Executive summary The report has been based on marketing strategy of Reebok. The aim of this report is to increase sales of company by launching new product line with proper environmental analysis. For environmental analysis report has highlight PESTLE and SWOT analysis. Report had been highlight current performance of Reebok company and comparison of competitive edge by comparing sales of Reebok and Adidas. The second part of report has give introduction of new product which is Ree Life Green Shoes4all with its benefits to customer and company. This has also includes segmentation, targeting and positioning of company as per new product as well as build marketing strategy by applying marketing mix.
Table of Contents Executive summary..........................................................................................................................2 INTRODUCTION...........................................................................................................................4 PART 1............................................................................................................................................4 Environmental analysis...............................................................................................................4 Evaluation of current marketing strategy and performance........................................................6 Analysis of organization competitive advantage and USP.........................................................8 PART 2..........................................................................................................................................10 Product rationale and specification...........................................................................................10 Segmentation, targeting and positioning...................................................................................11 Marketing objectives and goals.................................................................................................12 Appropriate marketing strategy with application of marketing mix.........................................13 CONCLUSION.............................................................................................................................15 REFERENCES..............................................................................................................................16 AComprehensiveAnalysis.2018.Online.Availablethrough: <https://www.mbaskool.com/business-articles/marketing/9995-reeboks-rebranding-a- comprehensive-analysis.html>......................................................................................................16 SWOTanalysisofReebok.2019.Online.Availablethrough: <https://www.marketing91.com/swot-analysis-of-reebok/>.........................................................16
INTRODUCTION Marketing strategy refers to an overall business plan for reaching consumers and turning them into a customer of the products and services to the business provide. This creates more effective marketing plan for company to launch their new product and service at marketplace place in order to attract more customers. The present report is based on “Reebok” which an American footwear and apparel company. The company is deals in different range of footwear products. The report will divide into two parts such as first of report includes environmental analysis by using techniques. This will also evaluate current marketing strategy and performance of company as well as analysis of organization competitive advantage and USP. The second part of report will introduce new product range of company with rationale and specification. This will also provide benefits of new product to company. This will include segmentation, targeting and positioning by recommended marketing objective and goals. At the end of report will include marketing mix of company for giving proper marketing strategy. PART 1 Environmental analysis. Environmental analysis is very important and effective part of the company which is helps to shows what external factors has affect to business from outside. On the other side, this also helps to analysis internal strength and weakness of company and external opportunity and threat (Érus, 2016). For that here is use PESTLE analysis and SWOT analysis model of company in order to increase knowledge of environment. Those are as follows: PESTLE analysis of Reebok company: Political factor: This factor plays a huge role in not only investment decision by the transactional corporation but also by companies such as Reebok company. The role of local governments are highly influential in the policy making process and implement various policy and regulations which are enforce agencies mostly report to local government in their own states regarding various laws which can affect to company and its growth in both negative and positive manner. Economic factor: Economic factor of a country and region have a direct impact on potential attractiveness in the given market (Sadgrove, 2016). This affects by higher inflation rate which is affect to demand of products with Reebok. Inflation rate is increase then price of product is also increased
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and customers are influence. On the other side, if it decreases then price of product is also decreased and customers are more attract. Social factor: This factors like demographic trends, power of structure in society. The changes in customer taste, preference and needs are affect to company in negative manner because through that customers are moved towards other brands. This is not good for company, in that case management need to consider all current trends in their footwear products to satisfied customers. Technological factor: Technology is fast disrupting business models across various industry. The empowerment of supply chain partners is helps to company to bring in more transparency and make supply chain more flexible (Schmid and et.al., 2018). With the help of this company is able to provide products and services on time at stores. On the other side, if company is not follows the proper supply chain management then it affects to business because through that products are not reach to customers. Environmental factor: This factor is fast gaining traction not only among consumers but also regulate more regulations and policy-maker. Influence of climate change is impact to Reebok company and its business model and supply chain. Like their supply chain is not flexible then that can lead bottleneck when shipments from one part of the world delays because of sudden climate changes which is not good for company. Legal factor: The legal factors often govern conditions enter into the market, laws to operates in the market and procedure to resolve any dispute with other stakeholder. The health and safety law is affect to business when their employee is injured at the time of work (PESTLE analysis,2016). In that management need to provide proper compensation to employee against of their injuries. If company is not provide that compensation then its is affect to business in negative manner by creating negative image in employee and customer mind. SWOT analysis: Strength: Reebok have a clear segment to offers their product and services to customers. That is the main strength of company. This helps to produce products as per segment.
The company added good quality of features and design in their product which give positive impact on customers. High customer engagement for that company is use proper social media app to reach out customers in a boost top improve customer engagement. Weakness: Reebok has the biggest weakness which is poor awareness which is create issues for knowing needs and wants of customer (SWOT analysis of Reebok,2019). Thesportswearsegmentissocompetitivewhichbrandaretryingtheirbestto commercialize their interest. Opportunities: Reebok can look at the new markets by moving new categories like ethic designs, women and kids shoes. Niche areas like fitness because today there are various niche market categories like combat, dancing, training and others shoes. Threat: The higher competition at the market place is the higher threat of Reebok. Their competitors are Nike, Adidas and Puma (Neupane, 2015). Reebok also face serious threats from the cheapest imitation which are sold at throwaway prices. Both the theories are reflects proper environmental analysis either internal or external. Through that company gain various knowledge about products and services opportunities and threats. Evaluation of current marketing strategy and performance. The marketing strategy and performance analysis is another important and effective strategy which is helps to make proper and effective growth of company by knowing its market growth, sales trends and profitability (Sharma and Sehgal, 2015). This helps to know about the current performance of Reebok at market place. Those are as follows: The marketing strategy creates a main advantage for company to understood need and wants of customers in very well manner. Sales trends of Reebok:
Sales trends are helps to sales products and services at marketplace by using proper and effective trends. The company follows various sales trends which are help to Reebok to attract more customers towards company for increase their sales and profits margin.Advertising and campaignis the best and effective sales trend which is helps to update customers about products line. Through that customers have a proper details about product and services.Sales promotionis another sales trend of Reebok. This help to increase engagement with customers by using social media apps and other webpages (Ranjan, 2016). In that company is put details about product on social media because nowadays customers are more update on social media platform. Events and sponsorshipis to cater to its major market sport playing people. Reebok is sponsor national and international player for more advantage. This helps to create good and effective opportunities for company. Market growth: Reebok was founded in 1890 and it grew to be one of the world largest sports goods manufacturing company. From the foundation date to till data company is grow continuously in the market place by offering different range and categories of footwear. This helps to attract more customers as per the growth of company. The above graph is stated that, the company is continue decreases in the market place. In the 2012 brand value of company is 1.2 billion but in the 2017 is 0.8 billion which is decrease. This Illustration1: Market growth (Source:A Comprehensive Analysis,2018)
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has not good for company and its health. This creates more impacts on the business and its performance. The sales of company is also decrease as compare with 2006 year. This creates more negative impact on business. As per the above graph, sales of Reebok in 2006 was 2000 million but in 2013 its decreases as compare with past years sales. This is not good and best for Reebok. Profitability of Reebok company: The sales and value of Reebok company is decreases then profit of company is also decreases at market place. This creates negative impact on business and for its growth factors. The profit margin is lower than compare to another brand. That is good for company health. The logo of company is also changed as per the segment which is comprises the fitness seekers they have left behind pro. Analysis of organization competitive advantage and USP. The competitive analysis of company is important which is help to know accurate market performance of Reebok as compare with their competitors. That is helps to make strategies for company to launch new products and for increase sales of company in an effective manner. The main competitors of Reebok is Adidas, Nike, puma and others. They are the main competitors of company and their sales and brand values also high (Tasnim, 2018). The critical comparison of competitive edge for Reebok are as follows: Reebok company is launched new product line in 2008 which easy tone shoes worldwide. Through that, promotion and advertisement, claimed that shoes strengthened. After, some time in the market, before long customers are realized that the shoes failed to show results. The net sales of Reebok company is decreases as compare with another companies. Here is select Adidas V/S Reebok.
As per the above graph, sales of Reebok company was continuous decrease as compare with Adidas. As per that sales of Adidas is continuously increased at market place. The companies are more growth at market place and affect to Reebok company and its growth factor. Here is also analysis of both brand for comparing in proper manner which are as follows: BasisReebokAdidas Product lineThecompanyhavegreat product line which is fulfilled everyagegroupsneedsand wants relating to product and services(Väyrynen,2019). Thecompanyisproduce Shoes,Sunglasses,Watch, track suit, small bags and T- Shirts. The company is also deals in Jerseys, shorts, shoes, gloves andothers.Throughthat customers are highly attracted towards business for its growth factor. Sales strategyThecompanyhavevarious sales trends those are helpful forgivinginformationabout producttocustomer.Sales trendsofcompanyaresales The company is sales product throughonlineandoffline stores.Throughthehelpof online shopping customers are highlyabletoordertheir
promotion, advertisement and events. product in shorter time. Those are the effective and valuable analysis for company to manage effective sales. The competitive analysis is help to company in order to know about their competitors strategy and effective role. With the help of this, company able to analysis their performance at market place with new growth factors. PART 2 Product rationale and specification. The new product range for company to use Ree Life Green Shoes4all. This is effective and valuable for growth of company in order to obtain performing shoes with a lower price. This helps to achieve a market for green products by promoting the green added values of the innovation rules methodology (Sadgrove, 2016). This helps to create possible growth for company in an effective manner by creating green shoes for all. Now days people are think about a green product for sustainability of industry and environment by protracting environment. Rationale: Rationale for select green shoes of Reebok company to protect environment and sustain market growth of company. This helps to protect environment in an effective manner by using proper effectiveness. This helps to demonstrate new recycling routes in company. This product is help to attract more customers because this product line and segment is quite new and attractive. The rationale to select this product is to make proper effective sustainability and replicability of the project to other sector. This product line is also helps to increase profit margin of company as well as sales. This is effective and valuable for company to measures effectively. Features of new product i.e. Ree Life Green Shoes4all: The some features of new product which is launches by Reebok company which is help to protect environment and increase sales of company because present days customers are more environmental friendly. This product made through natural product and raw material. This help to improve their ability to withstand heat waves and extreme rainfall. This footwear is made by using natural raw materials.
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The woman are like to select heels for wear footwear. In that, company change shape of shoes through that woman are easily worn those with high heel. This is comfortable for woman. The top quality of lasting process for comes relative newcomers. This made by reducing the carbon footprint (Goodman and Hawkins, 2015). Environmental footprint category rules methodology. Benefits with new product: First, this helps to protect environment in effective manner. This help to attract customers about Green product and services. This helps to increase level of sustainability and innovation in shoes production and recycling products. Increase consumption of goods and services. Increase profit margin of company as well as sales. Creates positive impact and image at marketplace and in customers by manufacturing and launching new product line. Those are the benefits for company with new product. This creates company to gain more benefits at market place for collecting proper and effective uses of growth. Segmentation, targeting and positioning. The Reebok is an American apparel and footwear company. The company product distributes ranges products for running, fitness, footwear and clothing (Armstrong and et.al., 2018). Reebok is faces various issues and problems in marketplace by decreasing their sales of product and services which is analysed by environmental analysis and competitive analysis of company. As per that, here is introduced new product for company in order to increase their sales i.e. Ree Life Green Shoes4all product. This product is best and good for company to increase sales by sustain environment as well as protect that in effective manner. For the new this session find and discussed segmentation, targeting and positioning for company. Those are discussed below by using STP model in effective manner. Segmentation: Segment is helps to produce product and services for specific class of people. The segment of company is demographic segment. In that company is produce as per age of people as well as target to those people and customers who wanted to be fit and adventurous as well as
environmental friendly. It offers a range of products on footwear like fitness equipment and apparels for men, women also for kids. The range of product are depends on age group of people and customers. Targeting: This helps to focusing on customers have been the important part of Reebok designs of the products and also its marketing strategy (Longbottom and Banwait, 2016). The urban customers are upper middle class are the target market. The company is target to youth and old people who love environment more and wanted to fit by using quality of shoes products and services. The Reebok is introduced Ree Life Green Shoes4all, its become a more exclusive provider of apparel footwear and accessories for the brand products and services. Positioning: The company have a unique position in market place and it understands that customers are unique and has the different requirements with company. The company is celebrates their position and quality of people authenticity and individuality (Érus, 2016). With the help of new product which is Ree Life Green Shoes4all is also creates a positive position in market with uniqueness because youth thinks company try to protect environment in effective manner. With the help of this, company is able to produce product and services at marketplace as per segment and target of company. This creates importance and benefits for company by launching new product line in new segmentation and targeting customers. Marketing objectives and goals. The product which is introduced by Reebok is Ree Life Green Shoes4all. The aim of this product to implement the footwear environmental footprint methodology and to develop efficient eco-design, recycling and manufacturing solutions. Reebok has great mission which is always challenges and lead through creativity (Goodman and Hawkins, 2015). On the other side, vision of company is to fulfil the need of potential customers by offering new products range which is Ree Life Green Shoes4all. This helps to obtain performing shoes with lower price of product and services. Objectives and goals of company as per new product and services are as follows: To increase 20% sales of product till the end of 2020. To increase 10% investment on research and development department within the 6 months.
To implement a Footwear environmental footprints with rules methodology in to be applied on different style of footwear. To promote Eco-design mentality and footwear. To increase the 30% value of brand at market places. To increase 20% market share at market place within the 8 months. Appropriate marketing strategy with application of marketing mix. Marketing strategy is most important and effective part of the company which is helps to management for manage their strategies at market place. This helps to make proper and effective marketing plan as well as help to achieve objectives of company in effective manner by considering proper requirement of market. For that, here is build appropriate marketing strategy with the application of marketing mix which are as follows: Product: The product is more important and effective marketing strategy of company which is helps to attract more customers towards business in order to increase sales and profits margin of Reebok company. The company is deals with the production and later distribution of products which are related to sports and fitness (Longbottom and Banwait, 2016). This creates more effectiveness for business by getting more profit. The products of company are Jackets, Watch, Bags, Shoes. In the shoes have various categories moving air Reetone shoes, training shoes, running shoes and others. Place: In order to establish its brand image and brand presences in the global market, company is sales different types products and services at various place. The company uses online and offline platform. That is helpful for managing effective and valuable growth for company. With the help of this company is able to target each customers segment through online stores. On the other side, physical store is helps to see the product by customers. This provides a visibility to their customers. Price: The pricing strategy is important elements of company which is help to attract more customers at market place. The pricing strategy is also helped to customers for make purchasing decision for product (Neupane, 2015). The company should use penetrating pricing policy at the start. In this price of product is lower in starting and it will increase as per market demand. But in
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case of launching new product at market place company should use skimming pricing strategy. In this price of product is higher for their superior products. As per that customers are able to understand quality of product and services. Promotion: A promotion is the best strategy which is help to customer for familiarize with product and services with vision and goals of company. The promotional strategy helpful for giving effective impact on customers mind by using proper promotional strategy (Armstrong and et.al., 2018). For that company using advertisement channel, posting details of product and services on social media, YouTube channel and building strong relations with customers are highly helps to company. People: People are important aspects of company they are gives hard contribution in company for achieve goals and objectives of company. For that, company have to hire employees for produce Ree Life Green Shoes4all products. As well as provide training to marketing employees in order to give knowledge to customers in effective manner. The people of company are highly able to handle any problem of company. Process: The company uses online stores to sales its products a service at market place. In that company have to follow proper process for taking order of product with customers. In that employees need to check proper details about client requirement like size, colour, product and other (Sharma and Sehgal, 2015). This helps to deliver product on time by following proper guideline of customers. Physical evidence: The physical evidence is main aspects which gives positive impacts on customer in effective manner by using proper and effective requirement. The best physical evidence which is given by Reebok that is Green Shoes4all. This marketing strategy is help to company Reebok to sustain their growth at market place by selling new product at marketplace. This will also help to increase sales and profit margin of company in effective manner.
CONCLUSION From the above study it had been concluded that the marketing strategy has very important and effective part of company which has helped to achieve goals and objectives of company. The report had covered an environmental analysis of company by using PESTLE and SWOT model. That reflected external and internal factors had affected to business. Here has also analysed current performance of company like market growth, sales and profitability. This has included that the comparison of competitive edge of company with their competitors. The second part of report has introduced new product which Ree Life Green Shoes4all in order to increase sales and profit margin as well as included benefits with that. This has also included that the STP model for analysing segmentation, targeting and positioning of company as per new product. At the end of report, highlight the marketing strategy by using marketing mix.
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