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Introduction To make sure our customers are satisfied with every purchase,

To provide wholesale prices to the public, Brand Extensions Helen Ford

And to always remember that

I have Chosen Rolex as my brand extension. I chose This brand as they do not have any brand extensions already. I believe that this brand has a lot of potential in terms of new pathways and potentially new Customers; although I think the target market will be the same. In This report I am going to talk you through the key factors that the Company would have to considered before Setting up a brand Extension in their Business.


History Customer Profile SWOT 4P’s Brand Extensions Hotels Spa Hotel Accessories Gift Shop Competitors SummARY


History Hotel SPA

Hans Wilsdorf and his brother-in-law, Alfred Davis founded the watchmaking company In London. 1905 1908 The Brand name Rolex was created

Rolex obtains first chronometer certificate in switzerland for a wristwatch 1910

Rolex Patents Oyster design for a waterproof watch 1926

Rolex creates the ‘Turn-O-Graph’ 1950

1919 1945 1953 1931 Rolex introduces their first Datejust Rolex introduces the submariner, Wilsdorf forms montres Rolex introduced the Oyster the first automatic diving Rolex SA in Geneva, Swit- perpetual, the first waterproof & model, the first chronometer with an automatic date changing mechanism watch that is zerland to be close to self-winding watch water resistant Bienne, where his precision to 100 meters. movements are crafted.

Rolex launches the Day-Date Model 1956

Andre J. Heiniger succeeds Hans Wilsdorf as head of Rolex 1963

1960 Rolex founder Hans Wilsdorf dies

R.I.P 1881-1960

Hotel Accessories Patrick Heininger becomes managing director 1992

1978 The Oyster perpetual Date Sea Dweller is introduced, waterproof to a depth of 1,220 meters.

Gift Shop Future

2012 (Now)

Now with over 520,000 different styles of watches, in over 100 countries Rolex still relies on the old traditional style of handmade watches. Rolex do only have 4,000 hand making workers, working for Rolex to rely on now. The brand is still in very good shape but with traditions slowly dying out, this could be threat to Rolex. I thought brand extensions would be the perfect direction for the brand while the brand name still has the luxurious reputation.


Customer Profile History Customer Profile SWOT 4p’s Brand Extensions Hotels Spa

Hotel Accessories Gift Shop Competitors

Gender: Male Name: Laurence O’Driscoll Age: 32 Education: Higher Education Occupation: Barrister Salary: 45,000+ Geographic Location: in a big house in the country Marital Status: Married Family: 1 child 1 daughter Social Class: Upper Class A1


Rolex already have many Strength Weaknesses Opportunities and threats. Before creating new brand extensions the previous SWOT has to be analysed and looked at. If the business has too many threats and weaknesses at the time of the proposal then it is most likely that the company will not take on any more liabilities. By also looking at the SWOT for the brand extensions helps compare and see if the idea would work.

STRENGTH

History Customer Profile SWOT 4P’s Brand Extensions

• • • • • •

The brand already has a high profiled name. Loyal Customers. Connections worldwide, helps further opportunities. Unique Selling Point- Hand made Good Quality Good Promotional Techniques

WEAKNESS • The experience of the trade would have to get in completely new people to help them only small aspects could be taken from the trade. • Only sell one product • Highly priced so if sales go down, because of the high profiled name the prices could still no reduce.

Hotels Spa

Hotel Accessories Gift Shop Competitors

OPPORTUNITIES • Brand extenshion can create new pathway to create profits. • A good way to keep the brand going as you don’t come by many handmade watchmakers and they are slowly dying out. • New customers • Chance to expand as a brand as they have good connections already.

THREATS • Competitors in the hotel industry already and also competitors in the luxurious watch industry. • Already successful in the watch industry does not mean they will be in the hotel industry could ruin their reputation. • Copyright • The risk of the brand extenshions not working out

The strengths of the business being very high profiled and the good quality products give the brand potential to expand. The time is right to expand as if they wait any longer their threat might collide. If the company act quickly while they still have their luxurious name then the brand will succeed in its brand extensions.


The marketing mix is the combination of product, price, place and promotion for any business venture. Not one element of the marketing mix is more important than another; each element ideally supports the others. Firms modify each element in the marketing mix to establish an overall brand image and unique selling point that makes their products stand out from the competition. Product: Handmade Rolex Watches, Tutor brand is also owned by Rolex.

History Customer Profile SWOT 4P’s Brand Extensions Hotels Spa

Hotel Accessories Gift Shop Competitors

Price: Prices start from £4,370-said to be £8,000,000 (8million) but when this much money is spent, price is not a problem, any price can be given and if the customer likes the product it will be bought. Price does not exist on the website. Place: The location of Rolex shop’s or shops that sell Rolex products are placed usually on the top designer’s, Main Street. Rolex is placed next to other highly priced stores. Their shops are not always placed next to competitors as they are such a high up brand any competitor would struggle to survive so close to the store. Other good quality highly priced watches would be sold in department stores this could be a threat to Rolex as their stores highlight their unique selling point, as soon as it is put into a department store it suddenly turns to all the about the look therefore competitors could get the better of them at times. Promotion: First ever Promotion for Rolex was in 1926 when the Rolex Oyster was released. It was the first wristwatch to be considered waterproof, proven a year later when the watch was worn by the swimmer Mercedes Gleitze in his successful bid to cross the English Channel. This was beneficial to Wilsdorf whom had sponsored the event and gained considerable exposure for his new Oyster Watch. Wilsdorf recognised the importance of advertising and marketing his creation in order to gain publicity and prestige. Promotional techniques that Rolex use are their website. This is the main promotional material they use; their website outlines the history and highlights their uniqueness. They promote new products on their website and show other products their target market might be interested in looking at. Although Rolex do not do television ad’s they do still sponsor certain events. This gets their logo and name well known by a new market and some of these events are shown on telly worldwide promoting to potentially new customers. Rolex also use Magazines to promote their brand. High profiled magazines that have a luxurious reputation are where Rolex would be advertised for example Vogue. Rolex do not constantly advertise in magazines but they do in high point seasons. This is months such as the build up to Christmas when they have new products to promote ETC or even an event such as the Olympics. This is an example.


History Customer Profile SWOT 4P’s Brand Extensions Hotels Spa

Hotel Accessories Gift Shop Competitors

A brand Extension is when a brand decided to expand in a different direction to what it does at the moment. Some brand tend to go in similar direction to what they specialise in others decided to make a complete different pathway. Example: Virgin trains, there brand extension was television this diverse itself into a complete different direction. Whereas a brand such as M&S started off as a fruit and vegetable stall, and have expanded in many ways now selling Men’s clothing, Women’s clothing, Children’s clothing ETC. Rolex do not have any brand extensions at the minute. I have come up with 4 brand extensions that I think are right for the company. They fit in well with the aims and objectives of the brand and also target the same target market. This allows new customers to try out the brands new produce, but also gives the extensions an advantage. The four brand extensions I have chosen are all liked. The first one being, Rolex Hotels, this would be situated in many countries after it succeeded but first of all would start of in the UK. All the figures and predictions are taken from the UK and this is where my brand extensions would start up.


Hotel

The hotel will be built and made based upon the brand image and reputation of Rolex already, the design will give a similar feel to the privilege of the luxurious watch. It will be a similar aspect of the way in which the watches has been made. With the handmade feel of furnishing and the old wood style, adding a luxurious element by bringing in slight ticks of emerald green and rich gold. The hotels will be padded out with all Rolex Merchandise, furnishing the Interior completely with Rolex new products.


Gift Wrap £20

Gift set available from £200 Candles £25

Rolex

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Rolex Rolex

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SPA

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Bath £115 Body Oil £60

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Bath Oil

Make’s skin extra soft and relaxes the muscles.

£85 for set

Hand Cream £45

Body Oil

For all skin stypes Helps hydrate skin.

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Mouisturing Balm For Hands.

Radient Shampoo with real gold extracts

Gold soap £20

Conditioning balm with real gold extracts

gOLD sOAP maDE IN eNGLAND

bY rOLEX

Gift Box £40

My other brand extension is Rolex SPA, in the hotel there will be a SPA available to customers this gives them a chance to relax, wind down and be pampered. All Products will be available to buy to customers such as shampoo, conditioner, oils etc. Each customer at the spa will get a personal session and also advice on what treatment will be helpful to them. At the end of each treatment products will be suggested, and all products used on customer will be Rolex. Small samples will also be available within the rooms so that if some guests don’t try out the SPA then they can still try out the products.


Hotel Accessories

Slippers £230

LEX

Hangers £130 for 3

Above Towel Set £700

House Coat £290 Individual Towels £100 £120 Small £150 Big

Clock £10,000,000 Cup & Saucer £180

Hotel Accessories will be the kind of things found within the hotel rooms such as dressing gowns, slippers, clocks, ETC. All products in the rooms and around the hotel will be designed by Rolex but will not be on sale. This gives people the real luxurious element when staying at the hotel. They want to have the experience someone cannot make a reinterpretation of, by just buying the products, this will include Rolex bedding, Rolex headboard, Rolex Rug’s and many other garments in the room and around the hotel. When this Brand extensions is a success the company can then start to expand and think of what product they could move on to sell and add new, quirky, unexpected elements into the rooms. Although the hotels will be traditional they will also be Modernized, with high technology in all rooms as this is what the target market of this generation prefers. All Accessories will be available online, and in the hotel shop.


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Gift Wrap £20 Available In Shop For all Rolex Gifts

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£60

In each room it will be clear to the customers that any merchandise that is removed from the room will be charged on their bill with a fine that also has to be paid. It also makes it clear that the shop is open in the foyer and gives the times of opening and closing giving them the opportunity to buy products at our gift shop. All SPA and hotel accessories will also be available here.

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£30

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£60

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Gift Shop

Rolex

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£35

Rolex Rolex Rolex Ro

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£40 £60

£600

£40

£570

£250

£840

£1,000

The Gift shop will be situated in the hotel It will sell all this merchandise and many more. All Priced between £30-1,000.


Competitors

Rolex Have Many Competitors in the luxurious watch industry, brand such as Versace, Massoni Are on the same level in terms of price and quality. Rolex do have a hold over most competitors as they have a well-known name that has been relied upon for years and also because of its unique selling point of their watches being handmade. Competitors when starting up brand extensions could be other luxurious designers that have expanded into the hotel industry and succeeded such as Versace and Massoni. Also other highly priced hotel could be huge competitors such as Hilton etc. This is a business which was set out to be a hotel company, they know the ins and outs of how to become even more successful and have had years of experience in the industry. This could be a huge threat to Rolex’s Hotel brand expansion and could mean in the possibility of the brand losing its reputation. All Businesses have to take a risk at some point in order to reach a higher goal.


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Rolex Rolex

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History

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£85 for set

Body Oil

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For all skin stypes Helps hydrate skin.

Hand Cream £45

Rolex Rolex Rolex Ro

Customer Profile

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Bath Oil

Make’s skin extra soft and relaxes the muscles.

SWOT 4P’s Brand Extensions

Mouisturing Balm For Hands.

Radient Shampoo with real gold extracts

Gold soap £20

Conditioning balm with real gold

Gift Box £40

extracts

gOLD sOAP maDE IN eNGLAND

bY rOLEX

Hotels Spa

Summary

Individual Towels £100 £120 Small £150 Big

Clock £10,000,000 Cup & Saucer £180

Ro l

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Competitors

House Coat £290

Rolex

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Gift Shop

Above Towel Set £700

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Hotel Accessories

Hangers £130 for 3

Gift Wrap Available In Shop For all Rolex Gifts

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LEX

think it will work in the future and think it could be a huge stride for Rolex to take. Look at the drawback’s made me think about what would possibly go wrong and what risk I would face in the challenge to meeting my goal. These were not huge threats in order to not take it further. If I was to do this assignment again then I would probably create my blog to get feedback on my idea of other people. By other people giving feedback throughout the assignment really helps to progress and inspires me even more. Overall i enjoyed the project and learnt new skills on indesign.

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Slippers £230

Overall I think my idea went really well I do

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Rolex

Rolex

Candles £25

olex

Bath £115 Body Oil £60

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Rolex Rolex Rolex Ro

Gift Wrap £20

Gift set available from £200


Helen ford rolex brand extensions