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.