Research paper on the company Rolex, its channel market, competition,

On the company Rolex, its channel market, competition, distributions patterns. and channels - Research Paper Example Since the company has been successfully meeting demands of its consumer and consistently introducing creative and innovative designs in the market, the management and distribution strategies followed by the wrist watch manufacturer is of great interest. One of the critical aspects in quality management is logistics and supply chain as well as channel management. In the present research, various channel management strategies of Rolex will be evaluated. The research will throw light on the distribution patterns and various marketing strategies. Competitor analysis and business drivers will also be discussed. Company Description Rolex is a private watch manufacturing conglomerate involved in production, distribution and service of wristwatches under Tudor and Rolex brands. It was founded in the year 1905 in London, England by Alfred Davis and Hans Wilsdorf. The current headquarters is situated in Geneva and it has its distribution arms worldwide. Gian Riccardo Marini is the current CEO and by 2010, the total revenue earned by the watch manufacturer was 5.1 billion dollars. The company has over 2000 employees and produces more than 2000 watches every day (Yahoo, 2013) A Rolex watch on the wrist of a customer is expected to enhance the personality and style of that person. It has become a symbol of great taste and fashion. Since these watches are exclusively designed for upper class segments, not many of the people get the opportunity of owning this prestigious brand. In the year 2007, Rolex was announced as 71 on a list of 100 most valuable brands of the globe by Bloomberg Businessweek (Businessweek, 2007). During its tenure the company has achieved many milestones in terms of innovation and creativity. In the year 1926, Rolex introduced waterproof watch and became the first brand to do so. All Rolex watched are designed and manufactured with materials of dine quality and with much detail so that chances of error and mistakes are minimized. Focusing on developing w ell-designed and realistic marketing and channel distribution strategy is crucial in order to build a successful brand. Products The major brands produced under Rolex SA are Tudor and Rolex. There are three watch lines for Rolex; Professional, Oyster Perpetual and Cellini. Some of the famous modern and well-known models of the Rolex brand includes submariner, Yacht- Master, Day-date, Daytona, Day-just etc. Few of the famous Cellini models include Quartz Mens, Cellinium, Cestello Ladies etc. Retail pricing varies according to quality, materials used and models. Accordingly, Rolex watches can range from 650 dollars to 80000 dollars. Product Distribution System A distribution strategy is used in order to make products available to the target customers. Rolex has a worldwide presence. Naturally, the company has been using a comprehensive distribution strategy in order to reach its customers residing in various ends of the globe (Kerin, Hartley & Rudelius, 2011).The overall product distr ibution system includes geographic coverage, distribution channel market and distribution patterns. Geographic coverage Rolex is an international brand. The brand name Rolex was developed so that it can be easily pronounced in various languages. Having a famous Swiss background has made the brand easily recognizable in North America and Europe. The brand covers 28 worldwide affiliates and has around 4000 watchmakers working in more than 100 countries round the globe. The brand has established retail distribution in almost every