New Balance
Outline
- Introduction and current target customer
- 4 Ps business analysis
- Objective
- Recommendations
- Conclusion
- Q & A
Do Bac Ha - s3427408
Tran Thi Lan Huong - s3515538
Doan Ngoc Minh Phuong - s3515352
Le Pham Bao Linh - s3515432
Ha Kim - s3515417
Recommendations
Product
“Ageless Marketing” strategy
New Balance footwear accounts for:
Keep using line extension Strategy
- Create new product line for mature people or ageless product line
- Enhance comfort-ability, protect-ability.
- Enhance waterproof ability
Keep using Brand extensions and 'made in America' strategy.
Differentiation based on Augmented level:
- Trace-in: Allow users get replacements
- Strengthen customer services...
- 10% sales of CRC
- 50% of customers are MATURE CLIENTS
TARGET: fiscal year
2015-2016
Price
New Target Customer
Less frequent sales promotion:
- Maintain brand image of NB.
CSR initiatives:
- Recycle strategy
- Protect environment
- Strengthen brand equity
Mature people
Age: > 40 years.
Purchasing power: increasing disposable income.
Psychological Characteristics :
- Act younger, enjoy their "second youth" (DataMonitor, 2005)
- Self actualisation - desire to fulfill the highest needs - <the top part of the Maslow scale>.
Place
Introduction
Strategy: Product Adjustment - functional discount - reduce prices for customers/athletes => gym oriented.
- negotiate for
- more profit
- customers awareness
=> Partnership: gyms + some sports school + stadium.
Promotion
- Expand distribution channel
- Avoid conflict between producer and business distributor
- Avoid Counterfeiting
- "Vietnamising" or creating suitable slogan => more persuasive messages
Different outlets, carry different shoes styles:
- Create events which promote people do exercise
- Advertising on Television, Magazines: increase frequency
conclusion
- In more than 120 countries (Market Line 2014).
- More than 100 years of history - from 1906 (New Balance website)
- Headquarter in Boston, Massachusetts
- Anne Davis, James S. Davis and 20 senior are the co-chairmen
- Market share in Vietnam 0.3%
- Products: basketball, tennis, baseball, running shoes etc.
Marketing Mix - 4Ps
Price
Product
Price Adjustment Strategy
Cash discount
discount every 5.2 weeks
Three level of products
Price Adjustment
Trade in allowance
Brand Development: Brand extensions
1.200.000VND – 2.500.000VND : reduce 250.000đ
more than 2.500.000đ: reduce 500.000đ
Price Adjustment Strategy
quality discount
Instead of discount 80%
Recycle Strategy only reduce 10-20% but show NB protect environment
New Balance = convenience product ?
Brand equity strategy
Slogan
Brand Development: Line extension
PRODUCT MIX
'Made in America' strategy
product line
Psychological pricing
95 : Product for Royal Family
Place
Promotion
PR - social network
Business marketing Channel
Disadvantage of the only distributor
PR - sponsorship
EFFECTIVENESS
- mostly announcing discounts that are not attention grabbing
- too reliant on the globally recognised brand awareness of NB
Advertising
(communicated via Online Magazines)
EFFECTIVENESS:
- Only interact with runner enthusiast that are the youth
- Lack of engagement with to new prospects that are runners: those from other target markets - older generations…
Sales Promotions
(communicated via Facebook)
Chosen channels: Online Magazines
- KENH14 - 6th on Alexa’s Top Site in Vietnam
- ZING- ranked 22th, with most viewers are college students and recent graduates
Analysis of channels:
- Reach: wide among youths
- Frequency: read by youth on daily basis
- Impact: low - youth are overwhelmed by ads
Competitions
Target customer
Information discussed
- Fashion tips
- Pricing discounts of CRC
Coupons
Premiums
ZING.VN
Vouchers
KENH14
EFFECTIVENESS: not likely
- Discounts are announced via 2 channel
- Facebook page
- The stores itself
- Sweepstake
- the viewer barely know who the winner is
- the winner did not realised she win NB’s sweepstake
- viewers were jealous of the winner -> unhealthy atmosphere
- Unable to capture the attentions of potential buyers who are not Facebook users.
References
- Zing Vietnam (2014), Accessed 10 Dec,
[http://news.zing.vn/Phong-cach-noi-bat-den-tu-mau-sac-huynh-quang-post468205.html]
- Kenh14 (2014), Accessed 6 Dec
[http://kenh14.vn/fashion/new-balance-con-sot-giay-moi-danh-cho-gioi-tre-20130320122529521.chn]
- Various posts on New Balance Vietnam page (2014), Facebook, Accessed 13 Dec
[https://www.facebook.com/NewBalanceVietnam?fref=ts]
- Official homepage of CRC Supersport Vietnam, SuperSportsVietnam, Accessed 8 Dec
[http://supersportsvietnam.com/]
- Datamonitor, 2005, ‘New Balance: Case Study - using universal values to target seniors’, London, Accessed Nov 9
[https://equella.rmit.edu.au/rmit/file/1d09f005-1cb0-c7e9-6e74-4a7c757537e2/1/cscm0071.pdf]
- Teenagers and Young adults
- Source of Income: parents allowances, jobs
- Characteristic: high willingness to have better appearance