Marketing Strategy

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“Quality Takes Time”

MARKETING STRATEGY
MKT 306

Tutor: Ms. Alison Watson
Due: Monday, January 10th, 2011

Table of Content

1.0 Brief History of Wrist Watch Industry

2.0 Executive Summary

2.1 Rolex Competitors

2.2 Rolex Marketing Tools and Techniques

3.0 Introduction

4.0 Situational Analysis (SWOT)

4.1 Situational Analysis (PESTLE)

5.0 Differential Advantages / Competitive Edge (USP)

6.0 Segmentation Targeting and Positioning (STP)

6.1 Rolex Competitive Positioning

7.0 Market Objectives and Goals

8.0 Marketing Strategies and Programmes (4 P’s)

9.0 Conclusion and Recommendations

Bibliography

1. 0 A Brief History on Wrist Watch Industry
The first wrist watch was invented in 1868 by Patex and Philippe however it had too much of a feminine flair and was considered for women only. In 1904 the creation of the first wrist watch for a male came about when Louis Cartier was asked by Alberto Santos-Dumont, an Aviation Pioneer to manufacture a wrist watch he could wear while flying. It soon gained popularity during World War I. That same type of watch became the blueprint of what wrist watches are like today. In the 1920’s Rolex (meaning “Exquisite Clockwork”) an independent Swiss watch manufacturing company founded by Hans Wilsdorf and his brother-in-law Alfred Davis in 1905. debuted into the industry. To compete in this highly competitive market Rolex first analyse its internal and external markets to formulate an effective marketing plan and later aligned it plan to the company’s outlined objectives and goals. Their strategic marketing initiative augured well for the growth. Rolex with time positioned itself as the single largest luxury and quality watch brand in the world. This brand has adorned the wrist of many high class celebrities and power house Executives. The brand is one that symbolizes style, sophistication and status. The company attributes its climbing success on its investment in product development with innovations such as: * Creation of the waterproof and airtight watch

* Creation of the automatic movement, self winding watch (1928) * Creation of the automatic change date on dial watch (Date Just - 1945) * Creation of the automatic change day and date watch (Day Date) * Creation of the waterproof watch case (Oyster Perpetual Submariner – 1955) * Creation of time device showing two time zones (GMT master – 1954) * Earn a chronometer certificate for a wrist watch

The Submariner and Daytona a two of the signature models under the Rolex Brand.

2.0 Executive Summary
In (2003) Rolex was recorded to have made £1.75 billion, US 3 billion, (CHF)/Sw.Fr 3.02 billion. The billion dollar company has 27 authorized dealership locations worldwide with 28 affiliates worldwide. They rely on over 4000 watch makers in over 100 countries to produce high quality, crafted wrist watches. The headquarters is based in Geneva Switzerland and in 2007 they established another dealership location based in the United States with a service centre. In Bloomberg Businessweek Newsprint dated 17th march 2010 Reporter Tom Mulier penned the Heading: “Swiss Watch Hegemony Threatened by ‘Trendier’ Omega”. This brief article will allow me to do a comparative analysis of Rolex and Omega which falls under the Swatch Group. Mulier‘s report gave a preamble to Rolex and its decline in sales and market shares. It would not be wrong to state that Rolex is one of the brand marketing giants in the wrist watch industry created and designed to meet the needs of a target market which appreciates high quality, elegance and sophistication. It therefore begs to question what are the factors surrounding the decline in sales to the extent that Omega which falls under the competitors umbrella Swatch Group can close in on the market margin. Without debate a brand like Omega cannot come close to the brand position Rolex has been privileged to enjoy for...
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