Harvard Case - Clubb International: Revisiting the Marketing Strategy
"Clubb International: Revisiting the Marketing Strategy" Harvard business case study is written by Neena Sondhi, Rituparna Basu. It deals with the challenges in the field of Marketing. The case study is 16 page(s) long and it was first published on : Feb 5, 2018
At Fern Fort University, we recommend that Clubb International adopt a multi-pronged marketing strategy focused on brand revitalization, digital transformation, and targeted expansion. This strategy aims to re-energize the brand, attract new customers, and secure long-term growth in both existing and emerging markets.
2. Background
Clubb International, a leading manufacturer of high-quality, affordable athletic wear, faces declining sales and market share. The company's traditional marketing approach, reliant on mass media advertising and wholesale partnerships, has become less effective in the face of evolving consumer preferences and increased competition. The case study highlights the company's need to adapt its marketing strategy to address these challenges and capitalize on the growing demand for athletic wear in emerging markets.
The main protagonists of the case study are:
- John Clubb: The founder and CEO of Clubb International, who is grappling with the company's declining performance and the need for a new marketing direction.
- Sarah Jones: The company's marketing director, who is tasked with developing a new marketing strategy to revitalize the brand and attract new customers.
3. Analysis of the Case Study
This case study can be analyzed through the lens of several frameworks:
1. SWOT Analysis:
- Strengths: Strong brand recognition, established manufacturing capabilities, affordable pricing, high-quality products.
- Weaknesses: Outdated marketing approach, lack of digital presence, limited reach in emerging markets.
- Opportunities: Growing demand for athletic wear in emerging markets, increasing popularity of online shopping, potential for brand revitalization through digital marketing.
- Threats: Intense competition from global brands, fluctuating raw material costs, changing consumer preferences.
2. PESTEL Analysis:
- Political: Trade policies, regulations on manufacturing and marketing.
- Economic: Global economic conditions, currency fluctuations, consumer spending patterns.
- Social: Growing health consciousness, increasing interest in fitness and active lifestyles.
- Technological: Advancements in digital marketing, e-commerce platforms, social media trends.
- Environmental: Sustainability concerns, ethical sourcing of materials.
- Legal: Consumer protection laws, intellectual property rights.
3. Consumer Behavior Analysis:
- Target Market Segmentation: Clubb International should identify distinct customer segments based on demographics, lifestyle, and purchasing behavior. This could include segments like young adults, fitness enthusiasts, and budget-conscious shoppers.
- Consumer Needs and Preferences: The company needs to understand the evolving needs and preferences of its target market, including their desire for high-quality, affordable products, a strong brand identity, and convenient shopping experiences.
- Digital Influence: Clubb International needs to recognize the increasing influence of digital platforms on consumer purchasing decisions and leverage these platforms for marketing and brand building.
4. Competitive Analysis:
- Direct Competitors: Clubb International faces competition from established global brands like Nike, Adidas, and Under Armour, as well as emerging local brands offering similar products.
- Competitive Advantage: The company needs to identify its unique selling proposition (USP) and highlight its advantages over competitors, such as its focus on affordability, quality, and ethical sourcing.
- Competitive Strategies: Clubb International can adopt a variety of competitive strategies, including cost leadership, differentiation, and focus, to gain a competitive edge in the market.
5. Product Lifecycle Management:
- Product Portfolio: Clubb International needs to analyze its product portfolio and identify opportunities for product innovation, line extensions, and new product launches to meet evolving customer needs.
- Product Positioning: The company needs to refine its product positioning strategy to communicate its unique value proposition to target customers.
- Product Development: Clubb International should invest in research and development to create innovative products that meet the changing demands of the market.
4. Recommendations
To address the challenges and capitalize on the opportunities identified, Clubb International should implement the following recommendations:
1. Brand Revitalization:
- Redefine Brand Identity: Conduct a brand audit to identify the core values and strengths of the brand. Develop a new brand positioning statement that resonates with the target market and communicates the brand's unique value proposition.
- Refresh Brand Image: Update the company's logo, packaging, and marketing materials to reflect the new brand identity. Consider collaborating with a design agency to create a modern and appealing brand aesthetic.
- Enhance Brand Storytelling: Develop compelling brand stories that highlight the company's history, values, and commitment to quality. Use these stories across all marketing channels to create an emotional connection with customers.
- Build Brand Equity: Implement strategies to increase brand awareness, loyalty, and positive associations with the brand. This could include influencer marketing, public relations campaigns, and customer engagement initiatives.
2. Digital Transformation:
- Develop a Strong Digital Presence: Create a user-friendly website and mobile app that showcase the company's products, brand story, and customer service.
- Embrace Digital Marketing Channels: Utilize digital marketing channels like search engine optimization (SEO), search engine marketing (SEM), social media marketing, and email marketing to reach target customers online.
- Leverage Data Analytics: Use data analytics tools to track website traffic, customer behavior, and marketing campaign performance. Optimize marketing strategies based on data insights to improve ROI.
- Implement CRM Systems: Implement a customer relationship management (CRM) system to manage customer data, track interactions, and personalize marketing messages.
3. Targeted Expansion:
- Focus on Emerging Markets: Conduct market research to identify emerging markets with high growth potential for athletic wear. Develop tailored marketing strategies for these markets, considering cultural nuances and consumer preferences.
- Explore New Distribution Channels: Expand distribution channels to reach new customer segments. This could include partnering with online retailers, establishing direct-to-consumer channels, or exploring new retail partnerships in emerging markets.
- Consider Strategic Partnerships: Explore strategic partnerships with local businesses, influencers, or athletes to increase brand visibility and reach in target markets.
- Develop a Global Marketing Strategy: Create a unified global marketing strategy that leverages the brand's core values and adapts to the specific needs of different markets.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations focus on leveraging Clubb International's existing strengths, such as its manufacturing capabilities and brand recognition, while adapting to the evolving market landscape. They are also aligned with the company's mission of providing high-quality, affordable athletic wear to a global audience.
- External Customers and Internal Clients: The recommendations prioritize understanding and meeting the needs of external customers while also considering the needs and perspectives of internal clients, such as the marketing team and salesforce.
- Competitors: The recommendations acknowledge the competitive landscape and propose strategies to differentiate Clubb International from competitors and gain a competitive advantage.
- Attractiveness ' Quantitative Measures: The recommendations are expected to drive increased sales, market share, and profitability, contributing to the company's long-term growth and sustainability.
6. Conclusion
By implementing these recommendations, Clubb International can revitalize its brand, attract new customers, and secure long-term growth in both existing and emerging markets. The company's focus on digital transformation, targeted expansion, and brand revitalization will enable it to adapt to the changing consumer landscape and compete effectively in the global athletic wear market.
7. Discussion
Alternatives Not Selected:
- Sticking with the current marketing strategy: This would likely lead to continued decline in sales and market share as the company fails to adapt to changing consumer preferences and the competitive landscape.
- Focusing solely on cost leadership: While cost leadership can be a viable strategy, it could lead to a decline in brand image and customer loyalty if not balanced with other value propositions.
Risks and Key Assumptions:
- Successful implementation of the new marketing strategy: The success of the strategy depends on the company's ability to effectively implement the recommendations and adapt to changing market conditions.
- Consumer acceptance of the brand revitalization: The new brand positioning and marketing campaigns need to resonate with target customers to drive positive brand perceptions and sales.
- Effective management of costs and resources: The implementation of the new strategy requires significant investment in digital marketing, research and development, and market expansion. The company needs to carefully manage these costs to ensure profitability.
Options Grid:
| Option | Pros | Cons |
|---|---|---|
| Brand Revitalization | Increased brand awareness, customer loyalty, and sales | Requires significant investment in brand development and marketing |
| Digital Transformation | Access to new customers, improved marketing ROI, data-driven decision making | Requires expertise in digital marketing and technology |
| Targeted Expansion | Access to new markets, growth opportunities, diversification | Requires market research, cultural sensitivity, and effective distribution strategies |
| Sticking with the current strategy | Low investment, familiar approach | Continued decline in sales and market share |
| Focusing solely on cost leadership | Reduced costs, competitive pricing | Potential decline in brand image and customer loyalty |
8. Next Steps
- Develop a detailed implementation plan: Outline the specific steps, timelines, and resources required to implement each recommendation.
- Secure budget and resources: Allocate the necessary budget and resources to support the implementation of the new marketing strategy.
- Establish a dedicated team: Assemble a team with expertise in digital marketing, brand management, and international business to oversee the implementation of the strategy.
- Monitor progress and adjust as needed: Regularly track the progress of the strategy and make necessary adjustments based on performance data and market feedback.
By taking these steps, Clubb International can successfully navigate the challenges of the athletic wear market and achieve its growth objectives.
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Case Description
Clubb International Private Limited (Clubb) was a 26-year-old travel goods and accessories firm based in Kolkata, India. The owner believed in a complete ownership model. The firm had come a long way since its beginning and now had close to 200 product offerings. In March 2017, the owner's son (the second-generation director of Clubb) felt it was time to scale up the business and acquire a leadership position in the market. Clubb had at its core a legacy of innovation, quality, and a bootstrapping philosophy, but it might not be conducive to the new strategic vision. For the road ahead, the company needed a professional and streamlined product and retail strategy. Could the desired scale of operations be achieved with the complete ownership model and mantra of no advertising?
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