Ch. 7 - Business Marketing

Rolex is a very well rounded company. It has its own factory, science lab, and in-house foundry to make its own gold.  As a result, Rolex is able to say they make virtually everything in-house.

Regardless of that fact, Rolex still needs its suppliers. Rolex has preposterously high standards for the materials it buys from its suppliers. This includes raw materials like metals as well as precious stones such as diamonds, rubies, and emeralds. Pretty much all other component parts are made in-house. 

 Rolex has a massive gemological department whose goal it is to buy, test, arrange, and set diamonds and other precious stones in a range of Rolex models. The nature of buying these materials are formal and professional, unlike consumers.

In conclusion, Rolex could be categorized as a OEM company. Rolex is a company that buy materials such as steel (904L) to incorporate them into the products they produce for eventual sale.

Ch. 11- Developing and Managing Products

Rolex has been around for over 100 years. As we discussed before, Rolex introduced many new technologies and products in the early 20's. Over the years, the company kept pretty much the same portfolio of watches while constantly updating the past models - Quality modification.

PLC  - Product Life cycles:

Introductory Stage:

Rolex slowly introduced watches to the public rather than a full line at once. Because the brand was released in the beginning of the 20's everything was a bit slower than today. Only after 40 years of its creation, Rolex reached the the brand's 100,000th officially certified chronometer watch. Although by that time the word on Rolex quality had spread already.

Growth Stage: 

After being a successful during its introductory years, Rolex establish a name for itself as a reliable and precise brand. Always innovating, the brand became a pioneer in various aspects in the industry. Around the 50's, Rolex increased its product line introducing watches such as the Submariner, Milagauss and GMT.  As a result, sales increased significantly and the brand gained global recognition. Competition also increased, with brands such as AP, Omega and Patek growing fast as well.

Besides that, Rolex invested heavily in advertising.

Maturity Stage:

Rolex still is at the top of the chain in the watch industry. Although, the company has lost some ground in markets such as Asia, where the product is viewed as an "old people" watch, and the younger and richer generation prefer brands such as Omega.
 I don't believe Rolex reached maturity stage yet and will not at anytime soon. Rolex is the biggest watch company and most well know for over 100 years. Its too prestigious and its items still are desired by many.

Decline Stage:

Some models lost appeal to the current market. Watches smaller than 38 mm are not as appealing as before. As a strategy Rolex made smaller models bigger. One example is the Oyster Perpetual, that is now available at 39 mm. 

Ch. 8 - Segmenting and Targeting Markets

The market for Rolex is pretty specific: people with purchasing power that are willingness to invest a good amount of money in a watch. Not only a watch but a luxury accessory.

Rolex costumers are part of a market segment which is usually filled with collectors, artists and athletes. They all share one characteristic that includes them this segment: purchasing power.

Marketers for the company segment the market by demography, especially by income.
Income levels influences consumers needs and determine their buying power. These characteristics are relevant in the fine watch industry.

As an example in New York you can find a Rolex store or retailer all over the upper east side, where the income rate is the highest in the city. A clear example of Geo demographic segmentation. Characterized by potential costumers and lifestyle.

Olivia Palermo + Rolex Daytona

In the watch industry you have to have well-defined market segments. Sports watches and dress watches.

Rolex offers both and truly understands the needs of both segments. By giving options to its costumers Rolex increases market share and profits.

Positioning:

Rolex made us believe through its products that they are the best in the game. Potential costumers will always consider Rolex when buying an expensive watch. By being a pioneer in many segments of the industry, Rolex made us perceive the brand as the parameter of quality. 

The brand occupies number one spot in the watch industry over the years and it is most likely to stay this way.

Ch. 15- Marketing Communications

Over the years, Rolex has convinced us that what they make is the best in the industry. By introducing new technologies in the watch world and always using the best material available, Rolex has made a name for itself.

To reach its target market, Rolex uses mass communication. By using magazines, social media and lending its name to sports event, Rolex is able to hit a large but still selective audience.

When you receive a message from Rolex you decode the message by concluding that the product is target to a specific group. The use of a crown, celebrities and highlighting the expensive material used in the watch makes the consumer understand that the item is a one of a kind timepiece.

Promotion Goals:

Rolex recently released a new caliber, the 3255. Its a new generation of movements that promises to achieve new standards of performance, such as power reserve, precision, resistance and durability.
By informing all these new features, Rolex expects to draw in more clientele to this new product.

Caliber 3255

Secondly, Rolex tries to persuade consumers to buy their watches. By displaying all its competitive advantages, Rolex gains advantage over its competitors. These advantages include brand name, prestige of owning a Rolex, the ego satisfaction, as well as the super high quality of its watches.

Furthermore, Rolex reminds you that you are part of a selective group and you own a unique timepiece. By doing ads such as " The Rolex way", using acclaimed sports persons to talk about their watches and maintaining the leading position in the industry, they make a statement that costumers are making the right decision choosing Rolex.

Djokovic at the Rolex Masters of Monte Carlo

In conclusion Rolex uses fairs such as Baselworld to connect with the public, more specifically watch collectors and enthusiasts. This way Rolex exchanges information with their market and get feedback on their product. Increasing their relationship and improving their watches from the feedback.

Ch. 10 - Product Concepts

Rolex would be categorized as a shopping product. A expensive good, that usually gets compared to competitor brands before been purchased. In addition the watches are homogeneous products. They all have the same function, but at the end you don't necessarily go with the lowest-priced brand. In Rolex's case the costumer most likely will opt to buy a Rolex watch over his competitors because of the reliability and recognition of the brand.

Furthermore, Rolex watches can also go under the specialty products category. A person who wants to invest $ 10,000 and more in a watch most likely is looking for a very particular brand or model. Those watches are exclusive and bring with them a selective status.

Rolex triple date moon phase

The Company also has a quite nice product mix and offers different product lines: dress watches such as the Cellini collection or a sports line such as the Submariner and Daytona. Recently, Rolex has added some new products to a few collections such as the Yatch-Master in rose gold that has been really trendy these past few years.

In addition, Rolex is a global brand. The majority of its earnings comes from outside of Switzerland. Markets such as Asia, Europe and the U.S more specifically. 

As mentioned before the Rolex name was invented by Mr. Wilsdorf and is probably one of the strongest and boldest brand names in the world.  It is recognized everywhere as well the brand mark, the iconic Rolex crown. Those two elements by themselves indicate quality and are familiar to all costumers.

Ch. 17 Personal Selling and Sales Management

I believe purchasing a Rolex is a relatively easy buy. When one talks about a brand new Rolex one can talk about going to a store and how they will clear any questions one has related to the watch. Although watches can be a little bit more complicated when one talks about vintage or a rare time piece.

A watch sale gets more personal and more detailed when one is looking for a very specific watch.  For example, the Daytona Paul Newman. One needs to go to a collector or action house to find one. There one will have a much more detailed explanation as to why the watch is so iconic. A collector probably has more knowledge of the watch than a regular retail assistant, even though you are required to know the Rolex history in order to work at a Rolex store.

Qualified prospects, detailed explanation, and complexity of the goods are all factors of personal selling that are found in the watch industry sales force, but are better suited when applied to collective time pieces.

Detailed description of a "Paul Newman Daytona"

The experience of buying a unique watch includes all aspects of personal selling. 

On the video below one can have an idea of a detailed explanation that is expected when one has a personal selling experience buying a vintage Rolex. 

When one is selling a unique watch one defines sales goals. In the case of a Rolex watch one wants to sell it for the highest price possible and make the most profit. A good example of this is auction houses. 

In an auction house one will have extremely knowledgeable people trying to create the best deals. The same way an insurance company has a goal to sell $50 million dollars in life insurance, an auction house has a "quota" to achieve.

In conclusion, the sale of a rare watch hits every spot in personal selling and sales management. You need way more than traditional selling to sell these unique pieces and an extremely well define structure of sales management to achieve final goals.

Ch. 16 Advertising, Public Relations and Sales Promotion

Rolex's main advertisement tool is the name of the company itself. "Rolex" is a easy name to say and recognizable in any language. That is what the creator of Rolex Mr. Wilsdorf wanted back in the when the brand was created.  

The company also uses two major types of advertising. Institutional Advertising, to reinforce the "Rolex way" and the brand mission statement.  Additionally, Product Advertising that focuses on the qualities of a Rolex watch.

An advertising appeal identifies a reason for a person to buy a product. When someone buys a Rolex he or she expects to be part of a exclusive or unique group. 

Rolex uses different Executional Styles for advertising. Most of the time "Lifestyle" and "Testimonials" are used to promote the brand. The brand sponsors multiple celebrities and  spokespersons. One example is Roger Federer, one of the best tennis player of all time.

The company uses multiple channels to reach a vast but still specific market (audience selectivity) such as magazines, internet and Outdoor Media (sports events). 

As an example, GQ is a men fashion magazine that focus on men's fashion and lifestyle.  The person that buys that magazine is a potential costumer for Rolex.

Last but not least Rolex also uses Basel World, a watch show, to promote new watch models and calibers. Basel World is notorious for creating anticipation about new releases and technologies just as a Auto show does for cars. This year Rolex launched a new movement: the caliber 3255. A more precise movement that is more reliable and resistant. In addition Rolex released a few new Oyster models. That gives publicity to the brand and bring attention to the company in such a competitive industry.