ProductThroughout the years, Rolex timepieces have maintained the high quality, durability, and prestige on which the company built its name. In particular, the firm has maintained a keen focus on delivering a highly accurate watch of superior craftsmanship, us-ing only the finest premium materials such as gold, platinum, and jewels. It continually works on improving the functionality of its watches with better movements and new, sophisticated features. As a result, Rolex watches are complex mechanisms compared to most mass-produced watches. A quartz watch, for example, has between 50 and 100 parts; a Rolex Oyster chronometer has 220.31Each Rolex watch consists of 10 unique features identified as the company’s “10 Golden Rules:”1. A waterproof case2. The Perpetual rotor3. The case back4. The Oyster case5. The winding crown6. The finest and purest materials7. Quality control8. Rolex self-winding movement9. Testing from the independent Controle Official Suisse des Chronometres10. Rolex testingThe company does not license its brand or produce any other product besides watches. Its product portfolio is clear, concise, and focused.Rolex spends more time and money than any other watch company fighting counterfeiters. Today, it is often hard to spot the differences between a $25 counterfeit and a $10,000 authentic Rolex watch. Counterfeiting Rolex watches has become a sophisticated industry, with sales ex-ceeding $1.8 billion per year.PricingBy limiting production to approximately 2,000 watches a day, Rolex keeps consumer demand high and prices at a premium. Prices start around $2,500 for the basic Oyster Perpetual and can reach $200,000, depending on the specific materials used such as steel, yellow gold, or platinum. Scarcity also helps posi-tively influence the resale value of Rolex watches. One report indicated that “almost all older Rolex models are valued above their initial selling price.”32DistributionRolex carefully monitors how its timepieces are sold, distrib-uting them only through its approximately 60,000 “Official Rolex Dealers” worldwide. Official dealers must meet several criteria, including a high-end image,adequate space, attrac-tive location, and outstanding service. In addition, a large secondary market exists for Rolex, both through online auc-tion sites such as eBay and at live auctions run by Christies and Sotheby’s.CommunicationsRolex’s marketing and communications strategy strives to cre-ate a high-quality, exclusive brand image. The company as-sociates itself with “ambassadors”—established artists, top athletes, rugged adventurers, and daring explorers—to help create this imagery. Rolex also sponsors various sports and cul-tural events as well as philanthropy programs to help align with targeted demographics as well as create positive associations in consumers’ minds.Advertising. Rolex is the number-one watch advertiser in the world. In 2008, the firm spent over $49 million on advertising, $20 million more than the number-two contender, Breitling.33One of the company’s largest expenditures is for magazine advertising. Rolex’s print ads are often simple and austere, usually featuring one of its many brand ambassadors or a close-up photo of one of its watches with the tagline “Rolex. A Crown for Every Achievement.” Rolex does not advertise extensively on television, but does sponsor some events that are televised.Ambassadors. Rolex’s celebrity endorsers are continuously added and dropped depending on their performance. These ambassadors fall into four categories: athletes, artists, explorers
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