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Vans: Skating on Air

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Yunus Şahin

on 6 November 2014

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Transcript of Vans: Skating on Air

Vans: Skating on Air

Vans off the Wall
Fourteen year old boys have three things on their mind: sports, music and girls. Our goal is to own first two... the third, we'll let the kids handle on their own.
-Gary Schoenfeld, CEO of Vans
Enviromental Analysis
California-based company: Vans
Target Market
Vans' target market was formed by alternative sporters
1960s - 1970s
Customized shoes helped Vans to expand the business
SWOT Analysis
The Turnaround
Paul Van Doren returned to revitalize the company
Managed to get the company out of debt and then sell the company in 1988 to a private equity firm, McCown, DeLeeuw Co.
The Early Days
New Stores
-Direct selling to customers
-Only business who sell only sneakers
-Steve Van Doren, Paul's child, was passing out the flyers
Customized Vans
-Everyone could choose their own canvas fabric and color.
-No inventory problems
-Easy-to-wash shoes
60s
-At the end of 60s, every school in California, the cheerleaders, the drill teams and marching bands, they were all wearing Vans shoes.

-Small but loyal following among California
70s and American Youth
Anti-establishment
Anti-Vietnam
Anti-War

Dogtown, a depressed area of Santa Monica, California
Z-Boys
-Z-Boys, group of teenagers in Dogtown
-Creating a new style of skateboarding
-They dominated the national skate competition with wearing Vans shoes

-Paul Van Doren turned the company over to his brother James.
Entering new Markets
-James Van Doren broaded Vans's product mix.
-Vans was producing shoes for baseball, football, basketball, soccer, wrestling, boxing etc
Bankruptcy: 1984
-High production costs because of California-based factory
-Strong competition from mainstream brands
-Unreceptive market
Opportunities
-High income
-Skateboarding and Wakeboarding are very popular in California
Threats
-Very powerful competitors
-California is far away from any other cities
-Other sport types are not common in California as skateboarding or wakeboarding
Vans' Core Sports
Opportunities
-To create awareness of different sports in emerging markets
-Tie-ups with sport events
Threats
-Competition from other brands in the same segment
-Duplicate and fake product replicas
Gary Schoenfeld
Took over operations
At the end of 90s, there were 25 million people interested in alternative sports.
Promotinal Mix
Triple Crown Series
Vans Warped Tour
Vans Skateparks
Channel Mix
+Independent Specialty 'Core' Skate Sports
+Mall-based Specialty Stores, Better Department Stores and Sporting Goods Stores
+Moderate Department Stores and Family Shoe Stores
Based on Jim Harvey's speech structures
Yunus Şahin
Bertan Frayman
Ceri Çukran
Uygar Eti

Founded in 1966 by Paul Van Doren with his brother and two partners.

Shoes that 'built like a battleship'
Skateboarding was dying
-Market began to decline
-Dozens of skateparks had closed because of cost of liability insurance
-Skateboarding replaced with other alternative sports
Turn over the company
-Skateboarding had died by the end of 1980
Strengths
Weaknesses
-Customized shoes
-High product quality
-Strong brand reputation
-Low prices
-Focused on mostly skateboarding style of clothing
-Hasn't been able to penetrate emerging markets
The Product Mix
Signature Collection
Pro Series Collection
Skate Performance Collection
Skate Casual Collection
Classics Collection
Competition
Larger Companies: Adidas, Nike
Medium-Sized Companies: Airwalk, Skechers
Small but hardcore Brands: DC, eS
By 2002, there were 12 million skateboarders in USA.
Schoenfeld's Organization
-Vans was organized into three business units: retail, wholesale and international
-Schoenfeld reorginized the company along six business lines:
1. Men's Footwear
2. Women's Footwear
3. Kids' Footwear
4. Apparel
5. Entertainment
6. Hard Goods
Full transcript