Marketing Plan: Principles and Practices for Rolex Watch Launch

This report presents a marketing plan for the launch of a Rolex fashion watch, targeting the 18-35 age demographic in the London domestic market. It begins with an introduction to marketing principles and outlines the company's mission statement and corporate objectives, emphasizing customer satisfaction and market expansion. The report then delves into a detailed analysis of the macro-environment (political, economic, social, technological, environmental, and legal factors) and the task environment (customers, competitors, and suppliers). A comprehensive SWOT analysis is conducted to evaluate the strengths, weaknesses, opportunities, and threats associated with the product. Finally, the report addresses key marketing assumptions relevant to the product and service, culminating in strategic recommendations. The plan focuses on leveraging the watch's design, durability, and multi-functionality to gain a competitive edge and increase market share. The report also considers the challenges of pricing, competition, and changing customer preferences.

PRINCIPLES AND PRACTICES OF
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Mission statement for the organisation.............................................................................1
1.2 Corporate objectives for the organisation.........................................................................1
TASK 2............................................................................................................................................3
2.1 Analysis of the macro environment..................................................................................3
2.2 Analysis of the task environment.....................................................................................6
TASK 3............................................................................................................................................7
3.1 SWOT analysis and evaluation of the impact of each elements......................................7
TASK 4............................................................................................................................................9
4.1 Marketing assumptions relevant to the marketing of product and services.....................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is one of the key practices that every organization needs to carry for boosting
sales and spreading awareness among people. In this context, present report is prepared which
focuses on marketing plan for launching a watch of Rolex. Strategic marketing plan help
company in selecting right strategy for marketing of the product. This study helps in understand
objective of the company. Company chooses fashion watch segment in order to attract people of
18 to 35 year of age. The firm decides to introduce this product initially in the London' domestic
market. It prepares a strategic plan to identify its customers and market. This plan assists the
organization to set its mission or target the customer so that further decision can be taken on that
basis. This mission includes efforts of the company towards satisfying customers. This strategic
plan is also concerned with the corporate objectives of the company. This helps the organisation
in effectively attracting its target market.
TASK 1
1.1 Mission statement for the organisation
Rolex's mission is to satisfy their customers by purchasing each item. . The mission of the
company is set world class standard in watch industry by providing range and quality of products
and services (Ardley, 2005). Company focuses on satisfying it customers by providing with
wholesale prices to the public. Organisation's main aim is to remember that customers are
important in any situation. Firm focuses on providing the highest standard quality so that
satisfaction level of customers can be attained. Company always deal with effective distribution
and manufacturing. It focuses on continuous improvement in its products quality and services.
Over the year, company tries to expand its market by increasing satisfied customers.
1.2 Corporate objectives for the organisation
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The corporate objectives are developed and defined from the set goals of the
organization. From the above diagram it can be analysed that corporate objectives are the
enlarged and detailed version of organizational goals which helps the company to comply its
primary and long term goals and balance those in order to attain wide success measures. For the
present case company wants to introduce a fashionable watch which is new in the market and
perform different functions. Its corporate objective is to explore the market for fashion watch
which is designed for youth customers. It is planning to expand its market in different segment
and focus on providing choice to its customers. Organisation also includes market growth in its
corporate objectives. Rolex aim to increase its market share by 8% in next quarter (Catherine
Murphy and Kielgast, 2008). Company is required to increase its overall market share by
introducing new product. Corporate objectives of the company are concerned with range of
products product for different segment of the market.
Corporate objective of Rolex Pvt ltd focuses on vast areas of business which are as
described as under:
Key Areas Corporate objectives
Marketing
standing
 Company emphasizes on satisfaction level of its customers by
providing them valuable services.
 Firm divides its market in different segment in order to identify
individual's preference.
Productivity  Company's corporate objective is to use available resources and to
2
Illustration 1: Corporate objective of the company

focus on core activities.
Innovation  Corporate objective of the company is to introduce better processes for
improvements.
Profitability  Company focus on increase in profitability.
 Prime objectives of the company are to increase return on investment.
Physical &
financial
resources
 Organisation includes setting of new location for producing fashion
watches in its corporate objectives (KÄRNÄ, Juslin and SEPPÄLÄ,
2002).
 Decisions related to arrangement of funds and sources of funds also
come under corporate objectives of the firm.
Employees  Corporate objectives of business include improving employee relation
for better outcomes.
 Corporate objective of the business is to set effective organisational
structure .
Management  Company's objectives are to manage development of the fashion watch.
Public
responsibilities
 Corporate objectives of the company are to maintain effective social
and ethical behaviour.
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The above table provides a clear and effective vision of the corporate objectives which
the company has developed in order to expand its product range within the market. From the
above analysis it can be efficiently analysed that the entity has developed objective in every
segment in order to attain the set targets in a well developed means. The objectives related to
marketing helps in planning promotional measures, innovation and operational objectives defines
the goals for growth of product. Profitability objective helps in defining current focus of the
organization and so on.
TASK 2
2.1 Analysis of the macro environment
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Illustration 2: PESTEL analysis
(Source: Baker and Hart, 2008)

Macro environment is concerned with external factor that affects the decision making and
performance of the organisation. Macro environment is the external environment for the
organisation (Le Meunier-FitzHugh and Piercy, 2007). This is directly related with operation of
the business. The above diagram represents the elements which are considered while analysing
the macro environmental factors of the company. Macro environment analysis for the present
study can be done by studying the following factors: Political forces – Government provides tax relaxation to the company when they
establish new plant for operation. Policies of the government are supportive to the
business activity of the company. Government sets some restrictions for price setting.
This can affect pricing policy of the firm. This restriction is concerned with the level of
profit margin and total price of the product. Economic forces – Economical factor covers all aspects of economic which can impact
the operation of the company. The growth rate of UK economy was considerably low in
2009 which resulted in declining it to -1.5% however the current rate of growth within
the market in expected to be 0.5% (GDP growth in the UK slows more than expected to
0.5%, 2015). These factor reflects the purchasing power of the people and along with
consumer expectations. In this, market growth rate for fashionable watch are high
because it is new type of product (Ingram, 2014). Economic conditions are favourable for
the company because market inflation rates are very low. These help the company in
getting labour in average rates. High promotion for the product can increase the price of
the product and this can directly impact market of the company. Social forces – Company's new product fulfil the demand of the customers by providing
them with multiple functions in one product. Today's society is more focused on product
which is convenient and easy to use. Product of this organization provides multiple
facilities to its customers such as digital calendar, navigator and pulse rates checker
(Morgan, Vorhies and Mason, 2009). This product of the company is durable which can
create favourable environment for company in the society. Technological forces – Company is required to use the latest technology in order to
produce such qualitative products. Organisation can purchase this technology from other
companies or country but it will increase cost for the product. Company should focus on
best quality product in the minimum cost. As describe above about the functions of the
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product, these help in attracting more and more customers. In some aspects, technological
factors are not favourable for the company. Environmental forces – Environmental forces for this product is waste disposal and
recycling procedures (Phillips, Davies and Moutinho, 2001). Company can get material
easily in UK for producing the fashionable watches. It will not affect organisation's
process because from last many decades company operate in same industry.
Environmental forces are favourable for the company in this market.
 Legal forces – These forces deal with employment laws, trade regulations and
restrictions. Rolex work under an ethical and legal framework so trade regulation cannot
affect activities of business. Legal forces are partly favourable for the company to operate
in this market.
2.2 Analysis of the task environment
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Task environment is concerned with external forces of the organisation which can affect
its power of achieving objectives (Siomkos and Vrechopoulos, 2002). This includes all those
parts of market which are directly related with operation of the business. The above diagram
reflects all the associated factors for task diagram. They are as follows: Customers – Company focus on targeted customers which are 18 to 35 year of age. This
age group are attracted to innovative products so the customers of this market response
positively toward fashionable watch. Larger part of population of UK is in maturity stage
and their taste and preferences are changing with time. Organisation’s aim to satisfy
maximum customers by providing quality product and services. Competitors – Rolex face tough competition from its competitor’s companies. So,
company focuses on developing product because this can help the organisation in gaining
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Illustration 3: Task environment
(Source: Le Meunier-FitzHugh and Piercy, 2007)

benefit from its quality. This product helps the company in gaining advantage over its
competitors (Aaker, Kumar and Day, 2008). Company uses new technology in this
product so it also helps business in gaining customer’s loyalty.
 Suppliers – Organisation need sources for raw material in order to conduct their
operations. Company purchases technology from other firms in order to provide
multifunctional and fashionable watch to its customers in minimum price. Banks and
other financial institute are fund provider for the company.
TASK 3
3.1 SWOT analysis and evaluation of the impact of each elements
Following is the SWOT analysis for the fashionable watch:
Strengths
 New design
 Durability
 Multifunctional
 Luxury
 Unique product
 Innovation
Weaknesses
 Price of the product
 Only for targeted customers
 less variety of colours
 Style limitation
Opportunities
 Expansion in other countries
 Reduce cost through efficient
technology
 Maintain exclusivity of brand
 Strong demand for high quality,
durable products
Threats
 Competition
 Economic slowdown
 Changes in taste and preferences of
customers
Strengths – The main strength of this product is its new design in the market. This will
help in attracting more customers. This product has another quality which is long lasting service.
Quality of the Product is very good and this will help in promoting itself (Baker and Hart, 2008).
The product also has multiple functions which help the customers in saving their time. The
fashionable watch have functions such as calendar, navigator and pulse rate checker. This helps
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in attracting customers and assists in increasing its sales. The product also needs less promotion
because it is unique in the market. This will help the company in increasing its market shares.
The product is the innovation by the company and this will help in attracting more customers.
Weakness – Company may face some challenges in producing the product. The product
has weaknesses also which can affect market position of the product as well as company. It is
new type of product in the market so organisation requires some new technologies which cost
high to the firm and result in increasing the price of the product. It will cost high to the company
in switching from one product to another (Beamish and Ashford, 2007). Organisation spent huge
amount on research & development of the product which also increases the price of the product.
The product has another weakness that it only targets a group of people. This can cause for less
number of customers in the market. The product is introduced with less variety of colours so this
can be weakness for the product. This also has limited variation in style.
Opportunities – The product have many opportunities with it. The company can expand
its business of such products across the world. Firm can use this product for creating brand
image in the market. Company has opportunities for improving their previous technology.
Organisation can increase its own market share by providing varieties of qualitative products
(Doole and Lowe, 2012). Fashionable watch has a great opportunity of expansion because there
is strong demand in the market for high quality and durable products. Company can reduce its
cost by using efficient technology. Further, it can also reduce cost by allocating the resources.
Organisation can also make innovation in new designs and styles in order to attract the youth. It
is great opportunity to the firm to penetrate in the global market with same product.
Threats – The biggest threats for every product is from its competitors. Company has a
threat from its competitors because if product survives in the market successfully then other
company also tries to copy the product style. This will result in decreasing the number of
customers. Another threat from competitors arises when they provide same type of technology in
low price. Development and production of this product requires technology and knowledge
which can cost high to the firm. Customer's taste and preference change with time so this can be
another threat for the company (Lilien and Rangaswamy, 2004). If these changes take place
rapidly then company has threat for its product of becoming old fashion.
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TASK 4
4.1 Marketing assumptions relevant to the marketing of product and services
Product positioning is one of the most crucial and significant part of the business
development and brand expansion measures. This helps the company in creating a wide and
effective impact on the growth of the firm. In order to develop a clear and effective impact on
sales for the new product Rolex must develop a product positing measures in order to attain the
success of the company.
Illustration 4: Product positing map
The above diagram defines the dimension which helps the company in creating an
effective and valid impact on the organizational growth and development. New range of Rolex
will focus on young generation and will be highly priced thus this product will be placed in the
same quarter of the diagram. It has been assumed that customers are willing to pay high prices
for Rolex due to its brand image. Considering this, prices for new watches will be charged
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premium so that only royal customer can afford the same. Above diagram also specifies that
close competitors of Rolex are Tag Heur and Cartier. Therefore, it needs to be develop strategy
so that they can attract customers towards it.
Marketing assumptions for the product and service are assumptions of market condition
in the future. Market assumptions help in understanding the future market condition which can
result in avoiding any unfavourable situation. Following are the fields in which marketing
assumption should be undertake in order to identify area of threats: Socio-demographic forces – Marketing assumption related to these forces are concerned
with cultural and social impact on marketing of the fashionable watch. Assumption can
be related with acceptance of product by the society. Availability of the product in the
market is also considered under this forces. Technological forces – Marketing assumption of technology include technology used by
competitors and new technology in the market. Assumption related to technology deal
with using effective and less costly techniques (Westwood, 2012). Company have an
option of purchasing new technology for betterment. Markets – The assumptions of market can be related with its segments. Marketing
assumption for fashionable watch is emergence of substitute product by other company.
This also includes entry of new competitor in the same segment of fashion industry.
Marketing assumption for this product is on the basis of competition with other
companies. Another assumption is that market conditions are not favourable for company
all the time. Further, the market deals with high competition from same type of
manufacturers. Customers – Customers are the target of any company for sale their product. Customers'
taste and preference are different regading product and service. Company makes
assumption related to channels of distribution for the product. Another marketing
assumption is that customer believes in brand rather than price of the product. Further,
their decision of purchasing is also based on the brand name rather than price of the
goods. Financial management – Marketing assumption related to financial management is that
fund can easily raise through different sources (Wrenn and Mansfield, 2014). This is also
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concern with market share of the company. It also assumes that breakeven point for the
organisation is major concerning terms. Stakeholders – Marketing assumption for stakeholders is that demand of key
stakeholders change over time. It also includes that their preference regarding company
change with the passage of time. Employees – Assumption about employees focus on skills which need to be developed
for completing their work within the time. This also believes that availability of skilled
worker is less in the market. Further, company need to pay more for the same work force.
 Internal processes – Marketing assumption are related with the process is that internal
process needs to be evaluated time by time. This also assumes that process of business
changes in future so heavy investment in implementing such process is wastage of funds
(Hollensen, 2015). Furthermore, changes in internal process of the business can be
resulted in implementation of new training and development programme.
CONCLUSION
Marketing is an important process for every business. The process of marketing planning
is very important for success of any business. This help in setting goal for the company and
provide guidelines to achieve them within time. Marketing principles are the set of rules which
result in effective planning for the future. This provides help in analysing current market
situation by using various tools such as PESTEL and SWOT analysis.
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REFERENCES
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Management. 20(1). pp. 90-97.
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Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
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Westwood, J., 2012. The Marketing Plan: A Step-by-step Guide. Kogan Page Publishers.
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Online
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