The Genius of Rolex Marketing?

[T. Ferguson]

Originally Posted by m1911a1

Case-in point....Blue-on-Black GMT-BLNR.....
It is one of the most coveted items they produce.......UNTIL!
The next best thing comes along (Ceramic-Daytona) and now the owners don't care for the BLNR as much?
Is it because we as human beings simply want something we can't easily have (EXCLUSIVITY)?

I also wonder if Rolex dumped a million of the new SS-Ceramic-White Daytona's into the market tomorrow afternoon.....
How many people would truly love it and buy one immediately?

What say you?

I don't feel like it's an exclusivity thing as much as it's the new thing. I'm pretty sure it will sell like hotcakes once it's available. No one wants to talk about what happened yesterday when something interesting happened today.

[mater]

Of course. Its a marketing tactic.

Scarcity 101.. always make one less then the market demands.

This way you play the long game not a short game and burn the candle at both ends.

[GradyPhilpott]

Originally Posted by Spartacus

I studied Rolex in my graduate program and I love strategy. I think people on this forum tend to have tunnel vision and rarely have an objective opinion.

Rolex is the Porsche of the watch world. They are not bait and switching like Apple with the constant model change. Apple 4, 4s, 5, 5s, 6 etc.

Rolex has also built their foundation on quality, materials (precious metals), longevity and an aspirational status. They make workhorse watches, with the best materials, and if you pay the price of entry you will, like a Porsche 911, have something that will last you a long time.

Think of elements like the white gold hands or use of platinum- other brands in the price range simply don't go this distance. And, talk about sticking to their guns, holding the Daytona, sub and gmt firm at 40mm, you have to tip your hat at that perfect strategy execution.

Good analysis.

Sent from my SM-G900V

[Dyim]

Whatever they are doing, it is working. And working really well.

They got all of us hooked here.....

116500 is the next big thing. Curious if Rolex will somewhat limit supply like the 116520 or D-blue.

[tucsonrick]

Originally Posted by kilyung

No offense to anyone but I don't get the argument that any Rolex is exclusive or rare. With the exception of some vintage pieces, there aren't any modern models that I couldn't readily find. Ultimately what drives my interest is how the watch makes me feel.

This is the attitude that most companies would pay anything to achieve.

The paper presented is typical Business School stuff with B-School thought processes. If Fed-Express had presented their business model to a B-School prior to starting their business, their business model would have been judged unacceptable. (Which they did and which is was.) No B-School analysis ever forecast the start up of Fed-Express, Dell, Apple iPhone, etc - nor can they explain Rolex.

[AK797]

Nothing wrong with wanting the latest and greatest, Fleming and TRF's beloved Bond also was always chasing after the latest new gadget.

[lotus425]

I can only think of one luxury brand that plays the exclusivity game better. Hermes

Hermes Birkin Hand bags. Always in demand. Price is none negotiable. Got the mystique behind the brand.

[Ticknaway]

I have just one Rolex a submariner and like a lot of you I worked hard to raise the funds for it's purchase and I can tell you I've been enamored with the Rolex brand since I bought a Tudor submariner for 80 bucks in a pawn shop in 1986. I agree that Rolex has exceptional marketing, but I bought this watch based on its innate characteristics, such as the quality of construction, metal type and accuracy. I like the fact that it's a tough SOB and I don't have to take it off for any activity if I don't desire too. That being said I researched many watches prior to making my purchase and I did not find one model at the same price point that really shared the quality the submariner offers. There are many watches that cost significantly more and may be more attractive to other but to me the submariner is a beauty! It's a purchase I'd make again and again in the same situation.

[Dirt]

Originally Posted by GradyPhilpott

Neither thread supports your statement.

Flippers flip. It doesn't matter what they own.

Yes they do flip.
And it's mostly Rolex watches get moved on and as a result are likely to have multiple owners.
This allows people to get into the brand with a second hand watch also a great quality watch. The only fear in the mind of the second hand consumer is getting ripped off on a fake.

IMO, there are 2 main issues out of many that underpin the brand and feed into the second hand prices other than the regular price increases.

1. Rolex has a globalized service network that produce extremely high quality workmanship and they back it up with the best warranty. It's the only example of something I can describe as globalized perfection.
2. A Rolex watch can basically be regarded as currency, It's certainly a commodity. No other brand of absolutely anything in the world can compare on that basis.

[lotus425]

Rolex plays the exclusivity game well. But Hermes does it even better with its Birkin handbags. Always in demand, escalating prices for new models assures older models price point. Not a bad place to park money without the expense of maintaining a fleet of rare collector cars or vacant mansions.

However, there are lots of counterfeit Rolex gold , platinum watches and Hermes Birkin floating around. The wealthy top1% have mansions, fast cars, and fancy vacations. But out in the wild , the one who wears the platinum Daytona, the Smurf Sub exudes confidence and makes a presence

[Mansar05]

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