ASICS: Chasing a 2020 Vision- Case Write Up

Rallapalli Vishal Vijay PGP10239

Summary:
Motoi Oyama was the President and CEO of a major sporting goods manufacturer ASICS. The company
had acquired FitnessKeeper Inc. which operated fitness tracking app RunKeeper. ASICS had planned
to grow from a 428 billion yen to a 750 billion yen company by 2020. The brand was most successful
among serious runners or full marathon runners who appreciated high quality and functionality. The
core customer base was decreasing and 5K and 10K marathon “fun” runners seemed as a promising
growing segment. The typical ASICS shoes ranged from $150-$200 but planned to introduce more
stylish shoes with different designs at lower price points. Grabbing the number 3 position in the market
segment dominated by Nike and Adidas was one of the major goals. Online sales formed 17% of the
total sales for the company and it planned to increase its sales through the Direct To Customer approach.
The company also ranked the lowest in terms of apparel sales than its competitors. Promotional efforts
of the company was heavily inclined to partnership in marathon events. It operated three brand
portfolios: ASICS, Onitsuka Tigers, and ASICS Tigers. It also planned to be a Gold Partner in Tokyo
Olympics.
Problem Statement:
ASICS has a financial target to achieve 750 billion in yen sales as a part of AGP 2020. Oyama had three
key strategic plans in the AGP2020 and had to integrate the plans to achieve the goal set as a part of
AGP 2020. A shift to a Direct To Consumer approach, expanding to a larger consumer base and
communication as a consistent brand. Added to this was the acquisition of RunKeeper platform and the
usage of this platform in order to execute the key strategic plans.
Recommendations:
1. Incorporation of CRA (customer return on assets model) to gauge the profitability among the
existing retailers and see which of them have been the most profitable. The least profitable
accounts can be dropped
2. Expansion into the fun shoes segment as the traditional performance shoes segment for skilled
marathon runners and communication as a consistent brand should go hand in hand.
With ASICS Tigers they have the expertise for cool designs but revamping the brand under the
umbrella ASICS brand with the consistent logo usage will align with the prospect of
communication as a consistent brand
3. Data points relevant to revenues and returns through brand for all 3 brand associations of ASICS
should be considered to take decision on dropping ASICS Tiger brand or revamping the brand
under the umbrella ASCIS brand
4. Consistent open end tagline of “Running- A Way of Life” should be incorporated as consistent
different interpretations of the different customer segments
5. For the strategy plan of DTC efforts to reach consumers through the RunKeeper app and
redesigning the RunKeeper app to include the MyASICS app features and giving the customer
more power to choose the type of coaching with a push marketing for value added services will
help in the DTC efforts of ASICS
6. Usage of its heritage being a Japanese company for “technology driven customer satisfaction
shoe company” will further help in enhancing the brand awareness
7. Gradual transition of dropping from low profitable retail stores to DTC approach and shift in
the customer base should happen simultaneously