The paper “Positive and Negative Issues Affecting Rolex Australia Ltd's Clients in Accepting the New Commodities" is an exciting version of a case study on marketing. Rolex Australia Pty Ltd is categorized as a private company dealing with precious stones and jewelry. The company is located in Melbourne, VIC Australia. The company was established in 1981 and incorporated in the same year. The parent brand of the company is Rolex watches (Rolex).
New product to be introduced by the company
Currently, the company products include Datejust, Day-Date, Daytona, Deepsea, GMT-master II, Milgauss, Explorer and Explorer II (Rolex). The company plans to add diamond elements in the external and internal parts of the Rolex watches with the aim of enhancing the appearance of the product. The consumers, as well as the management of the Rolex Australia Pty Ltd, have proposed that the company should start making sports shoes and casual shoes branded Rolex (Rolex).
The consumer market target
The target market is the sportsmen and the youths who are mostly associated with the Rolex. The needs of the identified market segment are physical in that they require shoes that are affordable, light, strong and branded. The benefits of Rolex sports shoes are that they are conducive for sports and also casual wear. They are also durable and affordable to the middle class. The most attracting thing is that they are classy and the brand name will make them attractive to both domestic and international markets (Rolex).
The target market is online shoppers and in particular social media sites, shops and newsgroups. This is in line with the research conducted on the target market. The advertisement will be placed on online, print and sports magazines as these are popularly read magazines by the target market. A large percentage of the target market belongs to sports bodies (Aaker 90). However, the other percentage belongs to young individuals who want to be fashionable. Moreover, the current sport wear companies have failed to address the needs of all sportsmen and youths who want to feel casual and fashionable at the same time. Therefore, Rolex sports shoes aim at meeting this demand (Rolex).
ISSUES AFFECTING THE CONSUMERS IN ADOPTING THE NEW PRODUCT
Due to the fact that Rolex is a brand name that consumers will like to identify themselves with, the company is likely to attain its market target within a short period of time. Rolex as a brand image for the shoes is likely to improve the self-image of the consumers. Due to the fact that the brand name Rolex is in a position to function as a communication instrument an aspect that makes the consumers have the desire to be integrated. Additionally, due to the fact that consumers prefer brands that have a good reputation like Rolex, they are likely to purchase shoes with a similar brand. This will play a crucial role in the establishment of the product into the market (Rolex).
Furthermore, the status function expresses the feelings of prestige and admiration that the consumers are likely to feel if they use the Rolex brand name. Moreover, the power function is associated with social approval, technical superiority and emotional contribution. Moreover, a status function is a social identity as the individual seeks to communicate particular expressions to their immediate social environment (Crawford and Di Benedetto 103). The desire to be accepted by the members of their groups is also likely to influence their immediate social environment. The aforementioned functions are likely to make the new product to generate additional value to the firm. It is also evident that brand associations have a positive influence not only on the consumers’ preference and choice but also on their willingness to buy and pay the recommended price (Lehmann and Winer 23). This situation makes the brand image to be positive as consumers are likely to make more purchases. Additionally, the use of brand name roles on the shoes is likely to generate high margins for the firm and an increase in the price will not affect the consumer responses (Rolex).