Situation Analysis

Name : Mohamad Hafeezzat Zhafran Bin Roslan

ID : 1131121683

Brand : Macbeth Footwear

Subject : MAD3113 Advertising Design Project 1

Chapter 1: Introduction

1.1 – Introduction

Macbeth Footwear (previously called "Macbeth Athletics") is a company founded by Tom DeLonge and Mark Hoppus of Blink-182. They founded the corporate in 2002- 2003. The corporate sells primarily footwear, however additionally sells t-shirts, sweatshirts, and shades (among different accessories). Macbeth is a mostly vegan company and is heavily influenced by music and different artistic arts. The other signature of Macbeth Pennant is a mythical creature A.K.A Griffin (a lion with wings).

The shoes maintain a low profile, classic silhouette that is designed to be comfortable, yet stylish. Macbeth shoes are known for sporting a pennant on the sides of the shoe. This pennant represents the brand’s iconic logo and is printed on every Macbeth product. Macbeth’s line of footwear offers many specialized shoe designs through its work with artists (Studio Project program). Top sellers such as the Eliot, Brighton and Matthew showcase the successful collaboration between an artist and Macbeth.

1.2 – Problem Statement and Issues

• Very high competition with others brands such as Nike, Vans, Adidas and etc. • Malaysian love and attract to other brands.

Chapter 2: Product

2.1 – Product Name

Macbeth originally started as a footwear company, selling athletic shoes. Since its launch, the company has enjoyed successes allowing for Macbeth’s expanding its product mix to include vegan alternatives, apparel, and accessory items.

2.2 – Product Classification

Most the material is vegan and it is comfortable, durable and fashionable as the other products. 2.3 – Product Characteristics

• Made with animal-free materials • High quality construction • Variety of fashion-forward styles • Comfortable fitting • Uniqueness/Niche design • Price range in Malaysia is RM 160 – RM 500

2.4 – Product Range

• Footwear – A lot of styles and designs. Colors - Blue, orange, purple, red, peach, light green, dark purple, light brown, grey, forest green, French blue, dark brown, dark blue.

• Apparel – Tees, fleece, jackets, bottoms,

• Accessories – headwear, bracelet, guitar strap, wallet and socks.

2.5 – Distribution

• Macbeth Footwear is a wholesaler that sells exclusively to one national retailer in the United States: Journeys. Macbeth can also be found in other small-name retail stores on the West Coast. A majority of its retail sales comes from its partnership with Journeys, which has retail stores nationwide. However, shelf space dedicated to Macbeth is weak in Journey stores. Macbeth products are hard to find in a majority of Journeys stores and offer limited Macbeth choices.

• In Malaysia, Macbeth only have online store and also can get at shoes store such as Tangs One Utama, Robinsons The Garden, Extreme Sunway Pyramid etc. 2.6 – Product Life Cycle

• Macbeth offers something no other shoe brand can: musically-inspired shoes designed by musicians. Much like how Adidas designs its products for soccer players, Macbeth was originally created to meet the needs of the musicians and their lifestyles, and has since caught on with teenagers and young adults who seek stylish shoes. Macbeths are fashionable, yet comfortable, without being the giant skate shoe or an athletic jogger style. Macbeth fills that void with comfortable, fashion forward, low profile classic shoes.

2.7 – The Brand

• Macbeth Footwear is a Southern California shoe company founded by Blink 182 front man Thomas DeLonge in 2002. Macbeth Footwear was initially created in response to the growing footwear needs of musicians and their unique lifestyles. Macbeth created a product that incorporates a love for music and the need for affordable, comfortable, fashion-forward footwear in a crowded marketplace. Since then, Macbeth has been growing steadily, especially on the West Coast of the United States and abroad in the United Kingdom, Japan, and Asian markets. Macbeth is an up-and coming company due to in part to the limitless creativity within the organization. Macbeth’s steady growth is directly tied into its trendsetting nature. While many artists like to put their name and money behind companies that create clothing and lifestyle accessories for musicians, Macbeth is different. Macbeth not only directly works with musicians, but the organization is almost entirely run by musicians.

2.8 – Brand Image and Implication

Macbeth has several characteristics that set it apart from other sneaker brands. For starters, Macbeth strives to make really good products. Macbeth is the original music footwear brand actually created by musicians. Macbeth line is inspired directly from Macbeth exclusive group of artists, unlike other brands that simply latch on to whatever fad is hip at the moment. The Macbeth Studio Project program is something Macbeth pride of, rather than buying merchandise rights to a band’s name and logo; Macbeth work directly with an artist to capture their personality and artistic personality in each and every product. Macbeth also does a lot of charitable work with Shirts for A Cure, Keep a Breast, Invisible Children and the Dear Jack Foundation. We maintain a low profile, classic silhouette that is comfortable for the artist while playing on stage but also fits within their style. Macbeth Vegan shoes are some of the only true vegan shoes around, Macbeth use water-based glue and vegan materials unlike many other brands that use regular glue and vegan materials.

2.9 – Strength and Weakness

Strength Weakness • Made with animal-free materials • Challenges of niche strategy • High quality construction • Low profile shoes • Variety of fashion-forward styles • Limited availability through retail • Comfortable fitting outlets • Uniqueness/Niche design

2.10 –Advantages and Disadvantages

Advantages Disadvantages  Better for environment  Little bit pricey  Create awareness  Consumers not aware of the  Promote more bands product  Promote more arts  Have big competitor’s

2.11 Unique Selling Proposition

The shoes maintain a low profile, classic silhouette that is designed to be comfortable, yet stylish. Macbeth shoes are known for sporting a pennant on the sides of the shoe. This pennant represents the brand’s iconic logo and is printed on every Macbeth product. 2.12 Promotional History and Advertising Schedule

• “Sport of Life” Campaign Overview In 2005, Macbeth Footwear changed its name temporarily to Macbeth Athletics during their 2005 marketing campaign “The Sport of Life.” The campaign’s slogan intended to show a different type of athleticism, and portrayed active lifestyles, in contrast to just physical sports.

• “Sounds of the Future” Campaign Overview Macbeth approached 2009 as if it was 2013, and the world had already ended. Luckily the Macbeth shoes will be just what you need for the apocalypse; we know, because we’ve been there. You can see the theme elements in all of the artworks, from warplanes to atmospheric events, crazy futuristic prints, all of which convey the idea of the ‘Sound of the Future’.

2.13 Positioning statement

• What Macbeth will bring to the East Coast is an alternative shoe brand to counter the same old, tired, dry shoes that currently saturate the market. Macbeth offers a simple profile, stripped down shoe with shoe with a “do good” message. This target market will feel that they are making a good return on their investment and making a positive difference through purchasing a pair of Macbeths.

Chapter 3: Company

3.1 – Company Overview

Saban Capital Group ("SCG") is a leading private investment firm based in Los Angeles specializing in the media, entertainment, and communication industries. SCG was established by Haim Saban, co-founder of Fox Family Worldwide, a global television broadcasting, production, distribution and merchandising company owned in partnership with Rupert Murdoch and The News Corporation, following its sale to The Walt Disney Company in October 2001. The firm currently makes both controlling and minority investments in public and private companies and takes an active role in its portfolio companies.

3.2 – Business Description

SABAN Brands Entertainment Group (SBEG) aims to continuously develop innovative content that resonates with consumers across all media platforms. SBEG was formed to oversee the company’s growing entertainment portfolio of brands including Power Rangers, Julius Jr., Popples, and Cirque Du Soleil Kids – Luna Petunia, Emoji Ville and others in development. SBEG operates out of SABAN Brands’ Los Angeles headquarters. SABAN Brands Lifestyle Group (SBLG) aims to actively acquire and grow brands that have a passionate consumer following and global reach. SBLG was established to drive major expansion within the company’s diverse portfolio of fashion and lifestyle properties. Led by Dan Castle, Managing Director of Strategic Business Development, SBLG operates out of Saban Brands’ New York office and showroom.

3.3 – Company History Saban Capital Group, Inc. is a private investment firm based in Los Angeles, California focused on media, entertainment, and communications investments. Formed in 2001 by Haim Saban, Saban Capital Group owns Saban Brands, part of Univision Communications, and part of Celestial Tiger Entertainment.

3.4 – Key People

- Haim Saban (Chairman, CEO)

- Adam Chesnoff (President/COO)

3.5 – Location and Subsidiaries

Los Angeles, California, United States

3.6 – Brands, Major Products and Services

In category entertainment the SABAN have entertainment portfolio of brands including Power Rangers, Popples, Cirque Du Soleil Kids – Luna Petunia, La Banda, Julius Jr., Emojiville, Digimon and others in development.

In category Lifestyle, SABAN actively acquires and grows brands that have a passionate consumer following and global reach such as MAMBO, MACBETH, PAUL FRANK and PIPING HOT.

3.7 – Corporate Vision

To actively acquire and grow brands those have a passionate consumer following and global reach.

3.8 – Corporate Mission

Connecting fans to brands everywhere, every day 3.9 – Company’s Current Promotional Strategy

• “We Want You Inside Us” Campaign Overview In the spring of 2011, Macbeth launched a new line of footwear with the campaign slogan: “We Want You Inside Us.” Macbeth decided to kick off the campaign by attending the SXSW, a big music and film festival in Austin, Texas. They brought the Macbeth Traveling Education Bus and showcased the Macbeth products.

3.10 – Product Sales’ History

• Put Macbeth, Inc. is located in Carlsbad California. It is a private company categorized under footwear. The company employs estimated 20 staff members. Macbeth has been in business for 10 years. In 2002, the company started with $20,000; by 2005 Macbeth’s annual revenue exceeded $3,400,000 (Source: Manta). Obtaining financial information has been difficult given the private nature of the company.

3.11 – Current Marketing Objective

• Connecting fans to brands everywhere, every day

3.12 – Media Expenditure

• Macbeth footwear majority use concert or road tour as their media and also sponsor to other music bands. Furthermore, Macbeth Footwear use media social such as Facebook, Instagram and etc. By using social media, they promote their product and also give news about what is going on. Mostly it is about concerts and collaborations artists.

Chapter 4: CONSUMERS AND STAKEHOLDERS

4.1 – Consumers’ Characteristics

• 4.1.1- Current Consumers’ Characteristics : Young adult and adult males and females ages 16-35 currently represents the core target market of Macbeth Footwear on the West Coast and as Macbeth begins to expand its brand to the East Coast, Macbeth will be advertising heavily to this core segment. Today’s consumer’s account for 25 percent of the U.S. population, so not only do they provide a promising customer base, they also provide the possibility for lifelong brand loyalty. As a highly-sought after market segment, this group has a combination of greater knowledge as well as greater optimism.

• 4.1.2- Psychographics: True Digital Natives: Grew up on smartphones, fast web, and smartwatch. True multi-taskers, no-holds-barred attitude towards blogging, digital publishing.

• Speed Demons: Expect instant gratification. This segment lives for speed and sluggish technology is useless technology.

• Community-Organizers: Teenagers grown up with social communities such as Facebook and Orkut. Meeting, befriending and interacting with the online community is second nature; it is in their ability to spread messages to vast sums of internet users.

• Micro Miners: Despise long texts. In today’s digital age, teenage users thrive on bite-size, manageable bits of information.

• Technology has led to new buying patterns: Because of the speed of technology, the buying patterns have completely changed within the last ten years alone. Instead of television and telephone, today’s teenagers not only use multiple technology channels for communications, but are major content creators as well.

• Teenagers will still be teenagers: Despite every technological and cultural phenomenon that makes them different, teenagers are still going to be teenagers. Today’s teens abhor advice from adults and the “establishment.”

• Endless information at fingertips: This generation has grown up quickly because they have more information at their fingertips than any other generation had at that age. Today’s teenagers/young adults live in a real-time world where every though can be sent from anywhere in a fraction of a second (Source: Lyon).

4.2 – Stakeholders’ Characteristics

• 4.2.1 Primary

• No main “internal” stakeholder and what they contribute to the company have been found online. Company couldn’t be contacted through email.

• 4.2.2 Secondary

• No main “external” stakeholder and what they contribute to the company have been found online. Company couldn’t be contacted through email.

Chapter 5: INDUSTRY AND THE MARKET PLACE

5.1 – The Industry

• 5.1.1- It is axiomatic to say globally, the footwear industry has an expanding market. World population increases, living standards rise, so does the demand for footwear. It is axiomatic to say globally, the footwear industry has an expanding market. World Population increases, living standards rise, so does the demand for footwear.

• 5.1.2- The global footwear market has seen wide-ranging trends across totally different geographic regions like North America, Europe, Asia Pacific, and rest of the globe. The worldwide footwear market is driven by factors like growing demand for brand new style of footwear and growing awareness concerning healthy and active life style. Increasing population, propensity of individuals to pay additional and rising stores have additionally attributed to the growing demand for footwear across the world market. Also, there are sure restraints that are slowing down the expansion of the world footwear market. Increasing environmental considerations and inflation of raw material are the most factors that are acting as restraints for the world footwear market. However, there's a good chance within the footwear market like changing consumers' fashion and fashion trends, rising role of e-commerce and increasing new brands within the market that may enhance the demand of footwear market within the coming years.

Some of the highest players in the world footwear market are Nike, Adidas, Ascis, Puma, VF Corp, Skechers and New Balance among others. At present, among the highest players in the world footwear market, Nike is that the leading footwear company followed by Adidas and Ascis. Nike and Adidas have the foremost range of stores, sturdy marketing, and huge client base globally. Asics and puma are fashionable in the European market where as VF Corporation. Skechers, and New Balance are American corporations with sturdy presence in the American footwear market.

The footwear market has been divided into three segments: by varieties of footwear, by consumer group, and by geography. Further, the by varieties of footwear include athletic footwear and non-athletic footwear. The report additionally offers competitive analysis regarding sub-segment of athletic footwear and non-athletic footwear. Athletic footwear section offers merchandise of four classes that include insert shoes, sports shoes, hiking shoes and backpacking boots. Sports shoes are expected to own the most important market in terms of volume globally from 2014 to 2020. In terms useful Insert shoes is expected to own the most important market globally throughout the forecast amount. Non- Athletic footwear section additional includes three categories that are casual footwear, fashion footwear and formal footwear. Casual footwear is predicted to own the most important market globally both in terms useful and volume from 2014 to 2020.

• 5.1.3- Until the half of the nineteenth century, practically all garments and shoes were made by individual tailors and cobblers operating either alone or with one or two apprentices or journeymen. The goal of each apprentice tailor was to find out the way to create a whole garment as presently as doable. The output of a tailor or garment-worker was sometimes restricted to specific women’s, men’s, or children’s garments; the skilled worker sought-after to find out the maximum amount as doable from a specialized master craftsman. A similar apprentice- journeyman system prevailed within the footwear trade, within which all cobbler craftsmen were male.

The advent of the stitching machine enlarged craftsmen’s retailers and converted them to factories. In several factories staff in hand their machines and carried them from manufactory to manufactory whenever they modified jobs. Needle workers lugging their machines on their backs were a typical sight on the downtown side streets of New York City, the garment-manufacturing capital of the world at the flip of the twentieth century. Taking advantage of the low capital investment per employee, several wear entrepreneurs began to farm out their cut clothes to be stitched reception. The bundle brigades—men, women, and youngsters trudging through the streets lugging bundles of cut or finished clothes to and from their flats within the side tenements—replaced the sewing-machine carriers of previous years.

Most attire factories at this point were as thronged, poorly lit, airless, and insanitary because the home workshops. The term manufactory was coined for such factories and residential workshops at the start of the twentieth century, once staff within the attire industries began forming unions to urge higher pay and dealing conditions. The International Ladies’ Garment Workers’ Union, organized in 1900, and therefore the Amalgamated wear staff of America, shaped in 1914, became pioneer unions in mass-production industries within the US furthermore because the largest garment unions within the world.

5.2 – The Market place

Couldn’t found about it in online. Company couldn’t be contacted through email.

Chapter 6: COMPETITIVE SITUATION

6.1 – Direct Competitors

• Vans • DC Shoes • NIKE • ADIDAS • CONVERSE

6.2 – Indirect Competitors

• Vans • DC Shoes • NIKE • ADIDAS • CONVERSE

Chapter 7: SWOT ANALYSIS

Strength Weakness Opportunity Threat • Niche product: • Small company, • Emerging • Large, big Musically inspired modestly capitalized technology and budgeted footwear, 100 % • Low brand digital tools to better competitors vegan, recognition beyond reach out to • Weak Economy charitable West Coast of young customers • Perceived as a partnerships and United States • Going Green skater-shoe company’s social • Lack of trend, promoting a company messages retail/physical more ethical, eco- • Global uncertainty: • presence in U.S. friendly Wars, material Founder/Spokesman • Lacks the financial company resources, foreign Tom DeLonge’s resources to • New avenues of economies Starpower compete with big distribution • Quality products competitors • Moderately priced • Causal footwear • Strong online distribution network • Privately-held company allowing for more flexibility

Chapter 8: RESEARCH

8.1 – Marketplace Research

• The store at Extreme, Sungai Wang Plaza. Macbeth products have it is own shelf and the entrance of store have Macbeth wallpaper that cover the entire store wall.

• The image below is from Robinsons at The Garden. Macbeth products have its custom shelf and the product displayed according to the product categories.

8.2 – Market Observation

• Observe manually on how many people are interested in the product/services • At the Robinsons store, the services are not quite good because there is no promoter in that area. After more than one hour, still don’t have any promoter or worker in that area because of that the customer tend ignore the product or just look at product. Also the customer in that store was less than ten even in the weekend.

• At the Extreme store, there was very good environment design and the display of the product. Each area or brands have the promoter or employers stand beside the product. So it is easy for customer to ask question. According to the employers who handle the Macbeth product, he said the selling of Macbeth products are good but as good to Vans products. This is because Macbeth products are displayed next to Vans product.

8.3 – Online Survey

Figure 8.3.1

Figure 8.3.1 shows gender of respondents are 24 male and 13 female.

Figure 8.3.2

Figure 8.3.2 shows 21 responses are student and other 15 are not student. 1 responses did not answer this question.

Figure 8.3.3 Figure 8.3.3 shows 33 responses age are 21-29. 3 responses from 18-20 and 1 response from 17 or younger.

Figure 8.3.4

Figure 8.3.4 shows responses can choose more than 1. This question is to know what type of shoes most people seek. The sports shoes and casual shoes are the highest only 1 responses different. Dress shoes is 27% and 16.2% work shoes.

Figure 8.3.5

Figure 8.3.5 is also can choose more than 1 answer. Majority shoes brands is Nike followed by shoes brands VANS. For the Macbeth only have 16.2%.

Figure 8.3.6

Figure 8.3.6 also can choose more than 1 answer. Respondents pay more attention on shoes style.

Figure 8.3.7

Figure 8.3.7 shows that 81.1% respondents choose to buy shoes at mall.

Figure 8.3.8

Figure 8.3.8 shows that 81.1% respondents do not know who Tom DeLonge is.

Figure 8.3.9

Figure 8.3.9 shows that respondent know about the brand but based on figure 8.3.5, brand Macbeth it is not their first choice.

Figure 8.3.10

Figure 8.3.10 shows those respondents are willing to check out Macbeth product. This is because their show interests and curiosity about product after answer this survey.

Figure 8.3.11

This shows that 48.6% respondents not aware about Macbeth social media but there is no large gap differences between40.5% respondents that aware about it.

Figure 8.3.12 Figure 8.3.12 shows that most respondent interest and willing to know more about the product because of this survey.

Figure 8.3.13

Figure 8.3.13 shows that some of respondents did not know that there is alternative of animal skin as material to made shoes. Macbeth product is one of using vegan material.

Chapter 9: FYP Proposal

9.1 – OBJECTIVE

Change the meaning of word Vegan in people perception and also create the awareness about the vegan product.

9.2 –Proposed Primary Target Audience

Demographic Psychographic • 13-30 years old , young adult • People who want be part of • Male and female something good. • Open to any race and ethnicity • People who want to feel the true • Urban and Suburban satisfaction of wearing a good shoes • People who want to feel different.

9.3 - Big Idea and Advertising Strategy

Chapter 10: Reference http://albinmulyono.blogspot.my/2011/01/history-of-macbeth-products.html http://business.transworld.net/news/macbeth-signs-licensing-partnership-mercer-house- north-hill/#YCJOmVb2Re97BHQ5.97

Chapter 11: APPENDICES