1.1 Objectives
The company aims to supply consumers with high quality watches and also to maximize its profits. The company will try and make more brand loyal consumer’s to increase its market share.
1.2 Vision and Mission
The mission of Rolex is to make sure customers are satisfied with every purchase, to a better price to the public so their customers will be loyal to them and to make sure the customer comes first.
2.0 Company background
2.1 Background
Rolex watch co which is owned by ltd. Is geneva based company which is owned by Wildroft foundation. Rolex watch produses 750000 new watches every year but still the company cannot produce watches required by market demands.There is a long waiting list for certain models of rolex watch, the waiting list for rolax Daytona is upto five years. As per Anthony D’ambrosio, executive vice president of new York based Tourneau inc. which is the largest rolex dealer, the company sometimes don’t even take orders because of high demands. The prices of new watches increased by 5percent on sept because of increase in demand. The prices of rolex watches reach more than 1.2million sometimes and people are ready to purchase such expensive watch because of its popularity and brand image.the price of new watch starts from $2.200 for its simple model and reaches to $100000 for its dimond-encrusted model. Only rich people can afford roxex watches.
Orange county gemologist toni pick ford says “the same guy who wears a rolex(president), if he ware a woman, would wear a 10-karat diamond ring.” Rolex is been appreciated as a marvel of mechanical engineering by customers Rolex is popular and prestigious watch making company now which attracts many rich people, actors, athlets and politicians. In the early 19th century a man named Hans Wilsdorf and his brother in law Alfred Davis founded a company by the name of Wilsdorf and Davis which was situated in London. When Wilsdorf thought of a name he decided to use an easily pronounceable name, he chose Rolex. In 1919 Wildroft went missing from England due to high increase on taxes on imported premium goods. In 1919 Wilsdorf left England because of the inflation on imported premium goods.
He then moved his business to Geneva. Since then it turned out to be Rolex Watch Company. Rolex founder Mr. hans wilsdorf was born in germany in 1881; he took his training of watcmaking from La Chaux de Fonds, Switzerland. Mr. wilsdorf was settled in London and he prepared world’s first perfect wristwatch in 1914, he also created first waterproof watch in 1926. Before world war 1 men’s were not interested in wristwatches, the thought it was for girls. Because of wisdrof’s invention and his designs of Rolex watches with masculinity made Rolex popular amongst every men. The rolex watches are made with sapphire crystal, coin-milled case made from stainless steel and gold, a tritium dial and crown logo of rolex.
2.2 Company Locations and Facilities
The company was situated in London before it moved to Geneva, Switzerland. This is its main factory. Rolex has retailers all around the world and also has a Head Quarters in New York. Rolex has retailers all around the world making it a highly known international premium brand.
3.0 Products and Services
3.1 Products Description
It deals mainly with watches made in Geneva. Rolex give the opportunity to consumers to purchase a one of a kind Swiss made watch of very high quality. The watches basically differ from gender to age. To own a Rolex watch is not like owning any ordinary watch. It is more of a status symbol. People who wear Rolex products are of a very high prestige and come from wealthy families.
3.2 Competitive Comparison
The main competitors for Rolex are mainly:
1. Patek
The company produces top watches and are also more expensive than Rolex but they still are not known that much.
2. Panerai
The company produces watches and sells them at the same price Rolex does but they still do not have the same reputation that Rolex has
3. Hublot
They have certain watches that have made big hits such as the Big Bzng but that is all they came up with.
4. Cartier
Cartier is one of the biggest names in luxury watches and jewelry and it might be Rolex’s biggest competitor
5. Omega
Omega is one of the few high end produces with the means of competing with Rolex. They have the ability to produce very good quality and the lowest price and sell a lot of units. This makes them Rolex’s biggest threat.
3.3 Supply and Demand Details
The suppliers for Rolex are mainly found in the main factory situated in Switzerland. The watches are sent directly from Geneva to its headquarters in New York. The product is then distributed to the retailers worldwide. Basically the products are manufactured on Geneva then transferred to retailers as finished goods. The consumers then buy it directly from the retailers.
3.4 Technology Needs
Rolex adopts Traser luminous technology in their watches. Traser technology is a glass tube which is coated with phosphorescent material in the inner wall of the tube, and the tube is then filled with gaseus mineral tritium. Because of the reaction of tritium and phosphor the light is produced. The produced light is not bright and is heat divergence. Which does not burn and neither explode. Treaser technology is a technology which is an external light source and this light energy remains stable and can emit light for 10-20 years. (www.urolexwatches.net/rolex_replica/content_id_2381.html )
Every modern automatic rolex watch has self winding mechanism with a perpectual rotor. The movement is gurenteed by rolex it is long term and with great performance. The movement is officially certified by swiss chronometer. Rolex also create special oscillator for its watches which they call conventional oscillator hairsprings, which are made by ferromagnetic alloys. That is the reason the watches are not affected by any magnetic fields and the watches are 10 times more resistant to shocks. The color of the hairspring is blue, because rolex believes that blue color is sign of prestige reserved for most accurate time pieces and rolex gives a gurentee for its accuracy.
The bezel of an ordinary watch deteriorate in sunlight, but the bezel of rolex is specially created with a cerachom disc. Which is made from a very hard ceramic material. This material has very good corrosion resistant properties. The color of the bazel is ultra violate rays proof and scratch proof as well. The steel used for watches of rolex is 904L steel. This steel is used in most of the chemical industries for resistance against corrosion. Because of properties of this steel rolex watch is very resistant and very polish able too. 4.0 Market Analysis
4.1 Target Market
4.1.1 Target Market Segment Strategy
Target market segment strategy means what kind of market will you target your product. This kind of product being a premium one targets a very exclusive type of market. It will aim at niche market because not everybody can afford such a product. The target market will be by age, income and . It will target such markets as the product itself being of very high quality is very expensive, so not many can afford this product. It will be aimed mostly at celebrities and famous people. 4.1.2 Market Needs
The needs and wants of this type of market are very specific. Firstly not everybody can afford to purchase a Rolex watch. The young generation of today demands such type of product. Everybody wishes to be different in their own way; well Rolex targets this type of people. In this type of market a lot of factors affect the demand for this kind of product. The price attracts the people as they know not everyone can afford one. While wearing a simple Timex or Swatch watch will not gain you any attention, A Rolex will brighten up everybody’s eyes around you. Wearing a Rolex watch also says which type of lifestyle the person is living. It is basic knowledge to know the prestige it hold to be wearing such a watch. The demand for Rolex watch is very high even if not everybody can own one.
4.1.3 Market Trends
After a drastic economic recession Rolex seems to be doing fine because of its exclusivity. It is basically going on an upward trend as some years back, automatic timepieces were on a downward slope but are not catching up to the market. Rolex is a trend especially in developed countries such as U.S or U.A.E. In these countries it can be seen that everybody is doing very well for themselves so they can afford to buy these products. For some would say gold is better, stainless steel is recapturing the market these days in particular after you add some diamonds on it. People nowadays want bigger watches so Rolex is trying to keep up with the market demands. Also in the world of today owning expensive jewelry is becoming a very big trend among youngsters.
4.1.4 Market Growth
The market growth for Rolex is in motion as many people are getting wealthy more and more each day. This brings to say that Rolex as segmented is market in a perfect way. Rolex should try and produce for a different type of market. If they enter a mass market like Swatch they are likely to make more profits. But for that to happen they have to reduce their production cost to drop their price down. The company would be more profitable if they sold in different markets also.
4.2 Industry Analysis
4.2.1 Industry Participants/Key Players
The key players of the industry are the consumers as they are the ones to promote the product .
4.2.2 Main Competitors/Competitive Analysis
Many watches and Rolex competition in the high-end market in the world, and
each has a market share. The world’s Top Ten Lists: 1. A. Lange & Söhne
2. Vacheron Constantin
3. Patek Philippe
4. Audemars Piguet
5. Ulysse Nardin
6. Omega
7. Rolex
8. Hublot
9. breitling
10. Richard Mille
The main competitor of Rolex is Swatch group.
Since the 1990s, the Swatch Group has led the two impact of the merger integration of the Swiss watch industry, and then Swiss became the dominant position in the luxury brand of watch. Swiss also re-bulid the Breguet brand, though a series of operation to promote its become second noly to the cuction house of Patek Philippe,went on to become the Group’s luxury flagship of watch brand. The Swatch Group is one of the Rolex main competitors.
After two integrated luxury watch market from free competition to the oligarch monopoly. The luxury brand after two rounds of consolidation, the establishment of the current market competition. These successful experiences are worth Rolex to learn, make better response to the competitors to keep their competitive advantage. 5.0 Strategy and Implementation
5.1 Marketing strategy
Marketing strategy is a plan whereby a company makes a decision to enter a specific type of market where it will maximize sales. It focuses on the best marketing mix possible to attain its maximum output and also to be at an advantage with competitors. Rolex has a very unique plan which targets people with a high income. Its market is segmented by age, income and gender. Rolex should stick to this type of marketing strategy as it denotes how prestigious its collection of watches is. Rolex marketing strategy is make more brand loyal consumers so it can increase its market share to do so it needs grow it sales or enter new markets where watches are sold for cheaper. But doing so is not very easy as many watch produces have a very low cost when manufacturing watches.
5.2 Pricing Strategy
Pricing strategy is a combination of different ways to set a price on a product or service before or after launching it into the market. The types of pricing strategies are based mostly on competitors price, cost of the product or customer based. The pricing strategy for Rolex has been there over the ages. Rolex has conceived a type of cliental that come on their own based on the price of the watches. Rolex uses a premium based pricing which involves setting the price of a product very high in order to gain more profit from those who want to be different from others. Also Rolex being a famous premium brand attracts most of its customers based on its pricing method. This is because people want to be the ones with the most expensive watches or jewelry nowadays.
5.3 Promotion Strategy
A promotion strategy is the way a business entity makes people aware of its product or services. There are different methods to promote a product or service nowadays. Rolex does not advertise its product on television or by flyers. It has a very unique way to promote its product. It sponsors many big events and create its customer base. Also it offers its watches for promoting itself in movies. Many celebrities own Rolex watches and are a main contribution to Rolex’s promotion. They are the ones that give Rolex a name to live for. For example everybody wishes to own a Rolex from the moment they discover the brand till the day they can afford it. Even if there are many brands whose watched cost more than a Rolex it is still the top demanded watch by every person. People live for the day they can afford a Rolex watch.
5.4 Distribution Patterns
Distribution patterns are mainly how the product gets from manufacturer to consumer. In most cases the manufacturer sells to wholesalers who then provide retailers with the product to be purchased by the consumer. For Rolex the watches are manufactured in Geneva which is then sent to the head quarters in New York. The Head quarters will then distribute the product to different outlets around the world. These outlets will then supply the final consumer.
5.5 Marketing Programs
Marketing program will be how to market the product.
When such decisions are to be made price, place, promotion and packaging should be taken in consideration.
5.6 Sales Strategy
Sales strategy means maximizing profits.
The sales strategy for Rolex is quite simple as it targets at a niche market. They make people want to be able to afford such a watch one day. People work their way up the ladder to purchase this quality item. Its advertisements make people want to buy the product as it is a status symbol in society.
5.7 Sales Forecast
Sales forecast is the process of taking previous sales history to predict future month’s sales. Rolex will take its previous sales history in consideration before predicting its future sales.
5.8 Sales Programs
As sales program doesn’t do much as it has already created a brand name recognized all over the world.
6.0 Web plan summary
6.1 Website Marketing strategy
Rolex has its own company website where all information can be obtained. The website is mainly for information and a marketing tool as well. It will advertise the products on its website and also promote new watches and designs. It performs online marketing which is affiliated with Facebook and Twitter. It is a very attractive website that encourages the user to want the product. They use the website with creative images to attract more potential buyers. 6.2 Development Requirements There are no requirements for further development as the company has fully fulfilled its duties on the website. It should only input a way for customers to be able to purchase the products online even though some people use EBay to purchase the products
LIST OF REFERENCES
ACCESSED ONLINE AT 22/11/12 @ 3:01 PM
http://www.rolexforums.com/showthread.php?t=189842
ACCESED ONLINE AT 23/11/12 @ 5:01 AM
http://www.capetowndiamond.com/newmenu/educational/investment/rolexart.shtml ACCESED ONLINE AT 23/11/12 @ 6:20 AM
http://www.rolex.com/en#/home#festive-collection
