Marketing strategy of LIVESTRONG Cycling Around Lance Armstrong

Posted by Zander Henry on Aug-22-2018

1. The vision of LIVESTRONG Cycling Around Lance Armstrong

The vision of LIVESTRONG Cycling Around Lance Armstrong is to be the leading quality service and product provider for customers. Being the best and the leading player means that LIVESTRONG Cycling Around Lance Armstrong marketing strategy and operations focus on:

• Providing high quality of products and services
• Providing value to customers
• Concentrate on building customer experience

2. The mission of LIVESTRONG Cycling Around Lance Armstrong

LIVESTRONG Cycling Around Lance Armstrong marketing strategy is grounded in its mission. The mission for LIVESTRONG Cycling Around Lance Armstrong is to be the favorite brand of the customers. This mission is essential for the marketing strategy of LIVESTRONG Cycling Around Lance Armstrong as it focuses on all operations and marketing activities in the direction of:

• Consumer centrism
• Using research to understand and influence consumers

3. Brand Equity of LIVESTRONG Cycling Around Lance Armstrong

Understanding and knowing the brand equity is vital for directing and giving meaning to the marketing strategy of LIVESTRONG Cycling Around Lance Armstrong. The knowledge of brand equity will help in shaping LIVESTRONG Cycling Around Lance Armstrong marketing strategy effectively – thereby facilitating the growth of business for LIVESTRONG Cycling Around Lance Armstrong.

3.1. Brand awareness

• LIVESTRONG Cycling Around Lance Armstrong has high brand awareness because of international operations
• The company focuses on higher budget allocation in the country of origin
• Each market for LIVESTRONG Cycling Around Lance Armstrong has modified marketing and strategic directives and plans

3.2. Brand association

• LIVESTRONG Cycling Around Lance Armstrong is directly associated with the brand name and product category
• LIVESTRONG Cycling Around Lance Armstrong has a broad product portfolio
• LIVESTRONG Cycling Around Lance Armstrong is associated with promising and delivering quality and innovative products
• LIVESTRONG Cycling Around Lance Armstrong is also associated with excellent customer service

3.3. Brand loyalty

• LIVESTRONG Cycling Around Lance Armstrong has been successful at gaining high consumer loyalty because of unique and influential marketing strategy
• LIVESTRONG Cycling Around Lance Armstrong has a global customer base
• LIVESTRONG Cycling Around Lance Armstrong keeps adding value addition to the products and product portfolio to keep consumers engaged

3.4. Brand asset

• LIVESTRONG Cycling Around Lance Armstrong has a substantial brand value
• LIVESTRONG Cycling Around Lance Armstrong also enjoys the high financial worth
• LIVESTRONG Cycling Around Lance Armstrong focuses on building a reliable and robust employee base

3.5. Brand element

• LIVESTRONG Cycling Around Lance Armstrong uses the brand element as a means of competitive advantage
• Uses adaptability in product, services, and marketing to meet different cultural demands

4. Situational Analysis of LIVESTRONG Cycling Around Lance Armstrong

The situational analysis will help in developing the marketing strategy of LIVESTRONG Cycling Around Lance Armstrong by conducting a thorough market analysis. This market analysis will aid in understanding the compatibility between external opportunities and other factors, and internal strengths – to be used to maximize the marketing influence of LIVESTRONG Cycling Around Lance Armstrong.

4.1. SWOT

4.1.1. Strengths

LIVESTRONG Cycling Around Lance Armstrong marketing strategy can benefit from the following internal advantages:

• Strong brand image
• Global distribution network
• Investment in market research
• Innovation

4.1.2. Weakness

LIVESTRONG Cycling Around Lance Armstrong faces challenges in marketing strategy because of the following weakness:

• Slow organizational processes
• High product prices

4.1.3. Opportunity

LIVESTRONG Cycling Around Lance Armstrong has the following possibilities of business growth:

• Green lifestyles
• Regional expansion
• Diversification

4.1.4. Threats

LIVESTRONG Cycling Around Lance Armstrong faces business threats because of the following factors:

• Increased competition
• Increased imitation

4.2. PESTEL

4.2.1. Political

• LIVESTRONG Cycling Around Lance Armstrong operates I markets with political stability
• LIVESTRONG Cycling Around Lance Armstrong has funding support from the government for small businesses

4.2.2. Economic

• LIVESTRONG Cycling Around Lance Armstrong enjoys high sales because of higher GDP
• Lower interest rates make business expansion and loaning easier for LIVESTRONG Cycling Around Lance Armstrong
• Low inflation strengthens the financial position of LIVESTRONG Cycling Around Lance Armstrong

4.2.3. Social

• Higher education and awareness increases sales of LIVESTRONG Cycling Around Lance Armstrong predict
• LIVESTRONG Cycling Around Lance Armstrong focuses on understanding consumers and fulfilling their demands through its offerings

4.2.4. Environmental

• LIVESTRONG Cycling Around Lance Armstrong has an active CSR program
• LIVESTRONG Cycling Around Lance Armstrong ensures environmental safety in all its operations

4.2.5. Legal

• LIVESTRONG Cycling Around Lance Armstrong is aware of local and global laws of business and human resource management
• LIVESTRONG Cycling Around Lance Armstrong abides by all statutes – especially labour law, discrimination law, and employee safety laws

4.3. Porter’s Five Forces

4.3.1. Threat of substitutes

• High risk of replacements
• Substitutes offer similar products at low prices

4.3.2. The threat of new entrants

• New entrants need high financial investment
• New entrants need updated technology for keeping par with industry progress

4.3.3. Bargaining power of buyers

• Sales made to end consumer directly
• Stocking of products at retailers, as well as own-controlled retail outlets

4.3.4. Bargaining power of suppliers

• Multiple suppliers of raw materials
• Suppliers are chosen after careful inspection, and through contracts

4.3.5. Industry rivalry

• High industry rivalry
• Players offer similar products
• Players compete through marketing to influence consumers

5. Marketing Objectives for LIVESTRONG Cycling Around Lance Armstrong: The Marketing Strategy of LIVESTRONG Cycling Around Lance Armstrong

LIVESTRONG Cycling Around Lance Armstrong marketing strategy has the following objectives for the current financial year:

5.1. Increased market penetration

• Increase top of mind recall for LIVESTRONG Cycling Around Lance Armstrong brand and products by 30%
• Increase sales for LIVESTRONG Cycling Around Lance Armstrong by 40% by the third quarter of the financial year
• Achieve a trial rate for new products of 10% during the first quarter of the launch
• Increase consumption rate of existing products by 45% during the current financial year

5.2. Enhanced brand recognition

• Increase top of mind recall by 65% during the current fiscal year
• Increase brand recognition by 80% during the first two quarters of the current financial year

5.3. Increased use of digital marketing

• Acquire 25,000 new online customers during the financial year
• Increase website traffic through using blogging and email tactics effectively by 505 during the first two quarters of the year
• Acquire 65,000 likes on the official Facebook page of LIVESTRONG Cycling Around Lance Armstrong during the first quarter of the financial year

5.4. Retail Growth

• Contract with five more leading supermarkets in the first quarter of the year to stock product at eye level shelving
• Contract with two leading online retail sites – eBay and Amazon – to stock our products, and increase accessibility for consumers globally by the second quarter of the financial year

6. Segmentation of LIVESTRONG Cycling Around Lance Armstrong

LIVESTRONG Cycling Around Lance Armstrong marketing strategy uses different means of segmentation to reach an increase in market penetration.

6.1. Demographic segmentation

6.1.1. Age

LIVESTRONG Cycling Around Lance Armstrong has consumers of age groups

• 20-45 years
• 45-60 years

6.1.2. Gender

• LIVESTRONG Cycling Around Lance Armstrong has a broad product portfolio for both males and females

6.1.3. Life-cycle stage

Consumers for LIVESTRONG Cycling Around Lance Armstrong, according to the marketing strategy, are in the following various life cycle stages:

• Single students
• Single graduates
• Single people living at home/not living at home
• Young couples without children
• Married couples with one to four children – all at home
• Married couples with one or two children in college
• Old married couples with an empty nest

6.1.4. Occupation

The marketing strategy devises the following occupations for LIVESTRONG Cycling Around Lance Armstrong consumers:

• Professionals
• Students
• House makers

6.2. Psychographic segmentation

6.2.1. Social class

• LIVESTRONG Cycling Around Lance Armstrong focuses on segments of middle-upper and upper social classes

6.2.2. Lifestyle

LIVESTRONG Cycling Around Lance Armstrong consumer segments have the following lifestyle characteristics:

• They aspire towards a better and higher living standard
• They want to be successful – professionally and socially
• They are not hesitant to try new things, products and services in life
• They are confident in their behaviour and attitude
• They are mainstreamers in their fields

6.3. Geographic segmentation

6.3.1. Region

• LIVESTRONG Cycling Around Lance Armstrong has operations spread across the western developed countries such as America, the united kingdom, and the Netherlands
• It also has operations in emerging markets such as Brazil, India, and China

6.3.2. Density

• The focus of LIVESTRONG Cycling Around Lance Armstrong remains on the urban part of the population

6.4. Behavioural segmentation

6.4.1. Personality

The marketing strategy defines personality characteristics for the consumers of the brand of LIVESTRONG Cycling Around Lance Armstrong, such as:

• Determined
• Confident
• Ambitious
• Hardworking

6.4.2. Usage frequency

• The consumer segments for LIVESTRONG Cycling Around Lance Armstrong are regular and frequent users of the product

6.4.3. Benefits sought

• Consumers seek functional benefits
• The focus, however, is more on the emotional benefits reaped from the consumption of the brand

6.4.4. Degree of loyalty

• Consumers are very loyal
• Have an emotional attachment with the brand

7. Targeting of LIVESTRONG Cycling Around Lance Armstrong Positioning of LIVESTRONG Cycling Around Lance Armstrong

The marketing strategy of LIVESTRONG Cycling Around Lance Armstrong targets consumer groups based on segmentation as follows:

7.1. Target market

• The target market for LIVESTRONG Cycling Around Lance Armstrong is from middle to upper class
• The target market is ambitious and desires to purchase high-end consumer products
• This target market also seeks affordability
• To meet target market expectations, the LIVESTRONG Cycling Around Lance Armstrong focuses on quality control

7.2. Mass marketing

• The marketing strategy of LIVESTRONG Cycling Around Lance Armstrong focuses on mass marketing
• This also requires unique marketing designs and product promotion programs
• LIVESTRONG Cycling Around Lance Armstrong makes use of one strategy to influence all segments

7.3. Undifferentiated marketing strategy

• LIVESTRONG Cycling Around Lance Armstrong does not differentiate between market segments
• It uses a single marketing strategy to target all segments and consumer groups
• Based on this, LIVESTRONG Cycling Around Lance Armstrong also created the marketing mix under the marketing strategy as a singular one for the whole market – regardless of the segmentation divides.

7.4. Focus on quality

• LIVESTRONG Cycling Around Lance Armstrong has created, developed, and maintained a brand that satisfies all consumers under the undifferentiated marketing strategy and mass marketing
• No compromise on quality has been made in the broad product portfolio
• To ensure the influence of a single marketing strategy, the LIVESTRONG Cycling Around Lance Armstrong has also adopted a consumer-centric approach in its overall marketing strategy and operations as well
• This was used for targeting strategy as well as for maintaining growth

8. Company Competitive Advantage in the marketing strategy of LIVESTRONG Cycling Around Lance Armstrong

The marketing strategy of LIVESTRONG Cycling Around Lance Armstrong stands out from the clutter and competition. LIVESTRONG Cycling Around Lance Armstrong has also achieved a sustainable competitive advantage in its marketing strategy. This is because of the following factors that LIVESTRONG Cycling Around Lance Armstrong has utilized:

8.1. Cost-effectiveness

• LIVESTRONG Cycling Around Lance Armstrong focuses on reaching consumers effectively rather than grandeur
• LIVESTRONG Cycling Around Lance Armstrong focuses on developing an integrated marketing approach
• The use of digital marketing efficiently and expertly has helped the company reach a wider audience at a lower cost
• LIVESTRONG Cycling Around Lance Armstrong has in-house copywriters for marketing campaigns which also helps in controlling costs
• LIVESTRONG Cycling Around Lance Armstrong also focuses efforts on ground activities – which are less expensive than commercial marketing tactics

8.2. Innovation

• LIVESTRONG Cycling Around Lance Armstrong has stayed updated with latest developments in marketing research and marketing knowledge
• LIVESTRONG Cycling Around Lance Armstrong makes use of new and innovative tactics to reach its target consumers
• LIVESTRONG Cycling Around Lance Armstrong also employs top of the field marketers to facilitate its marketing strategy and promotional campaigns
• Each marketing campaign launched by LIVESTRONG Cycling Around Lance Armstrong is effective catchier and more influential than the previous one

8.3. Strong market research and consumer understanding grounded

• LIVESTRONG Cycling Around Lance Armstrong marketing strategy is strongly grounded in consumer and market research
• LIVESTRONG Cycling Around Lance Armstrong makes informed marketing campaigns and goals based on consumers’ behavioural feedback
• LIVESTRONG Cycling Around Lance Armstrong also incorporates consumer feedback in its marketing strategy
• LIVESTRONG Cycling Around Lance Armstrong marketing strategy is based on market trends, and consumer needs and wants

8.4. Making effective use of emotional appeals

• Consumers’ emotional needs strongly influence all marketing objectives and marketing goals set by LIVESTRONG Cycling Around Lance Armstrong
• In addition to fulfilling functional needs, LIVESTRONG Cycling Around Lance Armstrong also tries to fulfil the emotional and psychological needs of the consumer
• LIVESTRONG Cycling Around Lance Armstrong tries to build a strong emotional bond with the consumer, which also results in high consumer loyalty

9. Distribution Strategy of LIVESTRONG Cycling Around Lance Armstrong

LIVESTRONG Cycling Around Lance Armstrong marketing strategy highlights the use of the following distribution strategy to maximize reach and accessibility for consumers.

9.1. Intensive distribution strategy

• LIVESTRONG Cycling Around Lance Armstrong makes use of intensive distribution strategy because it is mass marketing
• LIVESTRONG Cycling Around Lance Armstrong’s marketing strategy is based on undifferentiated segments, and thus an intensive distribution strategy allows high penetration and reaches in the overall market
• With the use of the intensive distribution, LIVESTRONG Cycling Around Lance Armstrong tries to maximise its coverage of the markets where it's present
• For achieving the intensive strategy, the company uses hardcore 360-degree integrated marketing strategy and campaign to reach all consumers, across all segments in the market.

9.2. Direct distribution strategy

• LIVESTRONG Cycling Around Lance Armstrong uses direct distribution country of origin as well as in locations where it has subsidiary operations
• The LIVESTRONG Cycling Around Lance Armstrong also makes use of modern retailing channels
• Also, LIVESTRONG Cycling Around Lance Armstrong makes use of e-commerce and makes a sale through online retailers, as well as through the company website
• Direct distributions have allowed LIVESTRONG Cycling Around Lance Armstrong to increase market penetration and accessibility for consumers

9.3. Indirect distribution strategy

• This strategy is largely used for offshore operations where the LIVESTRONG Cycling Around Lance Armstrong does not have a subsidiary
• In these offshore locations, LIVESTRONG Cycling Around Lance Armstrong largely works through the export model
• This makes use of several intermediaries in between, before the product by LIVESTRONG Cycling Around Lance Armstrong reaches the target consumers
• Intermediaries for LIVESTRONG Cycling Around Lance Armstrong include not only the end retail outlets, but also sales agents, retail agents, and distribution agents in offshore locations

9.4. Selective distribution strategy

• For some products of its portfolio which are premium in nature, LIVESTRONG Cycling Around Lance Armstrong makes use of selective distribution channel
• LIVESTRONG Cycling Around Lance Armstrong has maintained a few outlets in the country of origin, and in selected offshore markets for these products
• These placements and locations are chosen based on the niche market that LIVESTRONG Cycling Around Lance Armstrong has for its premium products
• These locations, placements, and marketing strategy helps make the company’s product selectively, but readily accessible for its niche target audience

10. Competition Analysis in the marketing strategy of LIVESTRONG Cycling Around Lance Armstrong

The industry in which LIVESTRONG Cycling Around Lance Armstrong operates is very responsive to market and consumer trends. LIVESTRONG Cycling Around Lance Armstrong, therefore, needs to be vigilant in its market strategy towards competition – to make sure that it maintains its competitive advantage.

10.1. Strategic Group Analysis

• LIVESTRONG Cycling Around Lance Armstrong competes with direct and close competition based on quality and price
• Consumers choose between different companies from the industry based on their functional offering
• Consumers have progressively evolved to strengthen loyalty and form an emotional bond with products that they consume
• LIVESTRONG Cycling Around Lance Armstrong also competes, thereby, with close competition for building stronger brand image, increasing consume loyalty, and for forming strong emotional ties with the consumer

10.2. Industry rivalry

• LIVESTRONG Cycling Around Lance Armstrong experiences high industry rivalry
• The barriers to entry for the industry are low, and new entrants gain easy access in the industry
• The number of local as well as global players is increasing

11. Marketing mix of LIVESTRONG Cycling Around Lance Armstrong

The marketing mix for LIVESTRONG Cycling Around Lance Armstrong as per the marketing strategy is the following:

11.1. Product

• LIVESTRONG Cycling Around Lance Armstrong has a broad product portfolio
• LIVESTRONG Cycling Around Lance Armstrong provides mass marketed products for all segments across the market undifferentiated
• LIVESTRONG Cycling Around Lance Armstrong also provides some selected, premium products to niche customer groups
• All products in the portfolio consistently maintain high quality
• All products are tailored to meet consumer specifications, demands and needs across different regional markets
• The LIVESTRONG Cycling Around Lance Armstrong maintains a high focus on innovation in products and introduces new products frequently to keep the consumers engaged

11.2. Place

• LIVESTRONG Cycling Around Lance Armstrong wants to have a close, emotional and personal relationship with its consumers
• The company maintains high control in its distribution strategies – especially through direct distribution strategy
• The company has a presence in leading supermarkets
• The LIVESTRONG Cycling Around Lance Armstrong also has company-operated stores in malls, and otherwise to make products accessible to consumers easily
• LIVESTRONG Cycling Around Lance Armstrong also makes use of e-commerce to increase penetration and sales

11.3. Price

• The LIVESTRONG Cycling Around Lance Armstrong prices its products so that its target consumers can afford it easily
• LIVESTRONG Cycling Around Lance Armstrong uses relative pricing strategy for its products
• The price of LIVESTRONG Cycling Around Lance Armstrong’s products include not only the high quality raw materials and value additions but also the enhanced customer experience they deliver
• The company’s pricing strategy allows it to enjoy stable revenue and profit growth

11.4. Promotion

• The LIVESTRONG Cycling Around Lance Armstrong has a high budget allocated towards marketing activities
• The LIVESTRONG Cycling Around Lance Armstrong invests substantially in digital marketing activities to reap high and effective results
• Use of digital marketing has also allowed LIVESTRONG Cycling Around Lance Armstrong marketing strategy to cap costs and expenses
• LIVESTRONG Cycling Around Lance Armstrong also takes part in direct consumer engagement through on-ground activities where the company initiates trials
• LIVESTRONG Cycling Around Lance Armstrong also invests in traditional media channels to reach maximum consumers in the market

11.5. People

• LIVESTRONG Cycling Around Lance Armstrong has a large workforce across different companies
• This workforce is continually trained to become experts in their respective fields of operations
• LIVESTRONG Cycling Around Lance Armstrong hires without discrimination
• LIVESTRONG Cycling Around Lance Armstrong ensures that its employees remain motivated through building an inspirational and creative organizational culture
• LIVESTRONG Cycling Around Lance Armstrong focuses on also building and maintaining organizational commitment and loyalty in its employees

11.6. Process

• All activities at LIVESTRONG Cycling Around Lance Armstrong - from raw material procurement to the final sale to the end consumer - undergo systematic processes
• The processes at LIVESTRONG Cycling Around Lance Armstrong are well defined, and well communicated to all employees
• All employees are trained to follow the processes internally to ensure consistently high quality as well as timely production and deliveries
• The systematic processes also ensure a smooth running of operations at the LIVESTRONG Cycling Around Lance Armstrong

11.7. Physical evidence

• The physical evidence for LIVESTRONG Cycling Around Lance Armstrong includes the company logo, company store designs, and the product packaging
• Satisfied and excited customers in the retail spaces of LIVESTRONG Cycling Around Lance Armstrong, as well as during product consumption create a bubbling and an inviting atmosphere
• The e-commerce website for retail by LIVESTRONG Cycling Around Lance Armstrong is also designed with a friendly customer interface to allow maximum interaction with the brand
• The store designs created by LIVESTRONG Cycling Around Lance Armstrong for its retail space allow consumers maximum interaction with the products directly.

12. Promotional tactics for the marketing strategy of LIVESTRONG Cycling Around Lance Armstrong

12.1. Digital marketing

• The company uses social media for reaching consumers effectively
• The LIVESTRONG Cycling Around Lance Armstrong interacts with the consumers directly, and engages with them, answers their queries and takes their feedback
• The company also shares information and build relationships with consumers through digital marketing
• LIVESTRONG Cycling Around Lance Armstrong also makes use of blogging, emails, and content creations as a means of digital marketing

12.2. Conventional marketing

• The company uses a 360-degree approach in its marketing strategy
• This means that the company makes use of traditional marketing channels as well – such as TV, magazine adverts, and out of house placements

12.3. Influencers

• For direct, on-ground engagement, the company uses influencers
• Influencers interact with consumers directly, or through their channels of communication as a means of content creation and endorsing the LIVESTRONG Cycling Around Lance Armstrong brand

13. Monitoring and evaluation of the marketing strategy of LIVESTRONG Cycling Around Lance Armstrong

13.1. Changes in sales

• LIVESTRONG Cycling Around Lance Armstrong regularly tracks its sales to identify the effectiveness of its marketing strategy
• Increase in sales reflect the success of marketing strategy of LIVESTRONG Cycling Around Lance Armstrong
• Sometimes, LIVESTRONG Cycling Around Lance Armstrong experiences increase ins ae after some time of the launch of the marketing promotions

13.2. Surveys and focus groups

• LIVESTRONG Cycling Around Lance Armstrong frequently conducts focus groups and surveys to identify its brand worth
• These methods also help the company identify brand value, brand recall, and brand recognition
• Focus groups allow LIVESTRONG Cycling Around Lance Armstrong to gather feedback on its marketing strategy and helps it understand consumers better

13.3. ROI

• Effectiveness of marketing strategy of LIVESTRONG Cycling Around Lance Armstrong can also be seen through the revenue and profit growth
• Return on investment allows LIVESTRONG Cycling Around Lance Armstrong to effective gauge the effect and influence of the marketing strategy, and measure its success

13.4. Attainment of marketing objectives

• All marketing objectives set by LIVESTRONG Cycling Around Lance Armstrong are SMART
• The quantitative set against each of the marketing objective can facilitate attainment evaluation for the overall marketing strategy
• Successful and timely attainment of these marketing objectives highlight the success of the marketing strategy of LIVESTRONG Cycling Around Lance Armstrong