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     Digital
    Marketing
     Report




+    Social Media Branding
     in the Luxury Watch Industry
                                 Professor Andreina Mandelli
                  Digital Marketing – Fall Semester 2011/2012
                                    Social Media Watchdogs:
                                             Lara Besseghini
                                             Anna Giovanetti
                                             Serena Grassini
                                            Francesca Maino
                                              Armanda Nessi
                                             Juliane Poschke
                                       Marco Vendraminetto
Table of Contents



     I.     Introduction

     II.    Methodology

     III.   Rolex
            Analysis

     IV.    Omega
            Analysis

     V.     Patek Phillipe
            Analysis

     VI.    Conclusion

     VII.   Appendix




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        I. Introduction

The boost of social media and the            The final goal is the analysis of three Swiss
changes in post-modern markets have          premium brands belonging to the watch
affected the way brands were used to be      industry - Rolex, Omega and Patek
conceived and understood.                    Philippe - in order to understand their
                                             social media strategy and to foster a
A brand is no longer only a source of        discussion based on the questions
differentiation and competitive advantage    presented below.
but something that goes far beyond that:
relationship, experience and co-creation            Can brands with more than a
of value have become the main source of              hundred years of tradition cope
brand identity. Nowadays the brand has a             with new generation platforms,
role of social connector since it is
                                                     without harming their reputation
expected to create a linking value among
different media platforms in order to                of Swiss luxury icons and being
build online communities and be an                   perceived as mass product?
active part of them.
                                                    Will they succeed in this
That is why a crucial aspect for a brand’s           challenge?
success is to be present in social media
platforms and have people talking and        First, a brief insight about the
discussing on it. It is important to         methodology used to address the work is
highlight that both positive and negative    introduced to the Reader. As a second
discussions are welcome: why? Because        point comes the social media analysis
in these way companies can recognize         with the top ranked brand in the
their strengths and manage negative          Interbrand web chart: Rolex. The other
comments in order to direct the followers    two brands, Omega and Patek Philippe,
on the right track.                          are straight after the previous brand.
                                             Finally, a rep up section is presented with
The current report is the output produced    the main aim of creating a discussion
by a group of seven students from Master     together with the Reader on the possible
in   Marketing       and   in   Corporate    future scenarios that the brands may face.
Communication of Università della
Svizzera italiana – USI.




                                                                                             3
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        II.          Methodology


    The report is organized along seven different variables, in order to monitor and understand social
    media coverage by the three brands:
        1. Social presence
        2. Customer engagement management
        3. Sentiment/advocacy management
        4. Support
        5. Innovation
        6. Communication leadership
        7. Linked Value
    In order to obtain a clear and detailed insight for each of the above variables, four main social
    media typologies have been used: social networks (Facebook, Linkedin, Google+, Digg),
    microblog (Twitter), video and photo sharing (Youtube and Photobucket), forum and blogs. Also,
    other tools used within the analysis are Stumbleupon (search engine) and unofficial pages,
    depending on their relevance for some variables. The application of two main social media tools,
    SocialMention and Alexa, has served as a way to give practical evidence to the final work.
    The ultimate section of the analysis for each brand has been dedicated to evaluation on a scale from
    1 to 10 of each brand on the seven variables taken into consideration. This has been done in order
    to allow a comparison among the three brands in terms of social media strategy.




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          III.        Introduction to the Brand Rolex
      Rolex SA is a Swiss manufacturer of watches known for its luxury and high quality. These watches are
      popularly regarded as status symbols. Rolex was at the 71st place on 2007 annual list of the 100 most
      valuable global brands. It produces about 2’000 watches per day, with revenues of around US$ 3 billion.

      The brand has participated in the quartz watches development and it was one of the first brands to create
      waterproof watches. It was not just a luxury watch but also an item for active people with high tech
      certified chronometers.

      The company is now starting to introduce ceramic bezels across the range of professional sports
      watches.

      This wonderful luxury brand boasts famous owners like Roger Federer, Steve McQueen and Che
      Guevara and it had in its history notable endorsement for their advertising.



                                       Social Presence
                                       Is the brand present in all platforms that are relevant for their business and
                                       relationship strategy?
                                       Being a brand, which includes different areas/sectors such as watches,
                                       sport, culture and philanthropy, Rolex is present in most relevant
                                       platforms and channels on the web.
                                       Officially Rolex has one Forum (but not affiliated to Rolex.USA) and one
                                       Blog (Rolex Awards Blog), but it is also to be considered that the web is
                                       full of unofficial pages where the brand is present and discussed.
                                       According to the Facebook search page, there exist about 10 unofficial
                                       pages that grant the increase in brand awareness through the spread of
                                       information. Further, Rolex is also highly present on Twitter but mainly
                                       with commercial tweets.
                                       And as far as Linkedin is concerned, the brand is mentioned, particularly
                                       referring to the events and the design strategy, but just few posts are
                                       present and there are nearly zero comments. Digg is also mentioning the
                                       brand, but comments are related to offers of fakes and copies of Rolex
                                       watches.
                                       In Youtube.com the videos obtained by typing “Rolex” are more than
                                       60’000, while the search for “Rolex watches” gives a result of 7’000
                                       videos with quite a lot of visualizations and comments.


Customer Engagement Management
How many users the brand is able to contact through social media? Does the brand have a visible strategy for
stimulating participation and customer engagement?
In the Rolexforums.com posts are more than 2’300’000 with about 900 members creating discussions,
relationships and sharing friendship. The posts are mostly discussions around the advertisement of new models,
the share of products’ pictures, discussions about the different models of watches, questions about Rolex watches
and so on.
The Rolex awards initiative with its related blog is dedicated to support laureates whose innovative work
contributes to the betterment of mankind. The comments on the relative blogs are usually very few and mainly
associated to the project itself rather to the brand.
Most of the unofficial Facebook pages are promoting new models of watches, events created by the Company or
promoted by it, picture of users with their Rolex and advertising offers. Likes and members are about 300’000 and
discussions are less than 2% of the members (Like 274’673 / talk 2’819). The users are quite active in posting
pictures and comment them, but less active in commenting advertising offers.



                                                                                                                        5
Concerning Twitter, as said before it has mainly commercial tweet with offers, discounts and advertising posts. It
    is also possible to find some discussions about current events like rubbery of Rolex, rich people victim of theft
    and discussion about the right to “wear” such a huge amount of money.
    In YouTube, the majority of videos are previewing the new models, showing the characteristics of the products,
    explaining how they are assembled and how it is possible to recognize a fake from an original item.

    Sentiment/Advocacy Management
    What percentage of users is positive or enthusiastic about the brand compared to the percentage of users who are
    negative about the brand?
    Does the brand have a visible strategy stimulating participation and customer engagement? Do they manage
    negative conversations?
    Most of the people who are posting or commenting in forums, blogs and platforms, express positive perceptions
    about the brand. There are consumers posting comments or likes on Rolex’ pages which are neutral, but also
    other people, who stand for the majority, that are expressing personal feelings associated to the brand.
    Very positive feelings such as excitement and enthusiasm come out in those posts and pictures regarding the
    purchase of a Rolex. This might be translated by saying that people are passionate and experience the brand as
    part of their life: to them such a luxury object can heighten their status. In this way, they are sharing positivity
    about the brand and, as a consequence, they promote positive word of mouth and brand awareness.
    Usually people interested in following the brand are going on the web voluntarily and are participating in a
    constructive way giving their advice and trying to struggle with negative comments to defend their brand. Some
    negative comments have also been found; in those cases people express negative opinions about the watches or
    even the brand itself. As an example, in YouTube negative comments associated to the video were almost the
    same: “I’ll never wear a watch like that, too many diamonds, too tacky, too expensive”. Anyway it emerges that in
    general people like the brand and some are very proud of it.
    Said all above, it is still not possible to distinguish a clear strategy pursued by the brand itself, which would leave
    Rolex to exploit these encouraging outcomes in the web.

    Support
    Does the company offers help through social media? Is there customer care through answers, comments or posts
    from the company?
    No direct response is given by Rolex. The reason that may explain this is that the analyzed platforms (forums,
    blogs, Facebook pages) are not official and not directly created by Rolex. Therefore, the brand is not
    straightforwardly involved in the discussions and is not answering or offering any kind of help. Besides, on
    Youtube.com it does not possess an account, meaning that it does not have any chance to post videos or
    comments.
    It is correct to say that Rolex does not provide any kind of customer service through the use of social media in
    general.

    Innovation
    Does the company ask for collaboration? Are users proposing solutions or service/product improvements within a co-
    creation perspective?
    In general, comparing all the platforms analyzed, the innovation is absent. This can be explained by the fact that,
    as already mentioned, the company is not directly present in the channels and is not dynamically interacting.
    Sometimes, when posting, people propose some kind of solutions or enhancements, but still they are quite few
    and not relevant enough to improve upon the product.
    A further reason which clarifies what has been already said, is the fact that the long and well established Rolex
    tradition has contributed to convince the lovers of the brand to not desire changes in the watch itself. Users of the
    platforms are just expressing their ideas, feelings and opinions commenting and posting about what they already
    love and appreciate.




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Communication Leadership
Does the company directly manage proprietary brand communities? Does it actively support independent brand
communities? Howa would you evaluate the credibility and authority of brand communication/participation.
The company is not directly managing proprietary brand communities nor in social media such as Facebook,
Twitter, YouTube neither on forums and blogs. Although the Rolex Awards Blog is a proprietary brand
community, Rolex does not take care of the content and comments that are published and discussed on it, since it
is stated that it declares they are sourced from bloggers and not from the company itself. It could only been found
a link which from the main Rolex website leads to the blog, but anything else.

Linked Value
Has the brand become a social connector? What is the percentage of users who connect/discuss with their peers
using brand-related social media spaces?
In the majority of posts on Facebook and on Twitter, there is not a real conversation, rather only quick sentences
or opinions about the product and the brand or links to commercial offers. Single conversations can also be
found.
In terms of forums, there is a quite high level of interaction between the users/members: by registering, posting
and commenting in a forum dedicated to the brand, they show their likelihood to take part into a discussion about
the brand and the product.
Speaking about the Rolex Award blog, it is not a real communicating platform because there are not big
conversations. Projects are posted on the blog, but as said before there is not a real discussion.
Of course, the fact that Rolex is considered as a long-tradition brand facilitates the creation of a passionate
community and with the digital era, a social connector. The aspect to be highlighted though and which Rolex
should consider as a potential suggestion, should be that of the scarce presence of the Rolex company itself in
feeding these conversations or replying and taking care of what is going on in the social media about its brand. It
could definitively be a new way to stay closer to its customers, exploiting their already active presence on the
web and their potential to boost Rolex brand awareness and trust.




Overall Evaluation for the Brand Rolex with Respect to the 7 Variables
                                                                                                     Communication
                      Social Presence




                                                                                                                     Linking Value
                                                         Management
                                            Engagement




  ROLEX
                                                                                                     Leadership
                                                                                    Innovation
                                                         Sentiment
                                            Customer




                                                                      Support




  Social                                8        8            2                 2                2          3                        5
  Networks
  Microblog                             8        6            2                 2                2          2                        4
  Video & Photo                         7        6            2                 2                2          2                        4
  sharing
  Forum & Blogs                         8        7            5                 2                2          4                        6
  Total average                7.75           6.75         2.75                 2                2      2.75                4.75


                                                                                                                                         7
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                  IV. Introduction to the Brand Omega
            As stated in the official website, Omega is defined by its pioneering spirit. The brand has participated
            actively in some of the most challenging, fascinating adventures in human history: the conquest of space,
            world-class sports timekeeping, including 24 Olympic Games; an airplane designed to fly around the
            Earth powered only by the sun.

            Pioneering and sporting spirit, innovativeness and high precision are the capstone of this brand since
            1848. Ambassadors and endorsers such as Nicole Kidman, George Clooney and James Bond/Daniel
            Craig contributed to the enormous success of this Swiss brand.



    Social Presence
    Is the brand present in all platforms that are relevant for their business and relationship strategy?
    According to HowSociable, the brand is present in the main current digital platforms: it has been noticed that
    Omega recently entered also Linkedin and Google+, with a limited percentage of followers still. Digg (explain
    what it is) appears to be as the most widely used in terms of comments and discussions, but this can be explained
    through the fact that it is connected to forums and blogs. Photobucket, not shown in this table, is also used
    especially for advertising purposes.
    In terms of forum and blogs, there are three main platforms of discussion:
                omegaforums.net
                omegablogger.com
                thewatchforum.co.uk
    There are also many unofficial pages, both for forums and for social networking and video/photo sharing.
    Probably the aim of being present on the web for Omega is related mainly to commercial and advertising
    purposes: from this point of view, it is present in relevant platforms such as Facebook and YouTube. On the other
    hand, it really depends on the target: knowing that this brand is more related to a business and mature target,
    increasing its presence on Linkedin should be a priority at this stage.

    Customer Engagement Management
    How many users the brand is able to contact through social media? Does the brand has a visible strategy for
    stimulating participation and customer engagement?
    The Facebook page enlists 112’866 likes and among these the number of users that participate in the discussion
    and talk about the brand are 2’265. The strategy pursued by Omega in the platform is pretty visible: the company
    aims to engage customers by mainly advertising products and providing information about new boutiques and
    endorsers. Linkedin shows a number of 644 members, mainly belonging to the target of medium-high income
    class. Digg, a search engine, produces an output of 22’171 discussions and a profile with 11 members only,
    suggesting that it may be a fake one. These two last social networks do not present any kind of visible strategy,
    since discussions are created and managed by the users. No Google+ resources can be enlisted in the analysis.
    As far as Twitter is concerned, discussions are mainly fostered by followers – 2’374 – while the average number if
    Tweets is 137.
    In the video sharing platform, the final results for the search “Omega Watches” are 5’780 and two official pages –
    Omega Channel and Omega Official Timekeeper Channel – are founded. In terms of numbers, the first channel
    has been accessed by 18’160 viewers and 21 videos have been uploaded, but only 344 users actually subscribed.
    This page is about the history of the brand, updates of activities (endorsement, events) and commercial shoots.
    The other channel, Omega Official Timekeeper, counts 55’050 visualizations and 425’946 uploads; Timekeeper
    channel has 52 video and 431 subscribers. This channel is more broad since is not only about Omega, but it
    includes evaluations on several brands belonging to the industry.
    Photobucket mainly presents unofficial commercial contents through the sharing of 2’157 photos and 30 videos.
    In the Omega Forum Statistics’ there are 250 Discussions, 2’348 Messages and 251 members. This is the first
    forum for the Omega community, thus it is quite easy to find a low level of customer engagement and an intense
    activity. Every day about 40 members are online during the day and on average 5 discussion are followed per
    day.


8
The Omega Blogger is a web site analyzed in one of the most important tools of web information, that is Alexa.
Traffic rank for this blog is 1’505’007 clicks, users spend about 55 seconds per visit to the site and 25 seconds per
page view. Visitors surf on average 2.2 pages each day and the fraction of visits referred by search engines is
roughly 8%.
The Watch Forum has a very large number of users and a good percentage of them discusses about Omega
watches. In the forum statistics' it can be seen that there are 696’103 total posts and 21’837 total members. Every
day there are 170 active users/hour, among which the majority are guests and not registered members, meaning
that anyone who is interested in the luxury segment of watches can undertake a discussion and share opinions
and thoughts with other Omega lovers

Sentiment/Advocacy management
What percentage of users is positive or enthusiastic about the brand compared to the percentage of users who are
negative about the brand?
Does the brand have a visible strategy stimulating participation and customer engagement? Do they manage
negative conversations?
Generally speaking it can be said that Facebook shows many positive comments since many users are advocates
of the brand. There is a lot of enthusiasm especially about endorsers and advertising campaigns that are focused
on emotional issues (e.g. Nicole Kidman & Brad Pitt commercials, see link on the Appendix). In Linkedin and
Digg, comments and discussions are more neutral, since it is more a matter of selling and advertising. There are
some negative comments, the majority of which are about replica and fake. In Twitter comments are mainly
neutral and related to commercial purposes, too. In YouTube, videos in both unofficial and official pages show
many enthusiastic comments (more in unofficial pages), especially thanks to endorsers' videos. In official pages
there are less comments but all positive. It has not been possible to check whether administrators have deleted
negative comments or not.
The official Omega forum has the possibility to be shared on the most famous social networks like Facebook,
Twitter and Google+, so it's a good start to improve the W.O.M. and support the brand community activity. Here it
is better to notice the influence of the brand to spread news and try to enlarge the discussions and comments of
its community.
The Omega Blogger is an unofficial blog and there is no possibility to share it on Facebook or Twitter, meaning
that it is usable only by the users: there is not a good W.O.M. outside it, but inside it is possible to find a lot of
links connecting the blog with other sites like it. In here, the Omega community can take part into discussions
belonging to different categories, but it has been noticed that there is a narrow interesting W.O.M. The discussion
about the brand show negative comments defended by other users, and the majority of the discussions contains
likes and desires of the members. The brand show here a lack in the activity of support and strategy to manage
the negative W.O.M., but in the same time, Omega community is able to defend the brand and share positive
thinking about the new model of Omega watches.
There is not the possibility to share the Watch Forum on Facebook or Twitter, the best common social network, so
its W.O.M. isn't very active; but inside it the brand has a quite good visibility, a positive activity of the Omega
community that here opened discussion and spread news about Omega watches that positively affect comments
by all users of the watch forum. So the strength of this brand, here, is its community, no relevant strategy and
support.

Support
Does the company offer help through social media? Is there customer care through answers, comments or posts from
the company?
Regarding this point, it can be argued about social media in general without differentiating between social
networking, microblogs and so on. As noticed, there is not really an interaction with users and followers: Omega
posts video and news about boutiques, endorsers (the brand new South African swimmer Chad Le Clos) and
events (Omega Mission Hills World Cup of Golf) but rarely participates in discussions or replies to comments.
There is not a real customer care; it is more an interaction among followers rather than between brand and users.
Customers are bombarded with information but comments about it do not seem to be considered by the
company. For YouTube as well there is no interaction with users: the brand simply provides them with a short
comment below the video.
As just said, brand support is present better in the Omega's official forum, where the Brand "Omega" is shared on
social networks, offered the possibility to know more information and news about Omega things by linking a lot of
web sites about this brand. Through the discussion, we find also a category of discussion named "Forum
suggestions and support" where users can ask changement of the forum and add value to it. In the other two
forums, the brand is not relevant, so its activity and service can't be notice.



                                                                                                                         9
Innovation
                                                Does the company ask for collaboration? Are users proposing solutions
                                                or service/product improvements within a co-creation perspective?
                                                Does the company ask for collaboration? What percentage of users
                                                proposed solutions or service/product improvements within a co-
                                                creation perspective?
                                                Again arguing for all the platforms considered: it does not seem to be
                                                co-creation and collaboration between the brand and its followers.
                                                Linked to the variable just discussed above it can be said that since
                                                there is no support and interaction, also innovation is lacking. Of
                                                course there are many unofficial pages, especially in platforms such
                                                as Digg and PhotoBucket, where the brand is under no obligation to
                                                respond or to interact with users, since it does not have an official
                                                profile. If we consider innovation in terms of keeping customers
                                                aware and updated of brand new initiatives and products, there is a
                                                lot going on this side. The problem is that it seems to be no
                                                willingness to interact with the customer and create and become a
                                                real presence in the community.
                                                In the discussion category of the official forum said above, there is the
                                                real collaboration between the Company and its community
                                                members.
                                                One may read about the Company asking useful advice to improve
                                                the blog and also the watches, trying to find co-producers consumers
                                                that are able to find new solutions and other innovation things for the
                                                official blog and the watch models.

                                                Communication Leadership
                                                Does the company directly manage proprietary brand communities?
                                                Does it actively support independent brand communities? How would
                                                you evaluate the credibility and authority of brand communication/
                                                participation.
                                                The brand directly supports brand communities in Facebook and
                                                YouTube: it manages the official pages by regularly posting images,
                                                videos and news.
                                                It has recently created an official Twitter and Linkedin page: on
                                                Twitter it daily updates its status, while on Linkedin the page is more
                                                supported by users rather than managed by the brand itself. The
                                                content of the pages can be considered as valuable and entertaining
                                                since it deals with many different issues such as iPhone application,
                                                virtual boutiques, events (e.g. Golf World Cup) and so on; on the
                                                other hand there is not an active participation to discussion.
     The Brand can manage its community in its official forum by offering arguments to comment, photo gallery,
     information and news, but also material about where it's possible to find Omega watches, generating like an "e-
     bay site" inside of one discussion's category called "Watch market place". The brand creates also discussions
     about other watches (like Rolex) to stimulate the comparison and let also spaces to open discussions from the
     users.
     It seems that with this strong activity and presence in the community, Omega has earn its trust and loyalty: this
     can be confirmed by monitoring the others unofficial forums where the real brand community support the brand
     and defend it as if they were Rolex themselves.

     Linked Value
     Has the brand become a social connector? What is the percentage of users who connect/discuss with their peers
     using brand-related social media spaces?
     The brand has become a social connector mainly on Facebook since it uses this platform to link videos on
     YouTube and to promote its new “Lifetime iPad application”. However, the connection is more among users
     rather than between the brand and its customers. There are potential communities under the surface because
     there is a lot of interaction especially in platforms like Facebook and YouTube.


10
The problem is that the brand is not exploiting the potential of its enthusiastic followers; rather it
focuses mainly on the commercial and advertising issues. The same problem can be noticed on forums
and blogs; it has been noticed that people discuss among each other and show enthusiasm and passion
towards the company, but discussions remain at this level, there is no connection with the brand itself.



Overall Evaluation for the Brand Omega with Respect to the 7 Variables




                                                                                            Communication
                         Social Presence




                                                                                                            Linking Value
                                                        Management
                                           Engagement
 OMEGA




                                                                                            Leadership
                                                                               Innovation
                                                        Sentiment
                                           Customer




                                                                     Support
 Social Networks                  9             8            4         3             6            7                 7
 Microblog                        8             7            4         3             4            4                 4
 Video & Photo                    9             8            4         3             5            6                 6
 sharing
 Forum & Blogs                    9             7            4         3             6            6                 7
 Total average           8.75                 7.5            4         3       5.25            5.75                 6




                                                                                                                            11
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         V.          Introduction to the Brand Patek
                     Phillipe
     Patek Philippe boasts a long tradition of over 150 years and has always based its business on values like
     innovation, tradition, heritage and emotion. Although the first two might appear to be in contrast, they
     have contributed to establish the brand as the "finest producer of timepieces in the World", because of
     the right balance between the two of them.

     Patek Philippe has always aimed to sell its valuable productions as carriers of pleasure for sight and
     pride for wearing by pushing on the concept of heritage: the watches are destined to live forever
     together with the generations that will have the honor of owning the first ones. This concept was applied
     in the Generations Campaign, whose message was mainly that of possessing a watch that could live
     within the family and consequently be a signal of continuity through the years.



                                       Social Presence
                                       Is the brand present in all platforms that are relevant for their business and
                                       relationship strategy?
                                       According to SocialMention, the brand is present on Facebook and
                                       Twitter but not on Google+. In Facebook there are two main official
                                       pages (one related to the company and the other one to the community),
                                       one about the Smartphone application and numerous unofficial pages
                                       (small groups and communities). It has also a Linkedin account where the
                                       company itself is registered but not an official forum nor an official page
                                       on YouTube. Having said that, there are multiple unofficial pages in
                                       different platforms, maybe meaning that even if the brand does not own
                                       any community for example on YouTube there is an interesting buzz
                                       around it anyway.
                                       It     is     also     significant      that      the   unofficial    forum
                                       watchtalkforums.info/forums/patek-philippe-forum at the first sight looks
                                       like an official one since it is the first that comes up from Google when
                                       you digit “Patek Philippe forum”.

                                       Customer Engagement Management
                                       How many users the brand is able to contact through social media? Does
                                       the brand has a visible strategy for stimulating participation and customer
                                       engagement?
                                       In social network platforms it can be said that the brand is mainly present
                                       on Facebook where it counts 18.525 likes and 396 talking about it on its
                                       official page “Patek Philippe Company”; on the Community page there
                                       are 10,231 likes. Besides that there are many unofficial pages that
                                       together count about 2,000 likes. The brand is not present on Google+
                                       while on Linkedin it shows 859 followers and 139 employees actually
                                       registered on the account. There is no official page on Digg but when
                                       typing Patek Philippe it shows 1.011 results.
                                       Considering the microblog Twitter the brand has an official page with
                                       278 followers.
                                       In video and photo sharing platforms there are not official pages either
                                       but on YouTube the brand has 2,950 results overall when typing the
                                       brand name. The most seen video is “Patek Philippe-birth of a legend”
                                       with 326,187 visualizations. In Photobucket again there is no official page
                                       but 2,216 photos and 10 videos uploaded by different users and
                                       websites.
                                       As mentioned before, the most active forum is WatchTalkForum and it
                                       counts 608 threads.

12
Sentiment/Advocacy management
What percentage of users is positive or enthusiastic about the brand compared to the percentage of users who are
negative about the brand?
Does the brand have a visible strategy stimulating participation and customer engagement? Do they manage
negative conversations?
Generally speaking comments are mainly positive and neutral. According to SocialMention, there are more
neutral than positive comments but no negative ones, just few mentioning fake products and high prices.
In the WacthForum comments and posts are all positive and enthusiastic while on YouTube more people like the
video Birth of a Legend (871) compared to those that dislike it (15).

Support
Does the company offer help through social media? Is there customer care through answers, comments or posts from
the company?
There is not a real interaction with users since the brand just posts videos and news without involving them in the
discussion. It is more an interaction among followers rather than with the company itself. This is common for all
social media. In particular in Facebook, there are only informative messages posted by the brand and discussions
fostered by enthusiastic followers: the last post by the company was on June the 20th and it was just about
stopping pasting links on the page because the page was only for people who could really afford a Patek
Philippe.
On the YouTube platform, there is a discussion going on related to the video Birth Of A Legend: people discuss
about why they should buy these watches and so on. Many of them argue in favor of the brand, saying that they
would be willing to pay more than 40’000 dollars in cash. They also say that their product is a matter of emotion,
quality and vision.

Innovation
Does the company ask for collaboration? Are users proposing solutions or service/product improvements within a co-
creation perspective?
Does the company ask for collaboration? What percentage of users proposed solutions or service/product
improvements within a co-creation perspective?
Having mentioned the 20th-June-post it has to be said that there is no innovation if the brand kind of discriminated
among its followers. The main goal of the Facebook page is just to inform, not to interact. Same thing for the other
platforms: in Twitter there is nothing posted by the company and on Linkedin there are only few information
about the company itself but nothing about the brand. In the forum, users do not seem to look for innovation, since
comments are more related to their experiences with the product and no queries and problems are addressed to
the company.

Communication Leadership
Does the company directly manage proprietary brand communities? Does it actively support independent brand
communities? How would you evaluate the credibility and authority of brand communication/ participation.
On Facebook, the official page is managed by an administrator while the community page is not really
administered by anyone so people just post comments and share links. Since the company does not have any
official page on YouTube there is not a real brand community even if, reading the comments of the video, there is
a perception that a potential community is actually present and should be exploited. There are two official
profiles on Linkedin and Twitter but there is not a real discussion on those pages.

Linked value
Has the brand become a social connector? What is the percentage of users who connect/discuss with their peers
using brand-related social media spaces?
On Facebok, YouTube and the WacthForum there is a high level of interaction among users: they share
experiences, comments and news related to the product. There is no interaction with the brand itself. On these
pages there are no references to other social platforms, even if they are present on Twitter and Linkedin.




                                                                                                                       13
Overall Evaluation for the Brand Patek Phillipe with Respect to the 7 Variables




                                                                                          Communication
                       Social Presence




                                                                                                          Linking Value
                                                      Management
                                         Engagement
      PATEK




                                                                                          Leadership
                                                                             Innovation
                                                      Sentiment
                                         Customer




                                                                   Support
      Social                      8          8            2          2          2              3               3
      Networks
      Microblog                   6          5            -          -          -              -               -
      Video & Photo               6          6            5          4          4              4               4
      sharing
      Forum & Blogs               7          7            5          4          4              4               4
      Total average      6.75              6.5            4        3.2 3.2                   3.7          3.7




14
+
    VI. Conclusion
Considering the long history of tradition of these brands and their mature target, it is
clear that there was some reluctance at the beginning to enter social media platforms.
Rolex could be the most challenged one since it is considered as the most valuable and
prestigious among the three. There should be a trade off between keeping a link with
its roots and at the same time moving one step further towards these new modern
customers.
Omega is the most active in terms of official pages and interaction with users: the
answer could be find in its sporty and fashion target that identifies with celebrities like
George Clooney and Tiger Woods.
Rolex as well has many ambassadors from the sport industry but probably this is not its
main focus and target; Omega on the other hand has made sport and pioneering spirit
its main vision and mission.
Patek Philippe does not have a clear strategy in terms of digital marketing and it is
clear from the many unofficial pages that are present on the web. There was not so
much to analyze about this brand since the interaction with customers was almost
absent and even in the brand community there was no support at all from the company
side.
At first sight it seemed that the three Swiss brands tried to keep up with changes in the
market and in their customers but they left everything halfway. They entered the most
important and widely used social media platforms but then they did not exploit their
communities by interacting and co-creating with users. The danger could be being
perceived as arrogant and not willing to share mission and vision with their advocates.
The only one really present on its official pages its Omega: Facebook page is daily
updated with video and news and same for YouTube channels. On the other hand,
Rolex and Patek Philippe posted a comment respectively the 8th of May and the 20th of
June.
So the future of this brand really depends on how they will be able to manage their
customer relationships on social media platforms, also because Smartphone
applications are growing in importance and these brands, apart from Omega, are
missing the point.
The conclusion of this report would be more a question rather than a statement: are
these brands going to survive to this challenge without losing their secular tradition?
Who is going to be harmed the most and who the least? How could they build and
create value with brand communities without forgetting about more conservative and
traditional customers?

                                                                                              15
VII. Appendix




     Rolex, Omega and Patek Philippe perceptions on HowSociable? tool.




16
Rolex, Omega and Patek Philippe perceptions on Social Mention tool.




                                                                      17
+                       +




+
Università della Svizzera italiana
Via Giuseppe Buffi 13
CH – 6900 Lugano

www.usi.ch

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Social Media Strategies of Luxury Watch Brands

  • 1. + Digital Marketing Report + Social Media Branding in the Luxury Watch Industry Professor Andreina Mandelli Digital Marketing – Fall Semester 2011/2012 Social Media Watchdogs: Lara Besseghini Anna Giovanetti Serena Grassini Francesca Maino Armanda Nessi Juliane Poschke Marco Vendraminetto
  • 2. Table of Contents I. Introduction II. Methodology III. Rolex Analysis IV. Omega Analysis V. Patek Phillipe Analysis VI. Conclusion VII. Appendix 2
  • 3. + I. Introduction The boost of social media and the The final goal is the analysis of three Swiss changes in post-modern markets have premium brands belonging to the watch affected the way brands were used to be industry - Rolex, Omega and Patek conceived and understood. Philippe - in order to understand their social media strategy and to foster a A brand is no longer only a source of discussion based on the questions differentiation and competitive advantage presented below. but something that goes far beyond that: relationship, experience and co-creation  Can brands with more than a of value have become the main source of hundred years of tradition cope brand identity. Nowadays the brand has a with new generation platforms, role of social connector since it is without harming their reputation expected to create a linking value among different media platforms in order to of Swiss luxury icons and being build online communities and be an perceived as mass product? active part of them.  Will they succeed in this That is why a crucial aspect for a brand’s challenge? success is to be present in social media platforms and have people talking and First, a brief insight about the discussing on it. It is important to methodology used to address the work is highlight that both positive and negative introduced to the Reader. As a second discussions are welcome: why? Because point comes the social media analysis in these way companies can recognize with the top ranked brand in the their strengths and manage negative Interbrand web chart: Rolex. The other comments in order to direct the followers two brands, Omega and Patek Philippe, on the right track. are straight after the previous brand. Finally, a rep up section is presented with The current report is the output produced the main aim of creating a discussion by a group of seven students from Master together with the Reader on the possible in Marketing and in Corporate future scenarios that the brands may face. Communication of Università della Svizzera italiana – USI. 3
  • 4. + II. Methodology The report is organized along seven different variables, in order to monitor and understand social media coverage by the three brands: 1. Social presence 2. Customer engagement management 3. Sentiment/advocacy management 4. Support 5. Innovation 6. Communication leadership 7. Linked Value In order to obtain a clear and detailed insight for each of the above variables, four main social media typologies have been used: social networks (Facebook, Linkedin, Google+, Digg), microblog (Twitter), video and photo sharing (Youtube and Photobucket), forum and blogs. Also, other tools used within the analysis are Stumbleupon (search engine) and unofficial pages, depending on their relevance for some variables. The application of two main social media tools, SocialMention and Alexa, has served as a way to give practical evidence to the final work. The ultimate section of the analysis for each brand has been dedicated to evaluation on a scale from 1 to 10 of each brand on the seven variables taken into consideration. This has been done in order to allow a comparison among the three brands in terms of social media strategy. 4
  • 5. + III. Introduction to the Brand Rolex Rolex SA is a Swiss manufacturer of watches known for its luxury and high quality. These watches are popularly regarded as status symbols. Rolex was at the 71st place on 2007 annual list of the 100 most valuable global brands. It produces about 2’000 watches per day, with revenues of around US$ 3 billion. The brand has participated in the quartz watches development and it was one of the first brands to create waterproof watches. It was not just a luxury watch but also an item for active people with high tech certified chronometers. The company is now starting to introduce ceramic bezels across the range of professional sports watches. This wonderful luxury brand boasts famous owners like Roger Federer, Steve McQueen and Che Guevara and it had in its history notable endorsement for their advertising. Social Presence Is the brand present in all platforms that are relevant for their business and relationship strategy? Being a brand, which includes different areas/sectors such as watches, sport, culture and philanthropy, Rolex is present in most relevant platforms and channels on the web. Officially Rolex has one Forum (but not affiliated to Rolex.USA) and one Blog (Rolex Awards Blog), but it is also to be considered that the web is full of unofficial pages where the brand is present and discussed. According to the Facebook search page, there exist about 10 unofficial pages that grant the increase in brand awareness through the spread of information. Further, Rolex is also highly present on Twitter but mainly with commercial tweets. And as far as Linkedin is concerned, the brand is mentioned, particularly referring to the events and the design strategy, but just few posts are present and there are nearly zero comments. Digg is also mentioning the brand, but comments are related to offers of fakes and copies of Rolex watches. In Youtube.com the videos obtained by typing “Rolex” are more than 60’000, while the search for “Rolex watches” gives a result of 7’000 videos with quite a lot of visualizations and comments. Customer Engagement Management How many users the brand is able to contact through social media? Does the brand have a visible strategy for stimulating participation and customer engagement? In the Rolexforums.com posts are more than 2’300’000 with about 900 members creating discussions, relationships and sharing friendship. The posts are mostly discussions around the advertisement of new models, the share of products’ pictures, discussions about the different models of watches, questions about Rolex watches and so on. The Rolex awards initiative with its related blog is dedicated to support laureates whose innovative work contributes to the betterment of mankind. The comments on the relative blogs are usually very few and mainly associated to the project itself rather to the brand. Most of the unofficial Facebook pages are promoting new models of watches, events created by the Company or promoted by it, picture of users with their Rolex and advertising offers. Likes and members are about 300’000 and discussions are less than 2% of the members (Like 274’673 / talk 2’819). The users are quite active in posting pictures and comment them, but less active in commenting advertising offers. 5
  • 6. Concerning Twitter, as said before it has mainly commercial tweet with offers, discounts and advertising posts. It is also possible to find some discussions about current events like rubbery of Rolex, rich people victim of theft and discussion about the right to “wear” such a huge amount of money. In YouTube, the majority of videos are previewing the new models, showing the characteristics of the products, explaining how they are assembled and how it is possible to recognize a fake from an original item. Sentiment/Advocacy Management What percentage of users is positive or enthusiastic about the brand compared to the percentage of users who are negative about the brand? Does the brand have a visible strategy stimulating participation and customer engagement? Do they manage negative conversations? Most of the people who are posting or commenting in forums, blogs and platforms, express positive perceptions about the brand. There are consumers posting comments or likes on Rolex’ pages which are neutral, but also other people, who stand for the majority, that are expressing personal feelings associated to the brand. Very positive feelings such as excitement and enthusiasm come out in those posts and pictures regarding the purchase of a Rolex. This might be translated by saying that people are passionate and experience the brand as part of their life: to them such a luxury object can heighten their status. In this way, they are sharing positivity about the brand and, as a consequence, they promote positive word of mouth and brand awareness. Usually people interested in following the brand are going on the web voluntarily and are participating in a constructive way giving their advice and trying to struggle with negative comments to defend their brand. Some negative comments have also been found; in those cases people express negative opinions about the watches or even the brand itself. As an example, in YouTube negative comments associated to the video were almost the same: “I’ll never wear a watch like that, too many diamonds, too tacky, too expensive”. Anyway it emerges that in general people like the brand and some are very proud of it. Said all above, it is still not possible to distinguish a clear strategy pursued by the brand itself, which would leave Rolex to exploit these encouraging outcomes in the web. Support Does the company offers help through social media? Is there customer care through answers, comments or posts from the company? No direct response is given by Rolex. The reason that may explain this is that the analyzed platforms (forums, blogs, Facebook pages) are not official and not directly created by Rolex. Therefore, the brand is not straightforwardly involved in the discussions and is not answering or offering any kind of help. Besides, on Youtube.com it does not possess an account, meaning that it does not have any chance to post videos or comments. It is correct to say that Rolex does not provide any kind of customer service through the use of social media in general. Innovation Does the company ask for collaboration? Are users proposing solutions or service/product improvements within a co- creation perspective? In general, comparing all the platforms analyzed, the innovation is absent. This can be explained by the fact that, as already mentioned, the company is not directly present in the channels and is not dynamically interacting. Sometimes, when posting, people propose some kind of solutions or enhancements, but still they are quite few and not relevant enough to improve upon the product. A further reason which clarifies what has been already said, is the fact that the long and well established Rolex tradition has contributed to convince the lovers of the brand to not desire changes in the watch itself. Users of the platforms are just expressing their ideas, feelings and opinions commenting and posting about what they already love and appreciate. 6
  • 7. Communication Leadership Does the company directly manage proprietary brand communities? Does it actively support independent brand communities? Howa would you evaluate the credibility and authority of brand communication/participation. The company is not directly managing proprietary brand communities nor in social media such as Facebook, Twitter, YouTube neither on forums and blogs. Although the Rolex Awards Blog is a proprietary brand community, Rolex does not take care of the content and comments that are published and discussed on it, since it is stated that it declares they are sourced from bloggers and not from the company itself. It could only been found a link which from the main Rolex website leads to the blog, but anything else. Linked Value Has the brand become a social connector? What is the percentage of users who connect/discuss with their peers using brand-related social media spaces? In the majority of posts on Facebook and on Twitter, there is not a real conversation, rather only quick sentences or opinions about the product and the brand or links to commercial offers. Single conversations can also be found. In terms of forums, there is a quite high level of interaction between the users/members: by registering, posting and commenting in a forum dedicated to the brand, they show their likelihood to take part into a discussion about the brand and the product. Speaking about the Rolex Award blog, it is not a real communicating platform because there are not big conversations. Projects are posted on the blog, but as said before there is not a real discussion. Of course, the fact that Rolex is considered as a long-tradition brand facilitates the creation of a passionate community and with the digital era, a social connector. The aspect to be highlighted though and which Rolex should consider as a potential suggestion, should be that of the scarce presence of the Rolex company itself in feeding these conversations or replying and taking care of what is going on in the social media about its brand. It could definitively be a new way to stay closer to its customers, exploiting their already active presence on the web and their potential to boost Rolex brand awareness and trust. Overall Evaluation for the Brand Rolex with Respect to the 7 Variables Communication Social Presence Linking Value Management Engagement ROLEX Leadership Innovation Sentiment Customer Support Social 8 8 2 2 2 3 5 Networks Microblog 8 6 2 2 2 2 4 Video & Photo 7 6 2 2 2 2 4 sharing Forum & Blogs 8 7 5 2 2 4 6 Total average 7.75 6.75 2.75 2 2 2.75 4.75 7
  • 8. + IV. Introduction to the Brand Omega As stated in the official website, Omega is defined by its pioneering spirit. The brand has participated actively in some of the most challenging, fascinating adventures in human history: the conquest of space, world-class sports timekeeping, including 24 Olympic Games; an airplane designed to fly around the Earth powered only by the sun. Pioneering and sporting spirit, innovativeness and high precision are the capstone of this brand since 1848. Ambassadors and endorsers such as Nicole Kidman, George Clooney and James Bond/Daniel Craig contributed to the enormous success of this Swiss brand. Social Presence Is the brand present in all platforms that are relevant for their business and relationship strategy? According to HowSociable, the brand is present in the main current digital platforms: it has been noticed that Omega recently entered also Linkedin and Google+, with a limited percentage of followers still. Digg (explain what it is) appears to be as the most widely used in terms of comments and discussions, but this can be explained through the fact that it is connected to forums and blogs. Photobucket, not shown in this table, is also used especially for advertising purposes. In terms of forum and blogs, there are three main platforms of discussion:  omegaforums.net  omegablogger.com  thewatchforum.co.uk There are also many unofficial pages, both for forums and for social networking and video/photo sharing. Probably the aim of being present on the web for Omega is related mainly to commercial and advertising purposes: from this point of view, it is present in relevant platforms such as Facebook and YouTube. On the other hand, it really depends on the target: knowing that this brand is more related to a business and mature target, increasing its presence on Linkedin should be a priority at this stage. Customer Engagement Management How many users the brand is able to contact through social media? Does the brand has a visible strategy for stimulating participation and customer engagement? The Facebook page enlists 112’866 likes and among these the number of users that participate in the discussion and talk about the brand are 2’265. The strategy pursued by Omega in the platform is pretty visible: the company aims to engage customers by mainly advertising products and providing information about new boutiques and endorsers. Linkedin shows a number of 644 members, mainly belonging to the target of medium-high income class. Digg, a search engine, produces an output of 22’171 discussions and a profile with 11 members only, suggesting that it may be a fake one. These two last social networks do not present any kind of visible strategy, since discussions are created and managed by the users. No Google+ resources can be enlisted in the analysis. As far as Twitter is concerned, discussions are mainly fostered by followers – 2’374 – while the average number if Tweets is 137. In the video sharing platform, the final results for the search “Omega Watches” are 5’780 and two official pages – Omega Channel and Omega Official Timekeeper Channel – are founded. In terms of numbers, the first channel has been accessed by 18’160 viewers and 21 videos have been uploaded, but only 344 users actually subscribed. This page is about the history of the brand, updates of activities (endorsement, events) and commercial shoots. The other channel, Omega Official Timekeeper, counts 55’050 visualizations and 425’946 uploads; Timekeeper channel has 52 video and 431 subscribers. This channel is more broad since is not only about Omega, but it includes evaluations on several brands belonging to the industry. Photobucket mainly presents unofficial commercial contents through the sharing of 2’157 photos and 30 videos. In the Omega Forum Statistics’ there are 250 Discussions, 2’348 Messages and 251 members. This is the first forum for the Omega community, thus it is quite easy to find a low level of customer engagement and an intense activity. Every day about 40 members are online during the day and on average 5 discussion are followed per day. 8
  • 9. The Omega Blogger is a web site analyzed in one of the most important tools of web information, that is Alexa. Traffic rank for this blog is 1’505’007 clicks, users spend about 55 seconds per visit to the site and 25 seconds per page view. Visitors surf on average 2.2 pages each day and the fraction of visits referred by search engines is roughly 8%. The Watch Forum has a very large number of users and a good percentage of them discusses about Omega watches. In the forum statistics' it can be seen that there are 696’103 total posts and 21’837 total members. Every day there are 170 active users/hour, among which the majority are guests and not registered members, meaning that anyone who is interested in the luxury segment of watches can undertake a discussion and share opinions and thoughts with other Omega lovers Sentiment/Advocacy management What percentage of users is positive or enthusiastic about the brand compared to the percentage of users who are negative about the brand? Does the brand have a visible strategy stimulating participation and customer engagement? Do they manage negative conversations? Generally speaking it can be said that Facebook shows many positive comments since many users are advocates of the brand. There is a lot of enthusiasm especially about endorsers and advertising campaigns that are focused on emotional issues (e.g. Nicole Kidman & Brad Pitt commercials, see link on the Appendix). In Linkedin and Digg, comments and discussions are more neutral, since it is more a matter of selling and advertising. There are some negative comments, the majority of which are about replica and fake. In Twitter comments are mainly neutral and related to commercial purposes, too. In YouTube, videos in both unofficial and official pages show many enthusiastic comments (more in unofficial pages), especially thanks to endorsers' videos. In official pages there are less comments but all positive. It has not been possible to check whether administrators have deleted negative comments or not. The official Omega forum has the possibility to be shared on the most famous social networks like Facebook, Twitter and Google+, so it's a good start to improve the W.O.M. and support the brand community activity. Here it is better to notice the influence of the brand to spread news and try to enlarge the discussions and comments of its community. The Omega Blogger is an unofficial blog and there is no possibility to share it on Facebook or Twitter, meaning that it is usable only by the users: there is not a good W.O.M. outside it, but inside it is possible to find a lot of links connecting the blog with other sites like it. In here, the Omega community can take part into discussions belonging to different categories, but it has been noticed that there is a narrow interesting W.O.M. The discussion about the brand show negative comments defended by other users, and the majority of the discussions contains likes and desires of the members. The brand show here a lack in the activity of support and strategy to manage the negative W.O.M., but in the same time, Omega community is able to defend the brand and share positive thinking about the new model of Omega watches. There is not the possibility to share the Watch Forum on Facebook or Twitter, the best common social network, so its W.O.M. isn't very active; but inside it the brand has a quite good visibility, a positive activity of the Omega community that here opened discussion and spread news about Omega watches that positively affect comments by all users of the watch forum. So the strength of this brand, here, is its community, no relevant strategy and support. Support Does the company offer help through social media? Is there customer care through answers, comments or posts from the company? Regarding this point, it can be argued about social media in general without differentiating between social networking, microblogs and so on. As noticed, there is not really an interaction with users and followers: Omega posts video and news about boutiques, endorsers (the brand new South African swimmer Chad Le Clos) and events (Omega Mission Hills World Cup of Golf) but rarely participates in discussions or replies to comments. There is not a real customer care; it is more an interaction among followers rather than between brand and users. Customers are bombarded with information but comments about it do not seem to be considered by the company. For YouTube as well there is no interaction with users: the brand simply provides them with a short comment below the video. As just said, brand support is present better in the Omega's official forum, where the Brand "Omega" is shared on social networks, offered the possibility to know more information and news about Omega things by linking a lot of web sites about this brand. Through the discussion, we find also a category of discussion named "Forum suggestions and support" where users can ask changement of the forum and add value to it. In the other two forums, the brand is not relevant, so its activity and service can't be notice. 9
  • 10. Innovation Does the company ask for collaboration? Are users proposing solutions or service/product improvements within a co-creation perspective? Does the company ask for collaboration? What percentage of users proposed solutions or service/product improvements within a co- creation perspective? Again arguing for all the platforms considered: it does not seem to be co-creation and collaboration between the brand and its followers. Linked to the variable just discussed above it can be said that since there is no support and interaction, also innovation is lacking. Of course there are many unofficial pages, especially in platforms such as Digg and PhotoBucket, where the brand is under no obligation to respond or to interact with users, since it does not have an official profile. If we consider innovation in terms of keeping customers aware and updated of brand new initiatives and products, there is a lot going on this side. The problem is that it seems to be no willingness to interact with the customer and create and become a real presence in the community. In the discussion category of the official forum said above, there is the real collaboration between the Company and its community members. One may read about the Company asking useful advice to improve the blog and also the watches, trying to find co-producers consumers that are able to find new solutions and other innovation things for the official blog and the watch models. Communication Leadership Does the company directly manage proprietary brand communities? Does it actively support independent brand communities? How would you evaluate the credibility and authority of brand communication/ participation. The brand directly supports brand communities in Facebook and YouTube: it manages the official pages by regularly posting images, videos and news. It has recently created an official Twitter and Linkedin page: on Twitter it daily updates its status, while on Linkedin the page is more supported by users rather than managed by the brand itself. The content of the pages can be considered as valuable and entertaining since it deals with many different issues such as iPhone application, virtual boutiques, events (e.g. Golf World Cup) and so on; on the other hand there is not an active participation to discussion. The Brand can manage its community in its official forum by offering arguments to comment, photo gallery, information and news, but also material about where it's possible to find Omega watches, generating like an "e- bay site" inside of one discussion's category called "Watch market place". The brand creates also discussions about other watches (like Rolex) to stimulate the comparison and let also spaces to open discussions from the users. It seems that with this strong activity and presence in the community, Omega has earn its trust and loyalty: this can be confirmed by monitoring the others unofficial forums where the real brand community support the brand and defend it as if they were Rolex themselves. Linked Value Has the brand become a social connector? What is the percentage of users who connect/discuss with their peers using brand-related social media spaces? The brand has become a social connector mainly on Facebook since it uses this platform to link videos on YouTube and to promote its new “Lifetime iPad application”. However, the connection is more among users rather than between the brand and its customers. There are potential communities under the surface because there is a lot of interaction especially in platforms like Facebook and YouTube. 10
  • 11. The problem is that the brand is not exploiting the potential of its enthusiastic followers; rather it focuses mainly on the commercial and advertising issues. The same problem can be noticed on forums and blogs; it has been noticed that people discuss among each other and show enthusiasm and passion towards the company, but discussions remain at this level, there is no connection with the brand itself. Overall Evaluation for the Brand Omega with Respect to the 7 Variables Communication Social Presence Linking Value Management Engagement OMEGA Leadership Innovation Sentiment Customer Support Social Networks 9 8 4 3 6 7 7 Microblog 8 7 4 3 4 4 4 Video & Photo 9 8 4 3 5 6 6 sharing Forum & Blogs 9 7 4 3 6 6 7 Total average 8.75 7.5 4 3 5.25 5.75 6 11
  • 12. + V. Introduction to the Brand Patek Phillipe Patek Philippe boasts a long tradition of over 150 years and has always based its business on values like innovation, tradition, heritage and emotion. Although the first two might appear to be in contrast, they have contributed to establish the brand as the "finest producer of timepieces in the World", because of the right balance between the two of them. Patek Philippe has always aimed to sell its valuable productions as carriers of pleasure for sight and pride for wearing by pushing on the concept of heritage: the watches are destined to live forever together with the generations that will have the honor of owning the first ones. This concept was applied in the Generations Campaign, whose message was mainly that of possessing a watch that could live within the family and consequently be a signal of continuity through the years. Social Presence Is the brand present in all platforms that are relevant for their business and relationship strategy? According to SocialMention, the brand is present on Facebook and Twitter but not on Google+. In Facebook there are two main official pages (one related to the company and the other one to the community), one about the Smartphone application and numerous unofficial pages (small groups and communities). It has also a Linkedin account where the company itself is registered but not an official forum nor an official page on YouTube. Having said that, there are multiple unofficial pages in different platforms, maybe meaning that even if the brand does not own any community for example on YouTube there is an interesting buzz around it anyway. It is also significant that the unofficial forum watchtalkforums.info/forums/patek-philippe-forum at the first sight looks like an official one since it is the first that comes up from Google when you digit “Patek Philippe forum”. Customer Engagement Management How many users the brand is able to contact through social media? Does the brand has a visible strategy for stimulating participation and customer engagement? In social network platforms it can be said that the brand is mainly present on Facebook where it counts 18.525 likes and 396 talking about it on its official page “Patek Philippe Company”; on the Community page there are 10,231 likes. Besides that there are many unofficial pages that together count about 2,000 likes. The brand is not present on Google+ while on Linkedin it shows 859 followers and 139 employees actually registered on the account. There is no official page on Digg but when typing Patek Philippe it shows 1.011 results. Considering the microblog Twitter the brand has an official page with 278 followers. In video and photo sharing platforms there are not official pages either but on YouTube the brand has 2,950 results overall when typing the brand name. The most seen video is “Patek Philippe-birth of a legend” with 326,187 visualizations. In Photobucket again there is no official page but 2,216 photos and 10 videos uploaded by different users and websites. As mentioned before, the most active forum is WatchTalkForum and it counts 608 threads. 12
  • 13. Sentiment/Advocacy management What percentage of users is positive or enthusiastic about the brand compared to the percentage of users who are negative about the brand? Does the brand have a visible strategy stimulating participation and customer engagement? Do they manage negative conversations? Generally speaking comments are mainly positive and neutral. According to SocialMention, there are more neutral than positive comments but no negative ones, just few mentioning fake products and high prices. In the WacthForum comments and posts are all positive and enthusiastic while on YouTube more people like the video Birth of a Legend (871) compared to those that dislike it (15). Support Does the company offer help through social media? Is there customer care through answers, comments or posts from the company? There is not a real interaction with users since the brand just posts videos and news without involving them in the discussion. It is more an interaction among followers rather than with the company itself. This is common for all social media. In particular in Facebook, there are only informative messages posted by the brand and discussions fostered by enthusiastic followers: the last post by the company was on June the 20th and it was just about stopping pasting links on the page because the page was only for people who could really afford a Patek Philippe. On the YouTube platform, there is a discussion going on related to the video Birth Of A Legend: people discuss about why they should buy these watches and so on. Many of them argue in favor of the brand, saying that they would be willing to pay more than 40’000 dollars in cash. They also say that their product is a matter of emotion, quality and vision. Innovation Does the company ask for collaboration? Are users proposing solutions or service/product improvements within a co- creation perspective? Does the company ask for collaboration? What percentage of users proposed solutions or service/product improvements within a co-creation perspective? Having mentioned the 20th-June-post it has to be said that there is no innovation if the brand kind of discriminated among its followers. The main goal of the Facebook page is just to inform, not to interact. Same thing for the other platforms: in Twitter there is nothing posted by the company and on Linkedin there are only few information about the company itself but nothing about the brand. In the forum, users do not seem to look for innovation, since comments are more related to their experiences with the product and no queries and problems are addressed to the company. Communication Leadership Does the company directly manage proprietary brand communities? Does it actively support independent brand communities? How would you evaluate the credibility and authority of brand communication/ participation. On Facebook, the official page is managed by an administrator while the community page is not really administered by anyone so people just post comments and share links. Since the company does not have any official page on YouTube there is not a real brand community even if, reading the comments of the video, there is a perception that a potential community is actually present and should be exploited. There are two official profiles on Linkedin and Twitter but there is not a real discussion on those pages. Linked value Has the brand become a social connector? What is the percentage of users who connect/discuss with their peers using brand-related social media spaces? On Facebok, YouTube and the WacthForum there is a high level of interaction among users: they share experiences, comments and news related to the product. There is no interaction with the brand itself. On these pages there are no references to other social platforms, even if they are present on Twitter and Linkedin. 13
  • 14. Overall Evaluation for the Brand Patek Phillipe with Respect to the 7 Variables Communication Social Presence Linking Value Management Engagement PATEK Leadership Innovation Sentiment Customer Support Social 8 8 2 2 2 3 3 Networks Microblog 6 5 - - - - - Video & Photo 6 6 5 4 4 4 4 sharing Forum & Blogs 7 7 5 4 4 4 4 Total average 6.75 6.5 4 3.2 3.2 3.7 3.7 14
  • 15. + VI. Conclusion Considering the long history of tradition of these brands and their mature target, it is clear that there was some reluctance at the beginning to enter social media platforms. Rolex could be the most challenged one since it is considered as the most valuable and prestigious among the three. There should be a trade off between keeping a link with its roots and at the same time moving one step further towards these new modern customers. Omega is the most active in terms of official pages and interaction with users: the answer could be find in its sporty and fashion target that identifies with celebrities like George Clooney and Tiger Woods. Rolex as well has many ambassadors from the sport industry but probably this is not its main focus and target; Omega on the other hand has made sport and pioneering spirit its main vision and mission. Patek Philippe does not have a clear strategy in terms of digital marketing and it is clear from the many unofficial pages that are present on the web. There was not so much to analyze about this brand since the interaction with customers was almost absent and even in the brand community there was no support at all from the company side. At first sight it seemed that the three Swiss brands tried to keep up with changes in the market and in their customers but they left everything halfway. They entered the most important and widely used social media platforms but then they did not exploit their communities by interacting and co-creating with users. The danger could be being perceived as arrogant and not willing to share mission and vision with their advocates. The only one really present on its official pages its Omega: Facebook page is daily updated with video and news and same for YouTube channels. On the other hand, Rolex and Patek Philippe posted a comment respectively the 8th of May and the 20th of June. So the future of this brand really depends on how they will be able to manage their customer relationships on social media platforms, also because Smartphone applications are growing in importance and these brands, apart from Omega, are missing the point. The conclusion of this report would be more a question rather than a statement: are these brands going to survive to this challenge without losing their secular tradition? Who is going to be harmed the most and who the least? How could they build and create value with brand communities without forgetting about more conservative and traditional customers? 15
  • 16. VII. Appendix Rolex, Omega and Patek Philippe perceptions on HowSociable? tool. 16
  • 17. Rolex, Omega and Patek Philippe perceptions on Social Mention tool. 17
  • 18. + + + Università della Svizzera italiana Via Giuseppe Buffi 13 CH – 6900 Lugano www.usi.ch