CASE 3: Vans: Skating on Air

PRODUCT AND BRAND MANAGEMENT

Faculty: Suresh Paul Anthony

Group 10:

Abhijeet Mohandas – 1701061

Deepak Kumar – 1701014
Gaurab Mandal – 1701019
Pavani Kavala – 1701037
Subramanya Nayak – 1701166
Ans 1:

Customers Key characteristics of customers

Surfers, Kids Preferred highly customized Products (different
colours and designs)
Disenfranchised Teenagers and youth’s (The Z- Price sensitive, Preferred Durable and trendy
boys) goods, took pride in breaking conventional
limits, Rebellious

Cheerleaders, Drill teams, marching bands Customized products according to school

colours
Hard to Fit customers Required Non-standard widths and lengths.

Vans had managed to built a small but loyal customer base by providing products tailored to each
customer’s needs.
Public Perceptions Skateboarding: The skateboarding was viewed as adventure sport for teenagers and
rebellious youths specially after the Z-Boys redefined the sport during 1970s. Competitions very
conducted, dozens of skateparks were opened all over north America and skateboarding was on verge
of becoming a 400-dollar business indicating popularity and craze it had created among American’s.
Going by the above facts it is safe to say skateboarding was very well accepted sport among American’s.
In the late 70s the infatuation with skateboarding had been replaced by a fascination with other
alternative sports
Ans 2: In the period mentioned above, Vans’ competitive edge was because of the shoes perfect
durability to handle heavy wear and tear which was one of the reasons for it being used by skaters.
According to an industry observer it was “built like a battleship”. At prices ranging from $2.49 to
$4.99 a pair, the pricing of its shoes were also right. Hence it was affordable for most people. Another
unique factor was that the customers (skaters) could also customize matching shoes and t-shirts – one
could choose their own canvas fabric and colour. Till the 90s, Vans’ also had the competitive advantage
of its US manufacturing cycle time of 19 days from receipt of order to completion of finished goods.
All the above factors contributed to the competitive advantage that Vans’ had in that period.

Vans’ value proposition to customers was to make the most durable and affordable casual deck shoe
in the market. They had manufactured a rubber-soled shoe that was reinforced with clay, and the upper
canvas was double-stitched and the entire shoe was washable. As an industry observer described: It was
in a way “built like a battleship”.

Ans 3: The company’s main competitive advantage was its U.S. manufacturing with a cycle time of 19
days from receipt of order to completion of finished goods, thus reducing inventory problems that
afflicted other footwear companies. This lead to increased productivity and reduced productivity cost.

The company’s competitive position had become more competitive over time. It was fighting with
major competitors like Nike and Reebok. The company started selling athletic footwear too along with
sneakers for which it had gained fame. Other footwear companies emerged in the market with better
designs and same or lower price due to lower overseas manufacturing cost. Till then, people used to
buy from Van’s due to it durability and great pricing. However, as people were given more choice, they
had more options to choose from and hence companies were forced to either change their strategies or
focus on specific, niche segments.

Vans’ moved from a direct manufacturing company by closing its factory. It focused more on trying to
maintain and retain strong relationships with unpredictable and fashion-conscious kids in order to
remain competitive among the big players like Nike and Reebok. As mentioned earlier, its initial value
proposition to customers was “to make the most durable and affordable casual deck shoe in the market”.
But with intense and strong competition from big players, it changed its value proposition “to create a
proprietary branding platform that would build on their unique heritage and give them a long-term
leadership position” by focusing on furthering the authenticity of their brand and connection to the
lifestyle associated with core sports. It was no longer about simple customization of its durable and
affordable sneakers but catering more to the customized lifestyle of the user.

Ans 4: Entertainment: The prestigious Vans Triple Crown of Surfing title is a professional surfing
milestone which promoted the individual Vans sponsored athletes and also created a brand image for
Vans. The Warped tour was a breakthrough for many artists and these promotional events are the best
places for participants, fans and viewers to buy the merchandise too. The unique media campaigns
surrounding these events created brand awareness for Vans and also the tile sponsors. The attendance
in Exhibit 4 shows how big a hit it was and the company got revenue from the sponsors and also the
broadcasting media. The movies and video games on the other hand are completely dependent on the
creativity of the developer and Vans can continue them only if they have potential but they should surely
focus on improving the promotional mix by continuing the Triple Crown Series and Warped Tour.

Shoes: The attractiveness of Vans shoes lied in high product quality, customization, low prices and
sporty look. They capture high market share in the men’s shoes segment and should now focus on
growing market of women sports community part from the existing market. Their core advantage is
there are few competitors who manufacture in-house shoes for women. It should also focus on
understand and creating need in the market for new varieties of shoes like slip-ons, extra protection for
soles, authentic etc. It should concentrate on the more profitable segment and therefore try to reduce
production costs.
Hence Vans should concentrate on improving both shoes and entertainment promotional mix
Ans 5:

Customer base Brand image Alternative sports

category
Increased number of Broadened customer Strengthened brand Vans not only
sports affiliated with base image, positioning capitalised on the
Vans as an extreme popularity of this
sports company category, but possibly
also helped it by
introducing events like
the triple crown
Diversified product Segmented the Did not compromise Attracted greater
portfolio customer base and brand image as it attention by making
addressed their catered to the same products accessible to
individual needs better segments and lifestyle casual buyers
Expanded Allowed the company Didn’t dilute image as Brought category-
distribution to reach new product portfolio related products to a
customers corresponded to new audience
segmented distribution
Broadened Broadened customer Strengthened brand Benefited by growing
promotional mix base by reaching new image by associating publicity around the
audiences the brand with category through
alternative sports Vans’ promotion
across a variety of
media
Ans 6: With the growing popularity and increased penetration of the brand, we feel that Van should
cultivate its brand associations to become a $ 1 billion company. There are many reasons for Vans to
pursue their $ 1 billion worth:

 Increasing market share percentage by Brand: From 1997 to 2000, Vans has registered
almost 40% increase in their Skate-Shoe market (Exhibit 7). This is a strong sign of increased
relative competitiveness of the company’s product in their target market.
 Industry dominated by the company’s target group: As from exhibit 5, we can see that the
Age group 14-24 has almost 47% of the Skate Shoe Dollar Expenditure. This reflects that the
target age group of Vans i.e. 12-18 years has been dominating the industry and there is a lot of
opportunity for the Shoe Company to harvest.
 “Resonance” with customers: Vans’s customer base included both hardcore enthusiasts as
well as occasional athletes. Their connection to the new generation of the sports is their heritage
and their products resonates with the lifestyle of their customers – young, fun, Southern
California, beaches, skateboarding and surfing.
In addition, the company is successful with their promotional mix and they have registered their
presence where they are able to integrate themselves into the places their customers are most likely to
be. Also they have wide range of product line which are appealing to customers and making their brand
loyalty strong. Hence, they should venture with their campaigns to become $ 1 billion Company.