Rolex vs Patek
McGill University
10
BATTLE OF THE BRANDS
Patek Philippe vs. Rolex
Gizem Ozdemir, Cynthia Younes, Martin Lemay, Alex Beauchesne
Table of Contents
Introduction to the Watch Industry 3 Customer and Competitor Analysis 4 PATEK PHILIPPE 5 History of Patek Philippe 5 Patek Philippe’s Strategy 6 SWOT Analysis 8 Marketing Mix 9 ROLEX 11 History of the Brand 11 Scope of the Brand 12 SWOT Analysis 12 Marketing Mix 14 Results – Patek Philippe 15 Recommendations Patek Phillipe 16 Results—Rolex 17 Recommendations—Rolex 18 Works Cited 21
* Introduction to the Watch Industry
Rolex and Patek Philippe are part of the jewelry and watches market – watches consist of 20.8% of the jewelry market share, but most specifically the Swiss watch market. The Swiss watch market is more exclusive and includes the best and most accurate watchmakers in the industry [ (Tower) ]. The Canadian jewelry and watches market gained total revenues of $2,327.6 million in 2009 The Canadian market represents a small percentage market value for the industry. It stands for 3.7% of America’s jewelry and watches market value while the United States accounts for 89.7% [ (DataMonitor, 2010) ]. This means that for companies from the luxury watch market Canada does not account for a large proportion of their revenue, this can be primarily attributed to the low accessibility and awareness of these products – awareness for Patek Philippe in Canada is really low, and their high prices. Though, in the global market, the watch industry is doing incredibly well, and is in sustainable growth. It recorded exports of 11 billion dollars in 2004, 12 in 2005, and 13 in 2006. This growth can be strongly explained by the increase of demand in emerging markets such as China and India [ (European CEO) ].
There exist 4 segments in the luxury watch market: high-end luxury, luxury, pseudo-luxury, and basic luxury. Starting at $5,000, the high-end luxury
10
BATTLE OF THE BRANDS
Patek Philippe vs. Rolex
Gizem Ozdemir, Cynthia Younes, Martin Lemay, Alex Beauchesne
Table of Contents
Introduction to the Watch Industry 3 Customer and Competitor Analysis 4 PATEK PHILIPPE 5 History of Patek Philippe 5 Patek Philippe’s Strategy 6 SWOT Analysis 8 Marketing Mix 9 ROLEX 11 History of the Brand 11 Scope of the Brand 12 SWOT Analysis 12 Marketing Mix 14 Results – Patek Philippe 15 Recommendations Patek Phillipe 16 Results—Rolex 17 Recommendations—Rolex 18 Works Cited 21
* Introduction to the Watch Industry
Rolex and Patek Philippe are part of the jewelry and watches market – watches consist of 20.8% of the jewelry market share, but most specifically the Swiss watch market. The Swiss watch market is more exclusive and includes the best and most accurate watchmakers in the industry [ (Tower) ]. The Canadian jewelry and watches market gained total revenues of $2,327.6 million in 2009 The Canadian market represents a small percentage market value for the industry. It stands for 3.7% of America’s jewelry and watches market value while the United States accounts for 89.7% [ (DataMonitor, 2010) ]. This means that for companies from the luxury watch market Canada does not account for a large proportion of their revenue, this can be primarily attributed to the low accessibility and awareness of these products – awareness for Patek Philippe in Canada is really low, and their high prices. Though, in the global market, the watch industry is doing incredibly well, and is in sustainable growth. It recorded exports of 11 billion dollars in 2004, 12 in 2005, and 13 in 2006. This growth can be strongly explained by the increase of demand in emerging markets such as China and India [ (European CEO) ].
There exist 4 segments in the luxury watch market: high-end luxury, luxury, pseudo-luxury, and basic luxury. Starting at $5,000, the high-end luxury
Cited: DataMonitor. (2010). Jewelry & Watches in Canada. DataMonitor Canada Donville, C Grosjean, A. (2004). Cinq tonnes de montres de contrefacon broyees. Economie , 11. Kroll, L. (2010). Ranks of self-made female billionaires growing. Récupéré sur Forbes.com: http://www.msnbc.msn.com/id/37758848/ns/business-forbescom/ Mullier, T Wire, B. (2002). Article: Number Of Wealthy Women Rising Around The Globe, Finds Merrill Lynch And Cap Gemini Ernst & Young World Wealth Report. Récupéré sur http://www.highbeam.com/doc/1G1-87689595.html Ziglar, D