Origin & History

Rolex was founded in 1905, in London specializing in the distribution of

timepieces, by Hans Wilsdorf. He was 24 when he founded the company.
He had a dream of making a watch worn on the wrist. Hans Wilsdorf
believed that the wristwatches could become elegant as well as reliable in
the days when wristwatches were not very precise.
Hans Wilsdorf wanted his watches to bear a name that was short, easy to
say and remember in any language and which looked good on watch
movements and dials. He tried combining letters of alphabet in different
ways but could not get a satisfactory name for his watches. He says, one
morning, while riding on the upper deck of a horse-drawn omnibus along
Cheapside in London, a genie whispered Rolex in his ear.
Rolex focused on the quality of movements. Its quest for chronometric
precision finally led to success when the Official Watch Rating Centre in
Bienne granted the Certificate of Chronometric Precision to Rolex in 1910.
Key Observatory in Great Britain awarded a Class A Precision Certificate
to Rolex in 1914 which until that time had been given to only marine
chronometers. Since then, Rolex became synonymous with precision.

Precision Certificates Received by Rolex

In 1920, Rolex moved to Geneva, renowned

watchmaking which is its Headquarters now.

internationally

for

Creation of the first waterproof watch Oyster in 1926 was a major step by
Rolex. The claim was proved in 1927 when the English swimmer named
Mercedes Gleitze crossed the English Channel wearing a Rolex Oyster. The
watch was in perfect condition even after 10 hours of swimming.

The year 1931 saw the birth of the worlds first self-winding mechanism
with a perpetual rotor by Rolex. This indigenous system which is patented
by Rolex has become the heart of every modern automatic watch today.

Perpetual Movement

In 1945, creation by Rolex of the Datejust, the first self-winding wrist

chronometer to indicate the date in a window on the dial marked a major
step forward. A specifically created Jubilee bracelet and a fluted bezel
made Datejust immediately recognizable as a Rolex.
In 1953, Rolex launched Submariner, the first divers watch waterproof to
a depth of 100 meters (330 feet). The GMT-Master, which became the
official watch of several airlines, was developed in 1955 to meet the
specific needs of airline pilots. The two-wheel bezel which marked daytime
from nighttime hours was the most distinguishing visual feature of this
watch.

The GMT Master

Available only in 18 ct gold or platinum, the Oyster Perpetual Day-Date

made its debut in 1956. It was the first wristwatch to display the date and
the day of the week spelt out full in a window on the dial.

The Day Date

The Lady-Datejust, which was the first ladies version of the Rolex Datejust
chronometer, was developed in 1957.

Lady Datejust

In 1971, Rolex presented the Oyster Perpetual Explorer II which featured a

distinctive 24 hour hand. This was an invaluable aid around the poles and
beneath the ground where you cannot tell night from day.

The Explorer II

Rolex Awards for Enterprise were launched in 1976 to celebrate 50th

anniversary of the Oyster. In 2002, Rolex founded Mentor and Protg Arts
Initiative to encourage talented individuals through a unique programme
of one-to-one mentoring with a major figure in artistic discipline.
In 2005, Rolex created the blue Parachrome hairspring after five years of
research. It is crafted from a paramagnetic alloy and it is unaffected by
magnetic fields. It is 10 times resistant to shocks.

Blue Parachrom Hairspring

The Oyster Perpetual Rolex Deepsea Challenge is an experimental diving

watch which is certified waterproof up to 12000 meters (39370 feet). It
has set the record of the deepest diving watch in the world.

Oyster Perpetual Rolex Deepsea Challenge

Rolex entered into a long-term partnership with Formula 1 Racing as

Official Timekeeper and Official Timepiece in 2013.

Brand Portfolio

Rolex

Oyster Perpetual
Air-King
Perpetual
Date
Datejust
Datejust Turn-O-Graph
Day-Date
Lady Datejust
Lady Datejust Pearl
Imaster

Oyster Professional
Explorer
GMT-Master II
Submariner
Submariner Date
Sea-Dweller 4000
Yacht Master
Cosmograph Daytona

Cellini
Cellinium
Quartz
Cellissima
Classic
Danaos
Cestello
Orchid
2005 Prince

The three family brands of wristwatches called Collections are part of

Rolex Brand Portfolio. Each of the collections has a subset of brands.
The Oyster Collection which targets affluent men and women has eight
sub-brands differentiated by features and design including the
traditional Rolex wristwatch.
The Oyster Professional Collection has seven sub-brands. Through its
specific features and imagery, it targets specific athletic and adventurer
user groups.
The Cellini Collection encompasses seven sub-brands and focuses on
formal occasions through its elegant designs. The collection incorporates
fashion and style features like colored leather brands and extensive use of
diamonds.

Segmentation & Targeting

Geographic segmentation for Rolex is done based on the states/regions
and market density with wealth. Developed countries are tapped first and
then developing and semi-urban markets as fast emerging and profitable
market segment.
Rolex offers separate schemes for different age and high income groups. It
offers special outlets for premium customers and premium plans for
business executives and professionals. For example: special collections on
special events.

Positioning
Rolex has positioned itself as a brand without any compromise in the
quality of the services and sustained its growth by generating substantial
profits. Rolex believes that the good quality and extraordinary look
provide them competitive advantage. With its excellent channel of

distribution, Rolex has been able to position itself in almost every part of
the world. It has launched various exciting and beautiful advertisements
and sales promotional activities for creating sales and enquiry.

Differentiation
Rolex is a very high quality luxury watch which helps to build its brand
image. The differentiating feature of Rolex is its quality combined with its
brand image. Rolex targets a smaller market which can pay a premium for
a luxury watch. Rolex follows focused differentiation strategy. While other
brands in the market focus toward a specific customer segment, Rolexs
strategy is concerned about the unique attributes of its watches. Higher
value proposition created from these unique aspects allows for a higher
price for the Rolex watches.
Rolex also uses No to Second Life strategy. There are several instances
of counterfeiting goods and Rolex does not want to lose its reputation of
making world class, reliable, quality watches. Rolex fears that selling of
watches in second life would lead to duplications which might lead to
customer confusion and dissatisfaction.
Rolex also used the scarcity marketing to build up its luxurious brand
image. Limited number of distributors give customers a feel of
distinctiveness and rarity.

Social Media Marketing

Rolex segmented its approach while jumping into social media instead of
rolling out all of its assets at once. Social media journey for Rolex began
with its YouTube launch in 2012. Rolex wisely resisted the temptation to
bloat the page with product ads. Instead, Rolex used the platform to
launch in-house documentaries about topics that matter to the brand and
its devotees, like Himalayan expeditions and deep-sea missions to
investigate the polar ice caps. Rolex practices extreme caution and
strategy calculation while publishing any content on YouTube and its new
Facebook hub. The brand meticulously selects what media tells the
brand's story best.
Rolex believes in active social listening. It looks for brand mentions on its
own and other social networks to identify what consumers want to see
from the Rolex on the social media. In July 2013, after mining Facebook
comments, Rolex realized that people wanted to know about the
distinctive features of Rolex watches. One of the commenters was curious
about the quirky roman numerals on Rolexes. In response, Rolex launched
Did You Know series to explain why Rolex uses Clockmakers Four instead
of IV. The post became a hit garnering more than 119,000 likes.

Unique Marketing
Hans Wilsdorf had identified the importance of marketing campaigns to
illustrate technological achievements by Rolex to the whole market of
potential buyers. In 1927, for example, Mercedes Gleitz became the first
woman to swim the English Channel successfully while wearing one of the
Rolex wristwatches. To trumpet this historic achievement and showcase its
new watch, Rolex took out a front page ad in Englands Daily Mail. The
testimony concept got introduced to the world through this ad. In the
1927 placement, the copy describes the qualities of the watch
(waterproof), while the witness (Gleitze) provides testimony that Rolexs
claims of a waterproof watch are true. More than ten hours of submersion
under the most trying to conditions failed to harm its perfect
timekeeping, the ad proclaims. ...Perfect timekeeping under all
conditions is at last a possibility.

A 1927 print ad depicting Mercedes Gleitze's momentous swim

Rolex watches have been a part of several historic events. In the 1950s,
Rolex started capitalizing commercially on such events. For example,
Rolex modeled a new watch, the Oyster Perpetual Explorer, to honor Sir

Edmund Hillary and Tenzing Norgay when they became the first climbers
to conquer the summit of Mount Everest in 1953.

Members of John Hunt's expedition wore Oysters as they ascended Mount Everest

Jacques Picard used to wear Rolex while exploring the depths of the sea.
These tests coupled with effective advertising campaigns demonstrated
significant durability and quality of the brand. Because of the rational and
emotional value linked with the brand, well respected pilots in the British
Royal Air Force bought Rolex refusing standard government-issue
watches, during World War II.
Only well known, top notch professionals in their relative fields promote
Rolex keeping the luxury concept of Rolex to its heights. Only the
undisputed winners from their respective fields endorse Rolex watches
mirroring its legacy and distinguishing it from other brands. From
equestrians, opera singers, yachtsmen, and Olympic skiers to the race car
drivers, golfers and, most notably, Swissborn star tennis player Roger
Federer, all of them have achieved something monumental in their
careers and they are not temporary heroes.

In TV ads, Rolex has reinforced the notion that its watches are iconic and
witnesses to history, a tenet that has become central to its brand
storytelling. The series of commercials with the tagline It doesnt just tell
time; it tells history became one of its best-received campaigns. Rolex
produced several variations on the theme, including individual videos
which highlight achievements of professionals like tennis player Roger
Federer who has become the face of Rolex since 2006, and golf legends

Tiger Woods and Jack Nicklaus. In the Tiger Woods commercial, the
narrator cleverly describes the traits shared Woods and Rolex through the
line This watch has seen ... uncanny precision and impossible physics, on
golfs most hallowed grounds.
Rolex is the official timekeeper for the tennis tournaments Australian
Open and Wimbledon and the golf tournaments U.S Open and The
Open Championships. Rolex also sponsors The senior Open
Championship and the Womens World Golf Rankings. To convey its rich
lineage linked to high-end sports, Rolex has created a series of short
videos:

Roger Federers Rolex Commercial for Wimbledon 2011 Federer

Greatness
Formula One Rolex Commercial
Steve Guerdat Rolex TV Advertisement
Rolex Commercial Equestrian
Rolex Maxi Yacht Rolex Cup Commercial

Environmental & Social Responsibility

Hans Wilsdorf Foundation: It supports the arts, culture, education
helping build sports and educational facilities for schools, theatres,
literature, architecture and others. The Foundation has also supported
NGOs to secure and defend childrens rights in African countries such as
Ethiopia and Senegal.
The Rolex Awards for Enterprise: It recognizes pioneering men and
women around the world who work to improve life on our planet; and
advancing human knowledge and wellbeing in the areas of science,
technology, exploration, the environment and cultural heritage. Since the
Awards were initiated, 110 Rolex Awards have been presented to
recipients in more than 60 countries.
Young Laureates Programme: Five young pioneers between 18 and 30
with ideas to solve tomorrows challenges in science and health, applied
technology, exploration, the environment and cultural preservation are
selected under this program and funding is provided to deploy their ideas.
The Rolex Mentor and Protg Arts Initiative: Set up in 2002, this
philanthropic program intends to make a contribution to global culture. It
pairs extraordinary, rising artists with great masters for a year of creative
collaboration and helps them achieve their full potential. Artists from
various fields like dance, music, film, theatre and visual arts and literature
are selected for this initiative. Click here to watch the video.

References
http://www.rolex.com/about-rolex.html
http://www.academia.edu/9833577/Term_paper_on_Rolex
Strategic Brand Management, 3/E, By Kelle
http://craftedintelligence.com/experiencing-time-with-rolex-forged-byartisans-worn-by-heroes/
http://mashable.com/2014/04/17/rolex-marketing-strategy/
http://www.alphatech.sg/2011/05/rolex-%E2%80%93-the-quietphilantropist/
http://www.rolexmentorprotege.com/
http://thebusinessprofessor.com/bowmans-clock/
http://www.marketing91.com/marketing-mix-of-rolex/