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Student Details
Surname
Kalli
Given
name
Anastasia
Student Number
1133780
Anastasia.kalli@gmail.com
Marketing
Management
Module Code
Assignment Details
Module name
7MK002
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Table of Contents
Executive Summary ........................................................................................................................ 1
1. Purpose of the project ............................................................................................................. 2
2.
3.
Executive Summary
This paper contains the Speedo UK three year marketing plan. The key objective of this
marketing plan is to assist Speedo to acquire a 50% market share in the UK leisure and
beachwear market, and at the same time maintain its 60% market share in the professional swim
apparel. The total target customers have been categorized into two groups and total customers
amounted to sixteen million. This number has been arrived at after carefully reviewing the
population statistics of the UK including other considerations such as the number of Britons who
go for holidays abroad. According to the projections of the marketing plan, fifteen million out of
the sixteen million customers will be spending $100 on average by the third year of the plan.
This means that by the third year, the company will have 1.5 billion sterling pounds as total sales
revenue which will be over the 50% market share mark of the UK beachwear and leisure
markets.
The marketing plan among others proposes marketing strategies which will involve newspaper
advertisements, social media marketing, billboard advertisements, online advertisements, and TV
and radio advertisements. In addition to this, several open air events will take place across
various UK beaches where the general public can interact with the Speedo team and ask
questions which they have with regard to Speedos products. One of the main objectives of these
marketing activities is to popularize Speedos leisure and beachwear among the general public.
This will disqualify public view that the Speedo company only produces professional swimwear.
2. Company Overview
Speedo was formed by Alexander MacRae in 1914 after moving from his native country,
Scotland, to Australia, in 1910. Speedo was originally called Hosiery Manufacturers, which only
manufactured underwear. The company later changed its name to Mac Rae Knitting as it
ventured into the expanding beach culture of Australia. In 1928, the company became known as
Speedo after one of its employees, Captain Parsons, came up with the slogan, Speed in your
Speedos. This was after the introduction of a figure hugging costume by the company, which
allowed greater freedom of movement, hence, facilitating faster swimming for swimmers who
wore them.
Speedos swimwear quickly gained popularity especially after a new world swimming record
was set by Anne Borg in her Speedo swimwear. Following this, Speedos success increased and
the company was incorporated as Speedo Knitting Mill Ltd in 1951, thus, enabling it to trade in
the Sydney Stock Exchange. The company was propelled to new heights after eight Australian
swimmers scooped gold medals in their respective categories while in Speedo swimwear suits
during the 1956 Melbourne Olympics. In 1959, Speedo established its presence abroad. Among
the foreign countries which Speedo ventured into are: South Africa, Japan, UK, and the USA.
However, like any other organization, Speedo has also had a share of its challenges. Some of
these challenges include accusations by competitors that the swimwear produced by Speedo
constitutes cheating because they assist swimmers to swim faster. Consequently, this has posed
several challenges to the company as depicted by the specific International Swimming
Federation guidelines which bind the company products. Another challenge faced by the
company is that it has failed to dominate the beach and leisurewear sector despite its leading role
in the professional swim wear sectors
This marketing plan gives the approaches which can be implemented by Speedo over the next
three years in order to assist the company get a 50% share of the beach and leisurewear market in
the UK, while maintaining its leading role in the professional swimwear market. This plan will
include an environmental analysis with regard to the companys operations. Also, this plan
includes Michael Porters five forces framework used in analyzing the industry. PESTEL
(Social, Technological, Economical, Environmental, Political) and SWOT (Strengths,
Weaknesses, Opportunities, Threats) analysis is also included in establishing the types of internal
and external environments within which the company operates. Following the environmental
analysis, this plan takes into account different marketing concepts which are crucial to
developing the best marketing approach, which will assist Speedo in attaining its specified
objectives.
3.2.1 Strengths
Due to the consistent wins of Speedo swimwear in several swimming competitions, Speedo
brand equity is exceptionally strong.
In the UK, Speedos distribution channels are well established with a network of over 4100
distributors. Some of the retailers are directly owned by Pentland, which is Speedos parent
company. The 4100 outlets imply that Speedo has the potential to distribute its products all over
the UK. This means that the company has accessibility to the UK market.
Speedos relationship with NASA implies that it can develop the latest innovative swimwear
which cannot be rivaled by its competitors.
The companys UK web page is extremely active with approximately 80% of the web page
visitors directly going to the virtual store.
3.2.2 Weaknesses
Speedos existence will be threatened in the event that its competitors develop innovative
swimwear which can prove their performance in swimming races.
Speedos products sell at higher prices compared to products by its rival companies which are
almost identical. Its rival companies include Mizuno, Adidas, and Nike.
With regard to the UK climatic conditions, Speedos leisure and beachwear products are only
useful during the summer seasons.
3.2.3 Opportunities
Speedos products have the potential to appeal to more clients with the increasing change in
societal values where clothes showing more human flesh such as bikinis, are increasingly
becoming accepted in society.
The markets for Speedos leisure and beachwear products are on the increase with more Britons
going abroad for holidays in search of warmer climates.
Speedos strong presence in the internet can be instrumental in reaching out to customers in areas
where the companys products are not distributed.
The sponsorship deal between Speedo and the British Swimming Association can be useful in
promoting the companys brand to the British public.
Sponsored swimming personalities have the potential to endorse the companys products which
will convince more customers into purchasing Speedos products.
3.2.4 Threats
Uncertainties in the financial situations with regard to the UK economy can result to low sales
due to low disposable incomes of customers.
Speedo encounters strong competition from its competitors such as Arena, TYR, Adidas, and
Nike, who are well established and produce almost identical products as Speedo.
strategic decision making, as an aid to consider where best to strengthen position and identifying
gaps in market.
The Porters Five Forces Model illustrates how the competitive landscape in an industry is
impacted by five prominent forces. These forces are: Supplier power, Threat of new entrants,
Buying power, Threat of substitutes, and Rivalry. The degree of rivalry is the center of this
model as the other 4 forces branch off of this. Each of the forces influences the nature of
competition in the industry. Additionally, organizational strategies are often impacted as
companies formulate their strategies in order to respond to the dominant competitive forces in
any particular industry.
The threat of new entrants for Speedo is low. Even if there are new entrants to the swimsuit
market, they are less likely to form threats to Speedo. And for the threat of substitutes, there is
hardly any substitute for swimwear. For the bargaining power of suppliers and buyers, as a big
and strong brand, Speedo has strong bargaining power as a buyer or supplier. So it may dont
need to worry too much about its suppliers and buyers. The real threats to Speedo are from its
rivals in the same market. The most powerful competitors of Speedo are Arena, TYR, Nike and
Adidas.
efficiently. For analyzing, the customers of Speedo swimwear are simply divided into two
groups: professionals and casual users. According to Kotler and Keller (2011), market
segmentation is the process by which the total potential market of a product or a service is split
up into smaller groups which are manageable. These groups are created by bringing together
customers with the same needs. The criteria used in creating these groups and segments are
identical, which implies that customers for each segment have the same purchasing behavior.
The segmentation process involves two key phases: selection of the segment variables is the first
phase which is then followed by the second phase, which involves the profile of segments. With
regard to Speedo, this marketing plan classifies the target market into three segments.
Professional swimming athletes make up the first segment, while the other segments are made up
of women and men between the ages of 17 and 34 years who are interested in the blending of
leisure, sports, fashion, and lifestyle. This segment also comprises young girls and boys between
the ages of 3 and 16 years.
destinations. According to the 2012 UK government statistics, approximately more than half of
UK's current population falls under this segment.
5.2 Positioning
Positioning involves how an organization presents its products in the minds of prospective
customers. In this regard, Speedo has positioned its products as the ultimate solutions to
professional swimmers seeking swim wear which is performance enhanced. The challenge that
Speedo faces, is the positioning of its leisure and beachwear products as products that will meet
the needs of the target customers. In this regard, Speedo will adopt several approaches in
positioning its products such as feature positioning, product positioning, and user positioning.
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same benefits. Some of these benefits will include warranty of full performance in swim wear
products.
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6. Branding
A brand is a sign or a name or a combination of both aimed at identifying offers of a particular
seller and differentiating them with those of competitors (Murphy, 2009). According to this
marketing plan, Speedo will maintain its current existing brands. The justification for
maintaining its current brands is that it will take more resources and time in creating new brands.
This marketing plan also proposes that in the event that new brands will be created, they should
be associated with the current existing brands.
Target Group
Professional Swimmers
(Racing Suits)
UK Adults
Legsuits
Jammers
years)
Aquashorts
Tankinis
Other Accessories (shorts, shoes, caps, goggles and T-Shirts)
Swim shorts
Jammers
FastSkins3
Other Speedo branded accessories (shoes, T-Shirts, caps,
goggles, shoes)
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7.1 Product
Consumers when making decisions on what to purchase and what not to purchase, look for
products or services which will meet their needs or even exceed these needs. In light of this,
Kotler and Keller (2011) contend that the decision making process with regard to consumer
purchases means that marketers will have to present their services or products into five different
levels. The basic level is the core benefit, which is the benefit the customers purchase when they
buy the products or services. It is the simple or main reason why customers purchase or are
willing to purchase the products (Kotler and Keller, 2011). The core product with regard to
Speedos products is the variety of products including bikinis, goggles, and swim wear offered
by the company to customers in order to meet their basic needs.
The second level of the product comprises the basic product. This involves the reasons why
customers purchase specific products or services. In the case of Speedo, the basic product is the
leisurewear or swim wear. The next level involves the expected product, which basically meets
the needs of customers. The fourth level comprises an augmented product. This product is
described as one which actually exceeds market expectations. Speedos swim wear can be viewed
as augmented products since these swim wear guarantee high performance and are innovative.
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The fifth level includes a potential product. This is a product which satisfies customers needs
and distinguishes itself from similar products in the market. This marketing plan proposes
frequent review of all Speedo products in comparison to other similar products in the market in
order to ensure that the companys offerings are always on the forefront. This is in terms of the
benefits derived from using the companys products and ensuring that the products remain
fashionable in the markets.
7.2 Pricing
Price is the amount of money paid in exchange for receiving goods or services (Phillips, 2008).
With regard to Speedo, price involves the amount paid by customers for acquiring Speedo's
products. Since the target customers for Speedo are not price conscious of the products, the
prices of Speedos products will be almost similar to the prices charged by the other well
established competitors in the market. Actually, the prices of Speedo products will be higher
with a 5% margin so as long as the customers feel that they are purchasing the best products in
the market if price was the determining factor.
However, it is important that Speedo develops a pricing strategy which is flexible. The rationale
is that the economy is dynamic, hence, the pricing strategy of Speedo should accommodate hard
economic times as well as promotions, which will demand lower prices compared to what is
normally charged. Speedos marketing plan proposes that the companys latest innovative
accessories and products should be priced at a premium. Furthermore, the professional athlete
swim wear of the company should also be priced at a premium. This is because professional
swimmers do not have other alternatives apart from purchasing Speedos swim wear if they want
to stand any chances of winning in the swimming championships, in which they participate.
This marketing plan also proposes that with the exceptions of professional swim wear, all other
product lines will be charged at prices not exceeding 5% of what the companys competitors are
charging. This approach is advisable because it means that the products of Speedo will not be
seen to be extremely expensive in relation to other products in the market, even though the
performance and quality of its products is different to what is on offer in the market. Also,
according to the plan, leisure and beachwear accessories (bikinis and shorts) will be priced
slightly lower than the market average prices in the first 2 years. This move is aimed at
increasing the products market share in the market. In the third year, according to the plan, the
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lower priced bikinis and shorts will then be priced at the same level with competing products
with a margin not exceeding 4%. It is assumed that towards the final year of the marketing plan,
potential customers who initially had not tried Speedo products, will have tried them and will be
comfortable paying more for the products since they will now be aware of the benefits which
come with using Speedos products.
7.3 Place
This marketing plan proposes that the existing channels of distribution should be maintained.
However, the only changes which are proposed in this plan are increases to the numbers of retail
outlets which stock Speedos products in areas like the Island of Jersey, where some high street
shops stock the companys products. This marketing plan also proposes that the current web
page of the company be updated to include more features.
15
Dorothy Perkins, NEXT, Wallis, and Miss Selfridge, so that these outlets also stock Speedos
products. This approach means that clients will be able to purchase Speedos products from high
street stores. Customers are more likely to purchase swim wear from high street stores like Top
Shop than from newly established stores which are yet to make their presence felt in the retail
sector.
7.4 Promotion
A lot of money will be spent by Speedo in well planned marketing drives aimed at increasing the
sales and popularity of Speedo brand, especially in the beachwear and leisure sectors. Despite the
fact that the main marketing activities will be conducted by an established marketing consultant,
the marketing department of Speedo will be responsible for analyzing and evaluating whether the
implemented marketing initiatives are effective. The marketing initiatives which will be adopted
include strategic online advertisements, TV advertisements, radio advertisements, and open-air
events. The main purpose of marketing initiatives will be to assist in getting the Speedo brand to
the public, which will in turn result to increases in the companys total turnover by the time the
books of accounts are being closed.
plan will be determined by the increase or decrease in total revenues. If in the third year of the
plan the total revenues will reflect a 60% share in the UK leisure and beachwear industry, then
the plan will be said to be successful.
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9. Milestones
Budget
Start Date
End Date
(Pounds
Responsibility
000)
ADVERTISING
Recording of TV and radio
adverts and booking adverts
01/06/2013 07/08/2013
655
Marketing Department
06/07/2013 30/07/2013
1,400
Marketing agency
spots
Design of Newsprint adverts
including bill board adverts
and paying for them
PUBLIC RELATIONS
Creating target press list
Sending press releases to the
target list
Updating the current website
Redesigning social network
pages
Design of templates of
monthly email newsletters
1/08/2013
30/08/2013
Communications officer
1/09/2013
30/05/2015
Communications officer
1/07/2013
30/09/2013
IT Department
1/07/2013
30/08/2013
IT Department
15/08/2013 15/10/2013
IT Department
01/09/2013 25/09/2013
Marketing Department
01/09/2013 15/10/2013
01/10/2013 30/09/2016
20,000
IT Department and
Marketing Department
LAUNCHING
MARKETING ACTIVITIES
TV and Radio adverts
Marketing Department
18
02/06/2013 15/08/2016
7,000
01/10/2013 30/09/2016
1,000
Marketing Department
Marketing & IT
Departments
The target market population is estimated to be 16 million persons. According to the marketing
plan, the goal is to make 15 million persons spend over a hundred Sterling Pounds per year. This
will result to an estimated 1.5 billion Pounds per year in total sales revenues from the UK. This
will mean that the target of the marketing plan will have been achieved.
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