Marketing Communication
of ROLEX
Prepared by:
Muntasir Hafij
Sivdad Simhad
Dewan Saif
Answer
to
question
1:
Ans:
Rolex targets affluent people aged 35-60, where the household
income is above $100,000+. Many customers aspired to own a Rolex and
when they achieve this, they stick with the brand for life.
In order to sustain this luxury brand reputation, Rolex embrace a wide
range of marketing communication activities. Rolex implies all types of
model of communications.
Rolex in Linear model of communication:
The primary tool for Rolex in linear model of communication is paper
advertisements. Through paper advertisements, Rolex tries to aware people
in a different way through examples of those individuals, who achieve
success (i.e. Wearing Rolex while climbing the top of the Everest- Sir
Edmund Hillary).
Rolex in Interactional model of communication:
The key tool of Rolex in implying the interactional model of communication
is their sponsorship strategy structured around culture, arts and events
such as Wimbledon Tennis, Master’s Golf, F1 racing etc. Rolex seeks to
associate themselves with extra-ordinary individuals who have the courage
and conviction to take major challenges.
Rolex in WOM model of communication:
Rolex implies the WOM communication in two ways, first is the use of brand
ambassadors (i.e. Roger Federer). People who become Rolex ambassadors
are clear winners in their chosen field. Through ambassadors, Rolex tries to
demonstrate qualities such as endurance and individuals achievements, that
Rolex hope others will value and associate with the brand. Second is
supporting pioneer individuals whose project benefits the community and
the world through the ‘Rolex Awards for Enterprise’.
Rolex implies all types of model of communication through their Television
commercials, paper ads, sponsoring events etc, and try to influence people
in a different way and they also convey the message that they promote
success and in their commercials it is something like ‘If you would wear a
Rolex, You would take on major challenges confidently’.
Answer
to
Question 2:
There are FIVE INTERPRETATIONS of how marketing communications works. The first is the ‘sequential buying processes’.
The SEQUENCIAL BUYING PROCESS consist of the AIDA model, hierarchy of effects model and the information processing model. AIDA is an acronym for ‘attention’, that means to capture the attention of the targeted audience. Then ‘interest’, that means after getting attention we have to get them interested in the product. Then comes ‘desire’, which can be engendered by showing what the product will offer or how it will solve their problems. And finally ’action’, that is to get them buy the product, or at least agree to the proposals.
Then comes the HIERERCHY OF EFFECTS model. This model represents the process by which advertising was thought to work through a series of steps. That is, to first create awareness to the audience regarding the product, then
knowledge, that is, to educate them, then liking and preference for it, and finally to have them convicted and make them purchase the product.
Both of these models can be related to Rolex, since Rolex has done exactly all these through a mix of marketing tools such as advertising, media, mobile, public relations, through brand ambassadors etc. Their targeted customers are only those who are affluent, and Rolex has always associated itself with high prices and very high quality by keeping their marketing tools and promotional activities consistent with the kind audience they have targeted.
Then there’s the INFORMTION PROCESSING model, which has similarities with the other two models, except that it includes a retention stage.
The second interpretation is – ‘Changing attitudes with marketing
communications’. Attitude change has been regarded by many practitioners as the main way to influence audiences through marketing communications. Attitude towards a brand might be superficial, thus this can be corrected by building credibility. For example, a Rolex brand ambassador, such as, Ed Visteurs, a
mountain climber who has conquered 14 of the world’s highest peaks without the use of supplemental oxygen, provide a rich form of source credibility.
The beliefs regarding the performance of the product may also be changed. This can be observed through an ad of Rolex which depicts Mercedes Gleitz, who wore a Rolex during her 10-hour swim of the English Channel in 1926. This
demonstrated the world’s first waterproof watch and the ad associates the functionality of resilience and durability.
New brand associations may also be introduced or changed. Rolex does this by using celebrities or individuals who are highly successful in their chosen fields, such as, Rodger Federer in tennis, skiers Carlo Janka and Lindsey Vonn, and Phil Mickelson and Luke Donald from the world of Golf.
Here we can see a graph which represents the customer relationship cycle. On the y-axis we have ‘relationship intensity’ ranging from low to high. And on the x-axis we have ‘time and duration of relationship’, which starts with acquisition. During the acquisition phase, marketing communications needs to be focused towards creating awareness and to make the product familiar to the audience. Then it is the development phase, where the seller tries to reduce buyer risk and enhance
credibility. As the case study says, Rolex ensures this through credible
extraordinary individuals and brand ambassadors. Then comes the retention stage. The retention phase will last as long as the buyer and seller are able to meet their individual and joint goals. During this stage, the intensity of the relationship will be the highest. Just like in the case study where it says that there are MANY Rolex customers who have decided to stick with their brand for their whole lives. But after having built a strong relationship, if it starts to become weak, then we can say that the relationship has entered the decline phase.
Next comes DEVELOPING SIGNIFICANT VALUE. Marking communications consists of a set of tools & media that are used to differentiate in ways to convey messages to & with the audience. Depending on the context in which its created, delivered & interpreted, the brand & the individual has the opportunity to interact.
Now, marketing communications messages normally pass the individuals
unabsorbed. Those that are remembered portrays that the product is different or new. Rolex has distinguished themselves as one luxury watch brand that makes the most durable watches in the world. This way the message executed are different & interesting. The commercials also need to be personally significant to the
individual in their current context. The term “Significant” here means meaningful and relevant. When a person sees a ROLEX commercial, je is immediately
reminded of the ROLEX’s Passion for Precision & the rich history behind the development of each timepiece.
Finally there’s the COGNITIVE PROCESSING”. This how buyers actively and passively process information. In an attempt to understand how the information is used, cognitive Processing tries to determine the meanings or patterns of thoughts and how these meanings are combined to form judgments.
It starts with reading/hearing/viewing a message. i.e. A ROLEX Commercial
Fig. The Cognitive Process model After the exposure to the message, three responses are derived:
a)
Product Message
Directed towards the product itself. This results in two further responses I. Counter argument- when the receiver disagrees with the message. II. Support argument- positively related to the message’s acceptance.
b) Source Oriented Thoughts
This relates the source of the message and its credibility. Clients will always look forward to a reliable source of the message to confirm its legitimacy. Due to this reason, ROLEX always maintains a strong brand image
throughout its supply chain right down to its select retailers. c) Execution
This relates the thoughts of the individuals may have about the overall design and impact of the message.
Next comes the Attitude towards the Brand vs Attitude towards the Advertisement.
It is clear that people make judgments on the quality of the commercial. This includes advertisements, their creativity, tone & style in which they are executed. If the client like the message they will like the Brand(in this case ROLEX), and eventually the Product(i.e. ROLEX DAYTONA).
And given that all the circumstances are positive, the client will proceed to BUYING.
Answer
to
Question
3:
The analysis show that each of the 5 interpretations are significant in their own right. However, there are subtle differences and similarities that makes two stand out, namely SHAPING RELATIONSHIPS & COGNITIVE
PROCESSING. While in Shaping Relationships, there are common features to that of sequential buying and changing attitudes, it clearly stands out with customer retention. Then there’s the Cognitive Processing, which involves cognitive thought process of a potential client staring with his first exposure to a commercial, right up to the thoughts that eventually leads to the final judgement of whether or not will he buy the product. Finding a superior interpretation is a question that’s open to wide interpretations, but focussing on this specific case, both Shaping Relationships & Cognitive Processing appears to be a extremely useful tool.
