Brand Management Essay Example | Topics and Well Written Essays - 1500 words

Brand Management - Essay Example For the marketing program investment, NB is positioned as the best fit for athletes and people who want shoes that represent their fitness goals. NB concentrates on manufacturing shoes with diverse widths because it believes that a large fit enhances footwear performance. The brand is also known for the benefits of comfort, performance, and quality of fits and soles (Ryan 2008). The commodification is manufacturing for quality. NB is involved in international business; it sells products all over the world. Furthermore, employee relations are regarded as satisfactory, because the executive management is dedicated to responding to internal stakeholder needs (Baker 1999). For customer mindset, awareness is high, but not as high as for market leaders, such as Nike and Reebok-Adidas, when sales are considered. See Table 1 for Comparative Data on Major Athletic Footwear and Apparel Companies, 2004. NB also has good associate relations. NB imports finished soles and raw materials from Asian suppliers. The uppers would then be made and connected to soles in the U.S. almost seventy percent of NB’s domestic product is called â€Å"sourced upper.† For sourced-upper shoes, NB will import finished uppers and soles from Asia and will conclude the assembly at the American factories. Three warehouses in Skowhegan and Lawrence hold approximately $9 million (or 4 and half weeks) worth of raw materials inventory (Bowen, Huckman, and Knoop 2002, C-383). It can take 10 to 12 weeks for the shoes to arrive at Lawrence and Ontario (order to deliver lead time) (Bowen et al. 2002, C-383). The lead time has also been lessened, due to the efforts of NB to develop ordering and synchronization processes between the company and the suppliers. The management also strategically located the manufacturing plants near distributors and stores (Bruce, Daly, and Towers 2004; Jin 2004). Table 1: Comparative Data on Major Athletic Footwear and Apparel Companies, 2004 Company Worldwide Sa les Footwear Sales Total Assets Net Income Employees Nike 13,739.7 7,299.7 8,793.6 1,211.6 26,000 Adidas-Salomon 8,057.0 3,384.0 6,015.8 402.3 17,023 Reebok 3,785.3 2,430.3 2,440.6 192.4 9,100 Puma 1,903.3 1,065.8 1,263.1 320.0 3,910 New Balance 1,500.0 NA NA NA 2,600 Fila 955.2 NA NA -85.0 2,300 Vans 330.2 NA NA -30.0 1,890 Source: Bowen, Huckman, and Knoop (2006, C374) The attitudes of the company represent good work ethics and social responsibility. NB actively supports societal marketing. Some of its products use natural materials. NB also energetically donates to charity and other organizations. It has a New Balance Foundation that tackles child obesity, as well as other cultural and environmental concerns (New Balance 2011). Studies also showed that New Balance has loyal customers, because they appreciate the performance of its products and the grassroots marketing approach of the company (Datamonitor 2008). The main marketing promotions of NB are word-of-mouth and PR through de-emphasizing the importance of celebrity endorsements (Datamonitor 2008). Price premiums of NB are pricing for value. New Balance has different prices for its products, but mostly it charges premium pricing for its athletic apparel and footwear. Customers are not that price elastic. NB enjoys a market share of 8 to 12% market share (Bowen et al. 2002, C-384). Expansion success is high, since NB has strong brand equity. Cost savings is also good, because of the strategic supply chain management of NB