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1 | P a g e SRH Hochschule Heidelberg – International Business & Engineering
Rolex Market Analysis
Presented by:
 Mr. Maniyar Siddharth
 Mr. Natoo Mandar
 Mr. Phadke Sumit
2 | P a g e SRH Hochschule Heidelberg – International Business & Engineering
 Contents :
Sr. No. Content Page No.
1. Introduction 03
2. The Market 04
3. Portfolio 05
4. Revenue & Tendency of Market Growth 06
5. Target group 07
6. SWOT Analysis 09
7. Conclusion 11
8. Reference 12
3 | P a g e SRH Hochschule Heidelberg – International Business & Engineering
Introduction:
Rolex is one of the leading global wrist watch manufacturing brand. It has long history of
inventions in the field of watch manufacturing. This company manufactures watches mostly
using precious metal like gold, silver and platinum to extreme precision and accuracy. Rolex
has 2800 employees. It produces maximum COSC certified watches than any other competitor.
Rolex has their presence in almost 116 countries all over the globe having 28 affiliates. Rolex
is very closely associated with sports like golf and tennis making their brand image much
bigger than other competitors.
This case study basically analyses current market of Rolex considering their market share,
product basket, technology and existing customers. Based on this analysis the case study
recommends few strategies that will further improve Rolex Sales and Business. During case
study we have used basic concepts of market analysis like SWOT analysis, sinus milieus.
4 | P a g e SRH Hochschule Heidelberg – International Business & Engineering
The Market:
Rolex has chosen market segment based on buyer’s income. This is premium watch
manufacturing company having presence in retail consumer market. Their watches are
affordable to only limited part of society. It has strong presence in 116 countries which not
only includes developed countries like USA, Germany, England but also developing countries
like India, China, Brazil making them global brand in true sense. Rolex manufactures
traditional watches in limited models those are classic & elegant. In this sense they believe
more in seller’s market philosophy.
 Rolex is benchmark in their segment of watches considering technology; but due to
globalization they have got few competitors in markets like Omega, Tag Heuer, Louis
Cartier and Breitling mainly because of price. This price competition basically arises due
to markets in developing countries where buyer is concerned not only about technology
but prices also.
http://www.wthejournal.com/images/pages/EN_Graph8_1.jpg http://www.wthejournal.com/images/pages/EN_Graph4_1.jpg
(pie chart- 1) (pie chart-2)
According to histogram rolex has highest number of COSC certified movements compare to
other compititors . Hence it is evident that they are far better in term of quality and technology
than competitors . On the other hand the pie chart shows that they have only 11.8% Market
share assuming that all manufactured Watches are sold. This share is not significant in global
market . This is due to the fact that their competitors have better product range which covers
watches with low prices to high prices . Hence they are able to serve more customers than
rolex.
Rolex is expanding their market. They have Revenue of $8.3B as of May 2015. They are
marketing their product with the help of their quality & avant garde technology. Also they are
official timekeepers of very popular tournaments of tennis & golf. With this tournaments &
brand ambessodors like Roger Fedrer they are attracting more customers to buy their product.
5 | P a g e SRH Hochschule Heidelberg – International Business & Engineering
Portfolio-
Sr.
No. Model
1  Air-King
2  Air-King-Date available for 1988
3  Date
4  Oyster Perpetual
5  Date just
6  Date just II
7  Date just Turn-O-Graph
8  Lady Date just Pearl master
9  Daytona
10  Day-Date
11  Day-Date II
12  Day-Date Oyster Perpetual
13  Explorer
14  Explorer II
15  GMT Master II
16  Masterpiece
17  Milgauss
18  Oyster quartz
19  Sea Dweller
20  Sea Dweller Deep Sea
21  Sky-Dweller
22  Submariner
23  Turn-O-Graph
24  Yacht-Master
25  Yacht-Master II
6 | P a g e SRH Hochschule Heidelberg – International Business & Engineering
Revenue & Tendency of Market Growth:
From the graph it is evident that there is continuous increase in the business of Rolex. In 4
years their business has almost increased by 124%. The tendency of market growth of Rolex
is always in upward direction.
http://www.forbes.com/companies/rolex/
Sr. No. Year % increase in Revenue
1 2012-2013 27.02%
2 2013-2014 57.44%
3 2014-2015 12.6%
From year 2012-13 the revenue has increased by 27%, then in 2014 it is further increased by
57% this is mainly because of high demand for their products in Asian market. From 2014-15
may be due to global economic recession the growth of revenue was only 12.6%.They suffered
major loss in Asian market. Despite of this fact Rolex is able to generate revenue more than
previous year.
Demand:
Rolex is most popular wrist watch brand all over the world. Their market in developed
countries is well established. Additionally the buying power of consumer in developing
countries is increasing nowadays. Hence Rolex products have got high demand in developing
countries like China and India. The resalable value of these watches is also high. Manufactured
quantity of these watches is not adequate to cater for increased demand. Hence demand is
further increasing.
3.7
4.7
7.4
8.3
0
1
2
3
4
5
6
7
8
9
2012 2013 2014 2015
RevenueinBillion$
Year
7 | P a g e SRH Hochschule Heidelberg – International Business & Engineering
Target group:
Rolex targeted consumers based on income and product application. Their watches are mainly
for people with high income who look for traditional aesthetics. Also they manufactures
watches for critical applications like for using them in deepest oceans and highest mountains.
Also the age group of customers is mostly above 40. This target group includes business people,
sport persons, astronauts, deep sea divers and alpinists. These watches are meant for men in
most of the cases. They have very limited variety in Women segment.
8 | P a g e SRH Hochschule Heidelberg – International Business & Engineering
From sinus milieu diagram above we can say that typical target group of Rolex is:
1. Established Conservative milieu:
This milieu covers very successful rich people in the field of business, sports etc. these
people tend to use traditional yet elegant watches. Since Rolex’s inception this has been
main focused consumer’s group.
2. Liberal Intellectual milieu:
This milieu includes highly educated individuals who are self-determined & therefore
are concerned more about product quality & technology than price. Rolex stands high
on these aspects.
3. High achiever milieu:
This milieu covers individuals who are techno savvy, Professionals who are at top level
in organization and would prefer to have proven brand. So Rolex exactly fits their bill.
4. New middle class milieu:
These are middle class consumers who are striving to become established professionals
& trying to have a status which is socially well acceptable. This class particularly
represents consumers from developing countries like China & India who are
increasingly concerned about brand of a particular product.
The Marketing:
Looking at the brand Rolex one can predict the biggest company capturing &
influencing entire global market with its wide product range which are benchmark with
their quality & technology.
Considering above expectations Rolex stands tall on its quality & technology. But when
it comes to product range they have very limited variants & less focus on women
watches segment making them bit lagging in global market. Also prices are exorbitantly
high.
9 | P a g e SRH Hochschule Heidelberg – International Business & Engineering
SWOT Analysis:
Strength:
 Brand Image: Rolex is most renounced brand in the field of wrist watches over
past few decade.
 Quality: Rolex manufactures highest number of COSC certified watches than
any other competitor.
 Technology: Rolex has many patented technologies like Oyster Case, Winding
crown, Cyclops Lens etc.
 Products for critical application: The manufacture watches for deep sea
applications, high altitude applications with extreme accuracy and durability
 Close association with sports like golf & tennis.
Weakness:
 Price: These watches have extremely high price which can’t be affordable to
common consumer.
 Limited variants: Their product basket is limited with traditional look.
 Limited variants for Women: Rolex has manufactured only one series for
women.
 Product type: Rolex manufactures only analog watches and not digital ones
therefore losing buyers’ market of digital watches.
Opportunities:
 New segment: Manufacturing of digital watches.
 New target group: Target young generation and launch suitable products,
watches for women.
 Price: Use alternate material and outsourcing of some components could reduce
price of watches.
 Demand: Demand for Rolex watches is increasing at higher rate compared to
manufacturing rate.
Threats:
 Mobiles: Due to multi functionality of mobiles consumers are giving less
priority to watches.
 Competitors: Rolex faces intense competition in various regions from local
competitors.
 Recession: Due to Economic crisis people are spending less on secondary
needs.
 Grey Market: Imitations at lower price affect the brand image and intern the
sales of product.
10 | P a g e SRH Hochschule Heidelberg – International Business & Engineering
Opportunities Threats
New segment Mobiles
SWOT Analysis : New target group Competitors
Price Recession
Demand Gray Market
Strategies
Strength
Brand Image
use alternate
material for low
cost products
maintaining the
status throughout
according to
brand image
Quality
Technology
start
manufacturing
digital watches
Periodic R&D to
be at par with the
latest
development so
as to be always a
step ahead with
competitors
Products for critical application
Launch smart
watches
Close association with sports like golf &
tennis
Weakness
Price
Launch low price
version in specific
geographical
market
efficient buy back
policy to
minimize grey
market
Limited variants
Limited variants for Women
outsource some
components to
reduce price
Product type
Expand product
basket for women
watches
Low manufacturing capacity
Increase
manufacturing
capacity to cope
up with increased
demands
11 | P a g e SRH Hochschule Heidelberg – International Business & Engineering
Conclusion:
Based on market analysis & subsequently emerged strategies we have come up with
following salient points:
 The Rolex has been successful in maintaining their brand image as one of the
leading manufacturing watch makers in the global market throughout these
years.
 There is scope for further improvement with application of some strategies. Out
of all immerged strategies we have come up with most prominent strategies as
per following :
a) Introduction of new product segment which would include watches for
women as well as digital sport watches: this strategy will require minimum
investment as they are already equipped with technology.
b) To counter forfeit & grey market introduction of efficient buyback policy:
watches will be available for lower price and would open opportunity for
new target group.
c) To tackle competition in local market Rolex can outsource some
components of watch assembly to reduce final product cost & enter
relatively low price market.
 With these strategies Rolex will be able to cover adaptive pragmatist milieu
while maintaining their original target groups.
12 | P a g e SRH Hochschule Heidelberg – International Business & Engineering
Reference:
1. https://en.wikipedia.org/wiki/Rolex
2. http://www.chase-hattan.com/blogs/news/17780980-rolex-watches-demand-and-
supply
3. http://www.forbes.com/companies/rolex/
4. http://www.wthejournal.com/images/pages/EN_Graph8_1.jpg (pie chart -1)
5. http://www.wthejournal.com/images/pages/EN_Graph4_1.jpg (pie chart-2)
6. www.rolex.com

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Rolex report

  • 1. 1 | P a g e SRH Hochschule Heidelberg – International Business & Engineering Rolex Market Analysis Presented by:  Mr. Maniyar Siddharth  Mr. Natoo Mandar  Mr. Phadke Sumit
  • 2. 2 | P a g e SRH Hochschule Heidelberg – International Business & Engineering  Contents : Sr. No. Content Page No. 1. Introduction 03 2. The Market 04 3. Portfolio 05 4. Revenue & Tendency of Market Growth 06 5. Target group 07 6. SWOT Analysis 09 7. Conclusion 11 8. Reference 12
  • 3. 3 | P a g e SRH Hochschule Heidelberg – International Business & Engineering Introduction: Rolex is one of the leading global wrist watch manufacturing brand. It has long history of inventions in the field of watch manufacturing. This company manufactures watches mostly using precious metal like gold, silver and platinum to extreme precision and accuracy. Rolex has 2800 employees. It produces maximum COSC certified watches than any other competitor. Rolex has their presence in almost 116 countries all over the globe having 28 affiliates. Rolex is very closely associated with sports like golf and tennis making their brand image much bigger than other competitors. This case study basically analyses current market of Rolex considering their market share, product basket, technology and existing customers. Based on this analysis the case study recommends few strategies that will further improve Rolex Sales and Business. During case study we have used basic concepts of market analysis like SWOT analysis, sinus milieus.
  • 4. 4 | P a g e SRH Hochschule Heidelberg – International Business & Engineering The Market: Rolex has chosen market segment based on buyer’s income. This is premium watch manufacturing company having presence in retail consumer market. Their watches are affordable to only limited part of society. It has strong presence in 116 countries which not only includes developed countries like USA, Germany, England but also developing countries like India, China, Brazil making them global brand in true sense. Rolex manufactures traditional watches in limited models those are classic & elegant. In this sense they believe more in seller’s market philosophy.  Rolex is benchmark in their segment of watches considering technology; but due to globalization they have got few competitors in markets like Omega, Tag Heuer, Louis Cartier and Breitling mainly because of price. This price competition basically arises due to markets in developing countries where buyer is concerned not only about technology but prices also. http://www.wthejournal.com/images/pages/EN_Graph8_1.jpg http://www.wthejournal.com/images/pages/EN_Graph4_1.jpg (pie chart- 1) (pie chart-2) According to histogram rolex has highest number of COSC certified movements compare to other compititors . Hence it is evident that they are far better in term of quality and technology than competitors . On the other hand the pie chart shows that they have only 11.8% Market share assuming that all manufactured Watches are sold. This share is not significant in global market . This is due to the fact that their competitors have better product range which covers watches with low prices to high prices . Hence they are able to serve more customers than rolex. Rolex is expanding their market. They have Revenue of $8.3B as of May 2015. They are marketing their product with the help of their quality & avant garde technology. Also they are official timekeepers of very popular tournaments of tennis & golf. With this tournaments & brand ambessodors like Roger Fedrer they are attracting more customers to buy their product.
  • 5. 5 | P a g e SRH Hochschule Heidelberg – International Business & Engineering Portfolio- Sr. No. Model 1  Air-King 2  Air-King-Date available for 1988 3  Date 4  Oyster Perpetual 5  Date just 6  Date just II 7  Date just Turn-O-Graph 8  Lady Date just Pearl master 9  Daytona 10  Day-Date 11  Day-Date II 12  Day-Date Oyster Perpetual 13  Explorer 14  Explorer II 15  GMT Master II 16  Masterpiece 17  Milgauss 18  Oyster quartz 19  Sea Dweller 20  Sea Dweller Deep Sea 21  Sky-Dweller 22  Submariner 23  Turn-O-Graph 24  Yacht-Master 25  Yacht-Master II
  • 6. 6 | P a g e SRH Hochschule Heidelberg – International Business & Engineering Revenue & Tendency of Market Growth: From the graph it is evident that there is continuous increase in the business of Rolex. In 4 years their business has almost increased by 124%. The tendency of market growth of Rolex is always in upward direction. http://www.forbes.com/companies/rolex/ Sr. No. Year % increase in Revenue 1 2012-2013 27.02% 2 2013-2014 57.44% 3 2014-2015 12.6% From year 2012-13 the revenue has increased by 27%, then in 2014 it is further increased by 57% this is mainly because of high demand for their products in Asian market. From 2014-15 may be due to global economic recession the growth of revenue was only 12.6%.They suffered major loss in Asian market. Despite of this fact Rolex is able to generate revenue more than previous year. Demand: Rolex is most popular wrist watch brand all over the world. Their market in developed countries is well established. Additionally the buying power of consumer in developing countries is increasing nowadays. Hence Rolex products have got high demand in developing countries like China and India. The resalable value of these watches is also high. Manufactured quantity of these watches is not adequate to cater for increased demand. Hence demand is further increasing. 3.7 4.7 7.4 8.3 0 1 2 3 4 5 6 7 8 9 2012 2013 2014 2015 RevenueinBillion$ Year
  • 7. 7 | P a g e SRH Hochschule Heidelberg – International Business & Engineering Target group: Rolex targeted consumers based on income and product application. Their watches are mainly for people with high income who look for traditional aesthetics. Also they manufactures watches for critical applications like for using them in deepest oceans and highest mountains. Also the age group of customers is mostly above 40. This target group includes business people, sport persons, astronauts, deep sea divers and alpinists. These watches are meant for men in most of the cases. They have very limited variety in Women segment.
  • 8. 8 | P a g e SRH Hochschule Heidelberg – International Business & Engineering From sinus milieu diagram above we can say that typical target group of Rolex is: 1. Established Conservative milieu: This milieu covers very successful rich people in the field of business, sports etc. these people tend to use traditional yet elegant watches. Since Rolex’s inception this has been main focused consumer’s group. 2. Liberal Intellectual milieu: This milieu includes highly educated individuals who are self-determined & therefore are concerned more about product quality & technology than price. Rolex stands high on these aspects. 3. High achiever milieu: This milieu covers individuals who are techno savvy, Professionals who are at top level in organization and would prefer to have proven brand. So Rolex exactly fits their bill. 4. New middle class milieu: These are middle class consumers who are striving to become established professionals & trying to have a status which is socially well acceptable. This class particularly represents consumers from developing countries like China & India who are increasingly concerned about brand of a particular product. The Marketing: Looking at the brand Rolex one can predict the biggest company capturing & influencing entire global market with its wide product range which are benchmark with their quality & technology. Considering above expectations Rolex stands tall on its quality & technology. But when it comes to product range they have very limited variants & less focus on women watches segment making them bit lagging in global market. Also prices are exorbitantly high.
  • 9. 9 | P a g e SRH Hochschule Heidelberg – International Business & Engineering SWOT Analysis: Strength:  Brand Image: Rolex is most renounced brand in the field of wrist watches over past few decade.  Quality: Rolex manufactures highest number of COSC certified watches than any other competitor.  Technology: Rolex has many patented technologies like Oyster Case, Winding crown, Cyclops Lens etc.  Products for critical application: The manufacture watches for deep sea applications, high altitude applications with extreme accuracy and durability  Close association with sports like golf & tennis. Weakness:  Price: These watches have extremely high price which can’t be affordable to common consumer.  Limited variants: Their product basket is limited with traditional look.  Limited variants for Women: Rolex has manufactured only one series for women.  Product type: Rolex manufactures only analog watches and not digital ones therefore losing buyers’ market of digital watches. Opportunities:  New segment: Manufacturing of digital watches.  New target group: Target young generation and launch suitable products, watches for women.  Price: Use alternate material and outsourcing of some components could reduce price of watches.  Demand: Demand for Rolex watches is increasing at higher rate compared to manufacturing rate. Threats:  Mobiles: Due to multi functionality of mobiles consumers are giving less priority to watches.  Competitors: Rolex faces intense competition in various regions from local competitors.  Recession: Due to Economic crisis people are spending less on secondary needs.  Grey Market: Imitations at lower price affect the brand image and intern the sales of product.
  • 10. 10 | P a g e SRH Hochschule Heidelberg – International Business & Engineering Opportunities Threats New segment Mobiles SWOT Analysis : New target group Competitors Price Recession Demand Gray Market Strategies Strength Brand Image use alternate material for low cost products maintaining the status throughout according to brand image Quality Technology start manufacturing digital watches Periodic R&D to be at par with the latest development so as to be always a step ahead with competitors Products for critical application Launch smart watches Close association with sports like golf & tennis Weakness Price Launch low price version in specific geographical market efficient buy back policy to minimize grey market Limited variants Limited variants for Women outsource some components to reduce price Product type Expand product basket for women watches Low manufacturing capacity Increase manufacturing capacity to cope up with increased demands
  • 11. 11 | P a g e SRH Hochschule Heidelberg – International Business & Engineering Conclusion: Based on market analysis & subsequently emerged strategies we have come up with following salient points:  The Rolex has been successful in maintaining their brand image as one of the leading manufacturing watch makers in the global market throughout these years.  There is scope for further improvement with application of some strategies. Out of all immerged strategies we have come up with most prominent strategies as per following : a) Introduction of new product segment which would include watches for women as well as digital sport watches: this strategy will require minimum investment as they are already equipped with technology. b) To counter forfeit & grey market introduction of efficient buyback policy: watches will be available for lower price and would open opportunity for new target group. c) To tackle competition in local market Rolex can outsource some components of watch assembly to reduce final product cost & enter relatively low price market.  With these strategies Rolex will be able to cover adaptive pragmatist milieu while maintaining their original target groups.
  • 12. 12 | P a g e SRH Hochschule Heidelberg – International Business & Engineering Reference: 1. https://en.wikipedia.org/wiki/Rolex 2. http://www.chase-hattan.com/blogs/news/17780980-rolex-watches-demand-and- supply 3. http://www.forbes.com/companies/rolex/ 4. http://www.wthejournal.com/images/pages/EN_Graph8_1.jpg (pie chart -1) 5. http://www.wthejournal.com/images/pages/EN_Graph4_1.jpg (pie chart-2) 6. www.rolex.com