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Table Of Contents
4 17 21 24
Situational Analysis Establishment of Objectives Dollar Appropriations Management and Coordination of Program Elements Measurement of Program Effectiveness Expected Results, Projected Income And Promotion Follow-Up Footnotes Bibliography
Situational Analysis 4 .
With this project my goal is to expand the target market to include more consumers. The company and its shoes became quite popular in the 1980‟s with the release of the movie Fast Times at Ridgemont High. and watches. Vans target market ranges from teens to people in their mid 20‟s that are in tune with the action sports community. where a slacker wears Vans‟ now famous checkerboard slip-on shoes. Vans managed to post increases in sales while every other skate shoe brand posted losses up to 20% (Brilliant). In recent years Vans has tried to widen this target market by marketing their products to the age of consumers who may be more in tune with the underground music scene. and snow. I will be doing this because if you widen your target market. and over the past 15 years has moved into other various action sports such as BMX and snow. In quarter 3 of 2010. which is a daylong concert that travels the country every summer. The company is a large player in the skateboard scene. surf. While shoes are what the company is known for. mainly skate.Company History Vans is a skateboard apparel company that was founded in 1966 in southern California. there are more 5 . They are accomplishing this through the Vans Warped Tour. Company Description Vans is a producer of skateboard apparel and action sports apparel. At the core of Vans shoes are the athletes that help develop footwear that not only defines their individual style but also technologically pushes the parameters of their sports. accessories. they also provide consumers with clothes. more then they are with action sports.
therefore causing energy prices to increase. Because Vans has so much of their company infrastructure located in California. these cost increases translate to large expenses. they are significantly cheaper. Energy Prices are another Economic factor that has an affect on Vans. Environmental Analysis Economic Currently. which is a start if you are going to sell a product at all. thus causing consumers to have less disposable income.consumers that have the potential to buy your product. and the more people that buy your products the more money your company can make. If Vans does increase the price of their products 6 . four spate skate parks. there have been occurrences of energy shortages and power outages. Currently in California. This double-edged sword is also a hindrance to Vans in the form of pricing and cost. which offer similar options. and compared to other brands like Nike and Adidas. central distribution center. shoes. While Vans are not cheapest shoes in the marketplace. therefore shoes will still be bought regardless of how the economy is. they are competitively priced for the segment they are in. where Vans has its headquarters. and therefore consumer spending has been down. This period of consumer skepticism and consumers spending their money more conservatively are both a benefit and a hindrance to Vans. These energy shortages and power outages have created a shift in the supply and demand curve. our economy is in the midst of bouncing back from a recession. as well as half of its retail locations. Consumer spending slowing down is a benefit to Vans because shoes are a necessity. which ranges from casual to athletic. This situation means that people are still buying what Vans sells.
Generation Y. Connecticut based 7 . Vans recognizes that while being centered in an area that is having a more difficult time adapting in the current economic climate puts them at a disadvantage to other competitors. many loyal consumers will notice and question why the same pair of shoes that they have purchased before is now costing a few dollars more. Generation Y came after the Baby Boomers and according to an article in USA TODAY.to offset the increasing energy costs. including Skechers. The main generation that Vans targets is. Vans did not want Skechers benefitting financially from the use of their pattern or a pattern similar to Vans. Schoenfeld said that other major brands don‟t have the right stuff to reach his “rebellious market” (Weintraub). as well as they did not want their customers to be tricked into buying a product that was not an authentic Vans shoe. Skecher‟s USA Inc. In November of 2007. Vans was fighting the actions of Skechers because of the strong association that the checkerboard pattern has with the brand of Vans. “Vans sought a preliminary injunction that would have barred Skechers form selling the shoe” (Combs). Political/Legal In 2007. However. founder of New Haven. the judge denied their injunction because Vans had not established a trademark for the checkerboard design and there fore any company could use it. took Van‟s to court over use of the checkerboard pattern that is commonly associated with Vans. they are taking steps to produce their products in ways that use less energy. Social Vans CEO Gary H. Bruce Tulgan.
Vans has also come out with baby Vans shoes. When Vans noticed that many women were taking interest in their product. By making the “Girls” website different from Vans homepage this helps the women customers to get a more feminine feel that Vans has made for the women line. Vivian Manning-Schaffel describes Vans demographic by saying that Vans brand has targeted one of the most fickle types in the marketplace: “the rebellious youth segment. describes this generation as so. They are more active when it comes to sports and have a laid back idea of working. 8 . with a mini-site that depicts a more femme friendly aspect of its trademark youthful rebellion” (Manning-Shaffel). nurtured and programmed with a slew of activities since they were toddlers.RainmakerThinking. but they‟re sale will most likely increase. Vans has recognized a unique behavior that Generation Y has. “They want to work. In an article about Vans on brandcameo. “The „Girls‟ product page is treated like a sub-brand. meaning they are both high-performance and highmaintenance… they also believe in their own worth” (Armour). Gen Y has been pampered. but they don‟t want work to be their life” (Armour). This generation enjoys the active lifestyle and Vans targets that idea by having different events and ways for their consumers to feel like Vans is targeting them individually. Even though Vans came out in 1966 and Generation Y is between the years 1982-1995. as Generation Y gets older.org. an anti-establishment demographic that would bristle at the thought of actually being considered a demographic by the corporate world” (Manning-Schaffel). which are for Generation X mothers. “unlike the generations that have gone before them. Vans baby line has only been around for the past 3 years. they released a women‟s line. This type of demographic is so unique that Vans competitors have a hard time actually competing.
but skiing is seen as “wimpy” and therefore to remain loyal to their customers. Even the more expensive products are being made out of synthetics. 9 . and then 20% of recycled rubber on the outsoles. with so many companies making products that are cheap and harmful to our planet. that most of their consumers are more aware of the outdoors and care about keeping the Earth clean. It all starts at the raw material for their products. plastics and other types of chemicals are being produced to make the cheapest quality products. because they are out in the ocean and there have been a lot of problems with oil spills and litter. skate and snow company. Recently Vans has released a line of organic canvas Slip-On shoes that are made out of 100% organic fabric on the top part of the shoe. However. Vans decided to only make products for snowboarders. Vans has taken notice that since they are a surf. However they are still reasonable priced so that the middle class can purchase Vans. Vans has decided to be one of the first major companies to take a step into the more natural and organic direction. there are many companies that are out there to mass-produce their products without any consideration to the effects they are causing on our environment. Because of the quality of Vans they have a higher price than the average cheap shoe. They hope to promote not only a healthy and active lifestyle. Trees are being torn down to build factories. but to also promote how to be eco friendly.One trend that Vans noticed was that their target market considers snowboarding as an extreme sport. The main social class that Vans focuses on fall into the upper middle class. Especially surfers. Natural When it comes to our Earth and how we treat our environment.
Twitter. but by making a special line with organic materials works to promote a healthier active lifestyle that will even draw in people who may not do any of those activities. Technology Technology is something that has been very significant and influential in America. Vans has made sure to infuse its company with sites such as: Facebook. With having so many different additional places where Vans has its company helps with the different 10 . it is now required to be competitive. MySpace. As technology continues to grow and spread throughout the world there are different ways that companies are using technology. Flicker. but still purchase Vans products just because they agree with the Green movement.com to see how much Vans is using technology and to the fullest. Companies can no longer afford to ignore social media if they want to compete in the marketplace. so popular that the whole world has adapted it to its various cultures. It also has received attention from the media that has helped consumer‟s notice this environmental step that Vans has taken to separate themselves from their competition. the less amount of pollution that is released into the air.and the Global Warming ideas that are affecting our oceans. All one has to do is go on Vans. the fewer chemicals. Social networking has become very popular. YouTube and BlogSpot. This is a positive move because hemp and water based ink use less chemicals. Being Green is one of the several steps Vans is taking to try and be more eco friendly. Another type of material Vans is using for their shoes is natural hemp or oiled canvas with water based ink and glue. Not only will their organic line increase their support from their loyal customers.
“The attention to Twitter reflects the power of new social media tools in letting consumers shape public discussion over brands” (King). Vans has taken notice of this Twitter trend. By keeping up with the new trends that is placed online. may persuade more people to attend because they will be interested in seeing it for themselves. Vans is able to market and tell people who are following them about the latest events. and distributers. which helps consumers see the type of events they do if they‟ve never gone. a reporter for BusinessWeek. With Twitter being so popular. Some people like to just watch various videos about what‟s going on or what‟s coming up and so Vans makes various videos for their consumers. The reason why many major brands are using Twitter according to Rachael King. and if that company or brand has a Twitter. Having a lot of pictures up of the events Vans puts on. They also take many pictures of the multiple events they put on. there are so many people that are on it compared to writing an extensive blog about a product. Vans is also able to see whenever someone Tweets about their experience regarding Vans. giveaways. Twitter is one of the newest and biggest technology trends that has been online. With all this technology going on. or news that comes up. manufactures. talks about why so many brands are using Twitter to improve their marketing or even customer service. people are able to comment about a company or brand. Social networking is used 11 . then they will hear about people problems or praises. Rather. and has set up a company account themselves. Technology is making even the smallest of businesses able to connect with customers. clients. there are so many ways to reach different types of people that a company cannot reach by just doing commercials or advertising.people they market to. Vans has found a way to make sure they have every area covered.
by companies to attract and stay in tune with what their customers have to say about the company and its products. Competitive For any product on the market. each of these companies target a similar segment. Vans has three major competitors: Nike. Nike. If the customers are all on their site to attack them. and Converse. By maintaining the positive relationships and loyal customers that Vans has. The main consumers that each of these companies have. have a customer for life. This right here is where it gets tricky with these four companies. since Vans has so many social networks. Adidas. which seems to be a completely different shoe 12 . will stay with the one company and won‟t buy from other companies because they have come to trust and support that one company they love. With this in mind. due to how many people are on all the various social networks. and their competitors. they can recruit or dismiss potential customers. However. They can essentially. When it comes to Vans. their company will most likely grow at a rapid pace do to technology speeding up the business life cycle. they have to always check up with how they are doing with their customer service. because once you have an identity with you customers. then this could be a very negative thing. because they know that if they can get that one consumer to commit than they don‟t have to worry about the other competitors. This can be a risky factor as well. What‟s interesting is that none of these shoe companies actually produce the same type of shoes that Vans produces. there will always be competitors trying to take away from your product. it‟s actually different than the typical competitor. but offer different styles where the majority of their consumers are loyal and will stick with one brand.
In 1995 Nike tried to invade Vans‟ territory. and hockey sticks. let‟s look at the marketing mix that Nike has established. Nike has set their product up differently than Vans.company than Vans. The reason that Nike is able to accomplish having such a wide brand width is that they set up some separate brand names and manufactures. even though Nike is a major competitor to Vans. They are considered to be a premium sporting company and therefore their prices are higher than Vans. Place is the third component to the marketing mix. “Nike offers a wide range of shoe. by having a massive brand width in basically all the sports out there. Nike has come to produce athletic apparel and equipment that has been known worldwide. Since Nike is the biggest threat to Vans. according to Gwendolyn Cuizon. Bauer Nike Hokey Inc. their placing strategy is to have their shoes carried in many stores 13 . Since 1979. and many other shoe companies. The first component is the product. it sets up a different game for each company. skate and snow. that manufactures and distributes winter athletic equipment like ice skates. The next component to Nike‟s marketing mix is their pricing. Inc. Nike also sells small amounts of plastic products through Nike IHM. Because Nike decided to price their products at a higher level than Vans. because of the name and quality is much higher than other sport apparel providers. apparel and equipment products” (Cuizon). Whereas Vans has specifically decided to expand their width to only surf. to upper class. There basically isn‟t any sport that Nike hasn‟t produced something for. Nike‟s prices are targeting more of the upper middle. Nike has expanded its brand name to where it has a lot more power than other companies. realized this when Vans sales started increasing in their sales and Nike sales started to drop. but they didn‟t succeed.
Nike sponsors several events including Hoop It Up. and in almost 200 countries around the world” (Cuizon). Renaldo. Nike made this commercial knowing that people would talk about it. “Nike sells its product to about 20. By sponsoring or putting on athletic events like these. Lance Armstrong for cycling.000 retail accounts in the U. Whether or not that increased sales is not Nike‟s main concern. Something very interesting that Nike just did was their commercial with Tiger Woods that does not really promote or dismantle their image and their continued sponsorship with Tiger Woods. and snow. Promotion. by sponsoring athletic events. This product placing is severely higher than Vans. A lot of people were confused about the point of their commercial.across the globe.S. and get their brand talked about. and Roberto Carlos). however they do still have some exclusive Nike stores as well. helps get their name 14 . The last component to the marketing mix is. can only place their product in stores that are along the same lines of surf. The big thing that Nike is known for is having famous athletes serve as “brand ambassadors such as the Brazilian Soccer Team (especially Ronaldino. Lebron James and Jermane O‟Neal for basketball. and The Golden West Invitational. The main thing that Nike focuses on is what stores they can place their product in that is easily accessible and fits their customers „ideal shopping center‟. on the other hand. skate. They know that just having the idea of Nike in people‟s minds will be enough for their next athletic purchase to think about Nike. however. Most of Nike‟s shoes are carried in multi-brand stores. Nike has some very different views about promotion and how they get their product out there to their customers compared to Vans. Whereas Vans. Nike also has some similar promotions strategies as Vans. and Tiger Woods for Golf” (Cuizon). Nike has a larger brand width and therefore their products can fit in many different stores.
compared to Vans who is based on word of mouth and hosting surf. they sell their shoes in the same places as Airwalk and several more places. Converse shoes are targeting to the middle class to lower middle class and therefore they position themselves in newspaper ads. The main purpose of Airwalk is to provide lower class consumers to be able to have the same style and look as the more priced shoes. Adidas has a very similar positioning strategy to Nike because both companies are targeting the upper class more so than the lower. and ads for stores like Target and Wal-Mart. however they do have a shoe that is similar that many people purchase because I does look similar but is cheaper than Vans Authentic. Nike positions itself around any athletic event. On the other hand. Airwalk is a surf. Keds is not geared to the sporty segment. Airwalk has a bigger potential of consumers leaving Vans to 15 . skate. and Converse all have different positioning strategies that are specific to their target segment. like Kohl‟s and JC Penny‟s. and snow company that is primarily sold in shoe stores such as Sears and Payless. Keds is one step up from Airwalk. but the price is set so many can afford them. These two companies maybe future competitors because their prices are cheaper. The quality is not as great. Therefore their ads and selling markets are in more expensive stores. These companies do more external type positioning. Vans Authentic. Below is a comparison between the three companies.out there and even the athletes participating in the event will most likely purchase or be wearing or using Nike apparel and equipment. There are some competitors out there that are trying to compete with Vans most famous styles of shoe. They have many commercials during sporting events. Nike. Adidas. skate. and snow competitions.
By Vans recognizing their competitors marketing mix. because they have a very similar target audience.purchase Airwalk.00 With the many competitors that are out on the market. And if price is one of the main factors for consumers they may end up choosing Airwalks. 16 . If Nike‟s approach is more commercial. and celebrity based. Vans can analyze their loyal consumers and their potential consumers to find out why make them choose Vans over other companies. this will help them with their own marketing mix and positioning strategy. ads.00 $42.99 $35. $19. Vans can analyze how their athletic events compare to using commercials and what marketing strategy works for their target segment.
Establishment of Objectives 17 .
turn music fans who are not that aware of Vans apparel into first time trial users. This concert series will be on a much smaller scope in comparison to the summer counterpart. The target market for this objective is fans of the punk/hardcore music movement between the ages of 14 and 24. These are the consumers who are in tune with what is happening in their music scene and are passionate about the bands and artists playing.Objectives With the following proposed promotion plan. as well as check out what new products vans is offering with their winter line of apparel. that in combination with each other. It will still have a diverse range of music so that fans will have the opportunity to hear new music. To complete this projection there will be three different promotional plans used. The expected results from this objective are for sales of the new winter line of Vans apparel to increase by 15% among this demographic of Vans‟ consumers. The winter concert series will be a month and half tour that will hit 30 major cities in the continental United States. It will start January 1. it would be scaled back to be a nightlong concert with 7 bands playing. The outcome for these users is two fold. Objective 1: The first objective to be deployed is to develop a winter concert series similar to what Vans already does in the summer with the Vans Warped Tour. the umbrella objective for Vans is to increase sales by 5% by the end of Q2 2011. will allow our 15% goal to be reached. as well as encourage repeat buys from consumers who have already purchased Vans apparel products. 2011 and run through 18 . Rather then being an all day festival with over 50 bands playing.
February 20. Each event will run two commercials every 45 minutes. The expected result of this program is to have sales of artist shoes of 5. The outcomes of this objective is to create awareness. but not so much that they are annoyed by the commercials and therefore turned off by the company. 2011. as well as 19 .000 pairs of shoes by the end of Q2 2011. to aid in not burning viewers out on a single commercial. There will also be two separate commercials used. The target market for this objective is those consumers who are in tune with Vans as a company and also with their creative art side. The outcome for this campaign is to raise awareness of the Vans brand name by 200% in the winter action sports community. This will ensure that viewers are exposed to Vans. Objective 3: The third and final objective will be to launch an Artist Series of Vans shoes that will be take the basic Vans Authentic Shoe model and allow artists to design the shoe however the see fit. The target market for this campaign is those viewers who will be watching the winter action sports programming. This objective will use public relations as the main tool of communication by letting consumers know that Vans is a product that they can choose from. These shoes will then be sold to consumers. with 10% of the proceeds going to inner school art programs. Objective 2: The second objective that will be deployed is to run commercials during the broadcasting of five winter action sports events.
based off of fans of the artist chosen to design the shoe. 20 . as well as create repeat usage of Vans shoes.create first time users.
Dollar Appropriations 21 .
30 days) Rent Venue (includes sound system and security) Pay Bands (10 bands @$500/band) Provide food Busses for Vans Employees Truck for merchandise Daily Pay for Vans Employees (10 employees @ $10/hour.Here is the individual breakdown of each promotional element and its estimated cost: Objective 1 (costs for days that a concert is performed.500 Total Cost of Objective 3 $35.500 22 .000 $1. 8 hour day) $5.500 Total Estimated Cost of Program Elements $442.000 $32.000 Total Cost of Objective 2 $11.000/ artist w/ 3 artists) Donation to art programs (10% of 5.000/ad) $8.000 shoes @ $65/pair) $3.000 $5.000 Objective 3 Artist Pay ($1.000 Objective 2 60 Commercial Spots on cable TV @ $50/spot 12 spots/event X 5 events Cost to produce TV ad (2 ads @ $4.000 $700 $700 $800 Total Cost of Objective 1 $396.000 $3.
The other two will be fairly easy to implement and get off the ground fairly quickly. 23 .As one can see. the largest portion of our marketing budget is going to be going to the concert series. This is also going to be the most difficult and time consuming objective out of the three.
Management and Coordination Of Program Elements 24 .
MTV2 and Universal HD” (Alli Sports). They will embody snow. and February 10-13. and having a good time with friends. The main winter action sport event that we will focus on is the Dew Tour. Since it will be the winter when these programs air. December 16-19. All these events will be broadcasted live. all three stops of the Winter Dew Tour will be televised Live on NBC. “Boasting the largest media platform in all of winter action sports. January 20-23. This will be beneficial to us because our ad spots will be getting primetime showing over the course of these three-day events.Mass Media Advertising In this promotional campaign. with additional broadcasts on USA Network. The message of our commercials will be one that embodies the action sports lifestyle. laid back and fun. as well as giving the idea that our apparel will make you unique and independent. we will gives viewers a look at more of our winter apparel and transfer the idea that Vans does not only sale summer apparel. the only mass media advertising that is being used is in Objective 2 with the commercials that will be run in select winter action sports events. 25 . There are three stops on the tour. skating. simulcast on Verizon V CAST and around the world on Eurosport 2 and Fox Sports Australia. The other two sport events that we will have our TV spots played in will be determined at a further date.
as well as provide them with promotional discounts. The name of the concert series will be the Vans Winter Tour. hey maybe they need some new shoes. it will be associated with the tour every time someone talks about the tour and what bands they are going to see at the concert. there will be merchandise tents set up all around the venue with Vans reps that can show consumers the new winter line. keeping it inline with the summer counterpart. there will also be a team of employees walking around the venue and interacting with fans. if concertgoers for some reason don‟t have a band to watch. Vans will write up a press release about their new Artist Series Shoes they are developing. Publicity Publicity will be the promotional tool for Objective 3. As well as employees working merchandise tents. as well as announce about the 10% of proceeds that will be going to inner city art programs. will remind them that. Vans will then 26 . a new flannel. Public Relations will be the promotional tool. the Vans Warped Tour. and Vans. or just hang out and talk with them and see how they are enjoying their night of music friends. or a new jacket since the weather is starting to get colder.Public Relations With our winter concert series. announce the artists they will be collaborating with. taking pictures that will be posted to the website and video testimonials about how good of a time concertgoers are having at the Vans Winter Tours. Throughout the concert. Keeping Vans in the consumers‟ mind by way of the tour name. By keeping Vans in the tour name. the Artist Series Shoes.
This free publicity will allow the public to know what Vans is doing with relatively little cost to Vans.distribute this press release to every major network and business news outlet. as well as to industry news outlets to get the word out about how Vans is helping the community as well as providing limited edition shoes. other then the donations and paying the artists for their artwork. 27 .
Measurement of Promotional Effectiveness 28 .
To do this we take an average of the past 4 quarters sales increase percentages. To evaluate if this goal was met. we need to take sales from the end of Q4 of 2010 and then compare to sales from end of Q2 of 2011. Another tool that could be used to measure the effectiveness of the campaign is good record keeping. We can develop this information by asking customers for their email and through that we can contact them with surveys as well as getting them to activate an account with our online store.Evaluating Objectives The umbrella objective for Vans is to increase sales by 5% by the end of Q2 of 2011. 29 . Knowing where your sales are coming from so that you can compare them to future sales and gauge how well a certain promotional plan worked or didn‟t work for you. then add it to our 15% and that is the amount of sales that we need to meet our goal. we will need to keep close track of who our customers are and their spending habits. However. As for our three objectives and evaluating how well they performed. By doing this we will have a better concept and more information on who is buying what of our products and when they are buying them. we need to take in account normal growth that would occur without our promotional plan.
Expected Results. And Promotion Follow-Up 30 . Projected Income.
or what pushed them into actually going out and purchasing our product. is if the tools are in place so that this increase in sales can be traced to one of our three objectives over the two quarters.000%. Using this information it will be possible to analyze and figure out what parts of the promotional plan had holes. The only way this would be viable for this marketing plan. overall. If we can trace all sales to our promotional plan. For this particular promotional plan. This makes our 5% increase in sales difficult to figure out how much profit that will actually be. However. our return on investment would be over 8. Follow-Up As with any project the best course for action when following up is to make sure you have sufficient data from before the promotional plan. what worked well. and after the promo plan has concluded. all the elements interacted together and what that outcome was. and how. 31 . what failed.500. resources must be in place to determine where each consumer heard about our product. therefore if we were to meet our goal of increasing sales by 5%.5 million in sales.Expected Results/ Projected Income Financial information for Vans is quite hard to come by. Our total expenditures for the promotional plan are $442. then this plan needs to be implemented because it will reap huge rewards for Vans. during the promo plan. however industry experts estimated their revenue last year to be around $750 million (Tschorn). we can estimate and say that a 5% increase to those sales would translate to an increase of $37.
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