A Marketeers take on Rolex success , do we agree ?

[JonnyOld Boy]

A parent of one of my students is a Marketeer and is very much into bags, but does "dig" watches. We got chatting this afternoon about the success of Rolex and the really interesting thing she said was this [ or words to this effect ] : "Sections of the luxury watch industry are entering choppy waters and data is suggesting that the over reliance of "heritage releases" of late is starting to impact sales in some quarters in a significant way. Because Rolex has "heritage" and "contemporary" ingeniously morphed into one in one sense, there is little polarisation and their watches genuinely are timeless both in reality and in idea"
I had never really thought in depth about this, but is she right ? Does the Brand sit on the fence perfectly ?

[Neil McCauley]

There are not many brands out there that literally every person on earth has heard of. Rolex sits in the upper echelons of marketing success such as Coca Cola, Apple, McDonalds, IMO.

Decades of expert marketing tactics have led to the brand being associated with a huge degree of personal success, putting Rolex on the wrists of winners or champions in their field. In many cases, a lot of the stories behind their marketing tactics are twisted and partially fabricated at best, but nevertheless the world lapped them up, and here we are now.

I would agree that even a modern contemporary Rolex is timeless, for sure. It will be just as relevant in 40-50yrs time as it is today, if not more.

[L_S_SHOE]

Overthinking it, and probably giving Rolex too much credit.

The current popularity of Rolex is driven by social media, envy, fear of missing out, and perceived lack of supply.

You want what everyone else has and you can’t have and are afraid you’ll never have.


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[-dustin]

Originally Posted by JonnyOld Boy

Because Rolex has "heritage" and "contemporary" ingeniously morphed into one

Kinda sounds like Porsche, too...

[Neil McCauley]

Originally Posted by L_S_SHOE

Overthinking it, and probably giving Rolex too much credit.

The current popularity of Rolex is driven by social media, envy, fear of missing out, and perceived lack of supply.

You want what everyone else has and you can’t have and are afraid you’ll never have.


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Hmm See, from my POV I disagree - prior to social media being a thing, they were still one of the most recognisable brands in the world. Yes social media has accelerated things significantly in other ways. But way before that Rolex were fond of using evocative marketing techniques to become a ubiquitous brand.

[Mystro]

Brands at the top of their field for a duration of time establish a higher reputation and this perpetuates them staying on top. When the general public out side of the buying demographic sees this and accepts this status then these brands transcend their actual products. Certainly brands like Rolex and Porsche live at these places but Rolex is a monster within its industry.

[L_S_SHOE]

Originally Posted by Neil McCauley

Hmm See, from my POV I disagree - prior to social media being a thing, they were still one of the most recognisable brands in the world. Yes social media has accelerated things significantly in other ways. But way before that Rolex were fond of using evocative marketing techniques to become a ubiquitous brand.

I think they did a great job making watches and maintaining their relevance through basic advertising strategies. Their approach has been disciplined and formulaic (I guess this does deserve some praise).

On a global scale, with certain products, there’s only room for a few brands. Rolex is to watches what Tobasco is to hot sauce.

They got lucky with social media and the poor mental health of consumers.


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[Cru Jones]

No, I don't think it's a question of straddling vintage and modern. It's more a question of good quality + excellent brand visibility + positioning (aspirational luxury). As Rolex pushes its pricing relentlessly upmarket, one may wonder whether the general population will follow. For now, it seems yes, but many peer watchmakers are comparatively struggling after significant price increases and reduced demand.

[Flyguy1]

I don't think of it as marketing. My Breitling SuperOcean leaked and cost a ton to fix. SeaDweller rock solid through diving and whitewater. Kind of like an old Land Cruiser. Pricey, but just works.

[Krash]

I agree with her.

I also think you could have the greatest marketing in the world, but if you don’t have the products to back it up, then that’s a problem.


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[brandrea]

Sounds like marketing garbledee gook.

I read that sentence three times and my head almost exploded. I still can’t dechipher it. I admit I’m having a bad day

[PenDelicate]

Originally Posted by JonnyOld Boy

data is suggesting that the over reliance of "heritage releases" of late is starting to impact sales

Really interesting. I wouldn't at all have thought that heritage releases are seen as a bad thing.

For the above, I'd love to see a historical break-down the proportion of heritage-to-new releases, and its correlation with sales.

Then I'd like to see Rolex proportion of heritage-to-new (if we count the classics as, "Heritage") and the proportions of the other big brands.

I checked before, and I think Rolex has released a new model every 5 years on average since the 50s. It'd be great to see that figure for all brands.

[CarlOver]

Originally Posted by -dustin

Kinda sounds like Porsche, too...

Yes indeed.

[sgt10p]

I wonder how many people buy a Rolex because of the hype, showing off and expression of wealth Vs those that buy because of the engineering and love of the product.

[Neil McCauley]

Originally Posted by sgt10p

I wonder how many people buy a Rolex because of the hype, showing off and expression of wealth Vs those that buy because of the engineering and love of the product.

Almost nobody buys a Rolex for the engineering - there are far better watches out there if that's what someone is looking for.

Which is testament to Rolex's marketing, while yes, they are great at what they do, there are better out there. However, not many watch brands out there represent something the way Rolex does. To many, it represents career success, family or personal success, something that can be passed down through generations, and while yes, any other watch is capable of that (in fact, my prized possession is my late grandfather's old quartz seiko) nothing quite does it like it appears a Rolex does... that's highly successful marketing right there.

[csaltphoto]

Originally Posted by Krash

I agree with her.

I also think you could have the greatest marketing in the world, but if you don’t have the products to back it up, then that’s a problem.


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I don't know... People still buy Land Rovers...

[IFlyPlanes]

Marketer here as well who has worked for some major companies and I really think this is overthinking it a bit.

Rolex has done an amazing job of brand building over the years. Is Rolex the best luxury watch maker? No. Are they the best value in watch brands? No. But they have built a brand that has only gotten stronger over the decades that transcends various corners of the market.

They went from being a brand built for the working and adventurous type to becoming a luxury status symbol. It's the first brand you think of when you hear "luxury watches" whether you're a retiree or a rapper.

Rolex makes a great product that will last a lifetime but I hope they don't fly too close to the sun. One area I feel like they have hurt the brand a bit is by not selling direct to consumer. Other luxury brands own their retail experience but I think leaving it in the hands of jewelers in this current market won't do them any long term favors.

The purchasing experience with scarcity and pay to play at the ADs will only work when there is scarcity and that excuse for a poor buying experience won't last forever.

With the money they spend on advertising, they should be able to meet demand or at least just below demand if their goal is trying to promote exclusivity.

Right now people are forced to buy at a premium from a dealer should they need a watch for a special event and I just don't think that's a good look for the brand, especially leading into a period of economic uncertainty.

[brandrea]

Originally Posted by Neil McCauley

Almost nobody buys a Rolex for the engineering - there are far better watches out there if that's what someone is looking for...

I’m not sure I agree with this part of your statement…

If we are talking luxury watches, I’ve owned quite a few different brands, and few do it as well as Rolex in that space.

That’s one reason I keep coming back to the crown and why it’s a daily go to

[77T]

If I simplified the OP's restatement of the student's Mom "Marketeer", it is the product that keeps Rolex above the brands that have lost their way in product mix by releasing uninspiring models.

I don't agree that it's solely product - promotion and branding have a great deal to do with it, too.

Now for the longer story...

A product with the Rolex brand carries several value propositions and I rank them below in importance of activating a potential buyer. The "Hidden Persuaders", if you will, are:

1. Prestige and Status: Rolex is widely recognized as a luxury brand and is associated with prestige and exclusivity. Buying a Rolex vs. lesser-known brands signifies wealth, success, and social status for self-satisfaction. Believe it or not, Patek suffers from poor conversion of their greater status.

2. Quality: Rolex has a reputation for producing high-quality products that are meticulously crafted.

3. Design: Rolex watches are renowned for their timeless and elegant designs. The brand has a consistent aesthetic that transcends trends and fads, making their products enduring and classic.

4. Reliability, Durability and Accuracy: Rolex watches are known for their rugged reliability in the professional line and accuracy across all the models. The brand positioned itself with a long history of consistent accuracy.

5. Heritage and Tradition: Rolex has a rich heritage that spans over a century. The brand's long-standing history and tradition contribute to its allure and authenticity. Rolex is associated with iconic designs, pioneering innovations, and a commitment to excellence.

6. Resale Value: Rolex watches have a strong resale value, often appreciating in price over time. Rolex watches are often considered investment pieces by new-to-the-brand buyers that retain their value over time. This also drives gift seekers.

These value propositions combine to create a strong appeal for their products and brand.

Whenever I positioned any new product, or a new division within our large company, I envisioned the Rolex mantra:
Make it an irresistible, profitable, and singularly superior value proposition.


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[Harry-57]

Originally Posted by JonnyOld Boy

"Sections of the luxury watch industry are entering choppy waters and data is suggesting that the over reliance of "heritage releases" of late is starting to impact sales in some quarters in a significant way.

It's amazing what a marketeer can do with data.

Source? Sample size? Methods of analysis and interpretation? Assumptions? Journal in which the data was published?

[Alex71168]

Tudor have a lot of heritage releases and they seem to be doing pretty well, just saying…..

[4reRlxGuy]

Originally Posted by csaltphoto

I don't know... People still buy Land Rovers...

But when they running there's nothing like one

[Alex71168]

Originally Posted by 4reRlxGuy

But when they running there's nothing like one

When they are running! Lol

[inadeje]

Rolex has certainly done an impressive job projecting its image (and logo) while transcending generations. The success is associated with the steadfast focus on its core endearing product. All too often the accountants win the boardroom battle and brands dilute their value in favor of expanding the product’s (or services) on which the brand is emblazoned. As a consequence, the brands start to be seen by consumers as nothing more than a callous shallow money grabbing ploy.

Rolex has avoided such a categorization and as a result has preserved its stature.

[JonnyOld Boy]

Originally Posted by csaltphoto

I don't know... People still buy Land Rovers...

Last month I sold my Golf as needed a larger SUV. Looked at Disco Sports and RAV4s .... the Golf is marketed very well , but has serious design flaws. Probably around half MK7 owners are driving around with water leaking into the boot well via the badge door drain tube perishing, the light block seal , or the rear bumper internal slam pressure vent seals perishing. Had those fixed before I sold it but would never buy another VW again. The place that bought it had a Disco Sport and the mechanic working on it showed me about two dozen reasons not to buy one. Now the RAV4 is a Toyota, so its dependable etc etc but will creak like a tea-clipper at sea but under the bonnet it is sound and the base it build on is much more impressive that any understated European Japanese marketing would have you believe.
In the UK , only Hybrid RAVs are available now , so no fossil fuel only versions but even so , a much "under-marketed" car in my opinion.

Another very good friend of mine has her son working at a main LandRover dealership and they are selling like hot cakes. So something is working on the sales and marketing front. He hit and exceeded his 4th quarter cumulative bonus in April and bought himself a new watch .... no prizes for guessing which one ....

[inadeje]

Originally Posted by 77T

If I simplified the OP's restatement of the student's Mom "Marketeer", it is the product that keeps Rolex above the brands that have lost their way in product mix by releasing uninspiring models.

I don't agree that it's solely product - promotion and branding have a great deal to do with it, too.

Now for the longer story...

A product with the Rolex brand carries several value propositions and I rank them below in importance of activating a potential buyer. The "Hidden Persuaders", if you will, are:

1. Prestige and Status: Rolex is widely recognized as a luxury brand and is associated with prestige and exclusivity. Buying a Rolex vs. lesser-known brands signifies wealth, success, and social status for self-satisfaction. Believe it or not, Patek suffers from poor conversion of their greater status.

2. Quality: Rolex has a reputation for producing high-quality products that are meticulously crafted.

3. Design: Rolex watches are renowned for their timeless and elegant designs. The brand has a consistent aesthetic that transcends trends and fads, making their products enduring and classic.

4. Reliability, Durability and Accuracy: Rolex watches are known for their rugged reliability in the professional line and accuracy across all the models. The brand positioned itself with a long history of consistent accuracy.

5. Heritage and Tradition: Rolex has a rich heritage that spans over a century. The brand's long-standing history and tradition contribute to its allure and authenticity. Rolex is associated with iconic designs, pioneering innovations, and a commitment to excellence.

6. Resale Value: Rolex watches have a strong resale value, often appreciating in price over time. Rolex watches are often considered investment pieces by new-to-the-brand buyers that retain their value over time. This also drives gift seekers.

These value propositions combine to create a strong appeal for their products and brand.

Whenever I positioned any new product, or a new division within our large company, I envisioned the Rolex mantra:
Make it an irresistible, profitable, and singularly superior value proposition.


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A truly brilliant synopsis - thanks

[JonnyOld Boy]

Now for the shorter , longer story...

1. Prestige and Status: You see them everywhere these days, Nothing prestigious anymore about owning a Roley.

2. Quality: About bang on for the money. Few chronic issues compared to other brands.

3. Design: My original point.

4. Reliability, Durability and Accuracy: About right for the money - COCS.

5. Heritage and Tradition : My original point.

6. Resale Value: no residual horror stories, about from those who bought at stupid prices during 2021-2022. Hold value like few other brands but grey prices now suggest "investments" they are not.

the Rolex mantra:
Make them attractive to Watch enthusiasts, collectors, show offs or random walk-ins. Have failed generally recently with group A and group D but we are getting there.

[BroncoOne]

Originally Posted by L_S_SHOE

Overthinking it, and probably giving Rolex too much credit.

The current popularity of Rolex is driven by social media, envy, fear of missing out, and perceived lack of supply.

You want what everyone else has and you can’t have and are afraid you’ll never have.


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I disagree. Rolex always made a solid and durable product and the marketi g was spot on.

The things that you mention just boosted what they already did. Rolex rides the wave of the new tech. The FOMO end, fear etc and other human aspects always existed. The internet didn’t invent emotions and people acting on them. The internet just made every human capable of broadcasting their inadequacies to the world

The internet isn’t the first example. When TV came out decades ago, the brands that had the scale to afford to be on TV rode that wave and crushed market share.

[L_S_SHOE]

Originally Posted by BroncoOne

I disagree. Rolex always made a solid and durable product and the marketi g was spot on.

The things that you mention just boosted what they already did. Rolex rides the wave of the new tech. The FOMO end, fear etc and other human aspects always existed. The internet didn’t invent emotions and people acting on them. The internet just made every human capable of broadcasting their inadequacies to the world

The internet isn’t the first example. When TV came out decades ago, the brands that had the scale to afford to be on TV rode that wave and crushed market share.

You made my point.

The success Rolex enjoys is not entirely their own doing.


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