Marketing Strategy for Reebok's Classic Sneakers

This assignment analyzes the marketing strategy of Reebok's Classic Leather Ripple Low BP sneakers. It applies the STP (Segmentation, Targeting, Positioning) model to understand Reebok's target market and positioning within the competitive landscape. Furthermore, it outlines SMART goals that Reebok could implement to achieve success in this market segment. The analysis includes a discussion on the product's physical evidence and references relevant literature and examples.

MARKETING
STRATEGIES

EXECUTIVE SUMMARY
Marketing strategy is related with development of plans and policies which are useful in
achievement of growth and development for selected business. It is the most important task for
business in order to achieve their goals and objects which results in achievement of competitive
gains. Strategy helps in decision making process thus all task will be executed in planned ways.
It is also beneficial in development of marketing plans which helps in easily analysing all
operations which have to be carried by business. This results in completing all business strategy
in desired time frames that were allotted to them. Thus working of business in effective ways in
order to achieve good results. This report is based on footwear company Reebok which is
designing foot wares for athletic players and these are giving comforts to people who are using
them. There operations are spreading all around the world.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Situational Analysis....................................................................................................................1
SWOT Analysis..........................................................................................................................3
Competitive Advantage...............................................................................................................5
Marketing Strategy......................................................................................................................5
PART 2............................................................................................................................................5
Segmentation, targeting and positioning.....................................................................................5
Smart Objectives and Goals........................................................................................................7
Marketing mix strategies.............................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing strategy are defined as business operations which are focused on developing
customers who can use products and services which are manufactured by firms. The marketing
strategy contains all short and long term goals which are useful in effectively implementing all
business operations. This strategy is also helpful in identifying all factors which are affecting
business activities like PESTLE Analysis. These strategy are having long life span as they are
creating values for products which will be purchased by customers. This is beneficial in
achievement of competitive gains for business (Armstrong and et. al., 2015). Reebok is a
Footwear company which is subsidiary firm of Adidas. They are manufacturing good quality
foot wares which helps them to gain brand images at market place. The undermentioned report is
based on marketing audits and different types of strategy related with marketing, competitive
advantages of firms, market performances data, STP and SMART goals and recommendation of
market strategy by analysing marketing mix.
PART 1
Situational Analysis
Reebok is an international brand and they are dealing in sports foot wares and there
services are rendered to people all around the globe. This product have expanded their product
line by involving sports items which include dress, watches, caps and many other goods. The
firm was successful in achieving competitive advantage by developing quality goods which are
different from their revelry. It has now merged their business at international areas in order to
offer to them products and increase their profit ratios. The PESET Analysis of firms are
described below as:
Political Factors: It is related with plans and policies which are framed by government
and they are affecting firms operations to a great extent. There were many changes done in order
to expand business outside the domestic boundaries (Baker, 2014). Reebok is focusing on
monitoring favourable conditions and then they are manufacturing there products in that
particular location. They are mostly selling their goods in UK, China and India as most of the
population at this place is buying goods. In every country government are developing plans in
order to develop effective regulatory system and provide employment to large group of people in
economy.
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Economic Factors: It has gained strong position by selling branded footwear all around
the globe. They are manufacturing keeping in mind income factors of person. Thus they are
products both high and medium range goods. This factors helps them to achieve strong positions
and earn large amount of profits by developing new and innovative ideas by which products can
be developed in order to become popular among all public (Ferrell and Hartline, 2012). The main
focus of selected firms are on the lifestyle of persons and they are developing goods according to
needs and wants of their potential customers. They have achieved higher GDP ratios and there
inflation rates are constantly decreasing.
Social Factors: The people of different regions are participating in various sports
activities thus firms had adopted plans in order to encourage customers to buy their goods. All
individuals wants to buy those foot-wares which gives them comfort while they are playing
sports thus achieving growth and development in their ventures. The brands have promoted their
products by making tie ups with different school, colleges and sport academy and if students
purchase their goods then they are giving them discounts and offers this helps them to easily
create awareness about their goods (Berthon and et. al., 2012).
Technological Factors: As there is innovation in technological now people are buying
products online thus firm shave created their websites where they are displaying all range of
customer foot-wares for selling them to their buyers. If there is any new modification in foot-
wares then they are displayed as new arrivals. There online marketing of goods have helped them
to achieve higher growth in their business as persons are rapidly buying their goods.
Environmental Factors: Reebok have made huge efforts which are very much consistent
and they are not harming environmental factors. The firms are constantly focusing on achieving
safe and healthy environment of factory by applying rules and policies which are useful in
governing all factors which are linked with firms. The selected firms are following rule and
regulations which are linked with protection of environment while performing business
activities.
Legal Factors: Selected firms are adopting legal aspects while executing their business
operations. They are paying all taxes which are applicable on them while they are executing their
operations at international levels. They are following different plans and policies which are
useful for them in order to ensure quality and safety aspects of goods. Tax rates are different in
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every nation thus they have to pay them according. All there goods are user friendly this helps
them to gain competitive advantages at market areas.
SWOT Analysis
Strengths, Weakness, opportunities and threats of Reebok are evaluated under as:
STRENGTH
 It is the leading brand in foot wares manufacturing and they aimed at providing comfort
to people.
 It is useful in achieving competitive advantages by differentiation their goods from other
rivalries.
 Innovation in technological is helpful in order to make good designing shoes.
 They are performing research and development acts in order to analyse preferences of
customers in order to produce goods accordingly.
 There foot-wares are available in all ranges and they are making both stylish and
comfortable shoes.
 They have the capacity to enter into new markets and achieve higher profitability ratios.
 They are focusing on adopting those methods which are helpful in gaining attention of
large group of customers (Fifield, 2012).
 There are acquiring in order to make firms achieve higher profitability.
 They are helpful in taking appropriate decisions as they are involving all their employees
in decision making process.
 They have constantly showed increase in their revenues and profitability factors.
WEAKNESS
 They have not achieved success in adopting good positions at apparel industries.
 They have spread their business operations in different segments thus they are not able to
handle all these operations at similar time this results in facing losses for them in their
long term ventures.
 The have not gained sufficient market shares as they are not able to position their goods
on higher scales in economy.
 They are facing potential risk from their overseas operations.
 The firms non branded foot wares is able to achieve higher competition for itself in
economy.
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OPPORTUNITIES
 They have covered large market areas thus there demand factor is constantly increasing.
 If there are supplying their goods at overseas then it helps in cutting down cost of firms
on labour market and achieve higher profit margins by distributing their goods.
 They are having unknown fads and if they are acting quickly then it results in
achievement of higher profit rates (Sousa and Filipe Lages, 2011).
 The new technological aspects and development of innovative process are useful in
achieving higher market shares and profits for firms.
 There wide network of distribution channel are helpful in achievement of higher
economies of profitability in future scales.
THREATS
 The industry operations are mostly controlled by fads and they are not predictable.
 All there products are innovative and they are able to achieve higher competition.
 They face high competition in casual markets and all there goods are fashionable and
comfortable (Kirtiş and Karahan, 2011).
 They can face risk from changes in fashion and trends at market places in relation to
producing foot wares and other items.
 There product lines are facing tough competition from other markets.
 Reebok was successful in spreading their operations at national and international areas
thus they have achieved higher profitability ratios.
Competitive Advantage
The firms are able to achieve high competitive advantages by making quality products
which provide comfort to people in various sports activities. They are designing fashionable
products but also focusing on quality aspects in order to gaining sustainable market position. The
y are selling foot-wares of all ranges thus they are applying different strategy from their
competitor in order to gain competitive advantage (Kumar and et. al., 2013). Plans and strategies
are useful in order to gain
high competitive gains.
Marketing Strategy
The current marketing strategy which is used by Reebok is Segmentation as it is helpful
in distributing their good through different channels so that customers can easily purchase them.
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This process is useful in diving the total market areas according to needs and wants of their
potential customers (Morgan, Katsikeas and Vorhies, 2012.).
PART 2
Segmentation, targeting and positioning
The STP model of marketing is newer concept to the modern marketing strategies. This
approach is more significant as compared to the traditional methods like SWOT and TOWS
analysis of any of the company function and operations. The term STP can be elaborated as the
Segmentation, targetting and positioning of brand. This leads to development of newer and
efficient plan of marketing mix by defining the segmented group for the positioning of barn
image in target market (Han and et. al., 2012). Reebok a footwear subsidiary is engaged in
strengthening their approaches towards the segmentation of their customers as per their different
needs by providing different sub brand to accomplish their needs and wants effectively and
represent the company with good brand image in marketplace among other competitors in
footwear industry. The Segmentation approach of STP models helps the Reebok to defined their
target market . This approach helps in analysing the neds of their most profitable target
customers. This brings higher efficiency in process. Reebok has been introduced with many sub
brands in marketplace which targets different segments of the consumers of brand products in
market. Like for instance the different sub brand of Reebok are Reebok Ventilator, Rebook
Nano, Reebok Princess, Reebok Freestyle, Reebok Classic etc.
Segmentation: The segmentation can be defined as the dividing or categorising the
different group of people with shared goals, needs, interest or values. The people who are having
some kind of need and wants will responds to same type to the same kind of buying behaviour.
Companies are taking advantage of this particular behaviour of customers to segments their
customer base on the basis of age, demography, psychology, stage of life cycle, sex to deliver
efficient services and products to the customer as per the requirements of their needs and wants.
Reebok is targeting female segment of customer with the sub brand naming Reebok Princess
which are athletic casual shoes developed for women fashion (Huang, 2015). The style of these
shoes are as per the interests and fashion style of girls in marketplace. While the Reebok nano is
launched in 2011 targeting the people are wanting faster movement and strength in their walking
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or running etc. These shoes are cross fit shoes targeting the segment of weightlifter, Short
distance runners etc.
Targeting: This is an next step to the STP model of marketing strategies of any business
firm. This can be described as the Selection of most potential group of customers from the
categorised segments of consumer of brand by the higher management of firm in order to make
higher profit. The company select the particular group of categorised people which seems to be
an profitable group for the firm sales and can become potential customers base. The Reebok is
targeting different customer base like Reebok classic shoes are designed for the person which are
making purchases by more focusing on lifestyles. While the Reebok freestyle are the athletic
range of shoes which are targeting the youngster like college students, free runner etc.
Positioning: While positioning of brand is followed up after the above mentioned steps
segmentation and targeting in the STP models (Liu and Wu, 2013). This particular stage can be
described as development of an positive perception in the mind of their segmented and targeted
customer base. This approach helps in attracting more customers towards brand products and
converting them into loyal consumers of business products. Reebok is positioning its brand
image in front of the targeted audiences an athletic shoes which providing an strength to their
walking and running. They are reflecting the brand image and value in marketplace as free
runner shoes with more comfort and as per the fashion requirements of youth.
Smart Objectives and Goals
This is an newer concept of defining the targets and goals of an firm which helps in
attaining the all the profit making objectives of firm. This is followed by the company by
implementing the approach given by Peter Ducker known as managements by objectives. This
particular concept of Smart objectives can be defined with helps of this particular approaches of
accomplishing all management gaols as per their objectives (Ebitu, Mbum and Okon, 2012). In
this approach the higher management are defining various objectives in order to increase the
profitability of firm. The Reebok is developing their objectives following the model of Smart
goals which helps in developing the objectives that are attainable and realistic in nature and can
be achieved in defined time period constraints. The Smart objectives described by the Reebok
company in order to accomplish their profit making targets in marketplace are defined as
follows:
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S- Specific: The goals of an company should be specific on nature. This should be
defined with an value of an certain content. The goals and objectives achieved by the Reebok
through their marketing strategies should be defined and specific in nature. These objectives and
targets of Reebok should be circumstantial in nature that the can helps the organisation in dealing
with some specific circumstances in working environment of firm. Like for an example the
Reebok is aiming to enhance awarenesses of their sub brand among large customer base in order
to increase their market share, sales ans well as ultimately profitability of firm.
M- Measurable: The goals defined by the higher management of an organisation by
following management by objectives approach in their working environment should be
measurable in nature. This aspects of SMART goals of an organisation can be defined as the
objectives which are to be attained by an business firm should be quantified in nature (DU and
ZHANG, 2014). These targets of an organisation should have some certain numerical values that
are to be achieved. Reebok is targeting to spread awareness of their sub brand products and
aiming to reach the targets of 8 billion dollars sales from now which is calculated as 3.6 billion
dollars.
A- Attainable: The goals defined by the top level management people and higher
executives should be achievable, attainable in nature. The goals defined by the firm should not
be impossible to achieve in the marketplace. Like for example an company is aiming to sale the
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Illustration 1: SMART GOALS
Source 1: SETTING SMART GOALS. 2015

plots on moon may leads to decline of their brand vale in marketplace well as face fall in their
profit. The company should come up with the targets which are attainable in competitive
marketplace. Like for instance the Reebok is aiming to increase their profitability by making
efficient strategy to targets the customer base as per the competence and competitiveness
advantage of their sub brands.
R- Realistic: The targets if the an organisation acting responsibly in competitive market
should be realistic in nature. These gaols and objectives of an business entity should not be
imaginary. The goals of firm should have capability to be achieved in practical environmental
and should have practical implementation (Kim and et. al., 2015). Like of instance an scientist is
aiming to develop such a technology which convert the whole mass into energy and reform it
again into mass. This is an imaginary concept till now. So, the Reebok should also take care of
this particular aspect of SMART objectives while defining their goals that the targets defined by
the firm should be realistic and practical in nature like for example the Reebok is aiming to
increase their market share by developing profitable marketing strategies which are having
realistic view in practical world.
T- Time Based: The defined goals and objectives of an firm should be time based in
nature. Time is an most important aspect for success of an business plan in competitive market.
Time is an most valuable asset for any individual or business organisation in this world. So,
every target and objectives defined by the higher management should be defined within the
constraints of limited time period. Like for instance the Reebok is targeting to increase the sales
up-to 6 billion dollars in next 4 years. This Reebok will act accordingly to targets of increasing
their sales by promoting their sub brand among large customer base to achieve the SMART gaols
within defined limits of time period (Kim, 2014).
Marketing mix strategies
Marketing strategies can be defined as the plan of the organisation to commercialise their
services or products in the business environment. The various strategic plans helps in
accomplishing all the goals of an organisation within defined constraints of quality and time
period. The companies like Reebok are continuously engaged in developing various strategies to
differentiate their market base through delivering the newer services and products by
development of sub brands as pre the requirements of targeting customer to develop an good
brand image and value in marketplace.
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Marketing mix can be defined as the various attributes of the marketing process which
helps in reaching to the potential targeted audiences by the company. These attributes can be
described as 7P's of marketing mix. These P's of marketing set helps in achieving the targets of
Reebok by developing action plan by higher management and sales managers to achieve the
large numbers of market share as well as spread more awareness bout the sub brand of company.
The 7 P's of marketing mix developed by Reebok in order to accomplish all the SMART goals of
STP model are defined below.
Product: The product of an organisation is part of marketing mix. This is an most
important aspect or asset of an organisation which helps in creates the reason to make purchase
for consumer with the company. the quality of the products should be with the defined standard
in order to develop good brand image in marketplace and provide them satisfactory services.
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Price: The Reebok company is highly focussed about this particular attribute of
marketing mix while acting in commercial market. As some of the customers are price sensitive.
While some of the consumers are quality sensitive. In order to deal with process sensitive people
the Reebok is developing various strategies to develop an monopolistic competition in market of
about lowered 70% of prices (Sarker and Begum, 2013).
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Illustration 2: Product of Reebok accomplishing Physical evidence
Source 2: CLASSIC LEATHER RIPPLE LOW BP. 2017

Place: The place selected by the Reebok company in order to carry out marketing
campaign or advertise their product and services play an significant role in achieving in
effectively gaols and objectives of firm effectively in such a highly competitive marketplace.
Reebok is using Football grounds, advertisement channels, cricket ground, marathon run etc. to
spread awareness among large numbers of targets customers as per the qualities and
competencies of their sub brand products.
Promotion: The promotional schemes can defined as the representation of the brand in
front of mass public. This is known as promoting the brand services and product among the
potential targets customer base of organisation. The Reebok is promoting the brand shoes as
freestyling fashion shoes and an wide range of athletics shoes with more comfort and style.
Process: The process of an organisation can be defined as the action plan of firm in
accessing the demand of customers, dealing with them and providing them product and services
as per the expectation. The rebook is following an effective process of delivering their products
and services to the customers by giving them quality services, faster responds to the queries etc.
Physical evidence: The physical evidence of Reebok company can be identified through
the infrastructure of stores, brand logo, strips on shoes etc. which provides an proof to their
customers as authenticated products of Reebok to develop an trustworthy relation with
consumers (Jain, Kumar and Dash, 2015).
People: While people of Reebok involves sales executives, working staff which are
trained and motivated and reflect the brand image in their work.
CONCLUSION
In the end of this particular report this can be concluded that marketing strategies having
significant role in accomplishing the goals of Firm. Reebok is developing approach of
management by objectives the company is following STP method to develop the marketing
strategies for growth.
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SETTING SMART GOALS. 2015. [Online]. Available through:
<http://www.j6design.com.au/setting-smart-goals/>. [Accessed on 23rd September
2017].
CLASSIC LEATHER RIPPLE LOW BP. 2017. [Online]. Available through:
<http://www.reebok.com/us/classic-leather-ripple-low-bp/BS8300.html>. [Accessed on
23rd September 2017].
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