MARKETING MANAGEMENT_ROLEX SA

Programme Title: Advanced Diploma in Management Studies.

Module Code / Title: Marketing Batch No: ABAD12112A
Management

Name of student: Nguyen Thi Thanh Phuong Student ID: SIDI2110052429

Title of Assignment: Individual Assignment

Name of lecturer: Mr. Francis Hau

Total number of pages : 11 Pages Words count: 2300 words

( Main content from the Intrduction to Conclusion )

th th
Submission Date: Wednesday, 08 Dec 2021 Due Date: Friday, 10 December 2021

Signature of student: Nguyen Thi Thanh Phuong

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 MARKETING MANAGEMENT_ROLEX SA

Table of Contents
1. Introduction .................................................................................................................................4
2. Consumer behavior and STP analysis. ........................................................................................5
2.1 Smartwatch Consumer behaviors .............................................................................................5
2.1.1 The segmentation of the market ............................................................................................6
! Demographic segmentation ...............................................................................................6
! Geographic segmentation ..................................................................................................6
! Behavioral Segmentation ..................................................................................................6
! Psychographic segmentation .............................................................................................6
2.1.2 The targeting strategy .............................................................................................................7
2.1.3 The positioning statement and strategy .................................................................................7
3.0 The marketing plan ....................................................................................................................8
3.1 The product........................................................................................................................8
3.2 The price ............................................................................................................................9
3.3 The place (channels and retailing) .....................................................................................9
3.4 The promotion - Integrated Marketing Communications (IMC) ......................................9
4. Conclusion .................................................................................................................................10
Reference list .................................................................................................................................11

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 MARKETING MANAGEMENT_ROLEX SA

EXECUTIVE SUMMARY

This plan is presented for Rolex SA, a brand-new smartwatch model that is slowly being set in
motion by Rolex.

By the report, you will understand what is Smartwatch customer behavior and STP analysis such
as segmentation, targeting, and positioning as well as the marketing plan for this new version of
the Rolex watch.

According to ROLEX SA (2019), The Davis and Wilsdorf business, founded by Alfred Davis as
well as his cousin Hans Wilsoft in 1905 in London, was previously referred to as Rolex SA.

In 2020, this iconic watchmaker had sales of around $8.5 billion, this figure means they hold
about 24.9% of the global market for Swiss watches, compared to 22% in 2019.

Though the majority of the luxury, stylish wristwatches are probably available in Switzerland,
Rolex uses a system of over 4,000 highly educated and professional watchmakers across hundred
nations on the planet (Cormack & Cormack 2021).

R-Touch will be an excellent combination of modern technology and elegant design of Rolex,
extremely rigorous content of its in the method of creating a great piece. Each website link on
the motion, every wheel, each gear, each detail on the situation, strap, or maybe switch features
carefully selected, high-value components that ensure performance and ideal aesthetics. Besides,
Rolex R-Touch also utilizes its operating system with many preeminent characteristics for a
smartwatch.

Rolex R-Touch 's pricing system is competitive, tiered, and variable. Hardly any money is spent
on promotion, as so much of CrossFit Elevation's company is from recommendations, terms of
jaws, and their positive reputation. Social media and online advertising will play a crucial role in
the improvement of CrossFit Elevation's corporation.

The objective of Rolex R Touch creates a luxurious and luxurious picture in the minds of buyers
when connected with sports stars, politicians, and important celebrities

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 MARKETING MANAGEMENT_ROLEX SA

1. Introduction

Technological advancements in recent years have changed the functionality of electronic

products. Wearable devices have grown to be a component of online things (M Bani Amer 2021).

Wearable gadgets help users achieve a state of self-connected by utilizing sensors also as
software programs that simplify interaction, information exchange, together with instantaneous
info access. In short, wearable devices are smart electronic computers that are manufactured in
several styles of accessories.

In comparison to smartphones and laptops, wearables give the buyer more handiness thanks to
their lightweight, accessibility, and also the control that it provides. A smartwatch may be a
wearable device with features sort of a smartphone additionally to its basic functionality sort of a
watch. Consumers don't only view such devices as technology but also as fashion products.

After the birth of the primary smartwatch, many "big players" within the technology industry
also quickly jumped in, like Apple, Fossil, Xiaomi, Samsung ... Main players have adopted
strategies including product portfolio expansion.

In 2020, the U.S Smartwatch market accounted

for the leading share in the global market and is
predicted to continue its dominance throughout
the forecast period and Apple is one of two big
giants in the market. (Market Data Forcast,
April 2021). According to CCS Insight 2021,
Apple shipped 30 million products of its
smartwatches in 2019, which happens to be
anticipated to be 51% much more than the entire
Swiss wristwatch industry. The shipment of the
Apple smartwatch continues to be improved by
37% after 2018. (CCS Insight 2021) Firgure 1 : Source CryptoKnowledge, (Oct 2016).

In 2021 market size has been estimated at USD 57.3 Billion. It is further projected to reach USD
132.9 Billion by 2026, registeriìng a compound annual growth rate (CAGR) of approximately
18.32% during the forecast period. (Market Data Forcast, April 2021).

In the face of the stormy attack of smartwatches, the market share of traditional watches,
especially in Switzerland, has shown signs of decreasing more or less. Therefore, some famous
traditional watch brands like Omega, Casio, Tissot … also gradually transformed, producing
many new smartwatch products.

Realizing the event trend furthermore as knowing what the purchasers needs, wants, and
demands, Rolex wants to draw in new customers by promising superior value for this potential
market simultaneously keep and growing current tradition. A brand-new smartwatch model is
slowly being set in motion by Rolex.

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2. Consumer behavior and STP analysis.

2.1 Smartwatch Consumer behaviors

Every day, consumers make decisions to buy products. Therefore, Rolex - company needs to
study such smartwatch consumer behaviors and take a look at to search out what, where and the
way consumers buy likewise as what quantity, when, and why they buy…

Among the four factors by Kotler et al. (Kotler. P, Armstrong. G, 2017 Chapter 5), there are 2
factors on which the brand should focus are Social & Personal. The three social factors below
describe the Social Factors which affect consumers and purchase behavior such as :
1. Reference groups and social networks
Social influence is a significantly important factor, considering the technology has fashion factor
involved additionally, this is the case with most wearable devices such as smartwatches.
2. Family
The family is the organization that first creates the perceptions about products, brands, and
consumer habits, this means that a consumer could have established its perceptions of brands
during childhood which affects the choice of brands in adult life.
3. Role and status
Role and status are other social influences. An individual is part of different groups such as
family, clubs, organizations, and different kinds of communities. Such status can be money,
wealth, education, or occupation. Success in a person’s life can provide a status to that person.
The selection of a product or brand can depend on the role or the status of a person.

The following discusses is the characteristics affecting consumers but from the personal
perspective of an individual, it calls Personal Factors. Here listed are the five characteristics:
1 2 3 4 5
Age and life- Occupation Economic Lifestyle Personality &
cycle stage situation self concept

The age of a consumer is significant because young users welcome innovation in general, tend to
be more task-oriented in comparison to older ones. Furthermore, they are more likely to adopt
new technology which helps to complete tasks. In terms of gender, men are more accepting of
new technology than women.

However, other studies by Wu et al. (Wu et al 2016, 389) argue that the effect of gender and use
of technology is unimportant and that such differences are due to social roles and expectations.
In addition, the higher income makes more enjoyable devices affordable. The gender differences
had in this study no effect. the results showed that only one of the three factors such as health,
well-being, and fitness in their study was relevant for the intention to use a wearable. Because
most people see wearables more like a toy or fashion rather than serious health or fitness device.
However, some of the small circle of women appreciate the health and fitness support of such a
device.

When talking about the personal influence of lifestyle, associated with the life of Rolex's clients,
the goal consists of individuals who would like to "stay from the crown" and also wish to show
their status.
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2.1.1 The segmentation of the market

Rolex’s marketing department has acknowledged that we can't appeal to all the buyers in the
smartwatch marketplace. Therefore, they have designed detailed strategies to target the correct
segmentation and customers.

Rolex understands their levels of ability and resources to handle the market. Hence, rather than
tackling the complete market or perhaps against superior competitors, the company identifies the
4 segmentations of the market that they might serve best and most profitable as below:

! Demographic segmentation
• Being a high-value product, Rolex is the choice of those consumers belonging to the higher

social class, characterized by very high income and very high status. Rolex’s target audiences
are mainly executives, professionals, business people, and the young generation with high
income who are in middle age between 30 to 60, irrespective of every gender.

! Geographic segmentation
• The marketplace is examined across the World Region, focusing on many places including

Europe, Asia-Pacific, and North America in the very long term, its connectivity through
various other gadgets leads to the enhancement of the ecosystem. Based on the states/regions
plus industry density with wealth. Developed countries are tapped then and first building and
semi-urban markets as fast emerging plus profitable industry segments. According to United
Nations (2018), 68% of the world's public is likely to shift to urbanized aspects by 2050. The
complete spending online of Things in the Asia Pacific is apt to increase at a very high speed.
This is likely to create a lucrative smartwatch industry chance globally.

! Behavioral Segmentation
• Rolex relies on customer loyalty because their customers are rich and accept only the highest

quality and prestigious watch and that is the reason they persist with Rolex. Besides, our
brand achievements like being the primary wristwatch within the world to receive the Swiss
Certificate of Chronometric Precision which brings additional prestige to Rolex, or being the
primary waterproof wristwatch also supports its concept (Rolex n.d.).

! Psychographic segmentation
• The attitude of the consumers comes from the lifestyle. It's a psychological factor, which

influences the buying decision of the consumers. Related to the lifetime of Rolex's clients,
the goal consists of people who would like to indicate the status “A Crown for each
Achievement”. Its “crown” logo signifies King or Royalty if they own a Rolex.

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2.1.2 The targeting strategy

Targeting is that the decision about which market segment(s) a company decides to prioritize for
its sales and marketing efforts. For this new product “ Smartwatch “ Rolex tends to use a
Concentrated (Figure 2) such as Niche market concentrated strategy.

Our brand uses niche marketing to the

high-society status of the population.
Generally, there are fewer competitors. It
becomes very specialized, able to achieve a
powerful market position.
Figure 2: Concentrated strategy

Our marketing efforts are focused on a small group of highly-targeted consumers. Using the
profiles of our customers and creating a specific product range of smartwatches based on their
preferences watch dial and look.

2.1.3 The positioning statement and strategy

Rolex is known as one of the most luxury watch brands in

the world that have been applying a basic concept in its
marketing strategies such as Esteem Needs of Maslow’s
Hierarchy and it is the fourth level in Maslow’s hierarch
which indicated that the requirement for respect or
reputation is most vital and precedes real self-esteem or
dignity.

Figure 3 : Maslow"s Hierarchy of Rolex

Product’s position ( or product differentiation) is the way the product is defined by consumers on
important attributes. Rolex positions itself as a luxury brand that comes with vital elements such
as styles, design … Our brand values such as quality, heritage, emotion, craftsmanship, or price
occupy consumers’ minds relative to competing products. It has successfully positioned on the
brand benefits through its water case resistant watches which could withstand at a depth of up to
100m. The precision of the Rolex watches is one particular subject that puts them ahead of
another watchmaker. The brand positioned itself by creating value for its customers. to make
value for its customers, among many brand-developing strategies.

Therefore, having a Rolex is a prized asset for the consumers. Because of this, our company has
attempted to keep top quality for our watches. Consumers are motivated to purchase Rolex
watches, not only for high value in terms of elegance, class, and emotions but also about the
people and services. The Vision and mission of Rolex Company were to always put the customer
first place and ensure that their customer is satisfied with their product and services. It calls
services differentiation.

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Rolex and their competitors

• We feel Rolex is supreme to their
competitor.
• Rolex have been in existence longer
than their competitors
• Rolex has a stronger emotional value
than their competitors Omega, Figure 4 : Positioning (Perceptual) Mapping
Cartier…

3.0 The marketing plan

3.1 The product

Based on the 2021, yearly report, the first Smartwatch contemporary wristwatch was produced
by Rolex SA is called the R-Touch. Brand identification the levels of the product like :

Core Product Actual Product Augmented Product

- Rolex SA has developed its - It is not just a watch, R-Touch - Support aspects of a product,
operating system for the Rolex is a smartwatch which had to including after-sales service
R Touch, called RoSA Touch created and developed by and servicing your Rolex.
which demonstrates it to be Rolex. Rolex has a worldwide
among the group's pre-planned - Impressive design with the network of service centers
smartwatch models. bottom part of the dial is dedicated to maintaining the
- R o l e x R - To u c h w i l l b e focused on a substantially watches it produces.
incorporated with modern higher resolution display. The - There is no limit on the
features that customers need pushers on the watch may be lifepans or how long a Rolex
including activity tracking, triggered with an R switch on watch can keep working and
notifications, messaging, the dial. On the switch, there carry on being handed down
calling, and sports mode for are 5 possible zones that from one generation to the
instance. customers can customize such next in order to live several
a s N a v i g a t e , We a t h e r , lives. (ROLEX SA 2019)
Connectivity, Activity, Time…

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3.2 The price

By Branding and catering to a niche of

society, Rolex focuses on pricing and offering
premium pricing to indicate its distinctiveness
in the marketplace. Rolex R-touch is going to
be made by the best-skilled craftsmen of the
company and use the topmost materials
combine with the RoSA system and build
exclusivity by limiting the quantity of
products in the marketplace. Its pricing
ranges in step with the variant, ranging from
$5,000 to over millions. the value over time
varies for each product. this can be caused
because of a rise in materials costs.
Additionally, unlike many brands, the brand
Figure 5.
doesn't offer its customers incentives like
promos, offers, or discounts.

3.3 The place (channels and retailing)

The majority of its timepieces are made in Switzerland, and that they are distributed through
authorized dealers. Only official Rolex retailers are allowed to sell and maintain a Rolex watch
(ROLEX SA 2019). Most of the world’s continents have shops and retailers for the brand. To
preserve the brand’s value, the products are only accessible in specialty stores select and high-
end showrooms

The Internet doesn't have any list channels for Rolex. The manufacturer's site only offers images
and information about the product lines as well as the official distributors with whom Rolex is
affiliated.

3.4 The promotion - Integrated Marketing Communications (IMC)

With regards to communication and promotion, We can use the communication tools, which
include publications and newspapers for the high-end product/service sector, to assert the
product position such as The Financial Times and Vogue are several of the most popular names.

The advertisements which are sponsored by the product are often associated with the wealthy so
our advertising tactic entails celebrity endorsements.

Additionally, our brand also actively sponsors sports as well as physical activities like golf,
sailing, horseback riding, and tennis. For example, the famous Wimbledon tennis tournament
comes with an organizing partner from 1978 until today, Rolex. Every match in the competition
features a timekeeping application which is a Rolex watch.

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The majority of this event of Rolex R-Touch

should feature sports stars like Roger
Federer or perhaps actress like Ana Ivanovic
should be perfect for feature sportswomen.

Part of the budget as well as resources for

online and digital media channels is
deducted is needed for this new version. We
can start utilizing the image of Rolex R-
Touch to ads on our Facebook which has
7.8M of followers, Twitter with 8.5M since
Feb 2012. Adam Scott Rolex print ad in UK Financial Times May 26, 2015

And movies featuring its branded written content and also use interactive options to chat, speak
with people about issues regarding experiencing and using brand new products.

We won't launch any discount programs to clients, since the company probably understands that
buyers will take to spend a huge sum to have their products. Even in times of financial downturn,
customers will still find for looking to purchase Rolex watches.

4. Conclusion

Probably the most important Rolex R-Touch watch will be the icon on the planet with the
function as the companion of celebrities plus world leaders. The design and style of the company
associated with prestige always remain the same for Rolex. With a unique advertising strategy
that shows the character of the Rolex brand name - high class, prestigious, and also shows the
degree of users.
Content cleverly coupled with pictures that are continuously contained in incidents, mixed with
the limitation of product sales locations along with purchasing classes, provides clients a
"craving", "longing" mentality and turns into the very first product they imagine when they
might pay for a fashion accessory.

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Reference list

• Agrawal, SK 2020, ‘Introducing Wearable Technologies: An open-access journal focused on

the design, control, and mechanics of wearable devices’, Wearable Technologies, vol. 1.

• Cahill, DJ 2006, Lifestyle market segmentation, Haworth Press, New York.

• CCS Insight 2021, CCS Insight Connect - View, Available at my.ccsinsight.com, viewed 13
November 2021,.

• Cormack, R & Cormack, R 2021, Rolex Accounts for a Bonkers 25% of All Swiss Watch
Sales, Robb Report.

• CryptoKnowledge, Oct 2016, Global Wearables Shipment Forecast By Device (2013 – 2021)
[Online image] Available at: https://executivetechnology.wordpress.com/2016/10/25/global-
wearables-shipment-forecast-by-device-2013-2021/[Accessed: 02nd Dec 2021]

• Market Data Forcast, April 2021, Global Smartwatch Market Size, India. Available at https://
www.marketdataforecast.com/market-reports/smartwatch-market/[ Accessed: 01st Dec 2021]

• Koytcheva, M & Gebbie, L 2021, Good Times for the Smart Wearables Market, CCS Insight.
Available at my.ccsinsight.com, viewed 13 November 2021.

• Kotler. P & Armstrong. G. Jul 2017. Lecture 4 - Consumer Behaviour[PowerPoint

slide7-11]Lecture handouts’ MDIS.

• M Bani Amer, M 2021, ‘Smartphone and Smartwatch for Human Activity Recognition,
Annals of Advanced Biomedical Sciences, vol. 4, no. 1. Available at https://
medwinpublishers.com/AABSc/smartphone-and-smartwatch-for-human-activity-
recognition.pdf[Accessed: 10th Nov 2021]

• ROLEX SA 2019, Discover more on Rolex.com, Rolex. Available at https://www.rolex.com/

about-rolex-watches.html[Accessed: 20th Nov 2021]

• Tavakoli Golpaygani, A 2021, ‘Future of Wearable Health Devices: Smartwatches VS Smart

Headphones’, Journal of Biomedical Physics and Engineering, vol. 11, no. 5. Available at
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8546159/[Accessed: 19th Nov 2021].

• United Nations 2018, 68% of the world population is projected to live in urban areas by
2050, says UN, UN DESA | United Nations Department of Economic and Social Affairs.

• Wu Liang-Hong, Wu Liang-Chuan, Chang Shou-Chi, 2016. Exploring consumers' intention

to accept smartwatches. Computer in Human Behavior Vol. 64. Elsevier, 383- 392. Available
at https://erepo.uef.fi/bitstream/handle/123456789/20533/urn_nbn_fi_uef-20181434.pdf?
sequence=-1&isAllowed=y[[Accessed: 19th Nov 2021].

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