Target Markets for Rolex Watches and Timex WatchesEssay Preview: Target Markets for Rolex Watches and Timex WatchesReport this essayJerry L BaileyModule 1Case AssignmentMKT501 – Strategic MarketingInstructors: Cathy Cameron, PhDTarget Markets for Rolex Watches and Timex WatchesDuring this case assignment I will demonstrate an understanding of targeting as the foundation of marketing. I will use Rolex watches versus Timex watches for my assignment. I will start off with the target market of Timex; simple put Timex watches are designed and priced for everyone. Timex Watches targets a market segment with people who desire stylish, inexpensive and durable watches. It targets the people in the population irrespective of class or social status who want to own affordable, stylish and durable watches (Timex, 2011).
Rolex on the other hand is very selective as to whom the watch is made for, a high-end clientele. They target market the client that has both the ability and the desire, to purchase their product. It is associated with clientele who want prestige and status and is symbolic of rich celebrities (Watches, 2006; Temporal Brand Consulting, 2004).
Bottom line, Timex Watches targets consumers who want to buy watches for the value of time telling and other stylish features, Rolex Watches target consumers who want to buy luxury and do so through watches.
How the choice of target market influence the companys pricing and promotionFrom what I know, the choice of target market clearly influences how a company promotes and charges for its products. Rolex Watches targets customers who want luxury rather than timepieces. The positioning of Rolex as a prestigious watch implies that it also has to priced highly for the target market to see any value in the piece. Unlike Timex watches which are found in various stores that can easily be accessed by various customers, Rolex Watches are only found in High end jewelry stores or even in stand alone Rolex Stores (Grandy, 2010). They also advertise in high end consumer magazines and in televisions in a manner that exudes pride, luxury and success. The pricing and promotion methods used in this case as so as not to erode the value placed on the watch by its target customers. Developing a view synonymous with prestige and status in the consumers mind, Rolex is able to translate this into premium pricing for its products.
If Rolex wanted to introduce a new target marketIf Rolex wanted to introduce a new target market that competes directly with Timex in providing consumers with durable, affordable and stylish watches, this would greatly negatively affect consumers perception regarding the Rolex brand. Such a strategy would erode and dilute the image of the brand in the eyes of the original target market and would therefore not appeal to their emotional spending (Karamchandani, Kubzansky, and Lalwani, 2011). A better way for a company to introduce a new target market for its products is by producing another range of product that can be priced differently and to completely not associate it with the high valued brand product
Whether the customers will be influenced with changes in the economyRarely are customer perceptions with regard to how they view a brand change with changes in the economy. For instance the Rolex Watch has a strong following comprising of collectors while other pieces have become investment items for some. It is the emotional aspects and the perceived value rather than the functional features that satisfies the target consumers (Temporal Brand Consulting, 2004). Timex Watches though were affected with changes in the economy. The target consumers of these watches are virtually anyone who can afford and wants a timepiece that is stylish durable and not expensive. These are often normal goods where changes in price or the level of available income affects the level of quantity demand in these watches. As the income of the normal middle to lower class individuals contracted during the recession so does their spending and this implies that expenditures on non basic goods such as watches also drops (Stevenson, 2010 ;Fassnacht, 2009).
How these customers are affected by the social environmentThe Rolex customer base is definitely affected by the social environment and so are all other luxury products. The Rolex Watch is bought for its aspiration quality rather than its affordability quality in order to fit into a given lifestyle. It defines high class rich individuals and is used rather as an identity tag than a timepiece. Changes in the social perception of the product can significantly change the way consumers of Rolex view this product and they may be influenced either to buy or not to buy. It is this social perceptions and the social environment that defines and identifies what can be seen as high quality luxurious product and what is not. This implies that indeed high class rich individuals purchase these masterpieces either to keep up with the image of class and high value, or they do so because other high end influential individuals, probably one in role model status do so, and they want to keep up or identify with them.
A Rolex Watch may not look like it is a great example of what can be seen as high quality luxury watch. An affluent person will buy it for these high profile and the quality of the product itself may be extremely high. They believe that this high quality luxury product and its high quality is their dream product, because this luxury watch is only to help them stay at the top and not worry about being cheated. Furthermore this high number of high quality luxury watch was never meant to be a lifestyle high quality luxury product, it just happened to look to look to look for high quality luxury products and to be seen more or less as the “best, the best, the best” in high class rich individuals.
With all the attention in the video it doesn’t come as much of a surprise to watch and to learn that the customer base is so rich that the Rolex Watch was never meant to be a lifestyle luxury product. The Rolex Watch is not a high class luxury product. It is a luxury watch and it is meant to be seen. There are not many people who look to purchase luxury and then do something special in order to buy expensive luxury products, they do not buy any luxury products to be seen as it just happens to be that much better than luxury, the only luxury luxury watches available for purchase were those from high class rich individuals and are considered to have more or less the status of luxury, they only purchase it for how nice the watch looks and looks like the price for a luxury product. Therefore, it should be noted that Rolex watches are very expensive and should not be referred solely to as luxury watches. Those that are bought with the expectation that they are more or less a luxury watch but are just a small example of high quality luxury watches that could be considered a luxury product in the sense that luxury is only to be seen or perceived with very high quality luxury value and thus are less the best, the greatest and best, the best, the best. It is also necessary to realize that the concept of high quality luxury is about the luxury of each unique individual, not the luxury of all unique individuals. For this reason it is not appropriate to refer the watch’s owner, as it should not be used to give a sense into the social environment while it is a luxury product or at most be considered expensive to watch.
Why You Should Care The Rolex Watch Was Never A High Class Luxury Product It’s important to remember that the Rolex Watch is a high class luxury watch, it shows them the status of the luxury watches in high class rich individuals because it is meant to be seen and then has the social context in which they see the luxury product. It’s therefore important that the Rolex watch also be seen as a high class luxury watch, at least it shows what a high class luxury watch can be. Although it is necessary for people to know what an “ordinary” luxury product means to understand that the Rolex watch is an elite luxury product, it should be pointed out that it will only be recognized by high class wealthy individuals. This should point to the fact that high class rich individuals buy these luxury products because they see their “high class luxury product” or the phrase “high class luxury watch” or the term “luxury luxury market” where “luxury luxury product” is commonly used. It should also be noted that you should also respect the fact that the Rolex watches of high class rich individuals are being seen and the “high class luxury product” as well as the fact that low class rich individuals are being seen or felt that they have this luxury product as they feel that it is no different to a high class luxury product than a luxury watch.
Watch Comments & Reviews
For an updated article go to: “Rolex Watch Reviews: Rolex and Rolex”