New Balance
New Balance
Situation Analysis
New Balance International was founded during the early 1990s specializing in orthopedic footware to improve the fit of their shoes. Today the company continues its founding values in a highly specialized niche business of providing athletic footware in a wide range of widths and sizes which distinguishes the product from its competitors. With the philosophy of “one size did not fit all,” New Balance expanded operation from the US and currently markets its product in 160 countries in six continents. New Balance Inc. first appeared in South Africa In 1976 when a Durban based company obtained a license to distribute the brand. Under this distribution plan the company held a very small percentage of the market share and decide in 2000 to open a subsidiary, with the head office located in Cape Town. From 2000 to 2006, New Balance SA experienced double digit sales growth as well as obtaining a siginificant increase in market share.
The success of New Balance SA from 2000 to 2006 can be attributed to their focus of providing the highest quality fit with consistant performance, targeting independent sports retailers, and ensuring that the brand was well known amongst their target population, all runners in South Africa. The marketing strategy was a grass root initiative that consisted of direct marketing, promotions and sponsorships, making their first point of reference by word of mouth.
Eventually, New Balance SA diversified out of running to other sports such as netball, squash, padding and cycling. They also embarked into co-branding for corporate clothing by targeting the army, air force and police force and offering them quality sportswear with an international branding.
New Balance does face challenges in its efforts to maintain and grow market share. It falls behind other major competitors, Nike, Adidas and Reebok, in the area of marketing. New Balance does not endorse top athletes which puts them at a disadvantage
Situation Analysis
New Balance International was founded during the early 1990s specializing in orthopedic footware to improve the fit of their shoes. Today the company continues its founding values in a highly specialized niche business of providing athletic footware in a wide range of widths and sizes which distinguishes the product from its competitors. With the philosophy of “one size did not fit all,” New Balance expanded operation from the US and currently markets its product in 160 countries in six continents. New Balance Inc. first appeared in South Africa In 1976 when a Durban based company obtained a license to distribute the brand. Under this distribution plan the company held a very small percentage of the market share and decide in 2000 to open a subsidiary, with the head office located in Cape Town. From 2000 to 2006, New Balance SA experienced double digit sales growth as well as obtaining a siginificant increase in market share.
The success of New Balance SA from 2000 to 2006 can be attributed to their focus of providing the highest quality fit with consistant performance, targeting independent sports retailers, and ensuring that the brand was well known amongst their target population, all runners in South Africa. The marketing strategy was a grass root initiative that consisted of direct marketing, promotions and sponsorships, making their first point of reference by word of mouth.
Eventually, New Balance SA diversified out of running to other sports such as netball, squash, padding and cycling. They also embarked into co-branding for corporate clothing by targeting the army, air force and police force and offering them quality sportswear with an international branding.
New Balance does face challenges in its efforts to maintain and grow market share. It falls behind other major competitors, Nike, Adidas and Reebok, in the area of marketing. New Balance does not endorse top athletes which puts them at a disadvantage