WatchIt is difficult to imagine a world without clocks. People in the modern economy depends on the ability to measure time.Firstly ,timekeeping goes back to the Egyptians, who thousands of years ago used large obelisk-shaped sundials to measure time.Secondly, Reliable time telling became increasingly important in medieval Europe.As such, clocks became increasingly sophisticated with the invention of the first mechanical clock in Italy and England around the mid fourteenth century.First wristwatch was commission piece by the queen of Naples in 1810 from Abraham-Louis Breguet (1747-1823)The rapid innovation of moving from a clock tower to a wristwatch worn by a queen was mirrored in the way a watch was manufactured and in the changing location of the industry.Mechanical clocks were a European monopoly for nearly 300 years.Over the course of 700 years the mechanical watch epicenter moved from Italy to Germany to France , to England to Geneva and finally to the Swiss Jura, where it remains today . In 1985 Switzerland had a 34% share of world exports of watches. During the following decade it maintained a 77% market share in the worldwide production of the mechanical watches.
Watch IndustryWatch making in Switzerland was introduced in the middle of the sixteenth century by the Huguenots(French refugees persecuted because of their Protestant faith)Around 1785 some 2000 persons worked in the watch making industry of Geneva and produced 85000 watches per year. Another 50000 watches were produced in the region of Neuchatel. Watch making was closely related to jewelry making. The better the watch the more jewels it contained.The late seventeenth and the late eighteenth centuries, the center if the world watch industry was Britain. The Swiss initially copying British style and design, putting British places of manufacture on them, and then exporting them as English watches. However by the 1790s a distinctive Swiss watch had emerged that featured a slim line and precision.By 1901 Switzerland was again the most efficient producer of mechanical watches.Arguably the watch industry benefited from Switzerland’s location in the center of Europe and its multilingual population, which made it easier for Switzerland to trade with the rest of the world.
Hans Wilsdorf & RolexHans Wilhelm Wilsdorf was born on March 22, 1881, in Kulmbach near Nurnberg in Germany.Initially Wilsdorf work for a pearl-trading company that graded pearls and found buyers for them.Wilsdorf sitched to a watch industry in 1900, working for CunoKorten , a highly profitable watch exporter.In 1903, at the age of 22, Wilsdorf moved to London to work for another watch making company.In London, Wilsdorf met Alfred James Davis, a wealthy lawyer and private investor. They started a watch trading company, 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 Roles while riding on the top deck of a bus in London.Wilsdorf started to use the word “Rolex” on the dials. The word Rolex was registered in Switzerland in 1908 and in London in 1912. This was a radical departure from previous convention by which retailers branded and manufactures produced. It took a decade for this change to be completed, nut by 1926 Wilsdorf demanded that all the Rolex watches carry the Rolex name.The name Rolex is recognized around the world. It has become an icon of beauty, quality, accuracy, style, and taste. While there are other fine manufacturers of timepieces, none has reached this pinnacle of public respect and acclaim.
Reliability & accuracy
Strengths: Well known name, It is considered a luxurious item, the Rolex name itself is well established. Weaknesses: Since a ROLEX is expensive it has a very exclusive market, Not many people can afford a ROLEX, and there seen more of a gift or celebration item. So a person will probably not buy multiple of them like a person would with a Timex.Opportunities: They could expand there basis, make a less expensive watch for the upper middle class, (Like Vera Wang and Dana Buchman did in Kohl's) This a huge opportunity for them to reach a larger market, more advertising on the internet. Threats: A change in trend, like how in the past year, expensive, flashy items are seen as wasteful and frivolous. Right now, being thrifty (or just looking like your being thrifty) is in so you can bet Rolex is hurting a bit.
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