Speedo: Leading the Swimwear Market

Case Code: BSTR327 Case Length: 20 Pages Period: 2002-2009 Pub Date: 2009 Teaching Note: Not Available

Price: Rs.400 Organization: Speedo International Limited Industry: Swimwear Countries: UK; Global Themes: Market Leader Strategies, Growth Strategy

Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

This case is about Speedo International Limited, a part of the London-based Pentland Group, Plc. Speedo is the world's leading swimwear brand. The case highlights the strategies adopted by the company to maintain its position in the global swimwear market. Founded in 1914, Speedo was a pioneer in sports fashion wear. Competitive swimsuits were a core focus area of Speedo. Since its inception, Speedo had been innovating in the competitive swimsuit market to manufacture suits aimed to enhance the performance of swimmers. Over the years, its swimsuits had been hailed as innovative and athletes sporting its swimsuits had won prizes and broken records in various swimming events. More recently, at the 2008 Beijing Olympics, Speedo was the biggest brand success story.

Athletes competing in Speedo swimsuits won 47 medals and broke 23 world records. As of 2008, in the US$200 million performance swimwear market, Speedo was the market leader with about 60% of the market share.

The case discusses the strategy adopted by Speedo, particularly its technology strategy and how it emphasized the fashion aspect of the brand. The case also discusses the promotion and distribution strategy of Speedo - how Speedo enhanced its brand image by sponsoring world-class athletes, etc. The case also discusses the competitors of Speedo and the controversy surrounding its new swimsuit, the LZR Racer, which some critics felt was giving the wearer an unfair advantage. The case concludes with the challenges faced by Speedo in the performance swimwear market which had a significant effect on the brand's overall performance. With FINA formulating new guidelines for swimwear manufacturers worldwide, designing new suits while adhering to the new rules was expected to be the biggest challenge for Speedo. Another challenge before the company was to convert the high visibility and publicity gained by the Speedo LZR Racer in the Olympics to sales of all the products in its overall swimwear portfolio.

Issues

The case is structured to achieve the following teaching objectives

• Study the business strategy adopted by Speedo - a market leader in the swimwear market
• Understand how Speedo attained market leadership in the global swimwear market
• Examine the marketing strategies adopted by Speedo
• Analyze its position in the swimwear market and identify the future challenges before Speedo
• Explore strategies that Speedo could adopt to maintain its leadership position and improve its position in the swimwear market

Contents

Introduction
Background Note
Speedo Products - Combining Technology and Fashion
Two-Pronged Strategy
Sponsorship
Speedo as a Fashion Brand
Distribution
Competitors
Challenges
Exhibits

Keywords

Strategy, Market leader strategies, Marketing, Distribution, Product design and development, Elite swimwear market, High-end swimsuit market, Performance swimsuit market, Beachwear market, Fashion brand, Pentland Group Plc, Speedo International Limited, FINA regulations, Fastskin, Speedo LZR Racer, Warnaco Group, Inc., Aqualab, Comme des Garcons

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