Marketing of Rolex assignment

Marketing of Rolex assignment Words: 4925

We export watches all over the world” So it was that Hans Wildfowl, at an age of 19, started work as an English correspondent and clerk with the firm of Messes. CUNY Shorten in La Choux-De-Fond, Switzerland. His friend earlier comment had been no idle boast, as this firm was a very large exporter of watches with a turnover of nearly Frills m a year. It was in this position that Mr… Wildfowl Interest in watches was undoubtedly sparked. As he commented. ” it provided an excellent opportunity to study the watch making Industry closely and examine every type of watch produced both In Switzerland and broad” The Move to London: By 1903 Mr…

Wildfowl had settled in London working for another watch making firm. After gaining experience from this and his previous employment and growing in self confidence he set about to established his own firm. With financial help from his brother-in-law, Alfred Davis, the company known as Wildfowl and Davis’ was founded. The film did not initially produce wristwatches because wristwatches were not thought masculine by the public and also the technical difficulties that many watch makers believed existed in trying to make this type of timepiece.

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Such problems as he difficulty of producing a movement small enough to be housed in a case to be worn on the wrist and the likely hood of moisture and dust entering this case and thereby ruining movement were cited. However, unlike other producers of wristwatches, this was not to deter Mr.. Wielders. The first stumbling block was surmounted with the acquaintance of Hermann Gaggle. While working in La Choux- De-Fond Mr.. Wildfowl had come to hear of this gentlemen and his ability to produce rough movements that would be small and cheap enough to be used in the production of wristwatches. In 1905, Mr..

Wildfowl, full of conviction of the possibilities of the wrist watch, placed an order worth several hundred thousand French Francs for these movements, an order which at this time was the largest ever booked. The second difficulty In producing this type of watch, a case Impenetrable to moisture and dust, was not to be achieved for another twenty years. But, in the meantime, one of the major events in Role history occurred. What’s in a Name? Although the firm was very successful being known as Wildfowl and Davis, Mr.. Wildfowl sought to establish a trade name that would identify the company and the reduces that it made.

Therefore, on 2nd July 1908 the now famous name of ‘Role’ which I will not add, but what is known is that this name was chosen for very sound reasons. Mr.. Wildfowl wanted a name that was. ” short, yet significant, not cumbersome on the dial (thus leaving room enough for the inscription of the English traders name) and above all a word easy enough to memorize, with a pleasant sound and have its pronunciation unchanged whatever European language it is spoken” The picture shows the patented Role vacuum device, used to test the waterproofs of an ‘Oyster’ case.

The watch is immersed in the water and by expelling air a vacuum is created. If there are any leaks in the case, small air bubbles will be seen escaping and rising to the surface. However, using the manufactures trade name on the dial of a watch was going against the accepted practice of the time. Historically it was the importers name and not the manufactures that was displayed on the watch dial. It was to take time, money and a major technical innovation to break this tradition. Initially Role were successful in having 1 watch in every 6 carrying their trade name, but by 1925 this had only increased to 3 in 6.

Therefore tiring of the slow progress, Mr.. Wildfowl took an enlightened step. He spent EYE,OHO a year, a huge amount for that time, to publicize the Role name and heighten public awareness of the brand. This action helped to increase the watches supplied with the Role trade name to 5 in 6. Yet it was not until the invention of the ‘Oyster’ case that Role could dictate to the importers that every watch supplied by them was to carry the Role name. For many years Mr.. Wildfowl and his assistants had been working to produce: “…

A watch case so tight that our movements will be rearmament guaranteed against damage caused by dust, perspiration, water, heat and cold. Only then will the perfect accuracy of the Role be secured. ” History: In 1905, Hans Wildflowers, a German citizen, establishes with his brother in law a firm called Wildfowl & Davis and specializing in the distribution of watches. Then in 1908, he makes up A logo and a name that is easy to pronounce in every language and short enough to figure on the dial of the watch: it is the birth of Role.

At that time, Swiss workshops produced mostly pocket watches as it was still difficult to manufacture small enough movements that could be used in a wristwatch. Thanks to its perseverance, in 1910, Role obtains in Switzerland the first official chronometer certification ever awarded to a wristwatch. In 1927, Wildfowl achieved, when he launched the Oyster, what could be called Role first big marketing coup. The use of testimonials, that is now a key success factor of the Role communication strategy, had already been used at that time with Mercedes Glitziest, one of the first women who swam across the English Channel.

Wildfowl had the idea to ask her to wear the Oyster, Role’s water-resistant wristwatch, while realizing this achievement. After 14 hours and 15 minutes of immersion, her Oyster was still in perfect condition. The next morning, Wildfowl reserved the first page of the Daily Mail and advertised the watch as being the “Wonder Watch that Defies the Elements”. This is the start of the famous Role testimonial advertisement campaign that continues to this day. Hans Wildfowl was born on the 22nd of March 1881. Orphaned at the age of 12, he received an education at a leading boarding school in Switzerland.

Then, Role was continuously associated with some of the most extreme achievements; the mitt Met Everest in 1953 as well as the witness of the depth of the sea with Jacques Picador. This last unprecedented achievement was pretty amazing: the watch was attached to the outside of a submarine and went down to a depth of 3048 meter. At least two times deeper that the deepest rated sports watch made today can descend to advertisement in the Daily Mail advertisement mentioning the Everest and the Picador achievement.

In 1960, at his death, Hans Wildfowl, an hairless widow, created a private trust run by a board of director to insure the company would never be sold. Two years later the board of director appointed 41 years old And Hinder, who worked under Wildfowl during 12 years, as Role new managing director. Then, the quartz boom of the late asses and early asses nearly killed the mechanical watch industry. After the storm calm down, more than half of Geneva watch manufacturers have gone bankruptcy.

Fortunately, Role survive the crisis staying faithful to its conviction: quartz model did not represent more than 7% of the production and now this figure dropped to 2%. In 1992, Patrick Hinder is succeeding its father and came the third managing director in nearly one century. In 1992, Patrick Hinder is succeeding its father and became the third managing director in nearly one century. The “Oyster” Finally, in 1926, this objective was achieved with the now patented ‘Oyster’ case, so known, as it was as impenetrable as an oyster!

Although this invention was initially thought of with skepticism and took some notable events to break this thought, it is now a standard to which nearly all sports watches are measured. The last major innovation that was to create the basis for the Sports watch that we know this day kook place 5 years later, in 1931. Up to this date, watches required winding by the wearer to give them the energy needed to function. The aim was to do away with this dependence and seek a system that would require no intervention by the wearer.

The idea was not a new one, but it was Role that finally perfected and patented the perpetual self winding mechanism. It operates by a semicircular rotor weight that pivots around its axis and winds the watch at the slightest movement of the wrist. Now the scene was set. Role were now producing a watch small enough to be worn n the wrist, impervious to outside elements and required no winding from the wearer; the Role Oyster Perpetual. Company Profile: Role has a very particular status; it belongs to the Wildfowl trust and therefore cannot be sold.

Thanks to this organization, Role has always had the ability to privilege a long term development strategy. They do not have to deal with the pressure of shareholders who require short term benefits in order to show a profit from their investments through the redistribution of dividends. On the contrary, Role has the opportunity to reinvest the benefits in the company to improve striation and after-sale services and to increase research and development. What is more, they are not pressured to follow the general trends of the industry in order to content shareholders.

As an example, Role is the only big player that is not previous one, is that the company is as hermetic as its main model, the Oyster. In fact, due to its organization, the company does not have to publish financial information and top executives are usually very discrete and do not give interviews. As a result the company is extremely secretive and all the numbers presented hereafter are only estimations. Role employs about 6000 persons worldwide of whom 3300 employees are based in Geneva; setting Role as one of the main employers and tax payers of Geneva.

They are selling around 750000 watches each year for an estimated turnover included between 2. 5 and 3 billions CHEF. As Annex Ill: : Top 20 watch brands (sales) shows, Role is the first brand of the luxury watch industry in term of sales (factory price). Moreover, Role possesses 22 subsidiaries companies spread all over the world. It is not all, Role also distinct itself from the others because, as we already mentioned, it is one of the last group that is not arguing a multi brand portfolio. In fact, it has a long tradition of “one brand and one product” that has always, nearly been respected.

The only exception to this rule is the “Tudor” brand, Role’s second brand, positioned as a “cheaper” Role. Rumor has it that the brand is performing really well but it is difficult to confirm this statement due to the lack of information concerning Tudor. But even though Role possesses a second brand it cannot be compared to the frenetic takeovers that modified the watch making world in 1991. In the same idea, Role has not, so far, diversified its name away in the production of parallel products. Finally, Role is not only an empire of watches.

The holding also invested in real estate and financial assets (banks – Union of Bank of Switzerland-, chemicals and insurances). Chapter 2: Marketing Strategy of Role The Power Of The Role Marketing Strategy Over The Years…. When you think about luxury watches, the first brand that always comes to mind is Role. While there are a few other luxury watch brands that are actually priced at a level or two higher than Role watches with have tighter production outputs, if you ask anyone they would probably prefer a Role watch. Such is the success behind the marketing of Role as a brand.

There are so many key selling points that drive the sales figures of Role watches that it is no wonder they are recognized the world over. And while there are other more exclusive brands, hardly any average consumers will recognize their names. Now we see how effective Role has been at marketing itself, with even non-targeted consumers who are less privileged having reason to covet these watches. There are a few key points that the marketing team focuses on. The fact that the brand is associated with words like history, tradition, pacification, and a few others is no accident.

These are all things people look for in a luxury watch, and in all cases Role delivers. They have long been an innovator in technology that is still seen in today’s modern timepieces. Although Role was beaten to introducing the first self-winding watch, what they did was innovate on the 1923 design, resulting in the standard self-winding mechanism we see on today’s watches. In 1960, explorer Jacques Packard strapped a Role Sea Dweller Deep-Sea Special to the side of his submersible, which then went down 10,916 feet into the depths of the attach still told perfect time.

And of course, there is also the fact that every single watch they make can be considered a status symbol for its exclusivity and limited production outputs. Probably one of the main advantages behind Role’s marketing strategy is that owning such a watch is a sort of achievable luxury, while other luxury brands can’t seem to associate themselves with that idea. Instead of only targeting consumers within their targeted market who are able to afford a Role, or any other exclusive brand for that matter, they have also created a brand awareness that goes beyond and reaches to the masses.

Of course, this doesn’t mean in any way that Role will eventually become more affordable to the average person, even if they are only slightly less privileged than your typical Role buyer. Actually, what it does is make sure the consumer thinks about Role first, more than anything else, once they come into the financial means to afford this kind of watch. It is easy to grasp the concept. So if a law firm decides to promote one of the Junior associates to the position of senior associate, the first gift that person is likely to get himself is a Role.

Current Positioning In The Marketplace: Conservatism and tradition are the credos of Role strategy: same product and same communication in the last decades. Its unique communication strategy and differentiation enabled the company to gain a sustainable competitive advantage over the years. The brand embodied achievement and keep nurturing this myth thanks to successful celebrity endorsement. Role also maintains a part of mystery around its brand in order to cultivate the legend. Communication strategy The communication strategy of Role is very elaborated and specific.

The key points of their strategy rely on the use of sponsorship and particularly celebrity endorsement and the emphasis on being a mysterious brand. Celebrity endorsement: The use of testimonials has always played a key role in Role communication strategy. Since the first advertisement in 1927 showing a testimonial, Mercedes Glitziest, and the watch, Role has always been faithful to this concept. Even today since a decade now the star tennis ace Roger Feeder has been the brand ambassador of Role Watches.

He being a winner and a person who loves making all big records in the game, being a symbol of Role people bend more towards the brand. Of course the strategy has evolved but the association of a successful rationality to the brand is still the heart of the communication. In the first years, the ambassador task was to use the watch in extreme conditions and prove that the product was robust and worked under exceptional conditions. The ambassador was a guarantee of the quality and reliability of the product.

Role tries to exalt individual success choosing strong personalities, representing their time and their discipline. From dance choreographer Maurice BAjar, ice skater Peggy Fleming, photographer Helmut Newton, opera singer Placida Domingo and golf player Arnold Palmer to the explorer Sir Edmond Hillary, Role has always chosen the best people of their (pop singer, actor, top model, etc) to the brand quickly but to choose people who have achieved something and that are or will be a part of history, so that Role can Join them writing it.

Chapter 3: Various Dimensions of Marketing Salient Dimensions: Depth of brand awareness Role is the most valuable watch brand in the world and the fifth most valuable luxury brand (Behind Louis Button, Hermes, Gucci, and Channel). You do not have to be a watch enthusiast to know about Role watches. If you have ever seen a gangster movie or even if you are Just a normal movie watcher, you would have heard of them. Other than probably Timex and Swiss watches, Role is the most well known watch to man and one of the most expensive.

Breadth of brand awareness Role manufactures the best product in the luxury segment. Whenever we want to buy luxurious watch we go for Role. Though Role is priced higher, it can afford to keep it high and inaccessible to most people, Just to keep the exclusivity and appeal in place. Performance Dimension Primary characteristics & supplementary features Product reliability, durability, and serviceability Role watched are made from highest quality materials, whether they are metal or precious stones.

It is a waterproof watch and a very reliable one; besides, the Oyster model was the first waterproof watch model in the world, though the technology is continually changing and more extreme conditions can be faced by nowadays models. The special locking device that screws the back onto the oyster case ensures that the watch is tight and protected against the environment. The knob used to wind the watch is conceived so that the seal around it reverts water and dust from entering it. Service effectiveness, efficiency, and empathy.

Role watches have exception customer service. Role’s in-house movement has always gotten top marks for being accurate and hardy, and nothing has changed there. Each model is a certified Chronometer. Vive been told by a number of watch repair people that they prefer working on Role movements for being simple and easy to get parts for. Role does a good Job at making a world-class mass produced movement and watch. Style and design Role watch is the embodiment of style and class, magnificent quality and Role manufactures the best product in the luxury segment.

The kind of time and resources that are involved in making a Role watch significantly increase the pricing, but as it is a luxury brand, Role can afford to keep it high and inaccessible to most people, Just to keep the exclusivity and appeal in place. Imagery Dimensions User profiles : Role’s image campaign emphasizes male consumers to a greater extend. Role watch style are largely aimed at male with its larger and bulky dial. It shows crown as its symbol signifying king. Purchase & usage situations Buying online from a trusted source can be the best way to purchase a pre-owned Role. Stores online such as www. Showtime. Com acquire pre-owned timepieces from collectors and other Jewelry stores, and are able to lower prices far below retail Jewelry stores. History, heritage, & experiences. Judgment Dimensions Brand quality – As many people know, Role watches usually maintain their value or even add more value as the years go by. This partially contributes to the Role brand to maintain its status as the most powerful watch brand in this planet. In many cases, it is true that some people, when buying a Role watch, they re also buying a name or investment rather than only an expensive watch. Brand credibility

Among the company’s innovations are the first waterproof watch case, the first wristwatch with a date on the dial, the first watch to show two time zones at once, and the first watchmakers to earn chronometer certification for a wristwatch. Resistant to fashion trend Role holds for almost a century a unique symbol of prestige. Brand consideration. It is most likely when somebody want to buy of gift luxury watch, Role will be the recommended brand. Brand superiority: Points of Parity Durable Points of differentiation Innovation in Design, features (time zone) Accurate Century unique symbol of prestige

Attractive History and heritage Feelings Dimensions Distribution Wearing a Role watch gives feeling of success and high social status. A sense of social approval and self-respect. Resonance Dimensions Behavioral loyalty – Role watches may hold their value greatly with their initial purchase and actually in some cases increase in value over time, as the watches become collector’s items and are passed on through generations. Attitudinal attachment of Wearing a Role. Sense of community Roger Feeder, Caching Denatured, Writhe Reason, Imitate Backchat, Emir Khan.

Chapter 4: SOOT Analysis of Role SOOT Analysis of Role Strengths:- Financial Role has huge financial capabilities. Many signs portray that their financial capacities are pretty good. For example Role inaugurated, by the end of 2004 a new 42000 mm industrial complex worth 1 billion Swiss francs and that is entirely self- financed. As it has already been mentioned, many takeovers took place and has always been self financed. What is more, the takeover of Role Bennie might enable them to increase profitability and by the way their financial capacities.

Brand Awareness The figure shows that Role has an awareness of 97%. As it has already been mentioned several times, the Role brand value is very high and the name is known all over the world. Ambassadors and event The quality and diversity of Role’s ambassadors is difficult to imitate for its competitors. Role is not only sponsoring events in order to have their name and logo placed on the event’s location, it also uses these events on paper advertisement in order to increase their association with some precise field or sports (sailing, golf, etc).

Weaknesses:- Prisoner of its strategy The strategy has been so well defined that it would be difficult for the company to hang radically its strategy or be more innovative. It might be difficult to explain a new strategy to the actual customer without confusing them. The disadvantage is that it could leave some unattainable segments on the market that Role will not be able to win. For example, if the fashion goes to square watches, Role might be penalized because even if they decide to product square watches, everybody expects a Role to be round.

In this case, it would be difficult to get a market share of “square watches” market. Furthermore, Roles name is very strongly associated with luxury etches; some people often say “They are not making watches, they are making Role”. Difficulty to control the brand It seems that sometimes, Role is losing the control of its brand identity. Role is a brand that is loved and cherished. The problem arises when communication is maybe misunderstood or distorted and if the company does not try to rectify the alteration to its brand identity with a calibrated communication.

In this case, a company might slowly lose its brand while the customer is taking control. It seems “showing off’ and “arrogant”. The customers who like Role for its refinement, implicitly and traditional design might be confused to see the last hot rapper wearing the same watch than him. Threats:- Counterfeiting: a threat to equity Counterfeiting Role watches has become a sophisticated industry with sales exceeding $1. 8 billion per year. A counterfeit damage the company’s brand equity and presents a huge risk to the brand.

Youth does not recognize the brand Role does not appeal to the youth. It is unlikely that young customer’s attitude towards luxury goods will evolve in the same manner as their parents”. Opportunities:- There are vast opportunities available to Role. Given below are a few commendations as to how Role can exploit these opportunities and further leverage its brand equity. Diversification Role brand name is extremely valuable. It seems that it could be diversified in related fields like Jewelry. The takeover of Gay Frees gives Role the capabilities to produce Jewelry.

The only problem they might encounter is that their name is too strongly associated with watch. In this case they could create a new brand in order to avoid dilution of the actual brand, but this would mean that they abandon all the advantages linked to the brand capital. Strengthen position in emerging markets Role can research the potential opportunities in the emerging Chinese and Asian markets and exploit them. Building brand community The creation of a brand community can increase the loyalty to a brand and by the same way customer retention.

According to Necromancer, “a brand community from a customer experiential perspective is a fabric of relationships in which the customer is situated. Crucial relationships include those between the customer and the brand, between the customer and the firm, between the customer and the product in use, and among fellow customers. ” Famous example of successful brand community alluding includes Ferreira and Harley Davidson. Associate youth with Role Role purposely ignoring the fashion trends with the result that the younger generation does not recognize the brand.

What is more, this strong reliance on tradition can also be perceived as a lack of idea and innovation. Role should research the current tastes of the many younger customers who are already in the market for Role watches. Its marketers should consider tailoring campaigns and watch designs for younger customers. Connect with Female Customers Role has always had more of a “male” identity and sells a majority of their watches o men. Its image campaigns also emphasize males to a greater extent. Research indicates that women make majority of the Jewelry and watch purchases.

Mechanical watches are usually designed for male with the idea that “women do not understand technology anyway;ay’ and that quartz watch with a nice design were more appropriate for them. This tendency is slowly changing and women also want to buy technological timepieces. The opportunity of increasing their presence on the female segment should be exploited. It can do so by: Employing more female ambassadors and resenting them in its advertising and communication Joint Venture with De Beers and target females with an exclusive watch. More sponsorship of female attended sports enthusiasts and fans.

Introduce family of female watches only. In addition to the above recommendations, Role can further leverage its secondary associations in the following ways: Corporate Social Responsibility Role can raise awareness on environmental issues and sustainable development. This can be achieved by creating awareness how the steel used by Role is specially manipulated to reduce wastage, special alloys which can reduce the use of natural sources and at the same time provide the consumer with the same quality and experience that they expect out of Role products.

Joint Venture to Support a Cause An example of a cause can be fighting against preventable blindness. A special campaign can be launched and a unique watch can be designed to celebrate the partnership. The proceeds of the watch would be donated to the cause. Such an organization can deliver eye care to some of the world’s remote and less developed countries. Role phone App This application would put the entire world of Role at the fingertips of the customers. They can browse collections; locate Role retailers, stay informed about news and events around the world and much more.

Role Maritime Quarterly Magazine Role can launch a magazine featuring articles, photographs, news, events, updates, collections, etc. It can also dedicate editions to special events, for example Windblown or even James Bond. Role Maritime Quarterly on ‘pad This can be made available at no cost to users. The digital edition of the magazine will present the full content of the print edition in addition to various interactive features. Role should specially develop an easily navigable custom-designed interface to create a totally new experience for its readers.

Attacking the counterfeit industry Counterfeiting damages the company’s brand equity and presents a huge risk to the brand. Take for example the case of Vance, a Japanese distributor, hired Brad Pit for 5 millions us dollars in order to endorse the Role brand in Japan. Apparently, Vance does not even have a license to sell Role watches. Therefore, they buy watches abroad on the grey market or even send their employees abroad in order to buy watches and resell them in their store. It shows the magnitude of the recognition of Role in Japan.

Role needs to dedicate extensive resources to fight the illegal use of its brand name and also consider building an exclusive online store, or an exclusive distribution site from which all official e-retailers must link. Chapter 5: What makes Role Tick??? What makes Role Tick?? The market for luxury goods is booming – locally and globally. In the U. S. Alone, 2. 2 million individuals have liquid portfolios of over $1 million. And tens of millions of less well-heeled consumers routinely splurge on high-end products. But the market relies more on psychology than sheer consumer utility. In order for luxury goods