The business strategies of Rolex

Question 2
The business strategies of Rolex may be understood through the different aspects of segmentation, target and positioning, distribution strategy, brand equity, customer and market analysis.
Segmentation, target, and positioning:- Rolex follows psychographic segmentation with a view to understand the different changing needs of the customers in order to gain a competitive advantage (Marketing91, H., 2022). Since the watches manufactured by Rolex are for the higher class of people with high earning individuals it greatly uses the undifferentiated strategy of targeting. Since the watches manufactured are classy in design, statement of richness, and a symbol of prestige and honor, and for this reason, it is positioned based on the value-based positioning strategy. 
Distribution strategy:- Around the world, it has a very limited number of stores and the distribution strategy followed is the distribution of its watches through stores owned by them or different multi-brand stores and through different e-commerce sites. 
Brand equity:- It has greatly established brand equity through its nearly hundred years of experience in manufacturing watches and is also regarded as one of the most powerful global brands. 
Customer analysis:- Customers of Rolex include mainly individuals with a high-income group and they have a tendency of purchasing luxurious products and live a very luxurious life. They may be from high-income groups or from different business houses. 
Market analysis:- The market of luxury goods items is increasing mainly in developing nations as certain aspects may be taken into consideration like the purchasing power, change in lifestyle, and the movements towards different urban areas have given a certain rise to the luxury products manufacturing industry. 

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