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Master Teacher File Hi Tec

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Management and Sports  1  CASE STUDY: HI TEC, Usin g Promotion to Position a Brand Who is HI TEC? Can you guess what their product portfolio is (product portfolio= the collection of different items a company sells). Be specific.
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Management and Sports 2

Hi Tec designs, develops, manufactures and sells footwear,sportswear casual apparel, sports equipment andaccessories. They are a British company but theirheadquarters are in Amsterdam.

Hi Tec first began by making shoes for playing squash.Today they sell hiking boots, multi-sport shoes, casual shoes,walking shoes, running shoes, cross training shoes,sandals, winter boots and waterproof shoes.

You are going to read the introduction to the documententitled HI TEC: Using Promotion to Position a Brand. Butbefore going any further…

What is branding? Brainstorm some ideas to put onthe board.

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Management and Sports 4

A brand is the “name, term, design, symbol or any otherfeature (characteristic) that distinctly identifies one productfrom another. The word BRAND is both a noun and a verb.As you can see in the above pictures, branding is the painfulaction of leaving a mark on cattle to help owners identifytheir livestock.

The case study HI TEC: Using Promotion to Position a Brandwill now be handed out.

Now read the I ntroduction , paying close attention tothe meaning of the words in bold. In addition,highlight the following words and try to guess theirmeaning, be prepared to give a translation. (15minutes)

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Management and Sports 5

Go back to the introduction. Give concrete examplesof positioning , market segment , USP and market research . To help you use CONCRETE examples youmay use these questions to guide you. Work with apartner, be prepared to give your answer to theclass. (20 minutes)

1. How does Nike position itself differently from adidas, orvice versa?

2. Describe the market segment you and your classmatesfall into.

3. What is the USP of the iPhone compared to other smartphones or vice versa?

4. Give examples of how companies collect marketresearch .

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Management and Sports 6

On a more personal note, draw your own chart todescribe your personal core values. Use somecreativity to choose your ADJECTIVES. How can thisexercise be useful to you? What do you know aboutPersonal Branding? (10 minutes)

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Management and Sports 7

Go back to your text and read the next section onThe Marketing Process . Make sure you understandthe following terms, be prepared to give atranslation. (15 minutes)

What does “value for money mean”? A lot ofadvertising campaigns use the phrase “best value foryour dollar”. How would you translate thesesentences?

Work in pairs or small groups and describe a nichemarket and its distinct consumer characteristics (ofyour choice) in detail. Present your description inwriting/orally. (20 minutes)

Using the AIDA model, describe a personal

experience about how you became aware of aproduct, how your interest was stimulated, the phaseassociated with “desire” and then when you finallybought the product. Do this for an expensive andinexpensive purchase. If you feel that you relate tothe Hi Tec model because you feel commitment,loyalty and or advocacy for a product, please

describe that as well. Hand in. (30 minutes)

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Management and Sports 8

Above-the-Line Promotion/Below-the-Line-Promotion

Before reading, you are going to look at some slidesto highlight the key terms and concepts. Please take

jot notes of the key information and terms.

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Above-the-line promotion

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Promotion

! Promotion is about the communication that occurs with customers and potential customers

! Promotion can be used to:" Increase awareness of a product or service"

Encourage sales" Change a brand image" Maintain market share

! Promotion may use above-the-line or below-the-linemethods

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Above-the-line promotion

Above the line promotionuses mass media

to advertise products and services

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Above-the-line promotion

Above-the-line promotion:! Uses paid-for mass media for advertising! Is often used to inform an audience of a product and

persuade them to purchase! Can reach a very large audience! May reach people beyond the target market! Is difficult to measure in terms of its impact! Tends to be more expensive than below-the-line

methods

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Media used in above-the-linepromotion

! Newspapers & magazines! Television! Radio! Cinema! Internet! Billboards and other types of outdoor media

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Targeting customers

Specific market segments can be targeted throughcareful use of the chosen advertising medium :

! Advertising in The Times newspaper is likely to reacha more mature and higher income audience

! Cinema advertising is often used to reach a youngeraudience

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Below-the-line promotion

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Promotion

! Promotion is about the communication that occurs with customers and potential customers

! Promotion can be used to:" Increase awareness of a product or service"

Encourage sales" Change a brand image" Maintain market share

! Promotion may use above-the-line or below-the-linemethods

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Below-the-line promotion

Below-the-line promotionuses methods other than mass-media advertising,

over which an organisation has greater control.

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Below-the-line promotion

Below-the-line promotion:! May be less expensive than above-the-line methods! Is generally used for short- to medium-term

incentives!

Can be used to target specific audiences or evenindividuals! Is often aimed at the consumer (as opposed to

business customers)

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Methods of below-the-line promotion

Methods of below-the-line promotion include:! Sales promotions, e.g.

" Discounts" Buy one get one free (BOGOF)

! Competitions! Sponsorship! Public relations, e.g. through press releases! Direct mail! Point-of-sale displays

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Management and Sports 9

Go to your document and read the two followingsections on Above and Below the Line Promotion.

Pay attention to the following words and beprepared to give a translation. (15 minutes)

As a consumer what promotional strategies havebeen memorable for you? Be prepared to talk aboutyour idea to the class. (15 minutes)

Go to your document and read the section on LiquidMountaineering- A Viral Marketing Campaign

Watch the video - what was the risk of making a

video like this? How did Hi Tec control its viralcampaign from the beginning to the end? Rereadthe section and prepare your response to give to theclass orally. (20 minutes)

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Introduction

In order to gain market share and attract new customers, abusiness needs to be distinctive in the marketplace. It needscustomers to think about its products in a particular way. Thishelps them distinguish its products from those of competitors.

A business seeks to combine all the positive characteristics andattributes of its products in a single brand image and message.

This gives the brand a unique place in the minds of consumersand is known as positioning a brand.

In the past, Hi-Tec shoes were only associated with sport.However, today its shoes are promoted as an outdoor brandassociated with a leisure lifestyle. More than 500 styles areavailable throughout the world. Hi-Tec develops attractive andcomfortable shoes which are lightweight and high quality. They aresold in the mid-price market segment . Founded in 1974, Hi-TecSports is a privately owned British company. Its products are soldin over 100 countries worldwide. It is the global number twooutdoor brand in terms of sales value.

Hi-Tec shoes have always had a high technology focus. However,the brand’s unique selling proposition (USP) now alsoemphasises the company’s four core values:• proud, as Hi-Tec delivers more than the competition• honest, as products deliver on their promises• fun, as it works creatively to provide positive solutions• hungry, as there is always a desire to improve products.

To deliver these values to the consumer, Hi-Tec offers high-qualityshoes at a price that represents good value for money. The sametechnologies that are used to produce sports shoes are used tocreate lightweight and comfortable outdoor footwear.

Over the last two years Hi-Tec has undertaken a market

research programme. The company wanted to know how bestto encourage consumers to engage emotionally with Hi-Tecproducts. It wanted its brand to be recognised both for sportsand also for an outdoor lifestyle.

The brand theme behind the new market position is thatHi-Tec products are ‘inspired by life’. For example, in targetingholidaymakers with high technology cushioned sandals, theemphasis is on having ‘happy holiday feet’. Trail shoes for runnerspromote the ethos that ‘feet feel free’, with runners beingencouraged to think about ‘where next?’

Curriculum Topics• Marketing process• Above-the-line promo• Below-the-line promo• Viral marketing

Positioning: Consumers' perception of the place occupied by a company orbrand within a market, relative tocompetitors.

Market segment: A recognisableconsumer group consisting of peoplewith similar needs and characteristics.

Unique selling proposition (USP):Product with a feature not offered bycompetitors that gives it distinctiveappeal in the marketplace.

Market research: The systematicprocess of collecting and analysing dataabout customers and their relationshipwith products and brands.

Using promotion to position a brand

Hi-Teccore brand

values

Proud

Hone s tHungry

Fun

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This case study illustrates how Hi-Tec Sports developed a newapproach to promoting its brand positioning and engaging withcustomers through a viral marketing campaign.

The marketing proce ss

Customers are central to the marketing process. Marketing starts byidentifying the needs of customers. A business then seeks to meetthose needs by making the right products available when customerswant to purchase and at prices they are prepared to pay.

Marketing strategies are directly related to the overall business

strategy. Hi-Tec’s marketing strategy aims to:• introduce a new brand category to the market• make people excited about the technology in its footwear• gain maximum exposure for Hi-Tec with measurable numbers• create a sense of ‘cool’ about the brand.

Hi-Tec’s key marketing objective is to reposition its brand to open upnew markets. This in turn will increase market share and revenues.

At the heart of the marketing process is the marketing mix. This iscommonly known as the four Ps - product, price, place andpromotion. Key factors in the marketing mix for Hi-Tec shoes include:• product – innovative footwear that provides high performance• price – sold at value for money prices• place – sold online or through premium retailers• promotion – a mix of targeted promotional channels and

methods to achieve market penetration and increased sales.

Hi-Tec adapts its marketing mix for each of its main marketsegments. Examples of its approach in specific markets include:• The junior market – this is a strong sector for Hi-Tec and it

offers hard-wearing shoes on the high street at prices to attractparent purchasers.

• Outdoor sports such as trail running – it offers high performanceproducts with water-repellent qualities using Hi-Tec’s ion-mask TM

technology, priced to compete in the market.• Specialist sports – for niche markets, such as golf shoes. The

same high performance product is promoted through the useof sports ambassadors like Ian Woosnam. By using sportschampions in this way, the brand is linked with achievement.

The AIDA model explains the stages consumers go through beforemaking a purchase.

Hi-Tec uses an approach that seeks to take the ‘action’ stagefurther. It wants customers to remain loyal to the brand after theyhave used its products. Many loyal customers then becomeadvocates. This means that they recommend the brand to others.If a business can get its customers to promote products, it willhave achieved one of the ultimate goals of marketing. Hi-Tec usesmany different methods of marketing communications and above-the-line and below-the-line promotion to achieve this goal.

Above-the-line promotion Above-the-line promotion is based on advertising in mass media,such as newspapers, television, radio, cinema and the internet.

This type of promotion reaches a wide audience, but it can bedifficult to measure and assess its impact. It can be used both toinform the audience and raise awareness of a product or service,as well as to persuade people to buy.

Different media outlets can be used to target audiences in specificmarket segments. For example, an advertisement in The Times

newspaper or one shown on MTV will reach very differentaudiences. The readership of The Times tends to be mature andrelatively better-off, while MTV attracts a much younger audience.

Market penetration: The depth of sales of a product in a particular market.

Niche: A relatively small segment of amarket with distinct consumercharacteristics.

Above-the-line: Promotion throughadvertising on television, radio and theinternet, and in the press, etc.

Below-the-line: Sales promotion usingmethods other than advertising, such asprice promotions and point-of-salesdisplays.

Cu s tomer s are made aware of the product s .

Awarene ss from the promotion s s timulate s their interest .

They develop a desire for the product s .

Cu s tomer s then take action by making a purcha s e.

A

A

I

D

Advocacy

LoyaltyExperience

Commitment

Con s ideration Awarene ss

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Sponsorship: Funding of a person orevent by an organisation in return forexposure of its name or brand.

Point of sale materials: Salespromotion material used where the saleactually takes place, such as displays instores and by tills.

Extranet: A private (restricted)computer network that sharesinformation with an organisation’ssuppliers and customers.

Viral marketing: The process of gettingwide circulation of a message through‘word of mouth’. These campaigns areusually (though not exclusively) hostedon the internet.

Hi-Tec’s advertising emphasises the USP for its brand and its corevalues. The imagery chosen to represent the brand valuesfocuses on people in action - running, hiking, walking - in order tocapture the fun element. Hi-Tec’s above-the-line activities include:• television advertisements for raising awareness with the wider

public, for example in key TV advertising slots during peak programmes, such as sports, in order to attract relevantviewers

• press advertisements in trade or consumer publications. Hi-Tecdeals both with retailers and directly with consumers throughits online shop

• banner advertising on selected websites - this form of paid-foradvertising allows the business to measure responses through‘click-through’ rates

• billboards at locations relevant to the chosen audience, forexample, a sports track.

Advertising can be costly. It is therefore important for Hi-Tec toanalyse the cost-effectiveness of each activity. This can be done inseveral ways. For example, it might monitor the numbers of visitorsto a website or the numbers responding to a sales promotion. It willtrack the increase in sales following a promotional campaign.

Below-the-line promotionBelow-the-line promotion aims to reach consumers more directlythrough forms of communication other than traditional advertisingchannels. For example, Hi-Tec has targeted consumers throughcollaborations with several organisations. It has set uppartnerships with the UK’s National Trust (to promote a newwalking boot) as well as with the Caravanning Club (an audiencewho might be interested in instantly comfortable and lightweightoutdoor footwear).

It uses character branding to promote its products. This meansthat it appoints ambassadors such as Alexandre Poussin, the

world explorer, and Martin Dreyer, from the world of extremesports, to endorse its products. Hi-Tec also uses sponsorshippromote its brand. For example, it sponsors Amr Shabana, one of the world’s leading squash players.

The company also uses other below-the-line activities:• Direct mail – Hi-Tec emails customers, linking the message to

the e-commerce part of Hi-Tec’s website. This means peoplecan go directly to the Hi-Tec online shop to buy goods.

• Exhibitions – Hi-Tec promotes at trade and consumer shows. These allow Hi-Tec to give retailers and consumers theopportunity to see the products first-hand.

• Sales promotions – H-Tec offers both retailers and consumersa range of sales incentives, including discounts, to encouragethem to stock or buy its products.

• Branding – Hi-Tec supplies retailers with point-of-salematerials , such as packaging and store displays and providestraining for retail staff within stores.

• Promotional materials – Hi-Tec’s extranet website sharesmaterial such as brand photography and press releases soretailers can use this material in their own promotions. Thisraises the profile of the Hi-Tec brand and ensures that it isrepresented consistently.

Hi-Tec also uses PR (Public Relations) to create a positive publicperception for its products. This includes issuing press releases,

writing blogs and the use of social networking sites like Facebook.

A more recent way to take advertising to a different level isthrough viral marketing . This is a self-generating activity in whichpeople pass on information to other consumers through theinternet. It can spread a marketing campaign more widely andmore quickly than traditional advertising. This is an example of consumers becoming advocates.

Liquid Mountaineering –a viral marketing campaign

A key part of Hi-Tec’s brand positioning has been the development

of a viral marketing campaign called Liquid Mountaineering. Thiscampaign was inspired by the water-repellent qualities of Hi-Tecshoes. It was devised to reflect Hi-Tec’s ‘inspired by life’ brandproposition and the brand repositioning strategy. It aims to createa sense of adventure and push back physical boundaries. At thecentre of the campaign is a video commissioned by Hi-Tec whichwent live on YouTube in May 2010. This video ‘documentary’shows three men apparently running on water. They achieve thismiraculous feat thanks to their water-repellent shoes.

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The Liquid Mountaineering campaign does not follow the usualforms of advertising and promotion. Hi-Tec wanted to emphasisethe spirit of ‘fun’ in its brand. The video is therefore a piece of pure entertainment.• Although the video is based around Hi-Tec’s ‘hydrophobic’

footwear, it does not mention the brand directly.• The documentary style and semi-scientific approach to

‘running on water’ aims to get consumers talking and thinkingabout the brand differently.

• To add realism, one of the video participants set up a blog theprevious year (www.liquidmountaineering.blogspot.com). This

‘back story’ created excitement in the build-up to the event.

In launching the campaign, Hi-Tec recognised the massive powerof the internet. It chose to host the video on YouTube. This wasbecause this website has a good fit with both the attitude of thevideo (youthful and fun) and the target audience (prospectiveconsumers). The fact that there was no mention of the Hi-Tecbrand meant it was not perceived as a sales message.

It caught the imagination of millions of people in an incrediblyshort space of time as viewers emailed or tweeted their friendsabout the video. There have been press articles and interviews on

TV shows. Some people wrote blogs about the video; others evenset up groups to try the ‘running on water’ sport for themselves.

The exchange of messages on sites like Facebook and Twittergave extra impetus to the swell of viewing numbers.

Having gathered impressive viewing figures in just two weeks,Hi-Tec was able to extend interest in the promotion with a new setof promotional activities:• It put out a press release in which it explained the hoax and

claimed ownership of the video.• Hi-Tec also hosted a video on its website showing how the

Liquid Mountaineering video was made.• The symbol Hi-Tec uses for its ion-mask TM technology shows a

man running on water, linking the video messages with the realtechnology.

To date (November 2010), the video has attracted more than

7.5 million viewers. It has been heavily featured in the press,

including The Sun, Daily Star, and The Guardian, as well as ontelevision channels around the world, including Rude Tube. This

has opened up the Hi-Tec brand to a worldwide audience. Hi-Tec

has also received very positive feedback on the campaign from

trade organisations. This has boosted awareness and reinforced

the fun element of the Hi-Tec brand.

As a marketing process, the video has been extremely cost-

effective. Hi-Tec has received a good return on the investment it

put into making the video. The company estimates that the Liquid

Mountaineering viral marketing campaign has given a return worth

10 times the initial investment. The average return on marketing

investment is usually only around four times. This indicates how

effective Liquid Mountaineering has been in helping to position the

Hi-Tec brand with prospective consumers. The ongoing marketing

campaign for ‘shoes that love water’ will encourage consumers to

consider buying Hi-Tec products. Watch the video for yourself by

typing ‘Liquid Mountaineering’ into Google or YouTube.

Conclu s ion

One of the most important things in managing a brand is to be

able to position it positively relative to competitors in the minds of

consumers in target markets. The brand needs to communicatethe key values of the products and the business.

Hi-Tec’s four key brand elements are proud, honest, fun and

hungry. These elements have been developed to be closely

associated with its products. Hi-Tec aims to emphasise these

factors within its unique selling proposition.

The Liquid Mountaineering video demonstrates the power of viral

marketing. It built a huge following. It got people talking - was it

fake or not? It opened the brand to a new global audience.

This campaign has helped Hi-Tec to change consumer

perceptions of its brand and reach a worldwide audience. It has

also provided Hi-Tec with the potential to build on the campaign

through other more traditional promotional activities.

Q UE S T I ON

S

1. What is meant by a brand?

2. Explain what is meant by a unique selling proposition.

3. To what extent do you think above-the-line promotion

is the most effective method for Hi-Tec?

4. Evaluate the benefits the Liquid Mountaineering viral

marketing campaign has brought to Hi-Tec. Suggest

one way in which the company could either build on

this or link to other promotional activities.

www.hi-tec.com

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Above-the-line promotion – Hi-Tec

Founded in 1974, Hi-Tec Sports is a privately owned British company. Its products

are sold in over 100 countries worldwide. It is the global number two outdoor brandin terms of sales value. In the past, Hi-Tec shoes were only associated with sport.However, today its shoes are promoted as an outdoor brand associated with aleisure lifestyle.

Above-the-line promotion is based on advertising in mass media, such asnewspapers, television, radio, cinema and the internet. This type of promotionreaches a wide audience, but it can be difficult to measure and assess its impact. Itcan be used both to inform the audience and raise awareness of a product orservice, as well as to persuade people to buy.

Different media outlets can be used to target audiences in specific market segments.

For example, an advertisement in The Times newspaper or one shown on MTV willreach very different audiences. The readership of The Times tends to be matureand relatively better-off, while MTV attracts a much younger audience.

Hi-Tec s advertising emphasises the USP for its brand and its core values. Theimagery chosen to represent the brand values focuses on people in action - running,hiking, walking - in order to capture the fun element. Hi-Tec s above-the-lineactivities include:

television advertisements for raising awareness with the wider public, forexample in key TV advertising slots during peak programmes, such as sports,in order to attract relevant viewerspress advertisements in trade or consumer publications. Hi-Tec deals both

with retailers and directly with consumers through its online shopbanner advertising on selected websites - this form of paid-for advertisingallows the business to measure responses through click-through ratesbillboards at locations relevant to the chosen audience, for example, a sportstrack.

Advertising can be costly. It istherefore important for Hi-Tec toanalyse the cost-effectiveness ofeach activity. This can be done inseveral ways. For example, it mightmonitor the numbers of visitors to awebsite or the numbers respondingto a sales promotion. It will track theincrease in sales following apromotional campaign.

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Below-the-line promotion – Hi-Tec

Founded in 1974, Hi-Tec Sports is a privately owned British company. Its products

are sold in over 100 countries worldwide. It is the global number two outdoor brandin terms of sales value. In the past, Hi-Tec shoes were only associated with sport.However, today its shoes are promoted as an outdoor brand associated with aleisure lifestyle.

Below-the line promotion aims to reach consumers more directly through forms ofcommunication other than traditional advertising channels. For example, Hi-Tec hastargeted consumers through collaborations with several organisations. It has set uppartnerships with the UK s National Trust (to promote a new walking boot) as well aswith the Caravanning Club (an audience who might be interested in instantlycomfortable and lightweight outdoor footwear). It uses character branding topromote its products. This means that it appoints ambassadors such as Alexandre

Poussin, the world explorer, and Martin Dreyer, from the world of extreme sports, toendorse its products. Hi-Tec also uses sponsorship to promote its brand. Forexample, it sponsors Amr Shabana, one of the world s leading squash players.

The company also uses other below-the-line activities:• Direct mail Hi-Tec emails customers, linking the message to the e-

commerce part of Hi-Tec s website. This means people can go directly to theHi-Tec online shop to buy goods.

• Exhibitions Hi-Tec promotes at trade and consumer shows. These allow Hi-Tec to give retailers and consumers the opportunity to see the products first-hand.

• Sales promotions H-Tec offers both retailers and consumers a range ofsales incentives, including discounts, to encourage them to stock or buy itsproducts.

• Branding Hi-Tec supplies retailers with point-of-sale materials , such aspackaging and store displays and provides training for retail staff withinstores.

• Promotional materials Hi-Tec s extranet website shares material such asbrand photography and press releasesso retailers can use this material in theirown promotions. This raises the profileof the Hi-Tec brand and ensures that it isrepresented consistently.

Hi-Tec also uses PR (Public Relations) tocreate a positive public perception for itsproducts. This includes issuing press releases,writing blogs and the use of social networkingsites like Facebook.

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3. Explain why above-the-line promotion would be suitable for an organisationlike Hi-Tec.

Reasons include:•

A large organisation like Hi-Tec is more likely to be able to affordabove-the-line promotion than smaller organisations.• Above-the-line promotion reaches a large audience. Since Hi-Tec sells

in 100 countries worldwide and is the second largest outdoor brand, ithas to reach a wide audience with its promotional activities.

• Above-the-line promotion is good to raise awareness, inform potentialcustomers and persuade them to buy the products.

4. Analyse the reasons why Hi-Tec analyses the impact of its differentadvertising campaigns.

• There is an opportunity cost of spending money on advertising. Hi-Tec

must make sure that resources are used to the greatest effect.• Above-the-line promotion is very costly and will therefore impact on

profit.• There are many methods of promotion, so Hi-Tec will only want to

choose the methods that are having the greatest impact on sales (orother relevant objectives).

What have you learned?

Expected learning would include:• Above-the-line promotion uses mass media.• Above-the-line promotion reaches a large audience, often beyond the target

market.• Above-the-line promotion can be very expensive.• This type of promotion is useful to inform and persuade. • Examples of methods of above-the-line advertising include e.g. TV, radio,

newspaper, internet, billboards.• Different advertising media can be chosen to reach different target markets.• Firms should assess the impact of their advertising campaigns, although

sometimes it is difficult to assess their impact.

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Teacher guide

Below-the-line promotion – Hi-Tec

Where does the lesson fit?

This session could either fit before or after asession on above-the-line promotion, followinga general introduction to promotion and itspurpose.

Suggested resources & activities related tobelow-the-line promotion and Hi-Tec

• Full Hi-Tec case study• Above-the-line Hi-Tec lesson resources• Hi-Tec crossword• Hi-Tec word search

Suggested timings for the session

10 mins Starter, e.g. Hi-Tec crossword5 mins Read the case study

15 mins Questions15 mins Task ! recommend and justify different below-the-line methods of

promotion for the given scenarios15 mins Review - what have you learned?

Answers to questions

1. What is meant by below-the-line promotion?

Below-the-line promotion uses methods other than mass media over which theorganisation has greater control e.g. sales promotions and sponsorship.

2. Why do you think Hi-Tec now uses social networking sites, like Facebook, forpromotion?

• As the number of users of Facebook is so large, by using this medium Hi-Tec is able to reach a very large audience of potential customers for itsproducts.

• The types of people that use Facebook are also likely to fit with the targetmarket for Hi-Tec products.

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3. Explain how the methods of sales promotion Hi-Tec uses with retailers might

differ from the methods used with consumers.

• Hi-Tec will want to sell large quantities to retailers, whereas consumers

are only likely to buy small numbers. The methods of sales promotionemployed will therefore have to reflect this. For example, discounts forbulk purchases will be suitable for retailers, whereas a money-off couponwould be more suitable for an individual consumer.

• In addition to this, the sales promotion must have value to the customer,whether that is a retailer or consumer. For example, the chance to win ina competition is likely to have more value to a consumer than a retailer.

4. Analyse the reasons why Hi-Tec may choose to use below-the-line methods ofpromotion in addition to mass-media advertising (above-the-line).

Reasons may include:• Hi-Tec has more control over below-the-line methods• Below-the-line promotion can be used to target specific groups of

customers e.g. caravan club members• Below-the-line promotion is often less expensive than mass media

advertising• Below-the-line methods can be used to reinforce or follow up a message

given through advertising e.g. point-of-sale displays used following a TVadvertising campaign

What have you learned?

Expected learning would include:• Below-the-line uses methods other than mass media advertising.• An organisation has more control over below-the-line promotion.• This type of promotion can be used to reach a specific target market.• Below-the-line promotional methods are often less expensive than above-the-

line promotion.• Methods of this type of promotion include: sales promotion, sponsorship,

direct mail, point-of-sale displays, public relations.• Businesses can utilise social media and technology for below-the-line

promotion, e.g. Facebook, Twitter


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