Rolex Business Report
The report sets to analyze the market of Rolex Luxury watches in the United Arab Emirates. It discusses background information of Rolex Company, market description, market segmentation, and marketing opportunities available in the United Arab Emirates. The luxury watch industry expects to benefit from the fact that the UAE is a country, which most tourists choose as their shopping destination. This may thus lead to an increase in sales. The report also seeks to analyze individual views about Rolex luxury watches.
Background Information of Rolex Company
The company was founded by Hans Wilsdorf in London and specializes in making watches. In the 1920s Rolex Watch Company made diamond watches, which were fitted with straps made of silk. The watches looked so unique. They were known as Deco Diamond Rolex. In 1926 the Company developed the first waterproof watch, which was known as Oyster. The watch was also dustproof. Since then the company has developed a lot of lines of watches with various features. These lines include the Rolex Prince, Everest, Explorer, and Submariner among others. Rolex manufactures the most luxurious watches in the world (Haig, 2006).
Rolex Company is known all over the world because of its luxurious products. The company has 4,000 watchmakers in 100 countries. The weakness of the company is that its watches are very expensive so that only rich people can afford them. Another weakness is that the youth uses majorly cell phones to tell time. In the past years watches were valued but in the recent years people do not value watches so much. Finally, the company produces a large number of watches. This makes those who buy watches not feel unique since the watches become common (Haig, 2006).
The opportunities of the company include using the social media to market its brands. Another opportunity is to create awareness among the youth on the value of watches. Rolex can also produce limited editions that will make its customers feel exceptional. The threats facing the company are the development of fake products. China has a lot of companies, which develop fake watches. Rolex is also threatened by other companies, which develop luxurious watches. The companies include Dubuis, Omega, and Roger among others.
According to the Federation of the Swiss watch industry, Swiss watches are very popular in the UAE. All the major brands of luxury watches are found in the UAE. The watches are found in the leading shopping malls and boutiques (Haig, 2006). The majority of tourists that buy a lot of these watches mostly comprises of Chinese and Russians. The luxury watch industry expects to benefit from the fact that the UAE is a country, which most tourists choose as their shopping destination. This may thus lead to an increase in sales. Most tourists bring watches as the luxury gift to their loved ones back at home.
The United Arab Emirates has a lot of tourist attractions, which include Emirates Palace, Dubai Desert Conservation Reserve, and Saadiyat Island among others. The UAE therefore attracts a lot of rich people from all over the world. This is the reason why Rolex Company targets rich people to buy their luxury watches. These rich people mainly consist of men over the age of 35 years (Negretti, 2008). The products are developed for the people who want to feel unique and show that they are wealthy. O fficial distributor of Role for UAE is family owned store “Ahmed Seddiqi & Sons”. Rolex was the first big brand for the company in 1952, followed by many others that still remain within the family firm’s portfolio today: Patek Philippe, Chopard, Harry Winston, Audemars Piguet, Hublot, Tag Heuer and Baume et Mercier. (Ghazal, 2014)
The major target segments are tourists who come from all over the world and choose the UAE as their shopping destination. The tourists comprise of Chinese and Russians who buy luxury watches as gifts for their loved ones back at home. The company also targets male customers who are between 21-35 years and live in the UAE. Most of these customers are people who recently got a job and want to show off. This group buys expensive suits and shoes and they also need a Rolex watch to look exceptional (Chevalier, Xiao Lu, and Toledano, 2010). Nevertheless, they do not appreciate watches because they mostly use cell phones to tell time.
Another market segment is that of grandparents and parents. They are 40 years and above and buy watches as gifts for their children who are graduating from colleges (Dowling, 2006). This group knows the value of high quality watches. One more target segment is the youth who currently do not value watches and use their cell phones to tell time. The company can create awareness of the youth on the importance of watches.
The opportunities of the Company include developing a media campaign to increase sales. They can make use of the social sites such as face book and twitter. They can chat with customers and potential customers at these sites. In the current society many people are found on social media, especially the young generation. The Company can take advantage of this and educate the youth on the value of having a Watch.
The marketing mix of the Rolex Watch Company is very unique and strategic. It is has been very useful for marketers. When a Company makes use of these controllable tools, they become assured that they will succeed like Rolex have done. (Thoughts about Sales, Training, Technology, and Management, 2014)
Application of marketing mix
In marketing, the company tries to identify the needs of its customers and satisfies these needs. The elements used in developing a marketing plan include the four P’s: product, price, promotion, and place. In making its watches, Rolex Company tries to be accurate in order to meet the customers’ needs. The company is very innovative and unique when making its watches.
In pricing its products, Rolex Company does not consider prices of its competitors. The company sets its prices for other companies to follow. The prices are set high to ensure that the buyers belong to the rich class. The company does not give discounts to customers. Customers are willing to pay more so there is no need of giving discounts.
Rolex does not do promotions on television or radio because such kind of advertisements is not targeted to such markets. They advertise on functions, such as Rolex Sports Car Series and the Rolex 24 At Daytona. These places attract the rich car owners who are the target customers of Rolex. The Company also advertises in golf and yachting functions. Such places attract rich people who can afford Rolex watches. Promotions conducted by the company show that the company is a luxurious brand. Race cars and big yachts are shown as they race and it reveals that their owners are wealthy (Dowling, 2006).
Rolex Company has few jewelry stores that distribute its products in the UAE. An example is the Ahmed Seddiqi and Sons Rolex Boutique. The products are limited to ensure that they remain luxurious and unique. The stores distributing their products are located in big towns.
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Rolex Company does not conduct online sales. Its website has information on the location of its dealers but there is no a possibility of buying online. Other dealers sell their production online.
Rolex watches in the United Arab Emirates
The country has a lot of tourist attractions thus it attracts a lot of tourist from all over the world. Most tourists choose the United Arab Emirates as their shopping destination. This is an opportunity that the Rolex Company can take an advantage of since most tourists belong to the rich class, which Rolex Company targets. Rolex watches are sold in the United Arab Emirates in all models of the brand at exceptional prices. The watches are durable and unique and they are the most preferred by rich people of Dubai. The watches are also popular among ladies and gentlemen who love unique design. Such models of Rolex watches as Rolex Explorer, Rolex Oyster Perpetual, Rolex Daytona, and Rolex Submariner among others are very popular in the leading stores of the United Arab Emirates. In the UAE the luxury brand watches are sold online by dealers. The customer places his order online then the watch is delivered to his house. He pays cash on delivery (Negretti, 2008).
In this era, doing a survey is important to examine how people in UAE react on product like Rolex. From the survey we can figure out percentage of people using Rolex, their personal opinion about the price, availability in UAE, quality etc.
For the research there were chosen 30 tourists to interview on their view about Rolex watches in the United Arab Emirates. These were people of upper class and dealers who sale the Rolex watches in the United Arab Emirates. The questionnaire was designed to help in data collection the following charts show the data collected on 30 tourists and shop dealers.
|Non Rolex customers
Fig 1 shows the number of people who are Rolex customers
Fig 2. Number of individuals satisfied with the quality of watches
|Not easily accessible
Fig 3. Accessibility of Rolex Watches in UAE
Fig 4. Materials preferred on Rolex Watches
Fig 5. The metals preferred to make Watches.
Fig 6. The various ways in which a customer had of Rolex Company in UAE
According to the survey, people described the watches as unique and perfect. 19 of the individuals interviewed were very satisfied with watch. Most of them liked the metal and material, the watch was made of. The Rolex Company is the most searched luxury watch Company all over the world. The report below shows the most searched watches of Rolex Company in the world:
Figure 7: Top ten most searched watches in the world
In 2012 Sea Master became the most searched Watch all over the world, followed by Submariner then Daytona. Rolex watches dominated the top ten lists of the most searched watches. It can thus be since that many individuals prefer Rolex Luxury brands than other brands. According to the survey in UAE, Rolex Watches remain the most preferred luxury brands and most of the individual find them to be very unique and of high quality. Most customers prefer metal to be used in making watches and most of them like Gold. The Rolex watches cannot be easily assessed in UAE and are found in leading shops.
The work has analyzed the market of Rolex watches in the United Arab Emirates. It can be seen that Rolex Company has maintained its status as the leading luxury brand. The watches are also popular among the ladies and gentlemen who love unique designs. Such models of Rolex as Rolex Oyster Perpetual, Rolex Explorer, Rolex Daytona, and Rolex Submariner among others are found in the leading stores of the United Arab Emirates. In the UAE the luxury brand watches are sold online by dealers. The customer places his order online then the watch is delivered to his house.
The country has a lot of tourist attractions thus it attracts a lot of tourists from all over the world. Most tourists choose the United Arab Emirates as their shopping destination. This is an opportunity that the Rolex Company can take an advantage of since most tourists belong to the rich class, which Rolex Company targets. Other opportunities of the company include the use of the social media to market its lines. Another opportunity is to create awareness among the youth as to the value of watches. In marketing, the company tries to identify the needs of its customers and satisfies their needs. The elements used in developing a marketing plan include four P’s: product, price, promotion, and place. In making its watches, Rolex Company tries to be accurate in order to meet the customers’ needs. The company is very innovative and unique when making its watches. The Rolex Company should also embrace social media marketing in Facebook and twitter since a large percentage of people in the world is found in the social media. Besides, advertising in the social media is less costly.