Boa Technology Assignment

Please answer the two questions below. The answers for both must be completed in two pages or three pages (total), single-spaced, double space between paragraphs.

 

o   What are your recommendations for Garett Graubins’ 2015 U.S. marketing plan?

 

• Be specific about which market (B2B, B2I, and/or B2I) you recommend and the 2-3 summits (product categories) deserving the most attention. Offer specific ideas about how to approach that market.  [You are expected to provide justification for your recommendation and implementation plan.]

 

• Whether you recommend building a brand with consumers or not, use two creative idea generation techniques and generate five low-cost, grassroots ideas that would help Boa build a brand in one of its product categories.

 

 

• o   Five low-cost, grassroots ideas that would help Boa build a brand in one of its product categories.

  08 Fall$

  Boa Technology – Marketing An Ingredient Joe Cannon, Professor of Marketing Colorado State University

  Colorado State University, College of Business, Multimedia Case Series #2014-01

   

   

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  $ Boa$Technology:$Marketing$an$Ingredient1$

  Garett’Graubins,’Global’Marketing’Director’for’Boa’Technology’sat’ in’the’Front’Range’Conference’room’at’Boa’Technology'(referred’to’ most’frequently’as’simply’“Boa”).’He’was’preparing’to’meet’with’ his’sevenImember’marketing’team’to’discuss’Boa’s’marketing’ program’for’2015.’In’less’than’a’month’Graubins’would’have’to’pull’

  together’his’ recommendations.’ The’team’would’be’ debating’questions’ around’target’ markets’and’whether’ Boa’needed’to’more’ aggressively’promote’ the’Boa’brand’with’ endIusers.”

  Boa’began’in’the’late’ 1990s’with’an’ entrepreneur’seeking’ a’better’way’to’“lace’

  up”’snowboard’boots’and’hockey’skates.’In’business’for’nearly’15’ years,’Boa’has’grown’quickly’–’having’sold’more’than’70’million’of’ its’reel’and’wire’closure’systems’in’that’time’and’more’than’18’

  1 ‘This’case’was’prepared’by’Joe’Cannon,’Professor’of’Marketing’at’Colorado’State’ University’with’research’assistance’from’Conor’Blanchet.’Cale’Rogers’handled’ multimedia’production.’The’authors’thank’Garett’Graubins,’Mark’Soderberg,’Chuck’ Mason,’and’Ilya’Minkin’for’interviews’that’aided’in’case’development’and’Boa’ Technology’for’sharing’some’of’the’video’content.’The’case’was’developed’as’a’ basis’for’class’discussion,’not’as’an’illustration’of’effective’or’ineffective’ management’and’should’not’be’used’as’a’source’of’primary’data.’Some’data’in’the’ case’has’been’modified’for’reasons’of’confidentiality.’

  million’in’the’last’year.’The’Boa’Closure’System’is’an’ingredient’ used’in’other’products.’Boa’sells’its’closure’systems’to’more’than’ 150’leading’premium’brands’worldwide.’These’brand’partners’are’ mostly’in’various’footwear’categories.’For’example,’Burton,’ FootJoy,’and’Specialized’use’the’Boa’Closure’System’on’select’styles’ of’its’snowboard’boots,’golf’shoes,’and’cycling’shoes,’respectively,’ and’Boa’collaborates’with’these’brand’partners’to’help’each’ integrate’the’Boa’Closure’System’into’these’products’as’a’ replacement’for’shoe’laces,’buckles,’or’Velcro’straps.”

  In’the’U.S.,’almost’all’of’Boa’s’marketing’efforts’focus’on’building’ relationships’with’brand’partners.’Using’a’consultative’selling’ approach,’the’company’s’sales’force’helps’brand’partners’with’ designing’higher’quality’products.’Graubins’wonders’if’it’is’time’to’ build’the’Boa’brand’with’some’consumer’segments.’

  Graubins’and’his’team’have’long’admired’how’some’“ingredient’ brands”’have’built’strong’brand’equity’with’consumers.’Brands’like’ GoreITex'(waterproof’fabric),’Intel'(and’its’iconic’“Intel’Inside”’ campaign’for’computer’chips),’Shimano'(cycling’components),’and’ Nutrasweet'(artificial’sweetener)’are’well’known’by’consumers’II’ even’though’each’is’usually’purchased’as’a’component’in’another’ brand.’Many’consumers’know’and’trust’the’GoreITex’name’II’and’ seek’it’out’when’shopping’for’waterproof’jackets’or’shoes.’When’ buying’a’new’bike,’the’Shimano’name’on’a’derailleur'(used’in’ shifting’gears)’can’be’another’sign’of’quality.’That’kind’of’brand’ equity’helped’these’brands’stave’off’competition’and’offered’ power’in’negotiations’with’partners.’

  ‘

  ‘

  Two$Boa$Closure$System$dials$on$a$Louis$Garneau$cycling$shoe.$

   

  http://www.burton.com/default/concord-boa%C2%AE-snowboard-boot/W15-131781.html?q=boa

  http://www.footjoy.com/catalog/product/95634

  http://www.specialized.com/us/en/ftr/shoes/road-shoes/sworks-road

  http://www.gore-tex.com/remote/Satellite/home

  http://www.intel.com/content/www/us/en/trademarks/intel-inside.html

  http://bike.shimano.com/content/sac-bike/en/home/components1.html

  http://www.nutrasweet.com

   

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  ‘

  Boa’successfully’built’consumer’awareness’for’the’Boa’Closure’ System’among’hikers,’walkers,’and’golfers’in’a’few’select’Asian’ markets.’But’creating’similar’awareness’in’the’United’States’would’ be’expensive’–’and’risky.’Graubins’thought’a’strong’brand’at’the’ consumer’level’might’help’Boa’grow’faster’and’hold’off’ competition.’He’also’wondered’whether’it’might’be’a’better’idea’to’ concentrate’efforts’at’the’retail’level.’In’the’product’categories’ where’Boa’operated,’retailers’are’often’strong’influences’on’ consumer’choice.’Could’Boa’increase’its’training’of’retail’ salespeople’on’its’closure’systems?’Boa’might’develop’better’pointI ofIpurchase’materials’retailers’could’use’to’highlight’Boa’s’benefits.’ Or’was’it’too’soon’for’Boa’to’engage’in’this’type’of’strategy?’ Perhaps’the’best’option’would’be’to’continue’the’efforts’at’the’ brand’partner’and’trade’level.”

  As’Graubins’prepared’for’his’meeting’he’considered’how’the’Boa’ brand’had’evolved’in’the’last’decade,’he’reviewed’market’research,’ and’he’thought’about’how’Boa’s’CEO,’CFO,’and’VP’of’Sales’and’ Marketing’might’think’about’more’aggressively’targeting’ consumers.’He’knew’that’many’were’comfortable’with’the’current’ approach’I’it’was’working’and’the’company’was’growing’fast.’He’

  also’knew’that’some’in’the’company’wouldn’t’want’to’do’anything’ to’take’attention’away’from’potentially’large’emerging’ opportunities’in’the’medical’devices,’safety/utility’footwear,’and’ athletic’shoe’productImarkets.’

  The$“Boa$Lacing$System”$is$Born$$

  After’selling’a’successful’medical’device’company,’entrepreneur’ Gary’Hammerslag’moved’to’Steamboat’Springs,’Colorado’where’he’ enjoyed’snowboarding’and’watching’his’kids’play’hockey.’ Hammerslag’was’a’natural’inventor;’when’he’saw’a’problem’he’ tried’to’solve’it.’He’soon’recognized’that’shoelaces’were’a’poor’ solution’for’tightening’snowboard’boots’and’ice’hockey’skates.’ Laces’didn’t’stay’tight’and’often’came’undone’with’intense’physical’ activity.’ReItying’laces’required’stopping’the’activity’and’taking’off’ gloves’to’complete’the’task.’Problems’were’opportunities’for’ Hammerslag.’His’tinkering’eventually’lead’to’the’Boa’Lacing’System,’ a’novel’combination’of’steel’wire,’eyelets’and’small’reel’than’evenly’ tightens’the’wire’as’the’reel’turns.2’The’video’shows’how’it’works’ today’–’which’is’not’that’different’from’what’Hammerslag’ developed’almost’two’decades’ago.’

  2 ‘“The’Culture’of’Your’Business’Gary’Hammerslag’–’Boa’Technology,”’My#New# Enterprise,’retrieved’November’1,’2014.” https://mynewenterprise.com/bt_hammerslag_culture.php’

   

  http://www.deroyal.com/medicalproducts/orthopedics/boa.aspx

  http://www.redwingshoes.com/footwear/filter-boa

  http://zootsports.com/mens/shoes/m-ultra-race-4-s13

  http://vimeo.com/77419941

  https://mynewenterprise.com/bt_hammerslag_culture.php

   

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  ‘ ‘

  Hammerslag’founded’Boa’Technology’in’1998.”By’2001’Vans’and’ K2’snowboard’boots’featured’Boa.’In’2004,’Boa’could’be’found’on’ cycling’shoes’and’a’year’later’golf’shoes.’Boa’grew’from’there’to’ become’a’global’brand’with’sales’almost’evenly’split’among’Asia,’ Europe’and’the’United’States.’In’2011,’as’Boa’moved’into’markets’ beyond’footwear’–’including’medical’equipment’and’helmets’–’it’ changed’the’product’s’name’to’the’Boa’Closure’System.3′

  Boa$Technology$$

  From’humble’beginnings’in’a’oneIroom’office’above’a’liquor’store’ in’Steamboat’Springs,’Colorado,’Boa’Technology’has’grown’to’120′ employees’spread’between’global’headquarters’in’Denver,’ Colorado,’and’additional’offices’in’Japan,’Hong’Kong,’China,’and’ Austria.’Today’there’are’over’43’million’Boa’reels’and’20’million’ BoaIpowered’products’worldwide.”

  3 ‘“Boa’Technology’s’lacing’system’lands’big’investor,’grows’beyond’shoes,”’Denver# Post,#July’10,’2012,’retrieved’November’1,’2014,’ http://www.denverpost.com/business/ci_21039899/boaItechnologysIlacingI systemIlandsIbigIinvestorIgrows”’

  As’a’small’company,’Boa’faces’some’challenges.’Its’fast’growth’ strains’financial’and’human’resources.’With’many’opportunities,’ Boa’has’to’be’selective’in’deciding’where’to’direct’these’resources.’ The’company’has’some’vulnerability’to’competitors’with’deep’ pockets’that’might’try’to’move’into’the’same’markets’with’a’similar’ alternative’closure’system.’While’Boa’found’it’relatively’easy’to’ enter’categories’like’cycling’and’snow’sports’where’its’employees’ are’also’customers’and’they’know’the’categories’well,’they’have’no’ such’advantage’in’new’markets’like’medical’devices’and’ safety/utility’footwear.”

  ‘

  Boa’builds’on’its’strengths.’Most’Boa’Closure’Systems’can’be’found’ on’outdoor’and’athletic’footwear’–’and’Boa’has’attracted’an’active’ and’engaged’workforce.’It’helps’that’Boa’employees’know’and’use’ its’product’–’they’are’riders,’hikers,’runners,’golfers,’and’cyclists.’ Those’same’employees’are’known’for’their’tenacity’and’grit’in’ solving’customer’problems.’Boa’also’enjoys’some’patents’that’help’ protect’its’innovative’products.’The’small’company’has’also’been’ nimble’–’seizing’on’new’opportunities’as’they’arise’–’and’dedicated’ to’producing’a’high’quality’product.’The’company’s’strong’

   

  https://vimeo.com/16408299

  https://vimeo.com/111158862

   

  ! 5

  leadership’team’has’a’wealth’of’experience’in’both’the’sports’and’ technology’markets.”

  Boa#Technology#Leadership#Team##

  Mark’Soderberg’is’Boa’Technology’s’President’and’CEO.’Soderberg’ has’been’with’the’company’since’2002’after’working’for’more’than’ a’dozen’years’in’the’ski’industry.’He’served’as’president’for’10’years’ before’adding’CEO’to’his’title’when’Gary’Hammerslag’stepped’ down’in’2012.’Mark’s’background’is’in’engineering’and’he’uses’Boa’ when’he’mountain’bikes’–’and’also’on’a’medical’brace’when’he’ injures’himself’in’his’favorite’sport'(which’he’did’just’recently).”

  Merle’McCreery’is’Boa’Technology’s’Chief’Financial’Officer.’He’has’ been’with’Boa’for’three’years’after’working’for’many’years’in’high’ tech.’McCreery’is’part’of’the’approval’process’for’the’annual’ marketing’budget’and’he’expects’marketing’proposals’to’show’a’ positive’return.’Merle’wears’Boa’s’when’he’golfs.’

  Boa’s’Vice’President’of’Sales’and’Marketing’is’Chuck’Mason.’He’has’ been’with’the’company’for’more’than’four’years.’He’began’his’ career’as’a’buyer’for’Christy’Sports,’a’regional’retailer’specializing’in’ ski’and’snowboard’equipment.’He’later’worked’in’sales’ management’for’major’snowboard’and’ski’brands’K2’and’Burton.’ Chuck’tightens’Boa’Closure’Systems’before’hiking,’cycling’and’ snowboarding.”

  Garett’Graubins,’Director’of’Global’Marketing,’has’been’with’Boa’ for’6’years.’He’leads’a’team’of’seven’in’the’marketing’department.’ Garett’previously’worked’at’The’Integer’Group'(a’DenverIbased’ad’ agency),’TrailRunner’Magazine,’and’The’North’Face.’Garett’recently’ finished’his’MBA’at’Colorado’State’University.’Garett’dials’in’his’Boa’ before’running’trails'(he’recently’completed’the’Hardrock’100IMile’

  Endurance’Run),’flying’down’mountains’on’his’snowboard,’or’ hopping’on’his’road’bike.”’

  Manufacturing#and#Supply#Chain#

  Boa’outsources’production’of’its’reels’to’a’Chinese’firm’that’ manufactures’to’Boa’s’rigid’specifications.’The’Boa’Closure’System’ comes’in’a’range’of’sizes,’colors,’and’torque/power’levels.’Boa’tries’ to’avoid’making’custom’products’for’each’application,’preferring’to’ find’the’component’in’its’product’line’that’best’meets’a’customer’s’ needs.’Adding’the’Boa’Closure’System’to’a’product’might’cost’from’ $1I$10′(cost’to’the’brand’partner:’the’multiplier’to’the’end’user’ may’be’as’high’as’4x’that’amount)’depending’on’size,’durability,’ torque/power’level,’and’the’length’of’the’wire’lace.’Greater’torque’ is’needed’to’close’snowboard’and’ski’boots’for’example,’as’ compared’to’hiking’shoes.”

  Boa’maintains’a’warehouse’in’Hong’Kong.’The’factories’producing’ Boa’brand’partners’’shoes,’boots,’or’other’products’order’directly’ from’Boa.’Boa’then’ships’the’order’directly’to’that’factory.”

  Competition$and$Competitive$Advantage$

  Boa’faces’competition’with’different’types’of’products’that’also’ perform’the’closure’function.’In’many’product’categories’traditional’ shoelaces,’buckles,’or’Velcro®’might’be’used’for’closure.’The’type’ of’competitor’varies’across’product’categories.’For’example,’many’ snowboard’and’ski’boots’use’buckles,’possibly’supplemented’by’ Velcro®’for’closure.’On’the’other’hand,’hiking’shoes/boots,’golf’ shoes,’and’safety’shoes’most’often’use’laces.”

  As’Boa’s’reel’system’has’gained’in’popularity,’products’from’ competitors’have’emerged.’While’Boa’s’patents’and’its’firstImover’ advantage’have’helped’it’slow’copycat’competition,’the’downside’

   

   

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  of’Boa’s’success’is’the’attention’it’draws’from’competitors.’If’Boa’ continues’its’success,’competitors’will’work’around'(or’ignore)’ Boa’s’intellectual’property’and’patents.’In’the’cycling’market,’ Rocket’7’s’Freelock’includes’a’similar’system’–’although’this’brand’ produces’a’limited’number’of’highIend’custom’shoes.’

  Boa’s’policy’of’only’working’with’premium’brands’has’also’brought’ in’new’competition.’Boa’actively’seeks’premium#brands’that’it’feels’ are’the’best’fit’for’its’premium’closure’system’and’where’Boa’can’ add’the’most’value.’Boa’sometimes’refuses’to’work’with’brands’ that’it’believes’are’not’a’good’fit’for’its’brand’image.’This’happened’ in’South’Korea,’where’ATOP’Closure’Systems'(a’competitor’that’ also’sells’a’dialIbased’closure’system)’out’of’Taiwan’found’a’ beachhead’with’brands’Boa’was’unable’to’work’with.’In’South’ Korea,’more’than’half’of’all’hiking’boots/shoes’are’sold’with’a’BoaI like’dial’closure.’So’almost’every’brand’felt’it’had’to’have’at’least’ some’products’in’its’line’with’this’style’of’closure’system.’Most’ went’to’Boa’first,’but’when’Boa’refused’to’work’with’them,’they’ turned’to’ATOP.’ATOP’s’subsequent’quality’problems’and’Boa’s’ willingness’to’partner’with’brands’it’had’previously’declined’helped’ Boa’regain’most’of’this’market.’But’Boa’remains’concerned’that’ consumers’are’unable’to’distinguish’between’Boa’and’ATOP.’

  ‘ ‘

  Competitive#Advantages#of#the#Boa#Closure#System#

  As’compared’to’these’traditional’closure’systems,’the’Boa’Closure’ System’offers’a’range’of’features’and’benefits’including:’

  • GloveIlike’fit’–’precise’customer’comfort’fit’without’ pressure’points.’

  • MicroIadjustable’–’Boa’s’reels’can’be’finely’tuned’to’ maximize’comfort.’

  • Fast’–’the’easy’on,’easy’off’system’saves’time’–’a’big’ benefit’in’some’categories.”

  • OnItheIfly/oneIhanded’operation’–’With’easy’oneIhanded’ adjustment,’laces’can’be’adjusted’while’still’riding’a’bike’or’ without’removing’gloves’on’the’side’of’a’ski’slope.”

  • Powerful’closure’–’once’the’Boa’Closure’system’is’locked’in’ place,’laces’stay’tight.’

  • Durable’–’using’aircraft’grade’stainless’steel’cables,’Boa’ offers’a’lifetime’warranty’on’its’closures.’

  • Never’comes’untied’–’especially’valued’by’those’in’ competition.’

   

  https://vimeo.com/111158841

   

  ! 7

  • Lightweight’and’easy’to’clean’–’Boa’doesn’t’attract’mud’or’ ice,’cutting’weight’for’skiers’or’mountain’bikers.’

  ‘

  Boa’s’main’competitive’disadvantage’is’the’closure’system’s’cost’ compared’to’laces’or’Velcro®.’Depending’on’the’size’and’ torque/power’required’for’closure,’footwear’products’using’one’of’ these’traditional’systems’may’cost’from’$20I$60’less’at’retail’as’ compared’to’a’similar’product’using’a’Boa’Closure’System.4’As’an’ example,’when’adidas’introduced’its’tour360’golf’shoe’in’late’2014,’ the’manufacturers’suggested’retail’price'(MSRP)’was’$180’with’a’ Boa’Closure’System’and’$140’without.5’Sometimes’a’brand’will’use’ the’unique’nature’to’enhance’margins’whereas’some’brands’may’ sacrifice’margin’in’order’to’move’more’product’and’better’establish’

  4 ‘Assume’the’average’Boa’Closure’System’sells’to’the’brand’partner’factory’for’ $3.90’per’unit'(per’dial)’and’provides’Boa’with’a’50%’contribution’margin.’95%’of’ all’systems’involved’two’units'(e.g.,’one’each’on’a’pair’of’shoes).’Larger’systems,’ like’those’used’in’snow’sports,’sell’for’almost’twice’that’amount’and’smaller’ systems’in’shoes’are’about’25%’lower.’Actual’data’disguised’for’confidentiality.” 5 ‘“Adidas’Golf’Introduces’tour360’x’golf’shoes,”’GolfWeek,’October’18,’2014,’ downloaded’on’November’2,’2014’at’ http://golfweek.com/news/2014/oct/18/adidasIgolfIshoesItourI360IxIboaIclosureI systemI/’

  their’position’with’the’Boa’Closure’System.’Many’customers’value’ the’benefits’Boa’s’closure’system’delivers.’Select’online’customer’ reviews’can’be’seen’in’the’case’appendix’Exhibit’1.”

  One’of’Boa’s’competitive’advantages’relative’to’other’reelI’and’dialI based’closure’systems’comes’from’its’strong’relationships’with’ brand’partners’through’collaboration’in’development’and’design.’ Boa’s’systems’are’also’of’higher’quality’and’include’a’lifetime’ warranty.’Boa’also’sells’at’a’10I40%’premium’over’competitive’reel’ systems’like’ATOP,’Freelock,’and’JogDial.”

  Boa’s$“Seven$Summits”$$$

  Boa’s’“Seven’Summits”’are’the’seven’product’categories’that’make’ up’90%’of’Boa’sales.’While’Boa’is’committed’to’climbing’all’of’these’ summits,’each’summit’varies’in’market’potential’and’Boa’s’current’ position’differs’as’well.’There’are’also’major’differences’across’ Boa’s’three’main’global’markets’–’the’U.S.,’Asia,’and’Europe.’Exhibit’ 2’in’the’case’appendix’provides’an’overview’of’the’seven’summits’ and’we’elaborate’below.”

  Snow#Sports#–#Snowboard#and#on’Ski#

  Snow’sports’were’Boa’s’first’market.’Skiing’and’snowboarding’have’ longer’wires’and’place’more’stress’a’closure’system’and’ consequently’rely’on’Boa’s’larger’and’higher’torque’models.’ Convenience,’quick’release,’and’the’ability’to’microIadjust’the’fit’ throughout’the’day’appeals’to’snow’sport’enthusiasts.’Most’major’ snowboard’boot’makers’now’sell’several’models’using’the’Boa’ Closure’System’and’almost’half’of’all’snowboard’boots’now’include’ one.’About’600,000’pairs’of’snowboots’are’sold’in’the’United’States’ annually.”

   

  https://vimeo.com/5600228

  http://golfweek.com/news/2014/oct/18/adidas-golf-shoes-tour-360-x-boa-closure-system-/

   

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  The’retail’market’for’snowboard’equipment’and’apparel’is’highly’ fragmented’with’many’different’outlets.’The’market’includes’more’ than’1200’different’locations.’It’is’dominated’by’specialty’shops,’ which’in’2012’sold’about’57%’of’all’equipment’and’apparel'(down’ 11%’from’previous’year,’in’dollar’volume).’Online’sellers’account’ for’27%'(up’5%)’with’chain’stores’accounting’for’16%'(down’12%’in’ dollars).6”

  Cycling#

  Cycling’was’another’early’category’for’Boa.’Cyclists’like’the’ability’to’ reach’over’and’singleIhandedly’tighten’their’shoes’on’the’fly.’This’is’ one’of’the’company’s’best’markets’with’a’higher’market’share.’ More’recently’some’manufacturers’have’added’Boa’to’helmets’for’ improved’fit.”While’1.7’million’cycling’shoes’are’sold’annually,’only’ higher’end’shoes’are’a’good’candidate’for’a’Boa’Closure’System.’

  The’cycling’shoe’market’is’highly’fragmented’with’dozens’of’brands.’ The’shoes’are’often’sold’at’retail’bike’shops’II’another’fragmented’ market’dominated’by’independent’specialty’shops.’There’are’about’ 3700’independent’bike’shops,’almost’all’carrying’cycling’shoes,’but’ online’stores’from’Amazon’to’BikeShoes.com,’and’Zappos’also’sell’ the’shoes.’Total’dollar’sales’of’bicycle’shoes’have’shown’modest’ growth’in’recent’years.”

  Golf#

  The’Boa’Closure’System’can’be’found’on’different’styles’of’golf’ shoe’brands,’including’FootJoy,’Adidas,’and’Mizuno.’Golfers’ appreciate’the’precision,’durability,’convenience’and’comfort’the’ system’offers.’In’the’U.S.,’Boa’s’market’penetration’is’still’limited’to’ the’low’single’digits,’percentageIwise’–’but’the’real’size’of’the’ 6 ‘“Snowboard’Equipment’Market’Briefing”’TransWorld#Business,’June’3,’2013;’ http://business.transworld.net/131703/features/snowboardImarketIbriefing/”’

  opportunity’might’be’reflected’in’the’success’Boa’has’seen’in’Asia.’ It’is’estimated’that’more’than’50%’of’all’golf’shoes’sold’in’the’ Japanese’golf’market’in’2015’will’include’a’Boa’Closure’System.7’In’ the’United’States’about’3.4’million’golf’shoes’are’sold’annually.”

  Boa’recently’commissioned’market’research’to’learn’more’about’ the’U.S.’golf’market.’More’than’590’core’golfers'(defined’as’those’ playing’eight’or’more’rounds’per’year)’completed’an’online’survey.’ The’study’found’38%’aided’awareness’of’Boa’Closure’Systems,’ although’among’those’aware’only’13%'(so’5%’of’the’total’sample)’ indicated’they’were’extremely’or’very’familiar’with’Boa.”

  Golf’shoes’are’sold’through’a’wide’range’of’channels;’about’40%’ are’sold’in’offIcourse’specialty’stores'(e.g.,’Golf’Smith,’Golf’Galaxy),’ about’a’quarter’are’sold’online,’and’another’15%’each’through’onI course’channels'(pro’shops’at’golf’courses)’and’sporting’goods’ stores.’Golf’shoes’are’sold’through’an’estimated’9000’outlets’in’the’ U.S.”While’onIcourse’channels’do’not’sell’as’many’shoes,’presence’ in’these’channels’raises’customer’awareness’–’which’may’lead’to’ actual’sales’in’other’channels.”While’FootJoy’has’the’largest’market’ share,’Puma,’Adidas’Golf,’and’Ecco’are’the’shoe’brands’most’ associated’with’innovation,’style’and’performance.”

  Trail#and#Outdoor#

  Hiking’boots’and’lowItop’hiking’shoes’have’grown’in’popularity’–’ for’use’on’the’trail’and’around’the’town.’Hikers’appreciate’the’ durability’and’security’Boa’brings.’The’outdoor’market’is’finding’ nonIfootwear’uses’by’bringing’Boa’to’backpacks’for’waist’and’ lumbar’adjustment’and’hydration’packs'(Boa’adjusts’the’fit’and’can’

  7 ‘”Adidas’Golf’Introduces’tour360’x’golf’shoes,”’GolfWeek,’October’18,’2014,’ downloaded’on’November’2,’2014’at’ http://golfweek.com/news/2014/oct/18/adidasIgolfIshoesItourI360IxIboaIclosureI systemI/’

   

   

  ! 9

  reduce’water’“slosh”).’South’Korean’customers’particularly’favor’ Boa’–’with’about’half’of’their’hiking’shoes’and’boots’including’a’Boa’ Closure’System.’In’the’United’States’the’market’is’much’larger’ (estimated’at’3.1’million’shoes’and’boots’per’year)’but’market’ penetration’for’Boa’remains’modest'(less’than’1%).”

  Boa’recently’commissioned’a’study’of’the’hiking’market,’surveying’ 825’hikers'(who’reported’hiking’four’or’more’times’per’year).’In’the’ hiking’market,’aided’awareness’of’the’Boa’Closure’System’was’17%’ IIwith’only’12%’of’those’customers’indicating’extremely’or’very’ familiar’with’Boa.’Boa’seemed’to’show’appeal’to’this’market.’ Among’those’exposed’to’the’concept,’75%’of’shoe’buyers’and’85%’ of’boot’buyers’indicated’they’definitely’or’probably’would’try’Boa’ equipped’footwear.’These’numbers’are’well’beyond’the’normative’ range.’The’study’showed’that’Merrell’and’The’North’Face’were’ brands’perceived’as’having’higher’performance,’better’comfort/fit,’ and’more’innovative’and’aligned’well’with’Boa.”

  Hiking’shoes’were’primarily’sold’through’sporting’goods'(29%),’ outdoor’specialty'(25%),’athletic’specialty'(15%),’and’online'(11%)’ stores.’Most’of’the’11,000’shoe’stores’in’the’U.S.’sell’some’form’of’ hiking’shoe’or’boot.’As’compared’to’hiking’shoes,’the’channels’for’ hiking’boots’show’some’differences,’with’more’volume’going’ through’outdoor’specialty'(41%),’then’sporting’goods'(26%),’online’ (9%)’and’athletic’specialty'(8%).’The’hiking’shoe’market’includes’ dozens’of’brands,’but’just’six’have’more’than’5%’market’share’and’ the’leaders’are’well’known’in’athletic’footwear:’Nike'(20%),’Adidas’ (14%),’and’New’Balance'(14%)’are’market’leaders.’Hiking’boots’are’ dominated’by’brands’well’known’in’outdoor’apparel,’led’by’ Timberland'(22%),’Columbia'(13%),’and’The’North’Face'(12%).”

  #

  #

  Utility/Safety#

  Boa’sees’a’huge’opportunity’in’the’utility’and’safety’shoe’market.’ The’market’is’much’larger’overall’as’compared’to’some’of’the’ athletic’markets’–’and’Boa’s’Closure’System’offers’many’endIuser’ benefits.’Simply’getting’shoelaces’off’the’shoe'(and’the’floor)’ makes’it’safer’and’oneIhanded’closing’allows’workers’to’easily’ adjust’fit’–’a’big’benefit’to’workers’who’often’wear’gloves’on’the’ job.’

  The’European’market’is’especially’attractive.’Strict’regulations’ govern’worker’safety’in’Europe.’Many’employers’purchase’the’ shoes’for’employees,’leading’to’less’price’sensitivity.’One’of’the’ larger’makers’of’utility/safety’shoes’in’Europe’is’Bata’Industrials’ (see’video).’The’U.S.’market’still’offers’many’opportunities’–’ particularly’in’the’construction’and’manufacturing’sectors8’–’with’ an’estimated’300’million’pairs’of’utility’and’safety’shoes’sold’ annually.’

  ‘

  8 ‘“Industrial’Protective’Footwear’Market’–’Global’Industry’Analysis,’Size,’Share’ 2013I2019,”’found’at’LinkedIn,’on’November’2,’2014’http://goo.gl/MpKnNF’

   

  https://vimeo.com/70873884

   

  ! 10

  While’the’U.S.’market’is’not’seen’as’quite’as’attractive’an’ opportunity’as’Europe,’many’of’the’same’benefits’carry’over.’On’ sheer’size’alone’the’utility/safety’market’is’much’larger’than’the’ summits’described’above’and’growth’is’predicted’to’continue.”

  Athletic#Shoes#

  Athletic’shoes,’running’shoes’in’particular,’are’another’large’ potential’market’where’Boa’has’yet’to’gain’a’foothold'(pun’ intended).’The’company’is’building’a’basecamp,’working’with’ specialty’brand’Zoot’Sports,’which’focuses’on’footwear’in’the’ triathlon’niche’and’this’might’be’the’market’segment’where’Boa’ finds’a’beachhead.’The’lightweight’and’fast’Boa’Closure’System’has’ high’value’for’these’customers.’Triathletes’that’must’change’ footwear’midIcompetition’see’benefits’from’Boa’s’quick’on/off’ performance.”’

  Boa’sees’a’huge’opportunity’if’its’closure’system’benefits’of’gloveI like,’precision’fit’and’light’weight’can’be’transferred’to’the’giant’ running’shoe’market.’High’top’basketball’shoes’along’with’football,’ baseball,’and’soccer’cleats’also’offer’big’opportunities.’Across’all’ athletic’shoes,’Boa’estimates’more’than’250’million’shoes’are’sold’ in’the’United’States’each’year.’Most’of’the’nation’s’11,000’shoe’ stores’sell’athletic’shoes,’with’1700’specialty’athletic’shoe’stores.”

  Medical#Devices##

  A’wide’range’of’medical’devices’can’operate’better’with’a’Boa’ Closure’System’than’they’do’with’hookIandIloop'(i.e.’Velcro®).’ Boa’s’microIadjustability,’and’oneIhanded’operation’offer’real’ benefits’on’braces’–’and’this’is’where’Boa’has’made’its’first’inroads.’ This’market’is’also’huge,’with’an’estimated’115’million’braces’and’ adjustment’prosthetics’sold’annually’in’the’United’States.’With’an’ aging’population’this’market’offers’potentially’high’growth.’This’

  market’is’a’bit’more’difficult’to’approach,’as’it’differs’significantly’ from’Boa’s’traditional’markets’and’lies’beyond’its’core’competency.”

  Boa’s’efforts’in’this’category’are’preliminary.’The’opportunity’is’ very’large.’But’uncertainty’around’the’effects’of’the’Affordable’Care’ Act’and’insurance’along’with’Boa’s’inexperience’working’with’this’ type’of’market’have’Boa’proceeding’with’caution’in’the’medical’ device’market.”’

  Selling$an$Ingredient$

  Boa’makes’an’“ingredient”’that’is’added’to’other’products’–’and’ the’total’package’delivers’greater’customer’value.’Exhibit’3’in’the’ case’appendix’provides’a’figure’that’shows’Boa’s’place’in’the’ customer’and’supply’chain.”

  1. Ryder.’The’beginning’of’this’chain’shows’Ryder,’the’Chinese’ manufacturer’that’produces’most’of’Boa’s’Closure’Systems’ which’it’ships’to…”

  2. !’Boa’s’Warehouse.’As’noted’earlier,’Boa’warehouses’ most’of’its’Boa’Closure’Systems’in’Hong’Kong’where’it’ awaits’orders’from…’

  3. !’brand’partner’factories.’The’brand’partner’factories’have’ no’control’over’the’closure’systems’they’use’–’these’are’ contract’manufacturers’that’produce’shoes,’boots,’or’ medical’devices’based’on’specifications’from…’

  4. !’Boa’s’premium’partner’brands.’The’premium’brands’ with’well’known’names’like’FootJoy,’Red’Wing,’adidas,’and’ Specialized’collaborate’with’Boa’on’development’and’ design’of’shoes’that’include’the’Boa’Closure’System.’Boa’s’ premium’partner’brands’almost’exclusively’rely’on…’

  5. !’retail’channels’of’distribution’–’often’specialty’shops’in’ these’categories’–’to’sell’to…’

   

   

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  6. !’consumers’–’the’ultimate’purchaser’and’endIuser’of’a’ product’with’a’Boa’Closure’System.”

  Garett’Graubins’believes’that’Boa’has’three’broad’targets’that’ could’be’the’centerpiece’of’his’marketing’strategy’–’brand’partners,’ retailers,’and’consumers.’Currently’Boa’s’efforts’with’each’target’ vary’considerably.”

  ‘

  The#B2B#(BusinessLtoLBusiness)#Strategy#–#Focus#on#Brand#Partners#

  Boa’s’current’strategy’in’almost’all’of’its’productImarkets’focuses’ on’building’and’maintaining’relationships’with’its’more’than’100′ premium’brand’partners.’Boa’carefully’cultivates’longIterm’ partnerships’with’a’select’group’of’brand’partners.’As’a’premium’ ingredient,’Boa’understands’that’its’reputation’is’tied’closely’to’the’ products’it’goes’into’–’so’it’will’not’work’with’every’brand’in’a’ market.’Boa’conducts’market’research’to’find’which’brands’in’a’ category’have’more’innovative’customers,’more’likely’to’try’ something’new’like’the’Boa’Closure’System.”

  Boa’works’closely’with’its’brand’partners’throughout’the’design,’ manufacturing,’and’marketing’process.’The’collaboration’is’ mutually’beneficial,’with’Boa’s’team’assuring’the’highest’quality’ products’and’applications’–’which’results’in’greater’sell’through’ that’benefits’Boa.’This’attention’to’quality’and’responsiveness’to’ warranty’claims’fosters’the’close’relationships.’Boa’s’brand’partners’ see’the’value’in’this’type’of’buyerIseller’relationship.’Doug’ Robinson,’VP’of’Product’Design’and’Development’with’premium’ brand’golf’partner,’FootJoy,’discusses’the’collaborative’partnership’ his’company’enjoys’with’Boa.”

  ‘ In’its’early’years,’Boa’typically’granted’the’first’brand’in’a’new’ product’category’one’year’of’exclusive’rights’in’that’category.’This’ means’that’Boa’would’not’sell’to’other’brands’in’the’category’for’ the’protected’time’period.’The’exclusive’arrangement’rewarded’ and’incentivized’a’brand’for’the’pioneering’work’it’did’to’make’its’ customers’aware’of’the’unique’benefits’of’the’Boa’Closure’System.’ Boa’no’longer’finds’it’necessary’to’grant’exclusive’arrangements.”

  Boa’thought’that’brand’partners’would’continue’to’promote’the’ Boa’Closure’System’–’even’after’exclusive’arrangements’had’ expired.’Boa’figured’it’could’save’marketing’dollars’having’its’brand’ partners’build’the’Boa’name’as’these’partners’touted’the’benefits’ of’the’Boa’Closure’System’on’their’products.’That’worked’well’ when’new’partners’came’on’board’–’when’partners’were’excited’ about’the’benefits’the’new’feature’brought’to’their’shoes’and’ boots.’But’after’a’year’or’two,’brand’partners’typically’promoted’ the’newest’product’features’–’and’the’Boa’closure’became’“old’ news.”’Boa’realized’that’building’the’Boa’brand’was’going’to’need’ to’be’left’to’Boa.’Mark’Soderberg,’CEO’of’Boa’Technology’discusses’ this’in’the’video’below.’Boa’discovered’that’if’it’wanted’to’build’ brand’equity’at’the’consumer’level,’it’was’unlikely’to’get’the’ sustained’support’it’would’take’from’its’brand’partners.”

   

  https://vimeo.com/53099196

   

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  ‘

  #

  B2I#(BusinessLtoLInfluencer)#Strategy#–#Focusing#on#Retailers#

  In’most’of’major’categories’where’Boa’operates,’retailers,’the’retail’ environment,’and’retail’salespeople’work’with’consumers.’Retail’ salespeople’typically’assist’in’the’purchase’of’athletic’shoes’as’well’ as’with’hiking,’snowboard,’and’ski’boots.’Retail’salespeople’help’ customers’with’decisions’about’styles’and’fit.’Customers’will’usually’ pick’up’a’product’and’see’how’it’works.’Online’stores’have’ mimicked’this’type’of’interaction’with’information,’photos,’and’ often’videos.’Many’final’choices’in’these’categories’are’made’in’a’ store’following’these’kinds’of’interactions.’Retail’can’have’an’ influence’on’consumer’choice’–’and’Boa’could’increase’its’ marketing’at’this’influencer’stage.”

  “Taste’of’Boa”’is’one’program’Boa’has’used’to’influence’the’ influencers.’Boa’s’top’management’team’universally’points’to’Taste’ of’Boa’as’one’of’Boa’s’most’successful’marketing’efforts.’Taste’of’ Boa’allows’nearly’any’lowIcut’shoe’to’be’retrofitted’with’a’Boa’ Closure’System.’The’program’has’been’used’at’the’past’three’

  Outdoor’Retail’tradeshows’–’a’show’that’attracts’media,’industry’ influencers,’potential’brand’partners,’and’retailers’that’sell’Boa’s’ brand’partner’s’products.’Visitors’to’the’tradeshow’can’drop’off’ their’shoes’and’have’their’shoelaces’replaced’with’a’Boa’Closure’ System.’As’Graubins’says,’“Once’people’try’Boa,’they’love’Boa.’This’ retrofit’project’is’designed’to’give’people’a’taste’of’Boa’so’that’they’ can’learn’what’tens’of’millions’of’people’know’already’–’that’Boa’is’ better.”’The’program’is’not’inexpensive’for’Boa.’Taking’Taste’of’Boa’ to’a’trade’show’adds’travel’cost’to’labor’and’parts’–’eventually’ running’$70I90’to’retrofit’a’pair’of’shoes.’Over’the’course’of’a’fourI day’trade’show’Boa’can’retrofit’500’pairs’of’shoes’–’and’has’ demand’for’many’more.’While’costly,’the’program’lets’an’ influencer’try’Boa’on’a’pair’of’shoes’they’already’know’and’like,’and’ it’costs’less’than’offering’a’partner’brand’s’shoes’on’a’ complimentary’basis.’Click’on’the’video’to’hear’Boa’s’Vice’President’ of’Sales’and’Marketing’Chuck’Mason’talk’about’Taste’of’Boa.”

  ‘ ‘ There’are’other’ways’that’Boa’might’educate’the’retail’influencer.’ While’Boa’exhibits'(sets’up’a’booth)’at’a’few’trade’shows’per’year9,’

  9 ‘In’2014,’Boa’was’an’exhibitor’at’the’two’Outdoor’Retailer’shows’and’The’Running’ Event.”

   

  https://vimeo.com/111155659

  https://vimeo.com/111156747

   

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  key’marketing’and’senior’management’personnel’typically’attend’a’ dozen’or’more’trade’shows’each’year.”Trade’shows’offer’an’ opportunity’for’Boa’to’connect’and’network’with’current’and’ potential’brand’partners’and’retailers.”

  Boa’might’be’able’to’increase’its’influence’on’consumer’decisions’ through’retail’in’different’ways.’Boa’might’increase’pointIofI purchase’displays’to’demonstrate’the’benefits.’Boa’could’create’ video’“reviews”’that’online’retailers’could’post.’The’company’might’ also’seek’to’educate’retail’salespeople’on’the’benefits’of’the’Boa’ Closure’System’through’training.’Boa’might’offer’a’program’to’ encourage’customers’to’buy’a’BoaIpowered’product’at’a’discount.’ Until’now,’Boa’s’focus’on’retail’has’been’limited,’but’Graubins’ wonders’if’now’is’the’time’to’ramp’up’efforts’at’this’level.”’

  2C#(BusinessLtoLConsumer)#Strategy#–#Building#Ingredient#Brand# Equity#with#Consumers#

  The’last’strategic’option’was’to’invest’in’consumer’branding’–’to’ build’awareness’and’preference’for’the’Boa’Closure’System’at’the’ consumer’level.’Graubins’thought’growth’could’be’accelerated’with’ more’consumer’awareness.’Customers’that’tried’Boa,’liked’Boa’–’a’ lot.’If’Boa’could’speak’directly’to’consumers,’it’could’control’the’ messaging’about’the’benefits’of’the’closure’system.’Boa’was’also’ concerned’about’the’possibility’of’new’entrants’that’could’offer’ similar’style’closure’devices.’If’customers’failed’to’see’differences’ between’closure’systems,’a’price’war’might’break’out’with’brand’ partners’playing’suppliers’off’one’another’for’lower’prices.’ Customer’awareness’of’and’preference’for’Boa’might’help’fend’off’ this’type’of’competition.”

  On’the’other’hand,’Graubins’wondered’if’a’strong’Boa’brand’might’ alienate’its’brand’partners’and’harm’carefully’developed’ collaborative’relationships.’A’brand’partner’does’not’want’to’hear’

  that’customers’are’coming’in’asking’for’“golf’shoes’with’that’Boa’ Closure’System”’instead’of’“those’new’adidas’golf’shoes.”’It’would’ be’prohibitively’expensive’to’build’brand’awareness’across’all’of’ Boa’s’categories’–’but’he’might’be’able’to’build’a’case’in’selected’ product’categories’or’with’specific’target’markets.”

  While’such’efforts’have’not’been’used’in’the’U.S.,’Boa’has’had’ some’success’in’the’Asian’market.’As’noted’earlier,’competition’in’ the’South’Korean’hiking’ shoe/boot’market’ forced’Boa’to’expand’ its’roster’of’partners’ there.’Boa’also’fought’ off’competition’with’a’ print,’public’relations,’ and’social’media’ advertising’campaign’ directed’at’South’ Korean’hikers.’At’the’ same’time,’Boa’also’ increased’its’ investment’in’ supporting’its’South’ Korean’brand’partners’’ marketing’efforts.’A’ sample’of’the’“Dialed’ In”’campaign’is’shown’ here.10”’When’the’ campaign’started’Boa’ had’about’10%’share’of’ the’hiking’market,’but’ after’adding’more’

  10 ‘In’South’Korea’it’is’not’unusual’for’ads’–’like’this’one’–’to’include’both’written’

  English’and’Korean.”

   

   

  ! 14

  brands’and’building’consumer’preference,’almost’half’of’all’new’ hiking’shoes/boots’are’now’equipped’with’a’Boa’Closure’System.’ Boa’has’also’used’advertising’and’other’consumerIdirected’ promotional’efforts’targeting’the’Japanese’golfer’–’and’about’half’ of’all’golf’shoes’in’Japan’sold’today’are’BoaIpowered.’These’efforts’ have’helped’revive’Boa’s’growth’in’snowboarding’in’Japan’and’ spark’an’opportunity’in’casual’footwear.’Graubins’wondered’if’ similar’results’could’be’achieved’in’the’much’larger’U.S.’market.”

  Influenced’by’Geoffrey’Moore’s’Crossing#the#Chasm,’Graubins’ thought’the’mainstream’U.S.’market’may’not’be’ready’for’new’shoe’ closure’technology.’Crossing’the’Chasm’referred’to’the’diffusion’of’ new’technological’innovations’to’a’broader’market.’Moore’ suggested’that’innovators’and’early’adopters’sought’technology’ and’performance’–’while’latter’adopters’would’buy’a’solution’and’ convenience.’This’suggested’that’categories’most’ripe’for’branding’ might’be’those’further’along’the’product’adoption’curve'(see’ Technology’Adoption’Lifecycle’graphic’below).”

  $

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  http://www.amazon.com/Crossing-Chasm-Marketing-High-Tech-Mainstream/dp/0060517123

  http://www.freshnessmag.com/2013/07/18/spectusshoeco-fallwinter-2013-footwear-collection/

   

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  If’Graubins’were’to’propose’consumerIdirected’marketing,’he’ would’also’have’to’figure’out’how’to’develop’that’branding.’To’this’ point,’most’of’Boa’s’marketing’communications’have’emphasized’ features’and’benefits.’They’wonder’whether’they’might’be’able’to’ build’an’image’around’the’brand.’Graubins’expands’on’these’ideas’ in’this’video.”

  ‘

  $ Planning$for$2015$’

  Graubins’reviewed’his’options’for’2015.’He’knew’that’that’he’must’ decide’how’to’allocate’his’resources’across’brand’partners'(B2B),’ retailers'(B2I),’and’consumers'(B2C).’In’the’U.S.’market,’marketing’ resources’were’allocated’about’90%’toward’brand’partners’and’ 10%’toward’retailers.’Graubins’pondered’if’this’should’change.’No’ matter’which’direction’he’went,’he’also’knew’he’had’to’decide’ which’categories’would’receive’the’most’attention.’No’matter’the’ allocation’of’resources,’Graubins’needed’to’identify’which’2I3’of’ the’7’summits’would’get’the’lion’s’share’of’resources’in’2015.’An’ even’allocation’across’all’7’would’not’give’any’one’summit’enough’ punch’to’move’them’further’up’the’long’climb.’Garett’also’knew’

  that’Soderberg’and’McCreery’would’expect’financial’justification’for’ any’plan’he’put’forward.”

  The’Boa’headquarters’golden’Lab,’Emma,’nuzzled’at’Graubins’’arm.’ After’patting’Emma’on’the’head,’he’went’through’his’notes’again.’ Graubins’was’eager’to’meet’with’his’team’and’get’their’input’on’ the’budget.’Together’they’would’have’to’prepare’a’set’of’ recommendations’in’time’for’next’month’s’budget’meeting.’

  ‘

   

  https://vimeo.com/111156959

  http://boatechnology.com

   

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  Discussion$Questions$$

  For’this’case,’you’have’the’option’of’going’beyond’the’case.’Unlike’other’case’studies,’you’are’welcome’to’add’your’own’ experiences’or’do’online/offline’research’to’enhance’your’recommendations.”

  1. What’is’the’value’of’a’brand’for’a’consumer?’A’manufacturer?’An’ingredient?” 2. Why’would’an’ingredient’want’to’develop’a’consumer’brand?” 3. If’Boa’develops’a’higher’profile’with’consumers,’what’are’the’upsides’for’Boa’s’premium’partner’brands?’What’

  are’the’downsides/risks?’ 4. What’are’your’recommendations’for’Garett’Graubins’’2015’U.S.’marketing’plan?’Be’specific’about’which’market’

  (B2B,’B2I,’and/or’B2I)’you’recommend’and’the’2I3’summits'(product’categories)’deserving’the’most’attention.’ Offer’specific’ideas’about’how’to’approach’that’market.”

  5. Whether’you’recommend’building’a’brand’with’consumers’or’not,’use’two’creative’idea’generation’techniques’ and’generate’five’lowIcost,’grassroots’ideas’that’would’help’Boa’build’a’brand’in’one’of’its’product’categories.”’

  [Note:’questions’4’and’5’must’be’turned’in’as’a’written’assignment’and’completed’in’two’pages’or’less’single’ spaced,’doubleIspace’between’paragraphs.]

   

   

  ! 17

  Appendix$

  Exhibit#1#–#Sample#of#Online#Customer#Reviews#

  Golf’Shoes'(from’Amazon.com)’

  ‘

  ‘

  Work’boots'(from’Red’Wing’Shoes’–’redwingshoes.com)’

  ‘

  Continued’on’the’following’page.’

   

   

  ! 18

  ‘

  Cycling’shoes'(from’Specialized.com)’

  ‘

  ‘

  #

   

   

  ! 19

  Exhibit#2:#Summary#Data#for#Boa’s#Seven#Summits#

  Summit’ Primary$benefits’ Key$Brand$Partners’

  2015$U.S.$ Market$$$

  ($$millions/$000s$ units$)11′

  Boa’s$U.S.$ market$ share**’

  Market$ Growth$ (2015V20)’ Notes’

  Snowboard’ boots’

  Precision’fit,’one’handed,’ powerful’closure’

  Burton,’K2,’Ride,’Flow,’ DC,’Salomon’

  $60′ (600)’

  43%’ Slow’ Boa’is’wellIknown,’ established’

  Cycling’shoes’ adjust’on’the’fly,’oneI handed,”

  Scott,’Lake,’Specialized’ $125′ (1700)’

  ‘

  14%’ Slow/’ moderate’

  Dialed’closures”becoming’ the’standard’

  Golf’shoes’ microIadjustable,’precise’ and’customizable’fit’

  Footjoy,’Adidas,’Izuna’ $53′ (3400)’

  <1%'(50%’in’ Asia)’

  Slow’ Can’Asian’success’translate’ to’U.S.?’

  Trail’&’ Outdoor’shoes’ &’boots’

  Secure,’microIadjustable,’ precision’fit’

  The’North’Face,’Treksta,’ Viking,’K2’Korea’

  $310′ (3100)’

  <1%’ (~’50%’in’

  South’Korea)’

  Moderate’ Can’South’Korean’success’ translate’to’U.S.?’

  Utility/’Safety’ shoes’

  durable,’setIitIandIforgetI it,’oneI’handed’

  Red’Wing,’Elten,’Bata,’ Sievi’

  $1,500′ (300,000)’

  <1%'(stronger’ in’Europe)’

  Moderate” New’market,’Boa’s’fastest’ growing’segment’by’%’

  Athletic’ footwear’

  MicroIadjustable,’adjust’ on’the’fly’

  Hayabusa,’Zoot,’Topo’ Athletic’

  $49812′ (250,000)’

  <.001%’ Moderate’ No’foothold’

  Medical/’ bracing’and’ adjustment’ prosthetics’

  MicroIadjustable,’ precision’fit’

  DeRoyal,’Exos,’ Futuro/ACE'(3M)’

  $565′ (115,570)’

  <.1%’new’ market’

  Uncertain’ Uncertainty’around’ Affordable’Care’Act,’maze’ of’regulations’and’ reimbursement’policies.”

  ‘ ‘ ‘ ‘ ‘ ‘ ‘

  11 ‘Dollar’estimates’from’internal’and’secondary’sources’and’include’some’informed’estimates.’These’values’should’not’be’used’for’secondary’research.’Dollar’values’are’total’

  market’size,’not’sales’potential’for’Boa.’The’premium’nature’of’Boa’s’product’suggests’that’not’all’of’these’sales’are’candidates’for’the’Boa’Closure’System.”

  12 ‘Dollar’value’from’running’shoes’only,’source:’http://www.runningusa.org/2014IstateIofItheIsportIpartIiiIrunningIindustryIreport;’Boa’estimates’that’more’than’734’million’pairs’

  of’all’athletic’footwear'(including’general’cross’training,’running,’basketball,’soccer,’baseball,’football,’and’more)’are’sold’globally’each’year.”

   

   

  http://www.runningusa.org/2014-state-of-the-sport-part-ii-running-industry-report

   

  ! 20

  Exhibit#3:#Marketing#an#Ingredient#–#Boa’s#Customer#Chain#

  #

 

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Deliverable 1 – Answer Questions & Reference Page – Due first

Deliverable 2 – Branding Audit Due second

—————————————-

 

Branding is a very important element of marketing. As you work on this project, it is imperative that you stay focused on the consumer. Remember that a company’s customers do not buy features; they buy benefits, both tangible and intangible. It is also critical to understand customers and how the brand influences their buying decisions.

Review Slate Case File (attached)

 

Primarily, we want you to examine the branding strategies  of our competitors, as well as any brand extensions and their branding packaging decisions.

This report will function as a brand audit that allows us to examine our competitors’ strengths, weaknesses, customer expectations, and our own relative position in the market.

These details form the basis of the main branding elements. I met with our CEO, Shanice Watts, and she wanted me to emphasize the following eight categories we would like you to analyze in your report about our two biggest competitors:

 

1. brand personality

2. brand image

3. brand identity

4. brand differentiation

5. brand positioning

6. brand communication

7. brand loyalty

8. brand equity (including financial equity)

 

Slate’s executive teams are really looking forward to your report. Thanks for helping us with this.

 

To carry out this assignment, you need to understand Slate’s competitors’ brand strategies, their consumers, how to acquire market knowledge through primary and secondary research, and how to use that knowledge to build and support a brand.

To start your research, visit the websites of Slate’s two biggest competitors and review both scholarly and reliable nonscholarly sources to explore their branding decisions. Your research of the two companies should focus on the branding elements discussed in the previous step.

Consult a minimum of two scholarly sources and eight reliable nonscholarly sources (10 total). Make sure that you use reliable, nonscholarly sources such as Reuters, Bloomberg, Yahoo! Finance, Barrons.com, Morningstar.com, Money, Forbes, Fortune, Financial Times, theWall Street Journal, and the Harvard Business Review, as well as the UMUC Library databases such as Hoover’s and ABI/INFORM.

In addition, explore the following branding websites for relevant content:

 

· www.adage.com

· www.adweek.com

· www.brandchannel.com

· www.ama.org

· www.cmo.com

· www.marketingprofs.com

 

As you are researching Slate’s competitors, Carlos asks you to participate in a meeting on the importance of branding (attached) with his team.

 

I know that you’re deep into your analysis of the Slate, Inc. case, but I wanted to preview your work and check in on the sources of information you are using to develop your report. Slate has asked to examine the sources of secondary research that we are using in our report to ensure their quality and originality. Accordingly, I want you to share the list of references you have been using to research Slate’s competitors.

Deliverable: Provide a reference list derived from your research that has a minimum of two scholarly and eight reliable, nonscholarly sources (10 in all).

I suggest using reliable nonscholarly sources, such as Reuters, Bloomberg, Yahoo! Finance, Barrons.com, Morningstar.com, Money, Forbes, Fortune, the Financial Times, the Wall Street Journal, and the Harvard Business Review, as well as UMUC Library databases, such as Hoover’s and ABI-Inform. All sources should be referenced using APA formatting.

 

Deliverable: Based on your research of the two companies’ brands, write an eight-page report (four pages on each company) that addresses the following branding elements:

 

1. brand personality

2. brand image

3. brand identity

4. brand differentiation

5. brand positioning

6. brand communication

7. brand loyalty

8. brand equity (including financial equity)

 

As you examine these branding elements, your report should also answer the following questions:

1. How strong are the companies’ brands in the market?

2. What are the factors contributing to their strengths and weaknesses?

3. How are these two brands competing against each other? How strong is their global performance?

4. How do consumers perceive their brands?

5. Are there any sub-brands? Are there any brand extensions?

Your report should contain a one-page executive summary (following the cover page) that highlights the most important findings of your analysis. Also include a one-page table in an appendix at the end of the paper that compares the brand elements for the two brands.

Support your work with course readings, scholarly sources, and reliable nonscholarly sources, such as Reuters, Bloomberg, Yahoo! Finance, Barrons.com, Morningstar.com, Money, Forbes, Fortune,  the Financial Times, the Wall Street Journal, and the Harvard Business Review, as well as UMUC Library databases, such as Hoover’s and ABI-Inform. All sources have to be cited using APA formatting, both within the text and in the reference list.

Your final report to Carlos should be eight to nine pages, excluding cover page, executive summary, the reference list, and appendices. Any graphs, tables, and figures should be included as appendices. Your report should have one-inch margins and be double spaced in size-12 Times New Roman font. The report should be organized using headings and subheadings to improve its readability.

Submit your report to the dropbox located in the final step of this project.

Course Resource

Meeting on the Importance of Branding

Carlos Chance, the head of branding at Slate, Inc. soon hosts a kickoff web meeting asking for the case team’s insights into the company’s logic on brand strategy.

“Over time, products may become generic showing very little differentiation, like cereals,” Carlos says. “That’s why branding is crucial in differentiating products. Even utilitarian product choices are influenced by branding, and the driving force is competition.

“When competition is intense, all products soon offer functional advantages: me-too products or follow-the-leader strategies. Accordingly, the only sustainable advantage is brand image, which you might recall from Johansson’s work in his book, Global Marketing (2009). That’s why a continuous marketing effort is needed to support the brand or product. Remember Levitt’s (1983) argument that anything can be branded—even something as plain as pasta, like Barilla and Buitoni.

“Do you agree or disagree with Levitt’s statement, and why? Will Levitt’s argument impact your analysis of Slate’s competitors’ branding strategies?”

Contribute your thoughts in the Slate, Inc.’s project team discussion area, and discuss your ideas with your team members.

References

Johansson, J. K. (2009). Global marketing (5th ed.). New York, NY: McGraw-Hill/Irwin.

Levitt, T. (1983). The globalization of markets. Harvard Business Review, 61(3), 92–102. Retrieved from https://hbr.org/1983/05/the-globalization-of-markets

Brand Identity

Brand identity refers to the distinct and relatively lasting characteristics of a brand. A brand tends to have an appealing and solid identity when consumers perceive its identity as more distinct and prestigious (Bhattacharya & Sen, 2003).

Creating a company’s brand identity involves more than designing its logo. A brand identity is both emotional and visual and communicates trustworthiness and relevance. Building an effective brand identity takes many years of perpetual tweaking and hard work; however, it is crucial to the success of the company. When it comes to creating and maintaining a brand identity, every small detail counts. It is a delicate task of following the company’s core values, while simultaneously being able to adapt to changing market forces and trends. This task is difficult for even big multinational companies (Jansen, 2018a). Remember how Kodak failed to adapt to changing market conditions?

A strong brand identity can help a company succeed (e.g., Apple and Amazon). This success requires a strong focus and strict brand guidelines to maintain the company’s brand and keep it elevated in the face of the changing market forces. In order to do this, companies are advised to heed the following guidelines (Jansen, 2018b):

· Keep things simple and focus on their core values.

· Be flexible and adapt to changing market trends.

· Follow data, but do not ignore emotion.

· Do not jump on market trends without thinking of the bigger picture.

· Do not wait too long to rebrand themselves.

· Do not ignore market trends.

Brand Differentiation

Building a strong brand is crucial to success in today’s business world, and strong differentiation is necessary to build a compelling and powerful brand. Brand differentiation is the means by which a company’s brand is set apart from its competition, by associating a superior performing aspect of its brand with multiple consumer benefits (Carter, 2014).

Brand differentiation is related to a company’s corporate reputation. There are several elements of reputation, including a good customer service, packaging, prompt response to problems, and product-specific comments, that consumers seek when buying. These elements not only provide a basis on which the company can improve its reputation, but also help it differentiate itself from the competition. Corporate reputation may be enhanced by different activities that are closely related to the vertical differentiation of a product, such as technological innovation and a strong brand image. On the other hand, a solid corporate reputation may also help to differentiate a brand. Companies are increasingly recognizing consumers as their most important asset in building an estimable corporate reputation (Vahabzadeh et al., 2017).

In this era of globalization and hypercompetition, companies need to rethink the way that they manage their customer portfolio, as well as how they interact with their customers. Fader (2012) stresses that customers are an asset (customer equity) that should have a place on a company’s balance sheet. The author defines customer equity as “the sum of the customer lifetime values across a firm’s entire customer base” (p. 62). Since every company’s objective is to maximize its overall equity and since customers are perceived as an asset (customer equity) that is an integral part of the company’s overall equity, the company should dedicate the necessary resources to maximize its customer equity (Fader, 2012).

Employees are another crucial factor in enhancing a company’s reputation. They may help differentiate the company from the competition, as consumers evaluate the corporate reputation that is behind the product and brand presented to them. Accordingly, many companies use their corporate reputation as a vital resource in developing their strategic value. Reputation includes corporate social responsibility, innovativeness, and honest communication, which customers subconsciously convert into brand differentiation of the company’s products (Vahabzadeh et al., 2017).

Brand Positioning

Brand positioning is the designing of a company’s offering and image to occupy a distinct place in the mind of the target customers (Kotler & Keller, 2015). Brand positioning is the sum of all the marketing activities that position the brand in the target customers’ minds relative to the competition. Positioning does not create something new or different, but rather manipulates the mindset (Ries & Trout, 2001).

Positioning is a crucial stage in a brand management strategy. A good brand positioning strategy helps in the development of new products, communication, market expansion, pricing, and the selection of the distribution channels (Fayvichenko, 2018). Brand positioning is a process of creating the brand’s own image, values, positive associations, and distinctive properties in the customers’ minds in order to create a sustainable brand image and ensure consumers’ attachment to that brand (Fayvichenko, 2016). Today, brand positioning is perceived as a process that begins with the design of a trademark position; however, it is “difficult to specify the essence of positioning when its ultimate goal is not clearly understood” (Fayvichenko, 2018, p. 245). To understand the essence of brand positioning, it is crucial to determine the ideal position of the brand. A clear representation of the ideal position of a brand is a “prerequisite for researching positioning as a target process and developing a system for evaluating its effectiveness” (p. 245).

Ideally, a brand will be positioned so that the customer has positive associations with a brand, is convinced of its unique advantages over other brands, and considers the brand to be of high value or a necessity. This brand-supporting customer is convinced that people who buy other brands are making the wrong choice, considers it a duty to recommend this brand to other consumers, and feels a spiritual unity with consumers who have chosen this brand (Kendukhov, 2008).

Accordingly, Kendukhov (2008) perceives brand positioning as a process of managing the perception of a brand by a customer. The purpose of this process is “persuasion of the consumer in the unique advantages of this trademark over other brands; formation of the consumer’s exclusive affiliates with this trademark; formation of the consumer’s sense of the indispensability and vital necessity of the brand; formation of fanatical devotion to the brand; raising a sense of duty to recommend this brand to other consumers; forming a sense of spiritual unity with consumers who chose this brand; forming a belief in the consumer that other consumers who buy goods under other brands make the wrong choice” (Fayvichenko, 2018, p. 246).

Brand Communication

The value of a company’s brand may rise or fall with its brand communication. Even strong brands must communicate their values and core benefits to the customers in order to sell. Successful brand communication involves satisfied employees and enthusiastic customers. Companies used to communicate their brands using PR and advertising. Nowadays, customers and company employees define the reputation and reality of a brand. They discuss their experience with the company and its products around the clock using social media. Trust plays a crucial role here, and is only built up when the customers receive a consistent and credible brand experience. Employees help a company earn its customers’ trust if they credibly communicate the brand’s values and positioning (BrandTrust, 2018).

Social media provides an array of constantly changing brand communication tools in the corporate world, which play a crucial role in how customers research and share information, and learn about their brands. Similarly, companies use social media networks for the advertising and sponsorship of their products and services brands in order to develop trust and create sustaining relationships with their customers (Khadim, Hanan, Arshad, Saleem, & Khadim, 2018).

Social media comprises well-built platforms that have a significant and substantial impact on brand loyalty. Customers use social media as a tool to communicate and respond quickly to each other at any time (that information moves much faster on social media compared to traditional media). In addition, social media allows a company to send its brand messages to multiple audiences and collect their recommendations. This feature is crucial, as markets and customer preferences, needs, and wants change quickly, especially in this era of globalization. Social media allows a company to judge how its customers think about its brand and what they want from it. It also enables the company to make improvements to its brand and think forward to anticipate changes in customer needs and preferences (Khadim et al., 2018).

Brand Loyalty

Consumers usually benefit from branding, and trademarks may help them shop more efficiently, as they avoid brands that they dislike, while buying the brands that they like most. Brand loyalty is a favorable perception of, and the consistent buying of, a certain brand over time. The marketplace has been dramatically changing in the past decade thanks to advanced and cheaper communications technologies, which enable consumers to make better choices and share their buying experiences with others, worldwide. Consumers are now increasingly dependent on the internet to acquire information and compare brands before buying. Consumers can easily shift brands if they believe that they have not been treated fairly by a certain company (Kotler & Keller, 2015).

Brand Equity

AMA (n.d.-a) defines brand equity as “the value of a brand. From a consumer perspective, brand equity is based on consumer attitudes about positive brand attributes and favorable consequences of brand use.”

According to Johansson (2009) brand equity is “the value of the positive associations that consumers have with a product’s brand name. These associations often involve emotional attachments, affinity, positive brand image, and brand identity. They also involve cognitive factors such as familiarity, knowledge and perceived quality, as well as social factors including peer-group acceptance. When these associations turn negative (as in antiglobalization sentiments against global brands) the brand equity can go down very quickly.”

Brand equity is basically the added value that a brand gives to a product beyond the functional benefits that it provides. Brand equity provides competitive advantages; for example, Mercedes Benz implies quality. A second advantage is that consumers are willing to pay more for a product with a brand equity. Here, brand equity is represented by the premium that a consumer is willing to pay for a certain brand over another when both brands provide similar functional benefits. Acura, Infinity, and Lexus cars enjoy a price premium that arises from their brand equity (Kerin & Hartley, 2017).

Brand equity takes time to develop and is carefully crafted and nurtured by marketers who forge unique, strong, and favorable experiences and associations with the brand. Brand equity resides in the consumers’ minds, and results from what they have seen, heard, felt, and learned about the brand over time. Brand equity is not quickly or easily achieved (Kerin & Hartley, 2017).

Financial Brand Equity

Financial brand equity is the monetary value of a brand in terms of net revenues the brand is expected to generate over time, across all country markets. The set of assets linked to a brand name include the following (Johansson, 2009):

· brand name awareness

· brand loyalty

· perceived quality

· brand associations (in the consumer’s mind)

Financially lucrative brand licensing agreements may arise from brand equity. Successful brand licensing needs a thorough marketing analysis to ensure compatibility between the licensor’s brand and the licensee’s products. Companies such as Ralph Lauren, Disney, and Luxottica eyewear earn millions every year from licensing their brand names to others (Kerin & Hartley, 2017).

Global Brands

Why are global brands often the most valuable assets of a global company? Global brands are important because product differentiation is difficult to sustain. Accordingly, global brands become the most sustainable competitive advantage. Global brands have become more important because financial brand equity is strongly correlated with global reach (Johansson, 2009).

References

AMA (n.d.-a). Brand equity. Retrieved from https://www.ama.org/resources/Pages/Dictionary.aspx?dLetter=B

AMA (n.d.-b). Brand image. Retrieved from https://www.ama.org/resources/Pages/Dictionary.aspx?dLetter=B

Bhattacharya, C. B., & Sen, S. (2003). Consumer-company identification: A framework for understanding consumers’ relationships with companies. Journal of Marketing, 67(2), 7688. doi:10.1509/jmkg.67.2.76.1860

BrandTrust (2018). Brand communication. Retrieved from https://www.brand-trust.de/en/glossary/brand-communication.php

Carter, L. (2014). Brand differentiation: 30 ways to differentiate your brand. Persona Design [Web log]. Retrieved from https://www.personadesign.ie/brand-differentiation-30-ways-to-differentiate-your-brand/

Fader, P. (2012). Customer centricity (2nd ed.). Philadelphia, PA: Wharton Digital Press.

Fayvichenko D. (2016) The concept of brand positioning. Mignarodnii naukovo-praktuchniy gurnal «Tovaru I runki», 1(21), 25–32.

Fayvishenko, D. (2018). Formation of brand positioning strategy. Baltic Journal of Economic Studies, 4(2), 245–248.

ImagiBrand (2017). The 5 key dimensions of brand personality. Retrieved from http://imagibrand.com/5-key-dimensions-brand-personality/

Jansen, K. (2018, a). The dos and don’ts of building a brand identity (Part 1). Forbes. Retrieved from https://www.forbes.com/sites/forbesagencycouncil/2018/03/05/the-dos-and-donts-of-building-a-brand-identity-part-1/#7287b18a61bc

Jansen, K. (2018, b). The dos and don’ts of building a brand identity (Part 2). Forbes. Retrieved from https://www.forbes.com/sites/forbesagencycouncil/2018/04/02/the-dos-and-donts-of-building-a-brand-identity-part-2/#1f763498644a

Johansson, J. (2009). Global marketing (5th ed.). New York, NY: McGraw-Hill.

Kendyuhov V. (2008) Effectivnist vucorustannya marochnogo capital [Effectiveness of using branded capital]. Donetsk: Institute economy promislovist, 96–103.

Kerin, R. & Hartley, S. (2017). Marketing (13th ed.). New York, NY: McGraw Hill.

Khadim, R. A., Hanan, M. A., Arshad, A., Saleem, N., & Khadim, N. A. (2018). Revisiting antecedents of brand loyalty: impact of perceived social media communication with brand trust and brand equity as mediators. Academy of Strategic Management Journal, 17(1), 1–13.

Kotler, P., & Keller, K. (2015). Marketing management (15th ed.). Upper Saddle River, NJ. Pearson.

Vahabzadeh, A., Vatanpour, H., Dinarvand, R., Rajabzadeh, A., Salamzadeh, J., & Mohammadzadeh, M. (2017). Impact of corporate reputation on brand differentiation: An empirical study from Iranian pharmaceutical companies. Iranian Journal of Pharmaceutical Research, 16(4), 1658–1670.

 

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