Current State of Rolex Watches - Case Study Example

ROLEX REPORT AND GROWTH STRATEGY Name Course Tutor Date Executive summary The aim of this paper is to look at the current state of Rolex watches and then recommend various growth strategies as well as propose an event that will be used to create awareness of Rolex and further increase the growth. The report first introduces the brand then analyzes the brand based on three parameters: brand image, brand identity and brand personality. The report then conducts a situational analysis in the form of a SWOT analysis and then recommends some growth strategies that could be adopted by Rolex. The next section gives a proposal for an event that will lead to the growth of Rolex Watches. The next section then analyzes the critical success factors for the growth strategies and the event to work. The next section then rounds up the whole report by summarizing the key points. Introduction to the Brand Rolex is a leader in the luxury wristwatches. The brands’ headquarters is based in Geneva, Switzerland and it relies on over 4 thousand watchmakers based in over 100 countries across the globe (Rolex Watches, 2015). The brand was founded in 1905 by Hans Wisdorf in London before combining with Tudor and moving to Geneva in 1919 (Rolex Watches, 2015). Rolex remains to be the largest successful luxury watch brand ever seen in the modern history. The two famous Rolex brands are Tudor and Rolex (Chevalier & Gutsatz, 2012). The company produces over 2000 watches per day making it have a high market share (Rolex Watches, 2015). Most importantly the brand has taken the world aghast with most of its innovations in the wrist watches the most prominent one being the Oyster water resistant watch that was unleashed in 1926. The brand has three watch lines namely Oyster Perpetual, Professional and Cellini (Rolex Watches, 2015). The brand has been known to be an official time keeper in most international and local events such as Wimbledon and the Australian Open Tennis (Rolex Watches, 2015). The brand has also sponsored a number of events including 24 Hours of Daytona. Brand Analysis Brand Identity Brand identity refers to the visible elements of a brand that makes the brand unique and distinguished in the consumers’ mind (Franzen & Moriarty, 2015). The logo of Rolex speaks for itself making the customers perceive themselves as kings when wearing the products from Rolex (WordPress.com, 2014). The various designs by Rolex are so unique to be emulated by any other company in the luxury goods industry. The three major market lines of Rolex also identify the brand among its customers. This includes the Oyster Perpetual, Cellini and Professional (WordPress.com, 2014). Brand Image Brand image is associated with the product. It refers to the perception the customers hold of the product (Franzen & Moriarty, 2015). Rolex relies on creating passion and excitement rather than promoting the attributes and benefits (WordPress.com, 2014). As such the image that is portrayed to the customers is the statement of Rolex itself and the reward for success. Brand Personality Brand personality on the other hand refers to the set of human characteristics that are triggered by the brand name. It includes such attributes as excitement, sincerity, competence and sophistication among others. Rolex conveys personality through the consumers of its wrist watches (WordPress.com, 2014). The main message that is conveyed through the customers is that the purchasers are attractive, active, wealthy and live very interesting lives full of success (WordPress.com, 2014). The brand thus attracts people of the upper social class. This has also been expresses through personality meeting through big names in the entertainment, political and social world such as Rodger Federer a top class tennis player. SWOT Analysis for Rolex The appendices has a summary table of SWOT analysis. Rolex has a number of strengths on its side that has made it successful in the luxury brands market. First off, Rolex’s brand image is strongly established being a premium luxury brand. Second, Rolex has a strong history in the luxury watches industry standing by its brand image and being a game changer in the industry as well (Hoffmann & Coste-Manière, 2013). Thirdly, the brand has a rich history of innovation in the wrist watch market. This includes the water proof, automatic dating, and the first diver’s watches (Chevalier & Gutsatz, 2012). The brand also has a large market share in the luxury industry and has been given many awards. The committed watches developers who are in over 100 countries also make the company successfully operate (Hoffmann & Coste-Manière, 2013). Rolex has excellent advertising and branding strategies. Some of the advertising has been achieved through persona marketing where celebrities have been used as brand ambassadors, thus ensures global brand awareness. The weaknesses that the brand should find a way to minimize include the long waiting periods for order processing that could actually make the customers to switch to other customers. The products are not meant for all the people since the target market is the rich and upper class individuals. Thirdly, the emergence of cell phones making consumers sees no essence of watches. There are also counterweights and imitations of the products that are hard to detect. The opportunities for Rolex include the emerging economies that present a chance for it to enter and further penetrate the global market. Secondly, the expansion of the middle income class and the demands for wrist watches (WordPress.com, 2014). Thirdly, the advancement of technology such that there is the presence of e-marketing, that could increase the sales to more consumers. The other opportunity is the emergence of sports tourism events that attract a mammoth of crowds that love luxury (WordPress.com, 2014). Lastly, Rolex is also able to come up with more product lines that have different brand identities but under the umbrella of the Rolex brand (Hoffmann & Coste-Manière, 2013). The development of social media makes it effective for the brand to develop versatile marketing campaigns. The brand faces a number of threats. First off, there are competitor brands that use more or less the same strategy as it does thus high-end competition. Secondly, the long waiting periods for one to get their purchases and limited dealership could stimulate the customers to switch to other brands. Thirdly, there are also counterfeits and imitations in the markets that look alike to the products of Rolex (WordPress.com, 2014). The emergence of cell phones that combine the functionality of a watch also poses a threat. There is also high volume of production thus low quality, considering that the brand manufactures 2000 watches daily (WordPress.com, 2014). Recommended strategy for Rolex Development and Growth From the SWOT analysis it is very clear that Rolex could perform better if it institutes some strategies. Rolex should come up with a viral social media campaign that will be able to lure the different segments that are currently in the market. For instance, through the social media campaign the youth will be able to see the value in buying a watch even though they have a cell phone. Additionally, the campaign will also educate potential consumers on how to delineate fake from genuine Rolex wrist watches (WordPress.com, 2014). Secondly, the brand should also open their watches outlets in high street ends in the developing countries that have emerging markets (WordPress.com, 2014). This will increase the consumption of the products across the globe as well as reduce counterfeits and imitations effects (Kapferer, & Bastien, 2009). The products should also be regulated so as to reduce the chances of brand dilution (Kapferer, & Bastien, 2009). The brand should also invest in an enterprise resource planning system so as to process the customer orders faster and efficiently. This will enable effective management of the company across the board from marketing to accounting (Kapferer, & Bastien, 2009). Lastly, the brand should have an online platform so as to reach a wide consumer base. Proposal for International Event to Support Rolex Growth Tradeshow Proposal Contact Information Rolex Watch Inc Geneva, Switzerland Rolex is pleased to inform every wrist watch lover that it will be holding a tradeshow to showcase some of its latest innovations as well as the vintage collections that have earned its good name and reputation worldwide. The events venue will be communicated after consultation with the management. The dates of the event shall be communicated once the proposal is approved. Who attends the event? The event is open for anyone both locals and the international visitors as well. There is no age restriction. There will be an entry fee however set for both children and adults. All watch designers and retailers will also be in attendance. Objectives of the Event The objectives of this tradeshow are to strengthen the relationship between the brand and the customers. Additionally, the brand will also use this opportunity to share its rich history with the consumers and various stakeholders present. There shall be discounts on some of the known models in the market. The event shall bridge the gap between the old market niches of the affluent and explore the possibility of conquering the upcoming youth segment of the market. Needed Resources There shall be an online campaign to get many people to attend the event. There will also be an online survey for those customers who do not attend the event. Volunteers are encouraged to apply online so that their roles are scheduled and proper induction given. The budget shall cover the cost of the venue and all the necessary preparations. Those participating in the event shall be given appreciation tokens especially the volunteers. The staff shall be represented with their ambassador chosen amongst them. Any queries should be addressed to the event management manager immediately through the email eventsmanager@gmail.com. Rolex Watches Inc. Critical Success Factors for Successful Growth of Rolex and International Events The first critical success factor for Rolex’s growth is to understand the market. The market has become dynamic and the consumer behavior is also changing. Secondly, Rolex should invest heavily on technology that would make it possible to market the event once organized. Thirdly, there must be effective management of the workforce that is one of the key stakeholders in the business (Psourthakis, 2010). The brand can further successfully grow through encouraging team work on part of its members. The vision and mission of the organization should be communicated effectively so as to attract in more customers (Psourthakis, 2010). The organization should also educate the consumers on the importance and benefits of the products. The brand should encourage the culture that is customer based so as to offer value to the customer. This will further attract more people when the event is organized (Psourthakis, 2010). The organization should also ensure that it forms partnerships and organizes dinners and luncheons for fundraising prior to staging the event. The event should have a sound theme and must have follow-up for the attendees and non-attendees. There should be scalable marketing campaign and the basis of measuring be centered around proving marketing return on investments. Lastly, for the event to be successful there must be knowledge sharing between various bodies that are key players and organizers of events. Conclusion Rolex brand has been the best luxury brand ranked among the best luxury brands all over the world. The strategy that is currently used by Rolex poses a threat to the scope of the market that it sells for. There are numerous strengths that the brand has as well as weaknesses, opportunities and threats as identified in the paper. The brand has all the three brand characteristics; brand image, identity and personality, in check through a variety of ways. There is a proposal for an event that would be increase the market niche and also transform the brand into a growth path. A variety of critical success factors for growth and the event itself have also been identified in the report. Bibliography Chevalier, M., & Gutsatz, M. (2012). Luxury retail management: How the world's top brands provide quality product and service support. Singapore: Wiley. Franzen, G., & Moriarty, S. E. (2015). The science and art of branding. Armonk, NY: M.E. Sharpe. Hoffmann, J., & Coste-Manière, I. (2013). Global luxury trends: Innovative strategies for emerging markets. Kapferer, J.-N, & Bastien, V. (2009). The luxury strategy: Break the rules of marketing to build luxury brands. London: Kogan Page. Psourthakis, J. (2010, February 15). Growth Management: The Critical Success Factors | The Business Thinker. Retrieved from http://businessthinker.com/growth-management-the-critical-success-factors/ Rolex Watches. (2015). Watches of Switzerland : London, United Kingdom. Official Rolex Dealer. Retrieved from http://www.rolex.com/rolex-dealers/dealer-locator/retailers/watchesofswitzerland WordPress.com. (2014, April 22). Strategic Image Branding | The Art of Branding. Retrieved from https://strategicimagebranding.wordpress.com/ Appendix SWOT Analysis of Rolex Strengths Strong brand image Global brand awareness Rich innovation history Large market share Excellent advertising strategy Weaknesses Long waiting periods for customers Cell phones Market niche Opportunity E-commerce Emerging economies ERP system Social media campaign Different products Sport tourism Threats Counterfeit and imitations Cell phones High-end competition Brand dilution Global recession Read More