Speedo in UK (A Business Marketing Plan)

Introduction

A swimsuit manufacturer, Speedo started its operations from Bondi Beach near Sydney, Australia.  Speedo is the World’s leading swimwear brand.  The company manufactures and sells products for recreational swimming as a part of its fashion swimwear products as well as it leads the competitive swimwear market.  Speedo is famous for its hi-tech innovative designs as it believes in “take technology and make it available in the forms of swimwear clothing”.  Speedo International Limited is a subsidiary of the Pentland Group plc; a U.K based privately held company.  It is a global brand management company   (The Pentland Group, 2011).

 

History of the brand Speedo:

Speedo was founded in 1914 by Alexander MacRae, a Scot who had migrated to Australia.  Originally it was underwear manufacture business, known as MacRae Hosiery manufacturers.  The name ‘Speedo’ was born from a slogan “Speed on in your Speedos” in 1928 (Qumer & Purkayastha, 2011).  With the growth and development of swimwear market in 1920s, MacRae introduced “Racerback”, a swimming costume.  It was very supportive and allowed free movement of the body.  First swimsuit by Speedo was launched in 1929. The brand established itself well in the market, Swedish swimmer Arne Borg was the first brand ambassador who set the world record in Speedo swimwear.  Speedo became a famous brand and the company introduced innovative products during 1930s, these products focused on style and performance.  Speedo sponsored swimmers won gold medal in the Los Angeles Olympic Games in 1932 and the company sponsored Australian team in Berlin Games of 1936.

Speedo initiated its exports to USA in 1959 and thus an international division was born to look after sales in Japan, New Zealand and South Africa.  The company moved to U.K. in 1959 by acquiring a 30% stake of Nottingham based Robert Shaw and Company Ltd.  Speedo sponsored athletes won 27 out of 29 medals in the Mexico Olympics of 1968.  Also the Speedo swimmers set 22 world records; Speedo was rising on the horizon of swimwear market.  The company took part in Montreal Olympics in 1976 as an official licensee, 52 out of 54 countries were wearing Speedo swimsuits.  During 1980s, countries like, the Netherlands, Iceland, Italy, Spain, Sweden and Switzerland had official agreements with Speedo and now the company had established its presence n 112 countries around the Globe.

Speedo started investing in technical research and in1996; it launched AQUABLADE, a swimsuit that lowered the surface resistance by 8%, in the same year Speedo sponsored teams won 77% of all 77% of all swimming medals in the Atlanta Olympics.  Speedo launched its revolutionary FASTSKIN in the start of this century; the swimwear was endorsed by world famous swimmers like Grant Hackett, Michael Klim, Inge de Bruijn and Lenny Krayzelburg.  Its swimmers won 13 out of 15 gold medals in The 2000 Sydney Olympics.  Speedo launched the evolution of this product in 2004 which reduced the drag by 4% and also the company joined hands with the Brazilian swimmer Amir Slama to promote its fashion swimwear Rosa Cha.  In 2008, Speedo launched LZR Racer which is considered as the most advanced swimsuit in terms of technology.  The swimwear proved its worth in The Beijing Olympics and 92% of all medals were won by the swimmers wearing LZR Racer.  Star of the games Michael Phelps who won 8 gold medals and set a new world record.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Market and Speedo Products:

Speedo is a famous swimwear brand and it leads competitive swimwear market.  Till early 1990s, global swimwear market had been largely dominated by Speedo products but the competition intensified in mid 1990s when sportswear giants such as Nike and Adidas entered the market. Demand for swimwear developed from seasonal to round the year and it is fundamentally influenced by presence of beaches and popularity of water sports in the countries.

Speedo competes with TYR and Arena in performance swimwear but Speedo dominates the market due to its hi-tech swimwear which enhances performance of bodysuits.  Innovation has been a major component in the Speedo’s products.  The company invested heavily in technical betterment its performance suits and its innovative suits such as FASTSKIN and LZR Racer have proved to be breakthroughs in swimwear markets.  FASTSKIN series of suits by Speedo in 2000s earned the company a reputation of first class performance swimwear manufacturer.  The LZR Racer proved to be a big hit and boosted sales of Speedo to many folds.  About 108 world records were broken by the athletes wearing the LZR Racer suits.  Speedo was the first swimwear manufacturer which introduced recyclable swimsuits.  Speedo also established itself as a fashion brand and introduced a range of leisurewear in the start of this century.  The company has done heavy advertising in 2000s including Sydney Olympics and in 2003 Speedo’s retro-style logo was a part of popularizing strategy of its brand.

U.K. Market: Size and Structure

Although interest in recreational sports activities have increased over the years, global economic downturn had an adverse affect on every industry including swimwear industry and it is expected that global swimwear growth will be lower between 2008 to 2014, from 5.3% to 1.7% (Just-Style.com, 2009).  In the past decade local U.K. swimwear market has been adversely affected by price inflation due to high fuel and transport cost, volatile exchange rates and strong competition offered by low-cost economies of India and china (Rushall, 2000).

London Olympics 2012, the upcoming most important event for swimwear, has created hype in the swimwear industry and all the major players Nike, Speedo, Arena, TYR and Adidas are competing in a highly competitive market.  Private-label retailers such as Marks & Spencer in U.K., also play an important role in sales of swimwear clothes.  Speedo is the market leader in U.K. and the market is fragmented.  Although Nike is currently leads the UK market with an 18% share of the very competitive £4.3 billion sportswear market, it has decided to exit elite swimwear market (The Telegraph, 2011).  It has been estimated that swimwear and sportswear market will constitute about US$ 7 billion till upcoming Olympics.  With Nike out of the market, Speedo has every opportunity to earn extra from the Olympic Games 2012, as Nike allowed its sponsored swimmers including Cullen Jones, Jason Lezak, Aaron Piersol and Brendan Hansen to opt for the Speedo swimwear (Rovell, 2008).  TYR has the second largest market share in U.K. after Speedo, and it has quiet a financial muscle to compete with Speedo.  The brand is much popular in U.K. because Speedo is synonymous with any kind of swimwear.  Although competitive swimwear market constitutes only a portion of the overall swimwear market, it is the main focus of Speedo’s marketing and promotion strategy in U.K.

Target Market:

Speedo has its target market in U.K. that includes swimmers, coaches and swimming enthusiasts.  The brand name of Speedo is so attached with the Olympics that Speedo 2012 Olympic Graphics at Olympic Trial Event attracted nearly 200,000 audiences (Pure Blue Swimming, 2012). Speed’s main focus has been on the competitive swimwear market.

Customer Analysis:

In the swimwear industry, customer is interested in the “swimwear fit”.  It is considered the most critical factor and the ‘fit’ is dependent on the fabric; this has driven the swimwear manufacturers to search for the best fabric.  Manufacturers are interested in the material other than nylon/spandex or polyester/spandex blends.  This increases costs and economic downturn have affected sales of swimwear too.

Junior customers such as teenager professionals and swimming enthusiasts are buying less as compared to previous years.  It is also reported that an average customer buys a new swimwear suit after three years (Fashion and Fit in Swimwear, 2010).  It proves that consumer is price sensitive and high prices adversely affect the sales.

Competitor analysis:

Many brands and companies have competed with Speedo in the past, both in sportswear and swimwear market.  TYR Sport Inc, Michael Kors , Andrew Christian, Gottex, Catalina, Seafolly, Michael Kors, , Jantzen, and O‘Neill are among those.  Speedo remained leader in competition and   fashion swimwear that also includes leisure swimwear suits too (Henson, 2012).  Nike, Arena International (Arena), TYR ,Reebok International Limited, Mizuno, and Adidas are the major competitors of Speedo in competitive swimwear market.  Major competitors of Speedo are listed below.

 

Major Competitors:

• Nike
• Adidas
• TYR Sports Inc
• Arena

Nature of Competition:

Products by Nike and Adidas are considered a direct competitors of Speedo’s products because these two offering multiple products in both categories of fashion as well as sports swimwear.  Though Speedo has remained market leader in overall swimwear market, its competitors have expanded their product lines and currently offer tough competition in various markets.  As of 2008, Speedo had 60% market share of competitive swimwear products; TYR and Nike had 20% and 13% respectively (India Times, 2008). Capitalizing on technological advances, Speedo launched its LZR Racer® and it proved to be a cash cow for the company.  Due to this technically advanced swim suit, Speedo remained dominant in the performance swimwear market and Speedo gained momentum which will be much helpful in future growth strategy.  This competition is for a market which is expected to grow up to US$17 billion till 2015 (Global Swimwear Market , 2010).  Speedo has been successful in forcing its competitors to acknowledge its supremacy in technically advance swimwear of all types.

Nike

Nike, Inc. is a world famous supplier of sportswear and the related equipment.  The company has its headquarters in Washington County, Oregon United States.  The company earned US$2,133 million in 2011 and turnover was US$ 20,862 million (Yahoo Finance, 2012). The company also owns and operates several sportswear retail stores and maintains its presence in more than 180 countries of the world.  The company is a world famous sponsor of many high profile athletes.  It also sponsored many famous teams.  Its tagline “Just Do It” is well known in the world of sports.  The company decided to quit elite swimwear products though it will not quit swimwear retail market.   Some analysts consider it a defeat of Nike at hands of Speedo but company’s top management considers it a part of Nike’s long-term growth strategy.  It is said because Nike acknowledged Speedo’s supremacy in swimming competitions by releasing its sponsored players from its contractual obligations as well allowing them to wear Speedo’s products in these competitions (Press Release: LZR Racer Aquabeat, 2009).

Nike’s marketing strategy is based on the sponsorship agreements with athletes, professional teams and athletic teams of different colleges and universities.  Company’s promotional strategy is a mix of advertising (especially in 1980s and 2000s) and sponsorships around the world.

Adidas:

Adidas is another world recognized brand name, the company was founded in 1924.  Adidas AG is sportswear, equipment and footwear manufacturer and its headquarters are situated in Herzogenaurach, Germany. The company earned US$ 671 million in 2011 and turnover was US$ 13,344 million (Adidas Ggroup Consolidated Income Statement(IFRS), 2011).  Adidas’s JetConcept swimsuit gained worldwide recognition due to its grooves which were much like those of an airliner.   This swimsuit helped to reduce friction drag.  During 1990s, the company divided its brand into three major groups for the sake f a focus separately on each brand. These include Adidas Performance, Adidas originals and Style Essentials (Y-3 is subgroup in this group).  “Impossible is Nothing” is the mainstream tagline of Adidas (News: Mark Wolfe Contemporary Art, 2011).  Adidas power soccer Commodore 64, ZX spectrum, Amstrad CPC: Adidas Championship Football are notable games that feature Adidas and it is also involved in the sponsorship of domestic as well as international sports events around the world.  the company has focused on its promotional activities and there was increase in its marketing budget every next year, in past few years and company expects to earn up to 47% margins in coming years  (Adidas Group 2012 Outlook, 2012).

 

TYR:

Famous for its swimwear and goggles, TYR Sport, Inc. is a comparatively young players in the swimwear market, as the company was founded in the year 1985 in USA.   The company is famous for the manufactures and designing of swimwear and related equipments for professional players of athletics.  The company has joined hands with Swimwear Anywhere for the production of hi-technology swimwear products such as Aqua Shift, Aquapel, and Fusion 2.  These products were endorsed by world famous athletes and winners of swimming competitions around the world.  Hi-tech fabric suits are company’s main products in the Olympic games of past three years.  The completed started research in 1999 and hoped to produce swimwear that will reduce the drag friction by 6%, and the company was able to explain components of drag force offered by the racing suits.  Also it was successful in reducing pressure drag by 18% and wave drag by 13%, reducing the overall drag by 10% in 2004 (Hoovers, 2012).  The company has sponsored athletes like Josh Schneider, Amanda Weir, and Allison Brennan in international games.  Speedo was sued by TYR in US for conspiring with the US Swimming Federation on charges of tempting their athletes but the accusations did not stop Speedo from investing in hi-tech swimwear and gaining a competitive advantage.

Arena:

Originally a part of Adidas Group, the company was founded in 1973 and has its headquarters in Tolentino, Italy.  Currently it has established its presence in 103 countries; it has two major business units, Arena in Europe and Arena by Descente in Japan that is famous for its sporting apparel (Arena: History , 2012).  These two are totally separate divisions and share no technology or designs.  Southeastern unit developed a hi-tech swim suit using Powerskin fabric.  This fabric absorbs less moisture and thus helps to reduce the drag.  Arena is reportedly the first company to focus on textile and fluid dynamics research in order to develop the fastest, lightest and smoothest swimwear.  According to company’s website “Arena has equipped the world’s leading swimmers and lovers of water sports with racing, training, and leisure swimwear and accessories built on a foundation of in-depth research, technical know-how, and an unyielding commitment to quality” (Arena: Company Profile, 2012). 

Competitive Advantage:

Speedo invested heavily in latest technology that helped to manufacture and design its hi-tech products while its competitors mainly focused on expanding their latest merchandises.  So the company gained a competitive advantage over its competitors and became a dominant player in the global swimwear including fashionable leisure swimwear.

Competitors’ Weakness:

Nike, Adidas and TYR acknowledged the technical supremacy of Speedo’s products as Nike and Arena released their sponsored athletes from their contractual obligation and allowed them to wear Speedo suits so that they would not be at a disadvantage in the pool. The success of the Speedo-sponsored athletes forced athletes sponsored by other brands to curb their deals. Some swimmers defied their sponsorship deals and opted for Speedo suits. Speedo‘s competitors lost market share as many athletes and teams switched to Speedo Swimwear. Some of them even exited from the competition and accused Speedo of monopolizing the game and for using technology that broke competitive rules.

 

Current Market Strategy:

Sponsorships: Speedo sponsors many national swimming teams which include teams of Australia, Brazil, Finland, Hong Kong, Japan, Mexico, Romania, United States, United Kingdom and Canada.  It also maintains its reputation by sponsoring world-class swimming athletes around the world.

Advertisements:  Speedo has traditionally focused on people over product and credibility over advertising, analysts said. Sponsorship was the key for Speedo to reach the top position in the competitive swimwear market. For Speedo, advertising was done in a way by training and sponsoring elite swimmers as the company involves swimmers in its product development process.  To boost its fashion brands it invested in advertisements in 2000s.

 

 

 

 

Strengths

Weaknesses

·         Speedo is a well known brand and an established company in the United Kingdom. ·         Swimwearl industry is not saturated and it is in growth stage ·         Potenial market is large enough to earn profits ·         Speedo has experience with providing hi-tech and innovative swimsuits ·         Already a market leader in the competitive swimwear market and the fact is acknowledged by its competitors such as Nike and TYR ·         Speedo sponsors many national teams around the world and have their support. Threats ·         Political and legal environment of the country may change, as it has happened in Australia when early bikinis were banned. ·         Almost all the hi-tech suits of Speedo have created controversy as it happened that Clare Dennis was going to be disqualified from her record-breaking event because her Speedo swimsuit saw suspected (Raszeja, 2011). ·         Competitors may join hand in order to compete with Speedo. ·         Operation costs such as raw material and utilities may increase drastically due to economic pressures; it will be very difficult for the business to offer inexpensive swimwear to the commons. ·         In 2009, FINA introduced new rules and placed restrictions on thickness of suits etc , this may cause problems for Speedo.

·         Speedo is the subsidiary of a brand management company which may sell it any time and it can loose the financial muscle ·         Speedo may face problems in the United Kingdom due to its Australian roots and foreign identity.                   Opportunities   ·         With the competition intensifying in the competitive swimwear industry, the company can focus more on the fashion wear and broaden its scope. ·         Swimwear industry is in growth phase and the concept of beachwear as fashion is becoming popular day by day. ·         As the competition is increasing, Speedo has an open window for the use of technology in swimsuits.  So it can capitalize on its experience. ·         After the success of the business in hi-tech swimwear, it may explore the similar opportunities in other fields such as related accessories such as Speedo Digital music player in the pool and movie camera. ·         The business may choose to use technology in a more efficient way in order to attract more customers and popularize its new brands.  Internet can provide unlimited access to many online social networks.

 

U.K. Market:   PESTLE Analysis
Political	·         U.K is “the mother democracy” with its own constitution, parliament and government. ·         U.K enjoys political stability since very long. ·         This stability has encouraged a lot of foreign direct investment into the country. ·         Privatization of public services has led to a decrease in regulation through political measures.
Economical	·         U.K’s economy is one of the Europe’s strongest economy and it has successfully recovered from the economic downturn of 2009. ·         Tourism is one of the most important industries and government has taken many steps to encourage this industry. ·         U.K has beautiful beaches and they are source of tourist interests as well as attraction points for swimming enthusiasts.
Social	·         Literacy rate is high. ·         Higher standard of living and high life expectancy ·         Speedos are not encouraged as normal clothing in the country
Technological	·         U.K. has a well-developed infrastructure ·         It is considered one of Europe’s technologically most advanced countries. ·         Technology has affected the competitive swimwear industry in many ways, such as Speedo has achieved market leadership due to its hi-tech suits
Legal	·         Law enforcing system is divided at 3 levels ; federal,  state & local ·         More Powers at state level, whereas federal government mostly controls, foreign affairs, economy and defense
Environmental/Ethical	·         Due to its geographical situation in the centre of Europe, its high population density and high level of industrialization, U.K continues to call for special efforts in the field of environment protection. ·         Due to the construction of  8,000 biological sewage treatment plants in the municipal sector, U.K has  reduced pollutants into its waters (U.K: Country Profile, 2003).

 

 

 

 

 

 

 

 

TOWS MATRIX	Strengths 1. Speedo is well known and established band 2. Industry is not saturated 3. large potential market 4. Experience in hi-tech swimsuit manufacturing	Weaknesses 1.  Foreign Identity 2. Subsidiary of a brand management country which may sell it any time.
Opportunities   1. Swimwear Industry in growth phase 2. Focus on fashion wear 3. Possible market expansion 4. Better use of technology, internet etc	SO Strategies:   1.       Invest in Fashion wear market (S2, S2, O1, O2) 2.      Use technical knowhow for development  (O1, S3,S4) 3.      Invest in the development of internet channels to reach wide range of target customers. (O4, S3)	WO Strategies:   1.      Learn about the English culture and traditions more and more from possible available online resources (W1, O4) 2.      Joint Ventures with the local firms (S3, W2)
Threats   1. Change in political and legal environment 2. FINA 2009 new rules 3. Controversial technology of swimsuits 4. Increase in operational costs	ST Strategies:   1.      Keep in touch with the FINA management and use international contacts to company’s benefit (S4, T2)	WT Strategies:   1. Develop an insight into the legal and political environment of the country and try to forecast 5 years major political and legal changes (W1, T1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Target Markets:

1. Teenagers who swim regularly
2. Swimming enthusiasts who visit beaches in their leisure time

These are profitable potential market segments Speedo’s target market.  Company’s performance swimsuits and gadgets like aquabeat etc can help teenage swimmers to perform better in swimming pools or during competitions at school and college level.   Speedo’s unique fashion swimwear and gadgets like digital camera and music players can be favorite choice of swimming enthusiasts who visit beaches and do the swimming in their leisure time.

These two are distinct and unique segments of the target market.  Investing more in the products for this target market can be a source of high profits for the company.

AIOD Framework:

Segment	Need/Benefits	Activities	Interests	Opinions	Demographics
Teenagers	To take part in	school and college studenets	swimming compititons	swimming Games such	12-19 years old
	school and college	Swimming lovers	in their surroundings	as Olympics etc	Esteemed
	and local swimming	Visit swimming pools	Sports	Sports Events	Both Genedrs
	competitions	regularly			Urban Dwelling
Beach Visiting	To enjoy	Swimming lovers	Fashionwear	Entertinment	All Ages
Swimming	and spend some	Often Visit Beaches in	Prefer branded items	Fashion	Have leisure time
Enthusiasts	quality time on	U.K.	over generic items	Music	reasonable income
	country beaches				Live all over U.K

 

 

Customer Analysis

Teenagers Who Swim Regularly:

According to a survey of 4000, 11 to 18 year-olds by the British Market Research Bureau which included data of 15 years, one out of every four teenager swim weekly and regularly (Curtis, 2008).  Instead of many distractions such as electronic games and indoor activities, teenagers’ love for swimming has not decreased and it is evident from the fact that there are more private swimming pools in urban U.K. than before (Rogers, 2011).  It was reported in the above mentioned survey that 23% of 11-15 year olds swim at least once a week in Wales, 10% of teenagers swim regularly in London and same is the case in Yorkshire and Humberside and the north of England.   These teens mostly practice for the local swimming competitions and those held in schools and colleges.

Speedo’s performance swimsuits have targeted professional athletes mostly and it has won the market leadership, it can develop such swimwear for these enthusiastic teenagers on a large scale and help them win the competitions.  Also it can sponsor and train them and thus select a better breed of the swimmers for international competitions such as Olympic Games.  Speedo’s other products such as aquabeat etc are very helpful for these teenagers.  Speedo needs to invest in the products and develop a range of those for teenage swimmers of both genders.

Swimming enthusiasts who visit beaches in their leisure time

There are exceptionally beautiful beaches in the United Kingdom which are tourists’ attraction points and are visited by locals and foreigners are alike.  Beaches like Bournemouth’s seven miles of beach, St. Brelade, in the Jersey Islands, St. Ives, Tenby, Newquay, Bude and Weymouth are some of the beautiful beaches where the beach loving English people spent their leisure times (Travellers’ Choice, 2012).  The European Union has been looking after 21000 beaches, lakes and rivers in Europe in order to provide healthy swimming and entertainment environment (Jha, 2010).  People from across the United Kingdom visit beaches and such area for recreational activities.  Most of them belong to reasonable income group and prefer comfortable branded swimwear.  As these people are funloving and there for entertainment they are interested in swimwear such as fashionable bikinis and bodysuits (The Beaches Differnces , 2012).

As it has already been pointed out that Speedo needs to increase its share of beach leisurewear market, the company needs to target this segment of the target markets more seriously.  Speedo is already doing well with the help of its hi-tech products in this market, it can promote its fashion swimwear and related products more seriously in order to capture larger share of market.  Speedo’s fashion swimwear and accessories like music player which is equally good in the pool, can bring more revenues for the company.

Positioning Statements:

The positioning statements for both these target markets are as follows:

1. For teenagers

For the young swimmers, Speedo offers its LZR Racer Junior and Aquabeat that will help you to win your dreams because only winners choose Speedo. 

2. For Beach market

For the water lovers, Speedo offers comfort, fashion and design that will provide you everything you need in the company of a beach. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

1. For Teenage Swimmers:

Company’s core product for this segment is the swimsuit which helps a young swimmer to compete well in the pool.  As the company has experience of nearly 90 years of competitive swimwear manufacturing, it can help the teenagers with a swimsuit that will reduce the drag and allow a free movement of the body.  Using its Computational fluid dynamics (CFD) technology, speed can launch a LZR Racer Junior to assist the young swimmers.  FLUENT technology from ANSYS, Inc. can be of much help as it was used in the LZR Racer in 2008 (Bramall, 2009).  LZR Pulse that is an ultra-lightweight, low drag, water repellent, and fast-drying fabric, was used as the base woven material for the suit.  It will allow the teenagers to compete well in the swimming competitions.  Also Aquabeat by Speedo can help the young swimmers to learn swimming and prepare well for the competitions.

The company can take a start from this technology and then capitalize on its innovative skills in coming years of business, in next 3 years; Speedo can develop a range of products especially suited to this market.

2. For Beach Lovers:

Although fashion and lifestyle products of Speedo such as Speedo Sculpture, are already in the market, it does not have a specific products which target beach lovers.  Bikinis and Men’s water shorts are some products of Speedo which come under the range of products as leisurewear and beachwear.   So in the first year, Speedo can boost sales of its leisurewear by offering these products and Speedo Digital to the beech lovers.  Also it should invest and innovate, develop products which will make the life at beach, fun and play, such as video cameras etc

Price

1. Teenage Swimmers:

As the target market of the company consists of teenagers the company cannot charge premium prices.  Rather Speedo should go for market penetration strategy and rely on the volumes of sale in first year of this marketing plan.  As soon as the brand establishes itself in the market like its other brands, and market becomes more competitive, it can increase prices and capitalize on its brand name.

Trade and quantity discounts can be offered in first year of the program as a part of promotion strategy. For example the company can provide swimwear to whole teams of college students or teams of some clubs etc. Also Speedo can extend credit facility and even sponsor well known teams.

2. Beach Lovers:

People, who have leisure time and visit beaches, mostly belong to a class with a reasonable income.  And fashion and leisurewear have to be well placed and well priced too.  The company can charge premium prices for its beachwear by offering elegant designs and quality products.  Speedo should use individual names for its brands, as the distinct brands have always been profitable for the company.  The company can extend credit facility to its valued customers but only after 2 years of its implementation of plans when the product and brand is established in the leisurewear market.

 

 

Placement

In the past Speedo products were sold in over 4,000 retail stores across the U.K.  The products for these two new market segments can be sold in the same way but some changes can be made to make the placement better.

1. Teenage Swimmers

Traditional channels of the retailers which have Speedo licenses for selling its brands can be used as they are already established sellers.  One change that can be made is, Speedo can provide license to certain swimming pools and the event management companies which organize swimming competitions and events at local level to sell Speedo brands to teenage swimmers.

2. Beach Lovers:

Speedo can establish its branded stores in all over the country which have specialization in beachwear and fashion swimwear, apart from competitive swimsuits.  These stores will attract the target customers very well.

Promotion Strategy:

The company can keep using the same promotion strategy focused on the sponsorship of swimming teams and of individual elite swimmers  for these two target markets, but some additional above the line advertisements will be beneficial.

1. Teenage Swimmers

Speedo can keep on sponsoring school and college teams to popularize its brands amongst the teenagers.  Moreover it can train and teach elite teenage swimmers the same it does the professional swimmers in Olympics.

2. Beach Lovers

The company needs to invest heavily in advertisements in order to promote its fashion wear and leisurewear.  Heavy above the live advertisement and sponsoring fashion wear events can be much helpful.  In the first year the company needs to invest heavily in promotion budget and advertise on all types of media.  In coming years it can use its traditional style of sponsorships etc.

 

 

 

 

 

 

 

 

 

 

 

 

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