Open Disscusion for Rolex Marketing Strategy

[rolex mis]

Dear all:

since sio many people love Rolex as Luxury Brand Watch, how do your guys think Rolex doing the marketing activities to attract people? What is their value proposition?

It is a quite interesting topic to discuss, there are so many Luxury Brand Watch in the market. Why people so fall in love with Rolex?

[SLS]

Welcome to the forum! One could argue that Rolex is a marketing company who happens to sell watches! No other watch company spends what Rolex does on advertising, that is why they are in the position they are. The funny thing is, is that there are so many better watches out there for the same price or less, but very few people know about them.
~Scott

[frostie]

Rolex undeniably is a Marketing monster

Here is a short example

Go and ask 100 people this question: What is the first brand luxurious watch brand that comes to their mind ?

I guarantee you that 99.9% are going to say Rolex

So as a result rolex has managed to create perception to all the consumers that they are the leading company in luxurious watches and that only they can offer a high status product etc. Same thing that rolex did has been done by Mercedes Benz here in Europe if you would ask the average consumer what is the most high status car he would say Mercedes Benz. What they managed to do is to create a huge brand awareness to the average consumer and show them that they are here as a luxurious brand in the watchmaking business.

So as a result we see that rolex has/had a really successful marketing strategy which was based on the companys competitive advantages : durable watches that can withstand boiling, durable movements, watches that made it to the top of mount everest, watches the conquered the seas, watches that conquered the air, watches made from sophisticated materials etc. All this is product marketing and you show to the people what your product can achieve and by stating that your product which in this case are wristwatches are worn by prestigious people like opera singers, commercial airline pilots, horse riders, musicians, tennis players etc. you are marketing a product that the average consumer perceives as a high status symbol product since it can withstand everything (good value for money perception) and it is worn by sophisticated people so the end result is that you won't care what is the cost as long as you can have this high-end product on your wrist which is perceived as a status symbol product. In order to achieve all of what is mentioned you must spend tons of money in marketing/advertising and rolex is the leading watchmaking company in advertising and it seems that their marketing research department is pretty advanced as they have done their homework pretty well and managed to accomplish the following objectives :

1. Create huge brand awareness

2. Brand their product with words such as : Durability, Sophistication, Exotic, Expensive, Status symbol, History, Tradition, Successful

3. Create a perception to the global consumer that there is NO other brand that can offer what they offer

4. And lastly focus on main competitive advantages that the company has and massively advertises them in order to overcome the competition and create a market niche

Hope that i didn't tire you i could have said more but i am just trying to target to the main marketing points

[OYSTERMANN]

Originally Posted by frostie

. . . . i am just trying to target to the main marketing points

Frostie,

What a good and well thought out response for rolex mis

[argee1977]

Originally Posted by SLS

Welcome to the forum! One could argue that Rolex is a marketing company who happens to sell watches! No other watch company spends what Rolex does on advertising, that is why they are in the position they are. The funny thing is, is that there are so many better watches out there for the same price or less, but very few people know about them.
~Scott

There are a lot of watches in the range of the Rolex sports SS at the same price, some are better, some are worse, it's all about what you want, those who buy a Rolex are buying it partly for the brand, and Rolex have spent a lot of time and money building up that brand.

For me the likes of the Submariner and GMT are timeless classics, they've got 50 years of history behind them and have been at the top for most of that time and copied by many, again that is also included in the price as in the last 30 years Rolex have increased their prices at 3 times inflation.

As for Rolex and their marketing, for me Rolex are mid level in pricing, you look at watches from Patek, JLC, Lange & Sohne, etc and they are all priced at a level above, they have smaller production outputs and build their reputation on out of reach luxury, whereas Rolex are within reach for a lot of people.

[frostie]

Originally Posted by OYSTERMANN

Frostie,

What a good and well thought out response for rolex mis

Thank you

[astcell]

Until I was 25 I would have said Seiko.

[bodybump]

Originally Posted by frostie

Rolex undeniably is a Marketing monster

Here is a short example

Go and ask 100 people this question: What is the first brand luxurious watch brand that comes to their mind ?

I guarantee you that 99.9% are going to say Rolex

So as a result rolex has managed to create perception to all the consumers that they are the leading company in luxurious watches and that only they can offer a high status product etc. Same thing that rolex did has been done by Mercedes Benz here in Europe if you would ask the average consumer what is the most high status car he would say Mercedes Benz. What they managed to do is to create a huge brand awareness to the average consumer and show them that they are here as a luxurious brand in the watchmaking business.

So as a result we see that rolex has/had a really successful marketing strategy which was based on the companys competitive advantages : durable watches that can withstand boiling, durable movements, watches that made it to the top of mount everest, watches the conquered the seas, watches that conquered the air, watches made from sophisticated materials etc. All this is product marketing and you show to the people what your product can achieve and by stating that your product which in this case are wristwatches are worn by prestigious people like opera singers, commercial airline pilots, horse riders, musicians, tennis players etc. you are marketing a product that the average consumer perceives as a high status symbol product since it can withstand everything (good value for money perception) and it is worn by sophisticated people so the end result is that you won't care what is the cost as long as you can have this high-end product on your wrist which is perceived as a status symbol product. In order to achieve all of what is mentioned you must spend tons of money in marketing/advertising and rolex is the leading watchmaking company in advertising and it seems that their marketing research department is pretty advanced as they have done their homework pretty well and managed to accomplish the following objectives :

1. Create huge brand awareness

2. Brand their product with words such as : Durability, Sophistication, Exotic, Expensive, Status symbol, History, Tradition, Successful

3. Create a perception to the global consumer that there is NO other brand that can offer what they offer

4. And lastly focus on main competitive advantages that the company has and massively advertises them in order to overcome the competition and create a market niche

Hope that i didn't tire you i could have said more but i am just trying to target to the main marketing points

Right on target Velitsko!!!

[BigHat]

Sadly, Rolex works hard to succeed in the area that I resent the most about watch ownership -- status symbolism.

Stopped by my AD on Friday. He had just got back from a training seminar and received a presentation from the Rolex marketing folks. He told be they actually said the following. Rolex markets in order to impress upon potential buyers that wearing their watches is a major sign of success. This is a near quote -- "A Rolex on your wrist, and plopping down a Vertu phone (I threw up a little in my mouth when he said this) on the table shows that you're "made it" and this is the impression a person needs to show they have arrived and be successful in business.

This is "180 out" from why I buy the Rolex brand so I was a bit disappointed to hear what I pretty much knew already.

Remember the 100+ post thread slamming the obnoxious PP owner acting "superior"? Rolex seeks to create exactly the same attitude. No love in the inherent beauty -- just the image it conveys.

[astcell]

If you carry a phone you have not made it.

Your aide should carry the phone.

[BigHat]

Originally Posted by astcell

If you carry a phone you have not made it.

Your aide should carry the phone.

Amen, a multi-thousand dollar cell phone without email and text messaging?

What a waste of money. Sadly, they are selling in droves, especially in the Middle East and Asia if what my AD told me is true.

[Rolexmaniac]

good thread here pals. I've got some similar questions.

Who do you guys think will likely to purchase a Rolex, one of the most luxurious brand in the world, a young guy (around 30 - 20) or someone above 30? Take in consideration of psychographic, demographics and behavioral segmentation in Marketing concept?

I'm doing a research on this, so I truly appreciate your contribution :)

[padi56]

Originally Posted by Rolexmaniac

good thread here pals. I've got some similar questions.

Who do you guys think will likely to purchase a Rolex, one of the most luxurious brand in the world, a young guy (around 30 - 20) or someone above 30? Take in consideration of psychographic, demographics and behavioral segmentation in Marketing concept?

I'm doing a research on this, so I truly appreciate your contribution :)

Dont think you can categorised Rolex buyers just into two age categories.Would agree to many non WIS types the brand Rolex now have such a very powerful brand image. That your average guy on the street now by mainly the tremendous pure marketing power over the years by Rolex. Believes they are the best watches in the world,and invented everything in the watch world today,it really is as that simple and thats what sells Rolex.But some a bit more educated in the watch world, may know the real facts and know this is not totally true.

Now if you were to take let's say 100 non WIS people at random from the street and show them say a £4,000 Rolex and say a £35,000 Patek Philip or many other high end lesser known brands. I would say that 90- 95% would choose the Rolex over the Patek/other brand. Simply because of the brand awareness and the fact that the word "Rolex" is always linked to luxury,and quality.And all through the amazingly shrewd and clever marketing though the years by Rolex.Old Hans was quite a remarkable man but not a watchmaker,but he seized every new watch idea, or patent available to call his own,and any new movement design,to make his watches a better product.And the old saying with Rolex today if it ain't broke why fix it.Designs have not changed much in 40 plus years,sure a few very minor cosmetic,and slight movement changes,but little else and that speaks all IMHO of having a very fine product.

Now in the very early years,Hans from Rolex seized every sporting or expedition venture to sponsor and get his watches into the public limelight.You could say that Hans was one of the first to see the real power of advertising.And having a good product with very clever marketing thats what has made Rolex into the most recognised watch brand today.But as much as I respect the brand but mainly now for the history of the Rolex company and a very fine product.After being around watches for well over 50years,and my first real fascination with a Lucerne mechanical watch.But now I can respect all the many brands in todays watch world.Right from Rolex to Patek to Seiko to Alpha they all have there place in this crazy horological world.

So now IMHO Rolex is now becoming a "victim" of its own success.And in danger of becoming the Timex of past days.There are now millions upon millions of them in the world today.So if you are into the Prestige of a once pretty exclusive watch afraid now its slightly lacking, its perhaps now, because they are quite a expensive Prestige.Rolex have a great history, but so do many other brands out there today.Rolex they are, without doubt, the largest independent Swiss watchmaker. Producing around 900,000 plus watches a year, and they sell every watch they make. They are dependent on no single market today, one could really say that the world is their OYSTER.(excuse the pun).

[STEELINOX]

Originally Posted by astcell

If you carry a phone you have not made it.

Your aide should carry the phone.

LOL ~!

[Numismatist]

Originally Posted by frostie

Rolex undeniably is a Marketing monster

Here is a short example

Go and ask 100 people this question: What is the first brand luxurious watch brand that comes to their mind ?

I guarantee you that 99.9% are going to say Rolex

So as a result rolex has managed to create perception to all the consumers that they are the leading company in luxurious watches and that only they can offer a high status product etc. Same thing that rolex did has been done by Mercedes Benz here in Europe if you would ask the average consumer what is the most high status car he would say Mercedes Benz. What they managed to do is to create a huge brand awareness to the average consumer and show them that they are here as a luxurious brand in the watchmaking business.

So as a result we see that rolex has/had a really successful marketing strategy which was based on the companys competitive advantages : durable watches that can withstand boiling, durable movements, watches that made it to the top of mount everest, watches the conquered the seas, watches that conquered the air, watches made from sophisticated materials etc. All this is product marketing and you show to the people what your product can achieve and by stating that your product which in this case are wristwatches are worn by prestigious people like opera singers, commercial airline pilots, horse riders, musicians, tennis players etc. you are marketing a product that the average consumer perceives as a high status symbol product since it can withstand everything (good value for money perception) and it is worn by sophisticated people so the end result is that you won't care what is the cost as long as you can have this high-end product on your wrist which is perceived as a status symbol product. In order to achieve all of what is mentioned you must spend tons of money in marketing/advertising and rolex is the leading watchmaking company in advertising and it seems that their marketing research department is pretty advanced as they have done their homework pretty well and managed to accomplish the following objectives :

1. Create huge brand awareness

2. Brand their product with words such as : Durability, Sophistication, Exotic, Expensive, Status symbol, History, Tradition, Successful

3. Create a perception to the global consumer that there is NO other brand that can offer what they offer

4. And lastly focus on main competitive advantages that the company has and massively advertises them in order to overcome the competition and create a market niche

Hope that i didn't tire you i could have said more but i am just trying to target to the main marketing points

The other part of the 99.99% is that I'd bet less than 1% have actually seen one