New Balance

Integrated Marketing Communications Plan

Team New Balance

Jermiane Copeland, Garrett Kluever, Anthony Rupena,
James Wallis and Steven Wright
11/19/2020

Table of Contents
Accurate and complete list of topic headings and page numbers

Title Page Page 1

Table of Contents Page 2

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Section 1: Situation Analysis Pages: 3-5

Section 2: Competitive Review Pages: 6-14

Section 3: Key Strategic Campaign Decisions Pages: 15-21

Section 4: Marcom Mix Pages: 22-27

Section 5: Message Strategy Page: 28

Section 6: IMC Media and Contact Points Pages: 29-31

Conclusion Page: 32

Appendices Page: 33

References Page: 34

1.0 Situation Analysis

An overview of the circumstances your company/organization/ product is facing:

In this section, you will conduct secondary research to find information about your company and
the industry. Refer to Chapter 6 (Pages 163-166) for more information about Secondary
Research for your Situation Analysis.

Start every section of your report with a summary intro paragraph. This paragraph should
introduce the reader to the section and give the reader a brief overview of the main findings in
this section. Write this intro AFTER completing the other parts of 1.0.

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1.1 Background Research
Industry Description: New Balance is a part of the sportswear industry that focuses on
clothing and shoes that are used for sports, working out or a general active lifestyle.

Size: The sportswear industry globally in 2019 is worth approximately $1.3 trillion. The industry
generated $180.96 billion in revenue in 2019.

Growth: In the year 2025, the industry is expected to generate $207.79 billion, roughly a 14.8%
increase in six years. This is due to the continued tie-in with sports leagues and general
promotion of active, healthy lifestyles.

Macro-Environmental Factors and Issues:

● Economic: Many sportswear items, and clothing in general are made overseas in
factories. These factories have reputations for harsh working conditions, child labor and
extreme fatigue. This is a multifaceted issue (political, economic, legal) that makes many
consumers feel guilty and uncomfortable.
● Political: Sportswear companies have begun backing the political values and beliefs of
their athletes. Colin Kaepernick and Nike are an example of this. Nike has given
Kaepernick a platform to orate the difficulties many African Americans face in today's
society (police brutality, racism). People are beginning to factor a company's political
stance into their purchase decision.
● Cultural: New Balance is in the middle of a rebrand. The company for a while has had
the perception as an uncool athletic brand, focusing on older demographics with the
synonymous starch white dad tennis shoe. They are now shifting to focus on the 14-24
demographic hoping to shake their past identity. The first step of which was landing
Kawhi Leonard, a basketball superstar, as a brand ambassador.
● Environmental: Sportswear and clothing has an especially short lifespan, usually only
lasting three years. In 2018, the United States alone generated 15 million tons of
clothing waste alone. All this while clothing has a close to 100% capability of being
recycled or refurbished. Many consumers are becoming environmentally conscious and
in-part are looking for clothing that lasts. This is tricky for sportswear since active wear
tends to receive more physical wear than other articles.

1.2 Company/ Organization Description

History: New Balance was founded by William J. Riley in 1906 as the New Balance Arch
Support Company. Riley founded the shoe company after seeing how chickens walked on three
points of contact and believed he could create arch supports that offered the same attributes.
New Balance supports became popular with athletes in the 1950's and in 1961, New Balance
released their first shoe, the Trackster. In 1972, current chairman Jim Davis purchased the
company. New Balance greatly benefited from the running boom of the 70's and 80's launching
itself into a global brand. Today, the private company is still primarily focused on comfortable
athletic shoes, while also maintaining a clothing line.

Place in the Industry: According to a market share study in 2017, New Balance was the fifth
largest sportswear company in the world. It generated $4.7 billion in revenue, close to Puma
and Under Armor (3rd and 4th respectively) which generated roughly $5 billion in revenue.

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However, these pale in comparison to Nike and Adidas (1st and 2nd) which generated $33
billion and $26 billion respectively. It appears that Nike and Adidas take up most of the market,
while the other brands like New Balance compete for a distant third.

SWOT Analysis

Strengths

● New Balance claims to have 75% of their shoes made in the United States
● They have over a century of expertise in the industry
● Their shoes are their focus and have a reputation for comfort
● They claim to use environmentally friendly manufacturing procedures

Weaknesses

● The company is heavily overshadowed in the market by Nike and Adidas

● They have a reputation for creating unfashionable apparel and shoes
● Manufacturing in the United States is very expensive
● They allow customizable shoes, which raises production cost

Opportunities

● Customers that invest in apparel that will last longer and are high quality will enjoy New
Balance's customizable shoes
● Kawhi Leonard, a well-known NBA superstar is a brand ambassador with an apparel
deal
● The company is rebranding, hoping to become hip with a younger generation like
Champion recently did

Threats

● Other brands are more stylish

● Maintaining a dedicated running base while shifting to a younger demo
● Kawhi is their only big sponsored athletes
● The rise of imitation and pirated apparel will eat more into market share the more New
Balance grows

1.3 Key Communication Problems

SWOT Insights: New Balance has a great opportunity to become trendy like Champion did in
the clothing market. Champion borrowed trends from designer brands like Supreme and Stussy.
Kawhi Leonard is the perfect spokesperson to lead this rebrand and become accessible to the
14-24 demographic. However, they are still far behind Nike and Adidas. I would try to position
the company above Under Armor and Puma as a clear #3 before beginning to target the two far
larger companies. One way to do this on-top of the rebrand is to push their shoes as a high-
quality option. Sure you may pay a little more, but you're paying for long-term usage and
continual comfort. Shoes after all are still their bread and butter. One threat that could squash
this though would be the increased production cost of becoming an increasingly customizable
brand. They are working with a limited market revenue and this could prove costly

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Other Key Insights: New Balance needs to identify itself politically. Unfortunately, Kawhi
Leonard is notoriously not outspoken on issues like LeBron or Kaepernick. He supports them
but does not like the attention. If New Balance wants to make a large impression on this front,
they need to sign an athlete that is a strong supporter against these injustices. I would start with
the NFL so they have a star in two of America's largest sports leagues.

2.0 Competitive Review

2.1 SWOT Competitor Analysis (Puma)
History: In 1924, Adolf ad Rudolf Dassler started the Dassler Brothers Shoe Factory, with one
of their emphases being spikes for soccer shoes. In the 1936 Olympics, Italy won the gold
medal wearing Dassler spikes. The Dasslers rebranded the company as Puma in 1948 and
came out with their first soccer shoe, "The Atom". However, it was in 1952, when they came out
with the "Super Atom" the world's first shoe with screw-in studs, that company began to gain
popularity. Puma revolutionized soccer shoes again in the 60's with vulcanization, bonding the
sole and shaft of the shoe. Puma shoes were on the soles of Tommie Smith and John Carlos
when they did their infamous power salute in support of African Americans on the podium during
the 1968 Olympics. They continued to be the go-to soccer shoe but expanded into running
shoes during the 90's with Usain Bolt being an ambassador. They are still the world's most
popular soccer shoe and have expanded to clothing as well.

Place in the Industry: Puma generated the 3rd most revenue in 2017 of sportswear companies,
mostly by focusing on the soccer crowd niche. According to a market share study in 2017,
Puma generated close to $5 billion, more than Under Armor and New Balance which generated
roughly $4.9 and $4.7 billion in revenue respectively. However, these pale in comparison to
Nike and Adidas (1st and 2nd in the market) which generated $33 billion and $26 billion
respectively. It appears that Nike and Adidas take up most of the market, while the other brands
like Puma compete for a distant third.

SWOT Analysis

Strengths

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 ● Global establishment in 90 countries with production and supply chain
● Excellent research and development in sports performance shoes (Formula One/Nascar
Driving shoes anyone?)
● Official sponsor of FIFA
● Built-in niche of soccer fans loyal to the product

Weaknesses

● Limitability of re-invention of products like shoes and sportswear

● Low product diversification, clothing not considered high priority
● Factories are in poverty-stricken countries and conditions reflect that
● Niche brands tend to have small customer bases

Opportunities

● Usain Bolt is brand ambassador, can be used to attract new track athletes
● Brand is considered trendy and hip with the 18-35 demographic
● Diversification with more lifestyle products and branding could greatly improve sales

Threats

● Crackdown of overseas sweatshop conditions could lead to legal issues

● Stereotype of being a 'soccer' brand can limit it's appeal to customers
● Very close in sales to New Balance and Under Armor competing for 3rd
● Another popular soccer brand could arise and decimate their sales

Key Communication Problems

SWOT Insights: Puma has a very loyal fanbase that is globe surrounding one sport, soccer.
This is great because their network can cover most of the world and resonate the product's
message within different countries. However, the one country that does not enjoy soccer is
America, which is a huge consumer market. Puma has also not expanded it's lifestyle brand
much yet, even though they are considered trendy and fashionable. In order to capture the
American consumer, they need to keep their trendiness while simultaneously shedding their
'soccer' image. This could prove difficult and consuming for their fanbase

Other Key Insights: Puma is in a weird position if it wants to identify itself politically. Most racial
injustice talk is centered in America, unlike their fanbase which is mostly global, outside the
United States. However, if they wanted to make their stance in America, they have one amazing
launching pad. Tommie Smith and John Carlos were wearing Puma cleats when they did their
infamous power salute in support of African Americans on the podium during the 1968
Olympics. Both are still alive and prominent activists in the African American community.

2.1 SWOT Competitor Analysis (Reebok)

History: Reebok was founded in 1958 in England by two brothers named Joe and Jeff Foster.
They carried on the legacy of their grandfather, Joseph William Foster, who had founded his
own athletic shoe company in 1895 called J.W. Foster which would later be absorbed by
Reebok. In 1979, Paul Fireman acquired the rights to Reebok in North America. In 1984,

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Fireman bought the parent company itself. Reebok dominated the athletic footwear market in
the late 1980s, controlling 26.7 percent of the market in 1988. They would continue their
success in the 1990s signing top-tier NBA ambassadors including Dominique Wilkins, Shaquille
O’Neal, and Allen Iverson. By the late 2000s, Reebok started to lose popularity and one main
reason was that they never established themselves very well in the apparel segment. Adidas
acquired the rights to Reebok in 2005, but they kept it as separate names and Reebok
continues to operate as its own brand.

Place in the Industry: After dominating the market in the 1980s and 1990s, Reebok has
continued to fall down in the athletic brand market. In 2018, they had fallen all the way down to
about two percent of the market, which was ninth in the industry behind the top brands like Nike,
Adidas, Under Armor, New Balance, and Puma as well as other less popular brands like
Skechers, Asics, and Lululemon.

SWOT Analysis

Strengths

● They have plenty of celebrity endorsement including from Floyd Mayweather, Allen
Iverson, and Jay-Z
● At one point they were on top of the industry, so they know what needs to be done to get
there
● They have the support of Adidas who owns Reebok
● Their market segment is clear

Weaknesses

● Their apparel has been unsuccessful and is not necessarily stylish

● They over commercialized and are stuck competing in the mass market with local and
regional competitors rather than being considered a premium brand
● They have struggled with promoting their brand awareness to consumers

Opportunities

● They are looking to reach new markets and reestablish themselves as a top brand
● Adding younger celebrities to endorse the brand could help popularize their brand with
younger generations
● There are a lot of opportunities for a niche within the athletic footwear industry, if they
can capture those, they could dominate one area of the market
● Fashion trends from the 1990s are coming back and since they dominated, they could
create throwbacks to gain their old popularity back
● The athletic apparel industry is very successful, and they just need to find a way to better
establish themselves within that rather than just their footwear

Threats

● Top competitors that are more popular and have more consistent customers
● Imitation brands are very common in the industry and for consumers who do not care
about a brand name and just want the cheapest prices, this takes away from bigger
brands

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Key Communication Problems
SWOT Insights: Reebok has continued to struggle from the past decade-plus. Since they were
once at the top of the market, they have proven that they have the ability to be extremely
successful. They currently have a good number of celebrity endorsers, however none of them
really cater to the younger generation of consumers which is the demographic that makes up for
most of the sports apparel and footwear market. If they can find a way to better market
themselves to the younger demographic, they could be very successful. It is important to note
that they have quality shoes and considerably appealing designs and the opportunities are
there, they just need to capitalize on those opportunities.

Other Key Insights: While they seem to have a lot of elements in place to be successful, their
popularity is just not there. While a rebrand probably would not help them very much, a revamp
might. If they can better market themselves to a younger audience and find a way to show off
their designs and how good their products are in different areas of the footwear market that
would be a good start. As previously mentioned, new celebrity endorsements would also help. If
they can do all of this, they just need to remind everyone how popular they used to be because
a big part of the business is brand recognition. Reebok is not completely helpless despite their
recent irrelevance, but they need to make marketing adjustments soon before they continue to
fall further down in popularity.

2.1 SWOT Competitor Analysis (Under Armour)

History: Under Armour was created in 1996 by Kevin Plank who is the current founder and
executive chairman.The headquarters are in Baltimore Maryland and they have various
locations around the United States and the rest of the world. It is an american company that
manufactures footwear, sports and casual apparel. Plank was a former special teams player on
the football team at the University of Maryland. He began his business from his grandmother's
basement in Washington D.C. he would travel around the east coast selling apparel from his
car. His first team sale was for $17,000 that was for a local high school team. He got the idea to
create under armour because when he played football he was tired of getting his shirt soaked so
he created a compression shirt to sell.

Ranking among competitors: Under Armour is a relatively new company when it comes to
the athletic apparel industry. They have been around for 24 years starting in 1996. Under
Armour currently comes in fourth place for sales in the united states for athletic clothing brands.
Nike, adidas and puma all have a lead on UA but they are the newest company of the bunch.
On the national level they are also ranked 4th in overall worth while Nike is the leader. At the
start UA only made clothing wear but they have massively grown since the start and have
dipped in every major sport and even have sponsorships in worldwide sports teams like Spurs
in england.

SWOT Analysis

Strengths

● Under Armour is made in the US so they do very well in the market which is important
because sales are high in the United states.

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 ● They're a newer company so have plenty of time and resources to expand on their
company and grow from where they are.
● They are growing in every sport and industry and continue to try and perfect their
products.
● They are the highest ranked in the industry then any other company that has been
around for the same amount of time.

Weaknesses:

● Nike and Adidas have a massive advantage in the industry and control most of the
market share.
● They have not been around long enough so still have not been established in certain
areas like soccer and basketball.
● They are not as well known on a world scale as some other companies like nike.

Opportunities:

● They are a growing business because of how young they are so they continue to expand
and are given that freedom to do so.
● They have athletes in basketball, soccer and other sports that are promoting UA which is
important because it's still a young company so this will help them with recognition.
● They are getting more branches across the world which will allow them to be worldwide
and promoted.

Threats:

● Competitors that have a bigger following like Nike and Adidas.

● Later start so it's harder to get into the market of certain athletics.
● Other companies have a bigger global market

Other: Under Armour is a flourishing company that continues to do well on a regional stage and
is expanding as they can. Will nike and adidas continue to overshadow them which is a threat to
them being able to grow especially on a global stage. They also need to continue to have
athletes promote their brand, steph curry was huge for them and has really helped them in the
basketball world.

Key Communication Problems

SWOT Insights: Under Armour is a newer company compared to some of their competitors
entering in the late 90s. They are not quite the company as Nike or Adidas because of the lack
of time and loyal brand customers. They are expanding and trying to enter in all sports as well
as international customers, endorsers like Steph Curry and Demarcus Cousins have really
made the brand of UA more successful in basketball. They have entered the soccer market by
having Tottenham Hotspurs as well as Memphis Depay where UA products. If they can find a
way to really dip into the global market in places like Europe and Asia they could really grow as
a company. They have great quality products, nice designs and comfortable apparel to really
make a point on the global stage.

Other Key Insights: Under Armour has grown so much since the start of the brand and need to
continue to do so. I think they have done a good job of marketing and put themselves at #3 in

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the U.S. market behind Adidas and nike. If they continue to slip into the international market
they will become successful.

2.1 SWOT Competitor Analysis (Adidas)

History: Adidas was founded on August 18th, 1949 in a small German town by Adolf Dassler. At
this time, Adidas only had about 47 employees. Adidas began their famous three stripe shoe in
1954 when the German national football team faced off against the unbeatable Hungarians in
the 1954 World Cup final. The German victory made Adidas a name that would be remembered
by people all over the world.

Place in the Industry: Today, Adidas is the largest sporting goods manufacturer across
Europe, and the second largest worldwide, behind Nike. Today, Adidas employs nearly around
60,000 employees worldwide, and net sales that amount to about 23.64 billion euros. In 2019,
the company produced 448 million pairs of shoes worldwide and 528 million units of sports
apparel.

SWOT Analysis

Strengths:

● Brand Value: Ranked number one in Europe and number two across the entire world
behind Nike
● Strong Financial Position: One of the most stable companies globally
● Celebrity Endorsements: Has been endorsed by many great athletes and movie stars
● Brand loyalty: Many people tend to stick to a certain shoe and clothing brand, and with
Adidas being one of the leading brands, many consumers stay loyal to Adidas products.

Weaknesses:

● Outsourced materials/products: manufacturing suppliers come from China, Cambodia,

and Vietnam. Adidas runs the risk of overdependence on foreign suppliers.
● Pricey products: Almost every shoe sold by Adidas is close to or over a $100 price
range.
● Limited products: Adidas is specifically designed for sportswear, which limits their
products, and there are many competitors, which can be detrimental to this company.

Opportunities:

● Growing sportswear industry: This generation is very health conscious, which means
there is no sign of the sporting industry slowing down.
● Global Expansion: The internet and social media is a fast growing platform, which opens
up many opportunities to the sportswear industry, or any industry at all, to expand to
markets that they could not reach prior.
● Recycled materials: it is estimated that 300 million pairs of shoes are thrown away every
year. Many shoe companies are constructing shoes made out of the same materials by
melting down old shoes and recycling them into new ones.

Threats:

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 ● Competition: The sportswear industry is one of the biggest industries around the world,
which means continued threats of rivals such as Nike, Under Armor, New Balance,
Champion, etc.
● Trade tensions: With Adidas outsourcing materials with foreign countries, trade tensions
may arise which may threaten Adidas, such as tensions between the US and China.
● Technological Advancements: much like competition, Adidas could face a threat of a
competitor designing a more technological advanced product.

Key Communication Problems

SWOT Insights: Adidas is one of the leading brands in athletic apparel, coming in at number
one in Europe and number two across the world behind Nike. Even though they have such a big
following, Adidas outsources its products, which can lead to problems as they depend heavily
on outsourced foreign materials. With this, trade tensions could provide a major threat to Adidas
as a company such as tensions rising between the United States and China. Even though the
materials are outsourced, the sportswear industry is growing rapidly, and is worldwide, which
opens many opportunities to expand their global market. Social media is a part of everyday life,
which provides companies such as Adidas a direct source to its customer and fan-base.

Other Key Insights: Adidas is recognized worldwide and has a strong brand loyalty amongst
their consumers. They are one of the most financially stable companies throughout the world
which makes them stand above their competitors and really gives this company a competitive
advantage.

2.1 SWOT Competitor Analysis (Nike)

History: Nike started off as Blue Ribbon Sports in 1964, founded by the University of Oregon
track and field coach. Originally operating as a distributor for the company now known as Asics,
Blue Ribbon Sports was renamed Nike in 1971. In 1971, Nike created the waffle pattern on the
bottom of their shoes and their shoe was patented in 1974. In 1972, Nike signed their first
athlete. Later in 1984, Nike signed Michael Jordan, who would later have a Nike line of apparel
and shoes named after him. Nike launched their first “Just Do It” campaign in 1988, which would
go onto become one of their most well-known slogans. Nike went on to sign with major
American leagues; the National Football League (NFL) in 2012 and National Basketball
Association (NBA) in 2015.

Place in Industry: In 2016, approximately 68% of Foot Locker’s inventory came from Nike. In
addition, Nike’s market share was 44% of the athletic shoes market and 9.5% of the athletic
clothing market. Nike has a brand value of over $28 billion USD worldwide and a revenue of $36
billion USD. The company has seen almost consistent growth in the United States over the past
ten years. The company has a target of $50 billion USD for 2020.

SWOT Analysis

Strengths
• Strong Brand Image: Everyone knows Nike and what the Nike check represents
• Innovative: Constantly using new technology to stay ahead of the competition
• Leading Brand in Industry: Nike is consistently the leading brand in sports and athletic apparel

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• Multi-Channel Retailing: Nike does a good job at having advertisement almost everywhere you
look for athletic apparel
Weaknesses
• Labor Controversies, such as Gender Discrimination: Nike has had struggled to maintain its
ethics over the years with work labor and gender discrimination
• Dependence on Independent Contract Manufacturers: Nike depends on independent contract
manufacturers to produce their products instead of working with bigger, easier to access
companies
Opportunities
• New Markets: integrating with new markets can help Nike maintain its status at the top
• Improve Product Mix & Product Assortment: Nike does a good job at have a mix of items for
customers to choose from
• Increased Interest for Athleisure Apparel: Nike continues to advertise their athleisure apparel
on all platforms
Threats
• Competition: As time goes on Nike must make sure their product is trending in order to
compete with up and coming companies
• Imitations in the Market: the industry of athletic apparel and shoes is a copycat industry, it is
important for Nike to create fresh, new products
• Counterfeit Products: it is becoming easier for people to purchase counterfeit product thus
taking away sales for Nike

Key Communication Problems

SWOT Insights: Nike would benefit from continuing to utilize multi-channel retailing because
we live in a world where every consumer desires to shop in certain ways, and consumers are
utilizing social media now more than ever. Nike’s gender discrimination lawsuit is a weakness
that could cause consumers to view the brand in a different, negative light. Addressing any
gender discrimination is necessary in current political and social conditions. Nike would benefit
from increasing its product mix because sometimes brands that focus on one particular clothing
style can fall into a cycle of repetition of items. They would also benefit from expanding their
target markets. Nike’s biggest threat is the intense competition they face, because “athleisure”
clothing is highly desired by consumers, multiple brands are tapping into this segment. People
today also value a healthy lifestyle, causing more brands to tap into the athletic apparel industry.

Other Key Insights: Nike is a well-known brand with the highest market share in the world and
the U.S. market at 2.8% and 9.5% respectively. The brand value of Nike is valued at over $28
billion USD. In addition to being well-known and having a high market share in a competitive
market, Nike has had the “Just Do It” Campaign since 1988. This is one of Nike’s well-known
slogans and has a strong brand association with it

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3.0 Key Strategic Campaign Decisions
3.1 Objectives
Objective 1: Create awareness and hype by selling out monthly exclusive Snapchat
merch drops with a limited quantity of 1000 per item.

Description and Rationale: Merch drops have become a massively successful way of creating
hype and getting sales in the digital age. Snapchat is one of the most popular social media
platforms among teenagers and young adults and it is easy for companies to reach users.
Snapchat would gladly work with New Balance on a collaboration like this because it is unique
and will draw a lot of attention to both Snapchat and New Balance. The exclusivity of the drop
would bring a lot of attention towards it and should help it sell out fast.

Intended Outcome: While these merch drops will bring in some revenue, it has a much larger
effect. When people hear the words “limited” and “exclusive” it creates a lot of hype around the
products and by doing this more people will talk about New Balance which will generate
awareness for the brand especially in the target audience which is a demographic that does not
think about New Balance much.

Target Audience: Mainly teenage boys/young men approximately ages 14-24. It is a target
audience that New Balance should shift to because that demographic is the main consumer in
the athletic apparel industry.

Time Period: Start creating hype around the first drop immediately and plan to drop the first
one in three months and then consistently drop them monthly.

Objective 2: Reach 8 million organic Instagram followers within a year by creating trendy
and relevant content.

Description and Rationale: One objective for New Balance is to reach 8 million Instagram
followers within a year by creating trendy and relevant content. New Balance has a strong brand
name as the “dad shoe”, so we would like to try and appeal to a younger audience, such as
ages 14-24. One of the main platforms of social media for this new target age group is
Instagram. Right now, New Balance has a total of 6.2 million followers, so an increase of 1.8
million by the end of the year seems doable by creating content that may involve
advertisements with our intended age group of 14-24 year old. It is important for us to reach this
goal because New Balance has a strong market of 40+ year old’s, so by creating a comeback
and popular shoe for a younger generation while maintaining our original market of an older
generation will help to capture a larger part of the market and increase overall standing for New
Balance among other competing brands.

Intended Outcome: Our intended outcome is to create a comeback with New Balance and
create a popular shoe for younger generations while maintaining our original market of an older
generation. This will help capture a larger part of the market and increase overall standing for
New Balance among other competing brands

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Target Audience: We would like to try and appeal to a younger audience, such as ages 14-24.

Time Period: The time period to increase awareness of New Balance will be within 1 year.
Currently, New Balance has a following of 6.2 million, so an increase of 1.8 million within a year
seems very doable.

Objective 3: Increase awareness of customizable shoes within the 14-24 year old
demographic via sponsored TikToks through top athletes and influencers.

Description and Rationale: With the rise of social media certain apps have taken over the
millennial generation and consumes all of their attention, one of those apps being TikTok. New
Balance can use this viral app to its advantage by partnering with top athletes, like Pittsburgh
Steelers wide receiver Juju Smith-Schuster, and other TikTok influencers to be ambassadors for
the brand. While retaining these notable people as ambassadors, they can promote the
customization of New Balance shoes, a function many people are unaware of, as well as wear
their own custom pieces to show off the different style of shoes you can create with New
Balance. By doing this, we expect New Balance’s online customization to increase substantially,
at least 30%, as the main audience on TikTok ranges from age 14-24.

Intended Outcome: The intended outcome of this is to establish a fan base on TikTok with our
ambassadors. The more TikToks they post, the more views they receive. The more views they
receive, the more traffic New Balance will gain, thus helping them increase their customization
sales.

Target Audience: We would like to appeal to the age demographic that has the heaviest traffic
on TikTok, which is 14-24 year olds.

Time Period: The time period to increase customs shoe production through TikTok promotion
would be aimed at one calendar year.

Objective 4: Increase awareness of sponsored athletes and awareness in young athletes

by hosting at least 10,000 12-18 year olds in New Balance sponsored basketball and
football camps with newly signed athletes Jimmy Butler and Christian McCaffery.

Description and Rationale: Once New Balance has signed two popular athletes: Christian
McCaffery and Jimmy Butler, they need to use them to directly influence younger consumers.
An easy way to build loyalty is direct interaction via New Balance sponsored basketball and
football camps that are hosted by the athletes. All of the shoes, shirts and other gear are all
New Balance.

Intended Outcome: Gain name recognition and initial brand loyalty with the 12-18 year old
demo via fun and memorable experiences with the brand. Children’s opinions are shaped early
on so if New Balance can provide them with a great experience with the brand, they will be
more likely to continue buying the brand and influencing their friends to do the same

Target Audience: The target audience is the younger 12-18 year old athletes who play
basketball and football.

Time Period: We would like to do this over one summer when children are free from school
and our athletes have an off-season.

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Objective 5: Maintain 90 percent of core sales from current 40+ year old demographic,
while shifting to a younger audience.

Description and Rationale: The objective I picked for the new balance is appropriate for the
company because it fits a bias that the new balance has been successful with but also has hurt
the company. Throughout their existence new balance has been known for having a lot of older
customers. The last couple years they have started marketing to a younger generation and it is
working a little bit, but can they still maintain their sales from the older group. · Intended

Outcome: The overall objective is to maintain the sales that new balance generates from
customers of 40 and older, but also grow the business with the younger generation. I think
gradually marketing to younger groups will help keep prior customers, continue making new
models of gear and shoes while keeping casual products that have been successful sellers. ·

Target Audience: I think a big target audience would be aged 12-25 while continuing their
audience of 40 plus. New balance has been doing a good job marketing to high school and
young adults within the last few years by getting more modern looking shoes and products.

Time Period: New balance has already started gaining more attention from the younger
audience and new target market. I would say in 10 years they have the potential to gain many
customers and create a modern and hip company that people want to support. Continue
marketing to the target audience and they will gain many customers.

3.2 Target Audiences

3.2.1 Target Audience Group 1 Name: Hypebeast Henry
A group of mainly 16-24 year olds that are constantly looking for brands with hype to
wear and resell. They primarily wear the brand to flex and show it off and oftentimes they will
resell products online to profit off of.

Target Profile for Group 1:

Name/ Photo Hypebeast Henry

16
Role These consumers will be the first to purchase the
new products and create a lot of hype and demand
around the brand and its products.

Goals Their goals are to have the most exclusive clothing

possible and to show it off as much as they can.
Reaching this market creates a great opportunity
for brand awareness.

Challenges/ Pain Fitting the needs of style, exclusivity, and most

Points importantly hype around each product. This group
is very particular with what products they will buy
and wear.

Watering Holes This group can often be found online through resell
websites like StockX and eBay as well as on many
social networks especially Twitter and Instagram.

Shopping Preferences This group is almost exclusively online but will do

whatever it takes to get the products they want so
they are willing to go to stores when necessary.

3.2.2 Target Audience Group 2 Name: Middle-age Marvin

The “dad” group of roughly 40+ year olds that are currently the main consumer of New
Balance. This group is easy to please and just like simple designs.

Target Profile for Group 2:

17
Name/ Photo Middle-age Marvin

Role This group really does not care much about what
is in style. They want something relatively plain,
cheap, durable, and comfortable. They have been
New Balance’s main customers in recent years.

Goals To find something that fits their basic needs at an

affordable price.

Challenges/ Pain Because they do not care about any extra luxuries,
Points New Balance needs to continue to prove to them
that they can still fit their wants and needs while
switching to a completely different demographic.

Watering Holes Typically they will see each other at family events
or events for their kids. They are very community-
based and oftentimes social.

Shopping Preferences Usually in stores because they can try on the

clothes and shoes to make sure they are
comfortable and it is a good excuse to “get out of
the house”. They will purchase online if it is
convenient.

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3.2.3 Target Audience Group 3 Name: Casual Clark
This group consists of mainly 10-18 year old athletes who just want stylish and
comfortable athletic clothes. They are relatively easy to please and are not extremely particular,
however they will mainly only purchase whatever style is relevant.

Target Profile for Group 3:

Name/ Photo Casual Clark

Role These consumers just want something that is

comfortable and is in style. This group is extremely
large and can make a real difference in the
company’s fortunes.

Goals Wear something that they like the style of that is

comfortable and they can wear all day and be
active in.

Challenges/ Pain This group does not necessarily have the final say
Points in what they buy because their parents typically
purchase their clothes and shoes for them.

Watering Holes They see each other at school and at their sporting
events.

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 Shopping Preferences Whatever is more convenient. Oftentimes they do
not want to run errands with their parents so online
shopping is common.

3.3 Brand Positioning Strategy

Brand positioning is key in this plan for New Balance. While it is currently positioned as
being a plain brand or a “dad brand”, a key part of this plan is to make it feel like a more stylish
and hypeworthy brand. Having the exclusive Snapchat collection drops and becoming more
popular in the eyes of hypebeasts will create a distinction between itself and other athletic
brands. The significance in the marketplace will be that it adds competition to its competitors
where they previously did not feel threatened. By working with Snapchat it will forever change
the market as a pioneer of Snapchat sales which will follow the proven model of Instagram’s
shop to surely be successful. Overall the positioning for this plan is one of the most important
parts of bringing New Balance to the top.

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4.0 Marcom Mix
SWOT Analysis Chart
The Organization
New Balance
O- Opportunities
1. Consumers that invest in
apparel that will last longer
and are high quality will
enjoy New Balance's
customizable shoes.
2.They are starting a
rebrand and could become
hip with a younger
generation like Champion
did recently.
3. Kawhi Leonard is a
brand ambassador, who is
very well known and has a
large following.
S- Strengths
1. They have over a century
of industry expertise.
2. They are known for
having and focusing on
comfortable products.
3. They use an
environmentally friendly
manufacturing process.
SO Strategies
1. Promote the quality and
comfort of the brand to
show the value of the
products.
2. Publicize how
environmentally friendly the
process is.
3. Build off of Kawhi
Leonard’s unique status.
=attacking strategy
W-Weaknesses
1. It is heavily
overshadowed and an often
forgotten brand in the
athletic apparel industry.
2. They have a reputation
of having dull and
unfashionable apparel.
3. They manufacture in the
United States, which is
expensive.
WO Strategies
1. Become more
recognizable to stand out
against other competitive
brands.
2. Rebrand in a way that
can make the products and
designs more exciting.
3. Keep making high quality
products that make
expensive manufacturing
worth the cost and use the
local manufacturing as a
way to build a better
community relationship.
=building strengths for
attacking strategy
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 T-Threats ST Strategies WT Strategies

1. Their competitors have
much more popular styles.
2. It will be difficult to
maintain their current
demographic while
switching to a younger
demographic.
3. Aside from Kawhi
Leonard, no major athletes
have deals with them, most
are already signed with
competitors.
1. With over a century worth
of expertise, create new
designs that can compete
with competitors' more
popular styles.
2. While shifting to a newer
demographic, continue to
focus on comfort to keep
the current demographic
satisfied.
3. Add more athletes to
become partners with New
Balance.
=defensive strategy
1. Start standing out more
than the competitors who
are more popular.
2. Find a way to promote
the “dad style” that the
current demographic likes
in a way that can gain
younger consumers’
attention.
3. Work to improve all
facets of the company.
=building strengths for
defensive strategy

4.1 Platforms and Objectives

IMC Areas

Advertising – It is very important for New Balance to get out of the shadows. They need to
advertise better and make themselves well known especially in the younger demographic. The
best way to accomplish this in the digital age is by gaining a large social media presence.

Public Relations – Support the community and social justice issues. Currently a lot of
companies have been very successful by opening up and making sure they have a positive
impact on the community.

Consumer Sales Promotion – Make the products worth hyping over so younger people have
interest in the products, especially if they are exclusive or are attached to an athlete or event.

Trade Sales Promotion – They have been in the industry for over a century so utilizing that
knowledge from the past to figure what works could really help them make a name for
themselves.

Point of Purchase – Improve the designs to be more desirable so when consumers are looking
at their products next to the competitors at the store, they decide to go with New Balance
because currently their designs are far less exciting than competitors.

Direct Marketing – Reach out to consumers to make sure their needs are met and do
everything New Balance can to create good products.

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Sponsorship and Events – This is a very important element for them. If they can work with top
athletes and have them come to events like they currently do with Kawhi Leonard, this can draw
a lot of additional attention to the brand.

Packaging – Having throwback style or more exciting packaging that makes the product more
desirable could go a long way in attracting customers at the selling point.

Specialties – Currently they’re known for being a “dad brand”, if they can find a way to
specialize in a more hypebeast version of athletic apparel similar to what Champion did then
they could specialize in a demographic that will make more purchases.

Guerilla Marketing – Getting involved with communities through youth sports or community
events could help people feel more included and impacted by the company.

Customer Service – Help out customers as much as possible and as quickly as possible to
create trust and give customers a positive experience. This can turn into word of mouth
advertising really quickly if this process goes well.

Platforms

Social Media – Instagram, Twitter, Facebook, Snapchat, and TikTok are all currently great
ways to promote products. The large amount of usage for each one among many different
audiences is a great way to connect to consumers and to continue to reach them.

Television – TV ads are still an effective way to reach audiences, but television can go further
than just commercials. Getting deals with movies to wear New Balance in scenes is an effective
way to constantly remind viewers of the company. They can also partner with sports channels or
leagues to get mentioned during broadcasts of games.

Websites – Forums and articles are pretty popular so essentially this is word of mouth but if
New Balance creates positive experiences for their customers then they will get talked about in
a positive manner online and will get good attention.

4.2 Synergy

Target Profile: Target Profile: Target Profile:

Hypebeast Middle-age Casual Clark

Henry (16-24 Marvin (40+ year (10-18 year old
year old looking old that is the who just wants
for brands with current main stylish and
hype to wear consumer of comfortable
and resell) New Balance) athletic clothes)

Objective 1: 1. Social media 1. Social media 1. Television

pages that discuss groups (mainly wearing the
Create awareness upcoming releases Facebook) to products (could be

23
and hype by selling 2. Websites for share experiences through subliminal
out monthly reselling and with brand and messaging)
Snapchat exclusive valuing the their products
merch drops with exclusive products 2.Social media
extremely limited 2. Billboards in showing peers
quantities of 1,000 3. Snapchat stories major cities wearing products
per items. to show off the becoming aware
products of the brand more 3. YouTube videos
displaying
4. Photo sharing 3. Television ads products
websites/apps showing the
showing people products 4. Snapchat
wearing the stories of the
products 4. Online reviews merch drops to
showing customer connect with
5. Online forums feedback friends and remind
discussing hype of them about the
items 5. Word of mouth products
from friends,
coworkers, or 5. Magazine ads
neighbors in sports
magazines
showing athletes
wearing the brand

Objective 2: 1. Social Media: 1. TV ads 1. Instagram,

Instagram, Snapchat, Twitter
Reach 8 million Facebook, Twitter 2. Email marketing
Instagram followers 2. Streaming Ads:
within a year by 2. TV ads 3. Blogging Netflix, Hulu, HBO
creating trendy and
relevant content 3.Networking/word 4. Radio 3. Blogging
of mouth
5. Print advertising 4. Spotify
4. Email marketing
5. Digital
5. Digital advertising
Advertising

Objective 3: 1. Top athletes will

This target 1. Influencers will
promote custom audience will not promote new
Increase shoes which adds be targeted for this products
awareness of to hype specific objective
customizable since they are most 2. Promoted trends
shoes within the 2. Forums websites likely not on TikTok will be created to
10-24 year old can help drive and are not create interaction

24
demographic via discussions about interested in and engagement
sponsored TikToks the shoes customizable
through top shoes. 3. Contests for a
athletes and 3. Word of mouth free customized
influencers. pair will create
attention

Objective 4: 1.Promotion of 1.Promote spots to 1.Encourage local

camp in schools parents via local participation by
Increase through posters radio and take recruiting through
awareness of and brochures in home brochures the school sports
sponsored athletes area teams
and awareness in 2. Local television
young athletes by 2. Feature athletes ads featuring the 2. Students can
hosting at least wearing gear in sponsored athletes win spots by
10,000 12-18 year instagram stories sharing posts and
olds in New and posts 3. Sign up tables at #’s
Balance sponsored local games with
basketball and 3. Send New New Balance reps 3. Facebook and
football camps with Balance reps to Instagram pages
newly signed local games to created directly for
athletes Jimmy hand out merch the camps w/ the
Butler and athletes
Christian
McCaffery.

Objective 5: 1.Social media 1.Contiue with 1.Ads sent to

posts, instagram marketing strategy parents with
Maintain 90 twitter. for this age. products for middle
percent of core aged teens.
sales from the 2. New marketing 2.Tv ads
current 40+ year for a younger 2. Instagram posts
old demographic, generation. 3. Show classic showing kids in
while shifting to a shoes in schools wearing
younger audience. 3. Celebrity advertisements new balance.
endorsements
4. Use tv and 3. Ads through
4. Youtube ads magazines for 40+ video games
showing simple
5. Twitter ads products. 4. Text message
alerts with promos
5. Endorse new
products that lean 5. Digital/media
off the classic marketing
items.

25
26
5.0 Message Strategy
The plan is to continue making high end performing products that are comfortable and
affordable for anybody while changing our focus to younger athletes. We are looking to promote
New Balance as a durable, more customized sportswear option while bringing on premier NBA
and NFL athletes for exposure. We want to continue giving our older loyal customers the
products they like and continue to buy, while also providing the younger generation new and
innovative products that will make the company grow. We will also shift heavy spending to
social media platforms like Instagram and Snapchat to reach the younger demo. Also give our
customers great online accessibility that is easy to use and find products that really fit their
needs.

5.1 Key Consumer and Brand Relationship Insights

The key consumers are athletes, fitness enthusiasts, and basically anybody from youth, young
adults, adults and seniors. We offer very comfortable and affordable shoes and hope to expand
into regular sportswear that becomes trendy like Champion did. Anybody who needs comfort or
high end performing products we can come and provide. Nike and Adidas are far and away
number one and two for sales so our goal is to achieve number three and carve a comfortable
margin with our new direction.

5.2 Message Direction

We want to use Brand Image and Resonance messaging for most of our messaging. Therefore,
our messages will rely heavily on our brand ambassadors like Kawhi Leonard, Christian
McCaffery and Jimmy Butler to promote our products. Tying an ‘old man’ brand to these high
profile, all-star athletes will immediately elevate our image. Also, the push of these images onto
social media platforms while directly targeting young athletes will raise brand awareness in that
generation. We are not providing regular sportswear, we are providing sportswear that will last,
looks trendy and is quality backed.

5.3 Strategic Consistency

Our messaging will heavily focus on the quality of our products and the testimonials/images of
the athletes using them. Our slogan will be “Quality: You”. This slogan across all our messages
means that we are putting out a product that isn’t defined by a brand image because you are the
athlete, you are the one creating your own legacy. The quality of our products will hold, you
need to match that quality with your play. We feel this will work well with all of our demographics
and keep the brand quality aspect while turning more attention to the consumer.

6.0 IMC Media and Contact Points

6.1 Multimedia, Multichannel, Multiplatform

27
Social Media Platforms

Rationale- This type of communication can be used to reach a large audience. Anyone
who is part of a social media platform will be reached thus having more people view New
Balance merchandise. With so many different social media platforms, such as Facebook,
Snapchat, Instagram, Twitter, and TikTok, the amount of people who can be reached is
limitless.

Campaign Details- New Balance will be running advertisements on all social media
platforms. As well as having advertisements running, New Balance will also partner with
athletes and social media influencers to become ambassadors. In order to be an ambassador
for New Balance, they would have to promote New Balance shoes and apparel as well as
attend events and post about them. While retaining these ambassadors, New Balance will have
the opportunity to reach millions of people through the various platforms in order to generate
more business.

Target Audience: The target audience would be people from the age of 13-30, as well
as anyone else who uses social media applications.

Objective: The objective here is to increase online traffic by 20%.

Mobile App

Rationale- The mobile app can be installed by anyone with an smartphone making it
easier for people to shop the New Balance catalog, as well as notifying users about deals and
new apparel. With the rise of active phone users and majority of phone users owning
smartphones, downloading the mobile app would be easy to install because it’s free.

Campaign Details- In order to get more people active on the New Balance mobile app,
New Balance must promote how easy the app is to navigate. Selling how easy it is to use really
helps the age demographic we are targeting get on board with online shopping. While showing
off the easy navigation, New Balance can also show off other features within the app that
consumers are unaware of. This is a great way for New Balance to improve its online traffic.

Target Audience: The target audience will be people between the age of 18-35.

Objective: The objective here will be to increase online orders by 25%.

Email Marketing

Rationale- For people who work more than use their phones, email marketing will send
deal promotions and recent catalogs to those who use their email frequently. It can be difficult to
commit going to stores when you have a heavy workload, so reaching people via email fits into
their daily regimen without disrupting their work flow.

Campaign Details- In order for email marketing to work, New Balance must be aware of
spamming. If New Balance is spamming every email account they have enlisted, they will
quickly lose those customers that they enrolled. For their email marketing to be successful, New
Balance must only email customers when they are having major sales or when new products
are being released. By doing this, they limit the amount of emails they send while also providing

28
only important information in the emails they are sending. For people who communicate solely
through email, this will help keep their inbox organized.

Target Audience: The target audience will be people between the age of 22-45.

Objective: The objective here is to increase online and in person sales by 15%.

Word of Mouth

Rationale- This being the most traditional form of communication and promotion, word
of mouth travels fast. If one person has a good experience with a product they will tell someone
they know to try it and the pattern repeats itself. If New Balance could retain good word of
mouth from its consumers, the word will travel fast and bring in more customers.

Campaign Details- In order for New Balance to have good word of mouth they must first
host some type of event that would draw people in. After the event, New Balance should then
hold a survey to ask how satisfied they were with the event. After seeing the results, New
Balance will then know the type of message being spread via word of mouth. If the event was a
success, then word of mouth will get around and New Balance will benefit from it. The same can
also be said if the event were to go poorly.

Target Audience: The target audience will be people between the ages of 25-45.

Objective: The objective here is to increase all sales by 20%.

Commercials

Rationale- For the people who love watching television, New Balance can insert
themselves by air commercials on major television networks to reach a different audience. No
matter if you are watching television by yourself or watching it with family, having commercials
aired will force those viewers to tune into what New Balance is up to while they wait for their
show to resume.

Campaign Details- Within these commercials, New Balance can include all their major
athletes they partner with in order to grasp the attention of the viewers. New Balance has been
running a commercial that stars their most notable athlete, Kawhi Lenord, in New Balance gear
and shoes. If New Balance can continue to build their catalog of athletes, it will draw the
attention of viewers and possibly lead them into searching for New Balance online or visiting
stores.

Target Audience: The target audience will be people from the age of 30-50.

Objective: The objective here is to increase foot traffic in stores by 20%.

6.2 Contact Points, Touchpoints and Critical Touchpoints

Contact Points- Facebook, Twitter, Instagram, Billboards, Word of Mouth

Touchpoints- Sponsors, Ambassadors, Events, Press Releases

29
Critical Touchpoints- Supporting trending topics going on in the world, Ethics of
the company, recent news on the company

30
Conclusion
In this plan, New Balance will boost itself towards the top of the athletic shoes and
apparel industry. Through fresh marketing campaigns, the brand will have a significant
movement to appeal to a younger demographic, while also retaining their current
customers.

The plan includes five stated objectives that will give New Balance a unique edge on the
rest of the industry. The first objective is to create awareness and hype by selling out
monthly exclusive Snapchat merch drops with a limited quantity of 1000 per item. The
second objective is to reach 8 million organic Instagram followers within a year by
creating trendy and relevant content. The next objective is to increase awareness of
customizable shoes within the 14-24 year old demographic via sponsored TikToks
through top athletes and influencers. Another objective is to increase awareness of
sponsored athletes and awareness in young athletes by hosting at least 10,000 12-18
year olds in New Balance sponsored basketball and football camps with newly signed
athletes Jimmy Butler and Christian McCaffery. And the final objective is to maintain 90
percent of core sales from the current 40+ year old demographic, while shifting to a
younger audience.

With these distinct and achievable objectives, New Balance will be seen as a much more
desirable brand to many younger consumers, while also becoming more of a stylish
brand for fashion gurus.

These objectives will be achieved through an improved message strategy that will help
gain the attention of consumers not currently interested in New Balance that would like
the changes the brand will make. Another very important factor to achieve these
objectives is the contact points. In order to reach the target audience, it is very important
to find them in the proper contact point. After doing research, the plan includes contact
points that will help reach both the younger audience and will continue to reach the
current customer base.

Moving forward with the plan, the next step is for the brand to restyle the designs in
order to appeal to a broader audience, while also making sure to keep the options of the
current simplistic feel for current customers who do not necessarily care about the
change in design. Once that is done, the brand is ready for a big relaunch that will grab
the attention of many people as long as it sticks to the plan.

31
Appendices
All necessary and important data is noted within their respective sections. For specific
information on any of the sections please refer to the table of contents to find the appropriate
section that fits the information needed.

https://www.statista.com/statistics/254489/total-revenue-of-the-global-sports-apparel-market/

*Note that the original link the group found for industry data is no longer part of the link and the
group was not able to access the graphic to add to this section. We could not find the graphic
that was part of the original link, but our statistics are accurate.

All creative executions are written in detail in their respective sections.

32
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33