out to related products, or other luxury items. One strategy I used in the past with a luxury car manufacturer was to reach those looking at £2mm homes with simple, direct messaging: Why own the castle without the chariot?

* After I published this blog post, I came across a banner ad for Porsche, depicting photographs of Porsche’s throughout history. Intrigued by the seeming connection to the ideas in this post, I clicked on it to find that Porsche is indeed following through with “my” strategy. Their site is a perfect example of using the Internet to tell the Brand story in an interesting and compelling way.