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: ultra-
high 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-thuong-
luu.html)

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 Contents
I. Investigation and analysis. ............................................................................ 3
1. Situational analysis of Rolex (SWOT Analysis). ................................................................................. 3
2. Competitive advantages of Rolex. .................................................................................................... 5

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

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

III. Conclusion. ................................................................................................. 11

IV. Apendix ...................................................................................................... 12
V. Reference. .................................................................................................. 13

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 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:

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-inventedwristwatch, 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.

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 - 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.
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:

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
Threats:
- Price: Price of Rolexs products is too high so people with average incomes can hardly
access to the products of Rolex.

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 - 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 promotedistribution 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 aprofessional 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.

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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.

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.
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.

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 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)

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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.

Beneath, I will analysis segmentation targeting and positioning for give an extraordinary look
about Rolex's product and its services.

Market Segmentation: Products of Rolex wristwatches concentrate on extravagance

portion; this market incorporates individuals with high money related and need to
communicate. These items include: Day-date, Datejust, Deepsea, Daytona, GMT-Master
II, Explorer... Every product line carries its own look and exceptional style. Rolex
concentrate on demographic segmentation.
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.
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.

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 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:

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.

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 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.

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.
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.
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.
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 actorsand 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
Rolexswristwatch. And show for them about warranty programs for company. Base on
that, Rolex can promote their products and creategood 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
Price: There are some examples: suggested retail price, volume discounts and wholesale
pricing, cash and early payment discounts
Place: Distribution (place) is about getting the products to the customer. There are some
examples: distribution channels, specific channel members, inventory management,
distribute centers
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-hieu-

hang-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/lesson-

store/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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