Case Study on “Rolex Marketing

Muhammad Mostafizur Rahaman

Contents

Product Classification & Features

Market Segmentation

Marketing Strategy

Branding of Rolex

Background of the Case

Channel Distribution & Promotion

It is difficult to imagine a world without clocks. People in the modern economy depends on the ability to measure time.

Obelisk Shaped Sundials (Egypt)

Mechanical Clock (Italy & England Mid Fourteenth Century)

Wrist Watch (Queen of Naples)

Over the 700 years – Swiss Jura

Background of watch

Watch making in Switzerland was introduced in the middle of the sixteenth century by the Huguenots.

Around 1785 some 2000 persons worked in the watch making industry of Geneva

The late seventeenth and the late eighteenth centuries, the center of the world watch industry was Britain.

By 1901 Switzerland was again the most efficient producer of mechanical watches.

Switzerland & Watch

77%

4%

19%

% of Mechanical Watch ProductionSwitzerland Japan Hong Kong Others

55%

22%

9%

15%

% of Watch Production TotalSwitzerland Japan Hong Kong Others

1993 World Production of Watch and Movement in Value (Millions Swiss Francs)

Hans Wilhelm Wilsdorf was born on March 22, 1881, in Kulmbach near Nurnberg in Germany.

In London, Wilsdorf met Alfred James Davis, They started a watch trading company, Wilsdorf and Davis Ltd in 1905. The Rolex name was registered in 1908.

In 1912 Wilsdorf signed a deal for $500,000 to buy wristwatch movement from Aegler.

In 1926 Wilsdorf started to use the word “Rolex” on the dials.

The name Rolex is recognized around the world. It has become an icon of beauty, quality, accuracy, style, and taste.

Hans Wilsdorf & Rolex

Developing a brand strategy can be one of the most difficult steps in the marketing plan process. It's often the element that causes most businesses the biggest challenge, but it's a vital step in creating the company identity. The brand identity will be repeatedly communicated, in multiple ways with frequency and consistency throughout the life of the business.

Branding

Rolex can Build a strong Brand Image by :

Oyster Rolex (Greatest Triumph in Watch Making)

Aquariums in retailers window

Swiss Water Polo Team (1930) Swiss Alpinist Team Paul Newman (1960)

Rolex as a Brand

The following Marketing Strategy Rolex follow to get a sustainable position in the market

Single Market Strategy (Rich, Athletes, Celebrities Etc)

First in Strategy (Waterproof Patent)

Market Opportunist (Harwood’s Company)

Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal.

Marketing strategy

Rolex in Mind Space

Swiss Made

Brand Ambassador

Luxury Market

Fashion

Exclusive Customer Luxury Adventure

Prestige Sports Bond 007

Market Segment

WEALTHY CUSTOMER

CELEBRITY

SPORTSMAN/ ATHLETES

EXCLUSIVE CUSTOMER

ASTRONAUT

DEEP SEE DIVERS/ ALPINIST

Countries

Value in mio CHF Change in

2003 2002 2001 2003/2002 2003/2001  (+) (-) (+) (-)

USA1534.

1 1507.6 1482 1.80%   3.50%  

Japan896.7 997.4 978  

-10.10

%  -8.30%

France556.7 610.4 667.4   -8.80%   -

16.60%

UK 538.7 519.7 468 3.70%   15.10%  

Germany515.9 580.6 718.7  

-11.10

%  -

28.20%

China179.6 80.4 32.6 123.30

%   451.10%  

UAE 212.2 221.3 176.4   -4.10% 20.30%  

Russia 127.1 101.7 103 25.00%   23.40%  

Canada59.8 73 58.6  

-18.10

%1.90%  

Table: World distribution of Swiss watch export

Competitive Analysis

Market positioning

USA

Japa

n

Fran

ce UKGer

China

UAE

Russia

Canad

a-1

0

1

2

3

4

5

6

Growth 2001-2003Growth 2002-2003

Graph of World Growth of using Swiss watch

Product Classification - Rolex

EXPLORER: With 24-hour red auxiliary needle, To facilitate night adventure lovers to identify.

SUBMARINER :Water deeper than 300 meters. With rotating outer ring to facilitate the

calculation of time

GMT MASTER : Not only to display two time zones simultaneously the time clock can be independently moved to another time zone, without moving the minute hand and second hand.

COSMOGRAPH :As a multi-functional watches, can meet the engineering, sports and business and other needs.

1. Pocket & Purse Watch (Jeweler y)2. Wrist Watch (Premium & Sports)

Product Classification

With following Features :

Accuracy (Chronometer) Quality (Swiss Made) Design (1933, The Masterpiece of Watch

Championship) All Proof (Greatest Triumph in Watch

Making)

Channel development of Rolex by following examples: 1905 imported movement ,case & dials. After

assembled in Clerkenwell then retailers sales using their name on the dial.

Creating foreign subsidiaries in 1920. Via International Red Cross Prisoner of war

Channel Distribution

Executing an effective channel sales strategy is a critical component of a successful channel business endeavor. Its formulation and design depends on thorough and careful analysis and planning. It follows certain steps that begin with understanding your channels, down to the continuous management of recruited partners.

Probably one of the most vital and challenging steps in formulating channel sales strategy is selecting the potential channel partners.

Rolex use Brand Ambassador to promote its Product

Swiss Water Polo Team (1930)

Swiss Alpinist Team

Newspaper

Promotion

Promotion is one of the four elements of marketing mix (product, price, promotion, distribution). It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision

Strengths•Quality•Commitment to Excellence : The Rolex name itself is well established•Reputation : Well known name. •Manage demand•Swiss-Made : It is considered a luxurious item•Mechanical Movement•Advertising•Loyal customers•Market share leadership•Unique products•Strong financial position•High R&D•Innovation

Weaknesses• Style limitations• High price limits market• Myopic Management

Opportunities

•Expansion of Luxury Brands•Lower Price Levels•Market Share Snapshot•Maintain Exclusivity of Brand

Threats•Desirability Diminished Relative to other Luxury Brands•Change in trend : Cheaper technology , Economic slowdown•Product substitution•Expensive, flashy items are seen as wasteful and frivolous

SWOT of Rolex

Conclusion