Market Segmentation of Rolex

Rolex is a private brand that specializes in wristwatch manufacturing, design, and distribution. The most luxurious wristwatches you’ll ever see. In 1905, Alfred Davies and Hans Wilsdorf created this watch manufacturing company in England. The company’s current headquarters are in Geneva, Switzerland. Rolex is one of the top hundred most potent brands globally, and the largest, with a daily production of 2,000 watches. In today’s blog, we will look at Rolex’s market segmentation.

Let’s start by analyzing the positioning strategy of Rolex

To begin, let’s have a close look at one of the company’s recent posts on their social media.

Let’s be honest, who doesn’t want to have Rolex? Of course, we all do! Besides the fancy vibe, we all want to experience (walking around and showing off our Rolex watch).

Outstanding product quality during the company’s many years of existence is the bases of Rolex’s success. Rolex watches are accurate timekeepers that are durable, strong, and dependable. Maintaining consistent excellent quality with a yearly manufacturing volume of almost three-quarters of a million pieces is an art form in and of itself.

It’s also in Rolex’s best interests to avoid odd complications. It lacks tourbillons, perpetual calendars, minute repeaters, substantial data displays, power reserve indicators, and alarm functions.

The design of a watch determines how comfortable it is to wear daily. Rolex’s round design helps to the watch’s water resistance and readability. A central sweep seconds hand and a Cyclops date magnifier are also included (another Hans Wilsdorf invention). The company makes sure to keep its collections up to date.

“Only meticulous adjustments to the signature design of particular model collections over the decades have resulted in a high degree of identification,” says Rolex specialist Percy Christian Schoeler, proprietor of the German-language internet portals Luxify and R-L-X-Forum. There are no abrupt design shifts or leaps. Moreover, Rolex changes the case sizes only in small increments.

Thus, we can assume that Rolex’s brand archetype is the Ruler.

What should we know about this archetype?

Desire: Dominance.

Goal: Create a prosperous and thriving family, business, or community.

Strategy: Bring in some leadership.

What should we be aware of regarding the Ruler brand archetype?

Level One: A lack of resources, an absence of order, or a lack of harmony.

Level Two: Assuming accountability for your life situations.

Level Three: Taking up leadership roles in your family, community, business, or workplace.

Level Four: Developing a reputation as a leader in your community, career, or society.

The Ruler identity could be correct for you if your firm has the following characteristics:

• a high-status object used by influential individuals to boost their power;

• an object that assists in people’s organizing;

• a product or service with a guarantee for life;

• services that give technical assistance or information to assist in the maintenance or improvement of electricity;

• a body with a regulatory or protective function;

• a product having a moderate to high price range;

• a brand that seeks to stand out from the competition or is the market leader;

•  relatively stable industry or a product that ensures safety and predictability in a chaotic environment.

The ruler archetype aspires to be in charge. It aids in the development of a prosperous, thriving family and community. The brand archetype wants to be in order. Overturned amid chaos is the archetype’s most significant dread.

Ruler companies cast a spell on consumers who may lack resources and harmony. The archetype then conveys the notion of taking charge of one’s own life. Leadership, work, and organization are all things that require effort. The field is the last message of the Ruler archetype. It is about becoming a true leader in a community.

Moving forward, we will look at the positioning plan of Rolex.

Rolex is the first luxury watch brand that springs to mind when we think about luxury watches. Hans Wilsdorf, a well-known Swiss watchmaker, started the company in 1905.

Rolex rose to prominence in 1926, when it introduced the world’s first waterproof watch. Rolex has always been exceedingly inventive and successful with its designs and features. The brand has always been competitive and is at the forefront of luxury watch competitions.

Rolex may appear to be an exceptionally expensive watch brand due to its elegance and style, right? You’ll probably guess correctly based on its renown and image. Paul Newman’s Rolex Daytona, which cost $17.8 million, was the most expensive Rolex watch ever sold in the company’s history. Isn’t it somewhat pricey?

The Hans Wilsdorf Foundation trust provides Rolex with funding. The firm and its employees benefit from the brand’s earnings and income. Rolex does not reveal its earnings figures and does not pay corporate taxes.

Slogan.

Rolex, in reality, utilizes two slogans in its marketing, which we shall list and examine below, along with why they are employed and the purpose behind them. The corporation has used a few different slogans in the past. However, telling true slogans and merely marketing campaign taglines can be difficult.

Every Rolex tells a story.

The phrase “every Rolex tells a tale” is meant to spotlight successful people by recounting their stories. The anecdotes also detail how these individuals came to own a Rolex watch (which they have often had for a long time). As the tales show, these people acquired Rolex watches for various reasons, all equally significant.

Rolex wants to emphasize with this phrase that buying a Rolex is about much more than just a watch. It’s a memory that will last a lifetime.

Rolex wants to underline and emphasize that it is a brand for successful people with this tagline. You purchase a Rolex when you achieve success. Most significantly, those who buy Rolex watches have accomplished something. Rolex also tries to develop a “concept” and notion with this slogan. After every accomplishment, you should buy a Rolex to rejoice and memorialize it. The crown alludes to their emblem, which is usually always on all of their timepieces.

Rolex is synonymous with accomplishments and success. The world’s most successful people have always been wearing Rolex. Throughout history, not to mention the company’s creations and advancements.

A Crown for Evert Achievement.

Rolex wants to underline and emphasize that it is a brand for successful people with this tagline. You purchase a Rolex when you achieve success. Most significantly, those who buy Rolex watches have accomplished something. Rolex also tries to develop a “concept” and notion with this slogan. After every accomplishment, you should buy a Rolex to rejoice and memorialize it. The crown alludes to the emblem on all of their timepieces.

Now, we will examine the Marketing Mix of Rolex from several angles.

Place: 

A swarm of free-trade agreements have sprung up due to product globalization. Tax breaks on exports and imports will lower absolute pricing because most of the company’s producers are in Switzerland.

These rare timepieces are sold through authorized dealers in crucial cities worldwide on a global scale. The majority of the watches are made in Switzerland and then sold to international retailers.

Rolex has long emphasized the importance of developing personal contact with customers since it enhances the brand’s image. The corporation does not allow sales in low-traffic areas, such as modest showrooms or even on the internet. Instead, the brand is only offered at a few select retail galleries, reducing the risk of fake watches.

The distribution network for the brand isn’t extensive. On the other hand, Rolex requires a premium channel to maintain its premium status, which it already has. Rolex is a worldwide brand with 28 affiliates and 4000 watchmakers in over 100 countries.

Almost every continent has new stores and dealers for the brand. The brand’s distribution network isn’t pervasive. However, to preserve its premium status, Rolex needs a premium channel, which it possesses.

Price:

Rolex is a high-end brand with a premium price approach for its products. Its price range varies depending on the model of the development and the materials used in its construction.

The labour costs are also highly costly because the brand only hires the best artisans for assembly and design. Different ranges, such as “Diamond Inlay,” have substantially higher retail costs. With a price tag of 485,350 USD, the “GMT ice” is the most expensive Rolex watch ever made.

The exorbitant prices of watches are primarily affordable to persons in the upper class. The rise in raw materials such as gold has prompted the corporation to hike its prices. As a result of the high production costs, the company’s pricing policies are higher. However, the company still generates a profit due to its distinctive design and the value of the finished product.

The brand targeted consumers from the affluent class, who value rare things over money. As a result, the market for such timepieces is permanently active. Because the product selection is limited, the company reduces its financial instability, increasing the likelihood of huge gains.

Promotions:

Customers have always linked Rolex with luxury, and owning one is seen as a sign of social standing. Its product line targets a very specialized clientele: the ultra-rich. As a result, Rolex is always looking for opportunities to associate its watches with a high-profile sport or event. According to the company, all of their products are custom-made. And they have a specific value for each of their buyers. The brand’s objective is to persuade customers that only one watch is suited for them, and that watch is Rolex.

The “Australian Open” and “Wimbledon” both use Rolex as their official timekeeper. It also serves as the official timekeeper for “US Open” and “The Open Championships.” Rolex also sponsors the “Senior Open Championship” and the “Women’s World Golf Rankings.”

The “Rolex Sports Car Series” and the “24 Hours of Daytona” are sponsored. Rolex has been the official timekeeper for the Le Mans 24 Hours since 2001. And in 2013, they became the official timekeeper for FIA Formula 1.

Since 1968, ex-Formula One driver Sir Jackie Stewart has served as its brand ambassador. Roger Federer, Michael Schumacher, Daniel Craig, Cristiano Ronaldo, Arnold Palmer, Dame Kiri Te Kanawa, and Jean Claude Killy are among the numerous notable athletes and athletes associated with this distinguished firm.

We were able to do a thorough examination of Rolex’s Marketing Segmentation. We also learn what Brand Archetype they represent, which is Rulers, and the company’s general information. We then developed a mental image of potential clients based on that. We learned a lot about Rolex’s marketing mix, which influences the company’s marketing strategy. As a result, we can confidently assert that Rolex is deserving of its current renown and prosperity.

If you love reading articles like this, please visit our homepage!