"Deep" questions about ROLEX, Why ROLEX?
Like Tree9Likes

Thread: "Deep" questions about ROLEX, Why ROLEX?

Page 1 of 2 1 2 LastLast
Results 1 to 10 of 12
  1. #1
    Member
    Join Date
    Nov 2011
    Posts
    7

    Confused "Deep" questions about ROLEX, Why ROLEX?


    Hi ! im doing a University essay about marketing comunications rewarding Rolex watches. Its a very rare brand becuase they sell "normal" swiss watches for thousands of dolars...

    I would like to get your opinions on this; experiences and knoledge about the brand. Can you repond at least briefly to these questions? Thanks !




    1-What is the Rolex target market? What type of person buys this watches.


    2- What is the decision making process a client goes thought to decide to Buy one?


    3- Is Rolex marketing effective? Why?


    Thanks a lot for participation, if you own one of these id love your opinion as well.

  2. #2
    Member baronrojo's Avatar
    Join Date
    Jul 2010
    Location
    Bay Area, CA
    Posts
    3,236

    Re: "Deep" questions about ROLEX, Why ROLEX?

    Here we go again...another opportunity for Rolex to get bashed by a bunch of people who most likely don't even own one.
    Frogman4me and R. Mich like this.

  3. #3
    Member
    Join Date
    Nov 2011
    Location
    Philippines
    Posts
    1,396
    I liken rolex a lot to Porsche motorcars

    1. Based on their endorsers and ads, rolex targets their watches to unique individuals who utilize their watches' solid construction and accurate time keeping (see golfers/divers/adventurers/pilots)
    In reality such individuals are limited in number - definitely not enough to keep the brand afloat.

    So rolex' real audience tends to be moneyed individuals who wish to portray themselves as adventurers despite a protruding gut (they tend to buy the more utilitarian models like the seadweller) or just announce they have money.

    2. I think most people buy rolex for what the brand signifies rather than because they actually like the watch. For many it's just to announce to the world that they're rich and these tend to be the obnoxious a-holes who give the brand such a negative connotation.
    I just bought a seadweller. Technically I can spout a bunch of hooey about the watch being well made, accurate, lots of history... But the truth is the watch is a symbol of my achievements and success. My grandpa collected rolexes in the 60s, my dad owns one, all my uncles own one, my father in law and my uncles in law all own one. So I was very driven to afford a rolex as well with my own hard earned cash. The look of pride on my dad's face when I showed him my SD is priceless...I'll cherish the moment until the day I die and made the purchase worth it at any price :)
    Consolidation complete! Down from 17 watches to 2 grails + 3 support
    Rolex Seadweller 16600 / ALS Saxonia / Casio Edifice (travel) / Hamilton Intramatic (ultra-thin dress) / Kadloo Match Race (tool)

  4. Remove Advertisements
    WatchUSeek.com
    Advertisements
     

  5. #4
    Banned
    Join Date
    Oct 2011
    Location
    Europe and USA
    Posts
    626

    Re: "Deep" questions about ROLEX, Why ROLEX?

    First, if you think Rolex are normal Swiss watches sold at a price far too high for what they are you belong to the uninformed majority.

    Until the advent of the Omega 8500 caliber about two years ago, and to a certain degree still today, Rolex watches contained horological features not present in any other Swiss watch at the same price range. I cite in particular the following: Height adjustable balance bridge, microstella balance, teflon coated reverser wheels, Breguet Spiral, 3 point KIF shock absorption. All of these including the size and construction of the movements (Rolex didn't go small and flat when others did because they knew small and flat is less robust, less reliable, less accurate, harder to service) contribute to the quality that makes Rolex movements (the 3135 in particular but also the 3185/86/87, not to speak of the 4130 in the Daytona which adds a ball bearing rotor and 40% higher power reserve) so special.

    Yes, others have had better bracelets (not anymore in the same price class or at the expense of something else). Others have had and do have Anti-reflection coated glass. Rolex does not do that for two reasons. First, the outside coating can scratch and then look not very nice and require a service call and cause dissatisfaction. Leaving it out is thus an economical no BS decision. The second reason is that Rolex wants to be recognized. Part of the recognition is that a real Rolex sparkles like all out. This is in large part due to the highly polished crystal. The other part is the different steel they use. 904L instead of 316L for the cases. 904 has a different composition. It is more acid, sulfur, salt resistant. While that doesn't really matter in real life you can polish 904 to a much nicer shine. Different refractory index. This allows higher recognition. I once calculated the additional cost of the steel per case. It was under $4. Minimal amount. Less than the indices on the dial and the hands that are made of polished white gold, which also gives a very nice shine and is very corrosion resistant.

    Today Rolex even uses their own self-developed material for the balance spring (anti-magnetic, more shock resistant, less temperature deviation) and their own anti-choc system on the balance staff and on the anchor wheel staff (others normally only use it on the balance staff).

    They now even use their own lume.

    So far for the technology.

    The trick how they can offer these watches at a rather low price (not high as you seem to suppose) is that they became over time fully vertically integrated. They bought all the people that made parts for them. Now it's all under one holding. They have total control. Of course, this control was expensive to achieve but it now pays off. When others have to invest in their own RD now or have to buy clones because ETA won't give them movements anymore, Rolex can just shrug it off. Furthermore, they have refined the production process so much and use so much high-tech that one can speak of an outright industrial production. Because they produce so many they can realize economies of scale. They still sell all the watches they make. Highly efficient company.

    They also have one of the best quality control processes in the industry. This doesn't mean that there are never examples with a fault but it's much rarer. Further they have an excellent net of vendors and service partners around the globe. From Tasmania to Norway it will be fairly easy to get your Rolex taken care of. Besides, a Rolex is built so well and with service friendliness in mind that any decent watchsmith will be able to service it. Only weak spot are the sleeve bearings for the rotor in all but the 4130. But if maintained regularly, the sleeve bearing offers great winding efficiency, low noise and low cost, plus easy replacement. Again a no BS decision.

    Then do not forget that Rolex is an independent company that does one thing and one thing only: watches. Others are part of big luxury holdings. They have to vie for a position in the market place. Rolex has established its domain already and no one from the own company is getting it in trouble.

    Yes, Rolex does do a lot of marketing and PR. IN fact, they are said to have the biggest marketing budget of any Swiss firm. But they are also the firm said to give the biggest part of their revenue to charity. They certainly give less than what they keep, although the entire thing belongs to a Foundation, but they give more than others, especially to education and cultural causes. I heard it is about 20% that they give. That's huge. And they don't advertise that really.

    So that's what you need to know before you even start researching the brand.


    While Rolex is in a way the inventor of celebrity marketing (at least for watches), they have always had celebrities with a cause to the quality of their watches, e.g. Ed Viesturs or Mercedes Gleitze. It was about what extraordinary people could achieve with an extraordinary quality watch. The only deviation from this was for the ladies watches where they had famous opera singers. So then they connected to high culture instead of extreme sports. Makes sense. This is notably much preferable to the senseless celebrity endorsements by Di Caprio, George Clooney or Brad Pitt (Omega and Tag). I once had a look at a TAG in a store. I usually don't like Tag but this one looked nice enough that I thought I could work on my prejudices. :) The sales lady says: This is the watch Brad Pitt wears. Now, I know that wasn't polite but I answered: Brad who? Who cares?

    I think that about answers question 3.

    Question 1 Target market: Anybody who has the money to buy one. The Rolex clients are surprisingly varied. Many, most will buy it solely or mainly for prestige. It works for that. Mission accomplished. Customer happy, company happy, dealer happy. Quite a few buy it because they like the looks and because there are hundreds of variations even if the main theme hardly changed over time. So it is possible to keep the recognition high but still find a personal look that not everybody has. Smart. Finally, OMG!, there are people who actually know what a fine watch a Rolex is and that you really can't go wrong when you buy one, not at last due to the really good resale value. This is achieved through raising prices constantly, controlling the dealer network tightly but also through just offering a quality product that looks and works as well after 20 years as after 5.

    Question 2. Decision making. I can't speak for other buyers but Rolex has always been seen as a status symbol and a sign of an achievement of some kind. This is certainly also linked to their marketing. But in the marketing it was never an economical achievement but always one of cultural or sports significance. Still, this parlays into an achievement token (you may quote that). So that reflection will certainly play a role for many. For others it might just be the look or just the prestige or a combination. And then there will be some enlightened souls who understand what a good and price-worthy watch that is and that, if they pick the right model, they will buy one watch that they can wear to 90% of occasions a human being goes through in their life. They will always be well dressed and always have a reliable time-keeper that can be serviced anywhere in the world. It can be loaded with memories and then recharged when it is given to the next generation. Or you can wear the crap out of it for fifty years. Then you have had the "best watch" for a cost of what 60-80 USD per year if you count inflation and Rolex price hikes. Chances are that if it's not completely abused you can actually sell it for more than you bought it 50 years ago.

    Disclosure: I own two. An E1 and an SD 16600. I bought both because I found them slightly outside the Rolex mainstream. They were watches not everybody had. As I always say, everybody and his dog own a Submariner or a Datejust and they are just too easily recognized which in certain circles where a bit of modesty still counts can give a backlash. I did not buy a Daytona. For one because it doesn't have a date and a $12k steel watch without a date but with a complication I hardly ever use would be ridiculous. The other reasons was that this model, technologically among the finest perhaps THE finest they produce, is worn in my reckoning by the wrong people: pimps, night club owners, real estate agents, wanna-be millionaires. They all enjoy the elusive aura of this piece that stems from the early 90s when Rolex artificially rarified it. Then one would have to have connections, pay twice the price or wait ten years to get one. Today you can buy them just about anywhere provided you are willing to pay retail or a slight supplement but not double. However, these idiots think they are still super hip wearing one. :D So the wrong people wear the watch for the wrong reason. I admit, although it would be a far stretch if one sees me with or without a Daytona, that I would not want to be associated even in the least with these people or their reasons or the combination of both. Now, I might except the rare upstanding real estate agent... ;)

  6. #5
    Member
    Join Date
    Sep 2007
    Posts
    2,268

    Re: "Deep" questions about ROLEX, Why ROLEX?

    Quote Originally Posted by Terminator0 View Post

    Hi ! im doing a University essay about marketing comunications rewarding Rolex watches. Its a very rare brand becuase they sell "normal" swiss watches for thousands of dolars...

    I would like to get your opinions on this; experiences and knoledge about the brand. Can you repond at least briefly to these questions? Thanks !




    1-What is the Rolex target market? What type of person buys this watches.


    2- What is the decision making process a client goes thought to decide to Buy one?


    3- Is Rolex marketing effective? Why?


    Thanks a lot for participation, if you own one of these id love your opinion as well.

    These are some very strange questions with some odd and suggestive opinionated statements

    ----"- Its a very rare brand becuase they sell "normal" swiss watches for thousands of dolars..."................ this suggests that Rolex is overpriced and that others in the same price category are not.


    --- "
    What type of person buys this watches."............The same type of person that buys any other watch in the same price category.

  7. #6
    Banned
    Join Date
    Sep 2010
    Posts
    1,888

    Re: "Deep" questions about ROLEX, Why ROLEX?

    I don't own a Rolex. I probably never will. If I ever have the money to afford one I'll almost certainly get a Grand Seiko instead. Rolex do make some nice models and I have tried one on, but I've read too many posts from people who seem to know what they're talking to believe they are good value for money. The spiralling, inflation-adjusted prices since the '70s should be warning enough. They're the Louis Vuitton of watches. The often emotionally-charged defence of Rolex by Rolex owners also puts me off. It's similar to "The Church of Apple", which is why I reject anything made by Apple. This is a polarised issue, but I do not think you need to have spent $5,000 on one to be allowed to express an opinion in the context of this particular thread, given it's purpose. I would not be presumptious enough to post in the Rolex forum, as I have no right to. But when I do see a Rolex, I have to be honest, as a putative WIS, I feel a mixture of envy and exasperation. I sort of think "Could you not have used some imagination?" It's like seeing a BMW. Yes, very nice; yes, I can perfectly understand the reasoning; yes I might make the same decision if I actually had to stump up the cash, but there are so so many alternatives. It's like "You got your dream watch? Wow...oh a Sub, hmm."
    Last edited by Scottish Steve; November 29th, 2011 at 12:15.

  8. #7
    Member
    Join Date
    Nov 2011
    Posts
    7

    Re: "Deep" questions about ROLEX, Why ROLEX?

    Thanks Lostresgatos and especially thanks Alex , you made my day with that answer , i really appreciate it :) !!!!

  9. #8
    WnS
    WnS is offline
    Member WnS's Avatar
    Join Date
    Feb 2011
    Location
    Sydney, Australia
    Posts
    4,956

    Re: "Deep" questions about ROLEX, Why ROLEX?

    Because if I ever won the lottery, it would be cool to wear this with my new Bentley.

    Last edited by WnS; November 29th, 2011 at 12:51.
    I'm content with my watch collection

  10. #9
    Member
    Join Date
    Nov 2011
    Location
    Philippines
    Posts
    1,396
    Hahaha now thanks to steve I'm starting to question my individuality because I also own a BMW O_o.

    One interesting point about Rolex compared to all of my other major purchases is that nobody has second guessed it. With my other buys that are seen as overpriced, i was usually given a cheaper counterpoint like "you should've bought a Toyota or VW instead of BMW. They're cheaper to maintain and come with just as much stuff"

    I'm sure there are people who think "what a douche" or "he lacks imagination" but considering how many people find rolex overpriced, nobody has said "you should have bought a Tag instead and saved the money. They're cheaper to maintain and also made of stainless steel." At worst I've been suggested other watch brands, but at the same price point (truthfully if it wasn't for the sentimental attachment, I would have bought an El Primero or another JLC).
    Consolidation complete! Down from 17 watches to 2 grails + 3 support
    Rolex Seadweller 16600 / ALS Saxonia / Casio Edifice (travel) / Hamilton Intramatic (ultra-thin dress) / Kadloo Match Race (tool)

  11. #10
    Banned
    Join Date
    Sep 2010
    Posts
    1,888

    Re: "Deep" questions about ROLEX, Why ROLEX?

    Quote Originally Posted by LosTresGatos View Post
    ........or another JLC).
    Ha! These Rolex-wearing BMW drivers! Always showing off.....



    To be honest, I'm not surprised you don't get many cheaper suggestions, because most non WUS type probably just think you wanted to spend a lot of money and there's no such thing as a cheap statement of wealth. Now if I saw Johnny Depp wearing a Timex, I'd be kind of impressed, but "some guy" wearing a rolex? No.

Page 1 of 2 1 2 LastLast

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

    Posting Permissions

    • You may not post new threads
    • You may not post replies
    • You may not post attachments
    • You may not edit your posts
    •