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Vans

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by

Lucas Neo

on 18 March 2013

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Transcript of Vans

Crazy Extreme Unexpected Unconventional Cool Awesome INSANE Selling point: Presented by:
Leelar, Pranesh, Lucas, Esmah, Husnain The "Authentic" Targeting Segmentation:
- Youths 12-24; male and female (but
lower income segment at these ages)

Targets:
Youthful lifestyle & culture
- Core sports - skateboard
- Originality and expression - style

Strategy: **Concentrated marketing!**
- Overlap of segments
- Skate boarders are a niche market Street & skate culture Action sports events Underground music "It is a culture of music, art, action sports, street culture all wrapped together around this basic-looking shoe. That is really what it is." - Palladini, Vans marketing VP Price Mix of Good-value and competitive pricing
Strategy: product line & psychological pricing
- $40-80 (Skate performance)
- $70-90 for their signature and pro shoes (for boys skate shoes - $45)
- Casual skaters and youths want cheaper shoes Product Place Wholesalers partners (40-45%)
1. Independent speciality stores
2. Mall based specialty stores
3. Moderate departmental stores
- place products where targets shop Promotion Differentiation & Positioning "You know, at the end of the day, what you're doing is you're capturing cool." - Palladini, Vans Marketing VP Consumer product - Shopping
- Compare style, design, quality, price
- Many skate shoe brands

1. Attributes
- Great quality (Durable); Iconic features (waffle sole tech); cool style (unique customization)

2. Branding
- Major licensing and co-branding
- Develop brand through line and brand extension Metallica Vans Marvel Vans
Direct-to-consumer (55-60%)
- Skateparks(only U.S.), retail stores (add 200 more)
- E-commerce; largest potential (40%)
- Q4 2012 saw 18% DTC growth
Key direction: Geographical expansion Vans Retailers
&
Wholesalers Consumers demand demand Producer marketing activites (consumer advertising, sales promotion, others Pull strategy! =Explosive growth
=Good growth
=Stable market APAC:
- Revenues expected to triple

China:
- 8% of brand revenue
- E-commerce growth
- Sell on Taobao Americas:
Currently represents 70% of revenue EMEA:
- add $350m by 2016
- launched 6 E-stores in 2012 Promotion mix; their ace-in-the hole:
1. Reminder advertising
- "advertainment"; Youth and sports related media

2. Public relations: Special events & athletes
- Skate tours, Warped tour, 'Custom culture' ($50,000 for art progam), etc.
- Legends, Pro, and amateur skate athletes

2. Sales promotions: free merchandize
- During Warped Tours; redeemable codes for shoes

3. Direct marketing: Internet
- 15 unique sites; strong social media presence Consumer Vans Consumer Retailer Wholesaler Consumer E-Commerce/Retail } DTC Multi-channel
distribution Benefits of DTC:
1. Reduced costs, higher margins.
2. Flexibility - react to customer needs
3. Customer intimacy - maintain authenticity Personal Selling Advertising Public Relations Direct marketing Sales promotion YOUTH SKATE
CULTURE
&
LIFESTYLE

COOL Integrated Marketing Communications Product differentiation
- Line and brand extension

Image differentiation**
- significant differentiation through promotion A whole lifestyle and culture surrounding a simple shoe The perceived benefit of Vans is greater than the cost of the shoe Create/maintain of high brand equity as a lifestyle and core sport company 1. Distinctive image

2. Flexibility and customer intimacy through DTC 1. U.S-centric promotion mix

2. Current limitations of their E-commerce 1. Culture of APAC regions

2. Other brands promoting youth lifestyle 1. APAC expansion and DTC; especially E-commerce

2. Signed agreements with IMG to promote skateboarding S W O T } Competition Positioning strategy Competitor strategy (Tracy & Wiersema)
Market nicher:
- Product leadership
- Providing top range skate shoes; dedicated to innovation

Market challenger:
- Customer intimacy
- Like Vans, it is linked to youth lifestyle and culture DC - higher price for better quality & technology

Converse - Like Vans it offers more, but does so at a slightly higher price Porter's 5 Forces Low:
- Products going into the shoe are commodities
- Ease of supplier transfer High:
- Converse and DC are substitutes due to similar market offerings Average:
- High concentration ratio Low:
- Skaters identify with Vans' image
- liscensing & Co-branding contracts Pro collection Skate
Performance Classic
Collection LXVI PLC - Style
- In general, Vans shoes are seen as the basics for skating, especially their classic collection which has a style type PLC. Retailer **Strong promotion through channels that youths engage in:
- music events
- TV entertainment
- Internet
- Their role models
- Skate tours and events Top Tens List Overview of the Competition
Full transcript