Rolex Remains A Brand Designer Of Watches (Case Study Sample)

Rolex Company is a British Swiss watch maker based on Geneva. Founded in 1905, the watches are made from the best raw materials assembled with utmost attention to the detail. Rolex remains a brand designer of watches. According to Salomon (2015), Rolex designs, manufactures and distributes luxury wrist watches sold under trade labels Tudor and Rolex. The company brand still holds highly in the global market according to the Forbes list. Originally called Wilsdorf and Davis, it shifted its headquarters to Geneva. The company’s main competitors include Patek Philippe, Penerai, and Omega. Rolex is among the first producers of quality wrist watches, including the self-winding watch and currently manufactures and distributes over 700,000 mechanical chronometers globally (Suhaimi et al., 2018). The primary objective of Rolex Company is to provide high and luxury hand watches through innovative technologies and designs. The company’s mission and vision are based on its continued commitment to customer satisfaction, and ensuring that the high quality products meet the changing consumer demands. Producing over 2000 watches daily and earning about 3 billion from the sales, the company’s strategic and business approaches remain exquisite. This report provides a situational and landscape analysis of watches industry, focusing on Rolex Company’s internal and external competitive advantage. This report will also evaluate how paid, owned and earned media has improved Role Company’s brand image over the years, the use of retail technologies and consumer value proposition. Finally, this report will focus on the marketing strategies, especially Rolex Company’s advanced promotional strategies and evaluate approaches for measuring success.
Landscape Analysis
The dynamics in the watch industry innovation have played key roles in the changes in the designs of watches. Previously many consumers thought watches were jewelleries and were purchased in jewelry stores. However, technological developments in the industry have reduced the complex hand-made mechanical assembly. Swiss watches industry remains one of the most expensive and well-established markets globally. However, there are many barriers to entry into the Swiss market, leading to a lower threat of new entrants. This has also made established companies, like Rolex to maintain stronger relationships with the distributors and customers (Salomon, 2015). Because of the strong market brand value, Rolex selectively chooses its distributors to help maintain its strong brand and market position. There are no serious or close substitutes in the Swiss Watch market. The Swiss watches also continue to dominate the global market because of their superior quality. The Swiss watch industry also consists of a high quality workforce and industrial fabric (Suhaimi et al., 2018). Historically, the Swiss watch industry has developed in a specialized infrastructure, where the subcontractors and suppliers deliver movements and external parts to the assemblers to make the final product. The industry is integrated through a vertical structure. Besides, the Swiss watch industry also consists of a wide range of products, enabling consumers to compare the quality of the watches because of the access to comprehensive range of products, including sport watches, fashion watches, elegant and classic watches (Batat & Khochman (2021). The consumers within the watch industry also have access to mechanical or quartz multifunctional chronometers. The industry also has a constant stream of new watch brands. The products from the Swiss watch industry are mainly exported to the Asian market, while 31% are exported to Europe (Roll, 2019). The top three markets for the Swiss watches are Hong Kong, the United States and China.
Situational Analysis
Rolex Company remains one of the most famous watch brands globally, enjoying a long history of technological innovation and excellence. The company’s products are associated with mystique and accomplishments. Rolex products are recognized globally for their luxury features. The company’s products are mainly sold in the United States, Canada, China and Hong Kong. Rolex watches’ high prices are due to their high quality, the quality of the crafts and quality materials, meeting the changing consumer needs. In 2018, Rolex Company was named the most reputable company, enhancing consumer trust and confidence on the quality of the products. It also indicates Rolex’s consistent dedication to quality and value addition to their product brands compared to other competitors globally (Salomon, 2015). The company has always been committed to technological innovation, meeting the consumer needs. Due to the company’s high brand value, Rolex relies on official distributors in the US, Chinese, Hong Kong and Canadian market, guaranteeing the consumers quality. This also helps the company to prevent the consumers from purchasing counterfeit products in the local markets. Rolex watches are also sold in the company’s official website and street markets, targeting high income earners. Therefore, Rolex watches are categorized as luxury primarily designed for the elites and high-income earners. Based on the quality and the company revenues, Rolex Company currently holds 13% of the market share. This implies that Rolex brand value has resulted in increased sales and profitability. According to Batat & Khochman (2021), Rolex was estimated to be $7.5 billion, almost $4billion above the closest competitor. As mentioned earlier, Rolex main competitors include Omega, Tag Heur, Cartier and Patek Philippe. Cartier is known for the manufacture of custom luxury watches (Salomon, 2015). However, Rolex brand and those of the competitors are similar in many ways because they are of high quality, and are highly priced, although Rolex continues to hold a higher competitive advantage.
External
Most consumers tend to choose Rolex watches over the competitors because of numerous reasons, including the strong brand, and having been a symbol of prestige for a century. The strong brand value, quality and name supersede the competitors in the market (Suhaimi et al., 2018). Rolex mainly target men with its popular collections. Therefore, Rolex brand is mainly positioned to attract wealthy male consumers. This is because the brand has, for centuries, remained a master of prestige and social class. Rolex watches are synonymous to influence, success and wealth to many consumers. The company’s designers are well-aware of the target market, and therefore try to meet all their desires. The prices of Rolex watches directly related to their quality and design perfections. Most consumers also consider its products as samples of technical excellence. The company has successfully implemented strategic marketing approaches, focusing on the technical excellence in the products. The adverts make special emphasis to the quality of the products, chronometer status, using visual images in listing the product strengths, differentiating it from the competitors. By detailing every detail about product quality, Rolex brand positioning has helped the company to market the legitimacy of their product excellence (Botros & Said, 2021). With sales representative in its key markets, the partners offer special services to the consumers, including customizing the buyer’s name on the back of the watch. Therefore, Rolex brand positioning has significantly increased recognisability. Through strategic brand positioning, Rolex watches have become brand icons. Besides, Rolex brand are easily recognized by the consumers in the market by the product name, attributes, price and packaging. The history, fashion and reputation of the brand have also been part of the company’s advertising strategy. According to Botros & Said (2021), Rolex Company’s brand positioning has always been emphasizing on the consumer experiences highlighting the product’s physical qualities. The brand positioning and communication of the product attributes have enhanced the brand reception and increased revenue generation, because of its informational nature, creating a higher brand loyalty.