Presented by Jeannine Komonosky Long Le James E.

Salter
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Introduction
Watch Industry Key Brand Components Current Brand Strategy Image Associations Perceptual Map Competitive Position Industry Analysis Opportunities & Threats Strengths Weaknesses Brand Report Card Revised Branding Goal and Strategy Revised Brand Messaging

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Watch Industry
History Industry Grew up in Geneva Swiss Watches have a Worldwide Reputation for Quality Technological Developments Mechanical Watches have 100 to 130 components Light-emitting diodes (LED) Liquid Crystal Display (LCD) Quartz Analog Brands now Compete on: Features Product Attributes Positioning
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Key Brand Components

Early Publicity Advantages Branding Challenge Importance of Marketing Role of Collectable
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Current Brand Strategy

Early Brand Strategy Current Brand Strategy

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Image Associations
Corporate Success Symbol Swiss Made Luxury Market

Prestige Sports

Wealth in Travel

The World of Rolex Luxury Adventure James Bond 007

Disposable Income
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Perceptual Map
Prescious Stones Expensive Having It All Craftsmanship Wealth Affluence Quality Design Durability Prescious Metals

New

Conservative

Status

Time-honored Dress

Innovation

First

Rolex
Traditional Classy Sport Accuracy Functionality

Competitive Outdoors Winning Accomplished Cutting Edge Cool Sharp

Precision

Stylish

Adventure Worldliness

Daring

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Competitive Position
Market Segmentation Types of Wealthy Consumers Rolex

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Industry Analysis
Industry Five Forces Omega Citizen Jaeger-LeCoultre Movado

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2001 Annual Sales ($ millions)

2001 Annual Sales ($ millions)
30,000 25,000 20,000 15,000 10,000 5,000 0 Rolex Omega Citizen JaegerLeCoultre Movado 209 1,050 152 321 25,840

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Competitor Watch Brands - Market Share Snapshot $160,000 $140,000 JLC: $152 $120,000 $100,000
Average Retail Sales Price

$80,000 $60,000 $40,000 $20,000 Citizen: $1,050 $0 0 -$20,000 Style/Aesthetics/Quality 1 2 3

Rolex: $25,840

Omega: $209 Movado: $321 4 5 6

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Opportunities & Threats

Expansion of Luxury Brands Maintain Exclusivity of Brand Desirability Diminished Relative to other Luxury Brands Lower Price Levels Market Share Snapshot

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Strengths
Quality Commitment to Excellence Reputation Manage demand Swiss-Made Mechanical Movement Advertising
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Weaknesses
Style limitations High price limits market Technology is not accurate Myopic Management
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Brand Report Card

Brand Report Card Attributes Score Rating of Importance Prioritization

Delivering on Customers Desires

Relevance Value Positioning Portfolio Integrated Marketing Activities

4 4 3 1 5

4 5 3 1 7

5 7 3 1 8

Management Support and Monitoring

2 3

6 3

6 4

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Revised Branding Goal

Reserve Rolex as Elite Brand Product Diversification Proposed Umbrella Branding
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Umbrella Branding Strategy

Brands by Rolex Price Range Consumer Image Representative Rolex > $20,000 Ultra-Premium Old Money Millennium Money Prestige James Bond

Romeo & Juliet

$10,000-20,000 Premium-High

Old Money Millennium Money

The Classics Neo-Renaissance Romance

Vienna Opera House Image

Vibe, Eclipse, Pagea

$5,000-10,000 Premium-Low

New Money

Bohemian

Whoopi Goldberg

Revolution, Freedom Safari Line

$2,000-5,000 Luxury-High $500-2,000 Luxury-Low

New Money

Generation X

Madonna

Middle Money

Wild, Sporty

The Crocodile Hunter

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Revised Brand Messaging

Product Brand Attributes Brand Value Marketing
Pricing Distribution Positioning Promotion

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Review
Watch Industry Key Brand Components Current Brand Strategy Image Associations Perceptual Map Competitive Position Industry Analysis Opportunities & Threats Strengths Weaknesses Brand Report Card Revised Branding Goal Umbrella Branding Strategy Revised Brand Messaging
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Conclusion
Rolex should introduce separate product lines with different brand identities under the Rolex umbrella

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