Market Strategy and Development

The Business of Sport: W11007742

Stage: Marketing strategy and development

Word count: 497

A marketing strategy is the logic behind how a business achieves its marketing objectives whilst identifying how customers will be satisfied in the chosen market. (Armstrong, Kotler, Harker & Brennan 2009) For a business to achieve specific aims it must consider the target market, positioning and sales within the first few years. It must outline perceived price and distribution and the planned long term sales and goals as these can all impact success. These are important in the marketing strategy stage as they allow the business to have benchmarks,  comparing and evaluating against competitors, ensuring the product is ready to be put into the market place.

Research has shown that the ‘Homedics elbow wrap’ is considered the closest competitor. (Buyomedic, 2010) However the bandage does not appear to have menthol heat in which the Deep heat support bandage provides.

The Deep Heat Support Bandage is situated in a mass market because although the product targets athletes, it can enter new markets by targeting non-athletes. While research is limited on specific sports bandages, there is increasing applications in the treatment of minor-to-moderate injuries will boost global demand for sport bandages 4.2% annually through 2013. (ReportLinker, 2012) Tendon/strain injuries are very popular injuries in the sports industry. (PhysioRoom, 2012) For example the PhysioRoom state in a survey of injuries at a professional football club, it was reported that 26.8% of all injuries involved muscles and tendons bandage will help support athletes injuries. There will always be injured athletes therefore there will always be a place in the market for the bandage.

The price of the bandage is approximately £15, which may vary due to the size of the product. The price is slightly higher than competitors due to the menthol heating included therefore more costly to manufacture. The bandage will be promoted in sports clubs and social networking . Information about the product will be received via newsletters and emails. If this is successful and the product receives positive feedback, the product will be promoted via web searches. The bandage will first be distributed at small retailers such as local athletic/football clubs in hope it will create revenue in order to expand to bigger firms such as ‘Sports Direct’ eventually marketing supermarkets and chain-stores. To achieve long term goals the product must create enough revenue in the first year to make a profit, resulting in the product selling in stores.

This development stage decides the growth of the product, this allows designers to makes a working prototype of the product, allowing the designers to see if the products manufacturing is realistic. (Lamb, Hair & McDaniel, 2008) During the development stage the ‘Ansoff’s Decision Matrix’ can be used which focuses on potential and present product through existing/new products, in existing new markets, emerging a four product marker combination. 

The product life cycle can also be used during the development stage, the products follows a sequence of stages including: introduction, growth, maturity, and sales decline.  It enables the business to see if the right decisions are being made at each stage which aids in the products success.

References

Armstrong, G., Kotler, P., Harker, M & Brennan, R (2009). Marketing an introduction, Pearson Education Limited: Essex

Buyometric. (2010). HoMedics Hot and Cold Therapy Elbow Wrap.Available: http://www.homedics.co.uk/uk/hot-and-cold-therapy-elbow-wrap.html. Last accessed 4th December 2012.

McDaniel, C & Lamb, C & Hair, J (2008). Introduction to marketing. London: Thomson Learning . p280-298.

Unkown. (2012). Muscle Strains and their Prevention. Available: http://www.physioroom.com/prevention/muscle_strains.php. Last accessed 4th December 2012.

Unkown. (2012). New market research report on wound management products. Available: http://www.news-medical.net/news/20100204/New-market-research-report-on-wound-management-products.aspx?page=2. Last accessed 4th December 2012.