This essay provides a comprehensive strategy that will help Rolex to effectively compete with top rival brands such as Louis Vuitton and eventually improve their sales. The focus is to explore the best product, price, place, and promotion measures to illustrate why this pop-up will be suitable for the brand. This strategy includes a step-by-step road map that begins with a detailed recommendation, implementation, and finally a contingency plan if the desired strategy fails to meet the company’s expectations.
Rolex is a Swiss-based company that manufactures watches and has been in operation since the beginning of the 19th century. Over the years, several rival companies joined the watch manufacturing industry and competition became high. Brands such as Louis Vuitton also started to produce high-end luxury watches. Recently, Louis Vuitton established a watch museum at Beverly Hills to showcase their products. Rolex decided to develop a similar strategy to challenge its rivals to keep their business relevant in the market and increase their profit margins. In a period where consumers constantly crave fresh experiences, businesses are moving their spending plans from the brick and mortar retail to more brand activation efforts. Pop up shops are becoming more popular as they increase brand visibility.
It has been established that refining a business is a relentless duty that is necessary for the success of the company. A high profitability sector for any business lies in the improvement of the sales function and one way of doing that is through initiating new ideas that might increase them. The complete estimation of Swiss watch trades rose by 2.4% a year ago, as indicated by the Federation of Swiss Watch Industry, despite a critical drop of 11% to Hong Kong, the world’s biggest market (FH – Swiss Watch Exports in 2019). Rolex performed generally following the more extensive Swiss market which deals up 3% to CHF 5.2 billion out of 2019 (Corder). In the dynamic business environment that is constantly competitive, Rolex decided to open up an exhibition that would be located in the famous Times Square situated in the heart of New York City.
A spring up store is an incredible way to explore additional revenue streams for a business. They offer a unique opportunity to experiment with a company’s products in a diverse demographic environment. The setup cost is significantly lower than setting up a traditional storefront since no leases are required. This exhibition will showcase Rolex’s most iconic watch models such as the Submariner, GMT Master II, and Daytona that is a 1963 classic among others. Due to their temporary nature, pop-up exhibitions create a sense of scarcity in the human mind hence prompt purchases. They give the idea that products are running out making buyers ready to buy something on the spot. The retailer should also take advantage of this mass exclusivity mindset and slightly lower the prices which will create urgency to the buyers. Therefore, they will be less likely to delay purchases.
Picking Times Square as the desired location for their exhibition will be favorable for the company because it is a prime business intersection, with a plethora of tourists and affluent individuals. The growing need for picture-perfect experiences has seen people constantly traveling to big cities like New York. This area has thousands of passerby guests and is believed to be one of the most visited places in the world. Besides, the growing appetite for social media experiences and association with big brands will have more people visiting the pop-up exhibit. However, as much as this location attracts many people, the retailer needs to ensure it is more than an Instagram trap and actual sales will be made. They could introduce coupons at the entrance that can be redeemed for special discounts inside the exhibition and this way they will be able to keep track of the actual buyers.
The show is intended to commence in November and is expected to run all through the holiday season. It is required to have a significant closing date just before the New Year which is assessed to have the most elevated number of imminent purchasers. The launch date for the exhibition is scheduled for the 20th of November where celebrities will be in attendance to help push the brand and provide publicity for the exhibition. It will be a great opportunity to introduce new products to the market. A company needs to have the ability to explain its products, both new and old, to its potential buyers as it will create brand loyalty and strengthen the customer relationship.
Setting up the exhibition during the festive season is perfect since studies have shown that holiday shoppers make more in-store purchases as compared to any other time of the year. The most popular items purchased are usually gifts and apparel. However, most consumers start their shopping online before visiting the stores to make the actual purchase. Therefore to increase traffic to the exhibition, Rolex needs to advertise on social media and make it known that they will be having a pop-up store at Times Square. This will also make the customers optimistic and they will be looking forward to it. Additionally, the retailer needs to make the shopping experience interesting and seamless to maintain its brand exclusiveness. They could give the potential clients a virtual demo on what makes their products edgy or stroll them through the production process and the incredible features.
A big challenge to the expo will be the Covid 19 pandemic. The retailer should have safety measures put in place to avoid infections. The coupons they introduce for special discounts should also be day and time-sensitive. As a result, shoppers will only be able to visit at the specified period to avoid overcrowding. They should also ensure all shoppers and staff are in masks and have sanitizing stations spread out.
This proposition is designed to support the strategic plan of the organization and bring clarity of thought. In ensuring the accomplishment of this recommendation, a vital location is highly beneficial. This is because it will not only affect the profits projected but also increase the popularity of the Rolex brand. A location that best showcases these attributes is Times Square in New York City. It is a significant business crossing point, vacationer location, and neighborhood in the Midtown Manhattan part of New York. It is commonly known as the center of the universe due to the vast number of people it accommodates every day from residents to tourists and business individuals. The location also features massive displays and billboards which are great for advertising and Rolex should take advantage of this. They could project the activities happening inside the exhibit to reach customers who will not get an opportunity to visit it.
Since Rolex is an expensive luxury brand, it is important to attract the attention of the affluent in New York City. The wealthiest neighborhood is known to be the Upper East Side which is conveniently located in Manhattan just close to Times Square. This proximity is beneficial in gaining their attraction, and since they spend large amounts of money on luxury brands, it is an added advantage to the success of the exhibition in terms of profitable sales. Cooperating with clients up close and personal permits the retailer to address their interests on the spot and affect their purchasing choice.
As much as this location is well calculated for this project, it should be noted that it has its limitations. First and foremost, since it is a very busy area, attaining a permit and location for the pop-up is not easy. Earlier communication of up to months prior may be required or large sums of money might be used to attain the best location in Times Square. Secondly, insecurity poses a big challenge due to the large number of crowds experienced daily in the area. However, these limitations can be overcome by proper planning hence at least one month is required to have everything in place. An effective team is essential to the success of the implementation plan. A project manager is in charge of the overall venture and assigning the roles and responsibilities to other team members. Other staff includes those in sales and marketing, advertisements, finances, and human resource.
However, the pop-up shop might fail to meet the set expectations therefore it is important to have a contingency plan. This is a proposition that is formulated for a result other than the desired projected consequences. Various strategies are listed to mitigate common scenarios that could hamper the success of the exhibit and will be effectively implemented. On the off chance that the budget exceeds the projected expenditure, the company will have to let go of non-essential employees and adjust to a schedule that would comfortably work for the exhibition. If there is a sudden incident and there has to be a change of scene, the company shall have a backup location in the same city to ensure the exhibition runs as smoothly as planned. In case of last-minute changes such as unforeseen natural hazards, the company would reschedule the exhibition to a later date that could be convenient for the affected parties.
It should be noted that even if the project implementation phase runs smoothly, there is a probability that the exhibition might not bring expected results, meaning it shall not drive sales as projected. For this reason, the company shall appoint a committee that will carefully analyze the process to identify areas of weaknesses and propose a new recommendation that will be effective in place of the exhibition plan. To tackle the problem of losses the company shall start an auction event that will sample all their iconic watches and let potential buyers bid for the highest price.
In conclusion, pop up stores are an incredible method to shed old stock. They are a high impact and cost-effective brand activation tool. They give a prime occasion to brands to sell their remaining items and get some motivation for new ones from the clients they meet during the exhibition. This is a viable approach to introducing new merchandise, exploring a developing market, selling surplus stock, and promoting brand mindfulness. The best pop-ups regularly have an ideal item to market, or they might be coordinated to an occasional need or crowd. It is important to think past the limits of customary retail and use space, innovation, and substance to plan a store that supplements the brand.
Works Cited
Corder, Rob. “Rolex Records Best-Ever Sales in 2019 to Reach Turnover of CHF 5.2 Billion.”WatchPro, 2020.