A Report on the marketing theory and concepts used with New balances 2017 Fresh Foam Zante v3 marathon joggers

Report prepared for

Australian marketing institute

Prepared by

Luke Houston

University of the Sunshine Coast

Queensland

September 2017

Tutors name: Bruce Cooper-McKenzie

Word count:

Referencing style: Harvard Referencing

EXECUTIVE SUMMARY

The purpose of this report was to suggest the incorporation of using relevant marketing theories and concepts used in the new New balances 2017 marathon fresh foam Zante v3 marathon joggers within the field of marketing. Information for the report was grouped using academic texts within the field of marketing. Having a clear and concise understanding of marketing theories and concepts was found to provide a substantial benefit to companies as it allows the company to communicate with their target market which creates an increase in sales and creates an image for the brand and what their beliefs, goals and objectives are to create a successful organisation. To be continued…

TABLE OF CONTENTS

1.0 Introduction

1.1 Authorisation

This report is authorised by the
Marketing institute of Australia.
A leading professional community of Marketers 84 Pitt St, Sydney NSW 2000. This report has been compiled to meet the requirements of the
Marketing institute of Australia.

1.2 Limitations

This report is limited to the marketing theories and concepts used by New balance and their 2017 marathon fresh foam Zante v3 marathon joggers and how marketers can use these skills to create an effective lead in sales and brand awareness.

1.3 Scope

This report looks at the importance of using marketing theories and concepts when advertising shoes that specialise in running. Theoretical evidence is provided to establish the link between using marketing skills to communicate with stakeholders within an organisation and spread the organisations mission. Recommendations are then provided as a suggestion to provide innovative and creative ideas that may progress the organisation throughout the future. Academic sources are used to provide theory and evidence of how marketing can excel the sale rate of an organisations tangible product and create awareness of the processes organisations have to take.

1.4 Methodology

To complete this report, secondary data from academic sources have been researched and a case study of marketers using marketing theories and concepts, has been analysed.

2.0 Background Information

2.1 New balance Athletics, Inc. background information

New balance Athletics, Inc. is an organisation that is a privately-held company which sells athletic clothing and athletic footwear for a variety of demographics (MarketLine 2017). The Fresh Foam Zante v3 marathon runners are a new marathon running shoe that has been released in 2017 and is an update from the Zante v1 and v2. The Zante v3 uses a fresh foam insole that is built differently to other midsoles by using data from real life people to achieve the best results from the product. The product is a running shoe that is used for activities such as the gym and running with a partner (Spicer 2017).

2.1 Manufacture/Delivery process and where the shoe can be purchased

In the ‘80’s, the industry was left to drive profit margins and get people to work for cheap labour. New Balance Athletics sat tight during this time and grew from the process. New balance uses a Massachusetts sole manufacturer that’s made in Norridgewock and Boston factories Called the 1978. New balance released a made in USA sneaker to celebrate the dedication the brand shows towards using domestic manufacturing (Boardroom Insiders, Inc. 2017) The company also markets and sells products through web portals which include pfflyers.com, Newbalance.com and warrior.com. New balance Athletic, Inc. has its headquarters based in Boston, Massachusetts (MarketLine 2017). (RE-WORDED)

New balance outsources its delivery process, partnering with StarTrack New Balance has a achieved a substantial amount of growth and business is increasingly growing online and offline. Because this growth, New balance decided to spend less time on the logistics of the business and more time proficiently creating products that customers will love. By working with StarTrack, New balance is aware of exactly what it costs to ship an item and can therefore provide a correct budget. The company can also expand without the stress of moving into a larger warehouse. (StarTrack 2015)

3.0 New balance athletic shoe, Inc. – SWOT Analysis

2.1 New balance athletic shoe, Inc. – Strengths

· New balance athletic shoe, Inc, has a broad geographical area, which allows the company to implement its strategies to expand its presences further (Canadian company reports, 2013). (RE-WORDED)

· The company already has functioning business operations across six continents marketing their brand in countries such as South Africa, Mexico, Brazil, Hong Kong, Australia, Singapore, Germany, United Kingdom, Germany and Canada (Canadian company reports, 2013). (RE-WORDED)

· The company manages distribution facilities in such a wide demographical area which helps the company operate in a more productive manner which helps higher revenue returns, improve profit margins, opens up brand equity on a global scale and attains economies of balance (Canadian company reports, 2013). (RE-WORDED)

· By utilizing useful technology and implementing research and development it gives New balance athletics a new way of launching products that are tailored to customers demands (Canadian company reports, 2013). (Re-worded)

2.2 New balance athletic shoe, Inc. – Weaknesses

· Although New balance came in the Chinese market in 1995, and invested resources. The New balance could not develop into the market as new balance were facing several lawsuits. New balance decided to develop into china later in 2003, although big brands such as Adidas and Nike had already entered the market 10 years prior and had already established a loyal customer base (Ting 2015). (Re-worded)

MarketLine (2017) found that New balance athletics lacks size compared to its competitors such as:

· Adidas

· ASICS

· NIKE Inc.

· Puma SE

· Converse (RE-WORDED)

2.3 New balance athletic shoe, Inc. – Opportunities

· New balance Athletics, Inc. has a continuous online market for the retail industry and is initially expanding to strengthen business strategy in the growing global athletic footwear market. (MarketLine 2017). (RE-WORDED)

· New balance athletics, Inc. only has around 1600 stores in China. In some areas there are no New Balance stores, this could provide an opportunity for New balance Athletics to expand their potential market. From 2014, Adidas and Nike have not had very good sales. This could possibly be a rare opportunity for New balance to increase its annual earnings (Ting 2015). (RE-worded)

2.4 New balance athletic shoe, Inc. – Threats

· New balance Athletics, Inc. has a strong awareness in the global market, however, the company does not have a strong brand awareness like Nike and Adidas. New balance Athletics, Inc. does not endorse celebrities as much as its other competitors. As the market is very competitive, it is essential that companies single themselves out from their competition. Due to New balances lack of endorsing well respected celebrities, the company falls at a major disadvantage to its fellow competitors and can decrease the level of sales (Canadian company reports, 2013). (RE-WORDED)

· Knowledgeable property protection is no longer enough to prevent counterfeit products. New balance has had a history of counterfeit products being produced in their own factories. These types of problems can create a large decrease in sales as it can destroy the impression of the quality of the product and change the consumers willingness to purchase or recommend the companies product (Ting 2015). (RE-WORDED)

3.0 Assessing New balance Target market

REFERENCES:

MarketLine 2017,
New Balance Athletics, Inc., MarketLine, Boston, p. 3. viewed 25 October 2017, .

New Balance Athletic Shoe, Inc.: Retail - Company Profile & SWOT Report 2013, Progressive Digital Media, Basingstoke, pp. 11 - 13. viewed 26 October 2017, .

New Balance Athletic Shoe, Inc.: Retail - Company Profile & SWOT Report 2013, Progressive Digital Media, Basingstoke, pp. 16. viewed 26 October 2017, .

Ting, Y. 2015,
Localization of New Balance brand marketing strategy for Chinese markets, Savonia-ammattikorkeakoulu, pp. 42 - 46. viewed 27 October 2017, .

Boardroom Insiders, Inc. 2017,
John Withee - EVP and CFO, New Balance Athletic Shoe, Inc., viewed 27 October 2017, .

Startrack 2015,
StarTrack and New Balance, viewed 27 October 2017, .

Spicer, M. 2017,
New Balance Fresh Foam Zante v3, viewed 27 October 2017, .