New Balance Advertising Plan Jude Kinne Ekedi FaustherKeeys

New Balance Advertising Plan Jude Kinne, Ekedi Fausther-Keeys, Charlene Huang, Rahul Chittipeddi

Introduction With athleticism being “in, ” stylish women want to be able to transition from work, to home, to the gym without having to change clothes. With the trend of “athleisure” wear (a portmanteau of the word “athletic” and “leisure”) women want to buy apparel that can be worn in the gym - or not. But with competition from industry giants like Nike, Adidas, and Under Armor, how can New Balance stand out in an oversaturated market? (Market Share Reporter)

Marketing Problem: Surveyed women do not know that New Balance offers a wide range of apparel outside of their well-known sneakers. In a market oversaturated with athletic apparel, New Balance needs to stand out as something that will be worth buying for busy, active women. (Mintel - Activewear 2016) Core Audience: ● ● ● Women ages 25 - 44. 25 -44’s are more likely than all to buy activewear (92% of 25 -34’s and 85% of 35 -44’s purchased in the last year versus 78% of all). urban college educated upper middle class mothers

New Balance Mission “At New Balance, our job is to aid athletes in their pursuit of excellence, whether that means helping professional athletes set records and win medals, or propelling everyday athletes to achieve a new PR, run their first 5 K or just to live a more healthy and active lifestyle. Our products are the perfect blend of function and fashion, giving you the performance technology you need and the style you want. ” Source: www. newbalance. com Inside New Balance

Marketing/Advertising Objective ● Establish New Balance as a well-known manufacturer of high-end, stylish athleisure apparel. ● Inform half of the 125, 000 women who buy athleisure wear that New Balance makes a wide range of cool, comfortable, high performing athletic clothing that can also be worn in everyday life.

Situation Analysis Product: New Balance Athletics, Inc. : Private Company, Commands as much as brand loyalty as Nike, New Balance Women’s Athleisure, Upwards Sales Trend Price:

Situation Analysis cont. Place: Available online and in-stores Promotion:

SWOT Strengths Weaknesses * * * * Diseconomies to scale * Over leveraged financial position * Saturated market Cost advantage Effective communication High R&D Online growth Loyal customers Strong management team Strong brand equity Opportunities Threats * * * Competition * Cheaper technology * Economic slowdown * External changes (government, politics, taxes, etc) Acquisitions Asset leverage Emerging markets Innovation Product and services expansion

Current Social Media Analysis ● Facebook: ○ ○ ● Instagram: ○ ○ ○ ● 2. 5 Million Followers 2, 167 Posts On average 25 K likes on posts Twitter: ○ ○ ○ ● 1, 802, 129 Likers On average 500 likes on posts 233 K Followers 17. 9 K Tweets On average 30 likes, 20 retweets Youtube: ○ ○ 34, 217 Subscribers 107 Videos Overall: → Low engagement on all platforms → Inconsistent posting schedule for Facebook

Current Social Media Analysis (Cont. ) ● ● ● Generally Facebook posts highlight New Balance shoes Very few posts dedicated to athleisure Lack of emphasis on the positioning of athleisure wear.

Trend Analysis ● ● Forbes - “[Athleisure] has carved out a niche for itself in the clothing industry, and has won an entry into the Merriam-Webster dictionary” 2015 - the rise in activewear sales was a whopping 16% Business Insider - “It's combining two trends that have dominated American casual clothing — durability and comfort — in a versatile way. ” Shape - “ It's also undeniable at this point that high-end designers are being influenced by athleisure popularity. Just look at the runways and you'll see sneakers on models' feet, sweatpants paired with high heels, and bodycon crop tops that can just as easily be worn on a night out as they could to a dance cardio class. ”

Situation Analysis/Category ● Upward trend in athleisure wear ○ 12. 9% grown from 2010 to 2014 ○ Versus 7. 5% decline in Denim industry from 2010 to 2014 ● Currently worth $16. 4 billion ○ Projected to reach $17. 8 by 2020

Market Share (2015) Sales (2016) (Gale Directory Library) Competition 20. 7% $32. 4 billion¹ 3. 9% $4. 83 billion² 3. 5% $22. 8 billion³ ¹https: //www. statista. com/statistics/241683/nikes-sales-worldwide-since-2004/ ²https: //www. marketwatch. com/investing/stock/ua/financials ³https: //www. adidas-group. com/en/media/news-archive/press-releases/2017/adidas-record-sales-and-earnings-2016/

Positioning Grid High Quality New Balance Lululemon Under Armour Nike Adidas High Price Low Quality

Nike Platform: Video spot, February 2017 Slogan: “Do you believe in more? ” Benefit: Nike gear will help your body achieve its goals no matter the level of difficulty. Support: Women engaging in strenuous choreography and doing difficult stunts Position by: the celebrity endorsement by music artist FKA Twigs. https: //www. youtube. com/watch? v=fh 772 V 1 Ky. Xk

Under Armour Platform: Television Ad, July 2015 Slogan: “Protect This House” Benefit: Encourages determination Support: Features motivated, wealthy supermodel Position by women who are self-determined to achieve their physical goals. https: //www. youtube. com/watch? v=H-V 7 c. Oest. Us

Adidas Platform: Print Ad, May 2016 Slogan: “Impossible Is Nothing” Benefit: Encourages a healthy lifestyle Support: Features active women working out together, Empowerment Position by women who are determined to lead a healthy lifestyle and reach their fitness goals

Competitive Summary Nike - Help your body reach its optimum level of fitness. Under Armour - Under Armour supports the ultra-focused and competitive athlete. Adidas - Adidas gives you the power to work through the pain of exercise. The category of athletic wear is very competitive. Many of the campaigns are about strength and defiance, without much emphasis on fashion. Our ads will convince the consumer that they can have workout clothes without having to sacrifice style.

Target Audience Part 1 Our target audience is women aged 25 -34, especially into first time mothers. This is based on MRI data in which we found that this age group makes up 20. 99% of athleisure buyers. Mothers were chosen because the average of first time mothers, 26, is within this range; therefore it’s important to market motherly needs as well. Relevant VALS Types: Achievers and Experiencers ● ● ● “Me first, my family first” attitude Goal oriented Hard working ● ● ● Love physical activity Want everything Are up on the latest fashions The lifestyle of our target is active, busty, athletic, adventurous, stylish, mostly family and work oriented.

Target Audience Part 2: Survey ● ● Internet survey of “somewhat active” women ages 24 -35 years 66% reported to purchase athleisure wear 23 times a year 25% reported to purchase athleisure wear once a year 9% reported to purchase athleisure wear once a month

Survey Data Analysis When asked about what factors they consider when purchasing athletic wear: ● ● ● 66% value style/design the most 25% value price the most 9% value brand the most

Survey Data Analysis Of these women: ● The top 3 brands (out of the given 10 brands) with the most familiarity are: 1. Nike 2. Adidas 3. New Balance

Survey Data Analysis When asked to rank the 10 brands of how likely they are to purchase apparel from: ● ● Adidas ranked #1 with 41. 67% Nike and New Balance ranked #2 with 25% Reasons of purchase: ● ● ● Adidas: “The athletic wear that they make best fits my style” Nike: “Have worn clothing from Nike for years and am always satisfied with longevity + performance” New Balance: “I hear the quality is good”

Survey Data Analysis: Consumer Impressions

Strategy Consumer Insight: The nature of activewear guarantees clothes will be comfortable, therefore the main differentiator in buying products is style that fits you. Positioning Statement: Positioned for women between the ages of 25 -34 who believe they can be both active, comfortable and fashionable. New Balance offers quality athleisure products that can be worn in the gym, at home or on the go. In a poll, New Balance ranked in first place for its timeless commitment to the customer. Advertising Objective: We are expected to create brand awareness, stimulate sales and profits, and develop positive consumer attitudes.

Creative Brief Job Description: A series of two print advertisements and one billboard Target Audience: ● ● ● Women ages 25 -34 Moms Young professionals Target Insight: Target audience searches for a brand that fits their style of fashion and style of life Benefit: New Balance has provides stylish clothing, appropriate for all of life’s circumstances Benefit Support: ● Clothing options that can be adapted and used in different situations ○ E. g. pants that work in the office and in casual daytime Brand Personality: Trendy, spirited, wholesome

Print Ad 1 Headline: Runs in the family Body Copy: You have a lot to fit into your schedule. Whether you’re running on the treadmill or running after this little guy, New Balance just fits. Slogan: FIT in.

Print Ad 2 Headline: Run the town Body Copy: In the gym or on the town, you always have your eye on the prize. Keep striving. Step into New Balance. Slogan: FIT in.

Billboard Headline: Marathon Monday Slogan: FIT in. Run in April, 2018 during Boston Marathon

Media Plan Print Based Ad - Runner’s World Magazine. According to University Reporter, this is the magazine that people who buy athleisure wear are most likely to read. ● Run Dates: April, 2018 issue - 2018 Boston marathon. According to the Runner’s World Press kit, the demographics of the magazine closely align with our target audience. They are young, have a high income, and more than 90% have attended at least some college. RW. com = 71% female usage. ● This month the magazine is featuring clothing for marathon runners

Media Plan Cont. ● Place Based Ad - Billboards reach a young, mobile, well educated, affluent audience. (M: Advertising, 2 nd E. ) The audience we are trying to reach is young (25 - 34), active, and has money to spend on higher quality athleisure clothing. According to University Reporter data, those with a bachelor’s degree or higher are more likely to buy athleisure clothing. Our billboard will be on the highway outside of Boston as thousands of people are traveling to the city for the Boston Marathon. ● Digital Platform - Instagram. Highest number of followers for any of New Balance’s social media channels (2. 4 million followers)

New Media Means of Measurement To Be Considered ● Drive 50% more traffic to the website with a 25% percent return rate ● Increase App downloads by 15% ● Increase Facebook followers by at least 10% (Goal: Roughly 2 m followers) ○ ● Increase Twitter followers by roughly 30% (Goal: 300 k followers) ○ ● Increase engagement by 5% (Like, comments, visits) Increase engagement by 15% (Likes, retweets, comments) Increase Instagram followers by 25% (Goal: 3 m followers) ○ Increase engagement by at least 12% (Likes, comments, etc. )