L.A. Gear is an athletic shoe manufacturer that is struggling in the athletic footwear industry. The company is ranked number three following Nike and Reebok. L.A. Gear is well known to its female customers due to their fashionable shoe line. To be able to gain some ground on the other shoe manufacturers L.A. Gear is going to have to develop a men's shoe line and capture some of the male buyers. This is not going to be an easy task since Nike and Reebok spend an extensive amount of money on their advertising campaigns including celebrity spokesmen. L.A. gear not only needs to capture the male buyers but they also need to maintain their female customers so a delicate balance is needed. An extensive research and marketing campaign will be necessary to penetrate this market and still maintain its loyal customers and brand recognition. Once the research is gathered a full scale marketing campaign will follow once the new direction of the company is determined.
An extensive research study will be initiated determining what the male customers want in an athletic shoe. These studies will take place online, by ground mail, and by telephone. Once the information is gathered the various types of men's shoes will then be developed focusing on the most popular needs determined by the survey results, which will include a question regarding price. L.A. Gear will then compare the needs of the customers to the industry leaders and determine how the leaders achieved the needs of the male customers and what opportunities L.A. Gear could use to "one up" the competition. L.A. Gear's shoes already focus on comfort, style, and fashion and will now include high performance.
After the direction of the new shoe line has been developed, a price of each shoe will need to be determined to see if a profit can still be made. The price will be benchmarked against other shoes in the same category to make them competitive in the buying market. L.A. Gear may even try to undercut the prices if they are still able to maintain a profit to entice the consumers to try their new product and gain their loyalty. They must be careful though not to make them to inexpensive because they want the customer to feel that these are the shoes they need to perform better and the expense would be well worth it.
The most recognized brands amongst US males in the sports and fitness clothing market are Nike, Adidas, Reebok, and Puma (Statista, 2014). However, there is a large amount of opportunity to gain market share as only Nike hold a high percentage favoritism from male shoppers (Statista, 2012). Multiple brands have a stronger focus on women’s clothing such as: Fabletics, Athleta, and Lululemon. Lululemon has a similar business model however the brand has a stronger connection with women and yoga.
Sports Inc. has become a major player in the basketball shoe market. Our products are second to none; with ultra lightweight footwear designed to ensure player safety -- our athletes are just as happy as their loved ones. However, our profits have been stymied by our lack of product diversity, we’ve reached the mature stage in the basketball shoe PLC , and therefore, need to look into extending our product line into other sports. I propose we use our state-of-the-art shoe technology to breach the football cleat market. Football cleats may not be the exciting “new-to-the-world” product that makes a big splash, but I think it can be a source of great value to the company.The environment surrounding football is an interesting one and one that
CIMA Mountaineering, Inc. is a company manufacturing in hiking and mountaineering boots for beginner to experience hikers. CIMA sales and profit had grown steadily within the last several years. However, CIMA growth is beginning to slow down as a result of foreign market and changing market. The company is under consideration of two marketing proposals, these two marketing proposals will discuss about marketing strategies for increasing sales and profits of the company. CIMA Mountaineering, Inc. has to decide whether they should enter the "weekend" segment of the hiking boot market or extend the existing lines of boots for mountaineers and hikers to achieve their objective.
To further build our business, we will leverage out tremendous brand equity, dominant position in fashion-forward footwear, and industry-leading design team and will work to ensure that Steve Madden Ltd. emerges as a global lifestyle branded company.” They really want to make sure they are delivering the right trends and products for their customers and expand to a lifestyle brand. The vision statement for Steve Madden “Give fashion forward men and women a unique way to express their individuality through style resulted in millions of customers worldwide and propelled his designs to the forefront of the fashion industry.” The vision is constantly changing for Steve Madden and wanting to keep up to date with the latest trends and fashion statements keeps them innovative and different from their competitors Guess and Kenneth
The visual image makes the audience want to read my article on the Nike shoes as they look visually appealing. The use of black and white font colour makes my article look more sophisticated and striking at the same time. It also makes the article easier to read and more appealing. Simple, short-sharp paragraphs helps me get straight to the point about Nike Hypervenom phantom II FG shoes and allowed the audience to be engaged right until the end. I used various language techniques to engage and attract the audience’s attention to read the article.
At the meeting, management revealed plans to address both top-line growth and operating performance. To boost revenue, the company would develop more athletic-shoe products in the midpriced segment3a segment that Nike had overlooked...
Nike’s goal is to remain unique and different from others in terms of the items offered on the market. Arguably, Nike belongs to a monopolistically competitive market as there only a few organizations with the ability to regulate the amount charged for their product which means they cannot make their prices high as this is likely to make customers move on to other available choices (Nike, Inc., 2012). However, Nike can find a balance between the prices to charge for their products and remaining competitive with other companies in the industry. Nike has formed a distinction between the appearance and performance of their footwear and that of their competitors. Although products are differentiated from other companies, they still influence each other because they are items of the same
When comparing prices, consumers can find the exact same style Nike boot in Adidas and pay a lower price. Essentially what the consumer is paying extra for is the Nike brand. Looking back at my journal you can see I wore the Adidas boots one time, then went out and bought Nike boots. “Brand loyalty is based on an emotional connection toward the brand and a conscious commitment to find this brand each time the consumer purchases from this category.” 112 Brand Promotion I could have worn the Adidas boots for free but I spent the time and money to go purchase the Nike brand. “brand loyalty and advertising work together to create another important economic effect related to pricing flexibility and profits. When consumers are brand loyal, they are generally less sensitive to price increases for the brand.” 45 Advertising and Integrated Brand Promotion Being able to raise prices but still keep the consumer market is very valuable. This is one of the main reasons brands strive to have brand loyal
Have you ever found sneakers you want so badly but they’re too expensive? Sneakers these days are high in money and most people can not afford to spend money on shoes that will get minimal use. I think sneaker prices are getting too high and they need to get lower for the people who love them. “A shoe is not only a design, but it's a part of your body language, the way you walk. The way you're going to move is quite dictated by your shoes.” said by Christian Louboutin, who is a famous shoe designer from France.
In reviewing the case of New Balance Athletic Shoe, Inc. it is clear that there are a few major problems that the company is facing. First of all, New Balance falls behind its other major competitors, Nike, Adidas and Reebok, in the area of marketing. Unlike its competitors, New Balance does not undertake celebrity endorsements. This puts them at a disadvantage when it comes to brand building. This also causes the company to lose out somewhat on gaining awareness on a global scale as it lacks endorsements in major sporting events. Most global brand names generate strong brand recognition through celebrity endorsements in sporting events that would give them the needed momentum to carry their brand name further into the global market.
The Shoe Industry consists of a multitude of footwear categories, varying in utility, style and occasion. When overseeing the market for the shoe industry, we must look at the influence of all shoe trades universally to comprehensively understand how the disparities in sales relate to the needs of specific regions. The global retail market within the shoe industry currently represents $185 billion, driven primarily by Asian and Latin American economies and is expected to reach $211.5 billion by 2018. The growth rate globally was 6% between 2004 and 2008, contrasting to the 2% compound annual growth from 2008 to 2012. The United States holds over 24% of the overall industry size it projected over $48 billion in annual revenue in 2012. Domestically, the growth rate has been flat at 0.3%. On a unit volume basis, global footwear consumption for 2012 is approximately 11,421.3 million (in pairs), where the United States makes up roughly 2,741.1 million (in pairs). By 2018 the U.S. Census Bureau has forecasted a steady decline within demand domestically of 3% and an increase of 1% globally.
Nike’s focus for fashion forward women is the following: lead the athleisure trend, increase advertising, and the introduce the #BetterForIt social media campaign. We need to focus on the athleisure trend by increasing our portfolio for the women target market. Athleisure is already 20% of the firm’s revenue and we need to recognize that women are leading this fashion movement. Under Armor and Lululemon are already making headways in this fashion focused market. We need to emphasize our athletic technologies, promoting lighter fabrics and better performance, while still maintaining a level of comfort and fashionability. Increasing the portfolio means nothing if women don’t know we’ve done just that. Nike will need to increase advertising specifically with this target market in mind. The #BetterForIt campaign is one important aspect of these advertising efforts. Similar campaigns should promote and help “normalize” athletic wear in everyday
In order to boost revenue, management decided to develop more athletic-shoe products in the midpriced segment which are sold for $70-$90 a pair. As for the cost side to be considered, Nike planned to exert more effort on expense control. The company executives forecasted that their long-term revenue-growth targets of 8% to 10% and earnings-growth targets of above 15%.
The second recommendation for Under Armour is that they should develop a shoe line and marketing campaign for women, based on the idea of everyday athlete. Focusing on the fact that women want to compete and have the same performance benefits that everyone wants, but also have a shoe that is stylish enough that she can wear straight
Most people in the world gratefully have the chance to make their own choices and decisions every day. One of those choices and decisions that they make is what they are going to put on their feet for the day. Unknowingly the decision of what type of shoe a person wears for a specific day will affect their entire day. There are also many factors that contribute to what type or style of shoes a person buys or wears such as economic status, design, usefulness, and popularity. As of today, there are various types of shoes which are sandals, heels, boots and athletic and casual shoes.