Category: Rolex

This essay provides a comprehensive strategy that will help Rolex to effectively compete with top rival brands such as Louis Vuitton and eventually improve their sales. The focus is to explore the best product, price, place, and promotion measures to illustrate why this pop-up will be suitable for the brand. This strategy includes a step-by-step road map that begins with a detailed recommendation, implementation, and finally a contingency plan if the desired strategy fails to meet the companys expectations.

Rolex is a Swiss-based company that manufactures watches and has been in operation since the beginning of the 19th century. Over the years, several rival companies joined the watch manufacturing industry and competition became high. Brands such as Louis Vuitton also started to produce high-end luxury watches. Recently, Louis Vuitton established a watch museum at Beverly Hills to showcase their products. Rolex decided to develop a similar strategy to challenge its rivals to keep their business relevant in the market and increase their profit margins. In a period where consumers constantly crave fresh experiences, businesses are moving their spending plans from the brick and mortar retail to more brand activation efforts. Pop up shops are becoming more popular as they increase brand visibility.

It has been established that refining a business is a relentless duty that is necessary for the success of the company. A high profitability sector for any business lies in the improvement of the sales function and one way of doing that is through initiating new ideas that might increase them. The complete estimation of Swiss watch trades rose by 2.4% a year ago, as indicated by the Federation of Swiss Watch Industry, despite a critical drop of 11% to Hong Kong, the worlds biggest market (FH  Swiss Watch Exports in 2019). Rolex performed generally following the more extensive Swiss market which deals up 3% to CHF 5.2 billion out of 2019 (Corder). In the dynamic business environment that is constantly competitive, Rolex decided to open up an exhibition that would be located in the famous Times Square situated in the heart of New York City.

A spring up store is an incredible way to explore additional revenue streams for a business. They offer a unique opportunity to experiment with a companys products in a diverse demographic environment. The setup cost is significantly lower than setting up a traditional storefront since no leases are required. This exhibition will showcase Rolexs most iconic watch models such as the Submariner, GMT Master II, and Daytona that is a 1963 classic among others. Due to their temporary nature, pop-up exhibitions create a sense of scarcity in the human mind hence prompt purchases. They give the idea that products are running out making buyers ready to buy something on the spot. The retailer should also take advantage of this mass exclusivity mindset and slightly lower the prices which will create urgency to the buyers. Therefore, they will be less likely to delay purchases.

Picking Times Square as the desired location for their exhibition will be favorable for the company because it is a prime business intersection, with a plethora of tourists and affluent individuals. The growing need for picture-perfect experiences has seen people constantly traveling to big cities like New York. This area has thousands of passerby guests and is believed to be one of the most visited places in the world. Besides, the growing appetite for social media experiences and association with big brands will have more people visiting the pop-up exhibit. However, as much as this location attracts many people, the retailer needs to ensure it is more than an Instagram trap and actual sales will be made. They could introduce coupons at the entrance that can be redeemed for special discounts inside the exhibition and this way they will be able to keep track of the actual buyers.

The show is intended to commence in November and is expected to run all through the holiday season. It is required to have a significant closing date just before the New Year which is assessed to have the most elevated number of imminent purchasers. The launch date for the exhibition is scheduled for the 20th of November where celebrities will be in attendance to help push the brand and provide publicity for the exhibition. It will be a great opportunity to introduce new products to the market. A company needs to have the ability to explain its products, both new and old, to its potential buyers as it will create brand loyalty and strengthen the customer relationship.

Setting up the exhibition during the festive season is perfect since studies have shown that holiday shoppers make more in-store purchases as compared to any other time of the year. The most popular items purchased are usually gifts and apparel. However, most consumers start their shopping online before visiting the stores to make the actual purchase. Therefore to increase traffic to the exhibition, Rolex needs to advertise on social media and make it known that they will be having a pop-up store at Times Square. This will also make the customers optimistic and they will be looking forward to it. Additionally, the retailer needs to make the shopping experience interesting and seamless to maintain its brand exclusiveness. They could give the potential clients a virtual demo on what makes their products edgy or stroll them through the production process and the incredible features.

A big challenge to the expo will be the Covid 19 pandemic. The retailer should have safety measures put in place to avoid infections. The coupons they introduce for special discounts should also be day and time-sensitive. As a result, shoppers will only be able to visit at the specified period to avoid overcrowding. They should also ensure all shoppers and staff are in masks and have sanitizing stations spread out.

This proposition is designed to support the strategic plan of the organization and bring clarity of thought. In ensuring the accomplishment of this recommendation, a vital location is highly beneficial. This is because it will not only affect the profits projected but also increase the popularity of the Rolex brand. A location that best showcases these attributes is Times Square in New York City. It is a significant business crossing point, vacationer location, and neighborhood in the Midtown Manhattan part of New York. It is commonly known as the center of the universe due to the vast number of people it accommodates every day from residents to tourists and business individuals. The location also features massive displays and billboards which are great for advertising and Rolex should take advantage of this. They could project the activities happening inside the exhibit to reach customers who will not get an opportunity to visit it.

Since Rolex is an expensive luxury brand, it is important to attract the attention of the affluent in New York City. The wealthiest neighborhood is known to be the Upper East Side which is conveniently located in Manhattan just close to Times Square. This proximity is beneficial in gaining their attraction, and since they spend large amounts of money on luxury brands, it is an added advantage to the success of the exhibition in terms of profitable sales. Cooperating with clients up close and personal permits the retailer to address their interests on the spot and affect their purchasing choice.

As much as this location is well calculated for this project, it should be noted that it has its limitations. First and foremost, since it is a very busy area, attaining a permit and location for the pop-up is not easy. Earlier communication of up to months prior may be required or large sums of money might be used to attain the best location in Times Square. Secondly, insecurity poses a big challenge due to the large number of crowds experienced daily in the area. However, these limitations can be overcome by proper planning hence at least one month is required to have everything in place. An effective team is essential to the success of the implementation plan. A project manager is in charge of the overall venture and assigning the roles and responsibilities to other team members. Other staff includes those in sales and marketing, advertisements, finances, and human resource.

However, the pop-up shop might fail to meet the set expectations therefore it is important to have a contingency plan. This is a proposition that is formulated for a result other than the desired projected consequences. Various strategies are listed to mitigate common scenarios that could hamper the success of the exhibit and will be effectively implemented. On the off chance that the budget exceeds the projected expenditure, the company will have to let go of non-essential employees and adjust to a schedule that would comfortably work for the exhibition. If there is a sudden incident and there has to be a change of scene, the company shall have a backup location in the same city to ensure the exhibition runs as smoothly as planned. In case of last-minute changes such as unforeseen natural hazards, the company would reschedule the exhibition to a later date that could be convenient for the affected parties.

It should be noted that even if the project implementation phase runs smoothly, there is a probability that the exhibition might not bring expected results, meaning it shall not drive sales as projected. For this reason, the company shall appoint a committee that will carefully analyze the process to identify areas of weaknesses and propose a new recommendation that will be effective in place of the exhibition plan. To tackle the problem of losses the company shall start an auction event that will sample all their iconic watches and let potential buyers bid for the highest price.

In conclusion, pop up stores are an incredible method to shed old stock. They are a high impact and cost-effective brand activation tool. They give a prime occasion to brands to sell their remaining items and get some motivation for new ones from the clients they meet during the exhibition. This is a viable approach to introducing new merchandise, exploring a developing market, selling surplus stock, and promoting brand mindfulness. The best pop-ups regularly have an ideal item to market, or they might be coordinated to an occasional need or crowd. It is important to think past the limits of customary retail and use space, innovation, and substance to plan a store that supplements the brand.

Works Cited

Corder, Rob. Rolex Records Best-Ever Sales in 2019 to Reach Turnover of CHF 5.2 Billion.WatchPro, 2020.

FH  Swiss Watch Exports in 2019.

When it comes down to discussing what attracts people to a particular material object that they would like to own, it is important to understand what they consider the object’s perceptual value.

In its turn, this specific type of value cannot be discussed outside of what constitutes the desired object’s discursive significance.

In my paper, I will aim to explore the validity of this thesis at length, in regards to probably the most famous timepiece of all times – Oyster by Rolex, and in regards to Rolex wristwatches, in general.

Nowadays, it would prove rather challengeable to find even a single individual who would be not aspiring to own a Rolex watch, as something that is being capable of strengthening the acuteness of his or her sense of self-worth.

The reason for this is quite apparent – those who own Rolex wristwatches are assumed socially successful individuals, as the price for even the most ‘affordable’ of these watches is rarely lesser than $20.000.

At the same time, however, it is specifically the iconic status of Rolex wrist watches (especially Oyster), which contributes to these watches’ high monetary value more than anything else does.

What it means is that, for us to be able to define the actual essence of the phenomenon of Rolex watches’ popularity, we would have to make an inquiry into what accounts for the objective preconditions for this particular watch-brand to be considered legendary.

The reading of Bannister’s (2000) article will come in particularly handy, in this respect, because it reveals the fact that there are indeed several good reasons to consider Rolex, a pioneer of modern wristwatch-making.

According to the author, “In 1926 Rolex developed the product for which it is best known, the Oyster wristwatch, widely seen as the first truly waterproof watch. This was combined in 1931 with another Rolex invention, the self-winding watch, to produce the Oyster Perpetual” (p. A3).

In other words, one of the reasons why Rolex Oyster appeals to people so much is that the ownership of this watch implies the concerned individuals being a part of history.

And, as psychologists are well aware of, the sensation of historicity, on one’s part, is well capable of lessening the acuteness of his or her fear of death. Therefore, it may well be suggested that people’s desire to acquire Rolex Oyster reflects their subliminal strive to extend their existence into posterity.

Another reason why Rolex Oyster is considered a highly desirable timekeeping piece is that those who wear it are being commonly looked upon as financially secure individuals that can afford to buy luxury items, which in turn implies the Rolex owners’ existential superiority over non-owners.

The validity of this suggestion can be illustrated in regards to the fact that biologically speaking, the representatives of Homo Sapiens species are nothing but primates, which never cease being preoccupied with two primary pursuits – ensuring their access to the limited natural resources and imposing their dominance upon others.

What it means is that, on an unconscious level, individuals subtly perceive the significance of one’s ownership of Rolex Oyster in evolutionary terms – those who own it are considered worthy of passing their genes to the representatives of a next generation.

This points out to another discursive aspect of Rolex Oyster’s popularity, which can be discussed within the context of what accounts for the essence of currently predominant socio-political ideologies in Western countries.

After all, it does not represent much of a secret that, as of today, people in Western countries are being indoctrinated to believe in the validity of several different egalitarian concepts.

For example, it now represents a commonplace practice among Western politicians and educators to promote the idea that all people are equal, regardless of what happened to be the specifics of their ethnocultural affiliation and their association with a particular social strata.

Even though citizens do accept the soundness of this idea consciously, they simultaneously reject it on an instinctual level.

This simply could not be otherwise, because the idea of egalitarianism contradicts the most basic laws of nature, to which people are being subjected to the same extent, as it happened to be the case with plants and animals.

Therefore, people’s fascination with Rolex watches may be discussed as such that reflects their mental opposition to the earlier mentioned idea. The presence of Rolex Oyster on one’s wrist conveys the subtle message, ‘I am superior to those who cannot afford to buy the same watch.’

Nevertheless, it would not be quite appropriate to suggest that the Oyster’s perceptional value is being solely concerned with this wristwatch’s high monetary price.

This is because, apart from being considered particularly accurate timepieces, Rolex watches are being commonly regarded as an epitome of the so-called ‘Faustian’ values.

In their turn, these values derive out of the assumption that, “Individual’s willpower must never cease combating obstacles, that the catastrophes of existence come as an inevitable culmination of past choices and experiences, and that the conflict is the essence of existence” (Greenwood, 2009, p. 53).

As compared to what it is the case with the representatives of non-Western ‘holistic’ cultures, who strive to blend with the surrounding environment, Westerners have always been known for their tendency to seek means to control it.

However, for people to be able to do it, they must be capable of acting as the agents of the environment’s continual transformation.

In its turn, this can only be achieved by the mean of people subjectivizing themselves within the environment mentally, which consequently causes them to become particularly sensitive to the flow of time.

This is exactly the reason why; whereas, holistically minded individuals that were born and raised in non-Western societies tend to lead an essentially ‘timeless’ existence (which is why Third World countries are being traditionally associated with the absence of societal progress), Westerners appear to lead extremely time-conscious lifestyles.

This explains the reason why the watch-making philosophy, in general, and Rolex wristwatches, in particular, are being strongly associated with Switzerland – a country located in the middle of Europe.

This also explains why Rolex Oyster is being featured in James Bond movies. Given the fact that these movies are being concerned with the celebration of the earlier mentioned ‘Faustian’ values; it does make a logical sense that these movies’ main character prefers wearing a Rolex Oyster.

Allegorically speaking, it symbolizes the fact that, just as it happened to be the case with this waterproof wristwatch, which performs well at a depth of 500 meters, Bond is being thoroughly capable of operating amid a particularly hostile social environment, without sustaining any damage (Holbrook, 2001).

Therefore, it is rather natural for those who have been exposed to James Bond films to try to mimic the agent 007’s act – even if this mimicking, on their part, is being concerned with the process of purchasing Rolex Oysters and displaying them proudly on their wrists.

The earlier expressed idea partially explains why, throughout recent decades, Rolex watches were becoming especially popular with Asians.

As Chadha & Husband (2006) noted, “It is normal for Hong Kong people, whether wealthy tycoons or your average Joe, to own several expensive Swiss watches, such as Rolex” (p. 2).

Deep inside these people do realize the fact that their current financial/economic well-being may not be thoroughly justified, because despite having proven themselves extremely efficient copy-makers, they nevertheless lack the sense of ‘Faustian’ creativeness – the main precondition of people’s ability to push forward cultural and scientific progress.

Therefore, it may be speculated that by having Rolex watches on their wrists, Asians can attain the surrogate sensation of being integral parts of Western civilization.

The fact that there is an undeniable aura of ‘westerness’ to Rolex watches, which accounts for much of the Oyster’s perceptual worth, can also be illustrated in regards to the company watchmakers’ practice of accentuating the mechanical complexity of this particular wristwatch.

This is being done by the mean of having wristwatches’ backs made out of sapphire crystals so that owners can always enjoy seeing mechanisms at work.

The potential owners of Rolex Oysters have assumed sophisticate individuals, capable of deriving an aesthetic pleasure out of being exposed to the mechanical perfection of wristwatches’ functioning (Lee, Christensen & DeRosia, 2008).

This again implies that it is specifically individuals that emotionally relate to the ‘Faustian’ existential values, which may appreciate Rolex watches to their fullest.

This is because the faultless functioning of Rolex wristwatch-mechanisms symbolizes the victory of the Western genius over the blind forces of energetic entropy – something that can only be appreciated by euro-centrically minded individuals, or by those who despite their non-Western cultural backgrounds, are nevertheless being fascinated by Western civilization.

The discursive subtleties of Rolex watches’ perceptual appeal can also be discussed in regards to the material, out of which they are being made – gold. It is understood, of course, that this fact alone contributes rather immensely to the de facto value, these watches represent.

After all, gold has traditionally been considered one of the most sought-after and rare precious metals. There is, however, even more to it – gold has several unique chemical characteristics, which set it apart from other precious metals.

For example, “Gold is the most malleable and ductile of all metals; a single gram can be beaten into a sheet of one square meter, or an ounce into 300 square feet” (HIG, 2012, para. 4). Gold is also a supreme electricity-conductor that never corrodes.

Nevertheless, it is only when gold remains pure, in the chemical sense of this word, that it can exhibit these characteristics.

If some other metals are being fused with gold, it is not only that this precious metal significantly drops in value, but it also results in gold’s purity being undermined forever, as it often proves an impossible challenge to restore the tainted gold’s chemical integrity.

This is why there has always been a strong connotation of ‘nobleness’ to gold.

Therefore, people who can afford to buy Rolex Oyster, made out of gold, unconsciously strive to attest to themselves and others that their riches are far from being incidental because by wearing this watch, the concerned individuals do exhibit their unconsciously felt affiliation with the notion of ‘purity.’

In its turn, this helps them to maintain the integrity of their self-identities and to confirm the validity of their rather non-egalitarian worldviews.

Thus, there is indeed a perfect logical rationale to the fact that Rolex’s logo features a royal crown – this is meant to emphasize the true existential status of this brand’s watch-owning affiliates.

There are, of course, several more conventional undertones to the discursive significance of Rolex watches, in general, and Rolex Oyster, in particular.

For example, because Rolex automatic watches are being traditionally deemed thoroughly accurate, people who wear them expect to be referred to as completely reliable individuals, who know how to appreciate the time.

Also, Rolex watches especially appeal to those people who tend to establish dialectical links between the spirit of prestigiousness, emanated by a particular brand name, and the actual quality of brand-name-products in question.

As Vigneron and Johnson (1999) pointed out, “The reassurance consumers derive from prestige brands (e.g., of tradition, of authenticity) enhances the value they derive from the use of the product” (p. 8).

The fact that, despite the outrageously high price of Rolex timepieces, there has never been the shortage of buyers, confirms the legitimacy of this statement.

These paper’s argumentative points, as to what should be considered the integral elements of Rolex wristwatches’ discursive appeal, can be summarized as follows:

1. Historicity – by owning Rolex wristwatches, people can personally relate to the most significant breakthroughs in the history of Western watch-making.
2. Darwinian fitness – since the overwhelming majority of Rolex owners consist of socially successful individuals, their ownership of this particular brand’s timepieces signifies a high degree of their existential competitiveness.
3. Perceptual elitism – the mere fact that people wear Rolex watches exactly to emphasize the integrity of their sense of self-worth suggests that, on an unconscious level, they oppose the ideals of social egalitarianism.
4. Subliminal opposition to the doctrine of political correctness – because Rolex wristwatches emanate a strong spirit of euro-centrism, there is a good reason to consider those who wear them is not particularly enthusiastic about the ‘celebration of diversity’ policy.
5. Manliness – because Rolex watches (specifically, Rolex Oyster) are being commonly associated with the character of James Bond, there can be few doubts as to the fact that Rolex owners are innately predisposed to tackle life-challenges in an unemotional and rationale-driven manner – just as this movie character does.
6. Celebration of purity – the material, out of which Rolex watches are being made (gold), implies their owners’ emotional affiliation with the notion of purity.

I believe that the provided earlier line of analytical argumentation, in regards to the discussed subject matter, is being fully consistent with the paper’s initial thesis.

Rolex wristwatches are not only is meant to serve as time-measuring devices but also as the tools of identity-enhancing. This is the reason why these wristwatches have such a strongly defined iconic status.

References

Bannister, N. (2000). Brand values: Rolex: A short history of the timepiece. The Guardian, p. A3.

Chadha, R. & Husband, P. (2006). Cult of the luxury brand: Inside Asia’s love affair with luxury. Yarmouth: Nicholas Brealey Publishing.

Greenwood, S. (2009). Anthropology of magic. Oxford: Berg Publishers.

Holbrook, M. (2001). The millennial consumer in the texts of our times: Exhibitionism. Journal of Macromarketing, 21 (1), 81-95.

Lee, T., Christensen, G. & DeRosia, E. (2008). Trademarks, consumer psychology, and the sophisticated consumer. Emory Law Journal, 57 (3), 575-650.

The characteristics of gold. (2012). HIG. Web.

Vigneron, F. & and Johnson, L. (1999). A review and a conceptual framework of prestige-seeking consumer behavior. Academy of Marketing Science Review, 9 (1), 1-23.

This essay provides a comprehensive strategy that will help Rolex to effectively compete with top rival brands such as Louis Vuitton and eventually improve their sales. The focus is to explore the best product, price, place, and promotion measures to illustrate why this pop-up will be suitable for the brand. This strategy includes a step-by-step road map that begins with a detailed recommendation, implementation, and finally a contingency plan if the desired strategy fails to meet the company’s expectations.

Rolex is a Swiss-based company that manufactures watches and has been in operation since the beginning of the 19th century. Over the years, several rival companies joined the watch manufacturing industry and competition became high. Brands such as Louis Vuitton also started to produce high-end luxury watches. Recently, Louis Vuitton established a watch museum at Beverly Hills to showcase their products. Rolex decided to develop a similar strategy to challenge its rivals to keep their business relevant in the market and increase their profit margins. In a period where consumers constantly crave fresh experiences, businesses are moving their spending plans from the brick and mortar retail to more brand activation efforts. Pop up shops are becoming more popular as they increase brand visibility.

It has been established that refining a business is a relentless duty that is necessary for the success of the company. A high profitability sector for any business lies in the improvement of the sales function and one way of doing that is through initiating new ideas that might increase them. The complete estimation of Swiss watch trades rose by 2.4% a year ago, as indicated by the Federation of Swiss Watch Industry, despite a critical drop of 11% to Hong Kong, the world’s biggest market (FH – Swiss Watch Exports in 2019). Rolex performed generally following the more extensive Swiss market which deals up 3% to CHF 5.2 billion out of 2019 (Corder). In the dynamic business environment that is constantly competitive, Rolex decided to open up an exhibition that would be located in the famous Times Square situated in the heart of New York City.

A spring up store is an incredible way to explore additional revenue streams for a business. They offer a unique opportunity to experiment with a company’s products in a diverse demographic environment. The setup cost is significantly lower than setting up a traditional storefront since no leases are required. This exhibition will showcase Rolex’s most iconic watch models such as the Submariner, GMT Master II, and Daytona that is a 1963 classic among others. Due to their temporary nature, pop-up exhibitions create a sense of scarcity in the human mind hence prompt purchases. They give the idea that products are running out making buyers ready to buy something on the spot. The retailer should also take advantage of this mass exclusivity mindset and slightly lower the prices which will create urgency to the buyers. Therefore, they will be less likely to delay purchases.

Picking Times Square as the desired location for their exhibition will be favorable for the company because it is a prime business intersection, with a plethora of tourists and affluent individuals. The growing need for picture-perfect experiences has seen people constantly traveling to big cities like New York. This area has thousands of passerby guests and is believed to be one of the most visited places in the world. Besides, the growing appetite for social media experiences and association with big brands will have more people visiting the pop-up exhibit. However, as much as this location attracts many people, the retailer needs to ensure it is more than an Instagram trap and actual sales will be made. They could introduce coupons at the entrance that can be redeemed for special discounts inside the exhibition and this way they will be able to keep track of the actual buyers.

The show is intended to commence in November and is expected to run all through the holiday season. It is required to have a significant closing date just before the New Year which is assessed to have the most elevated number of imminent purchasers. The launch date for the exhibition is scheduled for the 20th of November where celebrities will be in attendance to help push the brand and provide publicity for the exhibition. It will be a great opportunity to introduce new products to the market. A company needs to have the ability to explain its products, both new and old, to its potential buyers as it will create brand loyalty and strengthen the customer relationship.

Setting up the exhibition during the festive season is perfect since studies have shown that holiday shoppers make more in-store purchases as compared to any other time of the year. The most popular items purchased are usually gifts and apparel. However, most consumers start their shopping online before visiting the stores to make the actual purchase. Therefore to increase traffic to the exhibition, Rolex needs to advertise on social media and make it known that they will be having a pop-up store at Times Square. This will also make the customers optimistic and they will be looking forward to it. Additionally, the retailer needs to make the shopping experience interesting and seamless to maintain its brand exclusiveness. They could give the potential clients a virtual demo on what makes their products edgy or stroll them through the production process and the incredible features.

A big challenge to the expo will be the Covid 19 pandemic. The retailer should have safety measures put in place to avoid infections. The coupons they introduce for special discounts should also be day and time-sensitive. As a result, shoppers will only be able to visit at the specified period to avoid overcrowding. They should also ensure all shoppers and staff are in masks and have sanitizing stations spread out.

This proposition is designed to support the strategic plan of the organization and bring clarity of thought. In ensuring the accomplishment of this recommendation, a vital location is highly beneficial. This is because it will not only affect the profits projected but also increase the popularity of the Rolex brand. A location that best showcases these attributes is Times Square in New York City. It is a significant business crossing point, vacationer location, and neighborhood in the Midtown Manhattan part of New York. It is commonly known as the center of the universe due to the vast number of people it accommodates every day from residents to tourists and business individuals. The location also features massive displays and billboards which are great for advertising and Rolex should take advantage of this. They could project the activities happening inside the exhibit to reach customers who will not get an opportunity to visit it.

Since Rolex is an expensive luxury brand, it is important to attract the attention of the affluent in New York City. The wealthiest neighborhood is known to be the Upper East Side which is conveniently located in Manhattan just close to Times Square. This proximity is beneficial in gaining their attraction, and since they spend large amounts of money on luxury brands, it is an added advantage to the success of the exhibition in terms of profitable sales. Cooperating with clients up close and personal permits the retailer to address their interests on the spot and affect their purchasing choice.

As much as this location is well calculated for this project, it should be noted that it has its limitations. First and foremost, since it is a very busy area, attaining a permit and location for the pop-up is not easy. Earlier communication of up to months prior may be required or large sums of money might be used to attain the best location in Times Square. Secondly, insecurity poses a big challenge due to the large number of crowds experienced daily in the area. However, these limitations can be overcome by proper planning hence at least one month is required to have everything in place. An effective team is essential to the success of the implementation plan. A project manager is in charge of the overall venture and assigning the roles and responsibilities to other team members. Other staff includes those in sales and marketing, advertisements, finances, and human resource.

However, the pop-up shop might fail to meet the set expectations therefore it is important to have a contingency plan. This is a proposition that is formulated for a result other than the desired projected consequences. Various strategies are listed to mitigate common scenarios that could hamper the success of the exhibit and will be effectively implemented. On the off chance that the budget exceeds the projected expenditure, the company will have to let go of non-essential employees and adjust to a schedule that would comfortably work for the exhibition. If there is a sudden incident and there has to be a change of scene, the company shall have a backup location in the same city to ensure the exhibition runs as smoothly as planned. In case of last-minute changes such as unforeseen natural hazards, the company would reschedule the exhibition to a later date that could be convenient for the affected parties.

It should be noted that even if the project implementation phase runs smoothly, there is a probability that the exhibition might not bring expected results, meaning it shall not drive sales as projected. For this reason, the company shall appoint a committee that will carefully analyze the process to identify areas of weaknesses and propose a new recommendation that will be effective in place of the exhibition plan. To tackle the problem of losses the company shall start an auction event that will sample all their iconic watches and let potential buyers bid for the highest price.

In conclusion, pop up stores are an incredible method to shed old stock. They are a high impact and cost-effective brand activation tool. They give a prime occasion to brands to sell their remaining items and get some motivation for new ones from the clients they meet during the exhibition. This is a viable approach to introducing new merchandise, exploring a developing market, selling surplus stock, and promoting brand mindfulness. The best pop-ups regularly have an ideal item to market, or they might be coordinated to an occasional need or crowd. It is important to think past the limits of customary retail and use space, innovation, and substance to plan a store that supplements the brand.

Works Cited

Corder, Rob. “Rolex Records Best-Ever Sales in 2019 to Reach Turnover of CHF 5.2 Billion.”WatchPro, 2020.

FH – Swiss Watch Exports in 2019.

Executive Summary

The essay is an exposition into the promotional efforts of Rolex. Rolex sells high-end products in high-end market. The aim of the essay is to understand the marketing strategy of Rolex and look into the company’s latest promotional campaign. The essay also identifies the segmentation strategy of Rolex and its target customers. The essay analyses the marketing strategy using the four Ps concepts. The essay also shows that Rolex is expanding its target segment and its promotional strategy is aimed at targeting new customer.

Product

This essay studies the marketing strategy of chronographs, which is essentially a timepiece that is supposed to give accurate time, produced and marketed by Rolex. These high-end watches are priced very high. Hence, the marketing campaign that the products follow is unlike that of mass marketing consumer products. The main aim of the marketing campaigns used for a Rolex watch is to stress on the brand and its uniqueness.

The campaigns demonstrate the distinctiveness and the design of the product. The advertisements for a Rolex watch usually demonstrate the product very clearly through a message produced through celebrity endorsement. The marketing campaigns are clear as they clearly show the kind of people who are the targets for the product – rich, affluent, successful people. Marketing campaigns for Rolex, watches display style and luxury.

Marketing Campaign for Rolex Watches

Rolex has traditionally marketed to the rich and affluent men. However, recently the company has targeted its marketing campaigns towards women. Retaining their generic luxury watch branding strategy, the company has diversified its target market and hence male and female celebrities are now endorsing the advertisements. Rolex’s advertising strategy entails celebrity endorsements.

In order to cater to a certain economic class the company meticulously positions itself targeting the rich and the ones who crave for “class” rather than “beauty” ^[1](Hodinkee). This is evident from the taglines used in previous Rolex advertisements such as “Class is forever”^[2] (OyesterInfo).

Segmentation

Traditionally luxury watches like Rolex chose an income segment of very rich individuals. Overall, the luxury watch market has three types watch brands – the exclusive luxury segment, the affordable luxury segment, and the mid and low range luxury segment. This categorization is based on the brand’s pricing policy.

The advertisement campaign clearly demonstrates the market segment that the brand wants to capture. Rolex sells its product in the exclusive luxury segment. The advertisement campaigns of Rolex demonstrate that it is an expensive product. In a recent advertisement campaign by Rolex, the advertisement demonstrated a high-rise corporate office and the tagline stating, “If you were speaking here tomorrow you would wear a Rolex”. This implied that if one were rich enough tomorrow one would want to wear a Rolex watch.

Target

The target customers for Rolex watches are wealthy and successful professionals of either sex. The advertisements are placed accordingly to reach the targeted demographics i.e., wealthy professionals. Rolex puts in its print advertisements in high-end lifestyle magazines like Monocle.

Rolex uses multiple celebrity endorsement for their ad campaigns in order to represent strong and successful professionals. Rolex uses endorsers (see figure 1) like tennis player Roger Federer with tags “Let’s not talk history yet. He’s still making it” and No. 1 women’s golfer Lorena Ochoa with the tag, “Rolex. A crown for every achievement” (Rolex)^[3]. The target customers for Rolex are both male and female.

Competitive Positioning of the Product

The emerging economies have become a melting pot for all luxury items, and watches are no exception. According to the predictions of analysts by 2018, Asia Pacific will be biggest market for luxury goods (Wang)^[4]. This presents a unique opportunity for luxury watch brand like Rolex.

In order to remain competitive, Rolex must understand which companies are its direct and indirect competitors. Substitutes too can emerge as a threat and therefore, understanding the strategy of substitutes is also important. One of the competitive advantages of Rolex is its brand recognition and loyalty. The direct competitors of Rolex are other luxury watch brands like Omega, Longines, Cartier, Chanel, Patek Philippe, etc. Figure 2 below shows the market share of the various luxury brands.

Marketing strategy

This section presents the marketing strategy of Rolex using the four Ps concept of marketing. The products that are presently marketed by Rolex are divided into three collections – Oyster collection, new 2013 collection, and Cellini Collection. The oyster collection boasts of “elegance and prestige” (Rolex)^[6] and has twenty models in the collection.

The second collection is the new 2013 collection of Rolex is a new collection of chronometers with cutting-age technology instilled in them to attract the new generations and retaining their old classiness. The third collection is the Cellini collection (Rolex)^[7]. The second concern is that of pricing. The watches sold by Rolex are priced high (usually above $5000). The pricing strategy goes with their promotion and positioning strategy.

Further, as their products are made with very expensive raw material and they happen to be fitted with the best quality technology. The high price is equivalent to the positioning of the product as a luxury item. Superior position entails niche products with high degree of differentiation and concentration on pricing. The products are positioned in a niche market as luxury brand with high pricing.

An analysis of the macro and the microenvironment helps to ascertain the threats and opportunities that are present for the brand in the market. In case of Rolex, the threat is the aging demographics of the target market of the brand. With aging population, the taste and preference of people are changing considerably, which has inculcated a threat to the organization’s product demand (Forster)^[8]. Thus, the aim of Rolex should be to target younger target market (Onofrei)^[9].

The market segment that the company has placed its product is in the luxury market, and the prices are high as they are placed in the luxury market. Rolex watches are branded as a symbol of superiority. For instance, older advertisement campaigns of the company had tag lines like “If you were looking for lost empires here tomorrow you’d wear a Rolex” (OyesterInfo)^[10]. The positioning of the product is that of excellence and symbol of success. The promotional strategy of Rolex can be categorized into following classes –

1. Television commercials.
2. Print advertisements.
3. Sponsors of gaming events (e.g. Wimbledon).
4. Embedded advertisements (e.g. James Bond movies).

In television, the advertisements are usually placed in the lifestyle or sports channels showing major sporting events like tennis and golf. Usually, Rolex advertisements accompany airing of James Bond movies. Rolex spends most in newspaper and magazine advertisements.

Objective of the marketing strategy

The aim of the present marketing strategy is to attract the new generation of consumers – men and women, more technology oriented, but still looking for exclusivity in their watch.

Short term action plan

The short-term action plan of the company is to generate advertisement campaign that would target the new age customers, who are not constraint to the traditional sports or professionals. These people are associated with various fields of profession and are successful in their profession. The plan is to attract these customers, retaining their timeless appeal.

Measures of success

The key factors that will demonstrate the success of the marketing campaign are – increase in sale in different parts of the geography, increase in sale of their watches made for women, and increase in sale of their products in different age demographics.

Cost of the plan – approximate expense

Rolex spends a lot in its advertisement campaigns. Most of the advertisements are print advertisements published in high-end magazines and newspapers. The advertisement expenditure of Rolex is higher compared to its competitors in the luxury watch market (see figure 3).

Estimated payoff

The payoff of such an expensive advertisement campaign of Roles is its brand value. Rolex is the most valuable brand of the world with a brand value of 7.4 billion and revenue of 4.5 billion in 2012 (Rolex)^[12].

Conclusion

The brand of Rolex is well known and the marketing strategy that the company has employed is same for many years. Rolex targets rich professionals and the products are priced high. The promotion of the brand is done in high-end magazines or through sports. The advertisement campaigns usually have celebrity endorsement to demonstrate the exclusive status of the brand. Overall, Rolex follows a well-rounded marketing strategy.

Works Cited

Adams, Ariel. Wrist Watch Brands & Models Of High Value. 2013. Web.

Forster, Jack. “The Rolex Problem.” 2012. Forbes. Web.

Hodinkee. “A Quick Look At The New Rolex Ad Campaign: Highlighting Innovators And Rolex Wearers.” 2013. Hodinkee. Web.

MPP-ME. “Advertising Spend (Part 2/5)-Watch & Jewellery Sector Analysis”. MPP-ME. 2013. Web.

Onofrei, Ioana. “How Rolex could become a prisoner of its own strategy.” Brand Magazine. 2012. Web.

OyesterInfo. “Rolex Advertisments.” 2013. Web..

Rolex. “About Rolex.” 2013. Rolex. Web.

Wang, Lisa. “Luxury Sales to Exceed $318 Billion, Driven by Emerging Markets and ‘Affordable Luxury’.” 2013. Web.

Footnotes

1. The article presents a clear idea of the nature of promotions that Rolex practiced historically.
2. The website also archives older advertisments of Rolex and other premium watches.
3. Rolex’s website has information regarding the company’s past marketing strategy and future strategies that the company intends to adopt.
4. The article by Lisa Wang is exceedingly informative and provides insight into the prospect emerging markets hold for luxury goods.
5. The data collected for the essay has been taken from this website.
6. Rolex website is rich with the current products that the company markets.
7. Rolex website is rich with the current products that the company markets.
8. Rolex faces problems from competitors and their dated promotional strategy. The article presents the reasons for Rolex’s problems.
9. This article too states the problem with Rolex is its inability to attract new generations.
10. Advertisements of Rolex have been discussed in detail in this article.
11. The article presents the expenditure of luxury watch companies.
12. Information from the company website is elaborate and helpful.

Introduction

Marketing strategy of a company, in practice and theory, is often replete with gaps. Often, marketers have deviated from the theoretical principles to develop their own set of rules that they have dubbed more useful in marketing and selling their product.

This paper is a case study analysis of Rolex. The main objective of the paper is to ascertain the gap in the marketing strategy and principles adopted by Rolex with that of the theoretical marketing framework presented by McDonald and using anatomy of world class marketing.

WCM

This analysis is done using the 10 points of world class marketing developed by Malcolm McDonald. The first point shows the market orientation of the company. The first point entails that it is the work of the company. It is the job of the top management to instill among its employees the ideal of customer orientation.

In other words, customer orientation has to be enhanced in order to ensure greater possibility of creating products that would satisfy the customers. In case of Rolex, the company has historically paid a lot of attention to the product that they created. As the company sells luxury products, it makes sure that all the qualities of luxury are presented in the watches crafted by the company.

Further, the customers should be made a vehicle for promotion. This can be attained only by making high quality products. A high quality product that satisfies the customers exceedingly would ensure that he/she promotes it to his/her peers. Rolex has achieved this through its quality and brand name. Thus, the first point of McDonald has been satisfied by Rolex’s marketing strategy.

Rolex is a luxury watchmaker. The company is famous for its unique targeting, segmenting, and positioning of their product. However, with the change in the generations and ushering of the new generation who is more inclined towards new fast moving technology than a timeless timepiece, Rolex faces a challenge as to how they can attract these new emerging customers. In this section, we will first discuss the marketing strategy of Rolex.

Usually companies carry out extensive research and analysis before formulating the four Ps of marketing – price, promotion strategy, place, and product. We undertake a thorough research of the marketing strategy and mix of Rolex.

The target customers for Rolex are both male and female. Targeting both the demographic section is advantageous and helps the company to spread its market.

Rolex’s advertising strategy entails celebrity endorsements. In order to cater to a certain economic class the company meticulously positions itself targeting the rich and the ones who crave for “class” rather than “beauty” . This is evident from the taglines used in previous Rolex advertisements such as “Class is forever” .

The products that are presently marketed by Rolex can be broadly divided into three collections – Oyster collection, new 2013 collection, and Cellini Collection. The oyster collection boasts of “elegance and prestige” and has twenty models in the collection.

The second collection is the new 2013 collection of Rolex is a new collection of chronometers with cutting-age technology instilled in them to attract the new generations and retaining their old classiness. The third collection is the Cellini collection .

The second point as enumerated by McDonald is to understand the sources of competitive advantage for the brand. McDonald has segregated this into three categories – superior position, skills, and resources. Superior position entails niche products with high degree of differentiation and concentration on pricing. The products are positioned in a niche market as luxury brand with high pricing.

The watches sold by Rolex are priced high. The pricing strategy goes with their promotion and positioning strategy. Further, as their products are made with very expensive raw material and they happen to be fitted with the best quality technology. The high price is equivalent to the positioning of the product as a luxury item.

Understanding the environment of the company has a specific implication on the marketing strategy of the company. An analysis of the macro and the microenvironment helps to ascertain the threats and opportunities that are present for the brand in the market.

In case of Rolex, the threat is the aging demographics of the target market of the brand. With aging population, the taste and preference of people are changing considerably, which has inculcated a threat to the organization’s product demand . Thus, the aim of Rolex should be to target younger target market

Luxury brands have swept over to the emerging economies. All marketers of different luxury items from automobiles to wristwatches have started targeting the developing, emerging market of the Asian giants like China and India . According to the predictions of analysts by 2018, Asia Pacific will be biggest market for luxury goods . This presents a unique opportunity for luxury watch brands.

The fourth point that is enumerated is to understand one’s competition. The company should categorically understand who their direct and potential competitors are. Further, they should also be aware of the substitutes, backward and forwards integration competitions, and of the competitor’s strength and weaknesses.

The major potential of Rolex is that it is in the luxury brand market, which is highly driven by brand loyalty and recognition. The direct competitors of Rolex are other brands like Omega, Longines, Cartier, Chanel, Patek Philippe, etc.

Further, Rolex faces the threat of fake products in the market. This provides a stiff competition in price-sensitive Asian markets.

The fifth is to understand the market segment. The market segment that the company has placed its product in is the luxury market, and the prices are high as they are placed in the luxury market. Rolex watches are branded as a symbol of superiority.

For instance, older advertisement campaigns of the company had tag lines like “If you were looking for lost empires here tomorrow you’d wear a Rolex” . The positioning of the products is that of excellence and symbol of success. The promotional strategy of Rolex can be categorized into following classes –

1. Advertisements in televisions.
2. Print advertisements in magazines and newspapers.
3. Sponsors of gaming events like Wimbledon.
4. Embedded advertisements in movies like those of James Bond.

In television, the advertisements are usually placed in the lifestyle or sports channels showing major sporting events like tennis and golf. Usually Rolex advertisements accompany airing of James Bond movies. Rolex spends most in newspaper and magazine advertisements.

Promotions help companies to familiarize their products to the customers. However, what is promotion to a luxury brand like Rolex? The promotional strategy of Rolex is to sell the idea of the class that Rolex attaches to itself. Rolex is not promoted as just a brand, but as a way of life, as class, as society.

For instance, the Oyster models of Rolex was first introduced in 1926 as the first waterproof watches and since then has clad the wrists of many famous personalities but as timeless is the brand the essence of the clean, utilitarian design of Rolex has not lost its edge .

The tables below show advertisement expenditures of Rolex and its competitors in magazines and newspapers.

The sixth point is ascertaining the strength and weakness of the brand. In this case, Rolex’s strength is its product’s unique style and positioning. The weakness of the brand is its present appeal to the older target customers, and inability to target newer generations.

The seventh point is to understand the dynamic market for the product, i.e. to conduct a life cycle analysis. Life cycle analysis helps in ascertaining the position in the life cycle where the product lies.

The eighth point suggested by McDonald is to have a strong portfolio of products. The products that are offered by Rolex are unique and timeless. Their appeal is great as each are made differently and crafted in different styles.

The ninth point shows that a company should formulate a strategic marketing policy and stick to it. In case of Rolex, the company has adhered to its niche marketing strategy since the beginning and therefore its charm and demand has not faltered.

The last point presented appeals to the companies to maintain a professional attitude in promoting and marketing its products. It is important for the company to understand all the above marketing tools and continually evaluate its products using these tools in order to make predictions of any impending changes in future.

Marketing Leadership Council (MLC)

Marketing leadership council is the new-age marketing tool that helps marketing leaders to change the way they have so far addressed the long-standing conventional wisdom. MLC is usually associated with the corporate executive board. The main areas that the MLC program looks into are – research, peer benchmarking, networking, online learning, best practices, support system, and diagnostic tools.

The main aim of the council is to help its members to benchmark their performance, risk factors, operational process, human resources, and transition of leadership. The MLC has provided certain aspects of business through their researches, which helps companies to benchmark their performance. This model enumerates the need to enhance presence in social media.

They believe more customers can be influenced through promotions in the social media. In case of Rolex, the presence of the company remains scant in any of the social networking websites. Very few online campaigns have been launched by Rolex so far.

One reason may be that the target customers are not same as the social network users. However, one must note that in order to target newer generations, Rolex must embrace innovative methods of marketing that other companies have already started to embrace.

The idea of MLC is not to teach the customers but to un-teach them. MLC dictates that marketers should strive to un-teach what customers already know about the product or brand. However, in case of Rolex, this rule may not apply, as the basis of Rolex’s success is what the customers already know about the brand.

Un-teaching that would deplete their existing brand name. the idea of the company was to make sure that the perception of the customers is properly molded through previous advertisements, which, unfortunately, the MLC model suggests to change. Therefore, this differs from the WCM point, which states that the brand should utilize its core competencies.

In this respect, the question that arises is, if the niche promotional strategy adopted by Rolex following the WCM model is apt for the company today. The question that arises is why does Rolex follow a niche promotional strategy?

The answer to the question is simple – Rolex’s product and positioning does not support and/or demand a mass-marketing strategy. Niche promotional strategy is apt for a brand like Rolex that sells only luxury items and that too, to a niche target market.

Conclusion

The overall analyses of the two models demonstrate that Rolex has been following the WCM model more closely than the MLC model. The WCM model is more theory oriented while MLC is more application oriented. The company’s present marketing strategy demonstrates that they have continued to follow their old strategy and have not undertaken any effort to embrace the new age marketing principles.

This has intensified their problem of targeting new age customers. Based on the above study it can be intuitively said that Rolex needs to change the way their marketing team thinks and perceives their brand.

References

Adams, A. 2013, Wrist Watch Brands & Models Of High Value. Web.

Forster, J. 2012, The Rolex Problem. Web.

Hodinkee 2013, A Quick Look At The New Rolex Ad Campaign: Highlighting Innovators And Rolex Wearers. Web.

Klara, R. 2013, How Rolex Runs on Autopilot Educating is no longer necessary. Web.

McDonald, MHB, Chernatony, L. D. & Harris, F. 2001, ‘Corporate marketing and service brands – Moving beyond the fast-moving consumer goods model’, European Journal of Marketing, vol 35, no. 3/4, pp. 335 – 352.

McDonald, M. & Wilson, H. 2011, Marketing Plans: How to Prepare Them, How to Use Them, John Wiley & Sons, London.

MPP-ME 2013, Advertising Spend (Part 2/5)-Watch & Jewellery Sector Analysis, Web.

Onofrei, I. 2012, How Rolex could become a prisoner of its own strategy, Web.

OyesterInfo 2013, Rolex Advertisments. Web.

Rolex 2013, About Rolex. Web.

Wall Street Week 2013, Emerging Markets Drive Luxury Goods, Web.

Wang, L. 2013, Luxury Sales to Exceed $318 Billion, Driven by Emerging Markets and ‘Affordable Luxury’. Web.

Introduction

Swiss watches have been known for their high-end quality and price. Among many Swiss watch manufacturers, Rolex is one of the most prestigious and expensive. To sustain the company that operates in the luxury segment, it is vital to deliver products of exceptional quality. This paper provides an overview of the current changes in consumer behavior, the target consumer market of the company, and retailers that sell Rolex watches.

Current Customer Needs and Supporting Trends

Rolex has been one of the most popular luxury watch manufacturers for many years. The quality of its products has ensured continuous interest on behalf of its target customer market. However, as changes in consumer behavior become more apparent, the company has to take immediate measures if it wants to retain its position as a global leader in watchmaking. The globalization of the economy has led to the fact that any person around the world has a plethora of options to choose from when buying a product. Consumers see that the same level of quality can be purchased for less money. For instance, Omega produces luxury watches of comparable quality for half the price. Therefore, it has been able to attract away some of Rolex’s customers. There are two options for Rolex – it can reduce the cost of its goods to be able to compete with other manufacturers. Another possible solution is to revise its brand positioning strategy to distinguish it from the competitors clearly.

Target Customer Markets

The main customers of Rolex are consumers of age older than 35. The company primarily targets wealthy individuals that value quality and want to showcase their capital by wearing a luxury watch. Therefore, in geographic terms, Rolex is present in cities and regions with a high density of rich businesspersons, like New York, Singapore, and Hong Kong. The younger population does not view watches as a means for demonstrating class, and therefore, are rarely interested in the company’s products. As generations change, Rolex may lose its market share because of the fact that its target customer segment will seize to exist. Therefore, the company is considering people that are between 21 and 35 years old as its secondary market. To achieve success in this segment, Rolex has to start offering different watches at reasonable prices.

Target Retailer Markets

In order to retain its image of a high-quality brand, Rolex needs to sell its products only through authorized retailers that meet the requirements of the company. The company targets stores that only sell luxury commodities, and such outlets are only present in the shopping centers of only economically developed metropolises. Therefore, it is challenging to find a genuine Rolex watch in the majority of third-world countries. The selection criteria for prospective partners are strict. Not only do the retailers have to be located in prestigious geographic areas, but they also need to provide tailored services to their customers, such as quality engraving.

Conclusion

Rolex is the manufacturer of expensive watches, and therefore, primarily targets wealthy individuals. For many years, the company has been successful, but changes in consumer behavior may force the company to revise its marketing strategy. As generations change, people are no longer viewing watches as a tool for demonstrating societal class and wealth. Instead, the younger population is more concerned with the price and practical benefits of a given commodity.

Executive Summary

Organizations with a desire to thrive in the global market establish and embrace competitive business strategies. Rolex Watches and Timex Watches (as organizations) have strived on creating value to their clients. This is evident in the quality of watches and their cheap products in the market.

Consequently, customers have always felt valued. Secondly, the companies strive to make watch-wearing an exciting venture for all customers.

Competition and Business Unit Strategy

In the context of competition, the 2 selected businesses incorporate Rolex Watches and Timex Watches. Rolex Watches has always adopted strategic differentiation in order to remain competitive in the market.

Concurrently, Timex Watches has endeavored to adopt a strategic cost leadership to defeat its competitors in the electronic industry. The strategies that have been chosen by these companies are appropriate due to numerous factors (Ramamurti & Hashai, 2011).

Both firms are customer-focused and dynamic to remain relevant and competitive in the market. “Although their industry of operation is competitive, they have managed to expand in numerous countries with lucrative stores” (Lin & Edvinsson 2011). The companies have strived to create value for their clients.

This has been proved by quality of their watches and the competitive prices they offer in the market. Consequently, customers have felt valued and contended with the products they receive from these companies.

Secondly, the companies have strived to make wearing of watches exciting ventures for all customers. In the context of business, an efficient supply chain has proved lucrative for them.

They explain why the strategies applied by these 2 companies are appropriate. Businesses have different planning process for their merchandise. This has been proved in some of the traditional stores.

For instance, Rolex Watches and Timex Watches have stronger in-store inventory where development, manufacturing, packaging, and sale of their products occur. This makes the business activities challenging.

It is crucial to consider these aspects before differentiating the merchandise planning processes amidst the two businesses. It is easy for the companies to plan extensively with their products in the context of marketing. In the context of business, they indicate why the strategies chosen by the two companies are fitting.

Globally, Rolex Watches and Timex Watches are popular brands that require a credible communication process in its advertisement.

“Essentially, it is necessary for the organizations to identify and establish their target market in order to formulate credible communication processes applicable in advertisement” (Borkowski 2009).

The companies must identify the traits of potential customers. Additionally, the companies must know the brands that are in high demand and gather for reasons behind the high demand of a product.

Thus, it is necessary to know which part of the market prefers to buy Rolex Watches and which part prefers to buy Timex Watches. “Different brands that are manufactured target a given segment of the market” (Voss 2010).

To facilitate easy marketing, the target market of Rolex Watches and Timex Watches are divided on the basis of age, gender or ethnicity. The division of the market for Rolex Watches and Timex Watches are similar to marketing strategies that many organizations have adopted.

“The strategies that have been chosen by these companies are appropriate due to numerous factors” (Ramamurti & Hashai, 2011). These companies are dynamic customer-focused organizations that remain relevant and competitive in the market.

Competition and Business Unit Strategy

Figure 1 – Ex. Apple Inc. (Business Unit 1: Apples iTunes Store) and (Business Unit 2: Apple iPad)

Explaining what would this indicates about the future investment proposals for these two businesses

Apple Inc.: Business Unit 1: Apples iTunes Store) and (Business Unit 2: Apple iPad)

In the GE business screen, it is important to place different units of the Apple Inc. at different places following their market penetration, rates of withdrawal and technological advancements experienced in this context. In the screen, there are provisions of low, medium, and high rates of performance in both units.

The concerned businesses must strategize in order to capture numerous clients and expand their business basis. The Apple Inc. iTunes Store unit and iPad unit must operate together in order to attain the company goals.

Additionally, the units must know the brands of Apple Inc. that most people buy and reasons why they like them. In the context of business, an efficient supply chain has proved lucrative. It is, also, important to note that both units have been popular as expansion strategies in recent years for Apple Inc.

Nonetheless, some have records of failure. In fact, some have records depicting a disastrous effect on shareholders’ value. In this context, Apple Inc. is an evident example demonstrating some aspects of success.

International Mergers Acquisitions and Joint Ventures

Conventionally, it is evident that cross-border mergers, acquisitions, and joint ventures have been popular as expansion strategies. Nonetheless, some have poor records of success in their operations. They, also, possess negative effects to the shareholder’s value.

In this context, acquisition of IMB’s (USA) PC unit by Lenovo Group (China) is an example demonstrating some aspects of success. The reasons behind this are bountiful and relate to the aspects of business.

The notable occurrences during acquisition of IMB’s (USA) PC unit by Lenovo Group (China) depict critical insights. The incidence remains evidently as one of the most ferocious and viable occurrence of the company in the world.

It was a success since the structures were positioned to ensure that the entire process was successful. This incorporated both legal and economic provisions. Given the legal tussles that ensued between different parties of interest, the takeover seemed to be a more successful occurrence.

Involvement of parties in the takeover process, also, depicts a level of distinction that this occurrence envisaged. Lenovo Group (China) publicized its intentions for the global strategic union with IMB’s (USA) PC unit.

Following a lengthy and tough legal and strategic process, the corporation sold its entire assets considerably. The new company (IMB’s PC unit) that was taking over operated as Lenovo Group (China).

Lenovo Group obtained a preliminary equity interest in the sold IMB’s (USA) PC unit. It, also, engaged into a considerable number of deals with corporations which would offer access to particular IMB’s (USA) PC unit technology. These, also, included platforms as well as power trains.

Despite the narrow share percentage of IMB’s (USA) PC unit, the company holds entitlements in the decision resolution processes. This means that Lenovo Group is able to exercise solitary controls on units.

An analysis of this transaction indicates that horizontal overlaps noted between operations of the organizations are legal. “Therefore, it can be deduced that this takeover may not change the existent of competitive system within the market” (Keillor 2011).

Other terms of the deal that made everything successful are evident. This transaction ensued from rigorous consultations, numerous Departments of Treasury and Presidential Auto Task Force. In observation, the negotiations resulted into a speedy acquisition process.

The commencement period marks the time when both companies agreed to the merger/acquisition. This was done in accordance to chapter 11 of the Federal Bankruptcy Code. The company, also, sought endorsement for an expedited bid procedure and sale. It is vital to indicate that relevant assets got sold.

“Moreover, it involved an assumption of various debts” (Blazey, 2009). This transaction became consummated following a sales direction by both governments. Although the process entailed considerable filings, the advancement, design, and implementation of the sale were mutual deals.

“This called for the skill and familiarity of an extensive transactional squad. Other terms of this transaction specified the relevant operational requirements” (Zino, 2009). This involved support for access to particular technology and enhancement of product distribution competencies.

Lenovo Group (China) is an international organization responsible for providing technological provisions to various people and companies across the world. In addition, the company has numerous workers who are involved actively in retail and profitable banking.

The organization was able to expand its services in the United States after attaining a patent from other organizations. In addition, acquisition for both companies was to make them become international organizations with enhanced operations.

“Moreover, the success was a function of prosperity to both organizations” (Voss, 2010). It is, also, notable that in order to remain competitive in the market, both companies must consider the aspects of logistics in their endeavors.

Evidently, the movement of good from one point to another with an aim of meeting customers’ demand is crucial. One of the logistics performance goals is proper management of information from one point to the next.

Prompt and reliable products’ delivery and management have ensured that the entire business stakeholders achieve satisfaction.

Stakeholder Mapping

Samsung is a company with numerous stakeholders including the Korean government, other governments of nations where plants are established, customers, executives of the company, shareholders, staff, distributors, and large and small scale retailers and suppliers.

It is crucial to agree that all stakeholders have a contribution in decision making processes of the company. The growth-oriented and credible performance issues have been established to steer the production of electronic facilities (with functional value) in Samsung Corporation.

It is necessary to use secondary data which is based on validity and relevance in the provisions of quality products. The results depict information as presented by the electronic data on the topic under discussion and analyzed information from the secondary resources.

“Decision making is a critical provision in the context of majority” (Keillor 2011). Analytical techniques applied in this study provided credible information on quality provisions in Samsung Corporation.

Consequently, all stakeholders are allowed to present recommendations on pertinent issues that may compromise the quality of electronic items. It is imperative to agree that Samsung Corporation endeavors to grasp considerable market share globally.

This could be achieved through establishment, ratification, embracement of quality production processes, and critical decision making.

Figure 2 – Plotting the positioning of the stakeholders on a stakeholder map

How to use stakeholder mapping in future and how useful it is considered to be

The stakeholder mapping will be used in diverse contexts in future so as to attain good managerial efforts. The stakeholder mapping gives a critical inference on how stakeholders can be utilized in growth of the company. There are numerous key factors/conditions favoring sustainable growth among the corporate societies.

One such factor that will be influenced by the stakeholder’s mapping is the increasing human capital in the company’s operations. Competitive, innovative, and industrious workforce is a conditional requirement for sustainable growth in emerging economies.

“It is observable that successful multinational enterprises look for notable institutional voids, competent workforce, and viable work schedules in order to succeed and develop more business empires globally” (Jain, 2006).

They, also, need to involve all stakeholders in their operations including critical decision making processes. Another viable condition (for sustainable growth) that stakeholder must embrace is globalization.

The rate and effects of globalization have influenced major economic giants and other countries from primary economies. Concurrently, emerging economies have fronted critical competition through globalization in order to attain sustainable growth and sustainable environment.

Discussing the extent to which ethical issues/CSR drive strategy in the organization

Samsung has always strived to embrace the aspects of CSR. The company considers incorporating other stakeholders through philanthropic moves. It sponsors numerous activities and charity organizations to enhance its relationship with the society.

It is critical to understand that the company gives critical information on the aspects of CSR. “This is a vital provision that determines whether the company will lead a sustainable development or not” (IRMA 2011).

Given the legal tussles that ensued between different parties of interest, the takeover seemed more of a successful occurrence. The involvement of both parties in the takeover process depicts the level of distinction that this occurrence envisaged.

Precisely, it is notable that the flow of good from one point to the next aiming to meet customers’ demands with promptness is critical. As mentioned before, one of the logistics performance goals in this context is the proper management of information from one point to the next.

Timely and reliable product delivery and management have ensured that the entire business stakeholders achieve satisfaction. Numerous organizations should establish and implement competitive business strategies in order to remain relevant in the market and attain the company’s objectives.

Conclusion

Most organizations need to establish and implement competitive business strategies in order to remain relevant in the market. Rolex Watches and Timex Watches have created value for their clients.

The aspects of mergers and acquisitions, CSR, and other business provisions are considerable in the business context. Shareholder’s mapping has been practiced by Samsung in order to enhance the aspects of decision making within the organization.

References

Blazey, L 2009, Insights to performance excellence: an inside look at the 2009-2010 baldrige award criteria, Asq Quality Press, London.

Borkowski, N 2009, Organizational behavior, theory, and design in health care, Jones and Bartlett Publishers, Sudbury, MA.

IRMA 2011, Green technologies: concepts, methodologies, tools and applications, Information Science Reference, Hershey, US.

JAIN, S 2006, Emerging economies and the transformation of international business: Brazil, Russia, India and China (BRICs), Edward Elgar, Northampton, US.

Keillor, B 2011, International business in the 21st century, Praeger, Santa Barbara, US.

Lin, C & Edvinsson, L 2011, National intellectual capital a comparison of 40 countries, Springer, New York.

Ramamurti, R & Hashai, N 2011, The future of foreign direct investment and the multinational enterprise, Emerald, Bingley.

Voss, H 2010, The determinants of Chinese outward direct investment, Elgar, Cheltenham, UK.