Marketing plan for shoes company -New Balance

Topics: Marketing, Athletic shoe, Nike, Inc. Pages: 31 (7842 words) Published: April 10, 2005
1. Introduction

Founded by William Riley in 1906 as the New Balance Arch Company, in Belmont, MA, New Balance manufactured arch supports and orthopedic shoes. During the fifties and sixties, athletes turned to the company for customized running shoes due to New Balance's unique expertise in handcrafting specialized footwear. Paul Kidd bought the company in 1956 and increased the shoe-making sector as demand grew. Production of running shoes soon became the company's primary source of business. The New Balance "Trackster", one of the first running shoes made, grew very popular not only because of its technical innovation, but because it was available in a wide range of widths.

In 1972, New Balance was purchased by current Chairman and CEO, James (Jim) S. Davis. Four years later, the New Balance 320 running shoe was rated number one on the market, which launched the company into worldwide prominence. Since then, New Balance has diversified into making a complete range of athletic shoes for a variety of athletic activities.

Throughout the years New Balance has maintained the same principles it was founded upon: extensive width sizing, a commitment to domestic manufacturing, and leadership in technological innovation. Its Annual Sales for 2000 was Domestic $750 million and worldwide $1.1 billion.

New Balance Athletic shoe, INC. is the second-largest maker of running shoes in the America and has wide range of athletic footwear for males and females, athletic apparel and accessories. New Balance Athletic Shoe, Inc is an American private owned company, who has more than 2500 associates in the world and distributes the products in over 120 countries. The company has been running for over 30 years and has 12 wholly-owned subsidiaries and numerous licensees, joint ventures and distributors all over the globe, for instance, Australia, New Zealand, UK, Canada, Japan and South Africa. Its U.S. market share rose from 2% in 1997 to 12% in 2003. (

In Australia, New Balance is not that popular and product ranges are not as wide as America and Asia. The sale distribution channels are poor for New Balance in Australia. It only has 2 exclusive shops in Sydney and few products that display by Foot Locker. The products that sell through Foot Lockers are mostly running shoes with basic features and poor appearance.

1221 is a latest model for running shoes that introduced last October in Australia. It has lots new features and improved appearance but its sale volume is still limited due to lack of advertising. Therefore, this marketing plan is aimed to penetrate more market shares through better distribution channels and advertising. Also, its target area will also switch to whole Australia rather than only Sydney.


2.1 Market Definition and Segmentation

New Balance currently into running, walking, cross training, basketball, tennis, adventure sports, football and kids etc. In its new balance training shoes category, it will have its share in the major part in the business.

2.1.1 Primary Research

Primary information that can directly affect decisions of targeting, positioning, and the marketing effort as a whole, can be obtained through a survey. The survey was conducted in Sydney at the UTS Business

The survey aims to identify the total segment potential. We will be able to understand the position of our competitors in the market and the perception of the targeted customers about those brands as well as of New Balance. We can also find out what people look for in New Balance Shoes and identify the areas where we can focus to provide maximum satisfaction to the customer.

2.1.2 Secondary Research

Market Size and Growth

New Balance has its share in the world and Australian shoe market. It faces competition from brands such as Nike, Adidas, Reebok and others which include Colorado, Puma, Fila etc. These have a fair...
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