A REPORT

ON

“BUILDING A GROWTH STRATEGIES OF SPORTS365 THROUGH

COMPLEMENTARY DIVERSIFICATION AND SEGMENTATION
TARGET POSITIONING”

BY

AKASH RANJAN
19BSP0206

1
 REPORT
ON
“BUILDING A GROWTH STRATEGIES OF SPORTS365 THROUGH
COMPLEMENTARY DIVERSIFICATION AND SEGMENTATION
TARGET POSITIONING”
BY
AKASH RANJAN
19BSP0206

SPORTS 365
A report submitted in the partial fulfilment of the PGPM
program of
IBS GURGAON

FACULTY GUIDE: Prof. Anand Srinivasan

COMPANY GUIDE: Upasana Bhatt

2
 CONTENT PAGE NO.

ABSTRACT 4
ABOUT THE COMPANY 5 to 6
OBJECTIVE 7
METHODOLOGY 8
ANSOFF MATRIX 9 to 14
DIVERSIFICATION 15
WHY SPORTS 365 NEED TO
DIVERSIFY 16 to 17
PRODUCT DESCRIPTION AND
STP
T-SHIRT 18 to 21
TRACK PANT & SHORTS 21 to 25
TIGHTS 26 to 30
TRACK SUIT 31 to 34

SWOT 35

3
 ABSTRACT
This project, undertaken by me at Sports365 focus
mainly on growth strategies through diversification and
segmentation, targeting, and positioning (STP).
Sports365 works mainly through its school partnership
program (SPP), wherein it has partners with various
reputed school in Bangalore to supply shoe, school
uniform, and sports infrastructure. The company in the
coming year plans to diversify its product line to sports
and active wear under the brand name “GOL”

My job at sports365 was to diversify the product line to

sport and active wear. In an attempt to accomplish my
goal, I first required to know about the customer
requirement. I conducted online survey, interacted
with gym trainers, sports club members etc.
MY RESPONSIBILITES:
 Know the end customer’s requirement.
 Diversification of product line
 Product that the company can produce.
 Marketing Strategy for each product (STP).

4
 INTRODUCTION

Sports365 is India’s first professionally managed

company with exclusive focus on sports and
equipment. Chandra Shekhar Reedy in 2011 founded
the company. Sports365 has 4 registered office across
India, Bengaluru (HQ), Delhi, Hyderabad and Jalandhar.

Sports365 is one stop solution in areas of sports and

fitness for consumer and institution. In the consumer
space, it operates portal like-
 SPORTS365.IN
 RUNNING365.IN
 BADMINTON365.IN

In institutional space, sports365 offers solution

covering merchandising, events, infrastructure etc in
the areas of sports and fitness for school, clubs,
corporates and real estates.

5
Sports365 is funded by US based VC powerhouse
ventures and backed by sports icon Mahesh Bhupathi
(Director), Yuvraj Singh (Brand Ambassador), Dipika
Pallikal (Brand Ambassador)
And Lara Dutta (Brand Ambassador).

BUSINESS TO BUSINESS TO
BUSINESS CONSUMER
B2B B2C

INSTITUTIONAL SALE E-COMMERCE

(WWW.SPORTS365.IN

SCHOOL via (SPP)
CLUBS AND ACADEMICS
CORPORATE
(WWW.SPORTS365.IN)
WWW.TENNISHUB.IN
WWW.BADMINTON.IN
WWW.CYCLINGHUB.IN
WWW.RUNNINGHUB.IN

6
OBJECTIVE
 My primary objective was to diversify the
company’s product line and build growth
strategy.

 Study the marketing approach to be adopted

by the company to diversify its product line.

 Analyse customer’s requirement and various

other factor for its diversification into sports
and active wear.

 Knowing the potential partner whom the

company can sell.

7
 METHODOLOGY
 Conducting survey to gather information on
end customer’s requirement.

 Interaction with sports mentors, gym trainers

and various other sports club members to find
potential partners for the company.

 Use of various websites to study advantage

and risk associated with diversification
strategy.

8
 ANSOFF MATRIX
BUSINESS STRATEGY
Turning a small business into a big one is never
easy. Most small companies have plan to grow
their business. However, there are certain
methods companies must use for implementing
growth strategy. Some growth strategies in
business have been discussed below.
Growth strategy matrix

Service expansion

Existing services & New services &

product product
Market Expansion

Existing Increase market Add services or

market share product

New Add services or

Enter new market product in new
market market

9
1. MARKET PENETRATION:
This strategy involves focusing on selling
existing product into existing markets to gain
a higher market share. One way to increase
market share by lowering price. As
Sports365 plans to diversify its product line
to sports and activewear, the company needs
to lower the cost of its product. So as to
capture greater market share. This give an
edge to the company and helps in reaching
out to more customer, thus expanding its
market share.

10
 2. MARKET DEVELOPMENT:
Market development is a growth strategy
that identifies and develops a new market
segments for current products. Sports365
need to target non-buying customers in
currently targeted segments. It should also
target new customers in new segments
following in the business model of the
company.

SELL EXISTING PRODUCT TO NEW CUSTOMER GET CUSTOMER TO SPEND MORE

SELL EXISTING PRODUCT IN NEW A MARKETING STRATEGY

GEOGRPHICAL AREAS
MARKETING
DEVELOPMENT
BOOST SALES WITH SAME PRODUCT

MIGHT NEED TO MODIFY AN EXITING MIGHT NEED NEW PRODUCT

PRODUCTS

11
 The company may also open its outlet in
geographical areas, so as to create its own
brand value. The company may expand its
market reach by collaborating with other
popular E-commerce websites (B2C) and local
gym, sports mentor, club etc. (B2C).

3. PRODUCT DEVELOPMENT:
Product development is a series of
steps that includes the conceptualization
design, development and marketing of a
new by created goods or services. This
strategy often works well with small
companies by adding new features or
expanding its product line. Sports365
may expand its product line by adding
other essentials like polish and brush with
shoes, ties and cuffs with shirts, belts

12
 with pants. As the company deals in
sports and fitness equipment it may enter
into a new product line by manufacturing
other essentials like sports bras, tactical
tees and towels. The company can also
add goggles, paddler, swim cap with
swimming suit.

4. DIVERSIFICATION:
Diversification is a strategy where a
company sells a new product to a new
market. This type of strategy is very risky and
needs to be planned very carefully.
Marketing research is essential because a
company will need to determine if consumer
in the new market will potentially like the
new product. The company can adopt this
strategy by expanding its product line to

13
sports and active wear. It can manufacture
sports apparel like T-shirt, Track pant, Tights,
sweatshirt etc. Following are the strategies
discussed for the company.

Make a new acquisition and /or

enter into additional strategic
partnership

STRATEGY
OPTION FOR A Divest some of the
DIVERSIFIED company’s existing business
COMPANY

Restructure the company’s

portfolio of business

14
 DIVERSIFICATION
Diversification means broadening or enlarging the
company’s product range by introducing new
product or by extending the product range. It
allows the company to enter additional lines of
business that are different from the current
product, service and market. Diversification is a
strategy adopted by a company to minimise its
risk of loss, wherein company enters into new
product line or service.
Sports365 mainly deals in the delivery of sports
good and fitness equipment to various reputed
schools in Karnataka. In the upcoming years, the
company strives to expand its strive to expand its
product line by entering into sports and
activewear.

15
WHY SHOULD SPORTS365 DIVERSIFY:

 The company has excess resource,

capabilities and core competencies that
have multiple uses.
 Diversifying, will help the company in
saving cost.
 Expanding the product lines will help to
spread the business risk.
 Entering into new market with new product
will help the company capture larger
market share.
 Capture strategic fits.

The company plans to manufacture sports

and fitness apparel to reach out to large
segment of customers at lower cost. This
would help company increase its market
share.

16
 There are different types of diversification
“CONCENTRIC DIVERSIFICATION”
Is most suited for the company.

CONCENTRIC DIVERSIFICATION-
Concentric diversification is referred to as
enlarging the production portfolio by
adding new product with the aim of fully
utilising the potential of existing technology
and marketing system.
The company can effectively adopt concentric
diversification by adding new product by using existing
technologies. Marketing strategy adopted by the
company in STP.

17
PRODUCT DESCRIPTION:
1. T-SHIRT:
 FABRIC USED- POLYESTER AND COTTON
 DURABLE, LIGHTWEIGHT, BREATHABLE, WRINKLE
RESISTANCE
 SIZE AVAILABLE- XS, S, M, L, XL, XXL

Product Type T-shirts

Gender Boys, Girls, Women, Men
Size All Sizes
Neck Round Neck, V-Neck, Collar, Full sleeves
Brand GOL
Half Sleeves, Full Sleeves, 3/4th Sleeves,
Sleeve Type
Sleeveless
Material POLYESTER, COTTON, SPANDEX

18
MARKETING STRATEGY ADOPTED- STP
1. SEGMENTATION- It is the process to identify
customer need and segment market. Sports 365
can segment the market on 3 bases-
 DEMOGRAPHIC
 GEOGRAPHIC
 PSYCHOGRAPHIC

DEMOGRAPHIC-
 AGE- 12 – 50 YEARS, with more
emphasis on youngster.
 GENDER- Male AND FEMALE
 INCOME- For all income group. Greater
emphasis on middle income group.

GEOGRAPHIC-The company must focus on

sales in Karnataka and its vicinity, further
expanding it to countrywide.

CLIMATE- Suitable for all season.

PSYCHOGRAPHIC-
 ACTIVITIES- Physical activities like Gym,
yoga, running, cricket, football etc.
 LIFE STAGES- This is one the most
important factor to be considered, but
often ignored. People at different
stages have different preference.

19
 Teens between 11 to 16years may like
some cool funny t-shirt while those
between 17 to 35 years may like V-
neck or Hanley Collar T-shirt and those
between 36 to 50years may prefer
basic half t-shirt or Longline t-shirt.
2. TARGETING:
It is the process that allows the
company to evaluate and select the target
markets.
Following are the bases on which Sports365
must target its customer:
 SIZE- Size of the market must be large.
T-shirt are required by people of all ages.
Therefore, customer aged between 12 to
45 years is most appropriate for
company.
 REACHABILITY- The company can
follow two modes to reach its
customer.
 ONLINE - SPORTS365, MYNTRA,
FLIPKART, AMAZON.
 OFFLINE- Through its store
1. GOL EXCLUSIVE STORE
2. PANTALOONS

20
 3. POSITIONING:
This is the last element of STP process,
where the company develops marketing mix for each
segment.

 PSYCHOLOGICAL TACTICS:
Sponsoring sportsperson and athletes will
help company affect the customer buying
decision.
Let target audience know how our t-shirt is better than other.

2. TRACK PANT AND SHORTS:

 FABRIC USED- Polyester, Nylon, Cotton,
Lycra Cotton.
 FIT- Track pant with elastic and angle
cuffs for jogging, yoga and team sports.
 Pocket with zip to hold small essentials.
 FEATURES- Durable, wrinkle resistant
and retain their shine for longer time.

21
Product type Track Pant and Short
Colour All colour
Size All size
Fabric Polyester, Nylon, Cotton, Lycra Cotton
Fitting Type Slim Fit, Regular Fit
Gender Unisex
Ankle Length, Full Length, Knee Length, Thigh
Length
Length
Pattern Printed, Plain, Striped

Track Pant, Running Track Pant, Sports Wear,

Product Type
Sports Track Pant, Sports shorts

MARKETING STEATEGY ADOPTED-

STP
1. SEGMENTATION- The 4 bases of
segmentation are:
 DEMOGRAPHIC-
 AGE- 12 to 50 years, special
emphasis on person age between
18 to 35 years.
 GENDER- Unisex
 INCOME- All income group
 PSYCHOGRAPHIC-
 ACTIVITY- Running, yoga,
badminton, team sports,
swimming and other sports.

22
 BEHAVIOURAL-
 EVERYDAY WEAR-
This forms the main stream
market which consist of a
wide variety of a people.
 BUDGET CONSCIOUS
CONSUMER-
Large section of consumer’s
tend to buy low priced
products. Focusing on this
section will help company to
grow.

 GEOGRAPHICAL-
 REGION- The company should
look for expansion in
Karnataka and its outskirt.
Further it may extend to other
states as well.
 CLIMATE- All season.

23
2. TARGET MARKETING-
Following are the bases discussed for
targeting the market-

 SINGLE SEGMENT- The company

should focus on provide track pants and
shorts to lower-middle and lower
income group. These segment of people
look for low priced product and does
not associate themselves with bigger
brands.
 SIZE- Serving everyday user and budget
conscious consumer will help the
company to capture large market size,
as these section forms large proportion
of customers.
 REACHABILITY- Online through its
own websites and also partnering with
other platforms.
Offline via local stores, sport club and
yoga club and other clubs.

24
3. POSITIONING-
 “NO COMPORMISE IN QUALITY”
should be the moto as this will help to
build loyal customer.
 No drastic increase or decrease in the
price of product customer’s often
assumes that drastic decrease in price
is accompanied by inferior quality
products, which affects the their
buying decision.

25
3. TIGHTS:
1. FABRIC USED- Polyester and
elastane.
2. FEATURES-
Rapid dry technology
Mesh panels to provide ventilation
High stretch fabric to make
movement easier.

26
MARKETING STRATEGY ADOPTED- STP

1. SEGMENTATION

A. DEMOGRAPHIC
 AGE-17 to 45years with
special emphasis on
young girls between 17-
35years of age.
 GENDER- In
sportswear, male
purchasing audience is
higher than female.
Investing in female
product line can help us
to generate greater
revenue.
 INCOME- All income
group. We are mainly
focusing on middle
income group.

27
B. GEOPRAPHIC-
 REGION- Karnataka and
nearby areas. Other
cities like Hyderabad,
Delhi, Gurgaon, Noida,
Kolkata, Mumbai, Pune,
 CLIMATE- For all
seasons.

C. PSYCHOGRAPHIC-
 ACTIVITIES: Running,
training and extreme
workout.

D. BEHAVIORAL-
 EVERYDAY USER- Focusing
on everyday users help
company form large market
share.

28
2. TARGET MARKETING-
Following illustrate the bases of
target marketing:
 SINGLE SEGEMENT-
Focusing on Middle income
group will be most
appropriate approach to
target this market.
 SIZE-
As the company tends to
serve middle income group,
it has a great opportunity to
expand its market share as
this group form large section
of our society.
 REACHABILITY-
Online through its own websites
and also partnering with other
platforms.
Offline via local stores, sport club
and yoga club and other clubs.

29
3. POSITIONING-
 Collaborating with
fashion industry in order
to produce new styles to
cover the needs of women
can help our company to
gain edge over its
competitors.
 Using catchphrases
send powerful message to
the consumer and also
inspire confidence in
women around the world.
This will spike the sales of
the product.

30
4. TRACK SUIT:
 FABRIC USED: Polyester, Spandex and
Cotton.
 Elasticated waistband, Zip closure, Long
sleeve.
 Pocket to hold essentials.
 Rapid Dry Technology Wicks Sweat and
Dries Fast.
PRODUCT DETAIL

PRODUCT TYPE TRACK SUIT

COLOR ALL COLOR
SIZE ALL SIZE
FABRIC COTTON, POLYESTER, SPANDEX,
NYLON
GENDER MALE, FEMALE
FITTING STANDARD FIT, REGULAR FIT
SLEEVES FULL SLEEVES
PATTERN PRINTED, PLAIN, STRIPED

31
MARKETING STRATEGY TO BE ADOPTED- STP

1. SEGMENTATION-
A. DEMOGRAPHIC-
AGE – 18 TO 50 YEARS
GENDER- Unisex
INCOME- All income group.

B. GEOPRAPHICAL-
 REGION- Whole of India,
with greater focus on
Karnataka and nearby areas.
 CLIMATE- All seasons. Most
suited for winter.

32
 C. PSYCHOGRAPHIC-
ACTIVITIES- Running,
Jogging, yoga etc.

D. BEHAVIOURAL-
 Everyday users
Budget friendly consumers.

2.TARGETING-
1. Focusing more on consumer of
age group of 25 to 35 years would
give large customer base.
2. Investing in female products can
be useful for the company, as
women in new India is more
conscious about their health and
fitness.
 SIZE- Investing in single
segment, middle income and
everyday user will give the
company proportionately
greater market reach.

33
3. POSITIONING-
Collaborating with sports
icon and fashionista can
entice the customer to buy
our product.
Using strong taglines acts
as a psychological tactics.
“BRING AVTIVEWOMEN TO
STORES” this may strongly
influence female customer.
Create awareness among
customer about its benefit
over our competitors.

34
SWOT ANALYSIS
STRENGTHS WEAKNESS
1. LOW MANUFACTURING COST
TRENGTHS 2. TRY AND BUY 1. NEW TO MARKET AND
3. 24/7 CUSTOMER SUPPORT
W WEAKNESSAVILABLE
LACK OF EXPERIENCE
2. WEBSITE IS ONLY
4. SELLS PREMIUM ACTIVEWEAR INFORMATIONAL
PRODUCTS 3. HIGH PRICE
5. REFUND OR RETURN POLICY 4. LACK OF VISIBILITY
6. HIGH TECHNOLOGY
7. FREE DELIVERY IN KARNATAKA

OPPORTUNITIES THREAT

1. MORE SPONSORSHIP
1. BRAND AWARENESS
2. ONLINE E-COMMERCE
2. MANY COMPETITORS
3. FOCUS ON SPORTS WEAR
4. GROWING INDUSTRY

35