Rolex "One step forward"

In the past, Watch market in Vietnam does not develop. Watch items on the market are mostly being taken through the airport by people who go abroad to buy. There is not a

distributor of watches in Vietnam. Not until three years ago, the Swiss companies began distributor in Vietnam and bring a new trend in user segments, especially business people. They are the indispensable life time, so they are main customers of Watch companies. The world today has over 3.000 company and have three quarters are manufactured in Switzerland. In Vietnam there are many Watches of Switzerland is divided into four series: ultrahigh average; advanced as Rolex, Omega, Longines and the average like Tissot, Candino, CK, Rado ... In the market segment of high-level Watch, two big firms that Rolex compare with Omega. This report will analyze the marketing strategy of Rolexs wristwatch for business man. (http://vnbrand.net/Phong-su-thuong-hieu/thuong-hieu-rolex-bieu-tuong-cua-gioi-thuongluu.html)

Contents
I.
1. 2.

Investigation and analysis. .............................................................................. 3

Situational analysis of Rolex (SWOT Analysis). .............................................................................. 3 Competitive advantages of Rolex. ................................................................................................ 5

II. Recommendations for Rolex in Vietnam Market. .......................................... 6

1. 2. 3. 4. Situation analysis. ........................................................................................................................ 6 Segmentation Targeting & Positioning.......................................................................................... 8 Marketing objectives. ................................................................................................................... 9 Marketing Strategy..................................................................................................................... 10

III. Conclusion. .................................................................................................... 11 IV. Apendix ......................................................................................................... 12 V. Reference. ..................................................................................................... 13

I. Investigation and analysis.

1. Situational analysis of Rolex (SWOT Analysis).
According to tutor2u: SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. It is an important tool for auditing the overall strategic position of a business and its environment. To analysis internal factors of Rolex Company, we analysis strength and weakness: y Strength: Capabilities: the leading name in luxury wristwatches, Rolex has been the pre-eminent symbol of performance and prestige for over a century. Headquartered in Geneva, Switzerland, with 28 affiliates worldwide and relying on 4,000 watchmakers in over 100 countries, Rolex countries to expand its long history of achievement and innovation (Rolex website). Not self-invented wristwatch, but Rolex is the brand was first popularized this type of wristwatch. The company is also associated with important inventions in the history of wristwatches. Value: One way to build a brand with class leading value and credibility of sustainability that is the application effective solution "brand ambassador". Throughout the years, Rolex determined to build his name and his image with big names and are selected carefully. A series of famous people of Rolex is divided into each group, including artists, explorers, the championship golf, tennis, polo and sailing. Rolex does not accept the star image time nature trend as some other brands. Quality: Famous slogan takes time quality (quality takes time to verify) highlighted quality of Rolexs watch over time. Rolex has always proven and confident about this. Because behind the strong statement of Rolex and a wonderful experience from customers, it is the rule throughout the research process, production details, the meticulous assembly, superior durability. Concept of the "timeless quality" of Rolex was the choice of durable materials, super-accurate.

Faction: Although Rolex rarely talk about "fashion" element, but the Rolexs products show the beauty in a most refined, most luxurious and sometimes, the most sophisticated. The aristocrat shows itself, at times of need, not require to display or show the wrong place. That is the most appropriate point on the elegance of Rolex.

y -

Weakness: Exclusive distribution: through the years, Rolex gradually reduce the number of retail outlets of their watches. Unlike other brands always wanted to expand their distribution channels. Rolex went the opposite way.

Rolex is focused too much on the sport watch market and does not focus on business man who needs time and wants to show class. Business peoples are great potential customers of Rolex.

The final weakness of Rolex is products of Rolex watches made with high cost, so cost is very high. So it is difficult to access the most markets.

To analysis external factors of Rolex Company, we analysis opportunities and threats: y Opportunities: Market development: Today, the wristwatch has become indispensable in human life, especially business people who cannot live without the time and who have enough financial to purchase the most expensive wristwatch. Industry or lifestyle trends: People do not wear a Rolex because of its accuracy. They wear a Rolex to assert themselves and their social position. Today, financial condition increase, so the life style trend of people is expressing themself more than necessary so the jewelry as a wristwatch can help them express what they want. Technology development and innovation: technology today is more and more developing, so Rolex can develop more new products such as wristwatch may make a phone call or access the Internet y Threats: Price: Price of Rolexs products is too high so people with average incomes can hardly access to the products of Rolex.

Competitor: Today there are many well-known brands watches such as Omega compete with Rolex, Omega's products are luxury products with high quality models and can compete with the products of Rolex. It is a huge threat with the company Rolex.

Market demand: Today's customers demand very high while the dealer of Rolexs products are too low and the competitors promote distribution channels so their product access to the customer easier than Rolex's.

2. Competitive advantages of Rolex.

According to tutor2u: A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.. List below are the great advantages of the Rolex, it's better than other brands on the market. Brand: Rolex determined to build his name and his image with big names and are carefully selected. In the group of athletes and sports class, like golf legends: Jack Nicklaus, Arnold Plamer and Adam Scott, among the explorers, can be told as Sir Edmund Hillary, who first set foot Everest Mount. By labeling with the human embodiment of endurance strength, perseverance, Rolex reinforcing brand image and create absolute prestige with customers in particular and for those who do not directly using the product, otherwise known as fans. Quality: According to Vnbrand.net: Established in 1908 in London, Rolex watches are sent to test in Swiss Observatory. This is a wise decision by Hans Wilsdorf, who established Rolex, by then Rolex watches are first product to be tested and certified for accuracy. Promotion: Rolex used the image of Roger Federer, who is a professional tennis Swiss to promote the products of Rolex. Everyone knows to Roger Federer as a tennis professional, and referred him as referring to the image of Rolex.

II.

Recommendations for Rolex in Vietnam Market.

1. Situation analysis.
According to Hollensen, S (2003), to analysis wristwatch market in Vietnam, I will analysis PESTLE: Political factors, Economic factors, Social factors, Technological factors, Legal factors, Environmental factors. All of these factors are external and they affect Rolex Company, we cannot change these factors but must be aware of them, and more importantly, is able to monitor their changes. y Political factors: Follow the import procedure about wristwatch from Decree 12/2006/ND-CP dated 23/01/2006 of the Vietnam Government. Wristwatch items allowed for import as commercial goods normally. It is good condition for wristwatch enterprises around the world into Vietnam market like Rolex. y Economic factors: According to Vietnambusiness.asia, Vietnam gross domestic product is estimated to have increased by 6.7% in 2010 and GDP per people in 2010 is estimated at $ 1,200. Service sector up 7.52% so Vietnam has moved from poorest group country to Low average income level. These numbers show us that although Vietnam is a developing country, but people's incomes are not low and still can pay for the luxury Goods. It is a good opportunity for Rolex expands the retailer and profit because Vietnam is a potential market.

Social factors: Today, wristwatch market in Vietnam in development stage and does not have the explosion in the number users. Because there are too few enterprise distribute wristwatch in Vietnam, they put products into Vietnam through the Swiss watch brand. New trend of wristwatch in Vietnam is simply and classical but still express the style of wearer.

Technological factors: Technology for wristwatch more and more develop from past to present. For example: in the past, wristwatches must be wind-up by hand until now they have been wind-up forever and many other technologies. And in the future I think wristwatch can replace cell phones or computer

The legal and environmental factors do not effect with Rolex Company so we will not analysis in this report. If Rolex Company with wristwatch products for business man wants to come into Vietnam market, I will use Ansoff model to analysis. According to tutor2u.net (ansoffs product / market matrix):

Ansoff's product - market matrix (http://tutor2u.net/business/strategy/ansoff_matrix.htm)

The Ansoff Growth matrix is a tool that helps businesses decides their product and market growth strategy. With products line for business man and with market in Vietnam, we can see that this is market Development: the organization want to sell existing products into new markets. Vietnam is a new market with many opportunities and challenges of Rolex products. For Rolex Company wants to adopt a development strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks.

2. Segmentation Targeting & Positioning.

Below, I will analysis segmentation targeting and positioning for give a special look about Rolexs product. y Market Segmentation: Products of Rolex wristwatches focus on luxury segment; this market includes people with high financial and want to express themselves. These products include: Datejust, Day-date, Daytona, Deepsea, Explorer, GMT-Master II... Each product line carries its own look and unique style. Rolex focus on demographic segmentation. y Target Marketing: In this report, potential customers of Rolex are business man, who cannot live without the time and who have enough financial to purchase the most expensive wristwatch. In Vietnam, many business men are willing to spend a big amount of money to get the product, which gives them the confidence and express their style. y Positioning Strategy: In the past, everywhere have retailer of Rolex. But through years, Rolex reduce the number of retailer. Unlike other brands always wanted to expand their distribution channels. When the retailer of Rolex reduce, products of Rolex become rare so people want to own them and image of Rolex become stable basis. In Vietnam, does not have a retailer of Rolex so it is a new opportunity for Rolex improve market share.

3. Marketing objectives.
Marketing Objectives according to tutor2u: are the aims set out for the organizations marketing programmer. Objectives provide the starting point for marketing plans and marketing strategy. The role of marketing objectives: To enable a business to control a marketing plan. To help motivate individuals. To provide a common goal. To provide an agreed, consistent focus for all functions of an organization. (http://tutor2u.net/business/presentations/marketing/marketingobjectives/default.html) To build better target objective, we use SMART objectives: They must be: Specific, Measurable, Achievable or Agreed, Realistic and Time-related. As I said in situation analysis part, we can see that objectives of Rolex in Vietnam are: y y y Increased market share of user identification in Vietnam. Increased awareness of customer in Vietnam. Increased sale in Vietnam market.

Each objectives set for Rolex are clear, specific and measurable. The objective is straightforward, emphasizes action and the required outcome. Objectives need to communicate what you would like to see happen. (thepracticeofleadership.net, 2006) As I said in the SWOT analysis: Rolex is a strong organization and a leader in the wristwatch industry. And Rolex has enough qualify and resources to achieve this objectives as I've given above. So, these objectives are realistic. With situation in Vietnam, Rolex may be achieving the objectives within one year. Rolex should have specific plans for each month to monitor and check to ensure that company do it right. If company fails to comply with the plan, the companies need to change strategy to achieve the schedule.

4. Marketing Strategy.
According to Marketingteacher.com: The marketing mix is probably the most famous marketing term. Its elements are the basic, tactical components of a marketing plan. Also known as the Four P's, the marketing mix elements are price, place, product, and promotion. To have an effect strategy for Rolex, we base on marketing mix: Product, Price, Place, promotion. y Product: As mentioned above, the product of Rolex is very diverse and rich popular around the world. But to be developed in Vietnam, Rolex should have a plan to develop product line, wristwatches for business man. Another important factor when developing new products using existing products for beginners. It means that based on current product that adds features such as a wristwatch can make a phone call... It will bring a new trend in the market. The phones will be replaced by multi-functional wristwatches. y Price: With Rolex, the price for the product strategy is very important when they want to make a marketing plan. Overall, price of Rolex products is quite high compare with other company in wristwatch market. But company cannot reduce price, which will reduce the company's revenue. So, to keep the price as usual, Rolex have to focus on improving products to meet customer needs. To show them that although the Rolex products have high price but deserve for quality and style. Because customer target of Rolex is high income people so price strategy does not change. y Place: place is also an important factor affecting the profitability of the organization. For Rolex, managers need to investigate shopping habits of customers in Vietnam, where they often shopping to make decisions for distribute product. In Vietnam, people often go shopping at supermarkets and large shopping centers such as Big C, Vincom ... Rolex so can distribute products through stores in shopping centers or open a big shop in center of Hanoi, Hochiminh city. y Promotion: Rolex should use the exhibition to promote products to customer. Rolex can invite celebrities to promote products such as invites Roger Federer come to Vietnam, which later can invite popular actors and singers in Vietnam to promote products. When Rolex is promoted by famous people, company will dominate the market. In addition,

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advertising products of Rolex with high frequency on mass media like television, internet, and newspapers... will yield very high efficiency. So the customer will understand better about the products and companies. In addition, to dominate the market, Rolex should "one step forward". Rolex should make some events for business people such as: opening the event about introduce products. In that event, Rolex invites business people, who used the wristwatch for exchange and program has a reward as Rolexs wristwatch. And show for them about warranty programs for company. Base on that, Rolex can promote their products and create good relationships with customers.

III. Conclusion.
In the wristwatch market, Rolex is still a large company, but over time there are too many competitors in the market. So Rolex's position should not be as before, this report will help Rolex expand market share in Vietnam and improving his strength in the future.

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IV. Apendix
1. Marketing mix (the 4s P of Marketing) According to netmba.com, we have:

Marketing Mix (http://www.netmba.com/marketing/mix/) Product: the term "product" refers to tangible, physical products as well as services. There are some examples: brand mane, functionality, styling, quality, safety, packaging y Price: There are some examples: suggested retail price, volume discounts and wholesale pricing, cash and early payment discounts y Place: Distribution (place) is about getting the products to the customer. There are some examples: distribution channels, specific channel members, inventory management, distribute centers y Promotion: promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of genarating a positive customer response. There are some examples: promotional strategy, advertising, personal selling & sales force, sale promotions
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V. Reference.
Hollensen, S, (2003), Marketing Management: a relationship approach. Harlow, Person Education. Tutor2u, Strategy - SWOT analysis, [online], Available: http://tutor2u.net/business/strategy/SWOT_analysis.htm [Accessed: 1th Jan 2011]. Tutor2u, Strategy - competitive advantage, [online], Available: http://tutor2u.net/business/strategy/competitive_advantage.htm [Accessed: 2th Jan 2011]. Vnbrand.net, ROLEX Quality over time, [online], Available: http://vnbrand.net/Thuong-hieuhang-dau/rolex-chat-luong-thoi-gian.html [Accessed: 2th Jan 2011]. Vietnambusiness.asia, Vietnam GDP reaches 6.78% in 2010: MoPI, [online], Available: http://vietnambusiness.asia/vietnam-gdp-reaches-6-78-in-2010-mopi/ [Accessed: 3th Jan 2011]. Tutor2u.net, ansoffs product / market matrix, [online], available: http://tutor2u.net/business/strategy/ansoff_matrix.htm [Accessed: 3th Jan 2011]. thepracticeofleadership.net, Setting SMART Objectives, [online], Available: http://www.thepracticeofleadership.net/2006/03/11/setting-smart-objectives/ [Accessed: 4th Jan 2011]. Marketingteacher.com, Marketing Mix, [online], Available: http://marketingteacher.com/lessonstore/lesson-marketing-mix.html [Accessed: 4th Jan 2011]. Netmba.com, The marketing mix, [online], Available: http://www.netmba.com/marketing/mix/ [Accessed: 5th Jan 2011].

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