Brown Shoes Introduction: - PowerPoint PPT Presentation

1 / 21

About This Presentation

Title:

Brown Shoes Introduction:

Description:

Number of Views:140

Avg rating:3.0/5.0

Slides: 22

Provided by: michell52

Category:

Tags: brown | introduction | shoes

Transcript and Presenter's Notes

Title: Brown Shoes Introduction:

1
Brown Shoes Introduction

Notes Will not be posted on Web
This discussion covers one possible marketing
analysis process and answer
Points of discussion include
Student responsible
Talking points NOT student responsible (For
example, I will discuss the case facts in terms
of the 5Cs of situation analysis)
Who do are we role playing?
Assistant product manager for Brown who is
competing for budget dollars
What decision are we faced with?
Decide direction of a new athletic shoe design
with only 10 days lead-time
What options do you have?
Family shoe in the inexpensive athletic shoe
product category
Extreme/Off road shoe in the inexpensive athletic
shoe product category
Determine positioning and marketing strategy by
selecting one of the options for one TM that is
specifically defined as possible.
10 days and limited marketing research
Now, lets talk about what factors did you
consider when deciding which market

2
Company Brown Shoes

History/Background
Brown Shoes is a 17-year-old company.
The company is family-owned.
Very cohesive and committed to the companys
strategy of focusing on producing inexpensive
athletic shoes.
A majority of the managers have been with the
company since its inception.
Product not Brand managers
The product managers have been with the company
on average 12 years.
Recently, the first of these managers retired and
your boss was hired.
IMPLICATIONS

3
Company Brown Shoes

Goals/Strategies
Develops and manufactures inexpensive athletic
shoes that retailers like Wal-Mart or Sears would
sell as inexpensive competitors to Nikes and
Adidas offerings.
Me-too or follower strategy in terms of Carlton
shoe design.
Promotion - Brown has done little sales
promotion. they have mimicked Carltons strategy
of show casing their products.
Feel should be second in the industry (reputable
industry consultants)
Third place in the inexpensive shoe industry
Very short of their profit goals (reputable
industry consultants)
The fact that this has not yet been achieved
concerns upper management.
IMPLICATIONS

4
Company Brown Shoes

Culture
Company has become fiscally conservative
Resources/Constraints
New sole and lacing technology
Stable, safe, comfortable
Family sell to 25-34 parents for small children
and possibly seniors (life cycle marketing)
Extreme tested well. Good for off-road
walking.
Two years ago, Brown Shoes received an infusion
of capital which is exhausted
Capital used to update their only production
plant
Production capacity 750,000 (pairs) shoes for
next five years
Marketing expenditures cannot exceed 50 of the
total profit from this/last year.
IMPLICATIONS
Note death spiral possibility

5
Company How do they like to make their money

6
Competition

Carlton
Culture
Resources/Constraints
Seem to have the biggest margins
Goals/strategies
Recent brand recognition TV ads.
SuperBowl ad costs approximately 2.25 million
dollars.
Prior to this year, the only promotional
activities done by the three biggest competitors
(Carlton, WFS and Brown) have been co-marketing
efforts with the retailers, revolving around
local inserts in Sunday newspapers.
Carltons inserts primarily showcased their
products.

7
Competition

WFS
Culture
Resources/Constraints
Seem to have the biggest margins
Goals/strategies
Recent brand recognition TV ads.
Considering a 1.75-million-dollar ad campaign
during the Mens March Madness College Basketball
tournament.
Prior to this year, the only promotional
activities done by the three biggest competitors
(Carlton, WFS and Brown) have been co-marketing
efforts with the retailers, revolving around
local inserts in Sunday newspapers. WFS has
utilized price promotions in the range of 15.
Over the last quarter, buy one pair get one
half-price specials, in order to increase sales.
IMPLICATIONS
Buy one get one free means 25 price reduction
for each pair. Where are WFS competing?

8
Review 4Ps for Inexpensive Shoes

Place Sears and Kmart, possibly Wal-mart. If
Wal-mart would probably have to drop Sears and
Kmart.
ProductPrice inexpensive athletic shoes
Inexpensive knock-offs of Nike, Adidas, etc
Three tiers good, better, best
Carlton best tier leader, co-leader in better
tier
WFS co-leader in better tier
Brown leader in the good tier
Now, consider WFS price promotion again
Possible issue 25 drop in price takes a better
tier shoe and puts it in direct competition with
good tier shoes. We would want to determine if
the average price includes the full effect.
22 X .75 22- 5.50 16.50