Rolex branding and positionnement PDF

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Cette étude fait le point sur le positionnement de la marque internationale de luxe Rolex ainsi que son positionnement. Ce document a entièrement été rédigé en anglais dans le cadre de mes études aux Pays-Bas....

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ROLEX BRANDING AND POSITIONNEMENT

ANGELA SICHANH INTERNATIONAL BUSINESS & MANAGEMENT STUDIES 2016/2017

Table of contents

Executive summary 1. Introduction (objectives and scopes) 2. Methodology

I- Identity of Rolex and analysis of its environment (brand inventory) o H  istory and presentation of the company o M  ission and strategic objectives of the company o D  emographics of the target audience o B  rand related attributes o P  roduct related attributes o B  rand portfolio o 4  P strategy o S WOT analysis o P  osition of Rolex on the watch market (competitor analysis and mapping) o P  OP/POD

II- Rolex customers' perception (brand explanatories) o B  rand funnel (attributes, functions, rewards, values, personality) o M  ental map o C  BBE pyramid - Keller brand equity model o S ources of brand equity (brand awareness and image)

III- Recommendations o O  pportunities and perspective of future for Rolex

Conclusion Bibliography Appendix

EXECUTIVE SUMMARY There has been a lot of studies done about how to conduct an existing brand audience by a lot of expertise in the field and they agree that a brand audit is very useful when trying to identify and address problems obtaining a net result of helping the firm to turn things around and grow its bottom line. It has been suggested too, than brand audit is need at the mature stage of evolvement of a firm when it start losing relevance and customers find a substitute firm offering a new thing. At that point is when a brand audit takes place in order to keep the brand fresh and relevant to know when to revitalize before sales start to finally slip.

The main tool used in this report is the primary data which was collected with an online questionnaire focused on the product’s customer posted in a specialized web page.

The key issue is to investigate and realize an in-depth analysis of a brand as it taking into account Customer’s profiles and test the uniqueness of a famous wrist watch brand such as Rolex. In order to make results more concrete, some secondary data has been collected through a researches based on websites, magazines and also specialized forums or data bases.

Research’s results provide the firm overview revealing that Rolex is a leading brand in the wrist watch sector with the highest market share. Also Rolex is considered as a reference brand in consumer’s mind. It is often associated as a luxury and sophisticated good, mainly because its promotion campaigns include famous figures and also considering Rolex is one the main sponsors in some sports competitions. Satisfaction is one of the strongest factor for Rolex as every single respondent to the questionnaire feel satisfied with the product and would also recommend it as unique and exclusive brand recognition.

Furthermore, detailed interpretations of results are going to be explained among this report analyzing every single aspect in the questionnaire giving further information about it.

INTRODUCTION

Branding these days really represents the value of an organization's products or services offered to the public, while expressing the essential truth behind the company’s efforts. When our group first began this project, we were trying to think of a brand that is a familiar name to most consumers, but also has some exclusiveness behind the brand name as well. After many different thoughts and brainstorming, we decided that the watch brand known as Rolex would fit this role perfectly. There are just a various amount of reasons why Rolex is one of the

leading brands in the market, and has been for a while now, but all of these efforts put forth by Rolex have also helped strengthen and maintain the reputation that the brand carries.

We realized after we chose the brand that our group would not be able to find every piece of information that was needed to complete the brand audit through secondary research, so we felt the need to implement primary research sources as well to obtain our results. Rolex is such an exclusive brand that has helped construct the niche market aspect for years, and the brand itself is so exclusive and expensive to most of the everyday consumers. While conducting the research, it was slightly more difficult to get a full grasp on what Rolex buyers think of the company, seeing as how you don’t see someone walking down the street with a Rolex everyday.

The remaining sections of the report discuss the use of surveys that our group built and sent out to Rolex buyers, along with a little background information about the company that not all consumers are aware of. Our group also touched on the importance of describing current and desired brand knowledge structures, while providing a little justification for our brand explanatories and bland inventories.

METHODOLOGY

The main objective of this project conducted during eight weeks is to realize an in-depth analysis of a major brand and its customers’ profiles. To do so, the group decided to choose the worldwide-known brand, Rolex. Through a brand audit, the different sources of Rolex brand equity will be determined and then, the group will be able to suggest ways to improve and leverage that brand equity.

To assess sources of brand equity, it is necessary to profile consumers’ brand knowledge structures. A variety of sources of information can be used to assemble this profile. The group decided first to use primary research and set up a questionnaire targeted to Rolex customers. Composed of closed and open questions, the questionnaire will allow us to know how Rolex customers perceive the brand. In parallel, secondary researches have been used based on official websites, trade magazines and business publications but also forums to backup the primary data findings and come up with a relevant conclusion and recommendations.

This report is divided in two parts and will answer the following questions: 1.

For the brand inventory: ❖ How Rolex position itself through its Mix Marketing ? ❖ What is the main target audience of Rolex and how do they reach them ? ❖ Who are Rolex’s main competitors ? ❖ What is the place of Rolex in the watch market ? ❖ What are the similarities and differences between Rolex and its main competitors ?

2.

For the brand explanatory: ❖ What do consumers associate with Rolex ? ❖ What are the sources of Rolex brand equity ? ❖ How strong is Rolex brand equity ?

Moreover, the main objectives will be: -

To analyze the base of Rolex’s brand positioning and equity and to compare it with its main competitors

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To determine perception of Rolex’s customers concerning the brand

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To assess Rolex’s general performance

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To come up with suggestions for Rolex new marketing programs in order to enhance their brand

However, several limitations may impede our analysis. The greatest limitation was the fact that our questionnaire targets Rolex customers and as it is a luxury brand, very few people wear a Rolex watch so it was hard to find them.

I- Identity of Rolex and Analysis of its Environment (brand inventory) o History and Presentation of the Company Rolex has its origins in London in 1905 when Hans Wilsdorf and Alfred Davis founded “Wilsdorf and Davis”. They used to import Hermann Aegler’s Swiss movements to England and place them in high quality watch cases such as Dennison. Rapidly these wristwatches were commercialized and sold in jewellery stores. The first watches from Wilsdorf and Davis were hallmarked with”W&D” inside the caseback.

Three years later in 1908, Wilsdorf registered “Rolex” as a trademark and opened the first office in La Chaux-de-Fonds (Switzerland) but it was not until 15th of November 1915 the company name “Rolex” was registered. Wilsdorf wanted his brand to be easily pronounceable. He thought “Rolex” was onomatopoeic and it sounded as a watch being wound.

In 1914 Rolex watch was awarded by Kew Observatory with the Class A precision certificate, a exclusively distinction normally awarded to marine chronometers.

By 1919 Wilsdorf the company was moved to Geneva, also in Switzerland, establishing as the Rolex Watch Company. The name was then modified to Montres Rolex, SA and finally Rolex, SA. Due to the taxes and export duties which the silver and gold used for the watch cases were too high, the company need to move out of the United Kingdom.

When his wife died in 1944, Wilsdorf created the Hans Wilsdorf Foundation in which he invest all of his Rolex shares in order to know that some of the company’s income would go to charity issues. Nowadays, Rolex is an international brand of Swiss watches with a market share valued all over the world with more than the 50% of the market residing in the US, Hong Kong, China, France and Singapore.

o Mission and Strategic Objectives of the Company Mission Manufacturing, distribution and service of high-quality wristwatches.

Vision

Maintain the long tradition of excellence which Rolex represents.

Objectives * Involve younger population market on the value of wristwatches. * Promoting the brand as well as extend the message to a bigger amount of audience by encouraging users with a social media strategy. * Increase wrist watches sales as a “reward” for key successes in a young man’s life.

o Demographics of the Target Audience Current Market Current target market for Rolex is focused on wealthy consumers looking for high quality and exclusivity watches. These consumers are characterised as to want to show off their wealth. The most frequent Rolex owners are male with an average age of 35, sometimes they are a celebrity or sports figure.

Market Segment The market segment are 21 to 35 years old males mainly living in USA who have recently landed a high-paying job, promote or received an extra payment. These young men have a need of showing off their newfound status. They combine their Rolex watches with expensive suits and shoes while going to their jobs to look sophisticated although they don’t really appreciate the value of the watch, they prefer a mobile phone to tell time. They should be educated to wear a watch instead of a mobile phone for the time. Watch purchased has dramatically dropped by a 30% in the last years within young men population. This market need to be shown the sustainable competitive advantage of wearing a watch. This segment is very influenced and active in advertising and posting on social media such as Facebook, Twitter, Instagram or YouTube.

Secondary Market Segment The secondary market segment entails parents and grandparents who are rewarding their sons and grandsons of 18-24 year olds because of their graduation in high school or college or even when obtaining a job. These are men and women around 40 or more, making above $65,000 per person per year. They are sophisticated people and are aware of the value of a high-quality timepiece and want to transmit this knowledge their sons/grandsons. Only after receiving a Rolex watch as a gift, the young man will understand the value watch has and will be a future brand’s buyer.

Consumer profile Demographic

Gender: male Age: 35 years and above Income: high income Social class: upper class

Psychographic

Traits: status-conscious, confident, independent Lifestyle: wealthy, high quality, luxury, exclusive, sophisticated Interests: technology, fashion, luxurious products

Behaviour

Degree of loyalty: medium to high Research methods: newspapers, magazines, television, internet, social media Buying behaviour: in-store, online

Geographic

Country: worldwide (focus USA) Area: urban

o

Brand Related Attributes ➢ N  ame

The brand name Rolex is synonymous with wealth, exclusivity and tradition. According to their website, the name was chosen because it is easily pronounced in all European languages, and is short enough to be easily included on the dial of a watch. « Short, yet significant, not cumbersome on the dial (thus leaving room enough for the inscription of the English traders name) and above all a word easy enough to memorize, with a pleasant sound and have its pronunciation unchanged whatever European language it is spoken » — Hans Wilsdorf (redwatches.com)

➢ L ogo Throughout the years, the logo of Rolex has been printed in green for the name of the brand and in gold for the crown. Iconic worldwide, the Rolex crown called Oyster is synonym of prestige and perfectionism. It allows people who don’t know the brand to have an idea of the brand positioning. Their logo is simple and easy to memorize.

➢ Slogan Rolex has had only one slogan up until now: "A Crown for Every Achievement". It is obviously a representation of personal success and finality of owning a Rolex, through money and victory.

Packaging Rolex realized that the packaging is fully related to the watch itself and is very important to the customer's eyes. Therefore, they decided to sell their products in boxes similar to valuable jewelry. Rolex packaging is simple and is in perfect harmony with the brand image: elegant and classy.

➢ Know-how As a pioneer of the wristwatch, Rolex designs and manufactures in-house all the essential components of its watches, from the melting of the gold to the assembly of the movement elements of the case, dial and bracelet, through machining and completion

o

Product Related Attributes ➢ Country of origin: Rolex watches are entirely designed, manufactured and tested by Rolex in Switzerland. It is for them the only way to ensure that each component of their watches meet extreme quality standards. Mechanical movements are all strictly certified by the Official Swiss Chronometer Testing Institute (COSC).

➢ The Oysterlock : Rolex watches are shock resistant. ➢ Waterproof: all the models are all equipped with the special Oyster case that provides an optimal protection against water, dust, shock and pressure. All Rolex Oyster watches are watertight guarantees to at least 100 meters (330 feet) to 3900 meters (12 800 feet) for the Rolex Deepsea  watch divers extreme.

➢ Optimal frequency: A frequency to 28 800 vibrations per hour (8 per second) reconciles optimum precision and reliability manner.

➢ Winding by perpetual rotor: Invented by Rolex in 1931, this ingenious mechanism consists of a half-moon-shaped mass rotating freely in both directions about its axis according to wrist movements. It enables continuous winding of the mainspring and thus provides the watch a constant and stable source of energy.

➢ Lubricants high performance: The quality of lubricants is essential for the proper functioning of a mechanical movement. Rolex has developed new proprietary lubricants, synthesized internally, whose life and stability over time were significantly improved.

➢ Tested in extreme conditions: a series of extreme conditions tests are executed in order to ensure that Rolex watches work perfectly in all circumstances.

➢ Certification: The green seal in each Rolex watch symbolizes its Superlative Chronometer. This specific certification attests that the product has successfully passed a series of specific final controls. Green Seal is accompanied in parallel with a five-year warranty applying to all Rolex models.

o Brand Portfolio Rolex produces mechanical watches since more than 110 years and has developed a wide range of product up to now. Their modern products are divided into three lines:

➢ The Oyster perpetual collection includes the original version of Rolex watches and is composed by eight sub-brands differentiated by features and design: - P  erpetual - A  ir-King  which is the least expensive watch of this collection - D  ate with Rolex Datejust and Datejust Turn-o-Graph models that are quite the same as Air-King models but a date display is added. They both have the ability to adjust the date forward one day at a time without adjusting the time.

- D  ay-Date - T his collection is also available for women with the models Lady  Datejust, and Pearlmaster.

➢ The Oyster professional collection has been created for sportsman and athlete and is composed by eight sub-brands: -

Explorer

-

Explorer

-

GMT-Master

-

Submariner

-

Sea-Dweller

-

Yacht-Master

-

Yacht-Master

-

Cosmograph

II II

4000

II Milgauss

Daytona

➢ T he Cellini c ollection is more refined and elegant than the other collections with the incorporation of colored leather watch straps and diamonds. This fine collection of Rolex watches comes in a variety of designs and styles and is composed of eight sub-brands: -

Prince

Cellinium

-

Quartz

-

Cellissima

-

Classic

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Danaos

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Cestello

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Gestello

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Orchid

Tudor Since 6 March 1946, Rolex also designed, manufactured and marketed Tudor, a cheaper brand but whose aesthetic components are quite similar with Rolex. These models were, until 1990, sold with Rolex bracelets and marked also with the crown. However, from a technical standpoint, Tudor watches do not have Rolex movements but more basic Swiss movements, provided by the manufacturer ETA SA. Furthermore, because of its lower investment rate, the brand provided in parallel many watches for the French Navy and other armies in the world. The brand produces watches for men and women with the same size as Rolex watches. It has divided its products under three collections, each one divided different into sub-brands: The Heritage Collection, The Classical collection a nd The Tool-Watches.

o Marketing Mix Product When we talk about the product, we are talking about three products actually. Rolex introduced three different product lines, as seen in “Product portfolio” . The product part of the marketing mix explains Rolex’ core product, actual product and the augmented product.

Core product The product being sold by Rolex is the Rolex watch, the core product , made in Biel, Switzerland. The highest goal is to make watches to perfection. Every single Rolex watch is handmade and consists only of the best materials in order to maintain a lifelong product. The company exists for more than 110 years which is influencing the products nowadays immensely regarding production, planning and the strive for perfection (Rolex.com, 2016) Total sales were and are still growing as well from around 63,000 million US Dollar to around 75,000 million US Dollar from 2013 to 2018. Watches are working differently and are divided into the three main categories Quartz, Digital and Mechanical watches with a variety of subcategories. Rolex decided to just sell mechanical watches. More details about the different watches can be found in Appendix 1.

Actual Product Rolex is only offering luxury watches/accessoires in the high price segment, starting from 4,500€. The brand is associated with wealth and status and is known for its high quality measures worldwide.

Every watch gets a certificate, stating that the purchased watch is actually an original. Every watch comes in a high qualitative box in a dark green with white or beige colored lining. New watches also are having a seal wrapped on it as a second security measure showing that the actual pr...