Unit 4 application

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Who are the big 5 of athletic shoes?
Nike, Adidas, Puma, New Balance and Reebok
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How much of the global market share doe the big 5 own?
70%
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What percentage of the glbal market share do the big 5 own each?
Nike: 31% Adidas: 16% Puma: 7% New Balance: 6% Reebok: 6%
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Why do people buy athletic shoes?
performance, colour, style, price, comfort & durability
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Why does it appear that the global market for footwear will continue to grow?
More people are running, according to Sport England over 2 mill people run every week and it is increasing, in 2014 250,000 more people ran than regularly than in 2010
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What other shoe company does Nike own?
Converse
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When did Adidas acquire Reebok?
In 2005
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What are facts about Nike?
Based in USA but operates in 200 countries, they use low cost labour in Asia Pacific, prices are medium to high prices
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What are competitive advantages of Nike?
Low cost producer, strong innovation, high tech products,
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Who does Nkes have celebrity endorsements with?
Brazil Soccer team, Christiano Ronaldo & Tiger Woods
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What are facts about Adidas?
German business, high quality products that are practical and high tech,
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Who does Adidas have promotion deals with?
UEFA, FIFA & NFL, and hip hop artists and Lionel Messi
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What are facts about Puma?
Based in Germany, use premium pricing, low brand awareness compared to Nike and Adidas, low advertising
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Who do Puma sponsor?
Usain Bolt
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When was New Balance founded?
1906
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What is New Balance's business model?
Manufacturing (6 factories) - Distribution - Customers
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Where are New Balances factories?
5 in USA & 1 in the UK
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How much of New Balances shoes sold in Europe are made in Flimsby?
30%
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How many retail locations does New Balance have?
500
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What is New Balance mission statement?
Demonstrating responsible leadership, we build global brands that athletes are proud to wear, associates proud to create and communities are proud to host
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Who is there concern for in their mission statement?
Customers 'athletes', employees 'associates' and Society 'communities'
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What are New Balance's goals?
To be the world's leading manufacturer in high performance athletic and active life style product, while operating in a socially responsible manner
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What is New Balance known for?
Chunky, slightly retro running shoes
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Who are in New Balance's family of brands?
New Balance, Dunham, PF Flyers, Aravon, Warrior, Brine and Cobb Hill
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What is New Balance's pricing strategy?
Premium pricing
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What is the emphasis on at New Balance?
Fit and performance
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What view did New Balance have about celebrity endorsement?
Until 2009 they held the view their products would be 'endorsed by no one' (evidence H) as it would emphasise substance over style, hence thereby attracting loyal customers who are less fickle
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Who were included in the 'endorsed by no one' campaign?
Bill Clinton, before elected they custom made Barack Obama shoes, Rihanna
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Who have New Balance got sponsorships with?
Recently sponsored races, youth sports adn track/field events, 5 year partnership with Gold's Gym International in 2013
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Who have New Balance endorsed?
Dale Steyn to promote cricket, with Warrior it picked up Liverpool, Stoke City
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How does New Balance's new promotional strategy benefit them?
Enables them to broaden its appeal in mass markets and to target specific smaller markets like cricket and skateboarding
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What are different ways New Balance sell to markets?
In store- in its own stores, through retailers & Online- on their own website and etailers such as Asos
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What are benefits of New Balance selling at their own stores?
They only sell New Balance products so they don't have any competition for customers to look at
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How does New Balance differentiate its products?
Blended gel inserts, heel counters and greater selection of sizes with wide or narrow sizes
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What is New Balance's operational strategy based on?
Efficiency, customisation and quality
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What does the customisation programme allow online shoppers to do?
To design the colour scheme and look of the trainers. They can also have a personalised message embroidered on the back of the shoe
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How have New Balance became more efficient?
They have decreased the time needed to make a pair of trainers. The process from cutting raw materials to shipping finished shoes has been reduced from 8 days to 3 hours in 30 years
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How long are each of New Balance's manufacturing associates supposed to touch the shoes for?
A quick 22.5 seconds, such as cutting leather or hand stitching
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How does New Balance benefit from quality in the US?
Helps design better products and innovate faster, they must have 70% of materials from America to use 'M in A' so keep close control of suppliers, highly trained, loyal and experienced
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How many workers are in the Flimby factory?
245
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How many shoes does the Flimby factory make a week?
28,000
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How much of the European maket does Flimby supply?
90%
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Where does Flimby export shoes to?
75% to Europe, Middle East, Africa, China and Japan, 5% in USA and rest in the UK
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How is Flimby planning to continue its expansion?
A new 21,500 square foot warehouse
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Card 2

Front

How much of the global market share doe the big 5 own?

Back

70%

Card 3

Front

What percentage of the glbal market share do the big 5 own each?

Back

Preview of the front of card 3

Card 4

Front

Why do people buy athletic shoes?

Back

Preview of the front of card 4

Card 5

Front

Why does it appear that the global market for footwear will continue to grow?

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Preview of the front of card 5
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