VANS Marketing Report

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VANS Marketing Report 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, California which they called Vans. As an executive at one of America’s largest shoe ​ 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 shoes 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 skateboarding 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 Converse, Nike, and Adidas. 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 snowboarding, surfing 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.
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