Case 3: Hi-Tec Sports Marketing Strategies

Hi-Tec Sports is a privately-owned British company with products sold in over 100
countries. It is the global number two outdoor brand. It has developed a positive
brand image, using different methods of promotion, to distinguish it from its
competitors. This is known as positioning a brand. The Hi-Tec brand represents both
sport and an outdoor leisure lifestyle. It is sold in the mid- price market segment with
a unique selling proposition (USP) that emphasizes the company’s four core values:
• Proud: Hi-Tec delivers more than competitors • Honest: products deliver on
promises • Fun: working creatively • Hungry: always trying to improve products.

Over the last two years Hi-Tec has undertaken market research to find out how best
to encourage consumers to recognize the brand as both for sports and an outdoor
lifestyle. The theme chosen is that Hi-Tec products are ‘inspired by life’. The
marketing process Marketing is the process of identifying customer needs and then
seeking to meet them. Hi-Tec adapts its marketing for each targeted customer
segment. This means having the right products available at the right price in the right
way. This is called the marketing mix or four Ps: • product – innovative high
performance footwear • price –value for money • place – sold online or through
premium retailers • promotion – a mix of channels to increase sales EDITION 16 Hi-
Tec also uses the AIDA model.

This stands for Awareness, Interest, Desire and Action. Hi-Tec wants to take the
customer ‘action’ further by developing customer loyalty so that customers buy the
product and then recommend the product to others. A I D A Customers are made
aware of the products. Awareness from the promotions stimulates their interest. They
develop a desire for the products. Customers then take action by making a
purchase. Above-the-line promotion This is based on paid-for advertising. Different
media outlets can be used for different target markets. Hi-Tec uses TV, newspapers
and magazines, banners on websites and billboards. Its advertising shows people in
sport or in outdoor activities. Hi-Tec tries to measure its effectiveness by, for
example, counting the number of visitors to a website. These methods of promotion
are often expensive. Below-the-line promotion This is promotion that takes place
through communication other than traditional advertising channels.

Hi-Tec has partnerships with outdoor organizations such as the National Trust to help
it reach its target audience. It also employs famous athletes and explorers to
promote its brand. Other below-the-line techniques include direct mail, trade and
consumer exhibitions; sales promotions and branding on displays used in stores.
Public relations also helps to build the brand image online and in the press. Viral
marketing This is a new way to advertise online. Hi-Tec developed a campaign called
Liquid Mountaineering and in 2010 produced a YouTube video showing men
apparently running on water. It did not carry the Hi-Tec brand name, but Hi-Tec
owned up to making the video and reaped the publicity.

By November 2010 the video had attracted 7.5 million viewers and had been
mentioned in the press and on TV. The video ‘went viral’ as viewers emailed or
tweeted the link to friends. The video has been an extremely effective marketing
technique. However, Hi-tec is recently losing market share to a rival brand.
Conclusion A brand needs to communicate its key values to customers. Hi- Tec’s
brand identity is one of ‘fun’. The Liquid Mountaineering campaign helped spread this
message and created a lot of press coverage for the brand. However, Hi-tec is
recently losing market share to a rival brand. Source:
http://businesscasestudies.co.uk/hi-tec-sports/#ixzz1ipMC359opromotion
ISSUE QUESTION: Given that Hi-Tec line of shoes is losing market share to a rival
brand, what promotion strategy would be the best one to recapture market share?
Justify your decision. In your presentation, explain the following terms: market share,
AIDA model, below-the-line promotion, above-the-line-promotion, viral marketing.