Machine Translated by Google

Seminar 1: Consumer Marketing

Marketing II (FÖ1017), 7.5hp

Speedo: Leading the Swimwear market

Marketing II

Seminar 1 (28th January 2016)

Group paper from:

Lisa Buchholz

Giulia Catena

Nicolo Tassi
Machine Translated by Google

Seminar 1: Consumer Marketing

Marketing II (FÖ1017), 7.5hp

Table of Content

1. Introduction ................................................. .................................................................. ...................... 3

2. Strategies of Speedo & success factors ............................................. .................................... 3

3. Challenges of Speedo ........................................ .................................................................. ......... 5

4. Future prospects and measures for success ............................................. .............................. 6

5. Conclusion ................................................. .................................................................. ....................... 6

6. List of References .................................................................. .................................................................. .......... 7

2
Machine Translated by Google

Seminar 1: Consumer Marketing

Marketing II (FÖ1017), 7.5hp

1. Introduction

Speedo is one of the leading players in the swimwear market and ever since is stated as
a pioneer with its innovative and fashionable sports fashion and swimwear. The company

was incorporated in the early 19th century and became very successful throughout the years and

the implementation of their business strategies. Although facing both strong and resolute
competitors, Speedo managed it to remain high-flying and popular in the hard-fought
swimwear market (Qumer, 2009).

In the following it is to examine the strategies and factors of success that led to the
Performance of Speedo in the last decades outstanding. Furthermore the induced challenges
for the firm, future prospects and possible improvement measures are to be high lightened in
order to get a holistic view about the current situation and what it needs to remain successful
in the market and keep their prosperous market position.

2. Strategies of Speedo & success factors

Analyze the strategies Speedo has chosen to use in a critical way. In what way have technology,
design and sponsorship contributed in the success of Speedo?

In the first part of the assignment it is to critically analyze the strategies chosen by Speedo and
hence to examine the factors technology, design and sponsorship, which mainly contributed
to the company's success.

At first it is striking that Speedo seems to be in run of good luck. Already in the early days of
the company doing business in the market, Speedo managed it to jump on the trend of sports
and a growing swimwear market. It developed itself very quickly to a favorable brand for
swimming teams which represented their countries during the Olympic Games and world
cups wearing the highly innovative swimsuits of Speedo (Qumer, 2009).

By identifying the trends, Speedo could pave the way for new opportunities and to even
strengthen its position in the market. According to Kotler et. Al (2009) a trend is “a direction or
sequence of events that […] shape the future” (Kotler, Keller, Brady, Goodman, & Hansen, 2009,
p.155). Hereby the drive for recreational activities and professional sport comes into display for
speedo. There are several forces contributing to the decision-making process of which strategy to
choose, one of them is the technological environment (Kotler, Keller, Brady, Goodman, &

Hansen, 2009), which is remarkably important for Speedo's sponsorship and the

3
Machine Translated by Google

Seminar 1: Consumer Marketing

Marketing II (FÖ1017), 7.5hp

continuous work on improving the unique selling proposition of their swimsuits, namely the
replication of biological skin characteristics of marine animals as well as Speedo's technique
of Computational Fluid Dynamics (CFD). The combination of these features enabled Speedo
to invent several swimsuits that were “considered the fastest and most powerful lightweight
swimsuits […] at that time” (Qumer, 2009, p. 5).

Hereby, the focus was mainly set on two strategies. The first one is “to maintain the reputation
of Speedo by continuing to sponsor world-class swimming athletes in the Olympics” (Qumer,
2009, p. 7) and the second one was meant to mutually organized Speedo to become a fashion
brand (Qumer, 2009). In order to get a holistic understanding of both strategies it seems
beneficial to refer to the topic of market segmentation which is the reason behind those
decisions. According to Kotler et. Get. (2009) the psychographic segmentation is striking, as
on the one hand side Speedo is focussing on the activity-oriented people and professional
sportsmen and on the other hand side on the people with a special lifestyle and taste for
fashion. This selective specialization gives speedo the opportunity to play out its competitive
advantage in the swimwear market. Not only could the company reach a strong brand
recognition throughout its numerous sponsorship agreements with popular swimming athletes
from all over the world (Qumer 2009, Exhibit V) and hence spread its market share, but also
the unique features of the swimsuits, referring to the high-quality technology, enable them to
stand out of the superfluity of competition in the sports field. By keeping and fulfilling the
promise of their “powerful” products, which was proved by numerous winners of the
Olympics, wearing Speedo swimsuits, the marketing is virtually a fast-selling item which does
not even need a sophisticated ads because it persuades with the achievements. Thus, the
concept of branding is fully working referring to the Brand Reality Model by Apéria
(Lagrosen and Svensson, 2006). The first parts comprising “Vision”,”Culture”,”Identity” and
“Treasure” are all about the brand creation and the promise the company is offering (Lagrosen
and Svensson, 2006). The other parts of the model are targeted to fulfil the promise and
ensure its delivery via implementing “Architecture”, “Engagement”, “Capitalisation”, and
"Measure". These issues are all relating to the appropriate means of communication. hereby
the word of mouth is based on the good reputation and the numerous success stories of for
example popular athletes like Michael Phelps. Furthermore, other testimonials like Prince
William are promoting the brands (Qumer, 2009).

However, for the second strategy of building up the fashionable product line, Speedo is focusing
on the combination of technology and design. A very beneficial contribution to that are several

4
Machine Translated by Google

Seminar 1: Consumer Marketing

Marketing II (FÖ1017), 7.5hp

partnerships with other fashion brands and textile companies that Speedo set up during the
last decades (Qumer, 2009). By mutually learning from each other, sharing technology and
expertise and hence gaining experiential knowledge over time, Speedo clearly faces a
competitive advantage, also in the field of design and fashion.

3. Challenges of Speedo

Discuss what challenges Speedo is up against. Can they bring something good with them?

The two-pronged strategy of Speedo is also facing challenges, although having such a good
performance in the swimwear market. However, there are always downsides and upsides
coming with challenges.

Speedo, being a technological based company, should pay a particular attention on four
important trends in technology as “pace of change, unlimited opportunities for innovation,
varying R&D budgets, and the increased regulation of technological change” (Kotler et al.,
2009 p. 170).

One of the main challenges which Speedo has to deal with is to design swimsuits for
competition respecting the standard of technology of material, fabrics, thickness and shape
which FINA established from 2009 to avoid “technological doping” (Qumer, 2009). FINA
submits every year the swimsuits of the competitors some months in advance to decide if they
respect the rules of approved swimwear in terms of design, materials, flexibility, thickness
and shape (FINA, 2015). This dynamic yearly standard is a key challenge for Speedo which
has to accurately reflect on taking on the risk of huge R&D investments as the one with
NASA or not. Speedo should avoid to lower his technological standard according to FINA's
rules because if one day this standard would accept a very high technological development,
Speedo could be passed by his competitors.

Having already started to differentiate its market to compete as a fashion brand, Speedo has to

find a balance between professional swimwear technology and the leisure fashion beachwear

products. In particular it has to maintain its position of leadership in the professional swimwear to

gain recognition also as a fashion brand (Qumer, 2009). Having to develop a double face strategy,

Speedo should also focus on fashion advertisement instead of basing its image only on

sponsorship with Olympic games and champions as they have done with Comme des Garçons in

2005 and using Naomi Campbell as a celebrity face for their campaign. otherwise they would

reduce a lot of their potential segment of consumers where they can find a good share.

5
Machine Translated by Google

Seminar 1: Consumer Marketing

Marketing II (FÖ1017), 7.5hp

4. Future prospects and measures for success

Discuss what you think Speedo can do to maintain their market position

To take advantage of the high technological level reached by the company, Speedo could also
differentiate its market expanding for instance to winter sport wear or scuba, which need high
level of technology too. The high credibility, reliability and visibility reached by the brand
can also be transfer on these other segments which could be, in a way, seen as belonging to
the "Speedo" lifestyle.

Taking into account the Ansoff Matrix, Speedo should focus on the market diversification,
meaning to enter new markets with new products (Kotler et. al., 2009). By using their strong
brand recognition it could be possible to gain more market share and extend their corporate
concept and even develop a brand culture by appealing several consumer needs and operate in
different markets. Stretching the brand by diversification could be one of the way of success
for the future of Speedo, which is even a very important component of the business strategy
according to Lagrosen and Svensson (2006). Taking advantage of their expertise and
credibility, gained in the past years, they can try to enter in new market with their current
products, or even extend to new markets. This last possibility is for sure the most risky,
because entering new markets mean new challenges and new knowledge to acquire, but is
also potentially profitable cause this gap can be bridged by cooperation established with other
companies which already operate in that market.

5. Conclusion

The case study was referred to in 2009 and suggested to find a balance between swimwear
and fashion beachwear collections of Speedo. In fact, it seems that, excluding the Sculpture
collection 2016 for women, Speedo seems no more interested to compete as a fashion brand
and it seems more interested in technological accessorizes for swimmers. As it could be seen
from the communication on their Social Media sites, Speedo Web Site and E-commerce, the
the company seems to focus mainly on the functionality and dynamism of the swimwear instead
on aesthetics and creative factors.

In order to conclude, we would assume that Speedo is interested to come back to his core
business, high technology swimwear and moving in the direction of similar segments of
market as skiwear or scuba.

6
Machine Translated by Google

Seminar 1: Consumer Marketing

Marketing II (FÖ1017), 7.5hp

6. List of References

FINA, F. (2015). FINA requirements for swimwear approval. Retrieved from

http://www.fina.org/sites/default/files/frsa.pdf accessed: 01/24/16.

Kotler, P., Keller, K., Brady, M., Goodman, M., & Hansen, T. (2009). Marketing Management
(13th ed.). Upper Saddle River: Pearson Education Limited.

Lagrosen, S., & Svensson, G. (2006). Marketing-Broadening the Horizons. Lund: Studentliterature.

Qumer, S. (2009). Speedo: Leading the Swimwear Market. India: ICMR-Center for Management
Research.