Target Markets for Rolex Watches and Timex Watches

Jerry L Bailey

Module 1Case Assignment

MKT501 - Strategic Marketing

Instructors: Cathy Cameron, PhD

Target Markets for Rolex Watches and Timex Watches

During 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 company's pricing and promotion

From 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 market

If 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 economy

Rarely 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 environment

The 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.

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