International marketing in worldwide

practice
Base on Rolex Company

https://logosmarcas.net/rolex-logo/

Filip

Doliński
University of Agriculture in Cracow
Management
Table of contents
Introduction 4
About Company 4
Product strategy 4
Premium brand management 6
Rolex management methods 6
Selective distribution 6
SWOT Analysis 7
PESTLE Analysis 8
Political factors: 8
Economic factors: 8
Social factors: 8
Technological factors: 8
Legal factors: 8
Environmental factors: 8
Rolex in the world 9
Rolex in the United States 9
Rolex in England 10
Conclusion 10
Sources: 11

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Rolex Company
Rolex was founded by Hans Wilsdorf
and his half-brother Alfred Davis
in London in 1905. After the First World
War the company's headquarters were
moved to Geneva, Switzerland due
to economic problems in England.
Rolex is a public limited company but
does not make its shares available for
public trading. The current owner
of Rolex is the Hans Wilsdorf
Foundation. Rolex is also the only
watch company in the top 10 most
valuable luxury brands, ranking 8th https://www.rolex.com/pl/about-rolex-watches.html
(2021), ahead of Dior, Prada, Lamborghini
and Bentley.

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 https://www.statista.com/chart/8798/most-valuable-luxury-brands-by-brand-value/

Introduction
Rolex is the most recognisable watch brand in the world. In the early days, the brand's main
objective was to prove that Rolex watches were the most durable, dustproof and water-
resistant, and to prove this Hans Wilsdorf decided to use the British swimmer Mecedes
Gleitze in 1927 and her highly publicised attempt to swim across the English Channel with
their watch on her wrist to prove the durability of the company's product. In order
to continually improve their products Rolex participated in many expeditions around the
world. Hans Wilsdorf's company equipped the first conquerors of Mt Everest with their
watches, other Rolex expeditions included the first trips to the North Pole and all the
research that went into them.

About Company
Today Rolex no longer has to prove its reliability and convince the masses of customers
to buy one, but their aim is to celebrate all great achievements, personal as well as public
to this end Rolex is the main sponsor of many luxury sports and their biggest stars. These
sports include sailing, tennis, F1, horse riding and golf. The biggest stars of these sports, the

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world record holders are wearing the most recognisable watches in the world every time
they take their awards.
This careful selection of sports is no accident. Rolex specifically chooses sports whose
audiences "can afford Rolex". The only exceptions to the rule seem to be Formula 1 and the
legendary Le Mans race, but it should be noted that Formula 1 is known as the queen
of motor sports, and Le Mans is the most exclusive race in the world, with the world's
biggest car brands, most famous names in racing but also the most dedicated and talented
engineers competing for their skills, giving Rolex a huge audience and prestige in an age
where cars are one of the most popular products.
Over time Rolex has become so renowned that in some fields it doesn't need to seek
sponsorship and can be found on the wrists of many famous actors, singers and other sports
people. One such example is world boxing champion Lawrence Okolie, who after winning his
title said in an interview that his trainer would buy him a gold Rolex when he won the title
and he thought of nothing else during the fight. Such a vision is great for the watch giant
because, as their motto says, "A crown for every achievement", Rolex has become a
synonym for success and great achievement, which associates perfectly with the luxury
product that is their watches.

Product strategy
Rolex is a company that is keen to introduce many innovative products that are unique and
special. They are committed to making their products prestigious and niche. Rolex watches
use the latest knowledge, which is why they have chronometer certification, have automatic
date changers, and show two different time zones.
Rolex manufactures watches for men and women. There are nine variants available for men
and six for women.
The company also offers watches under a slightly cheaper brand. This is the Tudor brand.
Rolex cares about the prestige, value and quality of the brand. It is and wants
to be a prestigious and premium product. Premium is defined in the dictionary as an
adjective meaning exceptional quality or quantity. Premium products are mainly associated
with prestige, quality and price. It is important that premium goods are perceived by the
customer as exceptional goods.
For a customer to identify any product as premium, he should be convinced of the
exclusivity of the brand. Premium brands are not distinguished by their high quality, but by
the exclusivity that the product provides to the customer. The branding strategy of most
premium brands is based on matching the product range, brand image with the target
customer.
Consumer behaviour for premium and non-premium brands depends on the socio-economic
structure and on the basis of perceived value .

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- Perceived visible value: The consumption of prestigious brands is seen as a signal of status
and wealth, and their price, expensive by normal standards, increases the value of such
a signal.
- Perceived unique value: If virtually everyone owns a particular brand, it is by definition not
prestigious.
- Perceived social value: The role-playing aspects and social value of prestigious brands can
play a key role in the purchase decision.
- The perceived emotional satisfaction that a premium brand provides to a customer seeking
brand prestige. It also provides them with subjective intangible benefits such as aesthetic
appeal.
- The perceived value of quality: Prestige derives in part from the technical superiority and
exceptional care that takes place during the manufacturing process. For example, a Rolex
sea-dweller runs 1220 metres underwater and is handmade.
Most people who want to own a premium brand strive for an image that is different from
others. They are mostly people who want to be associated with the elite. The products
of these premium brands, which are beyond the reach of ordinary consumers, enable them
to do so.
Product exclusivity can be achieved through a very high price and limited production size.
Economically, premium products are those that can consistently demand and justify a higher
price than products with comparable features and similar quality. In marketing terms, these
are products that can provide emotional benefits that are difficult for comparable products
to match.
Most premium brands aim to create a high perception of value, which in turn translates into
more sales.

Premium brand management

Premium brand management is one of the most difficult challenges in premium niche
marketing . Like any business, they have to implement growth strategies. However, unlike
many mainstream businesses, premium brands must do so in a way that does not
undermine the brand image or the user's sense of uniqueness. Brand managers often have
to forgot short-term growth opportunities in order to maintain the long-term health of the
brand.
Brand Managers need to know that branding premium products is an art that dives deep
into the psychology of the consumer to satisfy their inherent needs.
Rolex products satisfy this social niche. Prices start at $5,000 and go up to several million.
Rolex watches are worn by the most elegant and elite people in society. They set the prices
in the industry. Most often, unlike many brands, they do not offer their customers incentives
such as promotions, offers or discounts. The brand targets consumers for whom exclusive

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products count more than money spent. Therefore, the market for these watches is always
open.
The variety of products is limited, which can cause financial instability. This is compensated
by high prices and a high profit margin.
Rolex applies a high and exclusive pricing strategy and, above all, a selective distribution that
works perfectly with the products and policies it pursues.

Rolex management methods

Selective distribution
Selective distribution is a type of strategy that aims to provide better control and reduce
costs. This type of distribution combines perfectly with exclusive products because it is one
of the factors that significantly influences the mentioned exclusivity of the product

https://www.mbaskool.com/2020_images/stories/dec_images/selective-distribution.jpg

SWOT Analysis
Rolex analyses the brand in terms of its strengths, weaknesses, opportunities and threats.
In the Rolex SWOT Analysis, strengths and weaknesses are internal factors while
opportunities and threats are external factors.
SWOT analysis is a proven management framework that enables a brand like Rolex
to benchmark its business and performance against its competitors. Rolex is one of the
leading brands in the lifestyle and retail sector.

Strengths in Rolex's SWOT analysis:

1. the brand image of Rolex is firmly established as a premium luxury brand
2. Rolex has lived up to its brand image by changing the rules of the game in the industry.

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3. Rolex introduced the first waterproof watch, the first automatic date watch, the first
watch designed for divers, all developed by Rolex
4. is one of the largest and most reputable luxury watch manufacturers in the world
5. superior advertising and branding of Rolex watches through association with celebrity
brand ambassadors
6. sponsorship of world sporting and other international events
7. Rolex watches are present in over 100 countries
8. the company and brand employs over 2500 people
9. limited edition Rolex watches have also been sold at auction for over $17 million,
demonstrating its niche presence
Weaknesses of Rolex's SWOT analysis:
1. counterfeit and fake imitations affect the image of the Rolex brand
2. competition of several premium watches and maintaining the essence of the brand is a lot
of investment
Possibilities of Rolex's SWOT analysis:
1. Rolex can introduce separate product lines with different brand identities under the Rolex
brand
2. emerging economies are a great opportunity to further penetrate the global market
3. innovation in Rolex watches with digital interventions could open up a new dimension
Threats in Rolex's SWOT analysis are as follows:
1. Limited Rolex dealer and long waiting periods may lead consumers to switch to competing
brands
2. false imitations could damage the brand image
3. government policies and obligations regarding expensive gifts and items may affect its
business

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PESTLE Analysis
Rolex PESTLE analysis examines the brand in terms of its business tactics. PESTLE analysis
looks at factors outside the company, such as political, economic, social, technological (PEST)
factors that affect the business, as well as legal and environmental factors. Pestle analysis
predicts various external scenarios that affect a company's business. Pestle analysis is a tool
that is very helpful for companies like Rolex as it helps them understand the market
dynamics and continuously improve their business.
Political factors:
Rolex is a high quality watch company with a global presence. The products are sold all over
the world and manufactured mainly in Switzerland, therefore the country's politics there
matter most. Government stability is extremely important to the efficient operation of the
company
Economic factors:
Every company regardless of its structure operates under certain economic conditions
present in the country. A rising GDP increases the development rate of a company and
interest rates determine how much money a company is able to invest in a country. The
condition of the financial market shapes how and at what price the company will raise its
assets , what will be the cost of exchange rates, the level of unemployment determines the
demand and price for labour.
Social factors:
Determining and studying the attitude, behaviour, wealth of your target group of customers
determines your company's marketing strategy. Advertising and social media have a strong
influence on customer buying behaviour.
Technological factors:
Technology is constantly evolving. A brand, has to keep up with new technologies to retain
old customers and attract new ones. Earlier there was an analogue phase of watches, but
now there is a digital one. These days, a watch doesn't just tell the time. It shows the exact
date, direction of the day etc.
Legal factors:
Rolex as well as any other company has to follow the laws and rules of every country where
it offers its services. Laws relating to tax, employment and labour legislation, environmental
protection, and any other regulations that may apply to the company's activities must be
strictly observed by the company. This is why Rolex must have an independent legal team
that constantly monitors changing laws. In Rolex's case, there is the additional risk of loss or
theft of the company's technology and all its intellectual assets. Such a situation could be
lethal for the brand and therefore it is also up to the company's legal team to control the
safety of the company in this area.
Environmental factors:
Rolex is an environmentally responsible business company. It cares for the environment,
introducing the latest technologies to reduce the negative impact on the environment such
as: moving to electronic business operations. Planting trees and caring for them, saving

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endangered animal species. Rolex helps by promoting its products and campaigns with
which it seeks to reach every individual.

Rolex in the world

Rolex is the world's largest manufacturer of luxury watches with around a quarter of the
total watch market. Rolex exports most of its products to its two main markets of the USA
and China, this situation is a result of the huge supply in these markets. The next biggest
markets for Rolex are the English, German and French markets. The English market is by far
the most interesting for the company due to the fact that it is in this market that Rolex
receives the greatest recognition and interest and therefore the greatest sales.
Rolex's contribution to the world does not end with selling great watches. Rolex is heavily
involved in charity work and the majority of its income goes towards this. Rolex's income
is controlled by the Hans Wilsdorf Foundation and therefore the majority of it goes to all
sorts of projects aimed at improving the conditions of our planet. As Rolex itself writes on its
website, their mission is "To make the planet perpetual". In order to carry out their mission
in the Rolex portfolio we can find collaborations with units such as: The National Geographic
where Rolex supported an expedition and research on Mt Everest, in the rainforests and
in the depths of the oceans to take care and find solutions to counteract the negative effects
of pollution, global warming, and the extinction of endangered species; El País Semanal
where Rolex collaborated with a Spanish daily newspaper to find solutions and spread
awareness of the challenges society faces to protect the planet; The Washington Post, where
Rolex partnered with the famous newspaper to help find solutions for companies and
individuals who want to resolve critical environmental issues, and many other projects that
investigate the natural environment of our planet and numerous communities and find
solutions to prevent environmental degradation and support local communities.
All these collaborations and activities are aimed at raising people's awareness of the existing
threats to our planet and all the creatures living on it, and to this end Rolex is proud to carry
out its mission and strive to prevent any threat to the planet.

Rolex in the United States

It seems that Rolex's biggest community presence is in the American market. Not only
is it present at the many tournaments, races and sports events that take place there but it
also participates in the lives of many people. Such is Rolex's commitment to the film
industry, of which Hollywood is, after all, the capital. Rolex has many ambassadors among
the most prominent figures in American cinema, its ambassadors including the brilliant
directors James Cameron and Martin Scoresese. Rolex is also a sponsor of the Oscars, has a
strong relationship with the Academy of Motion Picture Arts and Sciences, and is the
founder of the Los Angeles Academy Museum of Motion Pictures, a popular destination not
only for Rolex customers.
Rolex undoubtedly values the American market as the largest source of supply for the
company. Rolex has no direct investment to maintain offices or staff in the Americas, all
sales are made through third party distributors mainly jewellery shops as Rolex has no shops

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other than its headquarters in Geneva. In the United States the company has over 100 sales
partners. The main investments made by Rolex in the states related to the service and sale
of products are the service centres in the US there are 3 of them and it is in them that Rolex
watchmakers take care of the valuation, repair and maintenance of luxury watches.

Rolex in England
Rolex takes an active part in English society, after all it was in England that the Rolex brand
was born. It is a regular sponsor of the world's oldest and most prestigious tennis
tournament, Wimbledon, and is a partner of the Royal Opera House in London. These are
not all of Rolex's initiatives and investments in the British Kingdom. During the last few years
and the plight of the pandemic, Rolex together with its partnership with The Watches Of
Switzerland Group decided to raise 300,000 Pounds for The Prince's Trust. The money was
used to support school children and students across England to deal with the effects of the
pandemic.
Rolex's business investments in the British Kingdom, as with the United States, are not
extensive. The sale of products is carried out by external sellers, of which there are around
50. Support, service and maintenance is provided by only 2 Rolex service centres in the
United Kingdom.

Conclusion
Analysing Rolex's expenditure and investment it can be seen that their main focus is on great
marketing. The company's primary focus is on sports marketing, mainly associated with
exclusive or luxury sports, to reach a group of people who are able to purchase the very
expensive products that Rolex watches represent. However, there is no denying that Rolex
places a high value on the good it can do for the planet, and most of its income is spent on
foundations and large-scale projects aimed at ensuring the safety of the planet. Such actions
are firmly rooted in the mentality of the company and can be traced back to the actions of
the company's founder.
In my opinion, Rolex is a great example of a company that values sustainability. They do not
want fast and expansive growth, which could be beneficial for the company in a shorter
period of time because this is not their goal and product. It is the product in this case that
significantly dictates the conditions for growth because the case of luxury products such as
Rolex watches does not allow for aggressive expansion or overproduction. In such a situation
Rolex would lose its status and elitism.
I believe that the manner of development and Rolex is appropriate to the product it
represents and should not be artificially pumped up to increase the company's income.
Additionally, I must point out that I very much like the initiative to protect the planet that
Rolex represents with its actions.

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Sources:
https://en.wikipedia.org/wiki/Rolex
https://logosmarcas.net/rolex-logo/
https://www.bloomberg.com/news/articles/2017-10-02/rolex-is-the-world-s-most-valuable-watch-
brand
https://www.statista.com/chart/8798/most-valuable-luxury-brands-by-brand-value/
https://www.thewosgroupplc.com/media/4vnddinn/wos-6160-ar20-web-20-09-14.pdf
https://www.thewosgroupplc.com/media/iv4c2g0c/fy21-fact-card.pdf
https://www.thewosgroupplc.com/media/0iwl15d0/6426-wos-ar21-21-07-30-web.pdf
https://www.fhs.swiss/pdf/regions_210112_a.pdf
https://www.fhs.swiss/pdf/mt3_210112_a.pdf
https://www.fhs.swiss/file/59/Horlogerie_mondiale_2021_en.pdf
https://www.grandviewresearch.com/industry-analysis/watches-market
https://www.rolex.org/partnerships/asahi
https://www.rolex.org/arts?cmpid=rolexcom_rolexorg
https://medium.com/@givingforce/rolex-csr-business-model-analysis-9c2ac887f4fd
https://thesocialgrabber.com/market-segmentation-of-rolex/
https://robbreport.com/style/watch-collector/how-rolex-became-the-most-recognized-luxury-
watch-brand-in-the-world-2900561/
https://www.rolex.com/rolex-org.html
https://millenarywatches.com/rolex-slogan/
https://www.hautehorlogerie.org/en/watches-and-culture/corporate-social-responsibility/
https://www.mbaskool.com/marketing-mix/products/16757-rolex.html
https://iide.co/case-studies/marketing-mix-of-rolex/
https://www.marketing91.com/marketing-mix-of-rolex/
https://en.hocmarketing.org/case-study/rolexs-marketing-mix-strategy
https://startuptalky.com/rolex-marketing-strategies/
https://www.rolex.com/pl/watches/explorer/rolex-and-exploration.html
https://www.statista.com/statistics/288276/most-searched-luxury-watch-brands/
https://news.centurionjewelry.com/articles/detail/largest-u.s-rolex-boutique-opens-at-longs-
jewelers
https://www.watchesandculture.org/forum/en/united-states-the-place-to-be-for-rolex/
https://usa.watchpro.com/rolex-uk-sales-rise-13-in-2020/
https://www.europastar.com/magazine/features/1004089127-market-focus-report-on-the-italian-
watch-market.html
https://www.princes-trust.org.uk/about-the-trust/news-views/luxury-watch-brands-provide-
support-to-the-trust
https://www.goldsmiths.co.uk/blog/the-princes-trust-release-their-young-people-relief-fund/
https://www.mbaskool.com/pestle-analysis/companies/17951-rolex.html
https://www.mbaskool.com/marketing-mix/products/16757-rolex.html
https://www.mbaskool.com/2020_images/stories/dec_images/selective-distribution.jpg

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