Rolex strategy not too unique

[knowran]

So, I feel like the current Rolex strategy is similar to how Porsche functions to maintain their brand status. Porsche enthusiasts covet the 911, the ultimate grail of the Porsche lineage. The uber fantastic models, such as the GT3 and GT2 are sold in limited allocations, with preference of sale going to individuals with long histories buying multiple vehicles. Certain models are given preference to those who initially purchased the 918. Dealers also mark up prices significantly because the market dictates the high demand for these cars, which many customers end up paying.

Now Porsche's other models, such as the Cayman, are fantastic machines that lack the pedigree of the coveted 911's. These, along with Macans, etc. are new breeds that can take bolder stances that won't piss off the enthusiast 911 population, which is very specific on their tastes. Volume sales of these models allow for the further production and support of the original grail machines. They share the same overall brand, but the tier of cars are different. These other models are similar to Tudor, which share the precision of Rolex, but allow for higher volume of sales and brand distinction. It allows the younger generation to acquire these fine machines and aspire towards the esteemed Rolex. A taste of what the brand has to offer, but not having inferior builds and precision.

Now that Tudor, just like Caymans, has started to make a name for itself, the company starts to make additional unique pieces with very high demand and limited quantities. They are beautiful, similar in blood to the essence of the company, with a unique twist giving them character. Take for granted the GMT. Many love it and want it, yet it is currently hard to acquire. It isn't too different then a Porsche GT4. Having the unique traits of what make their older brother companies who they are with fantastic performance, but aren't exactly what the other respective models are (ie. Tudor GMT vs. Pepsi GMT and GT4 vs. GT3).

Now that the brand status has such high esteem, the Rolex brand can compete against a higher tier and continue to be a grail, just as how Porsche can price their cars and compete with manufacturers such as Ferrari, McLaren, etc. Just my own theory.

TLDR: Rolex isn't too unique with their current strategy

[rajurama]

Agreed and in my opinion Rolex is much shrewd and smarter than Porsche. I would keep Rolex only after Spple in terms of profitability. Rolex makes a killing on PM models in terms of multiplying investment.

[cvera]

Interesting read, didn't know much about Porsche before this, but good to know.

[ref1655]

probably just me but those 4-door 911s are kind of weird-looking + somewhat non-traditional in Porsche aura & design.

[watchtabs]

Their strategy centers around making us 'crave' the opportunity to buy from AD.