Marketing of Rolex Essay Example

this decision are undisclosed, but what is known is that Mr. Wildfowl desired a name that was significant."Short, but significant and not bulky on the dial (leaving room for the English trader's name), it should also be an easily memorable word with a pleasant sound, pronounced the same in any European language.

The image displays the patented Role vacuum device, which tests the waterproofing of an 'Oyster' case. The watch is submerged in water, and as air is expelled, a vacuum is created. If there are any leaks in the case, small air bubbles will escape and rise to the surface.

However, using the manufacturer's trade name on a watch dial went against the commonly accepted practice of that time. Traditionally, it was the importer's name rather than the manufacturer's that appeared on the dial. It took time, money, and a significant technological innovation to break this tradition. Initially, Role managed to have their trade name on only 1 out of every 6 watches. By 1925, this number had increased to only 3 out of 6.

Frustrated by this slow progress, Mr. Wildfowl took a bold step. He spent a tremendous amount (for that time) of money to promote the Role name and increase public awareness of the brand. This action helped raise the number of watches carrying the Role trade name to 5 out of 6. However, it was not until the invention of the 'Oyster' case that Role could insist that every watch supplied by importers carried their name. For many years, Mr. Wildfowl tirelessly worked towards establishing Role as a dominant brand in the market."Wildfowl and his team have been working hard to create a

watch case that is completely sealed against various elements such as dust, perspiration, water, heat, and cold. This is necessary in order to ensure the impeccable accuracy of the Role watch. History tells us that in 1905, a German citizen named Hans Wildflowers, together with his brother-in-law, established a company called Wildfowl & Davis. This company specialized in the distribution of watches. Then, in 1908, they created a logo and a name that could be easily pronounced in any language and short enough to fit on a watch dial. This marked the birth of the Role watch. During that time, Swiss workshops mainly produced pocket watches because it was challenging to manufacture small enough movements for wristwatches. However, thanks to Wildfowl's determination, Role obtained the first official chronometer certification ever awarded to a wristwatch in Switzerland in 1910. In 1927, Wildfowl achieved a major marketing success with the launch of the Oyster, which was Role's first major breakthrough. Utilizing testimonials as a key part of their communication strategy, Wildfowl had Mercedes Glitziest wear the Oyster while swimming across the English Channel. After being immersed for 14 hours and 15 minutes, her Oyster remained in perfect condition.The following morning, Wildfowl reserved the front page of the Daily Mail and advertised the watch as the "Wonder Watch that Defies the Elements." This marked the beginning of the renowned Role testimonial ad campaign that endures to this day. Hans Wildfowl was born on March 22, 1881, and after being orphaned at 12 years old, he received an education at a prestigious Swiss boarding school.

Subsequently, Role became closely linked with extraordinary accomplishments, including Sir Edmund Hillary's successful ascent of

Mount Everest in 1953 and Jacques Picador's exploration of the ocean's depths. This latter feat was particularly astonishing: the watch was attached to the exterior of a submarine and reached a depth of 3,048 meters – twice as deep as any currently manufactured sports watch can descend. The Daily Mail advertisement highlighting these achievements paved the way for Role's association with extraordinary endeavors.

In 1960, following his demise, Wildfowl's hairless widow established a private trust overseen by a board of directors to ensure that the company would never be sold. Two years later, the board appointed 41-year-old And Hinder, who had worked under Wildfowl for 12 years, as Role's new managing director. The subsequent quartz revolution of the late 1970s and early 1980s nearly decimated the mechanical watch industry, leading to over half of Geneva's watch manufacturers going bankrupt.Fortunately, Role managed to survive the crisis by remaining faithful to its conviction: the production of quartz models, which once accounted for 7%, now only represents 2%. In 1992, Patrick Hinder succeeded his father and became the third managing director in almost a century. In that same year, Role achieved its objective with the patented 'Oyster' case, which was as impenetrable as an oyster! Initially met with skepticism, this invention eventually became a standard for sports watches. Another significant innovation took place in 1931, five years later, when Role developed a self-winding mechanism that eliminated the need for manual winding. Role perfected and patented this perpetual self-winding mechanism, which utilizes a semicircular rotor weight to wind the watch with even slight movements of the wrist. And so, the stage was set.Role, a company belonging to the Wildfowl trust,

has achieved the impressive feat of creating a wristwatch that is both small and resistant to external factors, while also eliminating the need for manual winding. This unique status allows Role to prioritize long-term strategies without the pressure of satisfying shareholders seeking immediate profits through dividends. Instead, Role can reinvest their earnings into the company, enhancing production, after-sales services, and research and development. Furthermore, Role is not compelled to conform to industry trends in order to appease shareholders. This distinctive approach sets Role apart from other major players in the industry. Similar to their iconic Oyster model, Role operates with utmost secrecy. The company is not obligated to disclose financial information and their top executives maintain a low-profile, refraining from interviews. Despite this confidentiality, it is estimated that Role employs approximately 6000 individuals globally, with 3300 employees based in Geneva. Their operations make Role one of the largest employers and tax contributors in Geneva.

Role is the leading brand in the luxury watch industry, selling approximately 750,000 watches each year and generating an estimated turnover of 2.5 to 3 billion CHEF. With 22 subsidiary companies worldwide, Role distinguishes itself by maintaining a "one brand and one product" tradition, except for its second brand, Tudor, positioned as a more affordable option. Despite this, Role's success cannot be compared to the watch making takeovers of 1991. Additionally, Role has not expanded into parallel product production and has diversified its holdings into real estate and financial assets such as banks, chemicals, and insurances.

Chapter 2: Marketing Strategy of Role - The Power Of The Role Marketing Strategy Over The Years....

Role is the first brand that comes to mind

when thinking about luxury watches. While there are other luxury watch brands priced higher than Role watches and with tighter production outputs, most people would prefer a Role watch. This success can be attributed to the effective marketing of the Role brand. The selling points for Role watches are numerous and contribute to their worldwide recognition. Even though there are more exclusive brands, average consumers are unlikely to be familiar with them. This demonstrates the effectiveness of Role's marketing, as even non-targeted and less privileged consumers desire these watches. The marketing team focuses on key points such as the brand's association with history, tradition, and pacification, among others. These are exactly what people look for in a luxury watch, and Role delivers on all counts. Role has a long history of innovation and their technological advancements are still evident in today's modern timepieces. While they were not the first to introduce the self-winding watch, they innovated on the 1923 design to create the standard self-winding mechanism seen in today's watches.In 1960, explorer Jacques Packard attached a Rolex Sea Dweller Deep-Sea Special watch to his submersible and descended 10,916 feet into the depths. Remarkably, the watch still kept perfect time. Additionally, Rolex watches are renowned as status symbols due to their exclusivity and limited production. Unlike other luxury brands, Rolex has successfully positioned itself as an achievable luxury, appealing to a wider audience beyond their intended market. This branding strategy ensures that when individuals become financially able, they consider purchasing a Rolex above all else. Consequently, it is not surprising that one of the first gifts a newly promoted senior associate in a law firm may

choose for themselves is a Rolex, even if they are only slightly less privileged than typical Rolex buyers.

The current positioning of Role in the marketplace is characterized by conservatism and tradition. The company has maintained the same product and communication strategy for decades, which has allowed them to gain a sustainable competitive advantage. Role has successfully portrayed their brand as embodying achievement and they continue to nurture this myth through successful celebrity endorsements. The brand also maintains a sense of mystery in order to cultivate its legendary status.

Role's communication strategy is highly elaborate and specific. They rely on the use of sponsorship, particularly celebrity endorsements, and emphasize their status as a mysterious brand. Celebrity endorsements have always played a key role in Role's communication strategy, and the use of testimonials dates back to their first advertisement in 1927 featuring Mercedes Glitziest and the Role watch. For the past decade, star tennis ace Roger Feeder has been the brand ambassador for Role Watches. His status as a winner and record-breaker in the game adds to Role's appeal. The strategy has evolved over time, but the association of success with the brand remains at the core of their communication.

During the earlier years, the task of the ambassador was to test the watch in extreme conditions and demonstrate its durability and functionality in exceptional situations. The ambassador served as a symbol of the product's quality and dependability.

Role, throughout its history, has chosen exceptional individuals who are representative of their time and expertise. These individuals range from dance choreographers like Maurice Bajar, ice skaters like Peggy Fleming, photographers like Helmut Newton, opera singers like Placida Domingo, and

golf players like Arnold Palmer, to explorers like Sir Edmond Hillary. Role's intention is not only to associate themselves with well-known personalities but also to select individuals who have accomplished great achievements and have become or will become part of history. This is how Role joins them in their journey, leaving their mark.

Chapter 3: Various Dimensions of Marketing

Salient Dimensions: Depth of brand awareness

Role is recognized as the most valuable watch brand in the world and the fifth most valuable luxury brand (following Louis Button, Hermes, Gucci, and Chanel). Even if one is not a watch enthusiast, it is highly likely they are aware of Role watches. Whether through gangster movies or simply being a regular movie viewer, Role has become an iconic name. Besides Timex and Swiss watches, Role is widely recognized as one of the most prestigious and expensive luxury watches.

Breadth of brand awareness

Role is celebrated for manufacturing top-quality products within the luxury segment.When we desire to purchase a luxurious watch, we choose Role. Despite its higher price, Role intentionally maintains exclusivity and appeal by keeping it inaccessible to most individuals. The primary characteristics and supplementary features of Role watches include product reliability, durability, and serviceability. These watches are meticulously crafted using the finest materials, whether it be metal or precious stones.

Role watches are renowned for their waterproof capabilities, and the Oyster model was the first waterproof watch in the world. Although technology continues to evolve, modern Role watches are designed to endure even more extreme conditions. The special locking device securely screws the back onto the oyster case, offering protection against the environment. Additionally, the knob used to wind the

watch is designed to prevent water and dust from entering it.

In terms of customer service, Role watches provide exceptional support. Role's in-house movement is highly regarded for its accuracy and robustness. Every model is certified as a Chronometer. Many watch repair professionals have expressed their preference for working with Role movements due to their simplicity and easy availability of parts. Overall, Role excels in creating a mass-produced movement and watch of world-class standards, demonstrating their commitment to providing quality timepieces.The Role watch is the epitome of style and sophistication, representing superior quality. Role is renowned for manufacturing the finest products in the luxury segment. The production process for a Role watch involves extensive time and resources, resulting in higher prices. However, being a luxury brand, Role can afford to maintain exclusivity and appeal by keeping the prices high, making it inaccessible to most people.

Role's image campaign primarily targets male consumers. The style of Role watches is predominantly designed for men, featuring larger and bulkier dials. The crown is used as a symbol, signifying royalty.

When considering purchasing a pre-owned Role watch, buying from a reputable online source is often the best option. Websites like www.Showtime.com acquire pre-owned timepieces from collectors and other jewelry stores, allowing for significantly lower prices compared to retail stores.

One of the reasons for the enduring success of the Role brand is its reputation for maintaining or even increasing in value over time. This contributes to Role's status as the most influential watch brand globally. In some cases, people may invest in a Role watch not only for its expensive nature but also for its name and potential financial return.Brand credibility

Among the company's innovations are the first waterproof watch case, the first wristwatch with a date on the dial, the first watch to show two time zones at once, and the first watchmakers to earn chronometer certification for a wristwatch. This establishes Role as a reputable brand in the industry.

Brand consideration

Role is often recommended when someone is looking to buy or gift a luxury watch due to its prestige and long-standing reputation.

Brand superiority: Points of Parity and Points of Differentiation

Role offers durability as a point of parity. Additionally, their innovations in design and features, such as displaying multiple time zones, differentiate them from other brands. Their century-long legacy further enhances their prestige.

Attractive History and heritage

Wearing a Role watch evokes feelings of success and high social status. It also garners social approval and self-respect.

Resonance Dimensions

Behavioral loyalty stems from the fact that Role watches retain their value and, in some cases, increase in value over time, making them sought-after collector's items passed down through generations. Attitudinal attachment is formed as wearing a Role watch creates a sense of belonging to a community.

Chapter 4: SWOT Analysis of Rolex

SWOT Analysis of Rolex Strengths: Rolex has significant financial capabilities, which is evident through various indicators.

By the end of 2004, Role inaugurated a new 42000 mm industrial complex worth 1 billion Swiss francs, which was entirely self-financed. Many takeovers also occurred and were always self-financed, including the takeover of Role Bennie, which could potentially increase profitability and expand their financial capacities.

Regarding brand awareness, the figure indicates that Role has a 97% awareness rate. The Role brand value is widely

recognized globally, and the name is well-known. Role's ambassadors are diverse and of high quality, making it challenging for competitors to imitate. Role not only sponsors events to promote their name and logo but also utilizes these events in print advertisements to enhance their association with specific fields or sports such as sailing or golf.

However, there are some weaknesses. Role is somewhat constrained by its well-defined strategy, making it difficult for the company to deviate drastically from it or introduce more innovation. Explaining a new strategy to existing customers without confusion can also be a challenge. This drawback may result in leaving untapped market segments that Role cannot successfully capture.If the fashion trend shifts towards square watches, Role may face negative consequences as their reputation is closely tied to round watches. It would be challenging for them to establish a presence in the market for square watches (

). Additionally, Role is strongly associated with luxury and craftsmanship. Some people even say "They are not making watches, they are making Role". However, difficulties arise when there is a misunderstanding or distortion in communication, which can lead to a loss of brand control and identity (

). This can gradually erode the brand's image as customers begin to take control. The perception of Role being "showing off" and "arrogant" conflicts with the brand's appeal to those who appreciate refinement and traditional design (

). Moreover, counterfeiting poses a significant threat to the equity of Role. The counterfeit watch industry generates sales of over $1.8 billion per year and damages the company's brand reputation (

). Lastly, Role struggles to attract a younger market segment as it

does not resonate with the youth (It is unlikely that the younger generation will have the same attitude towards luxury goods as their parents. There are several opportunities for Role to take advantage of and enhance its brand equity. One suggestion is diversification, such as expanding into jewelry through the acquisition of Gay Frees. However, the company may face challenges since their brand is strongly associated with watches. They could consider creating a new brand to avoid diluting their current brand, but this would mean losing the advantages associated with their brand capital. Another opportunity is to strengthen their presence in emerging markets, particularly in China and Asia. Additionally, building a brand community can increase customer loyalty and retention by fostering relationships between customers, the brand, the company, and the product. According to Necromancer, a brand community consists of interconnected relationships that center around the customer's experience.Ferreira and Harley Davidson are famous examples of successful brand communities. They associate youth with Role, purposefully ignoring fashion trends to the point where the younger generation may not even recognize the brand. This strong reliance on tradition can be seen as a lack of ideas and innovation. Role should research the current tastes of younger customers already in the market for Role watches and tailor campaigns and watch designs specifically for them. Additionally, Role has always had more of a male identity, with the majority of their watches being sold to men. Their image campaigns also heavily emphasize males. However, research shows that women make up the majority of jewelry and watch purchases. While mechanical watches are typically designed for men with the belief that women do not

understand technology, this mindset is changing and women are now interested in buying technological timepieces. Role should take advantage of this opportunity by employing more female ambassadors in their advertising and communication, exploring a joint venture with De Beers to target females with an exclusive watch, and increasing sponsorship of sports events attended by females.

Introduce a line of watches exclusively for women. In addition to the above suggestions, Role can utilize its secondary associations in the following ways:

Corporate Social Responsibility: Role can raise awareness about environmental issues and sustainable development. They can highlight how the steel used in their watches is specially manipulated to reduce waste and showcase special alloys that minimize the use of natural resources. This way, Role can provide customers with high-quality products while promoting responsible consumption.

Joint Venture to Support a Cause: Role can partner with organizations fighting against preventable blindness, for example. They can launch a campaign and design a unique watch to celebrate the partnership. The proceeds from the sale of this watch would be donated to the cause, helping deliver eye care to underprivileged areas.

Role Phone App: By developing a mobile application, Role can provide customers with instant access to their entire product range. Customers can browse collections, locate Role retailers, and stay updated about news and events happening worldwide.

Role Maritime Quarterly Magazine: To engage customers further, Role can launch a magazine featuring articles, photographs, news, events, updates, and collections. They could also dedicate specific editions to special events or themes such as Windblown or James Bond.

Role Maritime Quarterly can provide the digital edition of their magazine to users for free. This digital edition

will include the complete content from the print edition as well as interactive features. The goal is to create a unique and easily accessible interface for readers. It is essential for Role to take action against counterfeiting, as it damages their brand equity and poses a significant risk. The example of Vance, a Japanese distributor, hiring Brad Pit for $5 million to endorse Role watches in Japan, highlights the popularity of the brand in the country. Vance does not have a license to sell Role watches and obtains them through unauthorized means such as buying from the grey market or sending employees abroad. Role must allocate resources to combat this illegal use of their brand and consider creating an exclusive online store or distribution site that all authorized e-retailers must link to. The luxury goods market is thriving both locally and globally, with millions of individuals possessing significant wealth and a large number of consumers willing to spend on high-end products.to be successful in the market, it is crucial for them to tap into the psychology of consumers rather than solely focusing on their practicality.