STUDY,ANALYZE AND UNDERSTAND THE BUSINESS AND MARKETING PRACTICES OF ROLEX WATCH COMPANY

TWO STAGES WERE IDENTIFIED-

1)DATA COLLECTION STAGE

2)ANALYSIS STAGE

INCLUDES DATA COLLECTED FROM VARIOUS RESOURCES REGARDING THE FOLLOWING:

1)ORIGIN,HISTORY OF COMPANY AND ITS GROWTH

2)FINANCIAL STATEMENT

3)FOUR P’S OF MARKETING-PRODUCT,PRICE,PLACE AND PROMOTION

4)CUSTOMER AND DEALER SURVEY

UNDERSTANDING THE IMPLICATIONS AND RELEVANCE OF DATA COLLECTED

DRAWING CONCLUSIONS ABOUT THE COMPANY’S BUSINESS AND MARKETING DECISION

FOUNDED BY HANS WILSDORF AND HIS BROTHER-IN- LAW ALFRED DAVIS IN 1905,IN LONDON

EARLIER KNOWN AS ‘WILSDORF AND DAVIS’

Rolex founder, Hans Wilsdorf

1908-WILSDORF REGISTERED THE TRADEMARK “ROLEX”

1910-OFFICIAL RECOGNITION GAINED FROM THE ‘BUREAU OFFICIAL’ IN BIENNE

1919-COMPANY MOVED TO SWITZERLAND(IN LA-CHAUX-de-FONDS)

15 JULY,1914-CHRONOMETER CERTIFICATE WAS AWARDED

1926-NEXT GENERATION OF ROLEX WAS BORN,THE ROLEX OYSTER

ON BASIS OF MICHAEL PORTER’S ‘FIVE FORCES MODEL’

“AN INDUSTRY’S PROFIT POTENTIAL IS LARGELY DETERMINED BY THE INTENSITY OF COMPETITIVE RIVALRY WITHIN THAT INDUSTRY”

POTENTIAL ENTRANTS

SUPPLIERS BUYERS

SUBSTITUTES

INDUSTRY COMPETITION

RIVALRY AMONG EXISTING FIRM

THREAT OF NEW ENTRANTS

THREAT OF NEW SUBSTITUTES

POWER OF SUPPLIERS POWER OF BUYERS

HOW EASILY A COMPETITOR CAN ENTER INTO MARKET

ROLEX-IT IS VERY LOW

BARRIERS TO ENTRY VERY HIGH

1.LARGE CAPITAL REQUIREMENT

2.STRONG BRAND PREFERENCE

ROLEX EXISTS AS A DOMINANT AND HIGHLY CONCENTRATED SUPPLIER

HIGH

CUSTOMER’S PURCHASES REPRESENT A MAJOR PORTION OF THE SELLER’S TOTAL REVENUE

HOW EASY THE PRODUCT CAN BE SUBSTITUTED

DEPENDS ON WILLINGNESS OF CUSTOMERS SUBSTITUTE AND RELATIVE PRICE AND QUALITY OF SUBSTITUTE

IN THE PRESENCE OF HIGH SWITCHING COSTS,CUSTOMERS ARE NOT LIKELY TO SUBSTITUTE

AS RIVALRY AMONG COMPETING FIRMS INTENSIFIES,INDUSTRY PROFITS DECLINE,IN SOME CASES TO THE POINT WHERE AN INDUSTRY BECOMES INHERENTLY UNATTRACTIVE

1)ON THE BASIS OF AGE-

ROLEX DAYDATE

(FOR YOUTH)

ROLEX DATEJUST

(FOR PROFFESIONAL)

ROLEX CELLINI

(FOR ELDERS)

2)ON THE BASIS OF INCOME

AIRKING

(LOWER SEGMENT)

OYSTER

(HIGHER SEGMENT

DAYTONA

(MIDDLE SEGMENT

-- a marketing strategy that emphasizes serving a specific market segment by achieving a certain position in buyers’ minds

• Attributes

• Price/quality

• Competitors

• Application

• Product user

• Product class

THE MAJOR PLAYER IN THE WATCH INDUSTRY MARKET IN WORLD ARE AS FOLLOWS-

FOUNDED IN 1847 BY LOUIS FRANCOIS CARTIER

BY 1890’S THE MODERN STYLE

APPEARED AND BECAME VERY

FASHIONABLE

ESTIMATED TURNOVER-

900MILLION EUROs

ESTIMATED AVERAGE VOLUME

-3,50,000 WATCHES PER YEAR

IN 1960,EDOUARD HEUER FOUNDED A WATCH MAKING WORKSHOP IN ST-LIMIER

THEY TRANSITIONED FROM A MANUFACTURER PRODUCING TECHNICALLY SOPHISTICATED WATCHES TO A LUXURY WATCH MANUFACTURER

TAG HEUR IS NOW IN

LVMH’S WATCHMAKING

BUSINESS UNIT,THE ONLY

COMPANY THAT IS

BREAKING EVEN

IN ITS EARLY YEARS,WILSDORF AND DAVS CONCENTRATED ON SELLING ONLY TWO TYPES OF WATCHES

1.POCKET WATCHES(DESIGNED FOR MEN)

2.TRAVEL CLOCKS(OR PURSE WATCHES)

COVERED IN EXOTIC LEATHER CASE

MADE OF SILVER WITH PORCELAIN DIAL

ROLEX WATCHES HAVE HELD THEIR VALUE WELL

ALMOST ALL OLDER ROLEX MODELS ARE VALUED ABOVE THEIR SELLING PRICE

MOST COLLECTIBLE ROLEXES SELL IN A RANGE OF BETWEEN $1,500-$20,000

ROLEX HAS MAINTAINED ITS BRAND IMAGE BY LIMITING PRODUCTION,EVEN AS DEMAND ROSE

1990-AS PART OF AN EFFORT TO CONTROL SALES OF THEIR GOODS IN THE SO-CALLED GRAY-MARKET,ROLEX CANCELLED AGREEMENTS WITH ABOUT 100 DEALERS

THE USE OF TESTIMONIALS HAS ALWAYS PLAYED A KEY ROLE IN ROLEX COMMUNICATION STRATEGY

FIRST ADVERTISEMENT IN 1927,SHOWED MERCEDES GLEITZE ALONG WITH ROLEX

USES SELECTIVE MARKETING STRATEGY THAT TARGETS VERY DIRECTLY THE DESIRED CUSTOMER

ALWAYS CHOSEN THE BEST PEOPLE OF THEIR CATEGORY TO REPRESENT THEM

ROGER FEDERER MAURICE BEJART

(DANCE CHOREOGRAPHER)

EDMUND HILLARY

(EXPLORER)

PEGGY FLEMING

(ICE SKATER)

ARNOLD PALMER

(GOLF PLAYER)

PLACIDO DOMINGO

(OPERA SINGER)

Rolex watch is a beautiful machine comprised of hundreds of precision parts all working in unison to precisely measure the escapement of time

Power delivered through the gear train by the mainspring is transmitted to the fast beating balance wheel, that due to its rapid arc of motion, is largely unaffected by external forces exerted upon it by the person wearing this fine tuned machine.

COLLETS

MICRO-STELLA NUTS

HAIRSPRING

BALANCE WHEEL-

HAIRSPRING-

MICRO-STELLA NUTS

allows the balance to vibrate at its astonishing rateis laser welded onto the collets

used to make minor timing adjustments.  If they are moved towards the centres of the balance wheel, the rate will speed up.  Moving them away from the censer will slow the rate down.

vibrates back and forth at a rate in excess of 28,800 beats per hour

ACTUAL PICTURES OF THE ROLEX 3135 MOVEMENT

HUGE FINACIAL CAPABILITIES

MANY TAKE OVERS TOOK PLACE AND HAS ALWEAYS BEEN SELF-FINANCED

takeover of Rolex Bienne might enable them to increase profitability and by the way their financial capacities.

WHICH HIGH BRAND WATCH COMPANY YOU WOULD LIKE TO OWN?

PREPARED BY

BITHIKANIKHIL ANANDAKANSHA SAPRAPRIYANKA YADAVAMRITAGAURAV PASSY