VANS: SKATING ON AIR

How has Van’s competitive position

and value proposition changed over time?

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Key Characteristics of Vans’ Earliest Customers in the 1960s And 1970s
In the 1960s and 1970s, Vans' earliest customers were surfers who were in need of shoes that
could withstand the harsh conditions of the beach and provide good traction on their boards. The
brand's shoes were also affordable and could be customized to fit the surfer's preferences.

In addition to surfers, Vans also appealed to kids who were looking for stylish and durable shoes
that could keep up with their active lifestyles. The brand's shoes were able to withstand the wear
and tear of everyday activities, making them a popular choice among kids and their parents
(Henderson, 2018).

Furthermore, Vans was able to cater to "hard-to-fit customers" who required nonstandard sizes
and widths, ensuring that everyone could find a shoe that fit them comfortably.

Skateboarders also became fans of Vans shoes due to their ability to provide a good grip on the
skateboard and their affordability. As the sport of skateboarding grew in popularity, Vans
became synonymous with the skateboarding culture and became the shoe of choice for many
skateboarders.

Overall, Vans' earliest customers were individuals who valued durability, affordability, and
customization in their footwear, whether they were surfers, kids, hard-to-fit customers, or
skateboarders.

The Public Perception of Skateboarding During This Era

During this era, skateboarding was not yet widely accepted as a legitimate sport, and the public
perception of it was often negative. However, with the rise of popular skateboarders such as the
Z-boys in the 1970s, skateboarding began to gain mainstream acceptance, and the sport started to
become more popular (History of Vans, 2022). The emergence of skateboarding magazines and
the opening of numerous skateparks throughout North America also contributed to its growing
popularity.

Competitive Advantage in Early Days – Value Proposition to Customers

During its early days in the 1960s and 70s, Vans' competitive advantage was its in-house
manufacturing process that allowed for a fast cycle time of just 19 days from order receipt to
completion of finished goods (Henderson, 2019). This gave the company an advantage over
other footwear manufacturers who often struggled with inventory problems. Additionally, Vans'
high level of shoe customization helped to minimize the need for excess inventory.

Vans' value proposition to customers was centered around the durability and affordability of their
shoes. Their shoes were built to last, with a rubber sole reinforced with clay that was twice as
thick as those produced by their competitors. The shoes were also washable, making them ideal
for activities like surfing and skateboarding where shoes are often exposed to dirt and sand. With
a price range of $2.49 to $4.99 per pair, Vans' shoes were seen as an affordable option for
customers who wanted durable footwear that could withstand the rigors of their active lifestyles
(Kim and Mauborgne, 1999).

Impact of Vans' Expansion on Customer Base, Brand Image, and Alternative

Sports Category

Over the years, Vans has made several strategic decisions that have impacted its customer base,
brand image, and the overall alternative sports category.

I. Increased Affiliation with Sports

Vans has expanded its affiliation with a variety of sports beyond just skateboarding. The
company now sponsors athletes in sports such as snowboarding, surfing, BMX, and motocross.
This has helped Vans to broaden its appeal and reach new customer segments who are passionate
about these sports (Thompson, 1997).

a) Impact on Vans' customer base: Vans' increased affiliation with multiple sports has helped the
brand to reach a wider audience and attract new customers who are passionate about these sports.

b) Impact on Vans' brand image: Vans' affiliation with multiple sports has strengthened the
brand's image as an inclusive and diverse sports brand that is dedicated to supporting athletes in a
variety of sports.

c) Impact on the alternative sports category: Vans' affiliation with multiple sports has helped to
expand the alternative sports category by bringing more visibility and attention to these sports.

II. Diversified Product Portfolio

Vans has diversified its product portfolio beyond just shoes to include clothing, accessories, and
even home goods. This has allowed Vans to offer a wider range of products to its customers and
increase brand loyalty.

a) Impact on Vans' customer base: Vans' diversified product portfolio has helped the brand to
attract new customers who are interested in buying clothing, accessories, and home goods in
addition to shoes (Thompson, 1997).

b) Impact on Vans' brand image: Vans' diversified product portfolio has helped to strengthen the
brand's image as a lifestyle brand that is dedicated to providing its customers with a wide range
of products that fit their active and adventurous lifestyles.

c) Impact on the alternative sports category: Vans' diversified product portfolio has helped to
expand the alternative sports category by offering customers a wider range of products that are
designed for active and adventurous lifestyles.
III. Expanded Distribution

Vans has expanded its distribution channels beyond just physical retail stores to include e-
commerce and partnerships with other retailers (Thompson, 1997). This has helped Vans to
reach new customers and increase brand awareness.

a) Impact on Vans' customer base: Vans' expanded distribution channels have made it easier for
customers to purchase Vans products, which has helped to attract new customers who may not
have been able to access the brand's products before.

b) Impact on Vans' brand image: Vans' expanded distribution channels have helped to strengthen
the brand's image as a widely recognized and accessible brand that is committed to providing its
customers with easy access to its products.

c) Impact on the alternative sports category: Vans' expanded distribution channels have helped to
expand the alternative sports category by making it easier for customers to access products that
are designed for active and adventurous lifestyles.

IV. Broadened Promotional Mix

Vans has broadened its promotional mix to include collaborations with other brands, events, and
social media campaigns. This has helped Vans to increase brand awareness and appeal to a wider
audience.

a) Impact on Vans' customer base: Vans' broadened promotional mix has helped to attract new
customers who are interested in collaborations, events, and social media campaigns.

b) Impact on Vans' brand image: Vans' broadened promotional mix has helped to strengthen the
brand's image as an innovative and forward-thinking brand that is committed to staying current
and relevant.

c) Impact on the alternative sports category: Vans' broadened promotional mix has helped to
expand the alternative sports category by bringing more attention and exposure to these sports
through collaborations, events, and social media campaigns.

Recommendations for Vans: Diversify Product Line and Explore

Entertainment Industry

Vans operates within a highly specialized and less competitive niche market in the shoe industry.
However, to maintain its market position and capitalize on its brand reputation for producing
durable shoes, the company should focus on diversifying its product line with new and long-
lasting outdoor shoe styles. This could also extend to include women's sandals marketed as both
"cool" and durable.
Furthermore, Vans should explore expanding its reach into the entertainment category,
specifically the growing gaming industry which surpasses both the movie and music industries
combined. While creating a new video game would pose significant risk and competition, Vans
can leverage its established brand identity as a lifestyle brand associated with alternative sports
by sponsoring existing sports video games and gradually entering the market.

Vans: $1 Billion Brand

Vans should certainly consider aiming to become a $1 billion brand, but not at the expense of
compromising the core values and authenticity that have made the brand successful thus far.
While achieving this level of success would require significant investment and expansion, Vans
should prioritize staying true to its roots as an alternative sports lifestyle brand with a focus on
quality and durability (Vans – Our Story, 2022).

Furthermore, Vans should not rush into rapid expansion that could potentially dilute the brand
image or product quality. Instead, the company should focus on expanding its product line and
distribution channels strategically, while maintaining its reputation for producing high-quality,
durable shoes and apparel.

In summary, Vans should aim to become a $1 billion brand if it aligns with the company's long-
term goals and values, but not at the expense of sacrificing authenticity or quality.
References
Henderson, A. (2018). Vans: The first 50 years. Abrams.

History of Vans. (2022). Vans. Retrieved March 31, 2023, from

https://www.vans.com/article_detail/history.html.

Kim, W. C., & Mauborgne, R. A. (1999). Creating new market space. Harvard Business Review,
77(1), 83–93.

Thompson, C. J. (1997). Interpreting consumers: A hermeneutical framework for deriving

insights from the texts of consumers’ consumption stories. Journal of Marketing
Research, 34(4), 438–455.

Vans - Our Story. (2022). Vans. Retrieved March 31, 2023, from
https://www.vans.com/article_detail/our-story.html.