Professional Documents
Culture Documents
In 1908, Wilsdorf registered the trademark "Rolex", which became the brand name of
watches from Wilsdorf and Davis, and opened an office in La Chaux-de-Fonds, Switzerland.
[5][16][17]
Wilsdorf wanted his watch brand's name to be easily pronounceable in any language.[4]
[18]
He also thought that the name "Rolex" was onomatopoeic, sounding like a watch being
wound. It is easily pronounceable in many languages and, as all its upper-case letters have the
same size and can be written symmetrically. It was also short enough to fit on the face of a
watch.[4][18]
With administrative worries tended to, Wilsdorf turned the company's attention to a technical
concern : the infiltration of dust and moisture under the dial and crown, which in turn
1
damaged the movement. To address this problem, in 1926 Rolex developed and produced the
first waterproof and dustproof wristwatch, giving it the name "Oyster". The watch features a
hermetically sealed case which provided optimal protection for the movement. [19]
In 1931, Rolex patented a self-winding mechanism they called a Perpetual rotor, a semi-
circular plate that relies on gravity to move freely. Its system was the first wristwatch to use a
360° winding rotor and would become the basis of all future automatic watches throughout
the industry. In turn, the Oyster watch became known as the Oyster Perpetual. [21]
Upon the death of his wife in 1944, Wilsdorf established the Hans Wilsdorf Foundation, a
private trust, in which he left all of his Rolex shares, making sure that some of the company's
income would go to charity. Wilsdorf died in 1960, and since then the trust has owned and
run Rolex SA.[11]
Recent development[edit]
In December 2020, following the abrupt departure of Chief Executive Patrick Heiniger for
"personal reasons", Rolex SA denied that it had lost 1 billion Swiss francs (approx
£574 million, $900 million) invested with Bernard Madoff, the American asset manager who
pleaded guilty to an approximately £30 billion worldwide Ponzi scheme fraud.[22] The
company announced Heiniger's death on March 5, 2013.
Rolex SA is owned by the private Hans Wilsdorf Foundation, which is registered as a charity
and does not pay corporate income taxes. In 2011, a spokesman for Rolex declined to provide
evidence regarding the amount of charitable donations made by the Wilsdorf Foundation.
[23]
In Geneva where the company is based, it is said to have gifted, among many things, two
housing buildings to social institutions of Geneva.[24]
According to the 2017 Brand Z report, the brand value is estimated $8.053 billion. [5] Rolex
watches continue to have a reputation as status symbols.[25][26][27][28] It produces more than
800,000 timepieces each year.[1] It is said that "The power of the Crown is never more felt
2
than when trying to negotiate space in a retail environment for the product of another brand".
[29]
After liberalization of Indian economy in 1992 many international players have entered the
Indian Watch market posing as competitive threat to the Indian companies.
Lately Rolex has tried to reposition its Brand to capture more segments of the watch
market retaining the already served market segment. The strategy has been studied in deep
during the project. Many brands and companies are constantly reinvigorating their businesses
and positioning them for growth. There is a constant need to innovate, reinvigorate, update,
recalibrate, or just simply fend off the competition in an effort to better explain "why buy
me."
Brand positioning creates a specific place in the market for the brand and product
offerings. It reaches a certain type of consumers and delivers benefits that meet the needs of
several key target groups and user.
In recent times, consumerism has undergone a sea change. Consumers today are well
informed about the products, as compared to earlier times. Hence, the marketplace has
become customer centric. Recognizing the importance of the customers in the business
structure, companies have started effecting brand repositioning exercises on a regular basis.
In the recent times, a major brand repositioning exercise has been planned by Rolex
Industries Ltd. in order to provide more to its customers. The company has first gone for
change in logo and tagline. Then the communication strategy has been revamped to convey
its new position. The present study consists of reviewing the positioning strategies of Rolex
watches. An analysis of repositioning strategies of Rolex also forms part of the study. The
main objective of the study is to find out whether the loyal consumers of Rolex watches are
aware of the new positioning strategies of the company and how they perceive them.
3
Primary and secondary sources of data have been made use of in the study. The first
part of the project, i.e., analysis of brand repositioning strategies of Rolex Company has been
completed on the basis of secondary data. For this purpose, internet, journals, books,
magazines and so on have been made use of. The second part of the project comprises of
conducting a survey with the help of questionnaire. The survey is proposed to be conducted
on a sample of 50 consumers who are loyal to Rolex Company, selected through
convenience sampling technique. The questionnaire consists of appropriate mix of open
ended and closed ended questions. The data is presented using pie charts and bar diagrams.
The conclusion part of the report would provide an insight of consumer awareness regarding
brand repositioning strategies and their effectiveness in revamping the brand, Rolex
4
CHAPTER 1
The rapid pace of change and intense competitive pressure in today's marketplace demand
that brands continuously innovate and reinvent themselves to maintain their relevance and
market position. In this context, brand repositioning and other revitalization strategies have
become a business imperative for battling brand erosion. The appeal of brand repositioning is
further heightened by the rising costs and high risk associated with launching a new brand.
Brand repositioning has received little attention in the marketing literature and has
mostly been treated as a variation of brand positioning. Biel, for example, has defined brand
positioning as "building (or rebuilding) an image for a brand". The goal of positioning and
repositioning strategies relates to the management of consumers' perceptions. However,
positioning focuses on the creation of brand associations - consumers' perceptions of the
attributes that differentiate the brand from competitive offers – while repositioning also
implies managing existing brand associations. The unique challenge of a repositioning
Strategy, thus, lies in rejuvenating the brand image to make it relevant in an evolving
environment, while honoring the brand equity heritage.
Repositioning can be required as the market changes and new opportunities occur.
Through repositioning the company can reach customers they not intended to reach in the first
place. If a brand has been established at the market for some time and wish to change their
image they can consider repositioning, although one of the hardest actions in marketing is to
reposition a familiar brand.
According to Solomon, position strategy is an essential part in the marketing efforts because
companies have to use the elements in the marketing mix to influence the customers
understanding of the position. During the movement from something less attractive and
relevant towards a more attractive and relevant position several of strategic choices has to be
5
made. The ones responsible for the repositioning have to evaluate why a reposition is
necessary, and if the offer is the one who will change or just the brand name. There are several
risk factors that have to be taken into consideration when preparation for a repositioning of the
offering or the brand. During repositioning, the risk of losing the credibility and reliability is
high and the need for a thorough strategy is therefore necessary to avoid this occurrence.
Some analyst argue that to successfully reposition a establish brand name is almost
impossible because repositioning of a brand can make the most loyal customer to switch
brand. But, in some circumstances a repositioning is necessary to gain credibility if the brand
is eroded. Whenever a reposition is in question it has to be of relevance from a customer
perspective, is this achievable? Some brands will on no account be thought on as a luxury
brand and therefore an attempt to reposition will only damage the brand image or the actual
company.
Research into brand repositioning is relevant not only to the development of brand
management theory, but also extends to corporate strategy through an examination of
corporate brands.
6
1.2 LITERATURE REVIEW:
The repositioning strategy is rolled out in three stages: introductory, elaboration and
fortification stages. This involves the introduction of a new or a repositioned brand, seeking to
underline the brand’s value over others, and to broaden the brand proposition. It is truly tough
to change the customer’s perceived attitude towards a brand, and therefore the risk is great that
the attempt to repositioning might be unsuccessful.
After rolling out the strategy, it is time to modify the proposition through update of the
personality and through repositioning. There are benefits and risks with both of this segments
and it is of great significance that they are truly evaluated when deciding the next step in the
process.
Establishing Selecting
the Appropriate
Marketing Mix
Brand
Proposition
The implication with the term” repositioning” is that a company modifies something that is
already present in the market and in the consumer’s mind. The definition of repositioning
changes different individuals and professions.
7
To view the different definitions and perceive a greater understanding about this concept,
three examples of repositioning given by individuals in different professions is stated below:
“Repositioning is a change, principally about trigging the vision, mission and value in a new
direction that is more suited for the brand in the future”.
-Brand manager consultant
“Repositioning is built upon the change unique and differentiated associations with the brand
in some kind of direction, it is about having a balance between the category party and
differentiation when using reposition strategies”
-Leading brand strategist
8
As stated in the literature, repositioning is a very complicated matter and therefore there are
no detailed theories or models. The aim with repositioning differ from person to person, and
the only connection between all the different theories is that repositioning is moving
something from somewhere towards a greater position at the market.
(1) Zero repositioning, which is not a repositioning at all since the firm maintains its initial
Strategy in the face of a changing environment;
(2) Gradual repositioning, where the firm performs incremental, continuous adjustments to its
positioning strategy to reflect the evolution of its environment; and
(3) Radical repositioning that corresponds to a discontinuous shift towards a new target
market and/or a new competitive advantage.
After examining the repositioning of several brands from the Indian market, the
following types of repositioning have been identified. These are:
4. Falling sales
It is not always that these nine categories are mutually exclusive. Often one reason leads to
the other and a brand is repositioned sometimes for a multiplicity of reasons.
9
A four-phased brand repositioning approach can be followed to achieve the
Intended benefits:
The benefits that can be derived from brand repositioning exercises can be summarized as:
Updated personality
Relevant position
Loss of focus
10
Therefore, brand repositioning is more difficult than initially positioning a brand because one
must first help the customer “unlearn” the current brand positioning (easier said than done).
Three actions can aid in this process:
(2) New products, packaging, etc. that emphasize the new positioning and
11
2.1Objectives:
This study would help Rolex industry to understand the gaps in its communication
strategy regarding brand repositioning exercises and the further measures to be taken for
effective marketing communications.
2.2 Limitations:
12
The relevant data was collected from both primary sources and secondary sources.
The starting point of my information gathering has been the secondary sources such as
internet, books, and journals and so on.
First, I made a study of the brand positioning and repositioning strategies of Rolex
watches through secondary sources such as internet, insurance magazines, and journals
and so on. Then I conducted a consumer awareness survey on brand repositioning
strategies undertaken by Rolex watches in recent times.
A sample of 50 consumers who are brand loyal to Rolex watches since more than
a year and in the age group of 20 – 30 years have been considered for this study. As Rolex
has taken up brand repositioning strategies since January 2020, consumers who have seen
the previous and new campaign have been targeted
Data was collected through an interview schedule, consisting of both open ended
and closed ended questions. The schedule covered parameters like reasons for consumers’
brand preference; recollection of earlier tagline and advertisement, brand ambassador of
Rolex ; awareness of new tagline and campaign featuring Aamir Khan, new designs and so
on. The data was collected through e- mails, telephone contacts and one-to-one personal
interviews.
13
CHAPTRER 3:
INDUSTRY OVERVIEW
The Indian watch industry began in the year 1961 with the commissioning of
the watch division of HMT. The first watch model manufactured by HMT was the Janata
model in the year 1962. HMT was the leader in the watch market till the Tata’s formed Rolex
Watches in association with Tamil Nadu Industrial Development Corporation in the year
1987. They took a major strategy decision, which later changed the face of the Indian watch
market- to manufacture only quartz watches. Liberalization in 1992 and the removal of
quantitative restrictions due to WTO has opened the doors for many foreign brands in the
Indian market viz. Tissot, Swatch, Omega, Rado, TAG Heuer, Rolex and many others. The
import duties on watches are falling which makes the Indian market look attractive for the
global majors like Casio, Swatch and Citizen.
14
3.2 Indian Watch industry:
Figure 2. Porter’s five forces model
SUPPLIER POWER
DEGREE OF RIVALRY
BARRIERS TO
THREAT OF
ENTRY Increased number of firms
SUBSTITUTES
Cluttered Market Lack Low switching costs
No close substitutes
of Differentiation
Strategic stakes are high
BUYER POWER
1. Supplier Power:
10. HMT has its own fully integrated operation for production of its watches. Rolex
has its own production facilities for which it has invested roughly 120 crore rupees over the
years, the manufacturing capacity of which is 6 million units. Also there has been a rise of
low cost producers in China & Taiwan which has provided an opportunity for watch makers
to outsource watches at low cost, just as Rolex has done to outsource the components for
Dash. Due to the large supply of watch movements available, there is little supplier power in
the watch market.
2. Buyer Power:
15
The Indian watch buyers are very price sensitive, especially in the lower end of the
market. There is still a huge untapped market in India with market penetration of only 20
units per thousand people while the world average is more than 100. At the same time there
are a segment of people who are willing to pay a premium for watches with good
performance and with a recognized brand name. So understanding the buyers’ preferences is
very crucial in this industry in order to gain a substantial market share.
3. Entry Barriers:
The Indian watch market in the recent years has shown a dramatic increase in the
number of brands available in the market due to removal of quantitative restrictions. So the
new entrant has to have an offering, which can be positioned and differentiated from the other
players in the market. This could be either price or functional or emotional appeal. So the
prime barrier for entry, in the current context, for a new entrant is to build a brand image and
price competitively.
4. Threat of Substitutes:
There are no such substitutes to watch as a product. However, in terms of the
companies offering various variations for watches such as pendant watches and jewellery
watches, some sort of substitution has developed. Rich consumers prefer to purchase watches
more as a fashion accessory rather than simply for its typical use.
5. Degree of Rivalry:
There are many companies in the Indian watch market; however, the product ranges
offered by them are manifold. This makes the competition very stiff. Also at the lower end
of the market it is basically the Value for Money, which differentiates the players. The
strategic stakes for the producers are very high. Rolex Ltd., the largest company in terms of
market share in the organized sector has faced losses in the quarter ended June 2001 despite
increase in the market share due to macroeconomic situation. HMT faced a similar situation
when Rolex was introduced in the 1980s leading to a sharp fall in its market share.
16
The Indian watch market is today of 40 million units, out which 60% is in the
unorganized sector in which the maximum number of watches are sold are below Rs.300.
Quartz watches form two thirds of the organized sector and the rest is split between
mechanical and digital watches. Even in the organized sector, three fourth of the sales by
volume comes from watches that are priced below Rs.1000.
Plastic as such is not acceptable to average Indian consumers, especially those from
the small towns and rural areas who regard it as cheap and flimsy. They want toughness-
which translates into a good quality metal model at a reasonable price.
Watch is one of the consumer durables whose replacement rate is very high. The
replacement rate of watch is 33.8 % (Source: India market demographics report, 1998). This
is also due to the fact that the estimated scrap rate of wrist watches is 7.8%, which is
applicable after 6 years (Source: India market demographics report, 1998). So due to high
scrap rate, outdated models, and the shift from the mechanical watches to the quartz watches
is causing a very high replacement demand for watches. These along with the low penetration
levels represent the untapped market potential for watches in India.
The major players in the Indian watch market include HMT, Rolex and Timex. The
other players include Westar, Shivaki, Maxima, and SITCO. Foreign brands such as Cartier,
Piaget, Omega, Tiffany’s and Corrum, Gucci, Longines, Casio, Citizen, Tag Heuer and
Espirit are also making an inroad into the Indian market.
Rolex has been consolidating its market share over the past decade. Timex watches, which
entered in India with collaboration with Rolex , now independently has also gained
substantial market share.
17
3.5 Segmentation of Indian Watch Industry:
Based on price
1. Mass (Rs.350-600)
2. Popular (Rs.600-900),
3. Premium (Rs.900-1500),
4. Super-premium (Rs.1500-8000)
1. Men’s watches
2. Women’s watches
3. Youth watches
4. Kids watches
5. Sports watches
18
CHAPTER 4:
When the company launched its products, it was the first to bring quartz watches to
the Indian market. The company successfully leveraged this to penetrate the market and gain
13.a market share. Raga, Classique and Regalia come under this strategy. Classique has been
positioned as elegant corporate wear that leaves a quiet, but definite impression and fusion of
function and sophistication. Power dressing now has a new weapon! As Magic in gold and
bicolour look, the 'Regalia' range represents the essence of dress-wear. Raga has been
differentiated and positioned as exclusive watches for women. The Raga and Silver Raga
collection is elegant, delicate and feminine with each piece being truly unique.
Rolex caters to several user groups- children (the Dash), sportspersons and
adventurers (PSI4000 and Fast track range). The Fast track range is seen as being
contemporary, sturdy and reliable. The advertising, packaging and merchandising of this
range is young, vibrant and ‘cool’ (the ad line says “Cool watches by Rolex ”)
19
The Fast track Digital range offers the customer a functional watch that is also
attractive. The digital watch has a “techno-geek” image, but Rolex seeks to differentiate its
offering on the basis of superior style and attractiveness.
With the entry of several foreign watchmakers into the market, Rolex had to
counter the threat. Most of the entrants are catering to the upper end of the market- Omega,
Tissot, and Cartier etc. Rolex already had the Tanishq brand in this segment. However, it has
tried to reposition this brand by increasing the price range to encourage more customers.
In the overseas market, especially in Europe where it is competing with Swiss and
Japanese watches, it is positioning itself as ‘value- for- money’: reasonably priced (less than
Swiss watches and higher than Japanese), attractively styled and of good quality. In Indian
market, Sonata is a perfect example of Price positioning, Rolex came up with this segment
when it was facing heavy competition from lower end segment.
20
CHAPTER5:
Rolex WATCHES: BRAND REPOSITIONING STRATEGIES
Rolex Industries decided to revamp its flagship watch brand, Rolex , with the intention of
making it more youthful and relevant to the changing times. The brand, launched more than
24 years ago, has undergone a major repositioning exercise only once before – five years ago,
when Hindi film actor Aamir Khan was appointed brand ambassador. What followed later
was the ‘What’s Your Style?’ campaign, which tried to increase watch consumption per
person, by suggesting the use of different watches for different occasions.
Beyond Style
Now, Rolex wants to move from style statements to personality statements. According to
Harish Bhatt, chief operating officer, watches, Rolex Industries, a watch ought to denote the
wearer’s mood and personality. “With the explosion of options in a person’s life, our core
consumer is changing. And to keep up with them, Rolex has evolved too,” he says. On the
adoption of ‘Be More’, Bhatt says that that statement is supposed to denote the aspirations of
consumers to make more of their lives and be whatever they want to be. “The watch allows
for such imaginative travels,” he says.
Rolex ’s agency, Ogilvy India, has devised a campaign featuring Aamir Khan that encourages
people to find a new strand of their personality every day. It all started with a logo change a
21
few months ago (the same font in a red and white combination), followed by a campaign
rolled out now.
The ad film opens on a shot of Aamir Khan sitting alone on a roller coaster, stating, ‘Be born
every day’. Next, he is seen chasing the shadow of an aircraft on a beach, then, sitting beside
a truck driver, in the middle of nowhere, with a trail of chassis trucks behind him. Here, he
asks the viewers to try the adventure of getting off at an unknown station, of exploring
unknown lands.
As he crashes his vehicle while go-karting, Khan waves to the others around him,
while his voiceover explains the importance of making one’s own mistakes. Further on, he
talks of not making your passport photos last longer than three months – you need to
constantly reinvent yourself and adopt a new look every day (cut to shots of Khan’s varied
hairstyles and looks in his movies, shown in an ambient way through posters and T-shirts).
“Shock your reflection!” says Khan, as we see him with funny accessories framing his face.
The next vignette has him practicing meditation while slyly checking out a girl walking past
(‘Explore’). Cut to a shot of children, with Khan explaining how we aspired to be different
people as kids – “let’s revive that aspiration today”. Wearing amour (sword and all), Khan
Reiterates, ‘Be Born, Every Day. Rolex . Be More’.
Malvika Mehra, group creative director, Ogilvy & Mather Bangalore, says, “‘Be More’
pushes people to live many lives in one. We want to trigger people into questioning, ‘Why
should we be single minded and boring? Time to be multi-faceted, just like Rolex !’”
Khan fit the bill as Ogilvy borrowed from his own life and work and his need to constantly
experiment and reinvent himself. “Be it Mangal Pandey or Lagaan or Dil Chahta Hai, Aamir
always manages to look different in every role,” explains Mehra. “So we showed him doing
things that were spontaneous, such as exploring places or go-karting.” The idea, simply put,
is to live life to the fullest – with Rolex being the instrument of such expressive liberation.
22
The ad was directed by Prasoon Pandey of Corcoise Films; this is Pandey’s third Rolex
film, the earlier two involved Khan and his assistant, played by the late Vihang Nayak. The
first film had Khan confused about which watch to match with each outfit he’s packing
before a trip, while the second film showed him delighting a girl in a mall with a watch. “This
third film has a much stronger script than those two,” shrugs Pandey. “It’s about bringing a
mindset onto the screen with a better celeb-brand marriage.”
Shot entirely in Chennai, the film has been shot in a way that suggests that multiple
locations were used for the shoot, as opposed to one city. “We had fast paced shots to spread
the look of the film,” says Pandey. When asked why Chennai, he quips, “Because it was
Raining in Mumbai then!”
Several layers were added to the film. To show the aspirations of children, a young
girl was shown staring at an object and, later in the frame, you see the object is a butterfly –
the girl wants to fly.
“Kids are freer in their thinking than adults and we hope this has been portrayed,”
Pandey says. Even the last frame of the ad, which has Khan dressed as a mock warrior (with
an impromptu utensil serving as his helmet), was made to look like the man had made use of
things lying nearby in a spontaneous way.
23
September 20th, 2011:
Aiming to widen its appeal amongst Indian women, Rolex , India’s most preferred
watch brand, today announced their association with Bollywood’s most beautiful and
charming Diva, Katrina Kaif. Ms. Kaif has been signed as the brand ambassador for their
exclusive women’s watch brand, Rolex Raga.
Incepted in the year 1992, Rolex Raga has won the hearts of millions. Designed
exclusively for women, these exquisite and elegant timepieces perfectly capture the essence
of beauty, femininity and sensuality. The brand has grown over a period of time in sync with
the evolving tastes of the contemporary Indian woman.
Mr. Ajoy Chawla commenting on the brand said, “Driven by continuous launch of
new designs and collections, Raga has witnessed a 27% CAGR in the last 5 years and will be
Rs.400 crore brands this year! However, the potential in the women’s segment is still huge as
watch penetration even amongst SEC A/B women is still very low. A brand ambassador will
help to make the watch a desirable accessory amongst women.”
Further talking on their association with Katrina, Mr. Chawla said, “Rolex Raga
stands for beauty, femininity and sensuous self expression. While embodying these core
values, Katrina also symbolizes the changing face of the successful, graceful and
contemporary Indian woman.”
Talking about her association with the brand Katrina Kaif said, “(Smiles) Rolex needs no
introduction, this vibrant and ‘up-to-the-minute’ brand has been touching our daily lives in
24
the most beautiful way possible. It gives me immense pleasure and satisfaction to be
associated with the most popular and only women’s watch brand in the country. Besides
being a timekeeper that helps me keep up with my busy schedules, it also adds to my style
quotient. I feel watch designs from Rolex Raga are truly exclusive and contemporary. I am
really looking forward to the exciting days ahead with the iconic brand “Raga”, which
embodies beauty, sensuality and femininity with great creativity.”
As a brand ambassador of Rolex Raga, the renowned actress will play a key role in
shaping brand communication on television, print, outdoor and other media.
1. Sonata’s sub-brand:
Sonata has launched the Yuva 2020 collection, a series of colourful watches. They
are available in both casual and formal styles to complement the young, new look for college
or office wear.
The collection has watches for both men and women at price s starting at Rs 645.
They are available in both gold and steel looks, with both metal and leather straps. Sonata,
the watch brand from the Tata’s, launched the Super Fiber, targeted at the sub-Rs 500 market
in urban, semi-urban and rural India.
25
The watches have been designed primarily for youth in the 16-30 age group, and will be
available in a price range of Rs 275 to Rs 550. The tag line for this sub-brand is ‘Super
Strong, Super Style.’
The company announced 360-degree marketing campaign for the new offerings. It
also unveiled its TV commercial featuring Indian ODI captain Mahendra Sing Dhoni, “in a
brand new avatar”.
3. Octane
Rolex has launched the Octane collection of chronograph, multifunction and
retrograde watches for the urban man. The range is described as blending style and
technology. The collection has over 35 styles and is priced between Rs. 5,000 and Rs 7,500.
4. Nebula Celeste
It is a limited edition collection of jewellery timepieces. They are crafted in 18k white
and yellow gold. Prices range from Rs. 6 lakh to Rs. 12 lakhs.
5. Raga Crystals
Rolex Industries Ltd has unveiled its new Raga Crystals collection of watches in
Kerala. The two new watches, called Venus and Fairy Dust, are available in yellow metal and
bi-metal versions. Venus is priced at Rs 4,450 and Fairy Dust at Rs 4,750.
26
6. Rolex ’s Stambha
A new ladies Heritage wrist watch ‘Stambha’ signifying fame, prosperity and good
luck was unveiled as part of Heritage collection. Mr.Vijesh Rajan, Regional Sales Manager
(South), launching the watch collection, said that plans are on the anvil to launch one new
collection every month, reflecting the 3000-year old art and cultural history of the country.
A sale of around 7,500 watches has been fixed as a target for this fina ncial year in the
Heritage collection, he added. The prices in the collection range between Rs 5,000 and Rs
10,000.
7. Nebula Zeus
It is a mechanical automatic watch in solid gold for men. Priced at Rs.1, 10,000, the
limited edition watch (500 pieces) harks back to an older era of luxury and romance.
The Nebula Zeus watch has been crafted using Swiss made mechanical automatic
movement with gold finish and a sapphire crystal back cover. Other features include an
instant start, a second hand stop device for accurate time setting; 42 hours reserve powers and
auto wind convenience. The watch collection was launched by singer and actor, Vasundhara
Das.
8. Raga Shimmer
It comprises of a collection of exquisitely designed studded watches that complement
both Indian-wear as well as Western-wear. Priced between Rs 2,995 and Rs 4,495, the new
collection comprises watches in gold, steel and bi-metal finishes.
9. Raga Diva
An exquisite range of watches for women in the Kerala market. Inspired by traditional
Kundan work, this collection has been rendered in a delightfully contemporary form. It is
priced between Rs 4,000 and Rs 10,000.
27
OTHER STRATEGIES
· Rolex is also trying to reach new customer segments. They are now trying to target
all adults in socio economic classes A&B.
· Rolex is also looking at innovative retail strategies and planned to launch ten
innovative product collections soon.
HMT 19%
Maxima 13%
Rado 7%
Casio 3%
The strongest selling point of Rolex is that it is available and affordable. Rolex provides
watches for all segments, like from low-cost Sonata for first time user, Fast-track for the
trendy young, Dash for the kids, and the higher priced Regalia and Nebula to the premium
segment customer.
The Indian watch market is estimated at 25 million watches a year, where the
domestic sale is 6 million watches per annum. The rural segment is the diverse market in the
present scenario. The key success story of Rolex is capturing the rural market on a large
scale. The range cost is between Rs. 495 to Rs. 1200. And the model is available exclusively
in all showrooms and is sold mainly in small-town in India.
Though, The Company faced enormous challenges from its big list of competitor, the
company still in the number one position in domestic market because of the weakness of the
competitor. The company becomes more reliable and more acceptances to the consumer
because of its marketing mix. The company has adopted the new marketing innovation to
improve the feature of the product by time to time.
28
Though the current financial environment is not in favor, but the company performing well
and saw an increasing trend in the profit chart.
The company trying hard to convert its weakness into strengths and threats into strengths and
threats into opportunities by bring revolution in the product style, model, features, pricing
policy, product quality, etc.
Companies certain initiatives and policy such as new innovative design, guarantee, the
research and development, wide dealer network, committed service team, discount and offers
make the company.
29
TO FIND OUT THE BRAND PREFERENCE FOR WATCHES
Environment Analysis:
Competitive Forces
Major Competitor
There are lots of competitor in wrist watch segment which directly or in directly affecting the
Rolex watches industry. The major players’ are-
Domestic Level:
· HMT
· Maxima-quartz
· Rado
· Casio
International level:
· Espirt
· Swatch
· Citizen
· Seiko
Fashion Houses:
· Dkny
· Gucci
· Adidas
· Nike
30
Among all these competitors, Maxima-quartz and HMT are major players .The strength and
weakness of the companies varies from segment to segment
Industry’s Role
As there have many competitor exists in this Industry, the competition is too much.
Whenever any company bring changes in its marketing mix, all the companies also
implement changes in their marketing mix to sustain in the competition. By that the structure
of whole industry is changing and affects the competitive forces in the Industry.
31
Economic forces
Economic landscape:
Indian corporate sector is nervous because of current Inflation. This problem occurred not
only in India, but it affected all the countries due to United State financial crisis.
As we came to know from Federation of Indian Chamber of Commerce and Industry (FICCI)
that 64% of the 413 companies are running currently in worst condition from last 6 months.
Consumers view:
As we know that Inflation is in double digit figures, but the people who lives in urban area or
metro city, are having optimistic view towards economy.
People think that the economic condition of our country will be improved in the near future.
32
The company’s watch sales grew by 18.8 per cent and its income increasing from Rs255.34
crore during the second quarter of last year to Rs303.45 crore during the second quarter of
this year. On the basis of the above table and profit figure we easily understand consumer
buying power in target market.
Despite of high inflation, high oil prices and high volatility in gold prices, watch segment of
Rolex Industries doing well in the current fiscal. For these, watch segment sales income
increased from Rs.168.83 crore during the first quarter of last year to Rs.171.89 crore during
the corresponding period this year. These data indicate that consumer’s spending pattern is
increasing respective target market.
From the above information we can easily understand that consumers buying more of Rolex
wristwatch. There are few reasons behind the growth in sales of Rolex .They is as follow.
Brand name
Attractive models
New innovation
Political forces
33
Political landscape:
Our new Government took lots of steps to make the global relation as well as some steps to
develop our country GDP, decreasing the rate of Inflation by decreasing rate of Cash Reserve
ratio (CRR) as well as by decreasing the Repo rate. These all steps help the Industries to get
sustain in the market.
As all the steps help the Rolex industry to compete in the watch industry. The performance
of this sector for last few years are-
As we all know that TATA group is the one of reputed companies in the world, it really helps
the country development.
Moreover, the companies always want to make good relation with the political parties,
because we know that India is a democratic country which is it- self elected by the people the
country.
As the Rolex industries operates their business in the global area, they have to follow lots of
regulatory norms.
The industry can be directly affected by the certain rules such as change in Taxation rate.
Technological forces
34
Impact of Technology:
Changing in technology always play a great role in the target market. Rolex decided to
manufacture only QUERTZ (Analog and digital) and not mechanical and they would start
plant to manufacture watches in wide variety in design and prices.
Rolex changes the technology in that ways which help in enhance the quality and the
features to increase buyers’ value. Rolex gets advantages in the target market through
innovative technology.
As there is too much competition, if Rolex not accept the changes in technology then they
can’t sustain in the market. In premium segment, competitor will capture whole market by
improve technology. And in the mid-price segment, other companies will give a tough
competition to Rolex .
Technological changes:
The new marketing innovation can bring a drastically changes in the marketing activities of
the company. The new innovations which can differentiate the company from the competitor
are
Some companies can come with the watches which help in knowing the mood
of the person.
35
Tata believes that improve the quality of the life of people and the employee is the
primary purpose of their business. It uses its resources in the best possible way. They also
takes some reasonably steps to improve the quality of life of the people of the areas in which
they operates.
Tata adopt the corporate citizenship index, tata business excellence model and tata index for
sustainable development which reflect its commitment to its corporate social responsibility
(CSR). Tata spends 5-7% of its profit after tax on several CSR initiatives
These CSR initiatives are spread across three core areas, such as employee welfare, the
environment and the welfare of the community at large.
B. TARGET MARKET
36
Identification
The Rolex industry basically deals in three segments for its watches. They were as follow.
In this segment mainly the consumer who buys a wrist watch as a fashion accessory.
Middle group:
In this segment mainly consumers are like some fashion in their watches. These consumers
would not purchase a watch without comparing various offers in the market.
Lower-income people: this segment mainly consisted of lower- income consumers who want
watch mainly as the time –keeping device and purchase on the basis of price
TV 46
Magazines 25
Newspapers 36
Hoardings 15
Radio 4
37
· PRICE
· PRODUCT
· PROMOTION
· PLACE
1. PRICE:
As achieve our marketing our marketing objectives, we can do some change in the pricing.
A. Survival:
In case of some of the watches Rolex prices them according to the features .The
Exacta is a simple steel watch priced at Rs.600-1,100. As the company also deals
with Spectra, Raga through pricing policy.
B. Market share:
As we know that 70% of sales in watches come from the lower segment, therefore
by pricing Sonata at 350 onwards with guarantee. Rolex prices its world watches
which compared equal to an international players like Calvin Klien where a
customer pays 4 times as value of the world watch, therefore market with low prices
to international players to gain market share.
C Market Skimming:
In Indian watch industry there is no one offering pure gold watches, watches in pair jewellery
watches. Here Rolex offers there product with the Indian touch in its design, the product,
the love.
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2. PRODUCT:
Quality and leadership are the two main terms for the Rolex . As to achieve the marketing
objectives this aspects should also be considered.
A. Product line:
To increase the sales, the differences in the prices of the watches are justified by the
features.
B. Product pyramid:
C.Product strategy:
Rolex was first focused only on the premium segment of the watch market. As per
the product strategy they took, Rolex moved in to the mass market for watches. To
widen base, Rolex created new segments and increasingly focusing on segments
individually. In the past few years Rolex has took a lot of initiatives to focused on
specific segments.
D.Product Quality:
Quality and leadership are synonymous to Rolex . It seeks to achieve both through
their value for products compared to their prices.
3. PROMOTION:
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Promotional pricing:
A. Marketing pricing:
As by opening new shops such as the world of Rolex – buy directly from the dealer
and hence the element of middleman is not there.
Here the retailer in this category buys watches for 17-18% lesser than MRP and hence they
are able to get the 17% profit margin on sales.
Price discount and allowances: Every year Rolex comes with a price discount sale on the
MRP of the watches. The allowance varies from one segment to another.
The prize winning design was launched as a new watch in summer 2002 collection.
Type of advertising: Rolex believes in making its ads clean, well made, touch on emotional
chord. As the company is using celebrities or superstars that is Amir Khan for the Rolex
watches.
4. PLACE:
40
Keeping in mind about the young trendy and fashionable consumers, Rolex distribute its
product and set up ‘world of Rolex ’ in different region. The consumer’s life style in India,
especially in urban area (because the turnover in urban area is 210 million, while the turnover
in rural area is 90 million) plays a significant role in the success of Rolex .
A. Time Zone:
Rolex Industries brings together the country’s leading watch brands under one roof,
providing the customer with variety in brands, looks and price ranges and also
efficient after-sales service. These 1142 Time Zones located across 89 towns which
offer its customer the complete watch shopping experience.
B. Value Mart:
These outlets sell surplus stocks of Rolex watches at reduced prices. By doing these it
offering fabulous value for money with the same warranty as a regular full-priced
watch enjoy. However these shops would not be placed in the main locations and not
working as a normal shops. This is to make the customer go to the shop rather than
the shop calling the customer and hence the locations are not very suitable for
shopping.
C. Sonata Stores:
A Sonata store is also an Authorized Service Centre for Sonata & Rolex brands.
Sonata store meet the large scale demand for the watch and also to attract customers
in more. These shops had full stocks of the watch in demand whereas the others could
afford to maintain only limited stock.
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Cultural
Social
A. Cultural Factors
· Social class
B.Social Factors
C.Personal Factors
· Economics Circumstances
· Occupation
· Lifestyle
D.Psychological Factors
42
· Motivation
· Perception
· Learning
NEED ANALYSIS
Consumers need:
43
The demand and the need vary one market segment to another segment on the basis of prices
& quality.
The current need can be satisfied by the following ways in the different segment.
High class: Rolex offered Aurum and Royale in gold watch range .They were
stylish watches in all gold and precious metals.
Middle income class: Rolex offered the Exacta range in stainless steel. There
were 100 different models in the range. The prices ranges are between Rs.500-
700.
Lower-income group: Rolex offered the Timex watches and later, when the
arrangement with Timex was terminated, the SONATA range.
The prices ranges were Rs.350-500.There was 200 different models in the
ranges.
Current marketing objectives of TATA are to strengthen India’s Industrial base through the
proper utilization of resources like employee and materials. Besides, the company seeks to
reach the height of excellence atmosphere which is free from fear and threat.
Performance Analysis
Rolex Industries achieved significant growth during the year ended 2007-08. Watch segment
sales also grew by 17.2 per cent to Rs 918.7 crore. All brands of the company have performed
well and new introductions in gents’ watches, the Raga Crystal for ladies.
44
SEGMENTATION:
Dividing the market by grouping the customer with similar tastes and preferences into one
segment is called is called “segmentation”.
Segmentation help marketers understand the needs of different customers better and serve
them with better value propositions.
· Segment Marketing
· Individual Marketing
· Niche Marketing
· Local Marketing
A) SEGMENT MARKETING:
45
Marketers target more than one segment when it is not economically feasible to
design products and services for individual segments. The focus of segmenting the
market will be on providing enhanced service to the customer by offering customized
products that will satisfy the needs and wants of customer in that particular segment to
a large extent. Segmentation is also sometimes identifying, capturing and retaining
potential new markets.
Rolex PERSPECTIVE
Mass
Mid-premium
luxury
B) INDIVIDUAL MARKETING:
Rolex PERSPECTIVE
C) NICHE MARKETING:
A niche is more narrowly defined group, typically a small market whose needs are not
well served. Marketers usually identify niches by dividing a segment into sub
segments or defining a group seeking a distinctive mix of benefits.
Rolex PRESPECTIVE
In a study conducted to study the customers of watch market, it is revealed that 42%
of them are youth. So, Rolex tried to target this by:
· introducing FAST TRACK
· price offering from Rs 500(affordable)
· watches with style statements
D) LOCAL MARKETING:
46
Marketing programs being tailored to the needs and wants of local customer groups.
The prominence of local marketing has also become very dominant.
Rolex PERSPECTIVE
All the products of Rolex are addressed to all the customers as a whole. Localized
products are not available. But some products which are available in UK have some
pictures of eminent personalities on their Dial like M.K. Gandhi, Mr. Jawaharlal
Nehru, etc. so that the customers can identify the product with those dignitaries.
47
Markets are mostly segmented on the basis of geographic, demographic and psychographic
factors:
Geographic segmentation:
It calls for dividing the market into different geographic units such as nations, states, regions,
countries, and cities.
Demographic segmentation:
In this the market is divided into groups on the basis of variables such as age, family, size,
life cycle, gender, income, occupation, education, religion, race, generation, nationality,
social class. These variables are the most popular basis for distinguishing customer groups.
The following are some of the demographic variables used to segment the market:
· Age and life cycle stage: Consumer wants and preferences change with age.
These tastes and preferences are not constant and change with time.
Rolex PERSPECTIVE
a) For the age group 12-20, brands like TIMEX, Sonata, etc.
b) For the age group 18-30, brands like FAST TRACK, TECHNOLOGY, SONATA, etc.
c) For the age group 30-55, brands like SONATA, NEBULA, RAGA, STEEL, REGALIA,
BANDHAN, etc.
GENDER:
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Gender segmentation has been applied to clothing hairstyling cosmetics, wristwatches,
magazines etc. There are certain brands, which are positioned exclusively for a specific sex.
Rolex PERSPECTIVE
Sex (steel, regalia, nebula, fast track, technology, sonata, edge, flip)
Gents (flip)
Ladies (raga)
INCOME:
Marketers tend to segment product and services on the basis of income groups. Nowadays,
companies have recognized the potential of lower end income groups and have started
targeting them.
Rolex PERSPECTIVE
Rolex offers its products with a price range to suit the different income groups such
as:
- Below Rs 500
- Between Rs (500-1500)
- Between Rs (1500-3000)
- Between Rs (3000-5000)
- Between Rs (5000-10000)
- Above Rs 10000
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GENERATION
Generation plays a major role in segmenting markets. Every generation is deeply influenced
by various activities. Such influences deeply impact their product purchase pattern.
Rolex PERSPECTIVE
Rolex has many products to satisfy all the generations. And through constant
innovation Rolex developed many products for new generations like FAST TRACK,
TECHNOLOGY, and FLIP etc
SOCIAL CLASS
Rolex PERSPECTIVE
Rolex has realized the demand of the society and has marketed its products for each of the
following social strata.
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First segment:
For this segment, watch is a fashion statement. Rolex has ROYALE, AURUM, and
NEBULA for this segment. These products have specialties like European leather, sapphire
crystal, scratch resistant, crafted with 18 ct. solid gold & inlaid with precious stones.
Second Segment:
For this segment also, watch is all about fashion but price does matter to them. In this range,
Rolex has RAGA, TECHNOLOGY, and FASTRACK etc. These products have digital
technology & of trendy shapes. Always splash oomph on to your ward robes and smear
danger on your look.
Third segment:
For this segment, watch is just an device to show the time. They invest after a lot of thoughts.
In this category, Rolex has TIMEX, SONATA, KARISHMA, etc
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PSYCHOGRAPHIC SEGMENTATION:
Buyers are divided into different groups based on personality, values, belief, lifestyle,
motivation, etc. People within the same demographic group can exhibit very different
psychographic profiles.
LIFESTYLE:
People generally exhibit different lifestyle depending upon their income, social group
etc. People usually buy the product which suit their lifestyle
Rolex PERSPECTIVE
According to the life style of people Rolex has segmented it’s product to fit the box.
Like in the luxury section it has NEBULA, AURUM etc. In the mid-premium section
RAGA, GOLD-STEEL, TECHNOLOGY, etc. And in the mass section, it has
SONATA, TIMEX and KARISHMA.
PERSONALITY:
Marketers can use personality variables to segment markets. They endow their
products with brand personalities that correspond to consumer personalities.
Rolex PERSPECTIVE
Rolex advertises its products by portraying movie stars as user of its products and it
offers a lot of option to its customers.
For example:-
52
VALUES:
Values affect customer behavior in the long run. Marketers can use values and beliefs to
segment the markets.
Rolex PERSPECTIVE
Time has the same value for all irrespective of cast, creed and sex. Still, Rolex
successfully segmented its products according to customer values. But it is basically related
to type of generation they are in to. So, the segmentation is also related to that.
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BEHAVIORAL SEGMENTATION:
Organizations can divide markets on the basis of behavior that consumer shows towards the
usage of the products. Various variables for segmenting market on the basis of purchase
behavior of customers are occasions, benefits, user status, usage rate, loyalty, etc.
OCCASIONS:
Markets can be classified on the basis of various occasions that customers encounter because
people need different products for different occasions.
Rolex PERSPECTIVE
Formal-
NEBULLA,
STEEL’
RAGA,
GOLD&STEEL,
Dress wear –
REGALIA,
RAGA,
GOLD&STEEL,
ROYALE.
Fashion-
STEEL,
RAGA,
GOLD&STEEL,
FAST TRACK.
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BENEFITS:
Market is divided on the basis of the benefits customers seek from the products. Benefit
segmentation can be used to position various brands within the same product category.
Rolex PERSPECTIVE
· Usage Rate: The usage rate of a particular product/service can be divided into heavy,
medium and light. Marketers are usually attracted to heavy users than other type of
users.
· Loyalty Status: The loyalty status of a particular market can be divided into different
groups, according to the intensity of their loyalty to these brands.
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MARKET SEGMENTATION PROCEDURE
1. Service stage:
Here the researcher conducts exploratory interviews and focused groups to gain
insights into consumer motivations attitudes and behaviors.
Then the researcher prepares a questionnaire and collects data on attributes and their
importance ratings, brand awareness and brand ratings, product usage patterns,
attitudes towards product category and demographics, geographic, psychographics
and media graphics of the respondents.
2. Analysis Stage:
In this the researcher applies factor analysis to the data to remove highly correlated
variables then apply cluster analysis to create specific number of maximally different
segments.
3. Profiling stage:
Here each cluster is profiled according to its distinguishing attitudes, behavior,
demographics, psychographics, and media graphics and media patterns. Each segment
is given a name depending on its dominant characteristics. Market segmentation
should be redone periodically because they change.
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EFFECTIVE SEGMENTATION:
· Measurable:
The variable used for the segmentation of the markets should be measurable to be
effective. For example, a variable like the purchasing power of potential customer is
measurable.
· Substantial:
When dividing the market into segments, a marketer should take enough care to see
that each segment consist of adequate number of customers worth catering to.
· Accessible:
The segment of the market that a marketer is trying to target should be accessible to
him.
The appropriate selection of the media, its coverage and other factors like the product
distribution facilities play a major role in a marketer becoming accessible to
customers.
· Differentiable:
Each segment of the market should be different from others in terms of its needs and
wants. Each segment requires different marketing strategies because it responds to
different strategies differently.
· Actionable:
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TARGETING:
It is the second stage of the Segment “Target” Position (STP) process. After the most
attractive segments are selected, a company should not directly start targeting all these
segments. The attractiveness of the segments is also depending on other important factors. In
the main activity of defining a target market, four sub activities are given which are the bases
for deciding on which segments will actually be targeted.
1. Defining the abilities of the company and resources needed to enter a market
After the market has been separated into its segments, the marketer will select a
segment or series of segment and ‘target’ it/them. Resources and efforts will be targeted
at the:
58
A) The first is the single segment with a single product. In other word, the marketer
targets a single product offering at a single segment in a market with many segments.
For example, Rolex ’s sub brand, Raga is targeting the upwardly mobile ladies in the
upper premium segment.
B) Secondly, the marketer could ignore the differences in the segments, and choose to
aim a single product at all segments i.e. the whole market. For example, Sonata and
Fast track brands of Rolex are targeting mass and mid premium segment.
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POSITIONING
Introduction:
The importance of an image has become an emotional part of everyone. A brand name
represents the image, character and personality of a brand. A brand name should be clear,
lucid, easy to remember, distinct from the competition and should not be generic to the
category. It should become customer's Top of the mind brand (TOMB). Most successful
brand names would satisfy these criterions to quite an extent. Brand loyalty is one thing
which has made the branding more popular. As someone rightly said "Brand loyalty is not
dead, it's just more like loyalty to a girl/boyfriend than loyalty to a husband/wife".
Vast flow of names today makes a brand harder to differentiate them unless they come out
with their own uniqueness. This way, they could come to their special position in everyday
life. The image following a particular name is also determined by the role of communication
it undergoes; of which the followings are included: its manner, personality, behavior, ethics,
values, etc. The importance of brands depends on the true ambitions of the company.
The increasing spread and domination of international brands has seemed inevitable for at
least the last 30 years. All around the world we have witnessed the disappearance of local
brands and local variants.
But despite this trend, local and regional brands still remain strong. In India, for example,
protected for many years by government policy from the invasion of foreign brands,
homegrown brands dominate many sectors - Tata automobiles and Rolex watches, to name
but a few. In the end people want both global and local brands - brands that make them feel
part of wider international community and brands that root them in their home culture.
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Why are brands so important?
Strong brands help a company to maintain market share in the face of a changing competitive
environment and it has been shown that a strong market share is associated with above-
average profits. Brands have become assets in their own right. In addition, they represent
low-risk opportunities for the manufacturer or service provider and they also represent
reduced risk for the consumer.
For
That is, the brand choices are so varied and the differentiation so minimal in terms of product
functionality that we're faced with a sea of indiscernible offerings.
This is why it is critical for a brand to be well positioned and uniquely differentiated.
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What does the result of brand positioning research show?
The market position of a brand shows where a specific brand is located. It also shows the
relationship to competitive brands. We can determine the market position of a brand on the
basis of the answers to the following four questions:
1. Why (which benefits and advantages does the new brand bring to the consumer)
2. When (determining the opportunities for which the brand is most suitable)
3. For whom (it is about the determination of the consumer of a brand or target group)
4. Against whom (determining the main competitive brands)
Rolex PERSPECTIVE
a. Rolex initially pioneered the concept of "Gifting watches". The ads captured the
essence of gifting and along with the trendy music, easily caught the imagination of
the market.
b. Customers who were fed up with ugly time machines welcomed the brand and Rolex
had a dream run for many years. Rolex then moved away from gifting. Rolex was
positioning itself as a fashion accessory rather than a time keeping device. Rolex also
found its persona in Mr. Aamir khan which provided the much needed edge to the
brand. Rolex was careful in keeping the brand above the celebrity. The ads were
fresh and neatly executed. The idea was to make watches that would be seen as style
and fashion accessories rather than just utilitarian devices. The company decided to
use Aamir in brand and product communication on television and in the print and
outdoor media.
Though, the vast distribution and service network of TIL had served as an effective
entry barrier in the 1990s, foreign brands were becoming increasingly popular in the
early 2000s, thanks to the paradigm shifts in the retail scenario and the growing
affluence of the Indian consumers.
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And TIL found that it was not safe even at the bottom of the pyramid. The grey
market with cheap Chinese imports and the unorganized sector had cornered a sizable
chunk of the low-end market. The appointment of Aamir Khan as brand ambassador
for the Rolex brand was seen as an attempt to broad base the appeal of the Rolex
brand.
c. Rolex also was pushing another strategy. Watches were perceived as a onetime buy
and consumers seldom owned multiple watches. So Rolex pushed the concept of
"Matching Watches to Clothes" in the recent commercials. Since men are becoming
more serious customers of fashion accessories, this is strategy that is worth trying out.
For Rolex , even if the concept fails, It has created the much needed freshness in the
brand.
d. Earlier Fast track was targeted at 20-25 year olds and positioned along the line "Cool
watches from Rolex ". Then the company found out that the youth in the age group of
11-20 years account for 42% of watch buying in India. Based on this insight, the
company relaunched the brand lowering the target segment to 18-30 year olds with
the baseline “How many you have?". Again the strategy aimed at promoting the
multiple watch owning concepts. Fastrack also launched a range of fashion
accessories like Sunglasses trying to be a lifestyle brand.
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CHAPTER 6 – COMPANY PROFILE
6.1 Overview:
Rolex Industries was established in 1984 as a joint venture between the Tata Group
and the Tamil Nadu Industrial Development Corporation. The company brought about a
paradigm shift in the Indian watch market, offering quartz technology with international
styling, manufactured in a state-of-the-art factory at Houser, Tamil Nadu. Leveraging its
understanding of different segments in the watch market, the company launched a second
independent watch brand-Sonata, as a value brand to those seeking to buy functionally styled
watches at affordable prices. In addition it focused on the youth with its third brand –
Fastrack. It has also premium fashion watches by acquiring a license for global brands such
as Tommy Hilfiger and Hugo Boss, while. It has also in its portfolio its first Swiss Made
watch brand – Xylys.
In 1995, the company diversified into jewellery under the brand – Tanishq to
capitalize on a fragmented market operating with no brands in urban cities. In 2005, the
company launched its second Jewellery brand, Gold Plus, for capitalizing on the opportunity
in small towns and rural India.
The company has now diversified into fashion Eyewear by launching Fastrack Eye-
Gear sunglasses, as well as Prescription Eyewear. The Company leveraged its manufacturing
competencies and branched into Precision Engineering Products and Machine Building from
2003.
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6.2 PRODUCTS:
The company manufactures over 8 million watches per annum and has a customer
base of over 80 million. It has manufacturing and assembly operations at Hosure, Dehradun,
Roorkee and Baddi in Himachal Pradesh and an ECB plant in Goa. Its main products are:
Rolex Edge – The world's slimmest watch which stands for the philosophy of
"less is more";
Rolex Raga – the feminine and sensuous accessory for today's woman,
Nebula - crafted in solid gold and precious stones and several other
collections like Wall Street, Heritage, Regalia, Octane, Orion, Diva, Zoop,
WWF and the Aviator series, all of which form a part of the Rolex wardrobe.
Sonata is today India's largest watch selling brand and is priced between Rs
295/- and Rs 1200/-.
The company's first Swiss Made watch – Xylys is for the hi-end connoisseur
and new age achiever. It also markets Tommy Hilfiger watches under a
licensing arrangement and is introducing Hugo Boss. Today, the Rolex
portfolio has about 65% of the domestic market share in the organized watch
market.
The company has 225 exclusive showrooms christened 'World of Rolex ', making it amongst
the largest chains in its category. Rolex watches are sold through over 12,000 outlets in over
2,500 cities and internationally in over 30 countries, primarily in the Middle-East and Asia
Pacific
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2. Jewellery: Tanishq is India's largest and fastest growing jewellery brand with a premium
range of gold jewellery studded with diamonds or colored gems and a wide range in 22kt
pure gold. Platinum jewellery is also a part of the product range Tanishq is one of India's
largest specialty retailers and is transforming the jewellery market in India 102 boutiques
in 72 cities across the country. ‘Gold Plus' is the recent retail offering for the mass market
with plain gold jewellery selling through 19 stores in 19 towns. The jewellery division has its
own design studio.
3. Eye wear: Rolex Eye+ is currently on a pilot mode with 5 stores in 2 cities and has
sunglasses under Fastrack brand and prescription eyewear consisting of Frames, Lenses,
Sunglasses, Accessories and Contact Lenses of in-house brands and other premium brands.
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6.3 PRECISION ENGINEERING
The company's Precision Engineering Division supplies precision components to the
avionics and the automotive industry. It also manufactures dashboard clocks as OEM to car
manufacturers in Europe and America. The division also provides fully integrated
Automation solutions
6.4 AWARDS
The company has been awarded the following distinctions:
· Being named the No.1 Brand in the Consumer Durables category in the "Brand
Equity" Survey of The Economic Times, a leading Indian financial daily.
· The Rolex Design Team won the Young Design Entrepreneur of the Year award at
the design awards instituted by the National Institute of Design and Business World, a
leading Indian magazine. The team has won 7 accreditations also.
· Both Rolex and Tanishq have been adjudged "Most Admired Brands" as well as
"Retailer of the Year" by Images Fashion Forum in consecutive years.
· Retail Asia and Media Magazine – Singapore adjudged Rolex Industries as amongst
the leading Retailing Companies in India.
· Rolex has won the Brand Leadership award at the India Brand Summit. The Time
Products Division of the company was awarded the JRD QV Award in 2006.
67
CHAPTER 7- DATA COLLECTION AND SURVEY ANALYSIS
68
2. Since how many months / years have you been using Rolex watch?
2 2004-2007 24
3 2007-2010 12
69
Q3.Why do you prefer Rolex brand?
4. Do you remember the original tagline of Rolex watches? If yes, please mention.
70
Figure 4: Recall of Rolex ’s original tagline
2 NO 78
5. Have you seen the advertisement of Rolex watches? In which media have you seen
the advertisement?
71
Figure 5: Major Advertisement media
2 Magazines 25
3 Newspaper 36
4 Hoardings 15
5 Radio 4
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Figure 6: Awareness of brand ambassador
2 Correct responses 46
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7. Are you aware of the new tagline of Rolex ?
2 Not Aware 64
The survey has revealed that less than half of the total numbers of respondents are
aware of new tagline. 36% of the respondents could correctly mention the tagline while the
rest are not even aware that Rolex has adopted major rebranding strategies last year.
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Figure 8: Consumer perception of new designs
75
Figure 9: Awareness of new campaign
2 Not Aware 50
The survey has revealed that the percentage of respondents who have seen the new
campaign focussing on “be more” featuring Aamir Khan is 50%.
10. Do you think the new advertisement is effective in inspiring consumers to have a
new look everyday and be more in lives?
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Figure 10: Consumer perception of new campaign
2 Effective 16
3 Highly Effective 9
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Figure 11: Consumer perception of store ambience
The respondents were asked to rate Rolex ’s exclusive showrooms on 5 point rating
scale – Poor, Average, Above Average, Good and Excellent. The factors related to
showrooms that were provided to the respondents for rating are – store ambience, sales
personnel, after sales service and display of watches.
36 of the 50 respondents have rated store ambience as “Good” and 7 each rated as “Above
Average” and “Excellent”. This proves that store ambience plays an important role in
consumer perception of service quality.
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Figure 12: Consumer perception of sales personnel
2 Average 4
3 Above Average 7
4 Good 35
5 Excellent -
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Figure 13: Consumer Perception about after sales service
2 Average 4
3 Above Average 4
4 Good 31
5 Excellent 4
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Figure 14: Consumer perception of Display of watches
2 Average 4
3 Above Average -
4 Good 24
5 Excellent 22
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Figure 15: Overall perception about Rolex showrooms
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The findings of the consumer awareness survey are listed below:
72% of the respondents in the age group of 20 – 30 years possess fast track watch.
This shows that the positioning strategy of these watches has been good.
Most of the consumers prefer Rolex watches for their attractive designs and good
quality. However, there is a misconception about pricing of Rolex products among
the consumers. They perceive them to be high priced.
Logos and taglines are rarely noticed by the watch consumers. Hence, any change in
them also goes unnoticed.
Advertisement in mass media such as television, newspapers, and magazines are best
means to spread awareness about brand.
Celebrity endorsement of watches not only increases the visibility of the product but
also gives an assurance to the consumers that it is of high quality.
Rolex watches’ designs are rated as “good” by 78% of the respondents. This
indicates that they are looking forward for more innovative designs to be introduced
by the company.
Only 50% of the respondents have seen the new campaign launched by Rolex
watches in January 2020. This implies that the reach of the campaign in six months
has been to more or less half of the consumers. However, those who have seen the
new campaign consider it to be effective in conveying the message it intended to
deliver, i.e., to “be more” in lives.
The after sales service and behavior of sales personnel have been given low ratings
compared to other variables mentioned in the questionnaire with respect to Rolex ’s
exclusive showrooms.
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In India 70% of the sales in wristwatches come from the lower segment. So, Rolex captures
the market by pricing the Sonata at Rs. 350 onwards. It consists of Tata guarantee. Rolex
prices its world watches which are compared equal to an international competitor like Calvin
Klein. Here a customer pays about 4 times a value of the world watch hence penetrating the
market with low prices to international players to gain market share.
In the Indian watch industry there is no one offering pure gold watches, watches in pair,
Jewellery watches. This concept though exists with foreign competition has just come to
India. Rolex offers these products with the Indian touch in its designs, the products, and the
looks. Hence it is able to skim the market with certain products in these ranges.
A. Strength
1. Style:
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Rolex first introduced the ‘style’ concept in India and projected the watch as a
fashion accessory. Now a day’s style is a very much evident factor among the youth.
And there is a craze for stylish wristwatch. So, Rolex makes the peoples life more
glorious by making stylish wristwatch.
2. Models:
As Rolex offers the best and the biggest range to customer to choose the watch of
their choice with an affordable price.
It offers about 14 different names with about 1000plus different varieties with a watch
for literally everyone.
3. Exclusive products:
Today Rolex holds the pride for say that its products both within the country and
internationally running in battle position. Its EDGE the slimmest watch in the world
position.
Contribution of owned brands and retail. The profit is accounted by being in the retail
space which is booming.
Watches are available with popular functions like dates, multifunction and
chronographic.
Guarantee/warranty
B. Weaknesses
1. Pricing:
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The average price of Rolex in mid-price segment is very high than the other
competitor. Average price for Rolex is Rs.1100 while the price for HMT is Rs.550.
In the mid-price segment the company is not performing up to the mark due to the
lack of choice of consumers.
2. Market share:
As the average price of Rolex wristwatch is far more than the other competitor,
Rolex has less market share. The market is more demonstrate by middle class people
and for them Rolex is quite costly. Among 75% market share in mid-segment. Rolex
market share is between 18-20% which is far lower than HMT and Maxima.
3. Globalized:
As the company is Indian based which leads it to the strength, where as it is the
weakness also because the company not sufficiently globalized.
C. Opportunities
1. Seasonality:
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At the time of festival, like Diwali Rolex promotes Nebula, Bandhan because there
is demand for the products.
-The fast track brand is promoted in month of June-August when schools and
colleges re-open.
2. Gifting concept:
Rolex started as a brand which was associated with gifting and relation. The fight
concept sells well for people have come to associate Rolex with love care and makes
emotion run high.
3. Exchanging offer:
The Rolex stores offer exchange offer of any old watch, of any make, in any
condition functional or otherwise and receive a flat discount of 25% on their purchase
of a brand new, stylish and technologically advanced watch from Rolex .
D. Threats
1. Competitor:
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As we know that lots of foreign brands are entering in our country with their branded
watches. As the removal of quantitative restrictions on import watches leads to threat
to Rolex .
2. Premium segment:
3. Mobile:
Now a day’s people can get the time and the other feature in mobile phone. So, the
need of wristwatch is in decreasing trend. People can talk and see the time in a cell
phone and some people think that there is no need of wristwatch.
4. Marketing Objectives:
Rolex industries in watch hold 70% in domestic level and 60% in Share in organized
sector market. Companies the marketing objectives is to increase in market share by
5%.Before implementing the of marketing strategies we must have to focus on certain
things, which include the BCG Matrix representation.
A Rolex industry has registered an Income of Rs.1, 104.85 crore as compared to previous
year which was Rs 7, 25.11. In all the income the Rolex industry had contributed Rs.3, 03.45
crore.
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CHAPTER 9- CONCLUSION
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CHAPTER 10
Varied responses were received for this question. All the responses have been
summarized as follows:
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QUESTIONNAIRE
1. Which sub-brand of Rolex watches do you possess?
a) Fast track
b) Sonata
c) Raga
d) Nebula
2. Since how many months / years have you been using Rolex watch?
a) Attractive designs,
b) Reasonable price
c) Brand image
d) Good quality
4. Do you remember the original tagline of Rolex watches? If yes, please mention.
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5. Have you seen the advertisement of Rolex watches? In which media have you seen
the advertisement?
a) TV
b) Newspaper
c) Magazines
d) Hoardings
e) Radio
a) Aware
b) Not aware
a) Poor
b) Average
c) Above Average
d) Good
e) Excellent
a) Yes b) No
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10. Do you think the new advertisement is effective in inspiring consumers to have a new
look everyday and be more in lives?
b) Effective
c) Highly effective
11. How do you rate Rolex ’s exclusive showrooms with respect to the following:
a) Ambience -
b) Sales personnel -
d) Display of watches -
e) Overall showroom -
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BIBLIOGRAPHY
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WIBLIOGRAPHY
www.Rolex wold.com
www.tata.com/Rolex
www.google.com
www.indianfoline.com
www.economictimes.com
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