Académique Documents
Professionnel Documents
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of ROLEX
Prepared by:
Muntasir Hafij
Sivdad Simhad
Dewan Saif
Marketing Communication Presentation-July 2015
Case: ROLEX
Answer to question 1:
Ans: Rolex targets affluent people aged 35-60, where the household
income is above $100,000+. Many customers aspired to own a Rolex and
when they achieve this, they stick with the brand for life.
In order to sustain this luxury brand reputation, Rolex embrace a wide
range of marketing communication activities. Rolex implies all types of
model of communications.
Answer to Question 2:
There are FIVE INTERPRETATIONS of how marketing communications works.
The first is the sequential buying processes.
The SEQUENCIAL BUYING PROCESS consist of the AIDA model, hierarchy of
effects model and the information processing model. AIDA is an acronym for
attention, that means to capture the attention of the targeted audience. Then
interest, that means after getting attention we have to get them interested in the
product. Then comes desire, which can be engendered by showing what the
product will offer or how it will solve their problems. And finally action, that is to
get them buy the product, or at least agree to the proposals.
Then comes the HIERERCHY OF EFFECTS model. This model represents the
process by which advertising was thought to work through a series of steps. That
is, to first create awareness to the audience regarding the product, then
knowledge, that is, to educate them, then liking and preference for it, and finally to
have them convicted and make them purchase the product.
Both of these models can be related to Rolex, since Rolex has done exactly all
these through a mix of marketing tools such as advertising, media, mobile, public
relations, through brand ambassadors etc. Their targeted customers are only those
who are affluent, and Rolex has always associated itself with high prices and very
high quality by keeping their marketing tools and promotional activities consistent
with the kind audience they have targeted.
Then theres the INFORMTION PROCESSING model, which has similarities
with the other two models, except that it includes a retention stage.
The second interpretation is Changing attitudes with marketing
communications. Attitude change has been regarded by many practitioners as the
main way to influence audiences through marketing communications. Attitude
towards a brand might be superficial, thus this can be corrected by building
credibility. For example, a Rolex brand ambassador, such as, Ed Visteurs, a
mountain climber who has conquered 14 of the worlds highest peaks without the
use of supplemental oxygen, provide a rich form of source credibility.
The beliefs regarding the performance of the product may also be changed. This
can be observed through an ad of Rolex which depicts Mercedes Gleitz, who wore
a Rolex during her 10-hour swim of the English Channel in 1926. This
demonstrated the worlds first waterproof watch and the ad associates the
functionality of resilience and durability.
New brand associations may also be introduced or changed. Rolex does this by
using celebrities or individuals who are highly successful in their chosen fields,
such as, Rodger Federer in tennis, skiers Carlo Janka and Lindsey Vonn, and Phil
Mickelson and Luke Donald from the world of Golf.
Here we can see a graph which represents the customer relationship cycle. On the
y-axis we have relationship intensity ranging from low to high. And on the x-axis
we have time and duration of relationship, which starts with acquisition. During
the acquisition phase, marketing communications needs to be focused towards
creating awareness and to make the product familiar to the audience. Then it is the
development phase, where the seller tries to reduce buyer risk and enhance
credibility. As the case study says, Rolex ensures this through credible
extraordinary individuals and brand ambassadors. Then comes the retention stage.
The retention phase will last as long as the buyer and seller are able to meet their
individual and joint goals. During this stage, the intensity of the relationship will be
the highest. Just like in the case study where it says that there are MANY Rolex
customers who have decided to stick with their brand for their whole lives. But
after having built a strong relationship, if it starts to become weak, then we can
say that the relationship has entered the decline phase.
Next comes DEVELOPING SIGNIFICANT VALUE. Marking communications
consists of a set of tools & media that are used to differentiate in ways to convey
messages to & with the audience. Depending on the context in which its created,
delivered & interpreted, the brand & the individual has the opportunity to interact.
Answer to Question 3:
The analysis show that each of the 5 interpretations are significant in their
own right. However, there are subtle differences and similarities that makes
two stand out, namely SHAPING RELATIONSHIPS & COGNITIVE
PROCESSING. While in Shaping Relationships, there are common features
to that of sequential buying and changing attitudes, it clearly stands out
with customer retention. Then theres the Cognitive Processing, which
involves cognitive thought process of a potential client staring with his first
exposure to a commercial, right up to the thoughts that eventually leads to
the final judgement of whether or not will he buy the product. Finding a
superior interpretation is a question thats open to wide interpretations, but
focussing on this specific case, both Shaping Relationships & Cognitive
Processing appears to be a extremely useful tool.