Rolex Companys Customer Analysis

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Rolex Companys Customer Analysis
Rolex Companys Customer Analysis Research Paper
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Updated: Jun 13th, 2022
Current Customer Needs and Supporting Trends

Target Retailer Markets
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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 Rolexs 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 companys 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.

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.

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Reading time 2 min
Type Research Paper
Pages 2
Words 557
Subjects Business Company Analysis
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