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Social-Media-Individual-Assignment
1. Masters Programmes
Submitted by: 1464519
Module Title: Marketing Through Social Media
Module Code: IB845K
Date/Year of Module: 2014-2015
Submission Deadline: April 7, 2015
Company: Rolex and TAG Heuer
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2. A key element in the luxury industry is to provide value to its customers
(Ko, 2012). As a means to constitute customer assets through effective
communication with consumers, luxury brands have tilted their eyes
towards social media (Ko, 2012). Marketing communication using social
media such as Twitter, Facebook and YouTube are used as take-off tools
for luxury fashion brands (Ko, 2012). Luxury watch brands such as
‘Rolex’ and ‘TAG Heuer’ have taken up social media as a platform to
communicate with the customers. Social media is extremely popular
especially among the young adults (under 40 years) who have actually
grown up with the new communication technologies that are also
progressively very intuitive and user-friendly which in turn increases
their popularity (Phan, 2011).
In 2012, Rolex decided to put a segment of its venerable advertising
budget into developing a YouTube channel (Adams, 2012). Rolex
currently uses social media platforms like Facebook, YouTube, Pinterest,
Youku and Douban (Rolex Manufacturing Company, 2013). Product
showcase and product associations are some customer association
attributes that Rolex focuses over social media. ‘Rolex Rendezvous’ is an
interview series by Vijay Amritraj, attempting to converge a focal point
of how its endorsers have a tale with every Rolex (Rolex Magazine,
2012). The 109-year-old brand engages in Facebook interactions with
posts such as; images of racecars, tout its watches’ ability to withstand
amazing depths underwater, and showcases new product releases and
features (Fleschner, 2011).
TAG Heuer began its social media endeavours in 2010, as a 150th
anniversary (Florent Bondoux, IC-Agency, 2010). Currently uses
platforms like Facebook, YouTube, Instagram, Google+ and Tumblr
(TAG Heuer, 2013). TAG Heuer focuses on communicating ambassador
associations, partnerships primarily with motor sports and attempts to
attach history of the company and the brand. Social Media interactions
focus on product discussions over Tumblr and stress is made on
associating with the youth, which is the target market of the brand. In a
study carried out by NYU Stern Business School, TAG Heuer and
Tiffany rank high in digital competence. The study also suggested that,
“Luxury watch brand TAG Heuer was the only watch brand to rank in the
Genius category with great search optimization and thoughtful user
3. interface lift TAG Heuer over mega-brand Rolex (Lieberman, 2013).”
Luxury brands tend to work on brand perception and customer
engagement over social media. Both Rolex and TAG Heuer stream
resourceful campaigns working on image of the brand and its associations
with the elite target market. Luxury brands rich in its heritage adopt
content-based marketing (Fleschner, 2011). Rolex’s content marketing
strategy gives it the opportunity to use stunning imagery and a wide reach
of social media to get its core message out to a larger audience
(Fleschner, 2011).
Analyses of the campaigns:
Rolex Rendezvous
Rolex Rendezvous is a series of interviews by Vijay Amritraj and is
posted on the Rolex’s YouTube channel. Interviewee’s include Roger
Federer, Tiger Woods and Plácido Domingo. The campaign revolves
around association with Rolex, its partnership with great athletes and
artists to inspire future generations.
Rolex Rendezvous can be analysed using the seven-step framework of
social media marketing developed by Kumar and Mirchandani (Kumar,
2012). The first step is monitoring the conversation, wherein existing
engagement is analysed and the conversations about Rolex and its
initiatives on social media are monitored. The second step is to identify
influential individuals, under which Rolex identified influential
individuals who could associate with the Rolex brand value. Third step of
identifying factors shared by influential individuals. Rolex identified the
factors such as strong associations with the brand, utmost message spread
and a social appeal. The fourth step is of locating these potential
influencers, wherein brand ambassadors of Rolex like Vijay Amritraj,
Roger Federer, Tiger Woods and Plácido Domingo were identified with
converging factors to the campaign. The fifth is to recruit those
influencers with interests relevant to the campaign. These brand
ambassadors helped associate with the ‘Tale of Rolex’ and also would be
strong cords of attachments with the Rolex family. The sixth step is to
4. incentivize those influencers to spread a positive word of mouth. Rolex
has always been in close association with its brand ambassadors and
endorsers to keep the company values and its initiatives linked. Seventh
step of recapping the rewards from increasing effective social campaigns
has been conveyed using the campaign itself. The interviewer Vijay
Amritraj brings about the discussion with the interviewee’s on how Rolex
and its initiatives have been supportive of the athletes and the artists in
different ways.
The campaign pays attention to detail and communication over social
media. The return on investment (ROI) of the campaign is credible,
helping Rolex initiate social media marketing (Fleschner, 2011). In these
exclusive conversations, members of the Rolex family discuss passion for
their work, how they remain motivated and disciplined, and how they
each define success. Artists and athletes, these men and women strive
every day to achieve what others only hope for -- living a life devoted to
following their dreams (Rolex Manufactuirng Company, 2012).
TAG Heuer Heritage:
Launched in February 2015, the inspirational timeline series features
eleven videos on the TAG Heuer YouTube channel showcasing their
heritage, achievements and associations. It starts with the founding year
i.e. 1860 and goes up till 2015 (TAG Heuer Heritage, 2015). The
campaign creates a nostalgic connection, showcasing manufacturing
breakthroughs, legendary watch collections and, industrial and sports
associations (TAG Heuer Heritage, 2015).
Consumers in today’s life and age are no longer mere passive recipients
in the marketing exchange process (Richard Hannaa, 2011). Today, there
is an increasing level of active role that customers play in co-creating
everything from product design to promotional messages (Richard
Hannaa, 2011). According to an AdWeek report, The primary goal, with
the agency Rokkan helping to produce online content, is to increase the
Swiss watchmaker’s share of earned media impressions helping to
produce online content (Fisher, 2013). To achieve the task of earned
social media impressions TAG Heuer has implemented the lessons from
the study on the Grammy Awards (Richard Hannaa, 2011).
5. A critical step in the development of a social media strategy is to
visualize the ecosystem, which is the first lesson from the study. The
ecosystem needs to be visualized in terms of the three types of media:
owned, paid, and earned; allowing marketer to develop a clear idea as to
which social media platform would be more useful (Richard Hannaa,
2011). TAG Heuer has used this lesson to its advantage focusing on
earned media impressions and associations with the heritage.
The second lesson learnt from the Grammy Awards study was to identify
and track key performance indicators. Marketers with a social media
presence should focus on conversion tracking of downstream metrics
such as sales to the extent that it is possible, in addition to those metrics
that indicate brand lift and brand engagement (Richard Hannaa, 2011).
TAG Heuer Heritage focused on having a balance in the communication
and attempted to measure the success of the campaign with the
Baselworld launch in March 2015 (LVMH, 2015). TAG Heuer is also
one of the only luxury brands to use ‘f-commerce’ (TAH Heuer, 2015).
TAG Heuer Heritage campaign begins with the story about the
incorporation of TAG Heuer, which is the third lesson learnt from the
study. For the Grammy Awards, story is ‘We’re all fans’ (Richard
Hannaa, 2011) and with the Swiss luxury watch maker the story is about
its heritage and its achievements. TAG Heuer has effectively framed a
story around its brand taking into account its vast heritage over time and
timed its achievements to lift brand image.
The next lesson from the Grammy Awards study is; Social media does
not require elaborate budgets. The strategy should be, to take advantage
of what is owned and what is available for free. Social media is about
users and being connected to other users; it is not about significant
investments in expensive production and media (Richard Hannaa, 2011).
TAG Heuer has adapted this learning with its strategy to focus on earned
social media impressions with promotions linked to
#DontCrackUnderPressure.
The last lesson from the study is about being unique. The element of
uniqueness and authenticity will give consumers a reason for engaging
electronically and be a great weapon against boredom: the one sin for
6. which there is no forgiveness online (Kaplan, 2010). TAG Heuer links
heritage to uniqueness and gives an opportunity to the social media user
to explore and personify.
This study has helped us analyse the effectiveness of the campaign ‘TAG
Heuer Heritage.’ The campaign has incorporated the lessons and is on the
fast track of earned social media impressions. The campaign was able to
generate a social buzz and was more effective than the previous
campaigns by the company (Lieberman, 2013).
Learning and Outcomes:
Customer engagement behaviours go beyond transactions, and may be
specifically defined as a customer’s behavioural manifestations that have
a brand or firm focus, beyond purchase, resulting from motivational
drivers (Doorn, 2010). Rolex and its social media campaigns can be
analysed on the basis of managing customer engagement behaviours, as it
is important to maintain and nurture relationships (Doorn, 2010).
The first step is to identify engaging individual and customer behaviours.
Rolex uses a more systematic and comprehensive approach in identifying
different locations and channels where CEB manifests. The strategy
aligns social media communications in line with Rolex’s brand image and
principles. Rolex Rendezvous directionally is aimed at creating
idealization and relating the ‘Tale of Rolex’ to the ‘World of Rolex.’
Rolex has used influential personalities in order to transfer a strong
manifest to its customers and potential consumers (futuristic outlook) to
associate with the brand and its rich culture.
The second step is to evaluate the engagement manifestations. Rolex has
chalked the short-term and long-term objectives of its social media
engagement (Rolex Manufacturing Company, 2013). Rolex creates a
strong valence and makes a comprehensive use of social media channels,
to optimally manifest engagement cycles with its consumers. Rolex
invests widely in talent and values of the brand engagement with its
customers. ‘Rolex Mentor and Protégé Arts Initiative- One year can
inspire a lifetime’ aims at young talent engagement. The campaign
identifies the need of these young artists to; shape their vision, gain
perspective, perfect their craft and work with a master (Rolex Mentor and
7. Protégé Arts Initiative- One year can inspire a lifetime, 2013). It brings
artistic masters from seven different disciplines together with highly
promising young artists for a year of creative collaboration in a one-to-
one mentoring relationship (Rolex Mentor and Protégé Arts Initiative-
One year can inspire a lifetime, 2013). Hence, Rolex creates a strong
valence and promotes inspiration program over social media inviting
individuals backing them with the company’s culture and belief.
The third step is to act on customers’ engagement behaviours. Rolex has
leveraged CEB both internally and externally. The World of Rolex
endeavoured exploration for James Cameron, best known as an Oscar-
winning filmmaker, who is also an intrepid explorer, inventor and avid
creator of cutting edge technology (Rolex Manufacturing Company,
2012). A deep sea challenge expedition by James Cameron light the spirit
of adventure in Rolex with their innate passion and the belief to reach
beyond limits (Rolex Manufacturing Company, 2012). Internally
leveraging resources to develop a watch for James Cameron’s
expenditure and, externally stimulating passion and courage to many
future customers’ with challenging endeavours.
Rolex has been successful in managing customer engagement with its
campaigns and initiatives. The analysis helps understand some of the
shortcomings, like Rolex still doesn’t use ‘f-commerce’ like TAG Heuer
and Tissot, which are also luxury watch brands. Rolex has not been able
to use Baselworld launches to create a followership.
Analysis of the social media campaigns of TAG Heuer on the basis of the
Customer Engagement Behaviour suggests that, TAG Heuer wisely
chalks the first step of identifying engaging individuals and customer
behaviour. TAG Heuer makes effective use of the social media platforms.
It has identified different platforms and channels where CEB manifests
(TAG Heuer, 2013). TAG Heuer spreads engagement horizons over
social platforms such as Facebook actively. It uses interactive imagery to
create product use and how the product adds to the style quotient. TAG
Heuer has identified need of association and uses the product and its
motor sport associations to engage over social media. The 150-year-old
brand identifies the need for culture and history, which it has addressed to
lately with its Heritage campaign.
8. The second step under the management of Customer Engagement
Behaviour is to evaluate the engagement manifestations. TAG Heuer
earmarks its long-term and short-term objectives with the changes in its
social media management shifting to Rokkan (Reuters, 2013). In 2012,
the luxury watch brand said it would be ramping up its CRM activity in
an attempt to achieve a sales uplift with more targeted communications
(Fisher, 2013). With its recent focus on social platforms like Facebook to
engage in immediate feedback about product and active page fill with re-
iteration of campaigns over YouTube has helped create a buzz market
effect. Its focus on the associations and developments in motor sports has
helped manifest engagements.
The third step is to act on the customers’ engagement behaviour. TAG
Heuer has leveraged internal CEB launching newer designs (LVMH,
2015)and its communications team being dedicated on the task of earned
social media (Fisher, 2013). Externally in the recent times with increased
social media communications and the company gaining mileage over the
Baselworld launch platform, it has moved to a superior luxury and
technology watchmaker category. Leveraging the CEB both internally
and externally, TAG Heuer has manifested engagement opportunities and
magnitude well in with its 2015 campaigns, which include Heritage and
the Baselworld.
In conclusion the customer engagement behaviour has helped analyze a
key strategic step forward for luxury brands as such with a high value and
heritage attached to them. The use of brand ambassadors and the ability
to manifest the core message of the brand can be displayed beyond
product. User generated content of their feeling and associations with the
brand prove contributive to creating associations and also building
relationships over time. Luxury brand over social media still have lesser
options of sale, which should be one of the key areas to look for in the
coming times. Social media use to gain customer feedback on the product
may not be a necessity for the industry, but is an important element with
can be manifested internally in the future. A dedicated and outsourced
social media team is a fruitful option for the luxury brands, whose aim is
to lift the brand over social media and not conversion in revenue. For
luxury brands, which are already present over social media the CEB
manifestation model, would be more conducive to growth over social
9. platforms. For luxury brands, which are coming to social media they
should adopt the practice of having a dedicated social media team and
work on the overall branding of the product and not on short term
manifestations. Lesser investments can also give a higher return on
investment.
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