Marketing Strategy for Reebok Zigtech 3.0 Running Shoes

This report analyzes the internal and external situations of Reebok, focusing on the marketing of their Zigtech 3.0 running shoes. It utilizes PESTLE and SWOT analysis to assess the company's current position and competitive advantage. The report then delves into segmentation, targeting, and positioning (STP) strategies, recommending objectives and goals for the product launch. Finally, it outlines a comprehensive marketing mix strategy, applying the 4Ps (Product, Price, Promotion, and Place) to effectively market the Reebok Zigtech 3.0 running shoes.

Marketing Strategy

Executive Summary
In this assignment both internal and external situations are analyzed with the help of PESTLE
and SWOT analysis. The product that was marketed was Reebok Zigtech 3.0 running shoes. The
strategies were developed for marketing of this product and the strategies involved was
segmentation of market based on geographical factors, demographic factors and psychographic
factors that was influencing the marketing of this product. Audience targeting was made on the
basis of age, income, gender and place.

Table of Contents
Part 1................................................................................................................................................5
1. Situational Analysis – (PESTLE) (SWOT).................................................................................5
1.1 PESTLE analysis.......................................................................................................................5
1.2 SWOT analysis..........................................................................................................................7
2. Competitive advantage (USP).....................................................................................................8
3. Evaluation of current marketing strategy....................................................................................9
Part 2: Reebok Zigtech 3.0 Running Shoes (Selected brand)........................................................11
1. Segmentation Targeting & Positioning (STP)...........................................................................11
2. Recommended objectives and goals (SMART)........................................................................14
3. Recommend marketing strategies, based on the application of the marketing mix to your
chosen brand..................................................................................................................................14
Conclusion.....................................................................................................................................16
Reference List................................................................................................................................18

Introduction
The purpose of this assignment is to analyze, evaluate and prepare a report for renowned brand
Reebok involved in the marketing of sporting footwear. The first part of the assignment consists
of details regarding Reebok’s current position corresponding to the other organizations of the
industry and their marketing strategy. This part also shows the evaluation of Reebok’s aggressive
edge over the other organizations in the industry and marketplace. It reflects the effectiveness of
Reebok and advantages of Reebok in the competitive market over the other brands in reference
to sales, economic growth in the market and the profitability of the organization etc. The second
part of the assignment includes Segmentation Targeting and Positioning of the products to be
launched by the company in the marketplace. It would be focused on the marketing strategies of
the company required to accomplish the objectives and goals of the company in order to expand
the brand awareness among the consumers expand the share in the market and the economic
growth and profitability of the company including the sales. Reebok is a worldwide organization
founded by Joe and Jeff Foster in the year 1895 in Bolton, England, UK. It is a athletic footwear
and apparel company serving globally. The company established in 1958 and the headquarters
are located in Canton, Massachusetts, US.

Part 1
1. Situational Analysis – (PESTLE) (SWOT)
1.1 PESTLE analysis
Factors Analysis
Political It is the surrounding where the product is to be
launched and marketed. The Political components
that affect and have impact on the marketing
strategies are taxation proposed action, stability of
the government and sudden changes put into action
by the government and protection of the
consumers. Due to the stability of the government
it would have positive impact on the company.
Economic It reflects the economic factors that are going to
affect and have impact on the company. Economic
factors consist of inflation rate, rates of interest,
rates of the foreign exchange and the structure and
pattern of economic growth. Inflation rate is the
rise in the products price which shows the demand
of the product, too much rise in inflation affects the
economy badly as it makes the value of money less.
Recently, the economic growth of UK has slowed
down and not has been up to the mark which will
have a negative impact on the economic growth of
the brand as well.

Social It reflects the social environment in which the
brand or the company is going to market and
launch the products. Measuring the determinants
such as the trends followed in the society, statistical
data, analyzing the density of the population etc.
The demand of sneakers, tracksuits, and t shirts for
jogging has increased over the time. Currently,
Reebok focuses on serving the products that are in
trend which will have a positive impact on the
company.
Technology Technology factors appropriate to the creativity and
innovations in technology which could affect the
operations carried out by the industry. UK provides
and offers tremendous environment for companies
to market their product online and make their brand
promotion globally using technology. Thus,
Reebok has a great advantage endorsing their
products using technology.
Legal Legal factors consist of the rules and regulation that
are to be followed by the company in order to run
their business in that particular city and place
without much of a problem. There are also some of
the compliance and certain outrights that the
company maintains while setting up and running
the business. There are six principles that need to
be followed by the company in order to establish
their business in UK are proportionality,
assessment of the risk, effective communication,
top level management, adequate diligence and
observing and reviewing(Muir et al., 2016).
Environment Environmental factors consist of the components
that influence the business by the environment
surrounding the company. According to the
research conducted, the EU environmental policies

being on balance have shown positive responses for
business in UK which gives Reebok an advantage
to establish their business in UK.
1.2 SWOT analysis
Strengths Weaknesses
Reebok is one of the biggest sellers of athletic
apparel and footwear globally.
Reebok efficiently develops the exemplary
collaboration of fitness and technology in their
products every year.
Reebok manufactures their product in both
premium/high range and average/mid range.
The Reebok merit stock targets the consumers who
fall into the low income group categorizing and
classifying their products for each and every class
belonging to the society.
Even many movie celebrities and sports stars have
promoted and endorsed the brand throughout the
world (Kotler, 2015).
The operation carried out by Reebok is through
network channels which consist of departmental
stores, sporting kits, specific product retailers,
brand owned shops, licenses to have a proper reach.
Reebok being an international brand, it sponsors
sporting teams, players, clubs from all categories of
sports such as football, basketball, car racing,
motor racing, cricket etc.
Brilliant advertising of products and branding
makes Reebok a famous brand globally.
In more than 80 countries Reebok has its business
alongside Adidas.
Reebok has to face hard and tough problematic
situations due to duplicate and fake sales of
product.
Reebok being a popular brand internationally
means any kind of controversies taking place have
a great affect on the brand image and brand value
considerably.

Opportunities Threats
Reebok should look to expand its range of products
much more in the section of kids.
Reebok must also focus on the lifestyle section
which can be expanded by manufacturing different
kind of new and unique products.
Reebok should look for more sports academy and
schools engaged with sporting facilities in order to
tie up and increase their business.
Reebok can target interest growing in the field of
sports of emerging and upcoming economies by
tapping into them.
Big international brands like Nike, Puma and Fila
etc. coming into competition puts limitation to
Reebok’s share in the market.
Changing and fluctuation of international
currencies is a big threat for Reebok as it could
mean huge loss to the company.
Fake and duplicate imitations can lead to harm the
brand image and its value among the consumers.
Collaboration with Adidas leads to affect Reebok’s
sales.
2. Competitive advantage (USP)
Reebok is renowned for its creative and congenial footwear and athletic apparel. Reebok provides its
customers with unique and comfortable products which mainly include footwear and sports apparel.
Reebok efficiently develops the exemplary collaboration of fitness and technology in their products
every year. Reebok manufactures their product in both premium/high range and average/mid range
so that it is affordable by every category of people in the city and departmental stores, sporting kits
store and specific product retailers. The Reebok merit store aims for the consumers who fall into the
low income group. Thus, categorizing and classifying their products for each and every class
belonging to the city(Barney, 2014). Whereas brand like, Nike focuses on providing professional
sports star and athletes with high quality products across worldwide. It is very tough to find midrange
products of Nike as the prices of Nike are much higher compared to that of Reebok, thus giving
Reebok the competitive edge over Nike in the marketplace. Brand like Fila also launches their
product at a very high price providing high quality products. Fila have limited range of products as
compared to Reebok which gives Reebok competitive edge over Fila in the market place. Thus from
the above evaluation it could be considered that Reebok’s Unique Selling Proposition (USP) is far
better than its competitors in the market place giving them the competitive edge over globally
popular brands like Nike and Puma etc.

3. Evaluation of current marketing strategy
Reebok being an international brand follow mainly the 4P strategy to run their business
successfully around the globe.
Elements Strategies
Product In the product strategies, Reebok is placing the
product to those who are mainly using the sports
product like shoes, jerseys, and other products
like sports accessories. The main motive of this
product strategy is to fulfill the needs of the
customers. The product strategy is used to serve a
better quality of product to the customers based
on their needs. Here the strategy is made to
analyze the quality of the product based on the
feedbacks of the customer who have already
availed the service form them. The product
quality is enhanced by using the strategy to
generate more customers and also to retain the
old customers.
Place An essential factor is placing the product
according to the needs of the customers. The
placement of product is as important as the
production of the products. The place strategy is
used to analyze the market availability of the
product in the market. This strategy includes the
placement of product in the market in such a way
that the customers can easily avail that product.
The place strategy is used to create hype among
the customer to make them avail that product.
Price Pricing is the most essential factor that can affect
the sales of the product. With the help of the
price strategy the company categorizes the
customers based on their ability to pay for a

product. It is very much necessary to understand
the income level of the customers and also to
categorize the product and to serve them
accordingly. The price strategy is also used to
understand the pricing of the competitors in the
existing market and what measures can be used to
minimize the similar product price rates offered
by the competitors to increase the sales
percentage of the company.
Promotion Promotion is a primary factor that can actually
influence the customers to buy the product. Here
the promotion strategy involves choosing of the
appropriate opinion leader for their
advertisement. The promotion strategy also
includes vouchers, discounts, coupons and other
facilities by which they can make customer’s
satisfaction. The promotion strategy involves the
bridge making relation between the customers
and the brand. Promotion also helps in branding
of the company in the mind of the customers.
With the help 4P’s strategy, Reebok have grown with a larger percentage over the last ten years.
The product strategy has enhanced the quality of the product than before, creating an urge of the
products within the customers. The place strategy has helped the company by providing the best
possible platform for their products which made Reebok to reach the customers more easily. The
price strategy has increased the number of customer as they can avail the product with their
choice of price range, ranging from low to high, which on the other hand have increased the
market perspective and the sales trend. Lastly the promotion strategy includes the right choice of
the opinion leader based on the acceptability of that opinion leader in the mind of the customer
thus enhancing in targeting the audiences and increasing sales.

Part 2: Reebok Zigtech 3.0 Running Shoes (Selected brand)
1. Segmentation Targeting & Positioning (STP)
Segmentation
Demographic segmentation strategy
Demographic segmentation strategy is the strategy used for market segmentation based on age,
income, religion, race, gender, size of the family, ethnicity. Demographic segmentation can be
divided into several and various markets to provide an organization with the opportunity to target
its customers and consumers more effectively and accurately. Demographic segmentation helps
an organization to categorize the needs and desires of the consumers. One of the prime
advantages of segmenting the market demographically is that the required information is already
available for the company (Ismail, 2015). Demographic market segmentation on usage of clothes
in Ampara district: cloth marketers point of view.
The company can do the market research to determine where to market the product, whom to
target and how to market the product. Demographic segmentation also gives the company to
retain its customers and their loyalty. The organization spending time to focus on their customers
and their needs and wants makes the consumers to come back again and again to the company or
the organization (Mishra, 2016).
Psychographic segmentation strategy
Psychographic segmentation strategy is the strategy used for the segmentation of market
according to the different kind of values, attitude, lifestyle of the consumers and personality
traits. Psychographic segmentation permits the brand to manufacture and market their products
in a much focused way which will help the company to be precise about the products that they
are going to manufacture based on the segmentation (Weinstein, 2015).
Geographic segmentation strategy
Geographic segmentation strategy is the strategy used for the segmentation of the market based
upon the geography. The company can segment the market geographically by regions, cities,
countries, counties and other international geographic region (George et al., 2018).This strategy

also helps a company in breaking down the market into segments like urban, rural and suburban
areas. In geographic segmentation the segmentation can also be done based on the climate and
the total number of population in every area. It is a very effective way of approach for
international companies having large international and national markets because of wide range of
consumers are located in different locations and have distinguishable needs and characteristics
which can be targeted specifically by the company. It functions well based on population density
of different kind of areas. Consumers present in rural areas have different needs altogether as
compared to the needs and wants of urban and suburban areas or environments (Lessmann et al.,
2018). Even cultural needs and wants differ from each other in these kind of areas. It is really
easy for the companies to break down the market into geographic segments to achieve the
objective (Yener, 2016).
Targeting
Age: The Company will target the consumers aged between 20 to 50 years and manufacture the
products according to the requirements of this particular age group.
Income: The Company will target the consumers who fall into average and high income group.
The earning criteria for the average income group will be varying from £5000 to £15000 and the
earning criteria for the high income group will be ranging from £15000 to £25000 and above
that.
Gender: The Company will target the male group in UK to market the product Reebok Zigtech
3.0 Running Shoes.
Location: The Company will target the cities and the population of UK to endorse and market
the product Reebok Zigtech 3.0 Running Shoes.
Positioning
According to the perceptual map the Company would like to position their products in the
quadrant of high quality product with low pricing of the product. This quadrant reflects the
product and brand positioning to show how Reebok is going to gain the advantage in the market
place compared to other international companies like Nike and Puma etc. Based on the
perceptual map Nike is situated in the quadrant of high quality and high price which tells that

High quality
High Price
Low quality
Low Price
Reebok
Nike
Puma
Nike provides high quality products at high rates whereas, Reebok providing high quality
product at a low and affordable price always giving the competitive edge to Reebok over Nike.
From the perceptual map it have been shown that Puma is situated in the quadrant between low
quality and low price which tells that Puma is providing low quality products at low prices in the
market which ensures that Reebok has upper hand on Puma while positioning products and the
brand in the marketplace. Thus, from analyzing the perceptual map it could be said that Reebok
has developed a great strategy to position the company and its products in the marketplace
following the quadrant between High quality and low price, situating the brand and the products
in such a strategy that will give them competitive edge over other companies like Nike and Puma
(Schlegelmilch, 2016).
Figure 1: Perceptual Map
(Source: Created by Author)
2. Recommended objectives and goals (SMART)
S (Specific) To increase awareness of Reebok Zigtech 3.0 Running Shoes among the target market

To increase the market share of Reebok Zigtech 3.0 Running Shoes
To increase sales growth of Reebok Zigtech 3.0 Running Shoes
M
(Measureable)
To increase awareness of Reebok Zigtech 3.0 Running Shoes among the target market
by 13%.
To increase the market share of Reebok Zigtech 3.0 Running Shoes by 11%.
To increase sales growth of Reebok Zigtech 3.0 Running Shoes by 10%.
A
(Achievable)
To increase awareness of Reebok Zigtech 3.0 Running Shoes among the target market is
achievable by at least 11%.
To increase the market share of Reebok Zigtech 3.0 Running Shoes is achievable by at
least To increase sales growth of Reebok Zigtech 3.0 Running Shoes by 10%.t 9%.
To increase sales growth of Reebok Zigtech 3.0 Running Shoes is achievable by at least
8%.
R (Realistic) To make the objective realistic proper advertisement strategy is to be implemented in
order to achieve the objectives set by the company. The advertisement strategy includes
choosing of the appropriate leader for the opinion of the company’s advertisement. The
advertising strategy includes vouchers, discounts, coupons and other facilities by which
they can make their customer’s satisfied. The advertising strategy involves the bridge
making relation between the customers and the brand. Advertising also helps in
branding of the company in the mind of the customers which helps them achieve their
goals being realistic.
T (Timeliness) It is very important to take the time factor into consideration as because the objectives
and goals set by the company should be very time efficient. The company has to set up
the time limits for all the specific goals which are measurable, achievable and realistic.
3. Recommend marketing strategies, based on the application of the marketing mix to your
chosen brand.
The 4P strategy that Reebok applied to market Reebok Zigtech 3.0 Running Shoes are Product,
Price, Promotion and Place, Reebok have grown with a larger percentage over the last ten years.
The product strategy has enhanced the quality of the product than before, creating an urge of the
products within the customers. The place strategy has helped the company by providing the best
possible platform for their products which made Reebok to reach the customers more easily. The
price strategy has increased the number of customer as they can avail the product with their

choice of price range, ranging from low to high, which on the other hand have increased the
market perspective and the sales trend. Lastly the promotion strategy includes the right choice of
the opinion leader based on the acceptability of that opinion leader in the mind of the customer
thus enhancing in targeting the audiences and increasing sales.
Elements Strategies
Product In the product strategies, Reebok is placing the
product Reebok Zigtech 3.0 Running Shoes to
those who are mainly using the sports product like
shoes, jerseys, and other products like sports
accessories. The main motive of the product
strategy is to fulfill the needs of the customers. The
product strategy is used to serve a better quality of
product to the customers based on their needs. Here
the strategy is made to analyze the quality of the
product based on the feedbacks of the customer
who have already availed the service form them.
The product quality is enhanced by using the
strategy to generate more customers and also to
retain the old customers.
Price Pricing is the most essential factor that can affect
the sales of the product Reebok Zigtech 3.0
Running Shoes, with the help of the pricing
strategy the company categorizes the customers
based on their ability to pay for the product. It is
very much necessary to understand the earning
level of the customers and also to categorize the
product and to serve them accordingly. The pricing
strategy is also used to understand the pricing of
the competitors in the existing market and what
measures can be used to minimize the similar
product price rates offered by the competitors to
increase the sales percentage of the company.
Promotion Promotion is a primary factor that can actually

influence the customers to buy the product Reebok
Zigtech 3.0 Running Shoes. The promotion strategy
involves choosing of the appropriate opinion leader
for their advertisement. The promotion strategy
also includes vouchers, discounts, coupons and
other facilities by which they can make customer’s
satisfaction. The promotion strategy involves the
bridge making relation between the customers and
the brand. Promotion also helps in branding of the
company in the mind of the customers.
Place An essential factor is placing the product Reebok
Zigtech 3.0 Running Shoes according to the needs
of the customers. The placement of product is as
important as the production of the products. The
place strategy is used to analyze the market
availability of the product in the market. This
strategy includes the placement of product in the
market in such a way that the customers can easily
avail that product. The place strategy is used to
create hype among the customer to make them
avail that product.
Conclusion
While concluding it can be said that the company has to do the PESTLE and SWOT analyze in
order to know the various kind of factors that are going to affect the company while setting up
their business and also the company has to do the SWOT analyze in order to get the idea of the
strengths, weaknesses, opportunities and threats the company has to face. Thus in order to build
up a proper and effective strategy the company has to have USP, they are required to evaluate the
current scenario of market, segmentation, targeting and positioning in order to achieve the
objectives and goals set by the company.

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