Rolex vs. Timex A comparison of Pricing and Distribution strategies of Rolex and Timex A brand is nothing without a prudent pricing and an excellent distribution strategy. These strategies have pivotal importance in generating desirable business outcomes (West, Ford & Ibrahim 2006). It is very important to understand all influencing factors to make these strategies work well. Pricing and distribution strategies must be designed keeping in view market segments and other situations. Marketers need to adopt a well thought plan considering all available options. Objective of study This comparative study has been conducted to find what main differences and similarities are found in pricing and distribution strategies of two leading brands in the timepiece industry.
Pricing of Rolex and Timex Rolex and Timex are two well established brands in timepiece manufacturing industry. The key difference between the two brands is price. A good Timex watch costs not more than $25 whereas a good Rolex watch would cost in thousands (Grandy 2010). It is an acceptable fact that a thousand dollars Rolex watch would not miss even a second over a year while on the other hand Timex watch may need to be retuned every couple of months.
Distribution of Rolex and Timex One can find Timex watches anywhere, at K- Mart, Wal-Mart, Dollar Store and many other such stores. On the contrary, Rolex watches can only be found at top notch jewelry stores or stand-alone Rolex stores. Rolex watches can be sold by its authorized dealers only. The customers of Timex are common youngsters, old people, children, and people who are more conscious about trends and fashion hence they have ensured their presence at multiple places in the city.
Timex watches are easily available in the market, whereas Rolex watches are not. Rolex has a differentiated customer base and for them they have established their presence at high- end stores. Both the brands have positioned themselves well enough to reach their target audience. Target Market of Rolex and Timex Timex is for everyone. Rolex is not. The clientele of Rolex watches comprise people who are willing and possess the ability to buy them. Rolex customers are well aware of the value of Rolex watches.
They are good earners and are prepared to pay a higher cost. Rolex has customers that are less sensitive to price (Grandy 2010). For price sensitive customers Timex is the other option available. Timex targets people who seek quality at lower price. It has a mass marketing strategy to reach maximum number of general audience. If Rolex lowers its price, it may lose the image of being high quality because its price is one of the elements of its high quality image. On the contrary, if Timex raises its price, it may fail to retain its customers as its customers are mostly price sensitive and trend conscious buyers.
Why Rolex or Timex? Rolex watches offer numerous benefits besides its features in comparison to Timex watches. A Rolex watch gives its customers a pride of owning a Rolex watch. People like to wear good and expensive watches to be noticed. A watch represents one’s personality and lifestyle. A nice watch symbolizes success in case of a businessman. Prestige is indeed an important factor in purchasing a Rolex watch than a Timex watch.
Hence, with higher quality offered, a Rolex watch is also priced higher (Grandy 2010). Buying a Rolex watch is more an investment than a purchase. A Rolex is an appreciating asset for its buyers. Whereas, a Timex watch is merely a purchase. Buy Online Both Rolex and Timex can also be found online. Timex offers online shopping through its official website whereas Rolex watches are being offered by different online stores. One needs to verify the authenticity of dealership to get original Rolex as all stores do not offer genuine Rolex.
The customers of both Rolex and Timex are educated and internet users hence, the option of online shopping is beneficial for both the customers and the company. They can get their desired product from the web conveniently. Rolex, in this instance, needs to initiate online shopping option at its official website in order to help their customers get genuine Rolex watches through internet. Conclusion The study tells that both Rolex and Timex have different pricing and distribution strategies according to their target audience, benefits and features, and marketing objectives.
Both companies are well established in the market with positive brand image. References Grandy, Tom. (2010). Rolex vs. Timex! . Reeves Journal. (August 2010). Retrieved from: http: //www. reevesjournal. com/Articles/Column/BNP_GUID_9-5-2006_A_10000000000000878091 West Douglas, Ford John, Ibrahim Essam. , 2006. Strategic Marketing: Creating Competitive Advantage. New York, NY: OUP.