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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

Objective

“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

10% sales

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:

  • Keep updating FB
  • 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

3 tiers of price levels.

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

  • Age: Between 15 to 30.

  • Source of Income: parents allowances, jobs

  • Characteristic: high willingness to have better appearance
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