MARKETING

Marketing

Marketing

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.

New Balance still owns much less market share compared to other competitors such as Nike, Adidas and Reebok. Hence, the challenge for market strategy will be how to obtain more market share through effective distribution channel and awareness. Moreover, according to the findings from our primary research, there is a huge demand for stylish shoes (Henry, 2007). Hence, it will be necessary to introduce more multi-purpose shoes with stylish features, as what Nike has done already.

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 level customer loyalty, and their own market share.

Changes to Marketing mix

In order to achieve 7% market shares in 3 years period, NB needs to adopt offensive strategic market plans as 1221 is very attractive but lack of competitive advantages. Fundamentally, offensive strategic market plans are designed to boost the overall performance of the company and hence market penetration strategy can help to develop the existing market.

The reason for NB to follow this particular strategy is that, it has a well establish market in Australia. This enables NB to have better working knowledge of consumers, competitors and market conditions. Moreover, it has existing resources to have strong market position. All bright situations influence NB to follow an offensive market plan to further penetrate the product market it already serves.

NB will follow tactics to grow market demand for its strategy to penetrate the existing market at first stage then will concentrate to broaden the market share of the product. ...