Analysis of Marketing Strategy for Rolex †MyAssignmenthelp.com

Question: Discuss about the Analysis of Marketing Strategy for Rolex. Answer: Introduction The following is the report of Rolex market plan and analysis of their situation in the market. The components and brand design is implemented and all their innovations includes excellent quality, luxury and beauty and prestige (Terpstra et al. 2012). The brand elements, brand identity and calculated brand equity andmarketing mix are well developed and emphasised in their marketing plan. Further, themarketing objectives and financial objectives for the following 6 months are also given in the report. The implementation strategy and action programs are also discussed in the text. SWOT analysis Strength Rolex is a strong brand among the luxury watches in the global market. The company has expanded in worldwide and they are currently present in the 4000 watchmakers in the 100 countries all over the world. The firm presence of the company in the whole market and high brand equity and awareness of this luxury watches are the aspiration for other companies in the business (Terpstra et al. 2012). Weakness The pricing strategy of the company is already high. The reach of their products has been very limited to the riches of the world. The affordability of their product has been an issue for reaching their market. The younger generation is shifting their focus on the Smartphones, thus shifting their taste and preferences to the cell phones. The utility of the product is decreasing the market share of the company (Slater et al. , 2014). Therefore, the high volume of the product watches and less variation in their products have been the weakness of the company recent years. Opportunities Watches in the industry are a symbol of sophisticated personality or perceived as an object of obsession among the users to reflect their personality. This has been the opportunity for watch industry for last years to develop on this perceived value. The younger generation of this are more addicted to the effective social media visibility. This allows Rolex to have effective media presence among their younger customers segment and catch their attention. The YouTube channels effectively will offer the company to have an open dialogue with their potential customers. Rolex has also the opportunities for increasing their product-customer base and create more value individually. Threats The biggest threat that the company is facing right now is the extinction of watch market while competing with the Smartphones. The substitutes of their watches having impact on the decline of the reliability of Rolex watches have also been the factor of decline in their sales. The high volume and high-end production facility affects the uniqueness of the companys luxury watches. The high volume production has been issues for the company (Cavusgil, Zou, 2012). The low-end watches are known as the me-too products that also threatens the companys overall business. Mission vision and objectives The companys focus has been to manufacture watches that are very precision and high quality in nature. They are also in business of giving high maintenance to their existing customers. The business is expanding every year and plans to expand in the coming years. The name represents excellence and they are continuing with their vision of selling high quality watches to the younger generation and the affluent of the world (Slater et al., 2014). Their recent development of the companys objective was to create a larger audience for the company through social media marketing. The have always emphasizes on creating value on their luxury products, wristwatches. The Defining segmentation, target market, positioning of Rolex Available market of Rolex The company has always targeted for the segment that are rich in monetary terms. People who are high in selectiveness and calibre. Buyers who are very accustomed to flaunt and show off their riches, thus reflecting their perspective of themselves with objects. This segment of people are the focus of Rolexs market plan. Penetrated market The average buyer of their watches is aged between 35. Their hobbies would include any kind of sports as the brand ambassadors of this marketing campaign has always been icons from sports background. Other demography of the people of their sales plan are Swiss tag favouritism individuals of different business executives of the world. The dwellers are in the Singapore, France, China, and Hong Kong, US. The other segment that can be targeted are aged between 21 to 36 years. The young executives who have newly joined the business or at a stage of getting career advancements or reward. This segment of people will have motive to buy the high quality watches to flaunt their new discovered status. The rise in the incomes segment and income trends of Australia shows the population of the incomes segment rising and growth in the numbers of male managers rising by 5.3% out of 7.2%. Potential and target market The feasibility of owning a watch should be taught to this segment. The advertisement should be depicting the overall dynamic images that the company shows in their sales plan. The social media using business professional should be approached through Facebook, Twitter, Instagram, and YouTube. He private sector professionals earning more than 1,170,000$ a year can also be a fruitful target segment for the company. The Gifting the children with such objects has been a tradition for many years for Parents as well as the grandparents. Therefore, this target segment can also be targeted. Price range o their watch brands is $5000 to $30,000. The competitors are Cartier and Omega, Tag Heuer. Positioning The brand itself is focused on the wealthy consumers who reflects and represents success, influence and wealth. The designers are well aware of the needs of the audience of the watches and make it with precision, technical perfection and mechanisms. The brands taglines over the years depicts their central brand identity of greatness. Like Live For Greatness, Time is Precious, Waste it Wisely and others. The greatness and precision is regarded for the prestigious riches of the world (Chimhanzi, 2012). Marketing mix of Rolex : 4ps of Rolex Product Rolex offers a product that is has high recognition in the watch industry. The company has a number of range of products, but the most important is the Datejust 41 and are available in steel, bracelet and white gold. The new range of products are also waterproof in nature, which is a unique value proposition with high quality (Chimhanzi, 2012). Price - The level at which the watches has been priced is of great importance for the brand's identity. Therefore, keeping the price or affordability of the watches balance is essential. The marketing mix will be payable in two instalments in whole month. The average AU $ 11,850 Promotion - Rolex success relies on the promotional campaigns. In addition the success factor on the continuation of promotions through magazines, selective television programs newspaper, public relations and through different events that will have maximum visibility. These promotional events are important to increase the awareness of brands. Place The strategized placement of Rolexs is the authentic channel dealers in the wealthiest neighbourhoods and region that helps to set the brands association with quality and excellence. The five star hotels, malls, showrooms are place where the maximum visibility of the brand can happen. Demand Assessment The customer lifetime value is included in the Rolex products that charges a net profit attributed to the entire future relationship with the available and potential customers. The main purpose of this is to provide the customers with the financial values that can have more return on investments for such a lump sum amounts. The Rolex watches hence are very much profitable to buy and can be used in vintage selling (Fifield, 2012). Action programs Digital marketing communication plan Websites the company have a presence of website, for official purpose known as Rolex.com, which can convey the basic message and value proposition to the customer willing to buy their watches. The hyperactive links to their social media presence should be thoroughly optimised and easily available in the front page (Menon et al. , 2014). Social media - Twitter and face book accounts of the company should be thoroughly verified and concerns regarding the followers and of the company that can interact with the officials through this media. The team interaction and should be monitored for updating on regular basis. The You Tube pop up channels and video advertisements can be fruitful for target market. In addition, to the communication of new launch, these videos can be used for featuring other values of Rolex that the brand offers like, reasonable instalments plans and Customer lifetime values propositions and also the unique value proposition (Cravens Piercy, 2012). Implementation strategy Using techniques of online marketing in this market to reach the identified young segments may convey the company's many advantages to facilitate availability other than traditional advertising tools: Traditional way of using the advertisements is to place ads for the company is to use the print media industry. The magazine and newspaper are a traditional way of approaching the high-end customers of watch industry. In addition, billboard in affluent area of target market and digital billboards are needed must be utilised for this advertisements campaign. In addition, the ads in the sporting events can be strategically used with good association with the sponsors. The logo can be included in every possible area for high recognition and visibility. Based on each and every one of available channel of advertisements, Public relations and other event marketing management which operates in different directions has great impact on the companys integrated marketing communication strategies (Cavusgil, S. T., Zou, 2012). This also involves selective advancements in the sector of the identified target audience. The occasion is to bring about the desired get in touch with journalists, gives scope for an operation in different stages with the media, and generates their interest and location (Leigh Gabel, 2015). People attending events and who does volunteer for these events, can be targeted for approaching them more accurately and Assemblage generates a massive emotion, while creating the form of unity, of belonging to something common. This parallel to brand creates the style of life (Doyle Stern, 2012). Positive emotions that relays upon the perceivable products and services of the customers and their loyalty are formed by enhancing the feel of the product. This can be used as an advantage for the product aims for enhancing the feeling too. Image of events can be widely used in the construction of a planned advertising campaign of the company (Cravens Piercy, 2012). Campaigns that are based on the announcements are very effective in terms of creating a effect on customers mind. The beginnings of the events always include press conferences, announcements, posters, invitations, and the final performances course, mass media publications. The focus group of the events and print media audiences are effective to reach the companys followers. Marketing objectives Based on the above criterias that are identified in the text the marketing objectives of the company can be To increase the market visibility of their newly launched products in the global market To increase the sales in volume compared to the sales numbers To increase the digitally integrated marketing communication plan. Financial objectives The financial objectives of the company are always focused to increase the profitability of each year. The new marketing plan of the company also must include production of watches increasing 10% extra. The parameters of increasing the sales must include integrated objectives of sales teams, event management and association, advertisements and public relations and financial teams objectives (Jain Haley, 2012). The company is more focused on the volume production of the watches, which decreases its variable cost of production (Doyle Stern, 2012). Therefore, keeping this in mind the following plan for 6 months of the product launch. Increase the sales in volume by 10% ,given sales are 2000 watches sold per day and an extra 10%, that is 200 more watches must be sold every day Increase the profit percentage as the population growth is rising in Australia at an increasing rate and GDP rate is increasing. The increase in the COGS (cost of goods sold) in the initial 6 months of the product launch can be challenging but achievable in the following month. Conclusion This brand is known as the fortunes most successful brands that are represented all over the world. For 100 years, they are continuing to grow and gaining more new customers in different regions. The further the development of their marketing strategy is developed for 3 to 5 years. In addition, useof newmeans of promotional tools,suchasevent-marketing and online marketing tools,whichwill helpful in catching the interesttothe brandandwouldbring anewcompetitiveness and popularity. The brand has made its name in the Fortunes successful companys list in the last years too and will thrive for the next years. References Cavusgil, S. T., Zou, S. (2012). Behavioral approaches to marketing strategy implementation.Marketing Intelligence Planning,19(6), 400-408. Cavusgil, S. T., Zou, S. (2012). Marketing strategy-performance relationship: an investigation of the empirical link in export market ventures.The Journal of Marketing, 1-21. Chimhanzi, J. (2012). The impact of marketing/HR interactions on marketing strategy implementation.European Journal of Marketing,38(1/2), 73-98. 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