ROLEX: THE LEADING NAME IN CONSUMER WRISTWATCHES Index 1. 2. 3. 4. Introduction Background on Consumer Behavior of Market and Market Segments Marketing Strategy Evaluation of Roles Marketing Activities I. Introduction Brief Overview of Rolex: Rolex has been cited by a number of sources as a one of the most globally recognized luxury brands. The common adjectives associated with this brand are: prestige, power, status, wealth, and success. According to TIME magazine, “Nothing says you’ve made it like a Rolex. ” Rolex was founded in the early 1900’s by Hans Wilsdorf.
Since its original founding, the company has made many innovations that have distinguished Rolex from its competitors, giving the brand a high market share in the luxury goods industry. These innovations include: the first wristwatch automated to change day/date on the dial, show time zones, and be waterproof. Also, Rolex was the first wristwatch to earn chronometer certification (Wikipedia). These innovations, as well as Rolex’s commitment to producing th premium high? quality products, has distinguished Rolex as TIME’s 68 best global brand in 2009 with an estimated brand value of $4,956 million dollars.
Despite the average retail cost of a Rolex that ranges anywhere from $6,000 to $100,000 dollars or more, consumers find the Rolex legacy, quality, and status symbol worth every penny of this large investment. Swiss Watch Industry: The Swiss Watch Industry is the label given to watches made in Switzerland. In order for a watch to be considered Swiss, it must meet proper standards and be Swiss made as defined by law (Wikipedia). According to TIME magazine, the Swiss watch industry is about four hundred years old.
This industry is composed of two hundred Swiss watch brands, only twenty? five of which are considered luxury brands. Rolex is considered one of the most well? known luxury Swiss watch brands, with one of the most powerful brand images around the world. Although Rolex has maintained high market share through its exceptional quality and symbol of high status, the brand still faces the threat of competition by other luxury Swiss watch brands. The major Rolex competitors include: Louis Vitton, Movado Group major, and Swatch Group (Hoovers).
Swiss Watch Market Conditions: The Swiss watch industry was no exception to the hardships faced by companies around the world due to the economic recession and financial crisis of2007. The Wall Street Journal released an article in 2008 titled, “Bad Times for Swiss Watchmakers”, to report the declining demand and significant drop in exports for the luxury Swiss watch industry. While this industry was expected to suffer from the economic conditions, forecasters were surprised by the actual impact that it had on sales and exports.
In 2008, exports for the major luxury Swiss watch brands had fallen 18%, followed by a decline in both sales and stock ownership. The Wall Street Journal released updates of the Swiss watch industry in March of this year, stating that the Swiss watch industry is experiencing export growth rates of over 30%. This growth in exports is the result of increasing demand in many global markets. Despite the significant downturn in the Swiss watch industry at the beginning of the economic crisis, new evidence suggests that this luxury industry has r