劳力士手表市场营销研究

Marketing Researches on Rolex Watches

This paper aims to demonstrate the situation and positioning of Rolex watches in the international market. Information research was done on the internet and some assumptions are developed based on the information to figure out marketing strategies of Rolex.

Background

Rolex was established around 1910 s in Switzerland by Hans Wilsdorf. Based on advanced craftsmanship such as waterproof and oyster, it designs several wristwatch collections to satisfy different people, including business people and professionals. The core concept of its creation is chronometric precision. As one of the top 10 wristwatches around the world, Rolex has successfully set up a professional brand image and been recognized as a symbol of high social status and leading brand in luxury watches. To achieve the success and further development, it has adopted a series of marketing strategies in terms of STP and 4Ps.

Strategic Market Planning

To obtain the global market share, Rolex has segmented its target market mainly based on gender and occupation. Men s collections focus on performance and are made for some professional works while women s collections pay more attention to appearance. Rolex designs men s watches according to their demand of functions and the working environment. Datejust and Day-Date are the basic men s collections of showing time precisely. Deepsea, Exploer, GMT-Master Ⅱ, Milgauss, Submariner, Yacht-Master Ⅱand Daytona collections have different emphasized functions enabling people to do professional outdoor works that are demanding for devices such as diving, sailing, flying and so on. Women s selections are not as complicated as men s since watches are more like accessories to them. They mainly vary in design such as color, shape and ornamental jewelry based on the fundamental functions.

With a high production cost, Rolex mainly targets upper-middle and upper class people who have certain disposable income and are willing to pay a premium price for a high life. As Hooley (2008) shows, upper-middle class people are successful business and professional. Their accessories should match their image. And upper

Marketing Researches on Rolex Watches

class people who occupy a high social reputation and position need to show their identity and wealth. As a symphony of precision, Rolex is the crystallization of the efforts and artistry of watchmakers, designers, gem-setters and chemists. This noble brand image matches the identity of upper-middle and upper class people.

Given the luxury of Rolex, the purchase of the wristwatches falls into the buying situation of extended problem solving which represents an investment of money and time (Brassington & Pettitt, 2007). To meet consumers needs and demands, Rolex figures out the decision-making process and accordingly makes marketing strategies. The first step of the process is problem recognition which can exert an effect on product and promotion. People who realize the need of wristwatches may be motivated by the natural need of knowing time or replacing the old ones. Those who aren t aware of that can be motivated by marketers. Rolex wristwatch is infrequent purchased goods for most people. Therefore, marketing mix such as new product development, advertising and sales promotion must be adopted to attract the potential buyers and encourage repurchase. As Rolex has actually done, new watches of different collections have been launched every year in the past. The second step is information search which mainly makes for promotion. Advertising and communications mixes are used to offer product information. The website of Rolex clearly demonstrates all the details that are called for by potential buyers and advertisement can be easily found on television, internet or in magazines. The third step comes to information evaluation. To stand out in the competition, Rolex must characterize itself in price, product and place. As those of other luxury brands are, Rolex wristwatches are marked with high price. To some extent for the consumers, high price means high quality. The products featuring precision and professionalism are well recognized by upper class people. Besides, its approved dealers locate in more than 100 countries to make sure target people around the world can get access to its product. After information evaluation, consumers will make decision and then make post-purchase evaluation. Generally, consumers tend to doubt whether they have made a right decision as the watch costs too much. This cognitive dissonance (Festinger, 1957) can be alleviated by marketing communication during which

Marketing Researches on Rolex Watches

consumers can get much positive information about the product.

To make sure target consumers can get a clear message and believe that Rolex is the best choice for them, marketers need to position the product properly and identify the differences between Rolex and close competitors. The elements of marketing mix can help to deliver detailed and credible messages to consumers and thus can achieve effective positioning.

First, product has been paid much attention to as it is an important element in positioning. Product quality is the foundation of brand positioning. Advanced material, meticulous design, careful producing and skillful processing can guarantee the high quality and good performance of Rolex watch. The consumers tend to be satisfied when they find its quality worth the money. And credibility will be thus established. The closer the watches are to the consumers expectation, the more effective the positioning is. In addition to quality, branding is an effective pattern to position. The most obvious and common branding means are name, logo and slogan. They help to establish product s position by giving a three-dimensional personality and enable consumer to form attitudes and feelings directly (Brassington & Pettitt, 2007). They are symbols of the brand image and give the first impression to consumers. The name Rolex sounds like a watch being wound and is easy to pronounce in any language. For consumers, it is easy to remember, and for manufacturers, it is short enough be labeled anywhere. The logo of Rolex was firstly designed to be a hand with five outstretched fingers which represents that the watch is entirely crafted by hands. Later it evolved into a registered trademark of crown symbolizing the king in the wristwatches manufacturing world. The logo clearly delivers the message of its dominance in watch field and demonstrates the users eminent identity. The slogan “an obsession with perfection” shows the value of the brand. It may match the consumer s value and philosophy and contributes to their loyalty. The involvement of brand ambassadors such as Roger Federer, Placido Domingo and Jack Nicklaus effectively successfully attracts consumer s attention. Their achievement can be matched with the winner image of Rolex. Besides, packaging also helps to achieve an effective positioning as it can give consumers the

Marketing Researches on Rolex Watches

message of the price. The packaging of Rolex wristwatch includes: leather based box, warranty and chronometer certification, factory service booklet, instructions, waterproof labels and oyster guide. The leather box impresses people with nobleness and elegance. The booklets demonstrate the professionalism of the brand. The packaging displays the high status of the consumers while it shows the eminence of Rolex. It strengthens the consumer s belief in the high position of the brand.

Second, price of product has been set properly. Before the author demonstrates the pricing patterns, it is necessary to figure out the factors that have influence on price. In terms of internal factors, pricing decision is influenced by costs, organizational objectives and marketing objectives. Premium material and involvement of professional people determine high costs of Rolex. Quest for profit, target market and segmentation also lead to high price. Besides these, external elements including customers and consumers, demand and price elasticity, competitors, channels of distribution and legal and regulatory have effect on pricing, too. The target consumers of upper-middle and upper class help to maintain the high price of Rolex. Their demand and product price are mutually influenced as they are very closely linked (Montgomery, 1988). The balance between supply and demand contributes to the stable price. Competitors new product or price change may lead to the change of demand, and price may accordingly change, but this can be alleviated by developing new product. Cost of distribution may be added to product price. However, it is not difficult to control the distribution expenditure since only the approved dealers can sell Rolex. As to legal and regulatory aspect, Rolex prices the products reasonably, not breaking any law or regulation. Taking these elements into consideration, Rolex tend to price the wristwatches based on benefits and features. As table-1 shows below, the collections created for some professional areas generally have a higher price than the basic ones. And the automatic and self-winding watches are more expensive that the standard ones.

Table - 1

Marketing Researches on Rolex Watches

Google, 2012

Third, places of dealers and affiliates have been taken into consideration. As it is shown on official Rolex website, the company has 28 affiliates worldwide and 4000 watchmakers in more than 100 countries. In the international market, Rolex s coverage has reached a majority of developed countries and regions and some developing countries. It ensures Rolex s occupation in global high-end market and helps to build an international image. In the viewpoint of the author, the company consciously takes control of the number of dealers in each region and the places of dealers in order to protect its luxury image and show its rarity. Given that only approved dealers are authorized to sell Rolex, the author thinks that the manufacturer directly distributes watches to dealers and then sells to customers. It is easy for marketers to put dealers into the overall management in case that they produce negative influence on Rolex s image. This channel structure benefits not only the manufacturer by reducing cost of distribution, but also the consumers by adding value through services. In terms of marketing strategy, it protects the brand image of high lifestyle and guarantees the position in high-end market.

Fourth, promotion measures, or further to say, marketing communications have been adopted to achieve successful positioning. Marketers make an effort to communicate with consumers in order to make sure they can get access to the information about the product and clearly understand the message. It can be achieved

Marketing Researches on Rolex Watches

through advertisement on the internet, television and in some high-grade magazines. The official Rolex website itself is an effective advertisement as it offers detailed product information. Consumers can get a comprehensive understanding of the watches appearance, function, origin and design concept through picture, text description and video. Price is not offered on website. In the author s opinion, Rolex in pursuit of perfection tends to show that it focuses on high-standard craftsmanship and excellent quality which are achieved at the expense of high cost. It matches the consumer s idea of paying high price for high lifestyle. The story of Rolex origin and watchmaking displays the long history of its professional technology and authority of the brand. Philanthropy helps to build a positive corporate image and demonstrates that they treasure talented people. The attentive service of the website multilingual versions demonstrates the corporation s respect to consumers and care for their feeling. It can exert a positive influence on consumer s choosing Rolex when they make product evaluation.

Besides the elements above, identifying the differences between Rolex and competitors also makes for effective positioning. As table-2 shows below, Rolex is in the middle in comparison with Omega and Piaget in the aspects of price, product character, user status and psychographic. Therefore, Rolex should be positioned between the two brands. Whether Rolex has achieved effective positioning can be examined by perceptual map.

Table - 2

Marketing Researches on Rolex Watches

Google, 2012

Perceptual Map

Conclusion

As one of the world top 10 luxury watch brands, Rolex impresses people with high quality lifestyle and is considered as a symbol of high status. The marketers achieve this through marketing strategies including proper segmentation, target market and effective positioning. Segmentation based on gender and occupation makes Rolex watches targeted to people who have different demand. Target market of upper-middle and upper class guarantees its position in high-end market. Positioning influenced by product, product price, place of dealers and marketing communications produces a positive influence on consumer s choosing Rolex. Buyer behaviours which may affect positioning by affecting marketing mix have been analyzed. The comparison between Rolex and closer competitors have been made,

Marketing Researches on Rolex Watches

and the influence of the competitors taken into consideration in positioning. By all these strategies, Rolex succeed in maintaining its position in the international market.

Marketing Researches on Rolex Watches

Reference

Brassington, F. and Pettitt, S. (2007), Essentials of Marketing, Harlow: Pearson

Education.

Festinger, L. (1957), A Theory of Cognitive Dissonance, Stanford University Press.

Holbrook, J. (2007), Understanding The Changes: An Examination of What's

Changed When You Buy A New Rolex [Internet] Available from: <> [Accessed 7 January 2012]

Montgomery, S.L. (1988), Profitable Pricing Strategies, McGraw-Hill.

Sheth, J. (1973), A Model of Industrial Buying Behaviour , Journal of Marketing,

37, pp. 50.

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