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Case Study on “Rolex Marketing”
Muhammad Mostafizur Rahaman
Contents
Product Classification
Market Segmentation
Market Strategy
Marketing of Rolex
Background of Rolex watch
Channel Distribution & Promotion
Obelisk Shaped Sundials (Egypt)
Mechanical Clock (Italy & England Mid Fourteenth Century)
Wrist Watch (Queen of Naples)
Over the 700 years – Swiss Jura
Background of watchIt is difficult to imagine a world without clocks. People in the modern economy depends on the ability to measure time.
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 if 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, at Nurnberg in
Germany.
Wilsdorf and Alfred James Davis,Wilsdorf and Davis Ltd in 1905.
In 1912 Wilsdorf signed a deal for $500,000 to buy wristwatch
movement from Aegler.
Around this time, legend has it that Wilsdorf came up with the name Rolex
Wilsdorf started to use the word “Rolex” on the dials.
The name Rolex is recognized around the world.
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
Brand Development
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
Rolex can Build a strong Brand Image by :
Single Market Strategy (Rich, Athletes, Celebrities Etc)
First in Strategy (Waterproof Patent)
Market Opportunist (Harwood’s Company)
Marketing strategy
The following Marketing Strategy Rolex follow to get a sustainable position in the market:
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
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
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.
Pocket & Purse Watch (Jeweler y)
Wrist Watch (Premium & Sports)
Product Classification
Accuracy (Chronometer)
Quality (Swiss Made)
Design (1933, The Masterpiece of Watch Championship)
All Proof (Greatest Triumph in Watch Making)
Product With following Features :
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 Teama 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
Conclusion
Rolex should introduce separate product lines with different brand identities under the Rolex umbrella.
Two things about the way we make our watches that haven't change since started.
Owning one is al most as satisfying as making one.
