Rolex Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Rolex analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Rolex marketing mix, help the brand succeed in the market. Let us start the Rolex Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
Rolex Product Strategy:
The product strategy and mix in Rolex marketing strategy can be explained as follows:
Rolex has been first in the industry in introducing many breakthroughs. Rolex were the first company to introduce waterproof wristwatches, first to introduce wristwatches where the date and time on the dial changed automatically, first to introduce wristwatches that showed two time zones together and the first company that earned chronometer certification. Their products are known for its accuracy and the watch movement is very accurate.
Thus the watches are the products in the marketing mix of Rolex. The company also offers watches under the brand name Tudor, which is slightly less expensive than Rolex watches.
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Rolex Price/Pricing Strategy:
Below is the pricing strategy in Rolex marketing strategy:
Rolex caters to a niche segment and it sets premium price for its products. The prices of watches range from $5,000 and go beyond millions.
Basically, the prices of the products are based on the model and the cost of the materials used. The marketing mix pricing strategy of Rolex is based on quality, type and competition. Additionally, labor cost is also high as highly skilled workers are required to make these masterpieces. Rolex wrist watches are perceived as an exclusive product made for wealthy class of people. Rolex is a price setter in the market and hence does not set its prices for the products based on its competitors, rather it sets the price for its own products. Also it never offers any kind of discount or sales offer to the customers. Hence it can be said that Rolex follows high end exclusive pricing strategy.
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Rolex Place & Distribution Strategy:
Following is the distribution strategy in the Rolex marketing mix:
Rolex maintains high level of accuracy in terms of its mechanism through its in-house manufacturing plants. Most of its watches are manufactured in Switzerland and then distribution takes place through certified dealers. Rolex believes in making personal bonding with the clients. It allows its retailers to sell at most two watches in year as it believes in maintaining its premium value. Rolex does not sell its products in smaller stores, rather it targets upscale areas. The products are available in selected and premium showrooms in order to conserve its brand value. It also does not promote sales through internet.
Though it promotes its products through its website, Rolex prefers sale only though exclusive stores. The grown of ecommerce has also seen Rolex watches been sold via online channels.
Rolex Promotion & Advertising Strategy:
The promotional and advertising strategy in the Rolex marketing strategy is as follows:
Rolex company is known for aggressively promoting its watches. The promotional strategy in its marketing mix strategy is comprehensive and uses all media. Logo of Rolex, it quite simple and contains a crown. It shows that the crown is precious and only lucky ones get to wear this crown. It depicts its product as symbol of prosperity, success and luxurious brand. It also adds to the social status of the user. Rolex promotes itself by sponsoring with high profile events such as car races, Australian open, Wimbledon and many golf tournaments. Rolex tries to advertise itself through its special connection with tennis wherein Rolex is an official time keeper. It has always marketed its product as personalized watch for each and every high end customer. It does not choose channels of large marketing such as advertisements on national channels along with bytes on radios. The brand has been associated with global celebrities for endorsements like tennis superstar Roger Federer. Hence, this concludes the marketing mix of Rolex.
About Rolex:
Found in 1095, Rolex is a world brand dealing in designing, manufacturing and sale of luxurious watches. It is ranked among the top by Forbes amongst the world’s most powerful global brands. The company has more than 4000 employees globally. It mainly serves the niche segment of the consumers. Rolex company has capability of producing about 2000 luxurious watches per day.
This Switzerland based company is well known for its technical perfection involved in the construction of the watches, metals it uses and the use of precious stones which makes its products one of the most expensive ones in the world. Some of Rolex's competitors are Cartier, Breguet, Tag Heuer etc.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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