Rolex is one of the most prestigious luxury watch and timepieces brands. It is not often that we witness advertisements on the brand, but yet it doesn’t lose its position in the market.
Thus this makes us keen to know even with not much marketing how it is progressing and not losing its market.
In this blog, we shall be discussing the marketing mix of Rolex in detail. Covering all the 4Ps strategies i.e price, product, place, and promotion.
Before we start with its marketing mix let us know about Rolex as a company.
Rolex is a private brand that deals with the manufacturing, designing, and distribution of wristwatches. It is considered one of the most premium wristwatches that one can imagine. It was founded in England, 1905, by Alfred Davies and Hans Wilsdorf.
Their luxury watches have been worn by several most influential world-class leaders, celebrities, and influencers. Rolex is credited for making the first airtight, dustproof, and waterproof watches. The company was formerly known as Montres Rolex S.A and even though founded in England, its headquarter is based in Geneva, Switzerland.
Let us now start with the marketing mix of Rolex.
Marketing Mix of Rolex
A marketing mix is a collection of marketing techniques that a company utilizes to achieve its marketing objectives in a target market.
On one hand, we have the concept of Marketing Strategy that helps brands achieve their business goals & objectives, whereas marketing mix (4Ps) is a widely used structure to define the strategies a brand uses to market.
Let us start by first looking at the Product mix of Rolex.
1. Product Strategy
Rolex is the first in the industry to introduce many innovative products that are unique and new. Some of their prominent firsts are achieving a chronometer certificate, introducing wristwatches that featured automatic date changers, showed two different time zones, and most importantly was the first waterproof watch to be made.
Their versatile watch products are known for their smooth and accurate watch movements. Rolex manufactures watches for men and women. There are nine variants for men and six variants for women.
Some of their watch models are as follows:-
- OYSTER PRECISION
Let us now see the Price mix of Rolex.
2. Price Strategy
Rolex costs are premium for its products and cater to a niche of society. Its pricing ranges according to the variant, starting from $5,000 to over millions. They use the topmost materials and highly skilled craftsmen see to it that each watch is clocked with perfection before being sold.
Rolex watches have an image of being worn by the classiest and elite individuals of society. They are the price setter of the industry, therefore, they do not work their price around their competitors. Their price over time varies for each product. This is caused due to an increase in raw material costs.
Additionally, unlike many brands, they do not offer their customers incentives such as promos, offers, or discounts. The brand targets consumers to whom exclusive items matter more than the money spent. Hence, the market for these watches is always open.
Their variety of products are limited which can pose financial instability. Thus, the high prices and high-profit margin make up for it.
We can conclude this point by saying that Rolex follows a high and exclusive strategy for pricing.
Let us now see the Place mix of Rolex.
3. Place and Distribution Strategy
Through its in-house manufacturing operations, Rolex maintains a high level of precision in terms of its mechanism. The majority of its timepieces are made in Switzerland, and they are distributed through authorized dealers.
The globalization of products has resulted in a slew of free-trade agreements between countries. Because the majority of the company’s manufacturers are situated in Switzerland, tax exemptions on exports and imports will result in reduced actual prices.
Rolex believes in creating a personal connection with its customers. It only permits its shops to sell two timepieces per year to maintain its premium status. Rolex does not sell its watches in modest shops; instead, they sell them in upmarket regions.
To preserve the brand’s value, the products are only accessible in select and high-end showrooms. It also doesn’t encourage people to buy their items on the internet. Rolex is a global brand with 28 affiliates in approximately 100 countries and 4000 watchmakers. Almost all of the world’s continents have shops and retailers for the brand.
Lastly, let us see the Promotion mix of Rolex.
4. Promotion Strategy
Rolex is known for pushing its watches aggressively. Its marketing mix plan includes a complete promotional strategy that utilizes all media. Rolex has always been associated with luxury, and possessing one is considered a status symbol. Its product line caters to a very specific demographic: the ultra-wealthy.
Rolex’s logo is quite simple and features a crown. It demonstrates that the crown is valuable and that only the most fortunate are permitted to wear it. It portrays its product as a sign of wealth, success, and opulence. It also improves the user’s social standing.
Rolex is looking for ways to tie its timepieces to a high-profile sport or event. Rolex advertises by sponsoring high-profile events such as car races, the Wimbledon, Australian Open, and numerous golf tournaments. Rolex attempts to market itself through its special relationship with tennis, in which Rolex is an official timekeeper. It has always promoted its product as a one-of-a-kind timepiece for each high-end client.
It does not use large-scale marketing methods such as national television commercials or radio bites. For endorsements, the company has been linked to international superstars such as tennis legend Roger Federer. The brand’s mission is to persuade the buyer that there is only one watch that is right for him, and that watch is Rolex.
With that, we come to the end of Rolex’s marketing mix. We gained insight into how one of the most successful fashion brands strives in the market. Even though they cater to a small percentage of the population, they make a huge profit margin.
The decades of research, they conduct have placed the company in a high position. They were the first in the market to introduce some of the unique features in the market like waterproof, dustproof, etc.
They have been using a premium pricing policy starting from $5,000 to over a million. They do not give offers to their customers, unlike other brands. They target the customers to whom exclusive items value the most.
They have authorized dealers to sell their products in upmarket regions only.
They do not promote their brand on a large scale advertisement kile Television, radio, etc. Rolex sponsors high-profile events like a car race, the Wimbledon, Australian Open, etc. For endorsements, the company has been linked to international superstars such as tennis legend Roger Federer.
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