1. remaining marketing mix elements (price, place, promotion)

1.   
Introduction to the Rolex MARKETING MIX

 
Since
the Rolex Company was founded, it has focused on the features that are
important to its customers. It has built a reputation of having a very accurate
and prestigious watch movement. The way the company creates its brand image is
unique and effective, instead of relying on complex brand image based on words
or pictures; it has a simple single image of a crown.

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Rolex
is one of the greatest watch marketers today. The firm’s strategy to achieve success
is the 4 Ps model; price, product, promotion and place, which are tools that make
up the marketing mix. The marketing mix of the Rolex shows that the usual way
to market products is not always a good idea. To achieve success it is
important that marketing managers take advantage of the controllable tools of
the marketing mix as they have done at Rolex.

 

2.   
Analysis of the remaining marketing mix elements
(price, place, promotion)

 

2.1.PRICE

Generally, the key for a product’s success is
its low price; however, Rolex is a luxury item and such products are defined by
their higher price. Since trust is the key to luxury brands, Rolex builds it
through its devotion to quality. It successfully communicates that the watch is
of such high quality that it is worth the price, so the customers are willing
to compromise it.

The company does not offer any sort of
discounts, price reductions or sales, because consumers are willing to pay the
prices set by the company. In fact, even during an economic downturn that
forced other watch brands to discount, the majority of luxury watch shoppers
where still looking for a Rolex.

Rolex
employs the premium-pricing strategy,
which has a different concept and implementation and avoids odd pricing. The
company sets a price point in order for others to follow and does not pay much
attention to the competitors’ prices. Rolex pricing range varies according to the
model, the materials used in manufacturing and the
labour costs, which are high as the brand employs only the best artisans for
manufacturing and designing its watches.  

Some of the most famous models are for example: Oyster
Perpetual, Day-date, Sky-dweller, Pearlmaster, Submariner, GMT-Master II,
Cosmograph Daytona, Cellini, etc.For
what is shown on the Rolex webpage, the retail prices start at 4.700€ and go up
to 60.000€. Completely gold watches, covered in gems, are priced much higher,
but the exact prices are known only on request. However,
the most expensive Rolex ever produced by the Rolex factory was the
limited edition “GMT Master II Ice” with a retail price of 410.000€.

2.2.PLACE –
Distribution

In
general, wide distribution leads to greatest sales. However, luxury brands like
Rolex have limited distribution to increase their exclusivity. Unlike most
manufacturers that try and obtain as many retail outlets for products as
possible, Rolex has decided to severely restrict the number of distributors to
only high-end jewellers who are spaced geographically, agree to carry a certain
level of inventory and use certain display patterns.

Genuine
Rolex watches are on display and available for sale by Official Rolex Retailers
that are generally located in areas such as famous malls, exclusive showrooms,
popular streets, which are visited by the group of people with a higher income.
The network of Official Rolex Retailers covers more than 100 countries around
the world.

Rolex
does not have a company outlet on the internet. The website https://www.rolex.com has information
on the watch collection and the information on retailers but it does not have a
location to purchase.

With
limited distribution, Rolex has great market control and does not face poor
service problems or channel conflicts. The company performs its channel
functions effectively. It adds value by using distributors to reach retailers
and has less control of the final customers.

The
problem that Rolex faces is that the replicas of some of the standard watches
are almost identical in appearance and similar in quality as an original Rolex.
Therefore, the limited distribution channels that have been authorized by Rolex
allow dealers to set lower prices for sales and repairs and those that are
willing to purchase copies are able to find them in greater supply.

 

 

2.3.PROMOTION – communication

Mass
advertising works for a variety of products, but it is not common for luxury
brands. Both Rolex’ watch collections, vintage and modern, are associated with tradition,
sophistication, achievement and class. Rolex does not produce commercials
through the mainstream advertising channels (national television, radio), but
more often uses image advertisements, which show prestige and wealth by displaying
images of large yachts and race cars. The target of the commercials are wealthy,
attractive and active people who lead interesting lives and purchase Rolex
watches as a statement or as a
reward for their success.

Its
advertisements include brand ambassadors who elegantly carry the brand name –
Rolex by performing activities related to their profession. A great example are
its brand ambassadors, Tiger Woods and Roger Federer, who are respected and
recognized all around the world.

Rolex
mainly focuses on sporting events that attract people who desire and are able
to purchase a watch from 5.000€ to 100.000€. It is the official sponsor of
tennis grand slams (Wimbledon and the Australian Open), and of two
of the majors in golf (the Open Championship and the U.S. Open). Since
2013, Rolex has been the official timekeeper to the FIA Formula 1 world championship.
It is as well the title sponsor to 24 Hours of Daytona (sports car
endurance race), currently known
as the Rolex 24 at Daytona and The 24 Hours
of Le Mans. Rolex watch collections like Sports Car Series and Daytona got
their name from the sporting events and were specifically designed to attract racing
drivers, race fans and sports car owners. 

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