Marketing Strategy of Reebok: Launching a Smartwatch

This report discusses the marketing strategy of Reebok, focusing on the launch of a new smartwatch. It includes an environmental analysis, evaluation of current marketing strategy, analysis of competitive advantage and USP, and segmentation targeting & positioning.

MKT306 MARKETING STRATEGY

EXECUTIVE SUMMARY
Marketing strategy is long term action course that designed to use allocation of scare of
resources at disposal of company. This present report is based on the marketing strategy of
Reebok company. An entity has been performing in a better manner with sportswear industry in
United Kingdom. USP of this company is to give better quality of shoes for fitness and athletes.
Competitive edge of this organisation lies in initiative taken through this brand in order to stay
aligned with current and emerging trends at marketplace. The macro environmental factors has
been identified which impact on performance level of an organisation. SWOT analysis
determined the threats from rivals and also political adversities in context to BREXIT. This
present report unfold launch of the smartwatch through Reebok company. Cost of this new
smartwatch has been kept and the people of middle class and high class can be afford it.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Environmental Analysis..............................................................................................................1
Evaluation of Current Marketing Strategy / Performance..........................................................4
Analysis of organisation's Competitive Advantage and USP.....................................................5
PART 2............................................................................................................................................5
Product rationale and specification.............................................................................................5
Segmentation Targeting & Positioning (STP)............................................................................6
Recommend marketing objectives and goals..............................................................................7
Identify appropriate marketing strategies, based on application of the marketing mix to chosen
product / brand............................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing strategy is explained as game plan of business for reaching to perspective
customers of services and products which company offers. It is an effective plan that mainly
promote as well as sell service or product. This contains value of an organisation proposition,
data on the target consumers and key brand messaging (Assimakopoulos and et. al., 2017). This
present report is based on the Reebok company. This is an American Footwear and appeal
organisation. This produces and also distributes fitness, Crossfit and running consisting footwear
and clothing. Present report includes two different parts. First part includes environmental
analysis and analysing the present marketing strategy of an organisation. Second part is related to
launching new product through Reebok at marketplace. This consists rationale of product and
marketing strategies on the basis of application of marketing mix of new product.
PART 1
Environmental Analysis
Environmental analysis is explained as strategic tool. This is process of determine all
internal and external components which can impact on performance of business. Analysis entails
assessing threat r opportunity level factors which might be. Under this, internal components
shows weaknesses and strengths of business organisation and on the other hand, external
components indicate opportunities and threats outside business. Reebok is a big brand that has
strong brand image at marketplace (Baker and Saren, 2016). This puts pressure on the
organization to come up with deals that can disrupt at market place and also satisfy the client's
needs and preferences. To overcome this, this corporation's management requires constant
review and assessment of the micro and macro environment. It gives them the ability to
recognise new and evolving opportunities and risks that may impact the company significantly.
With the help of applying the strategic planning methods and business management like SWOT
and PESTLE analysis, Reebok company has been carried out marketing auditing.
PESTLE
It is a framework used to examine as well as monitor macro- environmental factors which
may have profound affect on performance of an organisation. This tool is useful in scanning the
components related to strategic management (Bang, Joshi and Singh, 2016). In this, it is strategic
management tool that mainly used to determine, examine, organise and also monitor the external
1

factors which have impact on company at present and in future. Framework analyse the threats
and opportunities because of Political, environmental, social, technological, Legal and
economical forces in order to inform the planning as well as decision making. The PESTLE
Analysis of Reebok company mention below:
Political factor- Under this, change for life is campaign that launched through
government of United Kingdom in order to promote the people lifestyle. It has enhanced demand
for the sportswear merchandise. Interest of the United Kingdom government in promoting the
healthy lifestyles for the people to growth in sports brand is to be facilitated. In context to this,
there is a need for Reebok company to comply with barriers of global trade and some other
restrictions (Boscagli, 2019).
Economic factor- Reebok is most popular brand ans it has largest sale of footwear and
apparel across world. The strong economic situation of United Kingdom enhance the sale of
shoes and clothings. This firm prepares goods in mid- range and premium segment and this also
categorise its goods for various genders and classes for society. The BREXIT tends to have
negative affect over sportswear industry demands in UK (Cacciolatti and Lee, 2016).
Social factor- In this factor, all countries participate in various sports activities and
introduced policies to motivate them. Young generation takes part in various games and look for
suitable sports shoes and apparels which ca provide convenience at the time of games. Reebok
has made tie- ups with various sports schools and academies across world so they can develop
awareness between people about using their sports goods and also remain fit (Chiu, Liu and Tu,
2016).
Technological factor- The sportswear industry is evolving sector that come up with new
technologies and the innovations that presenting better opportunities to Reebok to gain benefits
of distributive technologies. Sports brand brings some new changes as well as technological
advances in its goods each year so people can search innovation in goods. Reebok provides
online shopping to consumers so that do not require to go at retail store to purchase goods (Choi,
2016).
Legal factor- Reebok needs to follow the various legal aspects at the time of business
activities. There is a requirement to this bran to pay taxes in those countries where it operating
and meet labour wages on the basis of regulations provision. These are more popular because
products of Reebok are user friendly bit some of them may have restriction in specific country so
2

for this they require to understand policies and also neglect potential issues at market place
(Grossberg, 2016).
Environmental factor- Reebok has made consistent and strong efforts to set responsible
workplace standards and reduced environmental impact. This firm has continues aids to attain
healthy and safe factory situations by following different rules and regulations. In context to this,
enhancing concern related to environmental preservation present better opportunities to Reebok
to make the organic material while weaving and colouring the sportswear fabric (Hunt, 2018).
SWOT
It is strategic planning technique that mainly used to assist an individual to identify the
strengths, weaknesses, opportunities, and threats concerned with business competition. This is
renowned tool for audit and also analysis of business strategic position (Key and Czaplewski,
2017). Its main purpose is to determine strategies which will develop particular business model
of company and align capabilities and resources to environment needs under which business
operates. The SWOT analysis of Reebok is given below:
STRENGTHS WEAKNESSES
 The products of Reebok are kn won
for styling and featuring. Each kind
of the footwear manufactured
through Reebok and has the features
that can suit their requirement.
 It has used the social media for reach
out at large number of consumers to
make improvement in consumer
engagement (Kingsnorth, 2019).
 Reebok company operated by
department stores network ,
speciality retailers, sporting goods,
licensees and company- owned
stores to having the better reach to
consumers.
 In sportswear industry, there is high
competitions and brands are trying to
give their best to commercialise
interest. Reebok is considered to
premium and categorised regional or
local players which caters to mass
market.
 This brand has large number of goods
which provide particular sporting
customers requirement of company
that has been unsuccessful in educating
consumers (Liu and Chou, 2016).
 Reebok has high brand image at
market place but controversies develop
negative impact on the brand image.
OPPORTUNITIES THREATS
3

 There is a need to Reebok to enter in
to new markets due to dominance of
some other countries in main
markets.
 Reebok should draw an attention
towards new technology
developments. It should start
developing its goods to make more
modern and invested in added
technologies for increase shoes
(Mandal and Joshi, 2017).
 Reebok was leader in the sportswear
and lost out arch- rival. It has plan to
revamp itself through moving in new
categories for an instance ethnic
design, kids shoes and women
speciality sportswear
 In sportswear sector, competition is
high. Main competitors of Reebok are
Adidas, Puma, New balance and Nike.
 Reebok face the serious threats from
the cheap imitation which sold at the
throwaway cost. The consumers which
lookout for styling ad not concerned
regarding features prefer to buy cheap
imitations (Morgan and et. al., 2019).
 Fluctuations in international currencies
can losses to an organisation.
Evaluation of Current Marketing Strategy / Performance
Marketing strategies refers to comprehensive plan that formulated for attaining objectives
of marketing of company. This gives the blueprint for achieving set marketing objectives. It can
communicate overall value to consumers. The marketing strategy aids company to concentrate
on its scarce resources on possible opportunities for enhance sales. Current marketing strategy of
Reebok us to change way people define, perceive and experience the fitness. Its main focus is on
gain attention of more people at global level through conducting the events and also gain the
benefit from social media marketing (Olson and et. al., 2018). Reebok us using channels such as
advertisements, online advertisements, social media and many others in order to promote goods.
It is trying to develop itself as brand focus on fitness market of women. On the other hand,
conducting events which involve actively consumers great way of developing awareness about
brand through word- of- mouth. The participants are love to sharing pictures of achievements of
events and rising profile of brand through doing so.
4

Analysis of organisation's Competitive Advantage and USP
Competitive advantage is an attribute that permit a company to out firm competitors. In
this, superiority gained through company when this can give similar value as rivals but at
minimum cost. The competitive benefits results from matching the core competitiveness to
opportunities. On the other hand, USP (Unique Selling Proposition) is factor that can
differentiate product from its rivals for an instance minimum cost and high quality. It is
important because this gives more money value to customers which would be pitch for opting
high quality services or products. The strong brand recognition of Reebok target the new markets
in efficient manner. Adidas provides Reebok significant assets in nurturing brand in plethora of
the merging markets. Reebok company is known for the comfortable and innovative sports
apparel and footwear. USP of Reebok products lies in innovative style and design without
compromising on focus of prime consumers. On the other hand, this is testable and explicit
uniqueness claim that can support in some way. Reebok claims that this is only shoes company
that uses the DMX technology for betterment (Patrutiu-Baltes, 2016). Firm can use this as USP
because it holds patent on the DMX technology.
PART 2
Product rationale and specification
Looking towards the high performance of Reebok company at international level,
management decided to expand existent portfolio brand. It wants to launching the new products
i.e. Smartwatch in UK market. The smartwatch of Reebok would be stylish, elegant and sleek to
be worn through athletes. This would have specifications like monitoring the heart rate,
pedometer, water proof, call and message alert, GPS, sleep monitor, infrared sensor and connect
with different mobile applications (Schlegelmilch, 2016). This product is chosen through brand
that introduced at marketplace because Reebok does not provide the smart watches and there is
enhanced people likelihood across globe. Incorporate of smartwatches within product portfolio
of an organisation would permit company to increase consumer base with in the domestic
market. It implies an increment in profits as well as revenues of shoes and sportswear brand. It
enabling an organisation to outshine competitors of company at marketplace.
5

Segmentation Targeting & Positioning (STP)
Segmentation, targeting and positioning is wider framework that simplifies and
summarizes market segmentation process. In this, targeting is process of determining attractive
segments from segmentation stages and ones most profitable for business. It is useful when
developing the marketing communication plans as this aids the marketers to prioritise the
propositions and create relevant messages in order to engage with various audiences. The main
focus of STP is on the commercial effectiveness, choosing valuable segments for business and
creating product positioning and marketing mix strategy for every segment (Song and et. al.,
2018). Segmentation, Targeting and Positioning is digital marketing tool at tactical
communication level. In this, Reebok company is launching the smartwatch with innovative
features. To identifying the target audience for this product, Reebok has applied the STP model.
STP
Segmentation- It is related to searching out what type of customers with various demand
exists. This is grouping of consumers on the basis of sort criteria. It can be on the basis of
demographics, locations and other measures. This is necessary to know that similar population
can be segmented in different ways that depending how to trying to appeal them (Wensley,
2016). There are four kinds of segmentation such as Demographic, Psychographic, Geographic
and Behavioural. In context to launching smartwatch, Reebok will segment market according to
demographics. It will segment its product according to age group of people i.e. 20-40 years
because they are focused on maintaining the healthy lifestyle.
Targetting- It consists breaking market in to the segments an concentrating marketing
efforts on few segments included demands and requirements of consumers. Under this, market
segment is targeted to increase revenue as well as profit level of an organisation. In context to
launching new smartwatch, Reebok would targeting the market through use of various marketing
strategy (Wu and Lin, 2016).
Consumer Aspect Description
Age Group 22 to 36 years
Gender Male and Female
Occupation Middle and upper class income level
Income Level Person having annual income of more than £35,000 - 55,000
6

Consumer Values  Adventurous
 Fitness and music loving
 Health conscious people
Positioning- It assists company to develop perception of goods in target audience minds.
This is an important position of product to appeal to target market for customers to have interest
about offerings. It is necessary that positioning should be in such a manner that develops value
for offerings. With respect to smartwatch launched at marketplace, Reebok company has decided
to implement the positioning in target market through using social media marketing as well as
arrangement of different marketing events at the regular interval of time (Key and Czaplewski,
2017).
Recommend marketing objectives and goals
Marketing objectives are the goals that set through business when promoting its services
and goods to potential customers which should be attained within specific period of time. These
are the marketing strategy that set to attain set objectives of an organisation. Under this,
marketing objectives of an organisation for specific product consist enhancing awareness
between the targeted customers, giving specific information regarding features of products and
minimizing customer resistance to purchasing goods (Cacciolatti and Lee, 2016). Under this,
there are different marketing objectives set through Reebok company in context to launch new
smartwatch mention below:
 To enhance its sales by 55% while growing net income by 14% in next five years.
 To increase market share of Reebok by 5% in 5 months from launching of new
smartwatch.
 To maximise organisational profitability by 13% by end of 12 months through using
different social media networking.
Identify appropriate marketing strategies, based on application of the marketing mix to chosen
product / brand
This is necessary for the each company to develop effective marketing strategy while
launching the new product at marketplace. It is set of actions that an organisation uses to
7

promote its product or brand at market place. The marketing mix consists several focus areas as
part of comprehensive marketing plan. The effective marketing touches wider range of areas as
opposed to fix on single messages (Baker and Saren, 2016). The marketing mix is helpful to
company to make effective strategic decisions while launching the new products and make
changes in existing. On the other hand, marketing mix is helpful in creating marketing strategy
by which consumer base can be effectively targeted. It will help company to provide beneficial
opportunities to increase revenue and profit level. Under this, Reebok company will conduct the
marketing mix for launching the smartwatch at market place. In regards to this, marketing
strategy of Reebok in context of using Marketing mix elements given below:
Product- This can be defined as tangible commodity which is offered to customers in
accordance of their demand. Herein, it is important to know that all feature of product should be
understandable and unique so that more number of customers can be attracted. In the aspect of
Reebok company, this can be find out that they are launching a smart watch which has different
range of features and specifications. Their product is categorised as a digital gadgets which can
be used by sports person or general public. Some key feature of this smart watch are long life
battery, cellular connectivity, attractive design and many more (Festa and et. al., 2016).
Price- It is being considered as one of the key element of marketing mix. This is essential
for companies to set price of new product in accordance of market condition. Basically, the ideal
price covers cost amount and some percentage of profit of company. Businesses' profitability
depends on level of prices. This is so because if prices will be higher and not accordance of
customers then it can become cause of lower profit. Such as in the aspect of Reebok company, it
is essential to them to set price of their new launched smart watch as per market condition.
Firstly, they should make analysis of prices of their competitors and then should assess market
demand of smart watches. Price for new watch of Reebok company should be of 199 pounds. At
this price, their watch can perform well in the market and more number of customers can attract
(Stead and Hastings, 2018).
Place- Along with the above mentioned elements of marketing, this is also one of the key
part of marketing mix. This is associated with process of providing customers access to the
product . Eventually, it is important for companies to put right product in the right place at the
right price and time to the customers. In the aspect of above Reebok company, it is essential for
them to provide product at right place so that more number of customers can be reached out. As
8

well as they should chose a location which is suitable for both to the company and for different
customers (Shaw, 2016).
Promotion- Companies' monetary success depends on this element of marketing mix. It
is so because if business entities will promote their products in an effective manner then this can
be easier to reach out higher number of customers. In general, the term promotion can be defined
as a way of doing marketing so that customers can become aware about products' feature.
Though, it is essential for companies to understand difference between marketing and promotion.
The promotion can be defined as communication aspect of complete marketing function. In the
context of above Reebok company, it is essential for them to do effective promotion of their new
product smart watch. For this purpose, their marketing team should use digital media. It is so
because this is one of the effective channel of promoting products and services of companies in
less time & cost (Pogorelova and et. al., 2016).
CONCLUSION
From the above mention report that marketing strategy is guide that assist marketers to
select, plan, prioritise and implement project to impact on profitable action of consumers. The
marketing strategy provides way to enhance brand value as well as market share of company for
gaining the competitive benefit over competitors. This has been examined that competitive
benefits and USP of an organisation help to outshining rivals which present in similar sector and
generate positive brand image at marketplace. It has been studied that social media marketing is
one of effective method by which company can reach at the large number of audience. At last,
launching of new goods at rapid intervals helps in product portfolio of company with market
share.
9

REFERENCES
Books & Journals
Assimakopoulos, C. and et. al., 2017. Effective social media marketing strategy: Facebook as an
opportunity for universities. International Journal of Retail & Distribution
Management. 45(5). pp.532-549.
Baker, M. J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Bang, V. V., Joshi, S. L. and Singh, M. C., 2016. Marketing strategy in emerging markets: a
conceptual framework. Journal of Strategic Marketing. 24(2). pp.104-117.
Boscagli, M., 2019. Competitive strategy analysis in the food system. CRC Press.
Cacciolatti, L. and Lee, S. H., 2016. Revisiting the relationship between marketing capabilities
and firm performance: The moderating role of market orientation, marketing strategy
and organisational power. Journal of Business Research. 69(12). pp.5597-5610.
Chiu, S. ., Liu, C. H. and Tu, J. H., 2016. The influence of tourists' expectations on purchase
intention: Linking marketing strategy for low-cost airlines. Journal of Air Transport
Management. 53. pp.226-234.
Choi, S., 2016. An inside‐out marketing strategy for innovation among human service nonprofits
in South Korea. Nonprofit Management and Leadership. 26(3). pp.331-347.
Festa, G. and et. al., 2016. The (r) evolution of wine marketing mix: From the 4Ps to the 4Es.
Journal of Business Research . 69(5). pp.1550-1555.
Grossberg, K. A., 2016. The new marketing solutions that will drive strategy implementation.
Strategy & leadership. 44(3). pp.20-26.
Hunt, S. D., 2018. Advancing marketing strategy in the marketing discipline and beyond: from
promise, to neglect, to prominence, to fragment (to promise?). Journal of Marketing
Management. 34(1-2). pp.16-51.
Key, T. M. and Czaplewski, A. J., 2017. Upstream social marketing strategy: An integrated
marketing communications approach. Business Horizons. 60(3). pp.325-333.
Kingsnorth, S., 2019. Digital marketing strategy: an integrated approach to online marketing.
Kogan Page Publishers.
Liu, C. H. S. and Chou, S. F., 2016. Tourism strategy development and facilitation of integrative
processes among brand equity, marketing and motivation. Tourism Management. 54.
pp.298-308.
Mandal, P. and Joshi, N., 2017. Understanding Digital Marketing Strategy. International Journal
of Scientific Research and Management. 5(6).
Morgan, N. A. and et. al., 2019. Research in marketing strategy. Journal of the Academy of
Marketing Science. 47(1). pp.4-29.
Olson, E. M. and et. al., 2018. The application of human resource management policies within
the marketing organization: The impact on business and marketing strategy
implementation. Industrial Marketing Management. 69. pp.62-73.
Patrutiu-Baltes, L., 2016. Inbound Marketing-the most important digital marketing strategy.
Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V. 9(2).
p.61.
Pogorelova, E. and et. al., 2016. Marketing Mix for E-commerce. International journal of
environmental & science education. 11(14). pp.6744-6759.
Schlegelmilch, B. B., 2016. Global Marketing Strategy. Management for Professionals.
Shaw, S., 2016. Airline marketing and management. Routledge.
10

Song, R. and et. al., 2018. When marketing strategy meets culture: the role of culture in product
evaluations. Journal of the Academy of Marketing Science. 46(3). pp.384-402.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance
right. In Social Marketing(pp. 29-43). Psychology Press.
Wensley, R., 2016. The basics of marketing strategy. In The marketing book (pp. 75-107).
Routledge.
Wu, S. I. and Lin, S. R., 2016. The effect of green marketing strategy on business performance: a
study of organic farms in Taiwan. Total Quality Management & Business Excellence.
27(1-2). pp.141-156.
Online
Barone, A., 2019. Marketing Strategy. [Online]. Available through:
<https://www.investopedia.com/terms/m/marketing-strategy.asp>.
11