Introduction to business

Section C

Case study 3

Read the case given below thoroughly and answer the questions.

A leading sports shoe brand headquarters in Germany has more than 80 branches all over the world. It produces sports shoes, clothes, hats, socks, backpack, and related sports accessories for all genders and all age groups. This famous brand is present in different football clubs and shops all over the world. It generated huge revenues that exceed billions of dollars. Not only this, but they also keep innovations of different new products for athletes with high quality that help them improve performance. Moreover, it gives priority to efficient processes and more promotion so that they can increase sales and market share consequently. Their shoes are more affordable and have lower price compare to its main leader competitors. This is called the competition-based pricing strategy which the company adapted to attract more customers and continue surviving with this big competition. They also provide discounts and loyalty programs. Like other businesses, the sports shoe company trying to reach its target markets through different communication means like its own websites, social media, and intensive advertisements to reach larger numbers of countries. For example, it sponsored football team players with sport clothes. This helps the company grow faster. However, it faced some challenges which affect the success of any brand. For example; some people are not able to afford to buy this brand so they go for duplicate products that are cheaper. This might leads to decrease the sales and threaten the growth of original brands like this brand. Another challenge is when a competitor raised a complaint and attacks this company in a patent case claiming that it copies the features which allow the shoes to be very light and helps run faster with convenient fly special knit. Therefore, the company should study and analyses the environment very carefully to overcome any challenge that might hinder its progress in the market.

Questions:

a) Explain the marketing orientation approach the shoe company is applying in the above case.

b) Discuss the marketing mix as highlighted in the case.

c) Explain two external business environmental forces affect this business operation.