Jessy Elliott

The Gold Standard Team Director Jessy Elliott – Chris Adeigbo – Carly Lasure – Jasmine Moye –– Secondary Research Product Evaluation ✔ Manufactured in the U.S. ✔ Many products are made with recycled and repurposed materials ✔ Owns five other brands ✔ The New Balance brand stresses features ✔ Shoes range from $85 - $160 Company & Competitive Frame Evaluation ✔ Privately owned company ✔ Among its competition, it falls short against brands like Nike and Adidas in sales and revenue. ✔ Spent only a small amount on advertising in 2008. $19.7M compared to competitors like Nike ($184M) and Adidas ($79.9M) Consumer Makeup ✔ Primary buyers are over age 45 ✔ Upper middle-class consumers ✔ Popular with soccer and lacrosse athletes SWOT Strengths Weakness Opportunities Threats • Innovative features and technology • Suffered damage from a lawsuit in 2012 • Annual growth in athletic footwear market • Influx of low-priced imports • Culture of innovation and research • High labor costs due to U.S. production • Growing online shopping preference • Larger brands are more efficient and vertically integrated • Made in U.S.A. • Relatively small marketing budget • Acceptance of athletic footwear as casual footwear • Counterfeit products Survey • • • • • 19 Questions Facebook, Twitter, Email 85 Useable Average Age 20.9 79% Female Survey Highlights Which characteristic is the most important when purchasing Athletic footwear? Which brand has the lowest quality? Puma Comfort (27%) Quality (21%) New Balance Features & Innovation (3%) Brand Recognition (9%) Design (20%) Adidas Price (17%) Under Armour Nike n = 84 n = 84 How do celebrity endorsements impact your opinion of a brand? More Innovative Higher Quality More Fashionable More Popular 22% 48% 59% 65% n = 85 How likely are you to purchase New Balance athletic footwear because: you see it used in professional sports? 29% are likely n = 83 it is celebrity endorsed? Vs. 6% are likely n = 84 Survey Highlights n = 83 46% research before buying athletic shoes Very Likely (2%) Likely (18%) Undecided(12%) Unlikely (19%) Very Unlikely (49%) Responses (%) How likely are you to make an online purchase of footwear from a brand you haven't owned? 76% of those turn to the internet to research Focus Groups • • • • • 10 Participants 8 Male, 2 Female Ages 19-25 4 States 5 African American, 5 White Key Statements “Honestly, I think that I’ve owned almost every brand of shoes. But I don’t think that I’ve ever owned a pair of New Balances.” – Male, 22 “In Maryland, DC, Nova area that’s all people wear is New Balance for some reason. All I know is 293, 498...” – Male, 20 “New Balance seems to be the most comfortable that’s why I keep going back.” – Male, 22 “If a celebrity endorsement was chosen wisely then I think it would have a positive effect.” - Female, 20 “They are a Nike wannabe.” – Male, 19 Theme One Lack of Variety “[Nike’s] whole brand makes you feel like you are above average. From the design, to technology, to customization, the overall brand is just better.” - Male, 22 - More modern styles - More colors - Customization Theme Two Lack of Presence “I see a commercial for New Balance every once in a while, but that’s one commercial for every 20 Nike commercials that I see every week.” – Male, 20 “If New Balance had a leader it would take their brand to the next level.” - Female, 20 - Lack of advertising - Ineffective social media presence - Need of endorsements Theme Three In Store Purchasing “I am really strongly against buying any apparel online.” - Male, 22 - Shoe fit is important - Tangible aspects “I window shop online before I go to the store to buy.” - Male, 25 - Less hassle than online Interviews • • • • 10 Participants 7 Male, 3 Female Ages 18-25 4 African American, 6 White In-Depth Interviews • Approximately 30 minutes each • Mix of key and probing questions Common Themes • Style • Quality • Comfort • Advertising Theme One Style • Each participant mentioned a lack of style and design when compared to other popular brands • Advancements in design and technology is a must to gain a larger following • Opinion on style varies by region “I personally go for looks so the design is really important to me. I want them to be functional of course, but I would never buy a pair if I didn’t love how they looked.” - Female, 22 “If the shoe is ugly, I won’t buy it. I don’t care what brand it is.” – Female 19 Theme Two Quality • Quality of shoes often mentioned • Higher quality justifies higher price • Participants generally unaware of domestic production “Their shoes are really well built and last a long time.” – Female, 22 “If they amped up their style so it was competitive with other brands, then I would much rather make a purchase from a U.S. company.” - Female, 22 Theme Three Comfort • Comfort noted as important by nearly all participants “If they’re not comfortable I won’t buy them.” – Female, 19 • Reinforces New Balance’s “Substance Over Style” beliefs “I’m going to pay more for something that’s lightweight or that’s more comfortable.” – Female, 25 Theme Four • Participants noted a lack of exposure due to minimal advertisements Advertising “I rarely see New Balance advertising.” – Female, 22 • Also noted need for professional athlete endorsements “I don’t think I’ve ever seen a New Balance ad.” – Female 20 • Non-athlete celebrity endorsements not effective “Having a professional athlete endorsing the brand adds credibility and a coolness factor to the brand. –Female 22 Analysis Research Questions 1. How can New Balance more effectively communicate the uniqueness of the brand’s innovations and features? 2. Would celebrity endorsements increase New Balance’s brand awareness and perceived quality? 3. Does New Balance’s reliance on product features and innovations impact its ability to effectively compete in the growing online marketplace? Research Question One New Balance can effectively communicate the uniqueness of the brand’s innovations and features by advertising more, utilizing online advertising and using social media as a direct platform to communicate with the target audience. New Balance is really overlooked. - Focus Group 1 • Airing captivating television commercials and placing more advertisements to introduce new or existing products. • Online advertising will create familiarity with the brand’s innovations and features, which will promote online sales. • Using social media, such as Twitter, will allow for real time conversations with the target audience. Research Question Two Celebrity endorsements would increase New Balance’s brand awareness and perceived quality - as long as the brand is represented by a professional athlete. Professional athletes endorsing the brand adds credibility and a coolness factor… - Interview 4 • New Balance endorsing a professional athlete creates popularity, which leads to higher demand. • New Balance endorsing a popular professional athlete, such as LeBron James or Usain Bolt, would improve brand awareness and perceived quality. Research Question Three 79% New Balance’s reliance on product features and innovations negatively impacts its ability to effectively compete in the growing online marketplace. of respondents prefer to shop for athletic footwear at a sports-related store. • Consumers prefer to browse online and purchase products in-store because they like to try on products to test out features and innovations. • Have in-depth product information online to ensure in-store purchases since consumers do online research before purchasing athletic wear. Comparisons Qualitative Methods • Lack of style/variation • Lack of exposure Quantitative Method • Comfort • Quality • Competitor dominance • Sport endorser • Low opinions of New Balance Limitations • Convenience Sampling • Pilot Study • One Double-Barreled Question on Survey • Didn’t Ask Ethnicities • Recruitment Difficulties • Question Variation Thank You