Arguably one of the very most famous brands ever, Rolex has a long history steeped in innovation and quality, and a solid association to prestige, mystique and success in the imagination of its customers. Set up in 1905 by Hans Wilsdorf and his sibling in law, the London based mostly company - actually called Wilsdorf & Davis - specialised in watch distribution. In 1908, Wilsdorf made a decision to create a new name for the company that was pronounceable in all dialects and concise enough to display on the dial of its designer watches - and the super-brand Rolex was created. The company's head office relocated to Geneva, Switzerland in 1910 and remain a significant contributor to the economic system today by using more than 3300 employees.
Ironically, the company is as hermetic as its renowned Oyster case. Wilsdorf - an heireless widow at his death in 1960 - remaining Rolex to the family Wilsdorf Trust so Rolex could never be sold and making sure Rolex could stay true to Wilsdorf's worth and long-term perspective of brilliance and prestige without interference from shareholders. This unique position also means that Rolex will not distribute financial or sales data and therefore the figures contained in the remainder of the statement are estimations unless often specificed/referenced.
Annual development of Rolex designer watches are projected at 750, 000 per time - a key feature of Rolex's strategy is to ensure that demand is obviously higher than source.
The commitment to the brand is also obviously evidenced by the 5-time hanging around list for it's stainless steel Daytona model.
Competitors
The brands main competition are OMEGA, Label Heuer and Breitling who compete in similar market sections for watches which form uses function,
Rolex remains the market leader using its competitive benefit of almost a hundred years of sporting, progressive breakthroughs as explained below.
2. 1. 1 Key achievements
It can be argued that Rolex's impressive achievements are first rate and unparalleled by any rival competing in the luxury segment:
Among the company's innovations are:
Unlike it's rivals, Rolex is within a strong strategic position - its founder Hans Wilsdorf ensured that the company can't ever be sold and it today belongs to the Wilsdorf trust. Rolex doesn't have to deal with the pressure of shareholders who require short-term benefits to be able to show a profit from their purchases through the redistribution of dividends. On the other hand, Rolex gets the possibility to reinvest the huge benefits in the company to improve distribution and after-sale services and increase research and development. Furthermore, they aren't pressured to check out the general styles of the industry to please shareholders. At this point, Rolex is the sole luxury watch brand not carrying out a multi-brand strategy.
Rolex employs about 6000 persons worldwide of whom 3300 employees are centered in
Geneva; setting up Rolex as you of the main employers and taxes payers of Geneva. They are
selling around 750000 watches each year for around turnover included between 2. 5
and 3 billions CHF. As Annex III: : Top 20 watch brands (sales) shows, Rolex is the first
brand of the luxury watch industry in term of sales (factory price). Furthermore, Rolex
possesses 22 subsidiaries companies distributed all around the world
2. 6 Product Offering
Rolex produces only rounded watches since more than 40 years. The brand encompasses only
two selections: the Oyster that presents around 140 models and 80% of the sales and the
Cellini. The design is definitely very conventional and the one radical advancement was
brought in 2000 with the kick off of a brilliant Oyster Daytona.
Current strategic approaches
Celebrity endorsement:
Conservatism and traditions are the credos of Rolex strategy: same product and same
communication within the last decades. Its unique communication strategy and differentiation
enabled the business to get a sustainable competitive advantage over time. The brand
embodied achievements and keep nurturing this myth because of successful celebrity
endorsement. Rolex also sustains a part of unknown around its brand in order to cultivate
the tale. Rolex has been considered a long time as a guy watch; they are trying to get
the woman to like it to. Another important theme of the strategy is the backward vertical
integration to be able to secure future source and definitely loose reliance on competitor
groups. Finally, rising market represent also important due to its foreseen potential. The
next portions are talking about these tips.
2. 9 Concentrate on Market
Market segmentation
2. 11 SWOT Analysis
3. 0 A Broader Framework - market analysis
3. 1 Market Overview
3. 2 Immediate Competition
3. 3 Indirect Competition
3. 4 Market Analysis
3. 5 Changing Market and Future Trends
3. 6 Marketing Mix
3. 7 Opportunity Exploration
4. 0 Future Strategy - Proposal
4. 1 Overall Aim
4. 2 Objectives - Channel Technique to achieve goal.
4. 3 Market Evaluation - Distributor Overview
4. 4 Potential Stakeholders
4. 5 Marketing Mix
