Rolex is a private brand that deals in manufacturing, designing and distribution of wrist watches. The most premium wrist watches that you can imagine. Alfred Davies and Hans Wilsdorf founded this watch manufacturing company in England in the year 1905. Presently the company’s headquarters are located in Geneva, Switzerland. Rolex is amongst the top hundred powerful brands in the global market and the largest with a single day produce of two thousand watches. Some of the competing brands for Rolex are as follows
- Universal Geneve
Product in the Marketing mix of Rolex
Rolex has the distinction of having many “firsts” / innovative products launched due to its R&D and manufacturing of unique and timeless watches. It was the first watch company that received a chronometer certificate, first to have automatic date changers, first to have a winding rotor that was oscillating and most importantly first wristwatch that was waterproof. Rolex offers nine varieties of watches for men’s collection and six models for women’s collection. They have also introduced five new models like the Yatch-Master II. The series of Rolex products are as follows
- DAY-DATE II
- EXPLORAR II
- OYSTER PRECISION
Place in the Marketing mix of Rolex
Globalization of products has led to many agreements between countries encouraging free trade. The tariff exemptions on exports and imports will lead to the lowering of actual prices of the company,as most of the manufacturers are located in Switzerland.
On a global front these exclusive watches are distributed in major places around the world through certified dealers. Most of the watches are manufactured in Switzerland and then distributed to the foreign dealers.
Rolex has always encouraged a personal relationship with the client as this endorses its actual brand image. The company does not allow the sales at poor locations like small showrooms and not even on the internet. Instead, the brand is available only at selected retail showrooms, thus avoiding the chances of counterfeit watches.
The brand does not have a very large distribution network. But to maintain its premium value, a premium channel is needed which Rolex definitely has. Rolex is a global brand with 28 affiliates and 4000 watchmakers in nearly 100 countries. The brand’s outlets and retailers are available in almost all the continents of the world.
Price in the Marketing mix of Rolex
Rolex is a luxury item and it has a super premium pricing policy for its products. Its pricing range varies in accordance with the model of the product and the materials that are used in its manufacturing.
The labor costing is also very high as the brand employs only the best craftsmen for assembling and designing purposes. The retail prices for different ranges like“Diamond Inlay” are much higher. “GMT ice” is the costliest watch to be produced from the Rolex factory, priced at 485,350 dollars.
The high prices of the watches are affordable to the upper class of people largely. The increase in the prices of raw materials like gold has forced the company to once again raise their prices.Therefore, the high cost of production results in higher pricing policies but the company still makes a profit because of its unique design and the value of the finished product.
The brand has targeted consumers from the wealthy class to whom money does not matter but exclusive items do. Hence, the market for such watches is always open. As the range of products is limited, it also lessens the financial instability, thus maximizing the chances of large profits.
Promotions in the Marketing mix of Rolex
Rolex has always branded its products as luxurious and owning it is a status symbol. Its product line is marketed only to a particular demographic which is uber rich. Hence Rolex is always interesting in linking its watches to a particular high profile sport or event. The company promotes the watch as a specialized product for every individual consumer. The goal of the brand is to persuade the customer that there is only one suitable watch for him and that is Rolex.
“Australian Open” and “Wimbledon” have made Rolex as the tournament’s timekeepers. It is also the timekeeper for the golf tournaments “U.S Open” and “The Open Championships”. Rolex also sponsors “The senior Open Championship” and the “Women’s World Golf Rankings”.
It is the title sponsor to “Rolex Sports Car Series” and “24 Hours of Daytona”. Since the year 2001, Rolex has been the timekeeper for the motor racing Le Mans 24 Hours and in 2013 became the timekeeper for FIA Formula 1.
Sir Jackie Stewart, driver of Ex-Formula 1, was its brand ambassador since the year 1968. The other famous celebrities and sportsment to be linked with this prestigious company are Roger federer, Michael Schumacher, Daniel craig, Cristiano ronaldo, Arnold Palmer, Dame Kiri Te Kanawa and Jean Claude Killy.