Marketing - Luxury Watch Marketing Plan

S(trengths) – Foxy Originals has saturated the Canadian market, which presents an opportunity for growth. The two owners have extensive experience in designing jewelry, having done so since they were in high school. They’re good at what they do and have had time to perfect their trade. They also have a firm grasp of who their target market is, so they are able to offer “fresh, fun, and funky” products at a reasonable price. With such a specific product (rather than just general jewelry), it creates a niche market that will generate loyal customers.

One of the primary change in strategies would require pruning Omega’s product lines to make it more coherent and to eliminate any potential intra-firm competition. Typically, the lower end models need to be pruned so that it could be positioned as a more effective Luxurious Brand to compete directly against other Luxury Brand watches. The prevention of any overlapping with sub-brands will ensure that there is no potential risk to the dilution of brand image as well as reduce the risk of cannibalization of the current product lines. This will also help in uplifting the overall brand image of the Omega brand by withdrawing a number of Omega’s low-priced models thereby boosting the band profitability which will ensure that there is enough opportunity for the improvement on brand margins - a key factor in reducing the price differences with Rolex. Another underlying argument is that this process will enable the exclusivity

In 1837, a man named Charles Lewis Tiffany founded the company Tiffany, but it was not until 1853 when the same man decided to rename the company Tiffany & Co. and make the switch from being a company that sold stationary objects, to a company that focused on the creation and distribution of luxury jewelry (Agrawal). Since the reconfiguration of the company, and over 150 years later, Tiffany & Co. has transformed from a regular retailor like the well-known Macys, JcPenney’s and Kohl’s, which all offer jewelry for sale, to a distinguished brand that is the leader of the specialty jewelry industry (Tiffany). The quest to becoming such an iconic brand, can be linked to the market structure in which Tiffany & Co. encompasses and how the company surpassed its competitors, maneuvered through the entry barriers, established market power and differentiated its standardized products to its consumers. However, before analyzing the market structure in which they reside one must understand all of the market structures.

This paper aims to examine the brand’s major strengths and weaknesses, the current target market and the new markets that Rolex has not yet covered. It will also investigate the state of affairs of the company’s major competitors, together with their marketing and pricing strategies. This report also provides some insight into the company’s operations and strategies that aim to preserve its leadership in the luxury watchmaking

To the untrained eye, a ring is just a piece of jewelry. There is little to no appreciation for how its made or how valuable it is, just as long as it glistens and glows. To jewelers, the untrained eye is a menace, as a man buying an engagement ring will not care about the carats or the uniqueness of the piece, as long as it ‘looks like Beyonce’s.’ While jewelers are making pieces with unpopular gems and metals at excessive prices, salesmen struggle to sell these, as what is popular is what sells. To combat this wave of uninformed, trend-obsessed consumers, Jewelers’ Circular Keystone, a trade magazine whose audience is jewelers and salesmen, features content relating to the current status of the jewelry industry, as it changes seasonally. Keeping up with the times is imperative when working in jewelry, and as time changes so must JCK. In this trade magazine,

The biography presented reports Beckham’s “charisma” and success, as well as an high achiever. Rolex leads their buyers to believe that success can work hand-in-hand with material items, which in this advertisement is a costly watch. Emotional words like “surpassed”, “unsurpassed” and “sensational” empowers consumers to understand he is elite. This demonstrates that anyone with a nobility lifestyle need the Rolex to display their own value. The intended buyer/audience to Rolex is anyone who “Live for greatness” and anyone who has the money to buy a watch like this. Also, anyone who believes they are successful is the intended audience, since they portray a successful person like David Beckham to try and sell Rolex

As stated by Kapferer and Bastien as their anti-law number 16, a luxury brand shouldn’t have celebrities as public ambassador. “One of the characteristics of a luxury brand is the personal relationship that the client maintains with it” (JN Kapferer and V Bastien, 2012, p. 261). Nevertheless, being associated with respectable public figures is a good way to make a new brand known. So for our launching, we will collect the best pieces in both of our branches and make a private exhibit in each city for the most distinguished collectors, antique agents, and fashion bloggers. They are the celebrities in the jewelry vintage

2. The next cause boils down to a large extent of how the consumers regard the brand. There are many assorted brands available in the marketplace these days but consumers continue to obtain only a handful of the brands they trust and are familiar with. The reason for this is that when consumers decide to buy a new watch, they normally purchase a brand which they highly regard.

Price: Designer watches of course will be affected by the cost of research and acquisition of a reputable designer but for the brand to be recognized they will have to start creating a slide, ie, a current price is 375$ for a rose gold plated watch. It has been noted that these watches turn colors after limited use. A partnership with Movado will enhance the novelty and the price so expect to be seeing 1000$ being a price for a watch, if only as to secure this market. Handbags also will need an upheaval in price so far. Note, prices in the range of 5000-7500$ for a bag with tribal print and/or animal print this will give the consumer recognition of this brand in a non-fad way.

In essence, branding is all about differentiation and consistency. It always has been able to effectively establish an emotional relationship with customers. They compete with each other with the quality of watches that they make for example; Rolex provides a variety of choice for their customers and provides their wants and desires. This includes; by making their watches handcrafted, and putting diamonds into their watches to make it more luxurious etc. Another way for them competing is level of service provided. If a customer comes to Rolex they will ensure that they provide insurance and great level of customer service. This will increase repeat-purchase and brand loyalty among their customers. Rolex is considered untouchable in its position as the world’s leading luxury watch brand both in terms of industry prestige and its

Based on its potential for growth and value addition, the Government of India has declared the Gems and Jewellery sector as a focus area for export promotion. The Government has recently undertaken various measures to promote investments and to upgrade technology and skills to promote ‘Brand India’ in the international market.

as watches with style, class, flair and quality. In these days of mass produced generic watches that tend

What is interesting in this market is that there are no clear leaders. Even though each company’s goal is to make the more profit as possible, we can’t define any leader since they have different strategies and objectives.8 [ (Tower) ] For example, Patek Philippe’s core ideology is to have the most prestigious brand and to make the most expensive watch as possible, and target the most prestigious people which is a really niche market. In comparison, Rolex’s purpose is to be a more accessible luxury brand and make the most sales as possible. It is difficult to compare them in terms of success, Rolex sells more but Patek has a much higher reputation.

Middle class is booming worldwide and with prosperity comes consumers ' desire to show that they are doing well, therefore super brands like Danish Pandora and British Signet also called “category killers”, has stormed the global jewellery market where there is money to fight for. Pandora competes in affordable luxury segment, which in 2009 totalled 83 billion USD, equivalent to approx. 57% of the total market for fine jewellery. Affordable luxury still gives consumers the feel of stardust.

The threat of substitutes: where it refers to substitute product as those that are available in other industry which can also fulfil the need and want of the consumers. It can affect competition in an industry by placing an invisible ceiling on prices which companies within the industry can charge, due to the fact that if the cost of substitute is low then the consumers will tend to purchase substitutes, therefore limiting the prices that a company can place on certain items to gain maximum profit. For example, lemonade can be substituted for a soft drink. Generally, competitive pressures arising from substitute products increase as the relative price of substitute products declines and as consumer 's switching costs decrease.