Discuss about the Consumer Behaviour for International Marketing Strategy.
With increasing competition in the global market, every organization is looking to initiate effective marketing strategy in order to achieve competitive advantage in the market. Specifically, globalization has provided organizations huge potential market for enhancing the business in an appropriate manner. Now, implementation of effective marketing strategy heavily depends on several factors that organizations need to utilize in an effective way. In this report, the focus will be on one of the pioneers in wristwatch industry namely Rolex. Hans Wilsdorf and Alfred Davis established Rolex watches in the year of 1905 ("Discover more on Rolex.com", 2016). Thus, the organization is the business for more than 100 years that establish the fact that the focus organization has able to implement effective marketing strategy for reaching to its target group of customers. In this report, the focus will be on the implemented marketing strategy for Oyster and Cellini collections 2016 of Rolex watches, so that it can able to create desired impact on the market. In this report, in-depth analysis will be provided on the entire decision-making process of the Rolex watches in order to highlight the kind of impact it can have on the market. The report will also provide analysis of different factors that are creating impact on the overall effectiveness of the implemented strategies. Furthermore, it also has provided recommendations for Rolex watches so that it can able to achieve sustainable growth in the market.
Situation analysis of the company:
As highlighted by Perreault Jr, Cannon & McCarthy (2013) situation analysis can help organization to identify its present position in the market. Several theories and models have been developed for analyzing the present situation of the organization in an appropriate way. BCG matrix is among the most popular technique for the evaluation of the present situation of a particular organization in the market. Thus, the BCG analysis for Rolex watches is provided as follows:
As highlighted by Ferrell & Hartline (2012) dogs represent an organization with low growth rate and low market share. Thus, it actually represents a business with very little potential to achieve sustainable growth in the market. Now, Rolex is regarded as the most esteemed brand in the global market. Therefore, it is obvious that the organization will have huge potential to grow business even further. Thus, Rolex cannot be categorized under the dog segment.
Question mark represents an organization with low market share in a high growth market (Berthon et al., 2012). Thus, it primarily highlights an organization that has just started business in a particular industry. Thus, Rolex can also not be included in the question mark section, as it is in the business for more than 100 years. Furthermore, Rolex has major share of the luxury watch market that keeps the organization out of question mark section.
As highlighted by Armstrong et al. (2012) cash cow represents an organization with high market share but very limited growth opportunity. However, implemented marketing strategies of Rolex have provided enough opportunity for increasing the market share in an appropriate way. Therefore, the organization definitely does not belong to the cash cow segment of BCG matrix.
As highlighted by Morgan, Katsikeas & Vorhies (2012) star represents an organization with large market share in the fast growing market. Now, Rolex is the market leader in providing luxury wristwatches in the global market. Therefore, it can be easily assessed that the organization is in the star segment of BCG matrix. Furthermore, as the organization is launching new brands, it is expected that it will continuously able to grow its market share in the market.
Target market description:
As per the article by Chaffey & Ellis-Chadwick (2012), proper utilization of target marketing strategy allows organizations to reach to the potential customers in an appropriate way. Specifically, target market helps all the multinational organizations to identify and implement effective penetration strategies in order to fulfil all the marketing objectives. Now, Oyster and Cellini collections 2016 of Rolex represent luxury watches that are extremely expensive comparatively to any other wristwatches available in the market. Thus, Rolex target marketing strategy will have to target people with specific level of income. Thus, the targeting strategy of the organization will have to be extremely specific. Otherwise, it will not able to create desired impact on the market.
Thus, Rolex targeting strategy includes market segmentation approach in order to reach to the potential customers. Geographical segmentation of Rolex focuses on the developed countries so that it can able to create positive impact on the market (Kotler et al., 2015). On the other hand, demographical segmentation of Rolex focuses on the age group between 30 to 55 years people. However, the prime focus of Rolex will have to on the income group of people, as the expenses of Rolex watches is very much unaffordable for people living with below or average income level.
Target market decision-making process:
As per the article by Solomon, Russell-Bennett & Previte (2013) decision-making process is extremely important for fulfilling all the marketing objectives of the organization. Now, Rolex utilizes systematic procedure at the time of developing decisions for fulfilling all the objectives in an appropriate way. Firstly, the decision-making process of Rolex focuses on to evaluate the kind of challenges it has to face at the time of placing products in the target market. Therefore, Rolex has implemented different survey techniques in order to identify the needs of the target market in an appropriate way. For instance, the taste and preferences of the markets are expected to change over time. Therefore, it is necessary for the organization to identify the change in needs in an appropriate manner (Ekesa et al., 2015). Rolex has to develop decisions in order to identify the needs of the market in an appropriate way. Thus, the decision making process of the organization focuses on the effective evaluation of alternative marketing strategies in order to create maximum impact on the market. Alternative evaluation requires effective utilization of market survey, as it will provide an idea regarding the prime challenges that organization has to face in near future. For instance, Rolex needs to evaluate the competitor’s business strategy to reach to its potential customers in an effective manner.
Thereafter, Rolex focuses on the development of marketing campaign in order to reach to its targeted customers. Now, as the target market of the organization are high income group people, the decision-making process regarding the implementation of marketing strategy also focused on the factors like sense of satisfaction or achievement. It is important for the organization, as it induce people to fulfil their esteemed needs. Furthermore, Rolex decision-making process also has to include the brand positioning strategy, which is necessary for fulfilling all the marketing objectives. As per the article by Tingchi et al. (2013) positioning refers to a particular place that a brand occupies in the mind of the potential customers. Thus, it is essential for Rolex to develop decisions in such a way so that it can able to create desired impact on the mind of the customers.
Two social influences on buying behaviour:
As highlighted by Duarte, Raposo & Ferraz (2013) consumer buying behaviour refers to the purchase, selection and consumption pattern of the people for fulfilling all the wants in an appropriate manner. Several social factors can have impact on the purchasing pattern of the people. In order to evaluate the buying behaviour of Rolex customers, family and references group has to be evaluated in an effective manner. Many studies have highlighted the fact that reference group has the potential to influence a particular individual for buying a particular product. Specifically, if the brands or the products are visible like dress, watches, shoes or phones, it can easily instigate other people of the groups to purchase similar products. Now, Oyster and Cellini collections 2016 is the most updated version of Rolex watches that has very limited owners in the market. Therefore, if an individual display the purchase of that collection, it will also increase the desire of other individuals to purchase similar brand products in the market.
On the other hand, family is another major factor that can influence target customers of Rolex to purchase a particular product. As per the article by Hjort et al. (2013), family helps to develop perception and values of individuals that plays superior role in developing brand loyalty for an organization. For instance, if all the senior members of a particular family are loyal towards the Rolex brand then it is expected that the culture of the family will also induce junior members to remain loyal of similar brand. Thus, family plays critical role in developing brand loyalty for organizations, which eventually affects the buying behaviour of the customers.
Two psychological influences on buying behaviour:
As highlighted by Badgaiyan & Verma (2014) psychological behaviour can also have major impact on the overall buying behaviour of the customers. Understanding the psychology of the customers is significantly important for an organization for achieving sustainable growth in the market. Studies have highlighted four prime psychological factors including motivation, perception, learning and beliefs & attitudes that can have major impact on the buying behaviour of the potential customers. However, it has been assessed that motivation and beliefs & attitudes are the prime two factors that can influence people to purchase new edition of Rolex watches.
As mentioned earlier, Rolex target market is only high-income group people. Therefore, people with specific income level can actually afford the cost of Rolex watches. Thus, it is necessary to have high level of motivation for purchasing Rolex products. Maslow’s hierarchy needs theory has highlighted different types of need that an individual can have in order to lead their life properly (Westwood, 2013). Now, motivation for luxury products like Rolex watches can be categorised under esteem needs of individuals, as it provides a sense of satisfaction among the customers. On the other hand, beliefs and attitudes is another significant psychological factor that can also influence the buying behaviour of individuals. Aday & Yener (2014) have highlighted that beliefs requires strong brand positing for the organization. Now, Rolex is among the top luxury wristwatches manufacturers that have strong brand value in the market. Therefore, it is expected that the brand name of Rolex will help to create positive psychological impact on the potential customers mind that eventually help to create positive beliefs and attitudes towards each product of the organization. Thus, it is necessary for Rolex to focus on the effective development of beliefs and attitudes of the potential customers in order to influence them to purchase products of the organization.
Two personal influences on buying behaviour:
As highlighted by Hollensen (2015) analysis of customer buying behaviour is an extremely difficult process, as it requires analysis of many factors. Now, personal influences are also considered among the prime factors that can have major impact on the buying behaviour of the potential customers. Many studies have highlighted different personal attributes including occupation, economical condition, age, personality and lifestyle that can have impact on the purchasing decision of the customers. However, in case of purchasing luxury products like Oyster and Cellini collections 2016 of Rolex, economical condition and personality are the prime personal attributes that can have major impact on the behavioural pattern of the potential customers.
As the watch collections of Rolex are extremely expensive, it almost become unaffordable for an individual with limited income. Thus, economical condition or financial support needs to be strong for the people willing to buy Rolex products. Conversely, people with limited income source will not view Rolex products as alternative option. Therefore, it will also affect the buying behaviour of that particular individual (Terpstra, Foley & Sarathy, 2012). On the other hand, personality is another significantly important personal attribute that can have impact on the buying behavioural pattern of the customers. For instances, a music lover individual will always look for music related equipments. Therefore, an individual with addiction to luxury equipments is expected to look for different alternatives for purchase. Thus, it will create positive impact on influencing people to purchase Rolex products.
Four marketing strategy recommendation:
As per the article by Brooksbank (2013) proper utilization of marketing strategies are necessary for fulfilling all the marketing objectives in an appropriate manner. However, effectiveness of marketing strategies will have to be developed in such a way so that it can easily go with the image of the organization. For instance, marketing strategy for Rolex will have to focus towards maintaining the standard of the brand name in the market. With increasing competition, it has become necessary for Rolex to evaluate the marketing strategies continuously so that it can able to reach to all the potential customers. Four recommended marketing strategies for Rolex are as follows:
With increasing popularity of internet and social media, every organization has tried to utilize the platform for fulfilling all the marketing objectives (Pike & Page, 2014). Therefore, Rolex also need to utilize the online platform to reach to the global potential customers in an effective way. Furthermore, Rolex needs to utilize social media platform as a tool for communicating with the potential customers. It not only will help the organization to identify the needs of the customers but also will create positive impact on solving any query in an appropriate way. Therefore, it will eventually help to create strong brand name in the market, which will create positive impact on businesses of Rolex.
Rolex also needs to utilize business magazines for reaching to the potential customers in an appropriate way. It is expected that all the people with high-income read prime business magazines on daily basis. Therefore, placing advertisements on magazines like GQ and Maxim will allow the company to create positive impact on the mind of potential customers. Furthermore, Rolex needs to utilize magazines to educate people about the quality of the provided wristwatches so that it can add value to the organization.
Advertisements at major sport events:
Rolex also needs to strategically place advertisement on all the major sporting events, as it will help to create desired impact on the market. The advertisements for the sporting events also need to be eye-catching and gripping so that it can able to grab the attention of the potential customers in an appropriate way.
Sponsorship is another prime marketing tool that Rolex needs to consider for fulfilling all the marketing objectives in appropriate manner. For instance, sponsorship in one of the most popular sporting events namely Wimbledon has helped the organization to increase popularity in the market. Therefore, it is necessary for the organization to identify many other events for effective utilization of sponsorship strategy for fulfilling the marketing objectives in an appropriate manner.
From the above analysis it can be assessed that the implemented marketing strategies play extremely important role in fulfilling all the objectives of the organization in an appropriate manner. However, it is necessary for the organization to evaluate the effectiveness of the implemented marketing strategy so that it can able to make desired changes at the optimum time. Thus, Rolex also needs to focus on different factors to maintain itself as the top luxury wristwatch provider in the global market.
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