Sbm 03 rolex_brand_audit

Rolex Brand Audit “The name of –Rolex is synonymous with quality. Rolex-

with its rigorous series of tests that intervene at every stage-has

defined the meaning of quality.”

-Rolex.com

1.1

Contents

1.2

Brand Inventory

Brand Exploration

Recommendations

BRAND INVENTORY

Section 1

1.3

Brand Inventory

History

Private Ownership

Product-related attributes

Rolex Brand Portfolio

Tudor

Communications, Pricing and Distribution

1.4

History

1905: Found in London by Hans

Wilsdorf (German) and William

Davis.

1908: Registered Rolex brand in

Switzerland

1910: created a timepiece that

was small enough to be worn on

the wrist.

1914: Obtained the first Kew

“A” certificate after passing the

world’s toughest timing test. 1.5

History 1926: Developed and patented

Oyster waterproof case and screw crown against water, dust and dirt (the first time in the industry)

October 7, 1927: Mercedes Gleitzer swam the English channel wearing an Oyster which functioned perfectly after emerging 15 hours in water.

1931: Created the Perpetual self-winding rotor mechanism eliminating the need to wind the watch

1.6

Private Ownership

Privately owned company and controlled by

only three people in its 100-year history.

Enabled the company to maintain a consistent

focus on its core business.

1.7

Product Attributes

“10 Golden Rules”

Waterproof case

Perpetual rotor

The case back

The Oyster case

The winding crown

The finest and purest materials

Quality control

Rolex self-winding movement

Testing from the independent Controle Officials Suisse des Chronometres

Rolex Testing

1.8

Rolex Brand Portfolio

1.9

Oyster Perpetual

• Air-King

• Perpetual

Date

Datejust

Datejust Turn O-graph

Day-Date

Lady Datejust

Lady Datejust Pearlmaster

Oyster Professional

• Explorer

• Gmt Master II

Submariner

Submariner Date

Sea Dweller 4000

Yatch-Master

Cosmograph Daytona

Cellini

• Cellinium

Quartz

• Cellissima

Classic

Danaos

Cestello

Orchid

2005 Prince

Tudor As Fighting Brand

Created in 1946 as a

“fighting brand” to stave

off competition from

mid-range watches such

as Tag Heuer, Citizen,

and Rado.

Tudor has a range of

family brands, namely

Price, Princess, Monarch,

and Sport.

1.10

Brand Image:

Product’s high quality

Its associations with top

artists, athletes, and

explorers.

Enhanced by its exclusivity,

with premium prices and

limited distribution

Advertisements: mainly

print ads

Sports and events

sponsorship

1.11

Communications

Pricing

Around $2,500 for the basic Oyster Perpetual

and can reach as high as $200,000.

For each style, prices can vary by $2,000 -

$12,000 depending on materials used.

1.12

Distribution

Not selling online

Only through

approximately 60,000

“Official Rolex Dealers”

worldwide.

1.13

BRAND EXPLORATION

Section 1

1.14

Contents

Customer knowledge

Sources of Brand equity

Ambassadors

Sports and culture

Philanthropy

The Customer Base Brand equity Pyramid

(CBBE)

Counterfeiting: threat to Equity

1.15

Customer Knowledge

The most powerful and recognized watchmaker in the world.

Typical consumer brand associations: Sophisticated

Prestigious

Exclusive

Powerful

Elegant

Snobby

Flashy

High quality

1.16

Rolex Mental Map

1.17

Performance Performance

Image Image

People People

Sports Sports

Negative Negative

•Watches

•Expensive

•Precise

•Gold/Platinum

•Crown Logo

•Exceptional

customer

service

•Older

•Top Athletes

•High-class

•Masculine •Counterfeited and sold on

the street

•Frivolous purchases

•Flashy and pretentious

•Wimbledon

•Golf

•Sailing

•Championship

athletes

•Successful

•Luxury

•Classic

Rolex Brand Mantra

Classic Designs, Timeless Status

Sources Of Equity

Brand Awareness:

One of the most recognized luxury brands in the world.

Its crown logo

Brand Image:

Functional benefits: quality, craftsmanship, innovation

Emotional benefits: Exclusive status symbol, self-

expressive to the user.

Others: Ambassadors, Sports & Culture, and

Philanthropy,..

1.18

ROLEX CBBE PYRAMID

Resonance

Brand Salience

Judgments Feelings

Performance Imagery

HIGH AWARENESS

•Most commonly recalled luxury watch in the world

• More depth and breath

Ultimate Social

Status •Extremely loyal customer,

high repeat purchase rate.

• Much affiliation &

attachment

• Part of elite society

Exclusive & Self-

rewarding • Feelings of success and

high social status

• Special approval and

self-respect

Classic &

Achievement Image •Elite luxury image

through sports & cultural

ambassadors

• Status symbol

•Classic heritage

Extremely Quality •The best watches in the

world

•Maximum quality,

innovation and design

Luxury Product •Handcrafted timepiece of

premium materials

• Perpetual self-winding

technology

•Official Crown logo

•Exceptional customer

service

•Holds value well

Counterfeiting: Threat To Equity

Counterfeiting Rolex watches has become a

sophisticated industry with sales exceeding $1.8

billion per year.

Counterfeiting damage the company’s brand

equity and present a huge risk to the brand.

Rolex sponsors the International Anti-

Counterfeiting Coalition and suing companies

that allow the sale of counterfeiting Rolexes.

1.20

RECOMMENDATIONS

Section 3

1.21

Five Main Areas Of

Opportunities

Introduce new designs

Connect with the female consumer

Attack the online counterfeiting industry

Understand how younger consumers relate to

luxury

Communicate long-term value

1.22

Introduce New Designs

Research shows a trend toward more jeweled

watches

Only 7 of Rolex’s sub-brands feature diamond

watches => Rolex can increase the ratio of

jeweled watches.

Consider partnering with well-known designers

with limited edition watch that freshens the

brand and creates a buzz.

1.23

Connect With Female Customer

Women make the majority of jewelry and watch purchases >< Rolex’s image campaign mainly emphasizes males.

Rolex should consider more female ambassadors of elite status, sponsor female-attended sport events increase the ratio of jeweled watches (ice-skiing, equestrian, golf, etc.)

Only 6 of Rolex’s 22 sub-brands geared specifically for women => Rolex can increase the ratio of female-only watches

1.24

Attack The Online Counterfeit

Industry

Due to spread of Internet, the problems of

counterfeiting is a bigger threat than ever before.

Rolex may consider building an exclusive online

store or an exclusive distribution site.

1.25

Understand How Younger

Consumers Relate To Luxury

How will prestige be defined in the 21st century?

Will the same formula “work” for the millennial generation as they age and move into the Rolex target market?

The current tastes of many younger consumers who are already in the market for Rolex watches?

1.26

Communicate Long-term Value

Rolex is an excellent

representation of the ultimate

social status.

Rolex watches more durable,

resale value and timeless than

other luxury items such as

handbags, clothes, shoes.

Communicate “heirloom”

quality

1.27

To summarize

Points of Parity

Swiss watch maker

Durable

Fine materials

Quality craftsmanship

Accurate

Attractive

Points of Difference

History and heritage

Crown

Exclusive Imagery

Premium price

Innovation

Distribution

1.28

THE END

1.29