INTRODUCTION:

Rolex is one of the leading global wrist watch manufacturing brand. It has long history of
inventions in the field of watch manufacturing. This company manufactures watches mostly
using precious metal like gold, silver and platinum to extreme precision and accuracy.It
producesmaximumCOSCcertifiedwatchesthananyothercompetitor. Rolex has their presence in
almost 116 countries all over the globe having 28 affiliates. Rolex is very closely associated with
sports like golf and tennis making their brand image much bigger than othercompetitors.Rolex is
a private brand that deals in manufacturing, designing and distribution of wrist watches. The
most premium wrist watches that you can imagine. Alfred Davies and Hans Wilsdorf founded
this watch manufacturing company in England in the year 1905. Presently the company’s
headquarters are located in Geneva, Switzerland. Rolex is amongst the top hundred powerful
brands in the global market and the largest with a single day produce of two thousand watches.
Some of the competing brands for Rolex are as follows
 IWC
 Universal Geneve
 Corum

As we all know, Switzerland is a nation which is prestigious for its watch industry. And Rolex,
one of the world-famous brands, was registered there in 1908. At the beginning, Rolex watches
were all featured with a logo which looked like a palm with five fingers stretching out. It marked
that the watch was entirely hand-made with exquisite craftsmanship. As times passes, its logo
has changed into the image of a gold crown as we see at present. The crown symbolizes Rolex’s
supremacy in the world of hand watches. The Uniqueness The reason why Rolex can survive a
long history with its popularity stands still is that it offers the public high-end products. In 1920s,
Rolex designed it first waterproof watches. In 1931, it released perpetual rotor hand watches
which possessed the best performance of automatic watches at that time. In a word, Rolex wins
its popularity on account of its durability and sound water resistance. In addition, it features
mature and decent looks; thus, most successful people are obsessed with it a lot.

MARKETING MIX
 PRODUCT

Rolex has the distinction of having many “firsts” / innovative products launched due to its R&D
and manufacturing of unique and timeless watches. It was the first watch company that received
a chronometer certificate, first to have automatic date changers, first to have a winding rotor that
was oscillating and most importantly first wristwatch that was waterproof. Rolex offers nine
varieties of watches for men’s collection and six models for women’s collection. They have also
introduced five new models like the Yatch-Master II. The series of Rolex products are as
follows:-
 ALL
 CELLINI
 DAY-DATE
 DAYTONA
 AIR-KING
 DATEJUST
 DAY-DATE II
 DEEPSEA
 EXPLORAR II
 EXPLORAR
 GMT-MASTER
 OYSTER PRECISION
 MILGAUSS
 PEARLMASTER
PLACE
Globalization of products has led to many agreements between countries encouraging free trade.
The tariff exemptions on exports and imports will lead to the lowering of actual prices of the
company,as most of the manufacturers are located in Switzerland.On a global front these
exclusive watches are distributed inmajor places around the world through certified dealers.
Most of the watches are manufactured in Switzerland and then distributed to the foreign dealers.
Rolex has always encouraged a personal relationship with the client as this endorses its
actual brand image. The company does not allow the sales at poor locations like small
showrooms and not even on the internet. Instead, the brand is available only at selected retail
showrooms, thus avoiding the chances of counterfeit watches.
The brand does not have a very large distribution network. But to maintain its premium value, a
premium channel is needed which Rolex definitely has. Rolex is a global brand with 28 affiliates
and 4000 watchmakers in nearly 100 countries. The brand’s outlets and retailers are available in
almost all the continents of the world.
PRICE
Rolex is a luxury item and it has a super premium pricing policy for its products.
Its pricing range varies in accordance with the model of the product and the materials that are
used in its manufacturing.The labor costing is also very high as the brand employs only the best
craftsmen for assembling and designing purposes. The retail prices for different ranges
like“Diamond Inlay” are much higher. “GMT ice” is the costliest watch to be produced from the
Rolex factory, priced at 485,350 dollars.The high prices of the watches are affordable to the
upper class of people largely. The increase in the prices of raw materials like gold has forced the
company to once again raise their prices.Therefore, the high cost of production results in higher
pricing policies but the company still makes a profit because of its unique design and the value
of the finished product.The brand has targeted consumers from the wealthy class to whom
money does not matter but exclusive items do. Hence, the market for such watches is always
open. As the range of products is limited, it also lessens the financial instability, thus maximizing
the chances of large profits.

PROMOTION

Rolex has always branded its products as luxurious and owning it is a status symbol. Its product
line is marketed only to a particular demographic which is uber rich. Hence Rolex is always
 interesting in linking its watches to a particular high profile sport or event. The company
promotes the watch as a specialized product for every individual consumer. The goal of the
brand is to persuade the customer that there is only one suitable watch for him and that is Rolex.

“Australian Open” and “Wimbledon” have made Rolex as the tournament’s timekeepers. It is
also the timekeeper for the golf tournaments such as “U.S Open” and “The Open
Championships”. Rolex also sponsors “The senior Open Championship” and the “Women’s
World Golf Rankings”. It is the title sponsor to “Rolex Sports Car Series” and “24 Hours of
Daytona”. Since the year 2001, Rolex has been the timekeeper for the motor racing Le Mans 24
Hours and in 2013 became the timekeeper for FIA Formula 1. Sir Jackie Stewart, driver of Ex-
Formula 1, was its brand ambassador since the year 1968. The other famous celebrities and
sportsment to be linked with this prestigious company are Roger federer, Michael Schumacher,
Daniel craig, Cristiano ronaldo, Arnold Palmer, Dame Kiri TeKanawa and Jean Claude Killy.

STPANALYSIS

SEGMENTATION
Marketing segmentation is to divide the customer base in cluster groups with different needs and
behaviors in order to create different and appropriate marketing proposition. Rolex has segments
in major bases: geographic, demographic, psychographic and behavioral.
Geographic:
 Segmentation is done on the basis of states/regions and market density with wealth.
 Country- USA, China, UK, Canada, Qatar, UAE, Saudi Arabia, Kuwait, Hong Kong, Singapore,
Bangkok, Japan, Australia, South Africa, west indies, India, Bangladesh, Sri Lanka, Brazil,
Argentina.

 After tapping developed countries, then they target developing and semi-urban markets as fast
emerging as profitable market segment.

Demographic:

 Bases are- Age (18+ and above), income level (all), ethnic background (all), life cycle, occupation
(all), education, social class (upper middle to upper class), generation.

 Separate schemes for different age & high income groups: Offers special outlets for premium
customers & premium plans for business executives and professionals.

 Example: offering special collections on special events.

Psychographic:

 In growth stage, Rolex finds it suitable to segment the market by observing people’s psychology
which has changed by technological evolution.

 Based on one’s lifestyle, personality, beliefs, values etc.

 Main bases on VALs Framework:

o Believers: Literal, Loyal. (Professionals, executives, aged, Business).

o Experiencers: Impulsive, variety seeking. (Young people).

Behavioral:

 Users can be found. (High or Low).

 Positive attitude groups is found in the market.

TARGETING
All customer segments usually seek strong and reliable communications that are easy to use.
However, feature preferences vary in between the segments. Some people want better service in
good price whereas some want more service no matter what it costs. Some want the service at
reasonable price. People want to achieve a good reputation with his/her belonged products.
People want to keep in touch with friends and families with a new vision of life. Travelers have a
strong need for a universal timing portal that will take care of all his services and save his/her
time.
Target Markets:
 18+ and above.
 Young aged people.
 Matured age groups.
 Aristocrats.
 Professionals.
 Business people
 Travelers.

POSITIONING:
Rolex has positioned itself as an aristocrat brand without any compromise in the quality of the
services and sustaining its growth by generating substantial profits. They believe their
competitive advantage is good quality with extraordinary look.
Rolex has been successful to position itself in almost every part of world with its excellent
channel of distribution. And for creating sales and enquiry, it has introduced various exciting and
beautiful advertisements and sales promotional activities.

UNIQUE SELLING PROPORTION

Rolex Wrist Watches are made up of expensive steel because it looks better and provide slid
structure to the watches. The watches are made in the exclusive science labs of Rolex and all the
movements are hand assembled and tested to mark up the International Standards.
The USP of the watches can be proclaimed with the help of tests that brings out the best in them.
Each watch is individually tested in pressurized tanks with water to enhance its resisting
capacity. The diamonds and gold platings in Rolex wrist watches are specifically handled by
geologists who leave no stone unturned to fit the watch with the best diamonds and craft it with
best gold.
The most surprising and astonishing fact about the manufacturing of Rolex that makes it best
among the rest is that “It takes about a year to manufacture and give final shape to One Rolex
Watch”. Rolex watches are made to perfection.
Rolex creates a USP with its campaign “Live for Greatness”, showing that being the
preferred choice of great leaders such as JFK and Martin Luther King Jr is what makes it
shine.

POINTS OF PARITY
Exclusive Distribution Channels – Rolex, Armani and Omega sell their products through
selective distribution channels which appeal to consumers of the high-end market who wish to
differentiate themselves from the masses by using branded products.
Prestigious Brand Image – Rolex, Armani and Omega are well established luxury brands that
cater to high-end market with premium prices, high quality and elegant designs.

CONSUMER BEHAVIOUR
‘Consumer behaviour is defined as the behaviour that consumers display in searching for,
purchasing using, evaluating and disposing of products and services that they expect will satisfy
their needs.’
CONSUMER
‘Market segmentation is the process of dividing a market into subsets of consumers with
common needs or characteristics.’
Consumer behaviour is greatly shaped by the external and personal factors of consumers. The
buying behaviour has been changed a lot in past 15-20 years. Multinational companies have
made it possible that one can get any product in any country irrespective to the country origin of
the product. This has also made the consumer more brands aware. More exposure of the brands
has provided more options to the consumer. Now the consumer has a complete shift in their
buying behaviour. Consumer behaviour is comprises of different factors and every factor has a
small or big impact on it.
CULTURAL FACTORS :
‘Culture is defined as the sum, total of learned beliefs, values and customs that serve to direct
the customer behaviour of members of a particular society. Culture has a wide impact on the
consumer behaviour. Consumers buy certain things as they feel that it is right thing to buy
according to their culture, e.g. sex toys or sex related products are considered as a big taboo in
most of the Asian countries due to their culture rather than in the western culture which is
considered as an open culture. Though there are sub-cultures but they share basics of the
country’s culture. Rolex brand has created a culture of luxury watches which shows the higher
status of its wearer. Rolex is considered as a traditional symbol of prestige and superiority. The
youth is spending more in luxury items as they are getting more options than the past. Now the
young people are more independent and getting better pay to bear the cost of luxury. A study
reveals that Luxury spending has held up remarkably well despite the global downturn in the UK
market. This is the reason Omega kept its prices lower than Rolex to capture the young market.
To overcome this shift in culture Rolex has to position itself as a dynamic and in the reach of
young sophisticated consumer.
Sub culture
Sub culture is defined as ‘a distinct cultural group that exists as an identifiable segment within a
larger, more complex society. Sub cultural analysis enables the marketers to segment their
market to meet the specific needs, motivations perception and attitudes shares by the members of
a specific sub-cultural group. The consumers have strong affinity to the goods and services
attached with their sub-culture. These sub-cultures are dynamic. The various sub-cultural traits
are: Nationality Religion Race Geographic region Age Gender Occupation Social class
Consumers possess behaviour of buying costly goods on certain days which can be festival or a
special occasion. These are the occasion to boost the sales. Different subcultures possess
different buying behaviour. Rolex possess numerous qualities like a rich culture. Its long life
commitment and a reward for hard work justify the cultural beliefs and values. Company has to
market its product in relation to the sub-cultural events and beliefs.
NATIONAL CULTURE
Nationality is an important sub-cultural reference that tells about the value and buying behaviour
of consumers. The national culture outlines the buying behaviour of the foreign brands.
Countries which have high national identity are more inclined to their national brand rather than
foreign. The consumers in strong national identity possess behaviour of strong likeness towards
the local made goods. On the other hand a country like Japan has rich quality culture. They make
goods of superior quality. So while buying a made in Japan item, consumer might consider a
high end, high quality brand. The national identity of Rolex is very strong. It is a Swiss company
which are specialized in the watch making industry. The history of innovations and market
leadership has earned the trust of the consumer. This is the unmatched strength of the company.
The precise quality and sophisticated looks justify the price tag of the watch. It has to be
marketed as first choice for the customers who fascinate about luxury watches.
SOCIAL CLASS
The relation between the Rolex and social status can be stated with the theory of Herzberg’s
theory. His theory states that differentiate between the satisfier (factors that cause satisfaction)
and dissatisfier (factors that case dissatisfaction). The absence of dissatisfier doesn’t mean is not
enough, satisfier must be present to motivate.
In case of Rolex the motivating factor is the reflection of higher and sophisticated social class
myth attached with the watch. It satisfies the prestige need of the people.
The buying behaviors of different social classes differ to much extent. Higher social class buys
the product by assuming the quality according to the brand without worrying about the cost. But
middle class consumer is more inclined towards the quality and features. They chose the product
which justifies the cost.
Rolex is a mirror image of high class society. But due to change in the social cultural values and
economic trends, the difference between social classes is diminishing. Due to this there a vast
change in the buying pattern of the consumer. Now middle high class is considered as a vast
market and predicts the future of the company. The buying behaviour of upper middle class is
very much different from the higher class, even if they buy the same luxury product.
Rolex is currently in reach of rich and sound people but the market is shrinking as the other
luxury watch makers like Omega is producing attractive luxury watches at low prices than
Rolex.
SOCIAL FACTORS
This is the surrounding of a consumer which shapes, motivate or de motivate its buying
behaviour. Friend circle, family, reference group/ opinion leader plays an important role in the
selection of certain goods or services. Social classes are determined by the complex set of
variables, including income family, groups and their opinions. Opinion leaders influence
consumers socially. Family has a very close impact on the consumer behaviour.
Opinion leadership ‘Opinion leadership is the process by which one person (the opinion leader)
informally influences the actions or attitudes of others. The key characteristic of the influence is
that it is interpersonal and informal and takes place between two or more people, none of whom
represents a commercial selling source that would gain directly from the sale or something. The
opinion leadership is a very dynamic and powerful consumer force.
The opinion leaders are considered as:
Positive and negative product information
Credibility
Information and advice.
The Rolex bearer generally holds a high social status and has the ability to pursue the people.
But Rolex has failed to capture their views. Now the consumers are money conscious and they
select the branded item after discussing it with their friends. Unfortunately there is no official
Rolex lounge on the internet where the consumer can read the personal reviews of their watches.
There should be a link on the Rolex homepage where the opinion of the past owners and their
experiences with particular watch models can be recorded. This will influence more consumers
who are followed by opinion leaders.
FAMILY
Rolex has a strong heritage of family relations. The Rolex in a family inspire next generation to
buy the latest model. But the negative side is now the new generation consumer thinks Rolex as
more traditional and old. This is a new shift in the consumer behaviour. Now the consumer
buying behaviour has shifted from traditional to thrill and glamour. Youth now live far from
their family and are more independent than the past times. By endorsing the latest player and top
heroin Omega pictured itself as a brand for youth. While the Rolex ads are more attached
towards the traditional values.
PERSONAL FACTORS
Personal factor influence the buying behaviour to much extent. Sometimes a consumer just care
about what he like. Normally this depends upon his age and lifestyle.
Age plays an important role in the consumer behaviour phenomenon. Teenagers are normally
dependent on their parents for their expenses but kids of very rich families have very different
culture. They enjoy all the luxury in their childhood. But in normal life an adult ages between 25
- 40 is an emerging market for Rolex. Now people are able to get high posts even in a short span
of time. Those people want to enjoy luxury items in their adulthood rather than save and have
luxury when they will get old.
Lifestyle refers to a pattern of consumption that reflects a person’s choices about how they
spend time and money, but in many cases it also refers to the attitudes and values attached to
these behavioural patterns.
Rolex is a mark of luxury lifestyle. Some people have lifestyle of showing off their wealth and
some people just wear luxury for their comfort and for the unique benefits. to adapt with the
changing lifestyle company has to make different type of marketing strategy for different type of
lifestyle. This can be done by doing a market survey in the corporate sector and where people
with good disposable income live. Then there should be advertising banners and posters in that
particular area according the studied lifestyle of consumer living there. This will relate the
company with the lifestyle needs of the particular consumer.

Rolex Brand Ambassador

Currently Roger Federer endorses Rolex Watches and he is the brand Ambassador of Rolex. The
Rolex campaign featuring Roger Federer represents a strategy to equate a high-end watch brand with
a tennis player who is known for being the best at his craft while showing professionalism and
sportsmanship in the process.

Point of Differenciation

Rolex is a very high quality luxury watch which helps to build its brand image. The factor that
differentiates Rolex from its competitors is its quality combined with its brand image. The company
targets a smaller market which can pay a premium for a luxury watch.

Rolex follows focused differentiation strategy. While other brands in the market focus toward a
specific customer segment, Rolex’s strategy is concerned about the unique attributes of its watches.
Higher value proposition created from these unique aspects allows for a higher price for the Rolex
watches.

Rolex also uses a strategy called “No to Second Life” . There are several instances of counterfeiting
goods and Rolex does not want to lose its reputation of making world class, reliable, quality watches.

Rolex fears that selling of watches in second life would lead to duplications which might lead to
customer confusion and dissatisfaction.

Rolex also used the scarcity marketing to build up its luxurious brand image. Limited number of
distributors give customers a feel of distinctiveness and rarity.

Rolex Value Proposition :

Rolex has made their company name synonymous with high quality and value. People don’t buy a
Rolex for a bargain price. They buy for quality, timeless style, and as a status symbol. Rolex
understands this, so they focus on it in their value proposition.

Rolex has to bear high development costs for developing the design of its movement and also, the
components utilised in the actual construction of its watches are expensive. Moreover, mechanical
movements are quite costly to make. All the materials used to Rolex watch are assembled, polished
and finished by hand. The watches are manufactured in Switzerland and require high labour costs.
Most significantly, many Rolexes come with white gold dials, ceramic bezels and gemstones, making
them brighter, harder and expensive by default.

Rolex Value Creation :

Rolex is one of the top global brands for over a century. The crown symbol is recognized throughout
the world. Rolex watches are designed to exceed expectations. It takes more than a year to assemble
over 220 minute pieces.

The assembly is put through rigorous testing and retesting. So rigorous in its testing that if the
movement deflects for less than one second, the entire assembly is often disassembled and the entire
process is restarted from the beginning. Due to high standards and excellent quality control, Rolex is
the leader in luxury wristwatches.

Quality, performance, innovation and stability are the four pillars that Rolex has built its brand, since
the inception of the history of wristwatches.