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.

Ch. 14 Marketing Channels and Retailing

The Rolex flagship store is located in the heart of the city. The store can be found on 5th Avenue and 53rd St. A strategic location that draws in many different customers.  

Rolex store 5 ave.

When you walk into the store the watches are in exhibited like art pieces. All lined up side by side so one has a clear view of options. The placement and display of the watches make them even more desirable.

Rolex uses one main Marketing Channel. Retailer Channel. Through its own stores Rolex sells watches in strategic locations such New York, Paris and London.

To increase profit Rolex also uses a Retailer Channel through authorized dealers all over the wold. Usually those authorized dealers are high end watch boutiques that serve the target market Rolex aims for.

Although Rolex has many stores and authorized dealers all over the world the distribution is quite selective and specific to certain areas.

The level of service either at a Rolex flagship store or at a dealer is often really high. Rolex will provide everything you need in order to be satisfied with your purchasing experience and the watch it self. In addition Rolex is a specialty store, dealing only with high end watches.

Because Rolex has many problems with replicas and fake watches the majority of sales are made in a physical store and rarely on the internet or via m-commerce. People usually use the internet to research about the watches before making the final decision to by the watch in a store.

Chapter 6. Consumer Decision Making

The first stage in the consumer decision-making is "need recognition". When a person wants to buy a Rolex, he or she is not only buying a watch to keep the time, but is looking for a watch that will perform and last for years; A watch that is recognized to perform impeccably.

As we all know Rolex is a renowned brand which has been around for over 100 years, delivering the best in the industry. When you go on an "external information research" about the watches you will see 99 % of the time that costumers are happy with the brand product, service and price offered. When you look for "internal information", you go to your dad, grandpa or a friend that owns a Rolex, and they will give you great reviews of the watch.

Furthermore, when you evaluate other alternatives such as Omega, AP and other luxury watches you will see that Rolex watches are the best bang for the buck. No other brand has the same recognition as a Rolex does. Price wise Rolex offers "reasonable" prices for luxury watches. A Submariner retails for 7,500$ when a PP Nautilus retails for over 26,000$ performing the same way.

Rolex reference 3525 chronograph

When you invest in a Rolex you expect that watch to last a lifetime and run in perfect condition. If anything happens to the watch you also expect that Rolex will do anything to replace or maintain that particular piece. Rolex watches are also an investment, which will increase the value over the years.

Rolex SA CEO - Jean Frederic Dufour

Buying a Rolex is also a statement. It means you can afford an expensive watch. Which includes the connotation that the person is successful at work or has achieved something great. Usually belonging to the upper class of a society.

Costumers vary from collectors who are enthusiasts and have a high involvement with the product or a person with high purchasing power that just wants a reliable watch. Another important factor is that Rolex watches are in families for many generations and people learn how to appreciate one from a young age.

Chapter 5. Developing a Global Vision

Rolex is the leading name in luxury wristwatches. Based in Geneva, Switzerland the brand relies on more than 4,000 watchmakers in over 100 countries. It is also ranked #72 on the Forbes World list of most valuable brands in the world. Rolex has been facing fierce competition world wide but remains the most recognized name in Swiss watchmaking.

When it comes to Global Marketing Standardization, the company doesn't produce different watches for each different market or country. Rolex sells standardized products world wide, because that's what Rolex clients expect from the brand. A person will be recognized by wearing a Rolex watch everywhere he or she goes in the world, a watch that is made with high quality parts, with unique features that are acknowledged from anyone that appreciates a nice timepiece.

Rolex went global long time ago. The profit margin for the brand hovers around 30% with sales estimated in 4.7 billion dollars.

The target market for Rolex is people with high purchasing power, that being said Rolex does its Global marketing in really specific countries, for example United States, China, Australia and so on. The brand tries to attract costumers from different parts of the world, one way of doing so is by sponsoring sports stars from different ethnic backgrounds such as Tiger Woods (USA), Roger Federer (Switzerland), Li Na (China) and etc. In addition Rolex makes partnership with big sport events, usually in countries where the company sales are higher. These events include Monte-Carlo Rolex masters, Rolex 24 at Daytona and Formula One. Those events are world renowned and attract the type of market Rolex targets.