After learning about how companies use different marketing strategies by finding their own criteria for targeting, segmentation, positioning, and their own point of parities and differentiation, I decided to choose the famous watch brand Rolex as an example. Rolex is known to be a watch worn for luxurious appeal. Known for its rich history in watch manufacturing, Rolex watches come very at a costly price. For this reason, Rolex targets wealthy individuals ranging from young adult to the old.
Market Segment
21 to 35 year old males living in the United States, who have recently landed a high-paying job, earned a promotion or received a bonus. These are young men who want to show off their new found status. They have bought their expensive suits and shoes to wear to their job, but they need to complete the look with the sophistication of a Rolex watch to show that they have “made it.” This target market currently values cell phones as their primary way to tell time and they do not yet appreciate the value of a watch. They need to be educated on why they should be wearing a watch as opposed to checking their cell phones for the time. Watch sales have dropped considerably by as much as 30% in the past several years among young men. This is a market that needs to be shown how owning a watch is a sustainable competitive advantage. This group is highly active on the internet and is influenced by advertising and their friends’ postings on Facebook, Twitter and YouTube.
Competition
Competitive Positioning
Rolex has many competitors in its field. But highlighting the quality of their products, overall attention to detail and breakthrough branding and positioning efforts will separate Rolex from its competition. Attention to overall marketing strategy will also help to differentiate Rolex in the industry eye. Their major competitors are: Timex, Movado, Longines, Rado, Mont Blanc, and Swatch who sell their luxury line in the same price range.
Points of Difference
At Rolex, men and women who service and produce these machines are considered artists, who blend both science and design to create these master pieces of art. They understand the interplay between all the materials used, and combine all the thoughts needed to create an object that is a reflection of care and intent. At the end, they believe that it is a piece of living art that is greater than the sum of its parts. Furthermore, and this is the heart of Rolex, people who work on watches are very passionate, have incredible ideas and are always excited to produce such products.
From another angle, the workshops where the watchmakers work are very much organized. Managers say that the person is expected to work in a library like atmosphere Example: clean and quite that will enable the watchmaker to focus and to be comfortable. I believe, watch making is not for everybody, it requires talent, time management, commitment and patience. What adds to all of this as well is dealing with very delicate and expensive products. Not to mention, adding the jewelry further pressurize the watchmaker.
Points of Parity
Exclusive Distribution Channels – Rolex, Armani and Omega sell their products through selective distribution channels which appeal to consumers of the high-end market who wish to differentiate themselves from the masses by using branded products.
Prestigious Brand Image – Rolex, Armani and Omega are well established luxury brands that cater to high-end market with premium prices, high quality and elegant designs.
Improvements
Rolex must step up their fight against counterfeiters to protect their valuable trademark and reputation. They must try to make consumers aware of the risks associated in purchasing counterfeit products.
References:
http://www.maxim.com/style/watches/article/how-not-improve-rolex
http://www.internationalbranding.org/en/branding-case-study
https://strategicimagebranding.wordpress.com/case-study/
http://www.scribd.com/doc/36882070/Rolex-Ppt#scribd
mashayer 