Marketing Communication Comparison of Shoe Companies

Marketing Communication Comparison of Shoe Companies Introduction: This report is presented with the aim of facilitating a comparative analysis of the marketing communication strategies and mix adopted by the athletic shoe brands Adidas and New Balance. This research entails a high magnitude of relevance as the two brands i.e Adidas and New Balance are operating simultaneously in the international market which is defined as being competitive. For illustrative purposes: Competitors of the Shoe Brands: Adidas New Balance Nike Puma New Balance Reebok Asics Woodlands Red Tape NIKE, Inc. Adidas-Salomon AG Ariat International AZ3 DC Shoes Fechheimer Brothers Company OshKosh BGosh Saucony Woolrich Combating completion as such is required for substance and growth.. Organizations such as Adidas, New Balance and many more are in continuity into market research to cater to consumers whose tastes and fashions are changing in rapidity necessitating variation in products by modifications, modes of advertising, sales and promotional approaches and appealing pricing strategy to attract consumers who are not only quality conscious but price conscious. To render an in-depth analysis, I propose the following: Primary Research: Consumer Poll Secondary Research: Books, Journals, Websites Analysis of Compiled data Primary and Secondary Research data employing the following business tools: S.W.O.T Analysis Marketing Mix Market and Literature Review: Origin: New Balance Shoes: New Balance Athletic Shoe was created by an orthopaedic shoe manufacturer in 1906. The individual who is credited for the birth of this reputed shoe brand is William Riley and the organization came to be known as the New Balance Arch Company. In the 1900s, New Balance Arch manufactured custom-made arch supports to rectify orthopaedic foot problems and help in relief of pain. In the year 1930, the very first handmade running spike was created by New Balance Arch. Paul Kidd acquired new Balance Arch in 1956. The Organization manufactured first running shoe employing a rippled rubber sole, which was produced with a multitude of widths in 1961. James S Davis, in 1972 bought New Balance and then it was christened as New Balance Athletic Shoe. New Balance Athletic Shoe bought the rights from Iron Age of the Dunham brand names. In 2000 the organization created the RC1001, which happened to be the primary shoe to present the N-ergy SC. System comprised of a technological superiority in the New Balance bringing about high-performance suspension system. New Balance Athletic Shoe also gained successfully the rights to the PF Flyers brand in the year 2000. New Balance Athletic Shoe commenced its first width centralized concept unit at Harrods with a merger with Sweatshop in 2001. The organization signed on the dotted line a license agreement along with the Franco Apparel Group for sale of kids apparel in 2003. It also opened its stores in Santa Barbara and Ontario in the same year. In 2003 New Balance Athletic Shoe stepped with intent to diversify into the market of China. In 2004, New Balance Athletic Shoe entered into agreement alongside New Era Cap to add in their product line performance headwear in its product line categories, a business agreement with Eyewear Designs to initiate sales of highly innovative performance sun wear and eyewear, and a mutually beneficial agreement with Moretz Sports to produce high quality performance socks. New Balance Athletic Shoe successfully acquired Warrior Lacrosse in Warren, Michigan in 2004 and also commenced its concept outlet in US and Canada at the same year. A totally-new comfort performance Shoe brand, Aravon, was by this organisation introduced at retail outlets in 2004. In 2005, Innovative Hockey was bought by the organization to function as a new section named Warrior Hockey. In August 2006, New Balance Athletic Shoe bought Brine, a reputed industry world leader in soccer, lacrosse, field hockey and volleyball, based in Milford, Massachusetts. Adidas: Adolf Dassler, a German National residing in a relatively unknown German Village created Adidas, the phenomenon in athletic shoe brand who named the shoe by utilising his nickname Adi and adding it on to the first syllable of his last name. In the very beginning Adidas hired reputed athletics to promote their product line. Jesse Owens, in the Olympic Games of 1936 wore Adidas shoes while performing at the games and later on as the brand gained popularity many sports personalities commenced sponsoring the brand. Towards the end of Seventies, Adidas gained phenomenal popularity and was dominating the global market in sportswear. Kaka, Zinedine Zidane, David Beckham and many celebrity soccer players such as e are being sponsored by Adidas. For nearly eight decades Adidas has been very much an integral part of the sports world providing state-of-the-art sports footwear, accessories and apparel. Currently, the organization takes pride in holding a global position in the sports goods sector. Adidas products especially shoes are available in almost every nation of the world proving the fact that the organization has carved a distinctive niche for itself. Adidas has emerged into a large multinational corporation. It possesses a distinctive logo and the catchy advertising slogan Impossible is Nothing further cement the brand image and popularity. The business organization with intent to have sustenance of the image it has created in the minds of the global consumers allocates huge sums in advertising and promotion of the brand. The brand employs sports stars to project its corporate philosophy of passion, grit, determination and perseverance through its Impossible is Nothing Campaign especially at the current recessional phase which is predominant in the current economic world scenario. (Borderick 2005) Methodology: Primary Research: Initially primary research method was employed. Consumers were interviewed about the two brands i.e. Adidas and New Balance Shoes. Data was compiled and a theoretical approach was devised to compare the brands. The questionnaire utilized had 10 vital questions which helped in gaining required responses for the analysis Secondary Research: While the function was carried out for the secondary research, books and websites and learning modules were referred to. On the basis on the primary and secondary research data compilation, analysis was carried out and inferences drawn. Analysis and Discussion: http://www.wikinvest.com/images/thumb/e/e7/Footwear_market_shares.PNG/400px-Footwear_market_shares.PNGPie Chart The above figure statically indicates the fact that New Balance has a large share in comparison to Adidas. Nike stands at 6% while Adidas at 16% which is almost half of Nike. Marketing Mix: http://www.soopertutorials.com/wp-content/uploads/2009/01/4ps.gif New Balance Adidas Product New Balance Athletic Shoe has created the RC1001, which stands out to be the first shoe to feature the N-ergy SC System, a technological strategy innovation in the high-performance suspension shoes The shoes are known to offer comfort and style and are light in weight. They have great value for money. The grip which the sole provides is on account of good design and is useful especially in hiking. They go with ease on the legs and prevent any kind of twist or sprain. Price Commences from a pricing range of USD 59 The basic pricing range is USD 65 onwards Place New Balance Athletic Shoe are marketed in more than 120 countries on six continents. New Balance is in possession of wholly-owned subsidiaries in the Sweden, Hong Kong, Singapore, Australia, UK, France, Germany, New Zealand, Mexico, Canada, South Africa, and Brazil. Adidas is sold in all the developed and developing economies of the world. Adidas follow one level channel or an indirect channel to make their product reach out to the final consumer. The products are manufactured by the producer and it then reaches the retailer who in turn sells it to the final consumer. Promotion The company fails to have endorsements in huge sporting events, retarding its ability to gain international brand-recognition. Adidas now just does not advertise innovatively but makes the much required impact with executions which are brilliant. Television and other forms of advertising are in regularity employed and the organization successfully conveys their characteristics of innovation and technology coupled with huge success stories with personalities such as Emil Zatopek and Mohammad Ali to name a few. S.W.O.T Analysis: (Kotler 2001) A S.W.O.T Analysis in context of a business organization assists us in comprehending the strengths of the organization, the weaknesses it possesses, the opportunities the organization could explore and the threats which could harm its growth and existence. New Balance Shoes: Strengths Innovations New Balance Athletic Shoe focuses on continuous research and development work. New Balance Athletic Shoe has brought into various new products over the years. The business house was the first to produce handmade running spikes. It also created the first running shoe having a rippled rubber sole that was produced in multiple widths. The firms continuous innovations have helped it to remain competitive and improve market share. Global reach The firm possesses a number of licensees, joint ventures and distributors all over the world. International operations help the brand to use advantage of a range of market opportunities while refraining from overexposure to any specific market. Unique approach to athletic products The Companys aim is to provide the elite and daily athlete with footwear, apparel and accessories that assure superior performance, fit, quality and comfort. Understanding that the size of feet varies among people, New Balance sells shoes in up to six different widths from a narrow 2A to an expansive 6E.The company has created 18 different foot models (lasts) to design its footwear around. Each last takes into account the users i.e. men, women and kids and the use. All in all, they create a complete fit and size profile to design a superior shoe called 360 Fit. This new approach provides the organization a competitive better advantage. Weaknesses Lacking celebrity endorsements New Balance Athletic Shoe has focused on an Endorsed by no one belief or philosophy. The company fails to undertake celebrity endorsements like its competitors Nike, Adidas and Reebok. Its brand building process are hence at a position which is disadvantaged resulting in brand unawareness up to some extent by this. Opportunities Growth in the fitness equipment market The fitness equipment market in the US and UK is expected to grow at steady rate in the near future. Fitness equipment manufacturers have now started to offer high quality equipment at lower prices. This has helped increase the penetration of these products in the home fitness market, as opposed to the earlier trend, when such products were only found in fitness and training clubs. Treadmills, elliptical machines and other types of equipment that are used for cardiovascular workout are now available to consumers at reasonable rates. This is increasing the demand for such products and New Balance is well positioned in this market through its home exercise equipment product range. Threats Rising raw material costs The principal materials used in manufacturing footwear products are natural and synthetic rubber, plastic compounds, foam cushioning materials, nylon, leather, canvas, and polyurethane films used to make Air-Sole cushioning components. As a result of rising oil prices, the prices of synthetic rubber and plastic based products has increased. Rising oil prices will further increase the prices for petroleum based products. Increasing raw material costs would increase the companys production costs and may affect its profitability. Intense competition The business is subjected to high competition with many large companies such as Nike, Adidas and Reebok. The market launch of technologically better and improved products by competitors such as Adidas and Reebok, could lead to decline in the firms market share. Further, these competitors have greater resources and strong brand names. The competition from these big brands is very high and propels the company to invest large amounts in marketing and brand maintenance strategies. Adidas: Strength: The prime strength of the organization is its 8 decades of existence in the global market. The employment of high end technology in the production process improves quality, precision and durability which are the most desired aspects by athletes. The organization has the largest international portfolio of celebrity sports ambassadors. The business as a part of promotion sponsors football teams and has a high consumer brand loyalty mainly in U.S.A and India. Statistics and surveys indicate that Adidas has the maximum level of popularity and brand image in India. Adidas possesses the largest international portfolio of sports ambassadors. The organization in continuity sponsors football teams and has a high fan following particularly in U.S.A and India. Statistics and surveys reveal that Adidas has the maximum level of popularity and brand image in India. Weakness: The pricing strategy of Adidas for all its products including athletic footwear lacks flexibility and is highly rigid and this proves to be a weakness in a general price conscious economy. Adidas is hovered over with a close competitor in the form of Nike, Puma and many more in the global market. The Indian subcontinent, which in now identified as a potentially growing market with high potential of revenue, the brand has not been showing good revenue results. In a global price conscious economy, the high level of rigidity in pricing poses a weakness. Adidas is plagued with a close competitor in the form of Nike in the global market. The Indian subcontinent, which in now recognized as an emerging market with high potential of revenue, the brand has not performed well. Opportunities: Adidas should avail the opportunity to explore new world markets in the global arena. Health consciousness among the people in general is creating a good need for athletic shoes which should be skillfully tapped by Adidas. Creative advertising employed in continuity could open up opportunities of market growth and sustenance. The brand has tremendous opportunity to explore new avenues and markets in the global market. Health consciousness among the world populace in general is creating a good demand for athletic shoes Effective advertising employed in continuity could present the opportunity of market growth and sustenance. Threats: Statistics show that Reebok, a competitor of Adidas has a good market share and employs a higher sum for market communication strategies. This presents a threat which is growing for Adidas. New entrant brands such as GAP, CAT prove to be a threat as they are eating in on the market share of Adidas which it has created over a period of time Statistic reveals that Nike, a competitor of Adidas has a large market share and allocates a much larger sum for market communication strategies. This proves to be a threat which is growing for Adidas. Relatively new brands such as GAP, CAT prove to be a threat as they are cutting in on the market share of Adidas. Conclusion: Statistics state that Adidas rules over New Balance shoes in the Global Market. Without an element of doubt both the brands fulfill the quality criteria. Their marketing approach differs creating a certain amount of limitations especially in the case of New Balance Shoes. Adidas is undoubtedly performing better and will continue to do so Recommendations: It is recommended that New Balance Shoes commence celebrity endorsement for their product and even sponsor sports events like Adidas does. The excessive competition creates this need. With a change in the promotional activities the company might not improve market share. Adidas has to focus on moving ahead of Nike which is the only close serious competitor dominating the market.

Constitutionalism in England in the 17th Century Essay

Analyze the development of Constitutionalism in England during the 17th century. England’s lengthy history of hereditary monarchs and abusive absolutists has led to the system of constitutionalism in 17th century English government. The encouragement of these absolutism practices triggered the need to search for a new way to govern. The reigns of the Stuart monarchy led to the shift from absolutism to constitutionalism during 17th century England. After witnessing the success of Louis XIV’s of France establishment of absolutism, England would soon see that James I, and his son Charles I, will fail at establishing absolutism in England and see a constitutional government established. After the death of Elizabeth I, the last of the Tudor dynasty, in 1603, James VI of Scotland rose to power as James I of England. James I was not used to having to rule with Parliament, therefore he did not get along with them. Since James I was also King of Scotland, he went to great length s to make an attempt at bringing Scotland and England as close to union as he could. His anger towards Parliament’s refusal of associating with Scotland financially was only the beginning of his problems with English Parliament. In 1618, the Thirty Years War broke out. England participated in this war until internal and financial problems drove them to cease their involvement in European affairs. The â€Å"Addled Parliament† also met during the reign of James I. The â€Å"Addled Parliament† was named that because of its ineffectiveness, it lasted only a few weeks and no real progress came out of its assembly. When King James I passed away, Charles I was the successor as King of England. Charles I married Henrietta Maria, the Catholic sister of King Louis XIII, this aroused suspicion of his religious preferences. Moreover, the efforts of Charles and the archbishop, William Laud, to impose the Anglican Book of Common Prayer upon England and Scotland triggered anger of the Puritans and rebellions by the Scots. Parliament signed a Petition of Right in 1628, which declared that thing king could not impose taxes without Parliament’s consent, the quartering of soldiers in private houses, arbitrary imprisonment, and the declaration of martial law in peacetime. Charles I originally accepted this petition but eventually failed to carry out this agreement because it limited his power. Charles soon decided that since he could not work with Parliament he would not call them to meet. Charles practiced personal rule for eleven years, which forced him to find ways to  collect taxes without the support and approval of Parliament. An example of these taxes is ship money, a tax on seacoast towns to pay for the defense of the coast. Charles I also raised funds with the Act of Revocation in 1625, which revoked all land gifted to nobility from the church or royal family since 1540. Continued ownership was subject to an annual rent. Eventually, Charles I could not rule any longer without the help of Parliament, hence the beginning of Long Parliament in 1640. During Long Parliament, Parliament passed the Triennial Act, forcing Charles I to call them to session at least once every three years. Also, in 1641, Parliament presents The Grand Remonstrance, wh ich was a demand for political and church reform. The Grand Remonstrance ordered Charles to stop the ship money tax inland, abolish and demolish the Star Chamber, and requesting that English Common Law have power over the king. This irritates Charles to the point that he declares some members of Parliament â€Å"outlaws†, one of them being Oliver Cromwell. The accused members flee Parliament and begin to plot against Charles I, hence the beginning of the English Civil War. The success of Parliament during the first phase of the English Civil War can be attributed to Oliver Cromwell’s New Model Army. This army consisted of radical Puritans and Independents, who believed they were fighting for God. Cromwell was one of the Independents. The first phase of the war was ended with capture of Charles I. Blinded by his belief in divine right, Charles took advantage Parliament’s troubles and decided to flee to the Scots for protection. The Rump Parliament now accused the king of treason saying that he had acted as a tyrant, traitor, murder, and a public enemy to the good people of the nation. Charles was beheaded for his actions in 1649 and his attempt at absolutism was put an end. This was a great achievement in the rise of absolutism, as Parliament continued to gain more power in England with every passing monarchy. After the death of Charles I, his son Charles II rose to power (during the civil war). The Roundheads, supporters of Parliament, we re victorious by the end of the English Civil War. Oliver Cromwell became Lord Protector of England and held all executive power; legislative power was given to Parliament. Cromwell came to find that it was difficult to work with Parliament, even more so when members debated his authority. Six years after the death of Charles I, who Cromwell fought so hard to eliminate, Cromwell himself had done the exact same thing as  Charles; demolish Parliament. After the death of Cromwell in 1658, England was damaged by all the change and turmoil that had occurred. This left Europe wanting to go back to tradition. Parliament kept the power that it had gained back and it played a big role in the government by not allowing taxes without its consent. Since Cromwell did not leave an heir to the throne, Parliament allowed Charles II to return from exile and take power. This is the beginning of a period known as â€Å"The Restoration†. The moral lesson that was taken from the English Civil War was, â€Å"Parliament could no more exist without the Crown than the Crown without Parliament.† Shortly into Charles II’s reign, the â€Å"Cavalier† Parliament was called to session. It was filled with Royalists, supporters of Charles I & II during the English Civil War. During this session, Parliament disbanded the Puritan army, while pardoning most of the Puritan rebels. They also restored the authority of the Anglican Church b y enforcing the Clarendon Code. The Clarendon Code contained the Act of Uniformity, which stated that all clergy and church officials had to conform to the Anglican Book of Common Prayer. It also forbade ‘non-conformists’ from worshipping publically, teaching their faith, or attending English universities. Even though he permitted the Clarendon Code, Charles II favored religious tolerance. In 1672, he declared the Act of Indulgence, which suspended all laws against Catholics. Parliament, not able to get the king to recant the Act of Indulgence, passed the Test Act, which only allowed members of the Anglican Church to hold military or civil offices. Charles later dismissed Parliament and relied on the French to finance his rule. When Charles II died, the threat of Catholicism grew larger for Parliament when Charles’s brother, James II, a strong catholic, took the throne. The ascension of James II to throne essentially meant a new constitutional crisis was at hand for England. James II’s attempt to make Catholicism the primary religion in England once again created conflict between the monarch and Parliament over religion. James issued another Declaration of Indulgence allowing Catholics the right to hold offices, contrary to the Test Act. When James’ second wife, a strong Catholic, became pregnant, Parliament’s outrage could no longer be calmed. A group of members from Parliament invited William of Orange, husband of James’s protestant daughter Mary, to invade England and take to throne. While William and Mary raised an army to invade England, James, his  wife, and infant son fled to France, living the rest of their lives under the protection of James’s cousin, Lou is XIV. The Glorious Revolution had occurred in England not over what form of government it would have, but rather who the monarchy would be. In 1689, Parliament offered the throne to William and Mary, who accepted with the Bill of Rights. The Bill of Rights eliminated absolutism in England forever, making it impossible for the king to oppose Parliament or do without Parliament’s approval. In the Bill of Rights, the people were given rights to petition, to bear arms, and the right to trial by a jury. The Bill of Rights established a government based on the rule of law, where no one was above the law including the king. This laid the foundations of a solid constitutional monarchy. The theory of divine right was now rejected in England, and the power to rule came from Parliament and the people, not God. The rise of constitutionalism can be greatly contributed to the foolishness of the monarchies that believed in absolutism and divine right of kings. These absolutist monarchs virtually destroyed themselves by ruling greedily and were more power-hungry than they could handle. The acts and counter-acts that were exchanged between the monarchs and Parliament set the stage for civil war. The victory of the Parliament a fter the English Civil War generated the superiority of constitutionalism in 17th century England.

The Success of Starbucks - 808 Words

The success of Starbucks Starbucks was born in 1971 as a small coffee shop. With the management of Howard Schultz, Starbucks turned into a business legend and built a kingdom of coffee. It was dominate specialty-coffee brand in North America. By mid-2002, the company was serving 20 million unique consumers in more than 5000 stores all over the world. It developed at a very high speed. The gross profit of the company increased from 730.2 million to 1938.9 million in about 5 years (1998-2002). Its retail business expansion was also amazing. In 1998 there were 1755 Starbucks’ stores in North America while the numbers increased to 4574 in 2002. It was also true of its international expansion. There were only 131 stores in 1998. But in 2002†¦show more content†¦The respondents showed that more people strongly agreed the Starbucks care more about making more money and building more stores. The percentage of the increasing number was about 7%. There was also a change on Starbucks’ customer base. Compared with the established customers, the new customers tended to be younger, less-educated, and lower income. What’s more, these customers visited the stores less frequently with average 15 cups of coffee per week. The established customers consumed 19 cups of coffee per week on average. The new customers had very different perceptions of the Starbucks brand. Their overall opinion of Starbucks was 25% while the established customers’ was 44%. This definitely showed the lower customer loyalty. On the term of â€Å"worth paying more for†, there were only 8 percentage of new customers though it was worth. It also meant that it was hard to retain these new customers. When someone cared more about the price and thought there was no significant difference between Starbucks and other coffee brand, he or she would not come again. From exhibit 9 we could see the direct link between customer satisfaction and customer loyalty. 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Knoxville Campaign in the Civil War