Marketing Strategies and Segmentation

This assignment delves into the fundamental elements of marketing strategy. It examines the traditional 'Four Ps' (Product, Price, Place, Promotion) framework as a tool for developing effective marketing mix decisions. The analysis further explores various market segmentation approaches, including demographic, psychographic, and behavioral segmentation, highlighting their relevance in targeting specific customer groups. Additionally, it investigates brand positioning strategies within the context of market competition.

Marketing strategy

EXECUTIVE SUMMARY
This report discuss market strategy and its important inn tackling current marketing barriers this
marketing strategy help organisation in achieving there marketing aims and goal. The report
contains situational analysis of Reebok the famous footwear company. It contains SWOT and
PESTLE analysis which help company to identify better opportunities. Further more the report
evaluate the market strategy of Reebok. STP strategy as well strategies based on marketing mix
is mentioned in report.

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Situation Analysis:......................................................................................................................1
Competitive advantages .............................................................................................................4
Current Marketing Strategy.........................................................................................................6
PART 2............................................................................................................................................6
Segmentation Targeting and positioning....................................................................................6
Recommended Objectives and goals..........................................................................................8
Marketing strategies based on marketing mix............................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
For the success of any company its necessary for organisation to have better marketing
strategy, which can help organisation to achieve there marketing goals. A good and
comprehensive plan main aim is to help firm to achieve maximum profit and long term business
this plan should be drawn on the basis of detail market research which put focus on marketing
mix (Armstrong and et.al,. 2015. ). The present research study is made on Reebok that is a UK
Footwear brand that is known for there comfortable footwear for sport people and youngsters.
This report give detail study of marketing strategy used by Reebok to promote and sale there
products and increase there demand in market.
With market strategy of organisation, researcher has also included the market
segmentation of organisation (Aurélie, 2010) Which help organisation to target selected part of
organisation and work in accordance of them. It will also discuss about the current position that
company holds in market, while providing recommendation on different marketing strategies
based on marketing mix which can prove beneficial for company in achieving there goals and
objectives.
PART 1
Situation Analysis:
Marketing strategies are those techniques which can help organisation in achieving in
there goals objectives and vision(Cravens and Piercy, 2006). The success of organisation depend
upon the recognizing and grabbing the correct opportunities presented to you(Dawes, 2012.).
With understanding of opportunity it's also necessary for firm to understand the dynamic
changes brought by business environment. To have a full marketing audit its necessary for
company to examine all external and internal factor which can affect them.
SWOT Analysis Meaning:- An SWOT analysis is analysis of the strength, Weakness,
Opportunities, Threats of the organisation. It is a structured planning method that basically
evaluates the 4 essential elements of the company. These elements play important role to
analysis the internal and external growth of the company(Dibb, 2010.)
Strength of Reebok:-
 They have so many experienced
business units.
Weakness of Reebok:-
 They should work on there brand

 They are highly profitable & revenue
organisation.
 They have skilled and experienced
workforce.
 There labour cost is low.
 Control over domestic market.
portfolio.
 Limited horizon of products.
 strong competition.
 lack of marketing
 Poor distribution quality
Opportunities of Reebok:-
 They have opportunity of venture
capital.
 unique ad creative design
 growing market
 Venturing in young and adult market
 Good sales growth in Asia and Latin
America.
Threats of Reebok:-
 There are some technological issues
which required to improve.
 The competition is growing day by day
they introduce new ideas to there
customers that will increase there
profitability.
 Tax Changes that affect.
 Government regulations and the polices
changes that affect allot.
Pestle Meaning:-It is Basically analysing these aspects which are very important in every
organisation. It is also called or known as the PEST analysis, there basic concepts is work for the
marketing principles moreover this concept is used as an essential tool by the companies to
analyses of the internal and the external environment of the company.(Harris and Rae,,2010.)
Political:-
Reebok firstly understands the regulations, policies, interest rates, tax system of different
countries, while introducing there product. The brand focussing on the financial performance,
develops leading positions and categorised the major markets, matching the customer
requirements and lead with the innovative ideas & designs. Political factors can play major role
in establishment of any company it can either help organisation or can create barrier in the
success of it so its necessary for business entity to understand the political issues and benefits of
following country that can help them (Hollensen, 2015. ). For e.g. US political envt. provide easy

atmosphere for corporate activity which can be beneficial for firms like Reebok, further more the
govt. provide many reforms for development of business.
Economic factors:-
Reebok is among top 3 sports brands, with the largest sale of the footwear all over the
world. Company focus on the mid-range and target the lower and minimum income rate earning
customers or groups of people. Its products are of different classes & genders of the society.
Company before launching there product has to give special attention to the current economy of
society for e.g. if a country is suffering from inflation than launching an expensive footwear in
market can be quite a risk to company because in such economic crisis people do not spend
much on brands. Its better for company to look over the economic condition for e.g. china and
India which have great emerging economics investing here can be profitable as this economy has
great consumption power.
Social Factors:-
The Reebok is regularly introducing the different sports products to there young
customers like academics & school across the world by this they are creating awareness among
the people about essential use of the sports products to remain fit and healthier. With social
preoccupation of fitness and health Reebok get many beneficial opportunities(Dibb, 2010). With
growing awareness of health among society people are joining more and more sport or fitness
activities it automatically increases the demand of sport and fitness wear as Reebok promote
comfort with fitness can attract many customers to them. But in today time this companies also
have to face some issues as they do not address the condition of labour or ignore the labour
sector of society, it has set a negative effect on society so its necessary for firm to look at social
condition of society.
Technological Factors:-
Reebok is well-known to their famous brand image because of there innovative ideas and
there technological advancement. If there brand want to make consistent development in the
business world they have to continue with there innovations. In today's advance technological
world its necessary for organisation to be up to date to all the technologies which can help the to

increase there efficiency. Company can implement digital metrics which can help them to
analyse there customer demand and there segmentation accordingly.
Environmental factors:-
Reebok is making consistent efforts to set the responsible workspace standards and
minimize the impact on the environment whether it is internal environment of the company or
the external environment. Brand abides the countries economical rules and regulations & strictly
adheres to them. Company has to work in order to maintain the green in envt. and has to
introduce the policy in there organisation to reduce the envt, pollution done by there companies.
They can introduce policies which can help them in reduction of carbon emission and
elimination of waste(Sui and Yang 2010). the involvement of employee in envt. policy has
positive effect not only on the productivity of organisation but also on the psychological contract
of staff.
Legal Factors:-
Reebok follows different legal aspects during their business activities. There products are
highly user friendly and not harmful because there basic motto is to create awareness of fitness
and stay healthy. Its important for organisation to adapt to different legal and policy framework
which can help them to grow internationally (Hollensen, 2015). Study of legal framework help
company in there further investment for e.g. UK and US have common law frame work that
favour low interventionist approach while countries like Germany, France acknowledge wider
stakeholder interest this help organisation to decide which type of venture could be more
beneficial and profitable for them.
Competitive advantages
Reebok is count in top three markets leaders of sports shoes. the reason for such a great
success of organisation is there unique design and there marketing strategy the right balance
between these two has brought Reebok to such heights(Huang and Sarigöllü, 2014). Reebok from
the release of there first shoes to there current easy tone shoes has maintained there unique style,
creativity and authenticity which not only incSui, Y. and Yang, X., 2010rease comSui, Y. and Yang,
X., 2010pany's potential but also give them edge over there employees. In 2006 company has

over taken Adidas which not only them to increase there market share but also give there firm a
competitive advantage over there lead rival Nike.
Market performance
Market growth: Its already established that Reebok has become the top name when it comes to
foot wear brand. The company was established in 18's but by the year 1981 it was already able to
achieve the sale exceed of$1.5 million. Which clearly shows the growth of company from very
early stage in current time the net sales amounted to about 1.6 billion euros. Organisation with
there unique style also have adopted different measures and strategy to increase there market
value. It was the first company to target women for active wear shoes companies, Which help
them in massive enhance in sales.
Reebok has strong hold on the market as it sponsor different sport events such as NBA,
NFL, NBDL, other than this company also have exclusive partnership with National Football
League. it works as a foundation for consumer product business of NFL. It also has long termed
partnership with National basketball association. This all help in Reebok in overall growth of
market. In 2011 firm made there the biggest alliance with the big fitness movement cross-fit in
addition to it there new contract with designer Swizz Beatz became reason for the increasing
popularity of brand.
Sales Trend: In early time of Reebok the focus of organisation was on producing comfortable
shoes for all age but with time and increasing popularity company has also ventured in another
product increasing there product line. In current time, Reebok has also come to known for there
sport accessories. There product line include shoes, apparelCurrent Marketing Strategy:s, sport
equipment, exercising/ health product etc. The company is known for there sport shoes but with
increase in demand and competitive level in market company has introduced new types which
includes floaters and sandals which are very popular among youth. The company new venture in
apparels, equipments and products also help company to increase there sales. Current Marketing
Strategy:Reebok showrooms are of two type speciality store and franchise organisation. Further,
to meet the demand of customer company has divided there stores in Single line stores, super-
speciality stores and limited line stores, also company have also started selling there products
online.
Profitability: The company has great market growth ad new trends in market with innovative
sale design but still company seeing great loss in last six years. In year 2015 the total asset of

company was 100 and by the year 2017 there was no change, it remains constant to 100 without
any increase or decrease but the same cannot be said for Companies liabilities in 2015 the figure
recorded was 28.35, in year 2016 it changes to 3.35 and in current year it was 33.35. It shows
that there is constantly increase in the cost of expense while there is no change in the gain of
company it shows that how company is suffering from loss. In year 2006 company faces the
major decline in there sales, to cover for that loss company try to come up with new strategies
and method but still could not reach there previous place and faces the issue like trust among
there customer. What company now need is better strategies which can help them make better
place in market also help them to earn the trust of there customer. The current strategy the firm is
using is "Be more human" which support tough fitness movement of women to boost there sales.
Even though company is suffering from low sales company is still able to held there top position
because of there marketing strategies which help them to stand in market through there different
marketing strategies such as initial transaction and targeting the women sector of society.
Current Marketing Strategy
Company uses different ways' trough which they try to communicate there vision to there
market. Company is making big investment to improve there infrastructure for the better
distribution of there product and to increase there company vision. Company launches ranges of
product to satisfy there customer. They also launch women apparel keeping in mind the comfort
of person which is responsible for 40% of company's turnover. In addition to it company is also
venturing in another footwear except sport shoes now they have also launched floaters and
sneaks in there footwear range. To attract more customer company also uses different prices
policies, which not only increase there sale but also give them an plus i this competitive market.
PART 2
Segmentation Targeting and positioning
Market segmentation is a process where they divide there customer in the sub group with
same demand, needs, interest, lifestyle or characteristics. This segment help organisation to find
about the potential growth or target market. Segment depends upon market or business when the
business is between two business(B2B) the segment market into types of businesses or countries
. The focus is here on (B2C) market means business to consumer in this geographic
demographic, lifestyle, behavioural are different segments that are made. (Jainand Haley 2009)

The segment which Reebok use is Demographic segmentation. This segmentation
targets the individual on the basis of there age, gender, life cycle, generation occupation etc.
Reebok has wide range of apparels and footwear line which carter the need of not only man but
women as well. The main target of Reebok is generally the people between the age of 15 to 40.
The company is working to achieve long-term brand loyalty by increasing there focus on teens
and sport people. Targeting the women sector of society has always been beneficial for Reebok
not only in early times but also in current time, this targeted sector contribute a lot in overall sale
of company. Other than this to meet the need of current time where youngster are more involve
in vigorous and tough training the company introduce there new product to please these people.
Like there the latest addition "Be more human". Other than this company also has invested in
sports equipments like bats and racket.
Positioning strategies of company
Celebrating individuality in sport and life, and empower global youth to fulfil there potential has
been the main target of company, company focus is fitness it promotes that fitness can be lead to
Illustration 1: Type of market segmentation
(Source:Types of Market Segmentation 2014)

healthier life style. There are many way through which company can keep the hold of there
company position in market. Brand positioning strategy, product positioing strategy,
Competitive Pricing Strategy, Competitive Positioning Strategy and alternatives to marketing
consulting firms. are some strategies used by company to tighten there hold in market(Li and
Weike 2012. ) Reebok uses Competitive pricing strategy, this strategy pay attention to there
customer and try to find out how sensitive there customer are regarding the price of product.
Understanding these dynamic help company to understand there market and help then to create
better market and pricing policy. This strategy also create opportunity to have long termed
relationship with there customer in addition to this it also provides them competitive edge.
Reebok need to bring bi changes in there pricing policy little alteration and reduction in prices
can be quite benefit to the organisation. The company need to pay attention to economic
condition in emerging economic they can reduce there prices and countries with better economy
can have product with high cost.
Recommended Objectives and goals
Every business has specified goals to attain there objectives company use different ways
through which they can achieve there aims . SMART is such approach that is used by different
business entity to achieve there goals and objectives. Its is an acronym for specific, measurable,
achievable, relevant, and time based. It means that the goal set by company should be specific
and well defined with measurable outcome, it must be attainable and not be far fetched or
irrelevant and should be completed in particular time(Lin, Lee and Wu 2010)
keeping the above points in mind Reebok is trying to achieve there main objective of
keeping there overall position and competitiveness in market.
Company first aim is "to increase there sales figure by 25% by the year 2018" looking at
there current figure its necessary for organisation to increase there sales grow for there overall
development. Company is trying to implement different pricing strategies and more activities to
increase there sales. The enhancement in sale will automatically increase the revenue of
company, giving it competitive advantages and better growth opportunity in market.
Second aim of company is "to increase there customer by 35% by the end of year 2018"
Increase in customer will automatically increase the sale of company leading to the increase in
revenue. The company main goal is to create better relation with there customer, by creating
trust among them and increasing there loyalty toward the firm. Other than this company also

trying to introduce new range of products which can attract more customer. Furthermore,
company also plan to include older generation in there target market. This will help entity to
attract more customer leading the overall growth in the sales of company.
Third aim of company is "to improve there distribution and product quality by the end of
2017" in order to achieve this goal organisation is planning a better distribution method which
not only is attractive but also meet the comfort of customer, distribution of there product has
always been the problem of there business. there retail store though are specified like one line
store which does not provide much choice to there customer. The quality of product of Reebok is
good but what it lacks is range in there product. There is not much choice for customer to choose
from there are only few selected products for women. Company should to introduce new range
of footwear and apparels which not only satisfied male but women too.
If company is able to achieve the last two aim mentioned above it will automatically
increase the sale of company automatically helping company to achieve there first goal. In
addition to all this if the company is able to achieve the above mention goal it will give the
organisation an edge over there rival organisation, making there position strong in market. This
all will help company in gaining competitive advantages in market.
Marketing strategies based on marketing mix
Marketing mix is a marketing tool applied by different business entity to achieve there marketing
objectives and target. (Muhamad, Melewar and Faridah). It includes different factor which are
controlled by organisation in influencing there customer to buy there product. These factor
involve product, price, place, and promotion, its also known as 4Ps of marketing mix. It simply
means using right product, in the correct place at right time and place. Company keep this 4ps in
there mind before launching there product in market.
Reebok also uses this 4ps as the base of there new market strategy:
Product: Any product that company launches keep a target market in there mind. The aim of
company is to satisfied there customer so its necessary for organisation to see that the product
they have launched should be satisfactory to the taste of customer(Rust, Lemon and Zeithaml,
2004). To meet the demand of customer Reebok has launches ranges of product such as Reetone
collection which work on the strategy of moving air for health conscious people, Reegym
targeted the people who loves work out and keen on working in gym. There Reezig product is
more suitable for sport person making sure that it have higher endurance capacity for running

and agile sport. Launching product while keeping in mind a target group help company to
increase there sale.
Place: Reebok has emerged as a brand name and able to make there presence known in global
market. It has its main headquarters in Canton and USA, while there regional office in Hong
Kong Amsterdam and Montreal. The biggest investment is made in the field of distribution
infrastructure so that they can have better retail ambience that is fully international as well as
uniform. Company works to create qualitative environment that's why its outlets are exclusive. It
has exclusive outlet stores and dealer outlets. Furthermore, they also have hired professional to
make sure that there store have the highest visibility. Reebok has gone for franchise organization
opening biggest showroom of world in Hyderabad.
Price: To capture market at better rate its essential for companny to have petter pricing policies
(Star, 2011. ). Reebok has decided to work on the policy of common pricing policy, and when it
comes to apparel than penetrating pricing policy. In this company started with lower price but as
the demand increase they adopt common pricing strategy where they increase prices to being
reasonable. There is another policy that is there skimming policy which they mostly use during
the launch of new product. In this they set high prices for the product which are in demand or are
superior to other. When it comes to brand what client expect is quality the added value in price
help them to increase there revenue. They try to communicate to there customer that quality is
reason for high prices.
Promotion: In order to communicate there vision and goals with there customer company use
high promotional activities they become associated with different sport fields like cricket, NBA,
NFL but the biggest steps it has taken was to create partnership with cross-fit movement which
promote the overall fitness and health of people(Aurélie, 2010.)To make there customer happy
company also put clearance sale where they put there old stock out to make there customer
happy. Other than this company also offer coupons and vouchers discount to attract more sales.
The other way through which firm connect to there customer include direct interaction scheme,
billboards, magazine, advertising social media etc. Company also invest in big personality so
that they could promote there product.

CONCLUSION
In above report discuss the marketing strategy of Reebok. It gives detail study of
situational analysis of company, divulging into the competitive advantage of company while
evaluating the current marketing strategy used by company, Furthermore the report conclude
positioning and segmentation targeting of company selecting and targeting right market which
can help company. It also give detail study of objectives and goal of company on the basis of
SMART approach and market strategies on the basis of marketing mix.
Illustration 2: 4Ps of marketing mix
(Source:The Four Ps of Marketing )

REFERENCES
Books and Journals
Armstrong and et.al,. 2015. Marketing: an introduction. Pearson Education.
Aurélie, V., 2010. Viral Marketing REEBOK: The Terry Tate Case study. tousLesDocs. com Publications.
Cavusgil, S. T. and Zou, S., 1994. Marketing strategy-performance relationship: an investigation of the
empirical link in export market ventures. The Journal of Marketing. pp.1-21.
Cravens, D. W. and Piercy, N., 2006. Strategic marketing (Vol. 7). New York: McGraw-Hill.
Dawes, J. G., 2012. Brand loyalty in the UK sportswear Market.
Dibb, S., 2010. Market Segmentation Success–Making it Happen!. Strategic Direction.26(9).
Gordon, R., 2012. Re-thinking and re-tooling the social marketing mix. Australasian Marketing Journal
(AMJ). 20(2). pp.122-126.
Harris, L. and Rae, A., 2010. The online connection: transforming marketing strategy for small
businesses. Journal of Business Strategy.31(2). pp.4-12.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand equity, and
the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132). Springer New
York.
Jain, S. C. and Haley, G. T., 2009. Marketing planning and strategy. Cincinnati South-Western Publishing
Company 1985..
Li, Y. and Weike, S., 2012. Analysis on Listing Prospects of Sports Enterprise. In Future Computer,
Communication, Control and Automation (pp. 199-202). Springer, Berlin, Heidelberg.
Lin, C. T., Lee, C. and Wu, C. S., 2010. Fuzzy group decision making in pursuit of a competitive
marketing strategy. International Journal of Information Technology & Decision Making.9(02).
pp.281-300.
Muhamad, R., Melewar, T. C. and Faridah Syed Alwi, S., 2012. Segmentation and brand positioning for
Islamic financial services. European Journal of Marketing.46(7/8). pp.900-921.
Peter, J. P., Olson, J. C. and Grunert, K. G., 1999. Consumer behavior and marketing strategy.
Rust, R. T., Lemon, K. N. and Zeithaml, V. A., 2004. Return on marketing: Using customer equity to focus
marketing strategy. Journal of marketing. 68(1). pp.109-127.
Star, S. L., 2011. Feminism, grounded theory, and situational analysis revisited. Handbook of feminist
research: Theory and praxis. pp.388.
Sui, Y. and Yang, X., 2010, June. The potential marketing power of microblog. In Communication
Systems, Networks and Applications (ICCSNA), 2010 Second International Conference on (Vol.
1, pp. 164-167).
Online

.The Four Ps of Marketing [Online]. Available through:
<http://www.purelybranded.com/insights/the-four-ps-of-marketing/ >. Accessed on: [23 Sept.,
2017].
Travis Bennett 2014 Types of Market Segmentation [Online]. Available through:
<https://blog.udemy.com/types-of-market-segmentation>. Accessed on: [23 Sept., 2017].