Marketing Strategies of New Balance

New Balance is one of the leading global athletic products company. They aim to produce superior footwear and athletic apparel for better performance. New Balance shoes are offered in six different widths intended to fit the feet better. The sizes range from small 2A to big 6E. New Balance has 18 different models to accommodate all kinds of shoe sizes. This shoe particularly fits the needs of athletes.

Marketing Strategies of New Balance

World-class athletes play a role in New Balance's aims. The marketing approach and relationship with athletes are particularly observable in their athlete's centers where design, development and testing of products are conducted based on athlete's special needs. Clearly, New Balance is bent on pursuing quality not just quantity. Their shoes are designed and built to fit and withstand the rigors of athletic training.

New Balance promotional efforts are geared towards races, teams, youth sports, tract and field and training programs instead of focusing on one particular sports talent. This is their way to provide support to grassroots athletics. New Balance also sponsors various charitable organizations and programs worldwide.

Global Presence

New Balance employs almost 2,800 people all over the world. Their products are distributed in 120 countries on six continents.

U.S. Manufacturing & Distribution

New Balance is remarkable in fact that it continued its manufacturing function in the United States (as of 2007) as well as in the United Kingdom for the European market unlike its competitors that outsourced its production to low-priced labor in Asian countries. New Balance owns and operates five factories in New England - three in Maine and two in Massachusetts as well as one in Flimby, England.

A seventh factory in CA, owned by one of foreign suppliers, makes New Balance footwear exclusively. It also maintains distribution facilities in Lawrence, MA and Ontario, CA. New Balance undergoes challenges in their decision to maintain domestic manufacturing. With higher costs for labor, they need to remain competitive in the face of still competition.

Their decision not to outsource to other places with cheaper labor is brought about by their need to ensure the best fitting, best performing shoes and apparel through better technology and production methods. It is also to ensure that the standards they uphold for the last 100 years in shoe manufacturing remain the same. New Balance continues to manufacture 25% percent of its shoes in the U.S. and increases the number of pairs produced each year.

They were able to achieve this feat by re-investing in the latest technologies and using lean manufacturing techniques. It is their priority commitment to maintain strong manufacturing base in the U.S. despite the odds. Their determination to do so makes New Balance truly remarkable.

How New Balance Can Increase Market Share: Business Strategies of New Balance

New Balance holds only 3-5% of the market share of the shoe industry. Nike leads the pack with 30.4%. Issues New Balance Need to Address

1. Outsourcing issues. With their major competitors outsourcing to other countries for production, New Balance needs to look into this issue and examine how it can incorporate this in their business strategy. Outsourcing need not be the way to go but they could, for instance, put up New Balance manufacturing plants in Asia which are intended mainly to cater exclusively to Asian customers.

2. "Endorsed By No One" philosophy is another issue which they could look into. Having no identifiable single representative of the product could be a disadvantage because Nike's popularity hinges on its being identified with the best athletes in the world.

3. Their share of the market. A mere 3-5% market share compared to Nike's 30.4% does not appear so impressive. They need to look into ways to increase the number of their customers.

How New Balance Could Increase Market Share

* Multinational customers could potentially increase their market share. In 1995, Nike's international operations accounted for 36.06 of its total sales. New Balance should recognize the fact that the demands from international markets will increase in future.

* The changing US demographics could also be a factor as there is a rising number of Hispanics, Asians, and African Americans. These groups have different shoe preferences that New Balance should be able to satisfy. New Balance should determine the next generation of loyal customers and provide for their needs.

* New Balance marketing efforts seemed focused on sports footwear or athletic lines. There are other venues that can be tapped for increased sales such as casual footwear, women's shoes and children's footwear.

* New Balance should improve their ways of conducting business online. The online market is huge. New Balance could tap into this huge source of customers. They must make their more user-friendly to attract more visitors. More visitors often translate to more sales. Their website should also be more interactive and allow customers to have their say with regards to the shoes, designs and other matters.

* New Balance should also conduct surveys on their customers to know what they really want. Trends and styles change often.

* New Balance could introduce a Loyal Customer Program just like their Nike counterpart. In this program, points are added to an account after a purchase. The points would vary depending on the amount of the purchase. New Balance allows customers to buy products through the points the customers are able to accumulate.

New Balance may not hold the lion share of the shoe industry but it certainly has a lot of potentials. Being one of the more established companies in the footwear industry, New Balance certainly offers a lot of value to the customers.