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Running head: MULTI-PURPOSE ATHLETIC SHOE APPAREL
Multi-purpose Athletic Shoe Apparel (MASA)
Gabrielle Marchisello, Tara Strain, Tony Trang, Edward Rodriguez
Marketing 341
Ke Li
December 9, 2014
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MULTI-PURPOSE ATHLETIC SHOE APPAREL
Introduction
The marketing plan we present is MASA, otherwise known as multi-purpose athletic
shoe apparel. This product is a tennis shoe with changeable soles to enable an athlete to
transition from one activity or sport to the other without having to change their shoes. Therefore,
an individual can leisurely exercise with the comfort of efficient running shoes and then simply
remove the sole to replace it with the sole of a cleat and perform on the field. We recommend
this marketing plan to enable athletes as well as health conscious and physically active
individuals to purchase our product. MASA is one shoe with endless opportunities and
consumers can benefit from the convenience of our unique, never seen before product. The
athletic shoe is equipped with a locking system on the base of the shoe that will hold the desired
sole in place, either a tennis shoe sole or a metal spiked sole. The soles will come off with a
simple twist to fit the need of the athlete whether in the gym or on the field without even having
to change shoes. Athletes will be able to do strength training, conditioning and even perform all
in the same pair of shoes. This product will not only provide the consumers with convenience but
with versatility. This one product will allow the consumer to combine all variations mentioned
prior that they may need for their sport into one product as opposed to buying multiple footwear
such as running shoes, lifting shoes and cleats. MASA is an athletic shoe that is light in weight,
maximizes foot support, stability, comfort and performance.
MASA will embody the slogan “Body and Sole” which is a play on the expression “body
and soul” since our shoes features a changeable sole. We want to give our brand a personality
that is about dedication. Since our shoes can be used for training and performing, we would like
for athletes to dedicate their body and soul into not only their sport but their training as well.
MASA would not only like to appeal to the actual game but to the training and conditions that
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comes with being an athlete. Since most athletes have to dedicate themselves into their sport, this
branding would appeal to our target market.
MASA’s Industry/Product Category for Athletic Shoe
NAICS code: 316210 - Cleated Athletic Shoe Manufacturing.
SIC code: 3149 - Footwear Manufacturing.
Similar codes include:
NAICS code: 316210 - Athletic Shoes Manufacturing
NAICS code: 316210 - Athletic shoes, plastics or plastics soled fabric upper, manufacturing
NAICS code: 316210 - Athletic shoes, rubber or rubber soled fabric upper, manufacturing
(NAICS Association, 2008)
The sales for cleated athletic shoe manufacturing according to the United States Census
Bureau have increased over the last seven years as Figure 1 below shows:
Figure 1
Athletic Shoe Manufacturing Sales
18,000
16,910
Dollars in millions
14,752
17,524 17,190 17,069 17,282
U.S. Census
Bureau (2012)
15,719
9,000
Sales (in millions)
0
2004
2005
2006
2007
2008
2009
2010
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MULTI-PURPOSE ATHLETIC SHOE APPAREL
Additionally, The Sports Business Research network (SBRnet) is a great source of information
relating to our product concept. The two charts below display the demographics from the past 10
years of the participation rankings (age7+) in both baseball and softball within the United States:
FIGURE 1-A:
Baseball:
YEAR 2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
RANK 14,632 15,850 14,627 14,646 13,951 13,300 11,507 12,533 12,292 12,073
Softball:
YEAR 2003
2004
2005
2006
2007 2008
2009
2010
2011
2012
RANK 11,840 12,501 14,092 12,442 9,958 12,843 11,829 10,841 10,383 10,487
**The information in this chart was adapted from information found in “Participation (Ages 7+)
Ranking: Total U.S.” (n.d.) from Sports Business Research network**
These graphs indicate that the number of athletes participating in baseball and softball
over the past 10 years has fluctuated and although the participation rate is slightly down from 10
years ago, it seems to have no drastic changes (Sports Business Research Network, n.d.).
Another source of information directly relating to our product concept is Thomas Ryan’s “How
Fast Can Cleats Go?” This article focuses on the market for baseball and softball cleats in the
United States (Ryan, 2013). Ryan discusses how the brand manager, Chris Davis, at New
Balance Team Sports, emphasizes the crucial factors of cleats that will give one company the
upper hand over another (2013). For instance, he exclaims that in producing a light cleat
(reducing the weight of a typical cleat) while simultaneously maximizing and ensuring support,
stability, and comfort, the product would gain an innumerous amount of favorable public
attention (Ryan, 2013). Additionally, this article will be very useful to our group because it
discusses one of our main competitors: Adidas. With specifications of a successful product such
as the 5-Tool 2.0 metal spike from Adidas AG and a reputation of being the lightest product in
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MULTI-PURPOSE ATHLETIC SHOE APPAREL
baseball, we can ensure that our product will be a multi-purpose shoe of reduced weight (Ryan,
2013). A product with a following of being “the best,” “the lightest,” etc. gains immediate
attention from the market. Consumers are clearly interested in the product that sets itself apart
from the other ones. As long as our multi-purpose shoe is unique and has the positive
characteristics of existing products plus a new and innovative addition, the market should
respond and our profits should rise.
MASA Competitive Analysis in Athletic Shoes Industry
The codes for the athletic shoes with changeable soles are NAICS code 316210 - Cleated
Athletic Shoe Manufacturing and SIC Code - 3149 Other Footwear Manufacturing. This is the
target market in which our athletic shoe with changeable soles will enter to compete with other
athletic shoe brands. In the athletic shoe market there are three major firms to be considered. The
three firms are Nike, Adidas and Under Armour. The three firms target everyone from youth to
adult ages and every sport. The top three competitive firms have been in this target market much
longer and have a bigger market share. According to Trefis, “North America and Europe account
for 44% and 24% of Nike’s footwear sales respectively. Nike is posting strong growth in these
regions on account of its strong brand image and innovative product portfolio.” Nike has a strong
position in the market. The Under Armour position in the market shows their “Footwear sales
grew 21% driven by continued success of Highlight football cleat and UA Spine platform”
(Trefis). Both Nike and Under Armour have strong sales and strong positions in the market.
They are well known brands for their quality and innovation in athletic shoes and endorsing
professional athletes. These three factors are the competitor’s strength but they also have
weaknesses.
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MULTI-PURPOSE ATHLETIC SHOE APPAREL
Nike, Adidas, and Under Armour do not sell athletic shoes with changeable soles that can
be used to perform various activities for baseball and softball. Our target market consists of
baseball and softball players within the 14-24 age group, combined they make up 64% from the
pie-chart of consumers buying cleats (Figure 1-B), mostly high school and college student
athletes, who remain health conscious and physically active (Sports Business Research Network,
2011). In the U.S. provided by Figure 1-C, the Mid-Atlantic 14%, East North Central 16.6%, and
South Atlantic 18.8% are a big percentage of consumers (Sports Business Research Network,
2011). Although our product can be used by athletes amongst various sports (football players,
soccer players, etc.) our mission is to provide our target market of baseball and softball players
with the versatility and convenience of purchasing one pair of shoes and having various options.
This athletic shoe product helps athletes by easily transitioning from a pre-workout such
as running, or going to the gym and lifting weights directly to the field for game time. These
multi- purpose shoes will be easily adaptable for training purposes as well as performance
purposes. Furthermore, our product will be cost efficient since the consumer now has the option
of purchasing one pair of shoes with changeable soles rather than two separate pairs of shoes,
that being a pair of sneakers and a pair of cleats. This is the products competitive edge over
competing firms in the athletic shoe market. Once the athletic shoe with changeable soles enters
the market, the three firms will react quickly. They will try to mimic and produce a similar
product because they know athletes want athletic shoes that will be comfortable, and easy to
transition in any sport performance.
MASA Market and Segment Analysis
The market for athletic shoes is still growing slowly. There was a 4% raise from 2012 to
2013 (Brunette, 2013). The consumers are looking for a deal while shopping for athletic shoes
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but are willing to pay more for new and innovative cleats which would give this product an
advantage over most conventional athletic shoes (Brunette, 2013). Instead of buying multiple
shoes, the consumer can save money by buying an innovative single product to fulfill their
needs. To define market segment the most important variable to look at is the age groups. In this
case, the target market will be from 14-24 year olds which make up the largest consumers of
cleats (64%). This will be one product with multiple market segments.
The concept of the shoe will remain constant however the design of the base of the shoe
will be determined by the demographics of the consumer which ranges from adolescents to
young adults. Just as most athletic shoes are designed now, colors and design are all used to
target different consumers. In addition, the product will not only target individuals but also target
specific schools or teams who thrive at baseball and softball. Shoes can reflect school or team
colors as opposed to individual styles. Targeting a specific region’s school and teams will
ultimately make the product far more appealing and promote the advertising of their school or
team through this product since the athlete will not only wear the logo during a game but also
during training or on a casual basis.
The following self constructed graphs and charts are adapted from information from the
Sports Business Research Network (SBRnet). We were able to specify who our target markets
will be through demographics. We specifically focused on age, gender, geographic regions and
consumer household income to help narrow our target market. As mentioned earlier, our target
market consists of athletes within the ages of 14-24 (mostly high school and college student
athletes) who would benefit from our product due to their obligations to play softball and
baseball but who also remain consistent with staying active and healthy.
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MULTI-PURPOSE ATHLETIC SHOE APPAREL
As shown in Figure 1-B, the age group buying cleats is blatantly most prevalent amongst
ages 14-17. This age group accounts for 53% of the population of consumers purchasing cleats
(Sports Business Research Network, 2011). Additionally, to target a larger market without
becoming too broad, we decided we would also account for ages 18-24, which make up 11% of
the population of consumers purchasing cleats. Therefore, by creating a target market of the age
group 14-24 we are targeting 64% of consumers purchasing cleats (Sports Business Research
Network, 2011). 53.9% of the U.S. baseball players attend high school or college and 23.2% of
baseball athletes are 14-24 years old (Sports Business Research Network, 2011). Aside from age,
gender holds a large amount of sustainability in regards to baseball and softball players. As
shown in Figure 1-D, about 80% of males in the U.S. over the past 10 years have participated in
softball and baseball sports requiring the necessary footwear (Sports Business Research
Network, 2011).
In order to assume the market for the future, one can take a look at the statistics from the
past 10 years. Surprisingly, as seen in Figure 1-E, a large percentage of households are making
roughly between $50,000 and $100,000 and over (Sports Business Research Network, 2011).
19.0% of the U.S. baseball and softball player population lives in a household that makes
$50,000-$74,999 a year (Sports Business Research Network, 2011). Over the last ten years,
males and females between the ages of 14-24 have spent between 47-57 million dollars a year on
baseball and softball footwear (Sports Business Research Network, 2011). Most recently, in
2012, 5.5 million pairs of shoes were sold which brought in 244.6 million dollars (Sports
Business Research Network, 2011). These past trends hold positive projections for the future
target market over the next 10 years suspecting that it will not decrease drastically and remain in
stable economic well-being.
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MULTI-PURPOSE ATHLETIC SHOE APPAREL
In addition to household consumer income, a consumers’ geographic region helps
determine whether or not they will purchase baseball and softball footwear. Figure 1-C further
displays that we will target baseball players in the Pacific and South Atlantic regions, which
accounts for 33.7% of the U.S. baseball and softball player population (Sports Business Research
Network, 2011). FIGURE 1-B:
Age Groups Buying Cleats
3%
9%
Ages
14-17
8%
18-24
(Sports Business Research Network, 2011)
25-34
16%
35-44
53%
45-64
65 & Over
11%
Figure 1-C
Consumers Geographic Regions
England (5.1% of U.S. Pop.)
Middle Atlantic (14.0% of U.S.
Pop.)
East North Central (16.5% of
U.S. Pop.)
West North Central (7.1% of
U.S. Pop.)
South Atlantic (18.8% of U.S.
Pop.)
East South Central (6.2% of
U.S. Pop.)
West South Central (11.1% of
U.S. Pop.)
(Sports Business Research Network, 2011)
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Figure 1-D
Gender Participation Percentage
80
Year
2003
2004
60
2005
Percent
2006
2007
40
2008
2009
20
2010
2011
2012
0
Male
Female
(Sports Business Research Network, 2011)
Gender
Figure 1-E
Consumer Household Income
Under $15,000
$15,000 - $24,000
$25,000 - $34,999
$50,000 - $74,999
$50,000 - $74,1000
$75,000 - $99,000
$100,000 & Over
45
40
35
Number of
households
30
25
20
15
10
5
0
2003
Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
(Sports Business Research Network, 2011)
MASA Target Market Overview and Product Positioning
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The target market that MASA will purse is vital to the success of sales and awareness.
MASA’s target market is 14-24 year olds; this age group makes up 64% of the consumers for
cleats the reason which they are the target consumers. Baseball and softball being the classic
pastime sports in the U.S. is the market to enter with the MASA shoes. These athletic consumers
enjoy playing softball and baseball and exercise constantly during the play season and offseason. Whether it is professional athletes, college athletes, high school, athletes, and club
athletes MASA will meet the needs of these consumers with its shoes.
The competitors that MASA’s product is positioned against are: Easton, New Balance,
Adidas, Nike, and Under Armour. MASA’s positioning within the current market is shown in
Figure 2A. The brands Easton and New Balance have low performance and technology
incorporated into their athletic shoes compared to MASA. Easton and New Balance do not
produce cleats for any sport rather only for running. Easton and New Balance shoes cannot be
used to perform more demanding physical activities because they lack performance and
technology.
Athletes need to be comfortable, fast, light on their feet, and agile when exercising and
MASA meets those demands for athletes. Adidas very well-known brand globally has low
performance and technology. It sponsors professional teams and athletes but cannot meet its
consumers’ needs like MASA will. Nike has okay performance in its cleats but it lacks
technology to compete with MASA. In addition, Nike endorses professional athletes and team
but that does not give it a strong product position in the market. The opposite competitor, Under
Armour has mediocre performance but has technology that might compete with MASA. Under
Armour has not incorporated performance into it’s a shoes which is its biggest down fall.
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The MASA athletic shoe incorporates performance and technology into its shoes. The
combination of performance and technology in MASA shoes will give it the competitive
advantage in the product position market. In addition, MASA will strive and benefit from its
shoes because it will be the first type of shoe that incorporates two services, performance and
technology. Athletes will use the shoe to cross train from physical exercise to playing time. This
is why MASA is position at the top right squadron on the product position graph with high
performance and innovative technology.
Figure 2A- MASA Product Position Against Other Brands:
Performace
Cleat
MASA
Nike
Under Armour
Technolog
Addias
Easton, New Balance
MASA’s three big competitors use their athletic shoes as a strategic business unit,
specifically a cash cow. Cash cows generate large amounts of cash, far more than the company
can use (Hartley, Kerin, & Rudelius, 2013). The competitors know that athletes will continue to
display brand loyalty and purchase their shoes because of quality. Due to customers brand
loyalty, competitors do not necessarily have to take perceived chances to sell their shoes. MASA
will strive in its product position and target market to satisfy consumer needs of physical
performance.
MASA Marketing Mix:
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Product Concept and Satisfying Needs of Consumers
The multi-purpose athletic shoes that have changeable soles are consumer products. The
shoe can be further classified under a shopping product. Shopping products are items which a
consumer compares several alternatives using criteria such as, price, quality, or style (Hartley,
Kerin, & Rudelius, 2013). Consumers spend a considerable amount of time researching shopping
products in order to make an informed purchase decision. To be successful, the price of the
multi-purpose athletic shoes will be fairly expensive and have a large number of selective outlets
where they will be distributed. As a shopping product, customers prefer specific brands but will
accept substitutes. Therefore with this in mind, differentiation from competitors needs to be a
goal (Hartley, Kerin, & Rudelius, 2013). The shoes are an infrequent purchase thus requiring
time to make an informed decision.
The multi-purpose athletic shoe with interchangeable soles is new innovative technology.
The shoe will have two key features that satisfy consumer needs: interchangeable soles and high
quality material. MASA will provide comfort, efficiency, and versatility, as well as reduce cost
to the consumer. The basic physical attributes include: sole, D-rings, toe cap, lining, midsole and
laces. The extended layers of the shoe include: mesh-upper, vamp lining, tongue lining,
elongated stiffener, air padding, removable foot pad, ankle support, air-cushion sole, interlocking
opening under the midsole, shocks to promote agility, and soles with interlocking hooks. The
shoe is made with mesh material allowing the feet to breathe and allowing comfort when
training/playing. The air pads under the removable foot pad will add comfort for the athlete and
support their ankle when in motion. The elongated stiffener, which is behind the heel of the foot
will adjust to the athlete’s foot comfortably. MASA is very efficient for baseball and softball
athletes given the fact that the shoe can be worn to train, condition, and play competitively. The
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interchangeable cleated soles allow athletes to transition into game play in seconds. The MASA
shoe is designed to provide a highly resilient running sole that will enhance durability and spring
with every step. The interchangeable cleated sole provides optimum stability and support in wet
and dry conditions and are extremely light weight. The cleated soles promote high-performance,
strength, and agility. MASA shoes are cost-effective to athletes. Rather than buying two separate
shoes, athletes can purchase one pair of shoes with the interchangeable soles. Our product is a
tangible product however there are many intangibles services that come along side with it.
Pricing For the MASA Athletic Shoe
MASA’s objectives will be to maximize current profits while simultaneously maintaining
social responsibility. MASA will use a skimming price strategy when the product is introduced
in order to successfully maximize profits. Since the tennis shoe is equipped with removable
soles, the transition from running shoe to cleat can be done within seconds. Since MASA is a
new product supported by an abundance of new technology, the company can charge more for
the item in the introduction and growth stages of its product life cycle in order to maximize
profits. As the competition adapts and develops similar cleats, MASA will reduce the products
price to match the market price of high quality cleats. A direct example of this occurrence is
when Apple released the IPad. Upon its release, the IPad was an original and unique product
with no competition (since there was no other product like it on the market). For this reason,
when the IPad first came out, Apple set its prices at ridiculously high amounts in which people
were willing to pay since there weren’t any similar products and prices to compare it too.
However, once other companies started releasing similar tablets serving the same functions as
the IPad with dangerously lower prices, Apple had no other option than to drop its prices to
match the competition (Hartley, Kerin, & Rudelius, 2013). Once MASA has maximized its
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MULTI-PURPOSE ATHLETIC SHOE APPAREL
profits, the company will aim to be more socially responsible by recycling materials from used
cleats to cut down on the waste. MASA will then focus on a sales objective to increase its market
size and profits. This pricing strategy will be effective since there are enough prospective
customers willing to buy the product at a high price. Studies have shown that, “Today’s
consumer typically will search for a deal while shopping for athletic footwear, but there are
exceptions to that rule. When it comes to buying a new and innovative pair of shoes, consumers
will spend more” (Brunette, 2013) and since the product is not only a new and innovative item, it
will help consumers save money by allowing them to buy one shoe that functions as two for a
cheaper price than purchasing two pairs of shoes (running shoes and cleats) separately. Secondly,
the high price will not attract competitors because this product has breakthrough technology and
competitors will not be able match the uniqueness and innovation when the product is first
introduced. Lastly, high prices of multi-purpose athletic shoe apparel relay the message of the
product being of “high quality” to the consumers. Since the product is multi-purpose, both soles
of the running shoes and cleats must be constructed with durable sustainable material and prove
to be of high quality in order to last as long as the competitors’ products.
As Figure 1 shows, the cost to manufacture the multi-purpose shoe will be $50.00. The
MASA manufacturing factory will then sell the product to retailers for a 65% markup. Since the
product is new, the markup will be more expensive than most other mark-ups. Lastly, the retailer
will usually have a markup of about 45% according to a benchmark by The Retailer Owners
Institute. Overall, the consumer will pay a total of about $120.00 for MASA, which is around the
average price for a good pair of cleats (as seen by our other competitors) ranging anywhere from
$120.00 to $170.00. Due to the fact that MASA is using the skimming price strategy in its
introduction stage, the markup will be higher since the company is trying to maximize its profits.
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MULTI-PURPOSE ATHLETIC SHOE APPAREL
Below the markup chain shows the standard process and prices for the shoe after the skimming
price period:
Figure 1
Mark-up Chain
Manufacturer- cost per cleat $50.00
Retailer- cost per shoe $82.50
Consumer-cost per shoe $120.00
MASA will offer various discounts and allowances to consumers and its marketing
channel members. Consumers that will receive discounts include individual baseball and softball
players, club, college, and professional teams. The types of discounts and allowances that will be
offered to consumers are quantity, seasonal discounts, online discounts, and trade-in allowances.
These discounts and allowances will allow MASA to attract consumers to purchase its shoes,
build brand loyalty, and strengthen marketing channel relationships (Hartley, Kerin, & Rudelius,
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2013). To illustrate the positive outcome from the discounts and allowances MASA focuses on
consumers first then manufacturers.
Consumers, who are individually purchasing two pairs of MASA, will receive a 20%
quantity discount. In the situation of club, college, and professional teams quantity discounts
differ if they are purchased directly from the manufacturer. When these organizations purchase
15 to 20 pairs of shoes (or in other words, make purchases in bulk) each pair will be $110 and
any amount over 20 pairs of shoes will drop each pair down to a flat rate of $100. Additionally,
if orders are made in bulk online and consumers or sports teams spend more than $150, there will
be free online shipping.
In addition, when the individual consumer is purchasing the athletic shoe during the offseason of baseball and softball they will receive a 10% seasonal discount. When sport
organizations order large quantities of MASA shoes during off-season they will receive 25% off
their purchase. In the case of in-store allowances, MASA will require the consumer bring in their
previously used shoes or cleats receiving in-store credit towards the purchase of the MASA shoe.
When the consumer brings in their previously used cleats or shoes they will automatically
receive a $10 in-store credit and can increase to a maximum of $50 depending on the condition
of the shoe and brand. The in-store allowance is an effort to encourage consumers to recycle
their shoes or cleats.
In an effort to improve business relations, members of the marketing channel include
retailers who will receive benefits from these discounts and allowances. MASA implementing
the in-store allowance in retail stores will be cost-effective with its manufacturers. The used
shoes that consumer’s use for in-store credit will be trade-ins for MASA manufacturers resulting
in lowering prices and being socially responsible. MASA will require its manufacture to recycle
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the material from the shoes given to produce the MASA athletic shoe. MASA will use
cooperative advertising with its manufacturers. In addition, to the MASA athletic shoe being
manufactured, the manufacturer will be able to advertise their own products by paying 50% of
our advertising cost. The implementation of trade-ins and cooperative advertising will strengthen
MASA’s relationship with its marketing channel members.
MASA Product Place (Distribution) in Market
The multi-purpose athletic shoes target market will be consumers who live in the Pacific
and South Atlantic regions of the United States. As Figure 2 displays, this accounts for 33.7% of
the target population (Sports Business Research Network, 2011). The product will be introduced
to the target market segment in phases beginning with regionally then nationally and eventually
internationally. Through this process, this multi- purpose shoe can gain its popularity starting off
small and then expanding and becoming known worldwide. The product will be delivered to the
Pacific and South Atlantic regions first. Expansion of MASA nationally is contingent upon how
successful the product is in the Pacific and South Atlantic regions and any changes that need to
be made to the product. The initial goal is to stimulate demand, create product awareness, and
create a brand.
The multi-purpose athletic shoes (MASA) that have changeable soles are a shopping
product. The distribution process will be limited at first to gain awareness and evolve into
multiple outlets to maintain loyalty. During the introduction phase of MASA, sales will grow
slowly, and profit will be minimal. The lack in profit will be a result of the large investment cost
in the development of MASA. The goal at first is to create consumer awareness and stimulate
trial – the initial purchase of a product by a consumer (Hartley, Kerin, & Rudelius, 2013).
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Advertising and promotions will stimulate demand. MASA shoes will be offered in store-based
retailers and on the Internet from the MASA website. 78.6% of the United States population uses
the Internet (Miniwatts Marketing Group, 2013). Offering MASA in the online market as well as
in stores increases the availability, convenience, communication, and choice to consumers. The
Internet will allow MASA to be more accessible. The interactive communication capabilities of
Internet-enabled technologies increase consumer convenience, reduce information search costs,
and make choice assistance and customization possible (Hartley, Kerin, & Rudelius, 2013). The
price of products can be cheaper online due to fluctuations within supply and demand that could
ultimately attract more potential customers. MASA will be offered in store-based retailers to
accommodate the 21.4% of the population who does not use the Internet. Offering the product in
multiple locations benefits cross-channel shoppers. A cross-channel shopper is an online
consumer who researches products online and then purchases them at a retail store. Furthermore,
51% of the online shopper population is cross-channel shoppers (Hartley, Kerin, & Rudelius,
2013).
MASA will be distributed through multichannel marketing. The blending of different
communication and delivery channels will be attracting, retaining, and building relationships
with consumers who shop and buy in the traditional marketplace as well as online (Hartley,
Kerin, & Rudelius, 2013). Whereas Figure 1 displays downward arrows to emphasize the
markup pricing of our multi-purpose athletic shoes, MASA’s flow of demand stimulation goes in
the opposite direction with the arrows going in an upward direction from the consumer to
retailer, wholesaler, manufacturer and in continuous circulation. MASA focuses on a pull
promotional strategy in which its flow of promotion is mainly advertising directed to consumers
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(Hartley, Kerin, & Rudelius, 2013). Slightly differing from Figure 1, MASA’s channel of
distribution is as follows:
MASA
(Producer)
Consumer
(Athletes, schools, sports
teams, etc.)
There is no agent necessary in the production of MASA but retailers are a vital
intermediary in this channel of distribution. Although MASA has a multichannel distribution
strategy, the company also directly sells to consumers such as schools who would be buying our
product in bulk or even baseball
manufactures the product and
(baseball teams or schools who
Retailer
(Wal-Mart or Target)
teams. In this situation, MASA
directly sells to the consumer
are attracted to our product).
While a wholesaler can be an intermediary to take into consideration, it is not necessary for
MASA since “wholesalers are most common for low-cost, low unit- value items that are
frequently purchased by consumers, such as candy, confectionary items, and magazines”
(Hartley, Kerin, & Rudelius, 2013) which is not the case here. In hopes to create maximum
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profits, MASA will distribute its products to discount retailers such as Target or Wal-Mart.
These stores are reputable for selling good quality products with discounted prices. Therefore,
when the multi-purpose shoes go on sale and MASA is in the process of manufacturing new
designs, they will sell their products to discount retailers for an even lower price than their
discounted rate. It is crucial to note that MASA will never use discount retailers for any multipurpose shoes that are fresh on the market, with new designs because that will clearly hurt the
business of new and innovative multi-purpose shoes. Using discount retailers may be very
beneficial to MASA’s profit growth because it will now target individuals who cannot afford to
pay $140 on a pair of shoes (or in this case two pairs of shoes since MASA serves two
functions). In selling to discount retailers, MASA will not only gain profit from discount retailers
purchasing their products to sell but they will also receive 20% of the profits discount retailers
make off this shoe once they sell it.
MASA Promotion (Integrated Marketing Communications Program)
MASA will target baseball and softball players’ ranging from 14-24 years of age.
However, MASA is not limited to this group; MASA also targets people who are active and
healthy. MASA will advertise in sport specific magazines and popular social media sites, such as
Sports Illustrated and Facebook. This product is targeted towards a broad age range; therefore,
the best way to advertise to this group is through printed ads and social media online to target the
potential clients. MASA will use behavioral targeting to collect information from online users to
determine which outlet online would be best to reach the most potential clients. “Behavioral
targeting uses information for directing online advertising from marketers to those online
shoppers whose behavioral profiles suggest they would be interested. At best, this approach
makes for a user-friendly web world” (Hartley, Kerin, & Rudelius, 2013). The promotion
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objectives for MASA are to raise awareness and interest in the product. In doing so, MASA will
be able to build more clients and begin building brand loyalty.
Building brand awareness and interest is crucial for the success of a new company and
product; the promotion budget will be the all-you-can-afford approach. “This approach allows
money to be spent on promotion only after all other budget items – such as manufacturing costs
– are covered” (Hartley, Kerin, & Rudelius, 2013). The company’s goal is to start-up the
company and be successful and use the discretionary income for promotional needs.
The promotional tools that MASA will focus on are advertising and sales promotion. The
majority of the promotional funds will be spent on social media ads and printed ads in sports
magazines. In addition to advertising, sales promotions will be used to appeal to parents who
have to buy for multiple children or colleges and teams that buy cleats. Even though advertising
is expensive it can effectively reach a large target market. Advertising can also communicate the
specific product benefits to prospective buyers. “By paying for the advertising space, a company
can control what it wants to say, and to some extent, to whom the message is sent. Advertising
also allows the company to decide when to send its message” (Hartley, Kerin, & Rudelius,
2013). MASA will also use sales promotion as a way of letting new customers become aware
and interested in the brand. “The element of sales promotion is a short-term inducement of value
offered to arouse interest in buying a product. Sales promotions are offered to intermediaries as
well as to ultimate consumers. Coupons, rebates, samples, and contests are a few examples of
sales promotions MASA will implement” (Hartley, Kerin, & Rudelius, 2013). The promotions
that MASA will run will be similar to its competitors.
The company can use coupons, rebates, and samples during the introduction stage of its
product life cycle. “The primary promotional objective during the introduction stage is to inform
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the consumers in an effort to increase their level of awareness of the product” (Hartley, Kerin, &
Rudelius, 2013). The company will schedule the advertising with a pulse-schedule. “Pulseschedule advertising facilitates sales throughout the year and during special periods of increased
demand” (Hartley, Kerin, & Rudelius, 2013). After MASA has brand loyalty and customer
awareness of their product the advertising schedule will be a flighting schedule. The flighting
schedule has periods of advertising scheduled between periods of no advertising to reflect
seasonal demand. MASA is specifically targeting baseball and softball, which are Spring sports.
The promotional funds would be spent more efficiently during the Spring to promote the product
for the upcoming season.
The target market has already been determined; therefore, the budget will go into the
designing and implication of the promotional ads. MASA will allocate $200,000.00 towards the
development and designing of the ads. Hiring an outside agency to design the ads will be more
cost effective. MASA will save money by hiring an outside agency to design and develop the
ads, as well as save money by not purchasing the needed equipment or software to develop the
ads (Holmes, 2010). The remaining $300,000.00 will go towards purchasing ads in magazines
and promotional ads on social media sites, which in turn will boast MASA’s number of
prospective consumers which can be seen from Figure 1-A. Due to the fact that MASA is a new
company, magazine ads and social media would be cheaper as opposed to purchasing ad space
on national television which on average would cost more than 60% of the campaigning budget
(Hartley, Kerin, & Rudelius, 2013). MASA will allocate the funds more effectively and
efficiently through behavioral targeting, market researching, and pulse-schedule advertisements.
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MULTI-PURPOSE ATHLETIC SHOE APPAREL
Budget Allocation
Socia Media
AD's,
$150,000.00
AD
Developme
nt and
Design,
$200,000.00
Magazine
AD's,
$150,000.00
Figure 1-A
MASA focuses on a pull promotional strategy in which its flow of promotion is mainly
advertising directed to consumers (Hartley, Kerin, & Rudelius, 2013). MASA will use a pull
strategy because there may be a resistance to a new product and a new brand emerging in an
industry that already has competition such as Under Armour, Nike, and Adidas which have
strong brand loyalty and customer awareness. There is no agent necessary in the production of
MASA but retailers are a vital intermediary in this channel of distribution. “In some instances,
manufactures face resistance from channel members who do not want to order a new product or
increase inventory levels of an existing brand.
A pull strategy directs the promotional mix at ultimate consumers to encourage them to
ask the retailer for a product. Seeing demand from ultimate consumers, retailers order the
product from wholesalers and thus the item is pulled through the intermediaries” (Hartley, Kerin,
& Rudelius, 2013). There are many popular brands retailers keep in stock in their stores.
Retailers can predict their profit and sales forecast with the brands they carry. Retailers may not
want to take the risk of adding a new product into their stores. MASA will need to direct the
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MULTI-PURPOSE ATHLETIC SHOE APPAREL
promotional mix towards the consumers in hopes that the consumers’ demand for their product
will encourage retailers to offer MASA products in their stores. For example, pharmaceutical
companies, where the market is so saturated, the company directs their ads to consumers in
hopes that people will ask their local drug stores or doctor about the specific product and with
enough requests the retailers will begin to offer the product if the demand for the product is high
(Hartley, Kerin, & Rudelius, 2013). Figure 1 –B below shows a pull strategy.
Figure 1 –B
Manufacturer
Wholesaler
Retailer
Consumer
MASA is advertised through the use of Facebook. Its Facebook page can be located by
clicking on the following link: https://www.facebook.com/MASAAthleticShoes. The purpose of
the MASA Facebook page is to communicate with consumers, promote the company and
promote our newly innovated athletic shoes. Facebook is a type of social media that has the
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highest user traffic and MASA is utilizing Facebook to take advantage of this while raising
awareness of the company. The Facebook page will allow interaction with consumers and enable
MASA to build personal relationships with them while providing information about the company
and its athletic shoe. Several screenshots of MASA’s facebook page can be depicted below in
Figures 2-B and 3-C:
Figure 2- B
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Figure 3-C
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Additionally, as mentioned before MASA will use Facebook and magazines ads
(example shown in figure 4-D) as a sources of advertisement. Alongside with social media and
printed ads, MASA will also promote the company through direct marketing. The company will
set up booths and stands at local college games and even peewee games to get the product out to
the public in a faster way. Since the cleats have a discontinuous innovative learning degree
meaning that the consumer requires learning on how to use the new technology correctly
(Hartley, Kerin, & Rudelius, 2013). The best way to spread this information would be to have
expects on the products marketing directly to possible consumers. Since our target market will be
present at a baseball or softball game, this would be the best area to reach them without wasting
time or resources in an attempt to communication others ways that may not be as effective.
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Supporting Exhibits
Mock Print Ad:
Product Mock- Up:
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References
Brunette, D. (2013). Annual Athletic Footwear Sales Up 4%. Retrieved from
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Hartley, S.W., Kerin, R., & Rudelius, W. (2013). Marketing the core (5th ed.). New York, NY:
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Holmes, B. (2010). Why hiring an advertising agency actually costs less than hiring an employee or
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U.S. Census Bureau (2012). U.S. Census Bureau, Statistical Abstract of the United States: 2012.
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http://www.census.gov/compendia/statab/2012/tables/12s1250.pdf