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Rolex

Rolex
by

J Dada

on 5 December 2013

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Transcript of Rolex

Marketing Channel
Rolex has a vertical retail strategy and is sold in its own-branded stores, exclusive Rolex retailers, as well as through online retailers.Since Rolex has their retail stores, exclusive retail intermediaries, and online shopping intermediaries, they must also utilize a multi-level channel.
Target Market
Satisfying Wants & Needs
The Golden Rule:
1. Familiarity breeds content
Target
Market

Their targeted demographic are mainly men aged 25 – 54.

Affluent, high-income households

Large disposable income and spending power

Consumers who pride themselves in their personal appearance.


The company does have products targeted for women and in recent times the company is attempting to move away from targeting financially strong men to more aspirational and successful individuals irrespective of sex.
Intermediary Variables
Availability
Services
Cost
Pricing Strategy
Skimming
Common among luxury brands
Selling products above common price point to let customers know that their product is in a different class.
High prices demonstrate sense of confidence
No Discounts
Discounts diminish the image of the brand
Customers are willing to pay prestigious prices
History
Channel Participants
Short Channel Structure
Select group of channel participants
Exclusive jewelery stores + online
Brand-owned stores.
Variables
PRODUCT VARIABLES
COMPANY VARIABLES
Advertisement
ROLEX
Push Promotional
Strategy
Conflicts & Power
SWOT ANALYSIS
What we recommend
Some unauthorized dealers offer discounts
Resource scarcity conflict
Most retailers are on perpetual back order
positive effect : positive efficiency
Expert power
Perishability
Their products lack perishability
Bulk and Weight
Not a large variable
Unit Value
high
Making distribution and handling costs low relative to the value of the product
Degree of Standardization
Moderately high
hand crafted but on a large scale
Technical
In production
Products are fairly easy to use, but require a specific retailer for adjustments or repairs
Newness
Rolex has over a century of brand reputation
Prestige
Rolex's most prominent product variable
Size
Expertise allows them to exercise a substantial amount of power in the channel
High degree of flexibility in choosing channel structure
Financial Capacity
Large abundance of capital
Allowing Rolex to sell directly to consumers though its own branded stores

Managerial Expertise
With over a century of success, there is a great deal of experience allowing Rolex have a large degree of control over the channel structure
Objectives & Strategies
Offers a high degree of control
There are always retailers interested in selling Rolex

Rolex only uses certified retailers
Weaknesses
Strengths
Quality
Replicated in their Products, Advertisements and Customer Service
Commitment to excellence
Reputable brand
Advertising efforts
Customer retention
Financial position
Style limitations
High Price
Limits the market of available consumers
Myopic management
short-term financial prospects
All certified dealers provide expert service

Tuning, Adjustment, Repair
Not a factor when choosing intermediaries
the company has been around since 1905
•Revamp marketing strategy to appeal to a younger audience

•Lower cost

•Expand brand
Founder: Hans Wilsdorf and Alfred Davis in England
Geneva, Switzerland
Forbes: No. 57 on World's Most Powerful Global Brands
2,000 watches per day and 700,000 per year
$4.5 billion in 2012
Market Variables
Single Market Segment - concentration
LUXURY

Recession > Hong Kong, Singapore, Shanghai
Market Size
700,000 to 800,000 annually
Counterfeiters produce X10
2,800 employees
Market Density
California = actors, athletes, wealthy (5%)
20s to 34 and 50s
Market Behavior
"Collectors don't care what is going on inside the company. They just love Rolex," Aurel Bacs international co-head of Christie's watch department said from Geneva.
For every 10 looking at other brands they have 50 looking for Rolex.
Selecting Channel Members
Select reputable retail dealers
Wall Street Journal Advertising
Reflection of business
Trusted - trade secrets
Window displays expose
product to potential customers walking past their store
leading innovator
Full transcript