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Rolex Presentation

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Sarah Al.

on 1 February 2015

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Transcript of Rolex Presentation

Sarah Alajmi - 137294392

Mariam Serrokh – 1385239

Tendai Chidawanyika - 1409785

Osai Jalloh - 1387810

Astridah Banda - 1389084

Table of Content
1. Rolex Key Timeline

2. Brand Overview

3. Uniqueness of Rolex

4. PEST Analysis

5. Industry Analysis

6. Competitor Analysis

7. Marketing Mix

8. Value Chain Analysis

9. Market Segmentation

10. External Analysis – SWOT

11. Conclusion

12. Recommendations

13. Reference List

Rolex Key Timeline
Brand Overview
Oyster Collection

Cellini Collection


170 models and 3,200 combinations

2000 watches are made on a daily basis



Uniqueness of Rolex
The engine of the watch

Made from various manufactured components

Guarantees long-term high performance.

Undergoes an “exacting” process

Rolex movement becomes a certified Swiss chronometer. 


The 4130 Movement
Uniqueness of Rolex
904L Steel
First company to use this steel

High-cost steel

Complicated to machines

Insensitive to corrosion

Holds resilience and preserves beauty in sever conditions


(Rolex, 2014)
PEST Analysis
E
S
T
Recession

Exchange rates

Prices for precious metals


Fashion Trend

Social Status

Ethical issues “Blood Diamonds”


Innovation

Reduced production cost

Industry Analysis
(Mintel, 2014)
Estimated UK sales increased from £987 million in 2009 to £1,079 million in September 2014.


This is a 4.6% market growth in the watch industry.


Market Share
Source: (Worldwatchreport, 2014)

Most Searched Product
Source: (Worldwatchreport, 2014)

2012
2013
Perceptual Map
Porter’s Five Forces

Direct Competitors
18.4% market share in 2012

Targets young and ambitious individuals


9% market share 2012

Targets professionals

Indirect Competitors
Smart Watch
Smart Phone
Source: (Mintel, 2014)
Marketing Mix - 4Ps

Exceptional wristwatch

Symbolizes:

- Excellence

- High performance

- Prestige

- Innovation

Product
(Mintel, 2012)
Vary depending on the model

The cheapest category £3,000 - £10,000.

Standard category: : £11,000 - £40,000.

Expensive watches: from £50,000 up to millions

No price reductions


Price
Place
Exclusive distribution

Stores located in prestigious areas

Globally, Rolex opened 111 stores

No online sale

www.rolex.com

Promotion
Printed adverts on magazines

Celebrity Endorsement

Global Sports & cultural events sponsorships


Value Chain Analysis



Privately held independently run entity

Respected, admired, valued and globally known

Discreet and Obsessed with quality control

Extremely competent and almost obsessively organized 

Meticulous security checks




Firm Infrastructure


Total of 2800 employees

Rolex chemistry labs full of highly trained scientists

Army of gemologists


Human Resources Management
Technology Department
Internal Research and Development Department

Extremely well-equipped professional science labs



Has its own science lab

Movements are hand assembled and tested

Virtually everything made in house

Diamonds and precious stones are hand selected and hand set.

One watch takes a year


Operations
Inbound Logistics
High security in transportation


Sales through Official Rolex Retailers

No online sales

Two watch sales a year per retailer

Hybrid Advertising Strategy

Social media, celebrities, opinion leaders and sports icons


Marketing
Servicing
Cancels warranty for unauthorized third party parts and repairs

Two year service guarantee
Market Segmentation
Demographics
on income basis
AIRKING
(Middle Class)
OYSTER
(Upper Class)
DAYATONA
(Upper Middle Class)
Strong financial position

Strong brand image

Celebrity endorsements

Maintain innovative reputation


Competition from several premium watches

No online sale

Experimenting with different models

Target younger generation

Produce smart watches

Rolex’s limited dealership lead to consumers switching over

Impact of counterfeits on the brand image


Conclusion
One of the most valuable and influential luxury brands in the world with brand value of 5.1 billion, market share of 32.4% and sales of 3.1 billion in the watch industry.


Its loyal group of customers are 35 years old and over who are successful and affluent individuals.


Maintained its luxurious brand image through excellence, innovation, performance, exclusive distribution and prestige


Rolex is an active business in supporting the environment, exploration, arts and sports through sponsorships


Recommendations
It needs to increase product range by producing modern designs to attract young affluent customers through limited edition ranges in order to engage and test the market. 


It needs to consider partnering with well-known designers for limited editions as this will create a buzz, freshen the image and attract new customers who are fans of those particular designers.


It needs to connect more with women as they make the most jewellery and watch purchases. It should consider more female ambassadors of high social standing, sponsor more female focused sport events as its image campaigns focus mostly on males.

THE
END
Reference List
Beckertime.com, (2014). The Evolution & History of Rolex. [online] Available at: http://beckertime.com/the-evolution-history-of-rolex/ [Accessed 8Nov. 2014].

Boundless, (n.d.) “Developing a Market Segmentation.” Boundless Marketing. Boundless, 14 Nov. 2014. Retrieved 14 Nov. 2014 from https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/consumer-marketing-4/market-segmentation-36/developing-a-market-segmentation-188-4065/

Cuttingsjewellers.co.uk, (2014). Unique Characteristics of a Rolex Watch. [online] Available at: http://cuttingsjewellers.co.uk/article-page.php?id=9 [Accessed 12 Nov. 2014].

Euromonitor international, (2014). Smart watches not ready to take on the tradition watch, Available: (Online) https://www.portal.euromonitor.com/portal/analysis/relatedtab (Assessed 11 November 2014)

Faqs.org, (2014), ROLEX S.A. – Patent applications. [online] Available at: http://www.faqs.org/patents/assignee/rolex-sa/ [Accessed 16 Nov. 2014].

Federation of the Swiss Watch Industry FH, (2013) The Swiss and world watchmaking industry in 2013. [online] Available at: http://www.fhs.ch/file/59/Watchmaking_2013.pdf [Accessed 13 Nov. 2014].

Formula1.com, (2014). Rolex signs global partnership with Formula 1™. [online] Available at: http://www.formula1.com/news/headlines/2012/12/14149.html [Accessed 16 Nov. 2014].

Jack, V., Rottman, L., Dill, K., Dill, K., Kalla, S., Barrington, R., Doerr, E., Rottman, L. and Solomon, M. (2014). Rolex on the Forbes World's Most Valuable Brands List. [online] Forbes. Available at: http://www.forbes.com/companies/rolex/ [Accessed 23 Nov. 2014].

Jobber, D. (2010) Principles and Practice of Marketing, McGraw-Hill. 6th ed

 M-comm, (2014). Decoding the Rolex: Supply, Demand, And Value. [online] Available at: http://m-comm.com/apd/a.php?a=1644 [Accessed 12 Nov. 2014].

Mintel, (2012). Watches and Jewellery - UK - September 2012. [Online] Available at: http://academic.mintel.com/display/637425/ [Accessed 19 Nov. 2014].

Mintel, (2014). Watches and Jewellery Retailing - UK - September 2014. [online] Available at: http://academic.mintel.com/display/679470/ [Accessed 17 Nov. 2014].

Rolex, (2014). Dealers locator. [online] Available at: http://www.rolex.com/rolex-dealers/dealer-locator.html [Accessed 13 Nov. 2014].

Rolex, (2014). Discover more on Rolex.com. [online] Rolex. Available at: http://www.rolex.com/footer/legal.html [Accessed 12 Nov. 2014].

Rolex, (2014). History 2000 - 2013. [online] Rolex. Available at: http://www.rolex.com/about-rolex/rolex-history/2000-2013.html [Accessed 13 Nov. 2014].

Sciedu.ca, (2012). Consumption Style among Young Adults toward Their Shopping Behavior. [online] Available at: http://www.sciedu.ca/journal/index.php/bmr/article/viewFile/1934/1084 [Accessed 15 Nov. 2014].

Thecounterfeitreport.com, (2014). The Counterfeit Report. [online] Available at: https://thecounterfeitreport.com/product/118/Rolex-Submariner-Watches.html [Accessed 12 Nov. 2014].

Worldwatchreport.com, (2014). Report contents | WorldWatchReport. [Online] Available at: http://www.worldwatchreport.com/about/report-contents/ [Accessed 20 Nov. 2014].

Wthejournal, (2014). Swiss watchmaking: key figures - WtheJournal - all about high-end watches. [online] Available at: http://www.wthejournal.com/en/pages/swiss-watch-industry-figures [Accessed 14 Nov. 2014].



Market Segmentation
Behavioral

on lifestyle basis
Rolex Submariner

(Divers Watch)
Rolex Explorer
Homeage to Glodsmith Benvenuto Cellini

Painter, sculptor, musician

Rolex Cellini
(Rolex, 2014)
(Beckertime, 2014)
Marketing Management
BMKT601

(Wthejournal, 2014)
£ 5,350.00
£ 30,500.00
£ 220,950.00

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