In the following essay we are going to develop Rolex Marketing Plan.
Product: ROLEX for young generation (male and female), (age 25-35 aged), new design, lower price, sportive and young successful business people.
Suggested market: Canada, The EU, The USA with prospects of serving global clients in an online mode.
Target market: Young successful business people.
Reason for picking this market:
Canada, Europe and the USA are the world’s largest markets which provide the greatest opportunity for any product or service. These are the countries with richest people in the world who spend huge sums on watches let alone casual jewelry. Rolex always features precious metals (gold, platinum) so it is both a watch and a piece of jewelry.
Means of market entry: exports, with a potential for a joint venture if Rolex decides to produce these watches elsewhere. Still, since these products are easy to ship, it should rely on exports only. This mean provides the least risky business opportunity that requires minimum costs and is the advisable mean of entry in any region.
The Marketing goals of Rolex are the following:
- Increase the population awareness of the existing product lines (for young and successful) as represented by various types of expensive watches.
- Increase the number of clients of Rolex.
- Create the market for expensive watches-jewelry and get the most market share possible.
Get as much revenue as possible, the thing that any business would want.
Product adaptation or modification.
Here we need to understand that the young and rich businessmen differ in their buying habits, preferences, health concerns, etc., from ‘average customers’ thus making Rolex to take into account several market-specific adaptations for watches-jewelry sold in different countries that Rolex will choose.
1 core component is the most important thing in the product that deals with quality or style. In the USA and Europe the customers are particularly conscious about the quality of the watches and jewelry and its constituent parts. The company “should strive to assure adherence to local norms and expectations” (Robert, 240). Rolex uses different precious materials, jewels, pearls, or Swarovski crystals in its collections. Rolex’ products come in different shapes and customers oftentimes have an ability to freely pick color and other attributes.
2 packaging component is less important that the core component of the product. Good packaging would certainly make the product more attractive for the customers. One should remember that most countries do not care much about the packaging as long as there is quality jewelry in there. The packaging of our jewelry, therefore, should not be the primary thing Rolex should invest in. Rather it should be protective and feature the corporate logo of Rolex to further promote the corporate name.
Another thing worth noting about the packaging is the issue of piracy. Currently, brand piracy is popular in most countries. Therefore, it might be advisable to use some packaging distinctive protection like a hologram, special scratch code, or perhaps some material that would make it hard for counterfeiters to recreate Rolex watches. We need to understand that should the pirated and fake products that claim to be our jewelry get on the market, the bad reputation about Rolex will spread like wildfire, thus leaving our company without any clients.
Promotion Mix of Rolex Marketing Plan. is certainly one of the most important things that our company should undertake to successfully market Rolex. Advertising, as we know, is any paid form of promotion of goods/services in the region and we need not underestimate its usefulness when marketing jewelry.
- objectives of advertisement of jewelry. Our objectives should be the following, as based on the attempt to develop the customer loyalty to the product:
- Brand awareness. We should make the market aware of things like Rolex watches as an alternative to more expensive and un-trendy jewelry.
- Brand recognition. By that the clients should understand that Rolex sells superb jewelry which is also a watch (Nelson, 82).
- Brand preference/insistence is strong desire of men and women to own only Rolex’ on a daily basis. This “desire is what marketers should strive for” (Luther, 219). We need to strive to develop brand preference and loyalty early, before our competitors understand the depth of the given market and start marketing their products.
In order to uncover the marketing strategies of Rolex, we have to analyze the 4Ps+1 of Rolex Marketing Plan as shown below:
- Rolex provides different types of watches required by the market. The watches are noted to be of high quality and of high demand on the market. Rolex might want to create different type of watches for different types of young businessmen. Currently it sponsors major golf and yachting championships implying that the rich yachtsmen and golfers have Rolex. It can also endorse other sports like croquet or polo.
- Rolex should price its watches above the major products available on the market because Rolex is a premium brand. The price should be somewhat higher.
- Rolex offers various payment methods: cash, checks, credit cards.
- Rolex does not provide interest free financing. This is where Rolex might want to make a change in order to attract more customers who want to pose off as rich and successful yet do not always have enough resources.
Rolex needs to weight all the costs and benefit associated with the interest free financing and come up with the optimal solution. Most likely Rolex will need to provide the payment method most convenient for the customers.
- The place is a show room, or the actual Rolex shop. Oftentimes it takes the Rolex’s representatives to visit the customer’s apartment/house to find the best jewelry option.
- Rolex should use heavy promotion in order to create the industry and to attract potential customers to buy Rolex. The following promotion activities were used.
- Thank-you cards for clients to create brand loyalty. “Thank-you cards create positive emotions in customers that result in sales” (McDonald, 147).
- Rolex online advertising.
- Mass media (see media mix).
- Rolex provides a 24/7 customer support team that would be willing to answer the questions in an online mode and recommend the new users what watches to buy.
Media mix of of Rolex Marketing Plan.
- TV commercials. Rolex needs to present the aura of exclusivity, affordability and value in its TV commercials featuring nouveau-riche Rolex watches to work or parties.
- Radio commercials should also be used to remind people of our jewelry and of the qualities and effects it has.
- Billboards with huge photographs of Rolex watches would be extremely noticeable.
- Newspapers/magazines/print is probably one of the most important media channels for Rolex products, simply because people in North America are obsessed with the printed paper. Unlike short TV/radio commercials, newspapers and magazines would deliver the message for a much longer time to the potential clients simply because, they are not thrown away as easily.
- message. The message should not be complicated or corny. It should basically say “Rolex watches, if you can afford it….you are worth it”.
- costs. The advertisement costs are high in Canada and the USA on major television channels. Rolex should start with advertising on local channels which serve the customers in the area where Rolex sells its jewelry.
- sales promotion is also extremely important for the region where we plan to market our jewelry just because people do not trust commercials as much as the word-of-mouth.
- Robert, Michel. Product Innovation Strategy, Pure and Simple: How Winning Companies Outpace Their Competitors. Prentice Hall, 2005.
- McDonald, Malcolm. Marketing Plans, Sixth Edition: How to prepare them, how to use them. Wiley and sons press, 2005.
- Luther , William M. The Marketing Plan: How to Prepare and Implement It. Barrons Books, 2005.
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