D1-Evaluate the effectiveness of the techniques used in one of your organization. You should do this by weighing up the pros and cons of the techniques used.

Rolex Brand

Pros

Rolex is one of the most recognized luxury brands in the world which is most important source of branding equity. Other equities include its own crown logo and the functional benefits that it provides to the user for quality, craftsmanship and innovation. Its exclusive status symbol, premium pricing and limited distribution are also key sources of equity. Other key source of Rolex brand includes Ambassadors, Sports and Culture and Philanthropy. Rolex has maintained the highest quality, durability and prestige on which it was originally founded and has successfully leveraged its history and tradition of excellent along with innovation to become the most powerful and recognized brand. Products like “10 Golden Rules” are helping the company in a way that the customers values what the company provides and associates the attributes to them. The customer believes what the company says about because the company provides the unique features which are worthy of positioning the Rolex into a high positive position in customer minds and this is a very big advantage. Rolex has successfully focused on the superior products attributes and the imagery associated with owning and wearing a Rolex. The Rolex big advantage is that Rolex is classic and luxurious image which makes it outstanding, In spite of the company being more than 100 years old, Rolex, in order to maintain its stability as the world's best watch, did several innovative things and so, due to this stability, in the midst of changes that wiped out a number of watch manufacturers, Rolex not only survived, but blossomed. In the 1950's, the quartz watch was invented, which created low cost time pieces. During the 1970's about half of the watches sold worldwide were structured on this quartz technology. Hong Kong was the largest watch producer. Since its relocation in 1919, Rolex has been located in Switzerland and never used outsourcing which keeps excellent quality control.
Today, Rolex’s engineers and designers constantly improves brand’s flagship models, with new high-end mechanisms, tough and luxury materials, keeping the authentic look and the traditional quality.

Opportunities

Rolex still has room for opportunities like introducing new designs and collaborating with the designers to launch new ranges, contacting with the female customers to associate more and introducing new ranges promoting the women sport and cultural events. Also the brand needs to understand younger customers and attract those affiliating youngsters with the luxury but also communication with them for a long-term.

Cons

Unfortunately, for many customers today, branding has taken on a negative nuance. Pop culture ads that rely on fashion and polling trends, naming right battles, mass production that sacrifice quality through outsourcing these are some of the different means that companies use to gain success. However, Rolex has stood its ground and has not resorted to any such means in building its image. It let's its quality products speak for itself. Hence it stands as the standard in the wristwatch industry. Quality, performance, innovation and stability are the pillars that Rolex has built its brand, since the introduction of wristwatches. The company first sold pocket watches and folding watches called travel clocks when it was first formed in, until this time, it was only women who wore wristwatches. Later it became popular when people realized how impractical it was to have pocket watches

Relationship Marketing

Pros

Rolex has managed to create perceptions to all customers that they are leading in luxurious watches and that can offer a high status product. What they managed to do is to create huge brand awareness to the average consumer and show them that they are here as a luxurious branding in the watchmaking business. As a result we see that Rolex has a really successful marketing strategy which was based on the company competitive advantage: durable watches, durable movements, watches that made it to the top, watches made from sophisticated materials etc. All this is produce marketing , Rolex shows to the people what product can achieve , and by stating that the product s are worn by prestigious people like opera singers, commercial airlines pilots, horse riders, musicians, tennis players etc. Rolex is the leading watchmaking company in advertising and it seems that their marketing research department is pretty advanced. Rolex classical collection has managed to attract many rich people as the classic collection is distinguished by the silken, smooth forms and elegant of aspect. Rolex classical watches are designed for people who are looking for originality and creativity and customers has the opportunity to choose between watches with different colours for the dials and bracelets which are either contemporary or classic. The classic collection is composed of models in steel combined with leather, steel models or in steel with 18 karat gold. All of them are equipped with an automatic mechanism and are hermetic until 50 meters of depth.

Cons

ROLEX is expensive it has a very exclusive market, not many people can afford a ROLEX, and there seen more of a gift or celebration item. So a person will probably not buy multiple of them like a person would with a Timex Rolex watches vary in price according to the model and the materials used. Another disadvantages in marketing relationship for Rolex are the fake watches, fake Rolex watches attempt to establish themselves as trustworthy through their websites. This niche of replica watches is particularly interesting because some websites selling fake Rolex's actually manage to overcome the initial barrier of selling a questionable product and appear to be trustworthy

Growth

For almost a century, Rolex has grown to become one of the most renowned companies in the history of watchmaking. This sterling reputation is the result of sheer hard work by the people associated with Rolex in creating their state-of-the-art watches. Today, beyond just being one of the top luxury watch brands, Rolex is known for manufacturing highly accurate wristwatches. Every Rolex watch stands out in the crowd for their unparalleled performance as well as appearance. From a report that has been done a year ago by the leading business newspaper of Geneva, indicated that in 2008, an official check of Rolex’s production suggested 770,000 pieces per year for sales revenue estimated at 4.5 billion Swiss francs (currently $4.9 billion). That year, the production rate was said to be up by 33% from 1999. Rolex’s share of the Swiss market in production of timepieces was 16.1%, but almost all (95%) of the output was sold for export. Rolex sales went one-third to Europe, one-third to the Americas, and one-third to Asia. It appears that growth rates in Russia for the European market and China for the Asia market are accelerating, but the details are guesswork. Most important for the company growth is that Rolex is a proud sponsor of the tennis elite. Some of the best players on men’s and women’s are a part of Rolex sport family.

SWOT Analysis Rolex

Strengths:
Weaknesses:
Cost advantage
Asset leverage
Effective communication
High R&D
Innovation
Online growth
Loyal customers
Market share leadership
Strong management team
Strong brand equity
Strong financial position
Supply chain
Pricing
Real estate
Reputation management
Unique products

Bad communication
Diseconomies to scale
Over leveraged financial position
Low R&D
Low market share
No online presence
Not innovative
Not diversified
Poor supply chain
Weak management team
Weak real estate
Weak, damaged brand

Opportunities:
Threats:
Acquisitions
Asset leverage
Financial markets (raise money through debt,)
Emerging markets and expansion abroad
Innovation
Online
Product and services expansion
Takeovers

Competition
Cheaper technology
Economic slowdown
External changes (government, politics, taxes,)
Exchange rate fluctuations
Lower cost competitors or imports
Maturing categories, products, or services
Price wars
Product substitution