Strategic Marketing Analysis: Under Armour's Cuban Venture

This report provides a comprehensive analysis of Under Armour's potential market entry into Cuba, employing various marketing frameworks and models. It begins with a PESTLE analysis to assess the political, economic, social, technological, environmental, and legal factors influencing business operations in Cuba. A comparison of Cuba and the UK using Hofstede's cultural dimensions model highlights key cultural differences that Under Armour must consider. The report outlines SMART objectives related to financial, operational, human resources, and customer goals, ensuring a focused and measurable approach. It explores Porter's generic strategies, Ansoff's new market development strategy, market entry modes, pricing and positioning strategies, and the product life cycle model to formulate a robust marketing plan. The report also discusses product standardization, adaptation, and glocalization strategies. Finally, it addresses implementation, performance measurement, and provides a justification for choosing Cuba as a potential market. This analysis aims to equip Under Armour with the necessary insights to navigate the Cuban market effectively, and similar solved assignments can be found on Desklib.

Principles and Practices of
Marketing

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Part 1................................................................................................................................................3
Pestle analysis on Cuba country..................................................................................................3
Hofstede model of Cuba compare with UK.................................................................................4
Smart objectives related to business elements.............................................................................6
Part 2................................................................................................................................................6
Porters generic strategies to fulfil the business goal....................................................................6
Ansoff's new market development strategy.................................................................................7
Market entry mode strategy:........................................................................................................7
Pricing and positioning strategy:.................................................................................................7
Product life cycle model..............................................................................................................8
Price elastic and price penetration...............................................................................................9
Place distribution, Location in store or online store....................................................................9
Promotion of product...................................................................................................................9
Part C.............................................................................................................................................10
Implementation of strategies......................................................................................................10
Performance measure.................................................................................................................10
Final justification of choosing Cuba country.............................................................................10
.......................................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
The action of promoting, advertising, selling products and services termed as marketing.
Popular marketing practices are first optimized the goal, create a website, use advertisement
method etc. Under armour UK based sports equipment organization that manufactures footwear,
sports and casual appear. This company begin to recognized by soccer association. Due to the
popularity of company's product, they want to open their company's branch in Cuba country
(Ahsan, 2019).
This report consist of sostac analysis in which macro environment of the moving country
is evolved. Further discussion is about hofstede model and smart objective related to financial,
customer, porter generic, ansoff's new marketing,strategies and marketing mix are there, that
focused on approaches like glocal, adaptation. Finally, the report consist of actions and control
made by the organization to move their business to different country.
MAIN BODY
Part 1
Pestle analysis on Cuba country
Political factor:
Political factor focus the role of government in shaping the business. Government in
Cuba country has good record of attachment with UK treaties. Country has a stable and
transparent political environment system that will help Armour UK based sport equipment
company to establish their business there.
Economic factor:
Economic factor focus on economic condition of organization or country. That includes
interest or inflation rates, financial state of the country. Demand of armour company's product
can be impacted by inflation rate, which implies increase in supply market (Budur, 2020).
Social factor:
Social factor involves demographic factor like population size, customs, culture and
behaviour of the country's people. armour company has good attitude towards health and safety
measures. Before entering into the market armour company should know about the social nature

between government and society. Armour company should have complete analysis of attitude
towards the authority to launch their products in the market.
Technological factor:
Technological factor focus on innovation in products using various science technology.
Armour company can assess the internet penetration in the country. Company should have to
evaluate all e-commerce technology infrastructure before switching to the country's
market.Armour company should have complete analysis of supply chain partners area, that will
help the company to bring more transparency in their products (Chakrabarty, 2021).
Environmental factor:
Environmental factor involves physical condition that is temperature, work behaviour of
people etc. It includes how climate change will influence armour company and its supply chain.
Armour company needs to discuss all competitive strategy that what investment company has to
make in their product. They need to know all environmental factors before entering into Cuba
country's market.
Legal factor:
Legal factor focus on all the legal matter as employment law, health and safety regulation
etc. armour company should know about the employment, data protection law, consumer
protection law or business law to establish their brand in Cuba country.
Hofstede model of Cuba compare with UK
Power:
Power represents the level of quality and inequality within a societal group. Cuba country
has high power distance as compared to UK. Whereas, in UK the power distance score is low
among the higher class society than working class. This will help armour company to build
themselves in Cuba (Islami, Mustafa and Latkovikj, 2020).
Individualism:

It is a degree of interdependency which society maintains amongst its members. Cuba
country believes in work together for the betterment of the country. Whereas UK has better rank
in individualism as they are highly individualistic. Therefore, armour company should have to
provide a better social environment among their employees.
Masculinity:
It focuses on competitive nature among the society. Cuban people are majorly masculine.
They generally focus on something which makes them better for their family or their country.
Whereas, in UK the majority of people are masculine as they focus in improving themselves in
every aspect. Therefore, armour company will handle all the competitive nature as they are UK
based organization (Karkare and van Seters, 2019).
Uncertainty avoidance:
It gives the idea of unknown future being. Cuba country has clear low uncertainty
avoidance. People of Cuba country lived under the dictatorship. While in UK they too have low
uncertainty avoidance that means native people are not mainly focus on what next day will bring
something to them. Armour company have to clear all the future strategies so that they will stick
in the Cuban market for the long time.
Long term orientation:
It tells about that how society will maintain the links with its past to deal with the future
and present challenges. People of Cuba country are short term oriented they only focus on their
present things. While on the other hand UK scores neutral or moderate in long term orientation
Indulgence:
It discussed how people control their desires and wants. Cuba's culture is complex and
influenced by other countries. While culture of UK is consider as indulgent, the native people
have positive attitude towards everything. Positive optimistic attitude of armour company will
definitely ace the market of Cuba.

Smart objectives related to business elements
Using the smart goals will help the organization to achieve its target goals. By providing
these objective to business Armour company will definitely achieve their goals of revenue in
different country as well. Armour company has to achieve their goal by setting a specific strategy
of budget, to spent less on growth goal products, avoiding misuse of budget so, that they have
maximum budget to move forward with new innovations, by measuring the progress they will
track the finance related matter of the company (Lidasan and Rahman, 2018).
Operational goals are used to improve the product service quality, they are required to
run a business. Operational goal includes improvisation of product or service quality. Armour
company's main product is sports equipment they have to more concern about their product
quality to increase their business in Cuba they must have to follow all smart operational
objectives.
Smart human resources goals for the armour company will help it to move in different
country. Due to new business plan armour company will need a skilled professional in their
business field for that purpose company should have to make proper credential for new hiring.
They have to measure all the factors in which employee can develop their performance towards
their marketing object, they have to offer relevant training to the new ones about their strategies.
To develop their business in new country they have to keep motivated and goal oriented, also to
increase the productivity they have to keep motivate their employees to achieve the goals
(Schellenberg, Harker and Jafari, 2018).
One of the important role is played by the customers in any business. To increase the
productivity of the business armour company needs to make strategies according to the
customer's wants. Company has to specific about what their customer wants in their product.
They have to manufacture the product after measuring all recommendation and feedback made
by the customers.
Part 2
Porters generic strategies to fulfil the business goal
It describes how company follow the competitive advantage in their chosen market field.
It consists of three strategies that are lower cost, differentiation or focus.
Cost leadership strategy:

Cost leadership generic strategy tells about the deduction of the cost invest on the product
made by the companies. To move in the Cuba armour company needs to apply cost generic
strategy. Company can take the cost advantages by improving their product quality, creating
optimal outsourcing decisions. Cost leadership strategy helps the armour company to increase
the profit by maintaining the total cost invest on products (Strauss).
Ansoff's new market development strategy
Ansoff model helps the businesses to identify the opportunities. It helps the businesses to
grow in their revenues. This model focus on the growth that is the reason it is widely used by
many organizations. It gives several opportunities to the company to earn the revenues. By using
this model Armour company will grab the opportunity in the Cuban market. It will help them to
run their company in a better way so that it will maximize the profit rate. This model consists of
certain specific strategies are-
Market development:
To enter into the market of Cuba armour company will need to analyse all the marketing
factors, they need to complete all their research about Cuban country. They need to divide the
market according to the geography and demographics as well as on income credential. Company
have to decide the segment in which they operate promotional strategy.
Market entry mode strategy:
It is the plan of delivering products and goods into new market. Armour company is
willing to go into new market which is Cuban country. They have various options that varies
with risk, cost and degree of control. Company will have to face risk of new place as they are
new in the Cuban market. They have to make proper research on Cuban market to stay there. To
avoid any kind of risk armour company will have to follow market entry mode strategy before
entering into the Cuban market (Yusop, 2018).
Pricing and positioning strategy:
Pricing strategy allows businesses to use price to remain in their competitive
environment. Organization uses position to develop an image of their product in the mind of their
target audience. Initially armour company has to use penetration pricing strategy that will set
their product on low cost price to grab the attention of Cubans. This strategy will help the

customers to switch to their product. Company has to focus on the competitive market they have
to positioning their items in a way that it will look unique.
Product life cycle model
It is the management tool that defines the behaviour of product from its development to
its marketing, also tracks the launch, growth, and sales of the product. It includes 4 stages-
Product introduction:
For armour company initially the market and sales growth are small as they are not native
company to Cubans. Their primary goal is to established in the market, therefore they have to
come with a plan to launch their product.
Product growth:
After launching the first product in Cuban market, armour company will try to build their
brand in the market. Consumers are now aware of their product, and they are accepting it, it will
rise the popularity of company in Cuban market.
Product maturity:
Maturity is the peak of product life cycle. In this product reaches its maximum sales
potential. After launching product in new market armour company gets its first revenue due to its
product's popularity in Cuban market (Todic, 2017).
Product decline:
In this stage company begins to lose customers. As armour company is new in the market
they have to plan to ace the market, for this they have to match all customer needs in order to
stay there for long time.
Armour company have to design first their product portfolio, it should be consists of all
resources related to their sports equipment product. Product standardization is the process of
maintaining the consistency of the product. Armour company comes with a plan of
standardization in which their product will be developed under using same resources.
Standardization will help the company in cost reduction as they are new in the Cuban market
also it will increase the efficiency of their product. Product adaptation is used to modify the
product. The product of armour company is different in UK in order to introduce it in new

market they have to adapt their market's need and modified it accordingly so it will help them to
reach in market. Product glocalisation is when global products are standardized to meet their new
customers. At first company will have to face difficulty in the new market, after offering a global
product they will rise their productivity.
Price elastic and price penetration
Price elasticity measures the economic indicator that indicate increase in product quantity
related to change in product's price. At first armour company set their product at low cost in
order to increase the elasticity demand of product. Organization uses pricing penetration as a
market strategy to grab the attention of the customer company decided to sell their first product
on low cost to attract the Cuban customers. Pricing standardization helps the company to
introduce their product rapidly in the new market. Price adaptation enables company to adapt the
change whenever it required as company is new in the Cuban market. Pricing glocalisation
works better for the company, armour company has done all the research on Cuban market they
knew the market's requirements (Rizal, Adam and Ibrahim, 2017).
Place distribution, Location in store or online store
Distribution is the process of making a product or service available to the customers. To
reach the local customer they have used both online and in store channel, as open channel gives
you more customer than physical channel. It connects with different region that helps in product
marketing than physical channel marketing. Place standardization allows companies to directly
distribution of their product. Place adaption defines that to establish in Cuban market armour
company has to adapt all the climatic, environmental changes. Place glocalisation includes
creation and marketing of product by adapting local culture of market (Knight, 2020).
Promotion of product
To promote or advertise the product into Cuban market company followed local market
criteria to attract the Cuban people.

Part C
Implementation of strategies
Before entering into Cuban market armour company implemented their strategies to gain
the trust of local people. Porter generic strategy helped them to maintain the cost of the product
only invest when its needed. Ansoff strategy offers many opportunities to the company, as locals
are attracted towards its product's appealing. It helped them to rise in Cuban market. Market
entry strategy, pricing and positioning strategy all gives the complete analysation of Cuban
market which helped armour company to establish their business. These strategies brings more
revenues and market values to the company. All these strategies helped armour company to
remain in the competition of Cuban market. By following smart goals, action list, designate
resources helped a lot to develop the business in international market. It gives the complete
report of Cuban market, company followed these strategies and objectives thoroughly to meet
their goals.
Performance measure
Performace measurement and control of objectives are important to the growth of
organisation. Smart goals helped armour to reach their target in Cuban market. They give
complete analysis of market where to launch the product, what audience will like in their
product. They measured the performance by applying all market strategies and smart goals. Due
to all this armour company established there and earning more revenues because of their
products popularity.
Final justification of choosing Cuba country
Cuban market offers lots of opportunities to the organization as its area of market is big.
Its market gives long term profit to their investors. Locals of Cuba are addicted to sport activities
of their country as country plays international soccer game, so they need equipments for that.
Armour company offers best sport equipment product that grabs the attention of local residents
of Cuba. Cuba's government passed a law and created an economic zone in Havana and breaks
the customs to attract the foreign investors to increase the economic rate of the company.
Increase in disposable income of the Cuban will increase the value of company, when disposable
income increase residents earn more money. Cuban culture is complex mixture of different

factors their residents follow European custom, that will help armour company to rise in Cuban
market (Lancaster and Massingham, 2017).
CONCLUSION
Above report concluded that market of Cuba satisfied all the needs of foreign investors. It
will provide better future opportunities to the armour company. Country satisfied macro
environment that helped foreign company to harmonized with local residents. As Cuban culture
inspired by Europe that's why armour company will not have to face cultural barriers. Residents
of Cuba are sports lover they followed their sport culture with deep concern, it helped armour
company to sell their products in local market. Initially the hype was created among the Cubans
as the armour company is from different zone and offered sports product that grabbed a attention
of lots of residents. It helped armour company to build smart goals and strategies to build
themselves in Cuban market.