Case Study on “Rolex Marketing Muhammad Mostafizur Rahaman
Contents Background of the Case Branding of Rolex Marketing Strategy Market Segmentation Product Classification & FeaturesChannel Distribution & Promotion
Background of watchIt 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
Switzerland & 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. % of Watch Production Total % of Mechanical Watch Production Switzerland Japan Hong Kong Others Switzerland Japan Hong Kong Others 15% 19% 0% 9% 4% 55% 22% 77%1993 World Production of Watch and Movement in Value (Millions Swiss Francs)
Hans Wilsdorf & Rolex 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.
Branding Developing a brand strategy can be one of the most difficult steps in the marketing plan process. Its often the element that causes most businesses the biggest challenge, but its 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.
Rolex as a Brand 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)
Marketing strategyMarketing strategy is a process that can allow an organization to concentrate itslimited resources on the greatest opportunities to increase sales and achieve asustainable competitive advantage. A marketing strategy should be centered aroundthe key concept that customer satisfaction is the main goal. 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)
Brand Ambassador Swiss Made Luxury MarketExclusive Customer Luxury Adventure Fashion Prestige Sports Bond 007
Product Classification - RolexEXPLORER: 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 thecalculation of timeGMT MASTER : Not only to display two time zonessimultaneously the time clock can be independently moved toanother time zone, without moving the minute hand and secondhand.COSMOGRAPH :As a multi-functional watches, can meet theengineering, sports and business and other needs.
Product Classification1. Pocket & Purse Watch (Jeweler y)2. Wrist Watch (Premium & Sports)With following Features : Accuracy (Chronometer) Quality (Swiss Made) Design (1933, The Masterpiece of Watch Championship) All Proof (Greatest Triumph in Watch Making)
Channel DistributionExecuting an effective channel sales strategy is a critical component of a successfulchannel business endeavor. Its formulation and design depends on thorough andcareful analysis and planning. It follows certain steps that begin with understandingyour channels, down to the continuous management of recruited partners.Probably one of the most vital and challenging steps in formulating channel salesstrategy is selecting the potential channel partners. 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
PromotionPromotion is one of the four elements of marketing mix(product, price, promotion, distribution). It is the communication link betweensellers and buyers for the purpose of influencing, informing, or persuading apotential buyers purchasing decision Rolex use Brand Ambassador to promote its Product Swiss Water Polo Team (1930) Swiss Alpinist Team Newspaper
SWOT of Rolex Strengths Weaknesses•Quality • Style limitations•Commitment to Excellence : The Rolex name • High price limits marketitself is well established • Myopic Management•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 Opportunities Threats •Desirability Diminished Relative to other•Expansion of Luxury Brands Luxury Brands•Lower Price Levels •Change in trend : Cheaper technology ,•Market Share Snapshot Economic slowdown•Maintain Exclusivity of Brand •Product substitution •Expensive, flashy items are seen as wasteful and frivolous