Vans “Off The Wall” Marketing Plan

Rajneet Sahota, Prinze Lorenzo, Surya Chaudhary, AJ Diallo, Michael Wang, Pauline Bayiha, Aneil Johal

Tagline: Off The Wall ​ Chief Executive Officer: Steve Van Doren ​ Global Vice President of Marketing: Fara Howard ​

I. External and Internal Environment

1. Brief company history: On March 16th, 1966, brothers Paul and Jim Van Doren, along with other co founders, decided to open a company in Anaheim, which they called Vans. As an executive at one of America’s largest ​ manufacturers, Doren noticed that shoe manufacturers were making pennies per shoe sold, while retailers took home the bulk. With this information, Doren decided to set up his own company that made and sold ​ each shoe. In the early 1980s, after a few successful years in business, ​ Dorens suggested that Vans create for other sports like basketball, running, and breakdancing. However, the expansion did not work and their costs got too high which resulted in them having to file for Bankruptcy. In 1988, a group of investors bought Vans for $60 million, but Doren was sure that the investors did not understand the right way to manufacturer shoes. Sales ended up decreasing and Vans began spiraling downwards. So in the 1990s, Vans shifted its focus from being a manufacturing company to a marketing company.

2. Describe the markets, products, and customers for this firm a. Vans are extremely popular among the community. Vans were originally created for the purpose of skateboarding, but have become a lifestyle shoe over time. Vans target market is both men and women, ages ranging from 12-36, but their ideal customers are teenagers. Their range of products includes shoes, clothing and accessories.

3. Single out 2 trends in the environment that represent opportunities, and 2 trends that represent threats to this specific company. Under each opportunity, suggest a positive action. For each threat, suggest a defensive action. a. As previously stated, Vans is very popular among skaters and that increases their market share. In this time and age and with the power of social media, having collaborations or partnerships with well known people can make a change. Because influencers are followed by millions of people, companies like Vans are able to use this popularity to sell to everybody. Vans is a people’s brand. The affordability of their products, the comfort and the fact that it is a good investment considering the durability, are some of the reasons why the company is doing so well. b. Duplicate and fake replicas can pose as a threat to a company like Vans. Major companies are now facing big threat and Vans is one of them. People making fake replica of Vans and selling them to customers can have an impact on the image customers have of the company. Also, it can have a tremendous effect on the sales of the company. Competition is another treat to Vans. Some of Vans’ biggest competitors are , Nike, and . Converse, Nike, Adidas are very popular brands in the world and they have a huge place in consumers mind. In order to compete with these brands, Vans has to constantly innovate their products to differentiate themselves, and be competitive in terms of how they price their products.

4. Identify and compare the strengths and weaknesses of your company with its major competitor (s). a. Since Vans’ inception in 1966, they have been able to stand the test of time while new companies have come and gone. The company is a staple and standard for quality shoes worldwide. Vans’ strengths include having iconic shoe designs that are easily recognizable and perfectly marketing and branding their company to their desired target audience, while being available everywhere all the time. In most malls there will definitely be a Vans store, making it easily accessible to their ideal customers, teenagers. However, Vans does fall short in some areas compared to their competitors. Vans does not often create new styles of shoes whereas competitors such as Nike are constantly innovating new trends in the shoe market. They are also implementing technology into their shoes, which is something Vans does not plan to do. Although this may not align with Vans’ brand aesthetic, adding technology is always something that is beneficial to consumers regardless of branding. Another weakness of Vans is a lot of their money is invested into keeping their retail mall locations alive. At the current rate, retail is becoming less popular, and online shopping is becoming the norm. Vans is going to have to increase and establish their online presence more if they want to keep up with their competitors.

II. Product/ Service

1. What is the product/service? What is the actual product and what is the augmented product? a. Vans is a streetwear brand that makes and sells related apparel ranging from casual outerwear like tshirts and hoodies to footwear. Vans’ actual ​ products include the aforementioned goods, and the company often offers promotions such as free 3-day shipping and free returns, which is an example of their augmented product. ​ ​

2. Does the brand play a role with the product/ service? a. Vans brand does not play an active role when marketing its products to the average consumer. Surely, they do host skateparks and other promotions such as the “Checkerboard Day”, but these do not really pertain to the majority of their buyer base. Rather, the Vans brand name has become synonymous with affordable, versatile clothing that can be styled with a variety of different outfits. One shoe model in particular, the Vans Old Skool, found its place as a staple in many people's wardrobes as a timeless classic that never seems to go out of style.

3. What type of product or service is it? a. Vans sells tangible, differentiated clothing/apparel that can be purchased online or in one of its 340 physical stores worldwide.

4. Where is the product in the PLC? a. The Vans Old Skool has incredible longevity which has led many to call it a “modern-day classic”. It is a silhouette which simply has not and will not go out of style in the foreseeable future. For that reason alone, Vans brand and this shoe model in particular have enjoyed many profitable years in the Maturity stage.

III. Target Market and Channel Relations

1. Identify the target customers. Is there more than one type of customer? What segmentation bases does the company use to identify its customers? a. Vans targets younger men and women, specifically teenagers, who have a love for skateboarding. However, Vans shoes can be seen today on the feet of almost every American teenager, regardless of if they skate or not. There are many different types of customers that Vans attracts. People ​ who wear this brand are automatically associated with a cool and happening image from the world of , and skating. b. Vans primarily uses a demographic and psychographic segmentation bases to identify its customers.

2. What is the form of the company’s channel relationships? Are there any e-commerce relationships? a. Vans engages in a business-to-business model with select retailers allowing companies such as Amazon and Zappos, among others, to sell their products. This is usually the extent of their partnerships with other companies as it pertains to channel relationships and e-commerce. They will otherwise primarily sell through their brick-and-mortar locations and through their online store.

3. What does the company do to build relations with their customers and their suppliers? a. As stated, Vans uses their various social media accounts to engage with their primarily young consumers. Aside from running campaigns that allow consumers to have direct influence on the company’s ads or products, Vans also allows consumers to customize their own unique pair of shoes on their company website. Vans is also known for casually replying to their customers who comment on their social media posts. Vans occasionally reposts the photos of everyday customers wearing their Vans in different parts of the world onto their own instagram account.

4. What are the company’s customer acquisition and retention strategies? a. Through their strong social media presence, Vans pulls in most of their target customers. On top of this, Vans sponsors the Warped Tour, a big annual music festival that is enjoyed primarily by teenagers and young adults, all of whom are Vans’ target customer demographic. They also sponsor popular extreme sports athletes that use their social influence and reach to spread the Vans brand among young extreme sports fans. Lastly, frequent deals, discounts, and personalization options are available for those who join Vans Family, a loyalty based rewards program offered by Vans.

IV. Pricing and Price Strategy

1. How does the company price its products? a. Vans has adopted a pricing policy that keeps their product prices set at reasonable and affordable wages. Vans have been seen as an “easy buy” for their customers because of how affordable they are among their competitors and other retail shoe brands.

2. What strategy is employed? Are there any changes that should be considered? a. Since Vans’ target market is both sports arena and youngsters, they maintain a mid-level pricing strategy to accommodate these targets. The price for Vans’ apparel is typically lower than the consumers’ perceived value, so many view their products, particularly the Old Skool shoe model, to be of great value. Vans primarily use a cost-based strategy to price their products. They believe in making profits by selling their apparel in large quantities which has proved to be a successful strategy for them, as it has resulted in earning great revenue in both international and national markets.

V. Promotional Strategy

1. What is the company’s overall communication/ promotion strategy? What medium does it use to advertise? How effective is advertising? a. Vans has developed strong values by participating in sponsoring sports events. They have promoted their brand by opening up skateboarding parks in Southern California, and sponsoring many global sports events. Since 1996, Vans has been yearly sponsoring the Vans Warped Tour event, a traveling rock tour that had toured the United States each summer since 1995. Vans became the title sponsor of surfing events in the United States as well, and has sponsored the Duct Tape Invitational, an all-inclusive beach celebration honoring innovation, creativity, and craftsmanship in surf culture. The social media marketing of the brand is ​ huge and has proven to be one of the most effective promotional strategies for them. Vans’ Facebook page has 18 million likes, and its Instagram page has 13+ million followers. They launch creative content on all of their platforms to reach their customers.

2. Does the company do trade shows? Evaluate their effectiveness? a. DisplayWorks, a leading trade show display and exhibit design house has partnered with Vans to translate their brand image into a retail environmental presence for the European consumer market. They created a 3500 square feet, three-level retail space on Carnaby Street in London. After this, they created a smaller version of the successful Carnaby Street store for their domestic retail mall program. DisplayWorks designed and produced a 1,700 square feet retail roll-out concept for the Vans store in Mesa, Arizona, which is now the retail standard for over 150 Vans mall-based retail locations across the United States. This has proven to be effective for them because DisplayWorks is known for specializing in helping clients build brand awareness and grow sales in both domestic and international markets, and this is what has helped Vans grow its consumer market worldwide.

3. Are personal selling and public relations important to this company? Describe and evaluate the appropriateness of personal selling and public relations. a. As a brand, Vans has a very special approach to marketing. Instead of running thousands of ads on television or fully investing in poster advertising, Vans hosts events like concerts and contests for their customers to engage in. The experience customers get when they enter a Vans store is also an enlightening experience because their employees are trained to engage in conversations that create relationships with their customers. Personal selling is an interactive experience for customers, and this experience can further convince them to purchase a new pair of shoes. Public relations are a top priority for Vans as they want their customers to treat them as they would their own friends. A part of their 50 years in business celebration, Vans created the House of Vans venues in Chicago ​ ​ and Waterloo that highlight the art, skating, music, and fashion that they support. They have spread beyond the two venues to pop up locations as well, as a means of reaching consumers outside of those areas. Consumers see Vans as more than just a retail business. The company facilitates the community and the customers are the participants. Vans supports numerous organizations and donates to many of them like Surfrider Foundation, Protect our Winters and the A.skate Foundation. Their ​ ​ ​ ​ employees are encouraged to volunteer during community service projects with these local organizations which also helps build relationships with the community and with this, they are also able to attain more customers.

4. Suggest any promotional strategies that may help your company. a. One promotional strategy that may help Vans grow would be to expand their House of Vans project to cultural hubs and larger cities like Los ​ ​ Angeles. By doing so, Vans can reach more customers and spread the influence of their brand outside of who is wearing their shoes or apparel. Vans should continue to spread the image of being a community rather than just another retailer.

VI. Conclusions

1. What have you learned from this company? Overall, what is the performance level of this company? What are the important factors contributing to the success or failure of this specific company? Observing Vans’ business and marketing models can give insights on how to manage products in the Maturity stage of the Product Life Cycle. Taking a look at the Vans Old Skool in particular, we can see the level of success a company may achieve when a product design strikes a chord in consumer tastes. The versatility of Vans products give the company lasting positioning in the minds of not only their fanbase, but also that of your average, everyday shoe shopper.

2. What would you do differently (if anything)? What would you suggest to your company for future action plans?

If we were to do anything differently, we would suggest Vans to incorporate more “sports” style shoes into its stores. They have recently launched a shoe called Ultra Range, which proved to be popular among consumers as it was the first product of its kind to be sold in Vans’ stores. Perhaps manufacturing shoes of that similar style could increase new customer interest which would then in turn generate more revenue for the company. For the future, Vans should continue to be innovative with its products in order to stay competitive in the retail market. Creating and selling new apparel could also prove to be beneficial for them in the future.

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