Luxury Watches Essay Example
Marketing 48-Hour Report:
The Jewelry Industry – Luxury Watches
Section 2 – Group Number 7
Group Members:
250556161
250517768
250572192
250568255
250582064
Executive Summary
Rolex is currently facing a problem in their brand positioning in the U.S. luxury watch market. In the years following the 2008 recession, Rolex’s competitors Breitling and Omega have outpaced them in market share growth. This report aims to analyze the reasons behind this decline and to provide a recommendation for Rolex to reaffirm position as the market leader.
Our industry analysis shows that despite suffering from the sales decline during the recession, the luxury watch market has regained a growth rate of 7% after 2010. The intense competition within the industry and increasing usage of mobile phones for timekeeping have transformed consumers’ preferences for watches. The target market of the luxury watch market consists of affluent males with higher education and active lifestyle. They perceive luxury wristwatches as a piece of craftsmanship that represent their identity and socioeconomic status.
The competitor analysis depicts that in the luxury watch market, although Rolex has established its reputable image as the market leader, it has not achieved effective marketing strategies and not adapted to consumers’ needs and desires. In contrast, Omega has responded to changes in consumers’ preferences and Breitling has evolved its core brand image to capture more market share.
Our short term recommendations for Rolex revolve around addressing the current, known consumer shift to mechanical watches, as well as fixing realigning their marketing to be forward facing with thetowards the 35-44 age category of a decade ago, but to the 35-44 category of today. This involves pushing their current Daytona line as well as finding a fresh new brand ambassador such as Orlando Bloom.
In the long term, Rolex needs to connect to the younger consumer segment and fix their
The Jewelry Industry – Luxury Watches
Section 2 – Group Number 7
Group Members:
250556161
250517768
250572192
250568255
250582064
Executive Summary
Rolex is currently facing a problem in their brand positioning in the U.S. luxury watch market. In the years following the 2008 recession, Rolex’s competitors Breitling and Omega have outpaced them in market share growth. This report aims to analyze the reasons behind this decline and to provide a recommendation for Rolex to reaffirm position as the market leader.
Our industry analysis shows that despite suffering from the sales decline during the recession, the luxury watch market has regained a growth rate of 7% after 2010. The intense competition within the industry and increasing usage of mobile phones for timekeeping have transformed consumers’ preferences for watches. The target market of the luxury watch market consists of affluent males with higher education and active lifestyle. They perceive luxury wristwatches as a piece of craftsmanship that represent their identity and socioeconomic status.
The competitor analysis depicts that in the luxury watch market, although Rolex has established its reputable image as the market leader, it has not achieved effective marketing strategies and not adapted to consumers’ needs and desires. In contrast, Omega has responded to changes in consumers’ preferences and Breitling has evolved its core brand image to capture more market share.
Our short term recommendations for Rolex revolve around addressing the current, known consumer shift to mechanical watches, as well as fixing realigning their marketing to be forward facing with thetowards the 35-44 age category of a decade ago, but to the 35-44 category of today. This involves pushing their current Daytona line as well as finding a fresh new brand ambassador such as Orlando Bloom.
In the long term, Rolex needs to connect to the younger consumer segment and fix their