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.

Chapter 4. The Marketing Environment

Rolex has a really strong team of competitors against them, brands such as AP, Omega, Patek Philippe and etc, try to dethrone Rolex from the leading position in the watch-making industry by creating new watches and improving older models every year at Baselworld.

To maintain the the competitive advantage of the brand, Rolex tries to innovate through marketing research making the watches better and substituting what costumers dislike about past models. The submariner 116610LN model carries a ceramic bezel instead of an aluminium one, the new "Cerachrom" is scratch proof unlike the older aluminium version that wasn't a unanimity among its current costumers.

Usually a person that goes after a Rolex has a higher purchasing power and can afford to spend more money without jeopardizing their budget, these people have the ability to purchase higher-priced necessities . In addition many people look into buying a Rolex watch due to his or her lifestyle, these days collecting vintage or high-end watches became a profitable and exciting hobby for many people.

When it comes to ethnic market Rolex is "The gorilla in the industry" although it has lost space for brands such as Omega in the Chinese market (one of the biggest markets in the world), especially with the younger generations, Rolex still maintains the hegemony over sales.

“From a pure branding perspective, Omega have a very, very long way to go to get anywhere near Rolex,” said Jez Frampton, chief executive officer of brand consultant Interbrand. Interbrand estimates the Rolex brand’s value to have fallen 7 percent last year to $4.6 billion, making it one of the world’s top 100 brands. Omega isn’t within the top 150, Frampton said.

Chapter 3. Ethics & Social Responsibilty

Since 1976 Rolex has been playing a role of social responsibility through the "Rolex Awards".

A program that finances projects focused on improving lives and protecting the world's natural and cultural heritages. These projects touch all aspects of humanity by expanding knowledge or improving life on the planet.

Every two years an international jury of independent experts, which typically includes, scientists, educators, doctors and so on, nominates the Laureates. The award covers 5 areas:  applied technology, cultural heritage, environment, exploration and discovery, and science and health.

Dave Irvine is one example of how the Rolex Award helps people all over the world. He developed low cost LED's lighting sets after seeing kids struggling to read in a gloomy classroom in Nepal. Through his foundation "Light up the World" he has lit up the lives of over 700,000 people, installing around 30,000 LED's in poor homes and schools across 54 countries. Rolex funds were used to broaden the organizational structure of the foundation. 

Another example is Mr.Makoto Murase, also know as "Dr. Skywater.  His mission is to 

convince city-dwellers that rain is a good thing, not a water-disposal problem. He 

successfully change the regulations to require all large, new buildings to harvest sky water. More  than 500 buildings and houses in Sumida have installed his system. The water collected from rooftops can be used for gardening and etc.

Also in rural Bangladesh he's distributing low tech and low cost sky water  harvesting technology to spare families from water-borne infections and contaminated water.

Social responsibility plays a big role in the company. Over the years Rolex nominated 130 Laureates and support inspiring individuals to achieve great social and ethical goals all over the world. By promoting this award Rolex demonstrates responsibility and concern with the world's social and environmental issues, those can be viewed as an opportunity to help the world and build value at the same time.

Chapter 2. Strategic Planning for Competitive Advantage

Rolex is an established and respected company with over a 110 years as one of the top watch making companies in the entire wold. The company is well know for its innovations in the watch making industry, such as the first waterproof model the "Oyster" in 1926, the first watch to show two time zones at once the "GMT Master" in 1954 and the first watchmaker to earn the "chronometer" certification for wristwatches. That itself would give Rolex the "Competitive Advantage" in this industry, but Rolex goes beyond.

As a definition, "Competitive Advantage is a set of unique features of a company and its products that are perceived by the market as significant or superior to those of competition".

Rolex is committed to using the best technology and material available in the market to make its time pieces. "The Rolex Way" exemplifies the type of effort the company puts in making the watch a "perfect" watch, better than anything out there.

The Rolex Daytona, is one of  the top selling watches for Rolex. Made of 904L stainless steel, powered with the 4130 self-wind movement, reliable and efficient, this watch speaks for itself.








I believe that one of the product differentiation is the status that Rolex can bring with its name.  No one else has a bigger collection of "hits" in the watchmaking industry like Rolex does. Not to mention the excellent costumer service provided by the employees. Rolex is synonymous with "accomplishment" or "achievement." For example, when a guy graduates from college or on a 30 year marriage anniversary, a Rolex watch is the gift to give or receive.








Rolex are geniuses of their "marketing objective" and also their "target market strategy", the company promotes its products at high-end events because it targets their ideal customer economically and socially. Events like " The Australian Open", "Shanghai Rolex Master", "The U.S open" (golf), "Rolex Grand Slam of Show Jumping" (equestrianism) are attended by people with influence and purchasing power to boost the company's sales and popularity.

In conclusion, Rolex is a reigning leader in strategic planning making the company the top of watchmaking industry for well over a century.