Target Markket Project 3
-
Upload
edwin-abel -
Category
Documents
-
view
441 -
download
2
Transcript of Target Markket Project 3
1
______________________________________________________________________________
Edwin Abel Aguilar: BUSN 231
Target Market Project ______________________________________________________________________________
Snail’s Pace Finish Line Abel Runners
2
Table of Contents
Marketing Environment…………………………………………………………………...
Industry Potential…………………………………………………………………………
Current Trends……………………………………………………………………………
Competitive Factors………………………………………………………………………
Technological Factors…………………………………………………………………….
Political Legal Factors……………………………………................................................
Social Cultural Factors……………………………………………………………………
Consumer Behavior……………………………………………………………………….
Competitive Analysis: Snail’s Pace………………………………………………………
Positioning Map # 1………………………………………………………………………
Positioning Map # 2………………………………………………………………………
Primary Target Market Analysis…………………………………………………………
Product Objectives & Strategies Examples………………………………………………
Price Objectives & Strategy Examples…………………………………………………...
Place Objectives & Strategy Examples…………………………………………………...
Promotion Objectives & Strategy Examples………………………………………………
Website Objectives Objects & Strategy Examples………………………………………..
Competitive Analysis: Finish Line……………………………………………………….
Positioning Map # 1………………………………………………………………………
Positioning Map # 2………………………………………………………………………
Primary Target Market Analysis…………………………………………………………
Product Objectives & Strategies Examples………………………………………………
Price Objectives & Strategy Examples…………………………………………………...
Place Objectives & Strategy Examples…………………………………………………...
Promotion Objectives & Strategy Examples………………………………………………
Website Objectives Objects & Strategy Examples……………………………………….
Time-Out……………………………………………………………………………................
Ethical Issues & Action Plan……………………………………………………………..
S.W.O.T. Analysis………………………………………………………………………..
Competitive Advantages………………………………………………………………….
Intent Marketing Strategies for 3rd
Product……………………………………………….
Purpose Statement/Mandate………………………………………………………………
Competitive Analysis: Forrest Run…………………………………………………….
Positioning Map # 1………………………………………………………………………
Positioning Map # 2………………………………………………………………………
Primary Target Market Analysis…………………………………………………………
Product Objectives & Strategies Examples………………………………………………
Price Objectives & Strategy Examples…………………………………………………...
Place Objectives & Strategy Examples…………………………………………………...
Promotion Objectives & Strategy Examples………………………………………………
Website Objectives Objects & Strategy Examples………………………………………..
List of Works Consulted……………………………………………………………………
3
______________________________________________________________________________
The Marketing
Enivornment ______________________________________________________________________________
4
Industry Potential
When it comes to needs, footwear follows under the category of clothing, the 4th
basic
need of human life, according the WEP (Web # 11). Most early civilizations did not wear shoes
with the idea of fashion in mind. Today there is a shoe for almost every occasion, sports, work,
leisure, celebrations etc. The footwear industry has seen a huge growth over the last 100 years
into a multi-billion dollar industry (Web #13). Owning a pair of shoes has always been important
to the American society and the market has diversified itself according to consumers’ needs. The
market today for footwear is about $48 billion, with half of that revenue coming from the United
States alone (Web #11).
The shoe/running store might be said to be at the maturity level, due to many
competitors, product modifications, and less market competitive advantage. Yet, it is not in the
decline stage because running clubs have soared, fitness in general is more popular than ever,
and sales in shoes are growing (Article#6). The RRCA (Road Runners Club of America) is one
of the major national running clubs (Article #10). It reports to have increased in members and
clubs, as well as their competitors. More and more people are working out, if not running, doing
different forms of cardio and strength exercises. Many people are even just wearing running
shoes for the comfort it provides for day-to-day tasks (Article#7). This product and service
combination of selling shoes and servicing running clubs has been growing. It is safe to say, we
are at the growth stage.
As fitness and training has become a norm, more so in the 1960s, the athletic-footwear
industry was born (Art. #5). Recently, analysists have seen a huge increase in the number of
manufacturers enter the industry, and revenue made. Wholesale, the industry jumped from $1
billion to $6 million in about five years in the late 90s (Art. #3). Athletic shoes count for 30% of
the overall footwear industry or $14.4 billion, about $7 billion made in the U.S alone (Web #13).
Leaders of the industry have emerged, so that they are domestically and foreign known. Nike,
Reebok, and Adidas are the leading brands in casual footwear and more so in the athletic-
footwear industry. Under these corporate typhoons, athletic brand firms such as Asics, New
Balance, Brooks, etc. have emerged in extending the athletic market (Art #3). Many of these
brand firms make their highest in retail sales. Although some stores like Nike and Adidas have
their own retail branches, all of these companies sell to footwear retail chains. Stores such as
Payless, Foot Locker, Sports Authority, Finish Line, Snail’s Pace, etc. distribute shoes that fit
their store’s product lines and customer needs.
The partnership between brand distributors and retail stores allows consumers to choose
shoes that fit their needs (Art. #5). The biggest retail stores: Payless, Foot Locker, and The
Brown Shoe Company, collectively, produces over about $11 billion in annual sales (Web. #13).
Even minor retail stores are on the rise, some are branches from major players such as Nike and
Adidas, while others are independent corporations. For example, companies like, Stride Rite
Corp. reported earning $15.4 million, up from $13.7 million in the last quarter, last year. L.A.
Gear Inc., reported of annual sales of $160 million, profit of $13.9 million in 2013(Art. #3). The
industry will continue to grow as the population grows, with new shoe lines to distribute (Web.
#4).
5
Implications: While the athletic shoe industry is becoming more competitive each year with
new product shoes being released, and niche markets found, it is growing industry. The annual
revenue and profit margin reports show high new levels and the need of athletic footwear is
increasing. For a new retail store to enter in the shoe athletic-shoe industry will be difficult as
many good stores are providing a variety of sport shoes, at different prices. Consumers are
looking for quality-lasting footwear at affordable prices. Most fitness orientated consumers are
loyal to their store, so a new business must focus on being able to accurately inform,
recommend, and provide quality athletic footwear. The shoes and product accessories, will not
make the difference, so one must be willing to offer unique advantages that convince will
convince consumers to leave the Nike Store, Foot Locker, etc. to go one’s store.
Current Trends
Many of the current trends in the athletic footwear industry today are attributed to the
growth of fitness awareness, style/customization, and bi-product advantages. Typically,
consumers believe fitness leads to a healthier life, whether it’s their personal belief (through
experience) or by public awareness (media, friends, etc.). Regarding footwear in general, “good”
style has been a common dominator to which shoes, people purchase. This trend has affected
how the athletic shoe industry designs their shoes, by making style a major priority, next to
functionality. Many of the athletic shoe designs are attributed to years of research and R&D
funds, creating light, fast, and comfortable shoes. These trends consumer believe to be most
important when purchasing running shoes and competitors fight for competitive advantage in
most of these areas (Art. #5, 9; P.I. #1, 5).
Fitness is trending more than ever, even with the rise of technology making people lazier
than previous, consumers are finding new methods to improve their health (Art. #12). Exercising
in general has prompt citizens to make health a priority than a luxury. Gyms, fitness clubs, and
running clubs are trending more than ever. In 2014, the global fitness and health club industry
made roughly $84.3 billion, since 2009, of 61.5 billion. The United States alone has the most
health clubs, about 40,710, with over 50 million members enrolled (Web. #14). In doing,
interviews, a common awareness for weekly exercise seemed very important to their lives (P.I. #
2, 3; C.I. 1, 2, 8, 10). Specially running has been an ideal sport for many, for reasons such as,
community, affordability, consistency, fun, and applicable for all ages (P.I. # 3, 4; C.I. # 1, 2, 3,
5). Running is the largest U.S. athletic footwear category by retail sales, according to Sports
OneSource (Art. #13). This niche sport has grown over the past years, with much awareness runs
increasing, and running clubs being developed. Just in California alone, there are 210 established
running clubs, the highest in the nation. Since 2005, the National Runner Society has counted
over 12 million racers. Many of these racers are ages of 18-44, and have effected how the shoe
industry has grown from 2010 to 2013 (Web. #15). Running has become the main norm for
fitness (P.I. #1).
6
The importance of style in the shoe industry is a current trend, a game-changer that
determines which brand consumers stay loyal towards. The key to popular style is capturing
consumer-based styles and trends (Web. # 12). Analysts did s study on shoe-style and
concluded, finding the right style, especially in the athletic and sports market will win.
“..Individual styles are doing better than the overall brands," analyst Sam Poser said (Art. #16).
For example, Wall Street did a report on Sketchers regarding their high rise in sales. This
company accounts for 5% of the sports-footwear market, passing Adidas, Asics, and New
Balance. The company is known for offering stylish, athletic shoes at the fraction most known
brands offer. The article refers to how their shoes are lower in quality than main brands, more
causal walks and jobs, than for running or hard training. Their designs wear the athletic brand
image, but lose in performance and quality. This is a reason how style can favor more to the
consumer “eye” than performance or quality (Art. #15, 16). A bright example of the importance
of style trends is athletic footwear is the evolution of Nike’s Air Jordan’s. One cannot the
significant dominance this shoe has on the athletic shoe industry, it accounts for more than 60%
in the United States (Art. #14). Air Jordan shoes were endorsed by the basketball legend,
Michael Jordan, also known as, “Air Jordan”, and owned by Nike. While these athletic shoes
provide real-time traction and durability, the money is on Jordan’s sleek and “cool” look (Art.
#11). This is a prime of example of how style is important in the market industry (Art. #14).
Fitness participants and enthusiasts, today are also very concern about shoe
advancements, shoe products with enhance technologies and performance. Yet, much
significantly has changed in athletic footwear (P.I. # 1). A test was conduct on Adidas’ running
shoes, testing cushion comfort, and they found each shoe required variations. They used
Adiprene + technology to provide general comfort, but realized each shoe need different doses
for proper balance between the shoes (Art. #11). Some sport shoes required more material in
their shoes than others. Running shoes is ranked third in having various materials, next to cleats,
and basketball shoes (Web. #13). Bi-product innovations derive from consumer’s high demand
of comfort next performance. Flexibility, durability, and weight are leading factors to
consumer’s power purchase. The new Nike running shoes all have the same fabric material,
computer chips, and foam technologies. This has lead a trend where these advancements have
become a necessity for other brands to carry in each of their athletic shoes (Art. #9, 12).
Next to having trending shoes, is customer service. The success of the any retail athletic
shoe store is in customer service, knowledgeable, friendly, and experienced (Art. #1, 5, C.I. # 1,
5, 10). This trend will separate one store from the rest. Snail’s Pace is a leader in running shoes,
because they lead in customer satisfaction, a 5-star company on Yelp, and leader in quality
experience (Web. # 1, 3; C.I. 3, 10). Gaining and maintaining outstanding customer service is
and will continue to be a major trend in the industry.
Implications: In order to stay relevant or even afloat, an athletic store must have, in abundance
athletic footwear trending in sports, style, and bi-product innovations. The smallest advances in
these areas are crucial in evolving to the present consumers.
7
Competitive Factors
The demand for athletic footwear is increasing substantially due to an emerging trend of
running shoes, due to a high domestic awareness of fitness. This explosion of new sport shoes,
especially in road running, has made this a high competitive market (Art. #3, P.I. #1). The
primary direct competitors of this industry (in the Southern California area) include: Snail’s
Pace, Finish Line, Nike store, RoadRunners.com, and Foot Locker. These stores, especially
Snail’s Pace and Finish Line, are well-know, for offering various athletic shoes, specifically
running footwear. Snail’s Pace and Finish Line, the two direct competitors, are described as
“shoe moguls” and both planted and captured strong ties with customers and vendors, compared
to other shoe stores. Their success is partially due to their great customer service to incoming
prospects and regulars. These stores are non-brand basis, and focus on finding the right shoes for
customer’s needs, regarding quality, price, style, and customer service (shoe knowledge)
(Web.#1, 3, 6; P.I. # 3, 6; C.I. 1, 5, 10). Many specialized/minor athletic shoe stores are facing
much more competition and are exiting the market industry to other realtors, Payless, Sketchers
Store, Sports Authority, Sports Chalet, even Target and Walmart. These stores offer athletic
footwear, but are limited in supply, low in quality, and customer service (shoe knowledge). Local
Southern California retail shoe stores such as Shoes place is also being to offer athletic shoes
next to their primary casual shoes – its quality, variety, and customer maybe similar to the level
of Snail’s Pace and Finish Line, but if it’s closer, sometimes price and convenience can beat out
a quality and customer service difference. As the demand for athletic shoes are increasing,
current retail shoe stores will incorporate athletic shoes for lower prices, which could destroy the
need for athletic shoe stores (Art. #7. Web. # 3, 10). As obesity is increasing, fitness businesses
booming, and athleticism more common, more competition will sweep into the industry creating
athletic shoes or just shoe stores that carry athletic footwear in the future (Web. #14, P.I. #1).
Implications: Competitors are on the rise to create new athletic shoe stores or incorporate them
in regular retail shoe chains. Low prices are a threat for most retailers who offer high-end athletic
shoes at high-end prices. A new owner of an athletic shoe store must realize fitness- active
consumers are loyal to their stores, because there they know what specific shoes they need and
fits all their needs in comfort, price, and style. It is difficult to sway a customer to buy the same
or slightly better pair of athletic shoes, if their trust is entangled on safety and price. Once a
consumer gets used to a pair of shoes, their body is adjusted to the shoe, making it difficult to
convert to another shoe that may not perform as well, cause injury, or may be higher in price. A
store trying to compete with Snail’s Pace superior knowledge and customer service, will need to
overdo them or find another form of competitive advantage.
Technological Factors
If knitting cloth and nailing wood to make footwear still existed, the athletic shoe
industry would be non-exist. Before athletic shoes were introduced, runners ran barefoot (Art.
#10, 12). The key for successful running is being consistent and light, some athletes still run
8
barefoot. Technology has everything to do with the design, creation, and manufacture of running
shoes. (Art. #9, 11). Before companies started mass-producing running shoes, the only people
who were able to obtain them were athletes. It wasn’t until the late 60s and early 70s, where Nike
mass-produced running shoes for the common populace (Art. #15, 18). Technology changed how
shoes were made, fibers such nylon, plastic, and foam were being implemented into the creation
of running shoes (Art. #9).
The purpose was to make footwear inexpensive and comfortable for consumers. The bi-
products are cheap to manufacture and flexible to form (Art. #9, 10, 11). These are the basic and
only materials used since Nike came out with its first design. The real innovation in technology
is in the manufacturing equipment and shipping processing. Robots fibrate the bi-products and
make parts of the shoe. Next labors use top sewing machines and devices to put it together (Art.
#18). Inventory systems, packaging, and shipping methods have evolved dramatically. Now
every shoe can be accounted as they scan each pair, before shipping. The packing is assembled
by robots and made light and inexpensive for shipping purposes. The shipping of shoes can be
pre-ordered online for stores and customers. Shoes are usually shipped through the ocean to
company factories (Art. #17, 18).
Technological factors include shoe innovation drafts, where now companies use software
to create 2D and 3D models as well as graphics for stores and websites (Art. #8). The Digital
Age has change how brands appeal to consumers. Another major factor has been social media,
where the internet has allowed communication between consumers and stores (Web. # 1, 2, 12).
The technology that goes into designing, manufacturing, and distributing, is important for
production, but it also has a major role in stores and ecommerce. Stores such as the Snail’s Pace
are using treadmills, feet pressure/size calculators, iPad demonstrations, etc. to accurately assess
and aid customers to find the right shoes for their activities. Whether one is running once or
twice a week, hiking, or running a marathon, they possess the right pair (Web. # 3, 5; C.I. 1, 3,
4). Others are using iPads for purchasing reasons, feet scales, and inventory systems to increase
efficiency throughout the store. Ariana of Fountain Valley’s Snail’s Pace Store believes have a
reliable and updating system for inventory is keep for knowing what shoes are in stock or need to
be ordered. This example and other technological devices prove more and more as a need in
providing customers the best of service.
Implications: Manufacturing technology is always on the rise for innovation, because it saves
companies millions of dollars. The reasons technology can present a downfall to the industry are
online stores, ecommerce and robotic labor. Online stores are not personal and do not guarantee
full satisfaction in finding the right shoe. Buying athletic shoes is different than buying sneakers,
the reason be is running shoes need to not only fit, but be comfort and adjustable to one’s feet.
Ecommerce is the same, but it does allow the comfort of going to the store and trying out the
shoes. Robotic labor is used in making the components of products, but replacing labors will
decrease the quality of shoes, and shoe industrialists know this.
9
Political/Legal Factors
The shoe industry is probably the least of government concerns, concerning domestic
interests. Unlike the FDA, the USDA, etc. the AAFA, is quite lenient in regulation and fees
towards brands and retail stores. The association understands the huge economical contribution
the shoe market, in general, has in the United States economy, and around $361 billion in annual
retail sales and this number is increasing (Web. #13). The major legal issues the athletic shoe
industry faces are outsourcing concerns for the American economy, and foreign working
conditions (Art. #16). From the 1990s, consumers have been more aware of the legal practices
major shoe companies, Nike, Reebok, and Adidas, challenging them to change their supply
chains and outsourcing standards (Art. # 19). The reality is the four-frim concentration ratio is
high, at 80%, and Nike, alone, hold 64% of the market, 46% in the athletic shoe industry (Art. #
19). This means Nike and two other major players, control the industry granting them market
power. Their methods in production and shipping are repudiated by most in order to keep up
with industry standards and profitability. Just in Southeast Asia, 98% of all athletic shoes are
imported to American warehouses. Nike is the first company to start manufacturing in Asia and
has decreased their transportation, material, and labor cost, providing extra cushion to markup
prices and still compete in price against other major shoe brands (Art. #19). As international
concern brought light the factory conditions in Asia, policies and laws were created to protect
foreign nations. In 1992, a “code of conduct” was created around the globe for subcontractors,
hired by American brand companies to follow. The way Nike dodged a lot of lawsuits and
human rights accusations is by having subcontractors own and operate the factories, so the
company would not be directly responsible for any legal issues and illegal activity. Even so,
pressure from media has promoted Nike to address the harsh working conditions in those
factories. Reebok, the second leading manufacturer, has a 100% outsource strategy and like Nike
have implemented their own “code of conduct” for their manufacturers. Adidas is also a large
brand outsourcing in Asia, but without of “code of conduct”, and like the rest of the pack, are
leaders in causing ethical concerns regarding wage, air quality, and employee treatment. With
Nike being the front man for all the ethical issues in Asia, Adidas is not working towards any
political adjustment in their factories abroad (Art. #18).
Legal factors are not applied much to these shoe kings, and the only domestic
contributions they make are in taxes and retail jobs. The United States Labor Bureau has
investigated this issue more over the past decade, mainly to support domestic jobs. A prime
example of governmental collation with athletic shoe companies, is the military deal New
Balance made with the U.S. Military. New Balance is like all other brand companies, outsourced
abroad, but because it has factories in Maine and Massachusetts, it convince the military to sign a
contract for millions. The Pentagon has made it a requirement that all G.I. clothing is American
made, all but the exception of training shoes. Since 2010, New Balance has wanted to partner
with the military that spends over $7 million on sneakers annually. The process has cost New
Balance over $500 thousand to lobby for this contract, and is on the brink to get an annual deal
going (Art. # 17). This company is proof of potential profits in domestic markets, yet spokesman,
LeBretton of the company admitted it won’t be big money.
10
Implications: Big brand companies are facing legal pressures and it is important to have a set of
lawyers focused on international and domestic business practices. The EPA, the Labor Bureau,
etc. are fighting to adjust or terminate outsourcing factories, which can hurt the athletic shoe
industry indefinitely. For Snail’s Pace, these legal issues affect their profits, ad stock options as
manufactures may increase their prices on shoes sold, and decrease production products. Also,
Snail’s Pace is responsible to sell quality shoes, any defective shoes or false performance
promotions can result in lawsuits.
Social/Cultural Factors
Society plays a big role in the way consumers make their purchasing decisions and health
methods. Health awareness has grown much over the past decade as both men and women have
been desiring and experiencing more daily exercise. Data, alone explains how from 2009 to
2014, fitness clubs have increased to $84.3 billion (Web. #14). More people are being awareness
of cardio vascular disease, and unhealthily foods lead to death. For consumers exercise has
become a necessity, which has allowed many gyms, health and running clubs to prosper. In the
running industry, both men and women are running more than in 1990, where only about 3
million participated in races, and in 2013, about 20 million have been attended (Web. #15). One
customer at Snail’s Pace said, “running has been a must in life, one either keeps going or stops”
(C.I. #3). He meant running has become a part of life, not just a chore. Another social concern
over the years has been the gender gap for running sports. There has and still is a limited
women’s sports section, due to two factors, small target market, and product change. Women,
historically, have purchased more shoes than men, (just ask your girlfriend) but men have bought
the most sneakers. Since the 90s, Nike, Reebok, and Adidas have jumped on the women-
endorsement bandwagon and starting reaching out to women. Females made up 23.4% of the
market for Reebok, and those numbers are growing (Art. #7). In 2013, it was reported 43% of
women participate in running clubs and races, the closet the gender gap has been since 1990,
when 75% of men were running and only 25% of women ran (Art. #15) .Companies have also
adapted to customizing to women’s sizes and feels in their shoes. While most athletic footwear
performs well for both genders, some specifications needed to be made to adjust to the female
target market (Art. #7).
Implications: Noticing the fitness trends and demographics will help increase in niches and
target markets. Opening up a shoe store with a running club, it is important to take to account
what consumers believe about fitness and how to gain the majority of the demographic
population to run. Times are changing, and influencing the consumers on the fitness benefits of
running is ideal to keep them accountable to the club and store.
11
Consumer Behavior Factors
1. High Quality shoe products (Brands) (C.I #1, 5, 9, 10; Art. #6)
2. Decent affordable prices for target market (C.I. #4, 5, 7, 8)
3. Great Customer Service from employees informative abilities (C.I. #9, 10)
4. Variety of brands and size-fits (Art. # 11, 15; C.I #8)
5. Consistency of right shoes in stock (C.I. # 8, 9, 10)
6. Fun, chill environment to buy and run (Art. # 12, 13; P.I # 2, 3, 4; C.I. # 6, 8, 10)
7. Friendliness in club runs and purchases (P.I. # 3, 4; C.I # 10).
8. Easy access and visibility, to where shoes are sorted for customers to choose (C.I # 7)
9. “Atmosphere” as in not cluttered, rather making good use of the space (P.I. # 10)
10. Promotions and discounts for members and non-members (P.I # 10; C.I # 7)
11. Incentives and competitive events (P.I. # 3, 4; C.I. # 3, 4, 5)
12. Fun running locations (Web. # 12)
Implications: This industry of athletic wear, specifically running shoes is narrow, which means
there is room to target a specific group. Having a store that meets customer needs and providing
an outlet of need is perfect. A shoe store and running club is a great business combination to
runners, who need shoes to run, and one runs which needs shoes.
12
______________________________________________________________________________
The Competitive Analysis ______________________________________________________________________________
Snail’s Pace
13
Positioning Map 1
Staff Knowledge and Consistency of Products in Stock
Why: Snail’s Pace is notorious for their high expertise in running awareness, product
performance, and product qualities; the staff will find and sell the best shoes regarding the
customer’s needs (C.I. # 9, 10, 11, 15). Unfortunately, Snail’s Pace is a limited store in shoe
products, and their inventory process is lacking efficiency (P.I # 2, 5), in comparison to their
direct competitors, which is specialize in product variety and inventory. Finish Line is a great
store for finding “decent” shoes, yet are limited in shoe expertise and quality. If you are trying to
get by, Finish Line is the store to pursue (C.I. # 5, 6). The Nike Store and Foot Locker are not so
much different in they have good consist product lines and are accessible to consumers than
Snail’s Pace (C.I. # 4, 19). Yet the importance lies in their difference, which is employee
knowledge. 75% of shoes are Nikes in Foot Locker, yet the difference is in the Nike Store, the
employees are very well informed and equipped to serve consumers (P.I. # 1, 11). Speaking the
assistant manager at Footlocker, he explained the understaff team of the store, and admitted their
knowledge of the shoe products, for most employees, is rather limited. He understand this being
the only training regarding product knowledge was found in a corporate book and in their
experience on the store floor (P/I/ # 11).
Pro
duct
Sto
ck
Consi
sten
cy
Les
s P
rod
uct
s
Consi
sten
cy
Less Knowledgeable
Staff
Very Knowledgeable
Staff
Snail’s Pace
Finish Line
Foot Locker
Nike
14
Positioning Map 2
Affordability and Product Quality
Why: Snail’s Pace, out of all four competitors has the highest product quality, but at the highest
price. High quality athletic shoes at high quality prices. They have are leaders in quality, but
unlike Foot Locker and Finish Line, lack affordability (P.I # 5, 11; C.I. # 3, 5, 9, 15). The best
shoe corporation to balance the two categories extremes is the Nike Store, due to the durability
and material used in their shoes, at affordable prices. All other companies have Nike athletic
shoes, but the better and cheaper ones can be found from the Nike Store in Orange (C.I. # 12, 15,
19The reason Foot Locker and Finish Line are close in scale, is they are direct competitors, in
that they share the same corporate and retail structure unlike Snail’s Pace and the Nike Store.
Both companies are affordable and “decent” in product quality, but if asked which store is
preferred or widely known, Foot Locker would be mentioned (P.I. # 11; C.I. # 7, 9). ). Having
both high quality footwear and affordable pricing is difficult in this industry, for price is often a
quality measurement (Art. # 17, 19). For Snail’s Pace having high quality and high prices puts
them in a higher advantage in the athletic industry, specifically in the running industry (Web. #
6, 14, 15; P.I. # 2).
More
Aff
ord
able
Les
s A
fford
able
Lower Product
Quality
Higher Product
Quality
Snail’s Pace
Finish Line
Foot Locker
Nike
15
Primary Target Market Analysis
1. Psychographic
Ranking: Ranked first because Snail’s Pace, genuinely cares about fitness, health, and
comfort. Even those outlier customers who only seek comfortable footwear, understand
the need for quality shoes. Regulars come in with health, safety, and performance
expectations in their shoes and pay top dollar to ensure they leave out their lives healthy
and safe. Snail’s Pace invests in customers’ needs – one example being their foot
placement machine, which measures feet size, type, and arch size.
a. Healthy
b. Comfortable
c. Active Lifestyles
d. Customers informed
2. Unique Benefits
Ranking: Ranked second because while the athletic shoe industry would be nothing
without the psychographic detail above, the next best thing that drives this industry is the
unique benefits each Snail’s Pace store offers compared to its competitors. Snail’s Pace
knows its audience and customers want quality products and athletic/product information,
even at premium prices. They’re unique in that they find the right shoe for the right sport,
and allow customers to experience good quality with their running club and academy.
Snail’s Pace allows their customers to experience their investment, by providing a
community-based program that creates health and performance results, through hard
work and relationships.
a. High quality products
b. Unique/various sport shoes
c. Excellent customer service
d. Running Programs
3. Demographic
Ranking: Ranked third because due to athletic, running shoes being more expensive,
people with higher incomes are Snail’s Pace primary customers, as well as well-educated
because they understand the benefit and necessity to maintain a healthy lifestyle through
running.
a. Ages: Late 20s – 50s (C.I. # 2, 3, 5, 7, 18).
b. Incomer: Upper-middle class (P.I. # 2, 5; Web. # 4).
c. Educated (C.I. # 2, 3, 10; P.I. # 2, 5).
d. More than half male (C.I. # 4, 8, Art. # 7, 17, 18).
4. Geographic
16
Ranking: Ranked fourth because although a naturalistic location is ideal for cross
country running, having strong fitness awareness, working customers, and benefits grow
the company. Shoes can be distributed to any city, but a store in a nice neighbor is
important for the safety and enjoyment of the runners.
a. Small area, densely populated
b. Residential/Suburban areas
c. Filled with parks
Customer Experience/Product Analysis And
Strategies Discussion
Product Objective: Snail’s Pace’s mission is to get average and running consumers, alike, to
love running through their products and industry expertise. They sell themselves. Snail’s Pace is
the one place where can be fully equipped, encouraged, aided in their running experiences. They
provide the highest form of customer service, production selection, and community running
(Web. # 1, 2, 5, C.I. # 2, 9, 15, 19).
Analysis/Strategies: Snail’s Pace has unique strategies to enhance the customer experience, in
and out of the store, which isn’t surprising for a business who identifies its primary focus on
customer service (P.I. # 5). As it has been mentioned before, Snail’s Pace is most known for its
outstanding customer service, product adjustment, and encouragement. Against its competitors:
the Nike Store, Finish Line, and Foot Locker, they offer not just running shoes, but a running
lifestyle (Web. # 5; P.I. # 2, 3). Once a customer comes in, new or regular, a help is on the way.
The advantage this store has is their expertise and the customer’s lack of it. Questions are always
asked by the customer, mainly because if one is going to spend over a $100, they want to know
their shoes will solve their issues. Third minutes is the usual rate an associate will spend with the
customer, choosing over 5 different pairs of different brands and types. In the process customers’
feet are evaluated, and get a simple diagnose of their legs and feet, depending on experience and
medical conditions. The whole time a conversation is being had until that customer walks out
with a new pair of ‘fit” shoes (Web. # 3, 4; P.I. # 2, 3, 5; C.I. # 3, 9). Next to their success lies in
their products, which vary for different customers of different comforts. In that process of shoe
selection, employees pick various brands, types, and shoe sizes that fit the customer. The store is
able to combine different accessories, whether it be soles, laces, watches, socks, etc. that best
enable the customer to run immediately (C.I. # 4). The last and most important strategy Snail’s
Pace uses in gaining and maintain customers is customer encouragement. Customer
encouragement comes best in the form of the store’s famous running academy and running club.
The club gets you excited to run, which is not a very popular sport for most at first (Art. # 7).
The store provides three levels in the running club that suit a member by experience and
expectation. The running club is a group meant for average customers, running to build
endurance and health, or training for local races. This company has changed from just be a store
17
to a community that encourages average citizens to run and run successfully (Art. # 6, 8; P.I. # 3,
4).
Strengths:
Friendliness and encouragement (C.I. # 2, 3, 14, 15).
Shopping at Snail’s Pace is an informative and fun experience with its friendly
employees and “chill” atmosphere (C.I. # 12, 13, 16)
Best brands, models, and shoe types for running, hiking, etc. (C.I. # 10, 15, 17)
Great community of runners, employees and customers (C.I. # 4, 9, 11, 25)
Great amount of running, product, and training information handed by employees to
customers (C.I. # 9, 13)
Weaknesses:
Inconsistency with products being in stock (C.I. # 3, 13).
Premium pricing on all products (C.I. # 2, 3, 9)
Pricing Analysis and Strategies Discussion
Snail’s Pace Finish Line Industry Average
Nike Lunars $110 $90 $85
Asics GT-1000 $100 $80 $70
Brooks Glycerin $150 $120 $110
Price Objective: Snail’s price objective is to selling premium items at premium prices. There
are no discounts on shoes, if any are rare and low. This company prides it’s on customer service
and top brand shoe models, which is added in the price of each pair. Prices vary in certain
models, and colors, as they do for all shoes. The most popular sell at a higher price regardless of
quality (Art. # 11, 18. C.I. # 3, 4). Most if not all products are higher than industry standards and
other competitors, even with having high volumes of shoes available. Compared to Finish Line
they have higher prices for the same shoes (C.I. 10). The store has a running club and running
academy to sponsor their shoes and equipment. The price of the academy is $125 and the club
membership is $30 per year (P.I. #1). The price pays for club events Snail’s Pace sponsors.
Being in the academy or club gives customers discounts and access to “off-shelf” equipment (P.I.
# 1, 2). This pricing strategy makes visitors or one-time customers strive for membership to “feel
fully involved” with the running community. Over the years they have increased prices as
economic factors have increased costs and shoe prices (Art. #4).
Analysis/Strategies: The industry in athletic footwear is huge and increasing, for it is expected
to increase at least by. 3% in the next few years (Art. #11). Snail’s is directly influenced by the
18
shoe industry in general because major companies like Nike, Adidas, New Balance, and Asics,
are the main vendors for Snail’s Pace (P.I. #5). When prices of shoes go up so, so do the prices
of shoes sold in Snail’s Pace. When it comes to pricing, strategies Snail’s Pace uses is connected
to the process brand shoe companies’ use. Pricing strategies used are selling at premium prices,
customization pricing, price skimming/versioning, and bundling (Art. #18). Snail’s Pace, like top
brand shoe makers they markup their prices. When brand companies markup upwards 300%, one
would expect a higher price in retail for stores to gain a profit. In 2013, men’s athletic shoes over
$100 grew 20%, saying people are willing to invest more in “premium shoes”, mainly because of
the fashion statement, a field highly regulating supply in an excess demand population (Art.
#18). Snail’s Pace knows premium sells so they markup prices even more. For example, a pair of
Air Jordans 10 “Power Blue” cost $16 and were sold in stores for $170, it grossed $35 million
the first day! (Art. #18). Customization is a result of popular opinion, which changes colors and
styles, tries to not decrease performance. Snail’s Pace is not a fan of price discrimination or
reduction, for most of their shoes stay the same price. The only exception is inquiring older
models, but those need to be asked, because sales’ reps do not recommend or promote older
models (C.I. # 10). Lastly bundling item has not been a success for Snail’s Pace, for they just
either sell or freely offer accessories. The store tries upsell customers with cushions, and other
items relating to the sport of the customer’s choice (P.I. #1, 2).
Strengths:
Best customer service than most if not all competitors (C.I. # 1, 2, 4, 9)
Large selection of shoes (P.I. #1, 2, 5; C.I. # 1, 2, 6)
High knowledge of sports and equipment (C.I. # 10)
Discounts for members and students (C.I. # 11)
Weaknesses:
Too many premium prices, not enough discounts if any (Web. # 7; C.I # 3, 4, 5)
Not enough staff on rush hour days (C.I. 16, 17)
No online specials or shoe awareness, beyond the store (Web. #8; C.I. # 18)
19
Placing Analysis and Strategies Examples Discussion
Place Objective: This particular Snail’s Pace is located in the Imperial Hwy, across the street of
the Brea Mall, in Brea. It is convenient for customers to pass through the store for buying shoes,
next shopping centers and restaurants. It is also less than a mile from Finish Line and Foot
Locker, which carry athletic shoes and accessories (P.I. # 2, 3, 4).
Analysis/Strategies: Snail’s Pace location, like it’s other stores, is located near a large street or
highway, in reach for daily commuters of the area. Knowing Imperial Hwy, it is a very busy
street, full of traffic throughout the entirety of the day and night, which makes its location visible
and seen more often. Unlike other shops and restaurants, there is a little right corner lane that
shoots start to the cluster stores where Snail’s Pace is located. This makes entering the store
much easier, without waiting for lights or traffic. Yet, the populated parking area (used by the
surrounding stores) and the congestion car lanes make it difficult to find parking. By locating
themselves in Southern California and in this particular area near a mall, the Cheesecake Factory,
BJ’s, and the freeway, Snail’s Pace is easily accessible to the upper-middle class population,
which is their primary target. Snail’s Pace is strategically near Craig Park, residential areas, and
restaurants for running and community purposes. They are also on the Brea 8k track, which they
sponsor, and have members run. The store’s location is ideal for running for it safe, well-lit (for
night time runs), and beautiful; as well as fun with restaurants to go to after a run. Runners of the
club and the academy have mentioned the beauty and convenience of restaurants that are located
around Snail’s Pace. Each month or every week, they meet together at BJ’s for food, coffee, or
beer. There is even a run, the Pub Run, which is a short 2.5 mile run, around the area to BJ’s for
free beer (C.I. # 2, 3, 4). The area creates a face-pace environment, which is encouraging for
running and populated with extracurricular activities, a reward after the run. The area where
Snail’s Pace is located is encouraging, filled with people and snips of natural beauty. This part of
20
Brea is known for heavy shopping throughout the whole year, and for a retail store like Snail’s
Pace adds value as the store to buy athletic footwear. The city selection, on its own, is smart
because it is filled with parks, trails, housing. Parks and trails are ideal for running and
encourage customers, who already live in the area to run with Snail’s Pace. Another plus is Brea
is a small, populated city, with more potential residents, making Snail’s Pace near the many of
the member’s and customer’s homes. Location is extremely important for this store because not
only is it convenient for travel, but also in a safe, friendly area. This provides ease of mind,
comfortability, and fun for most members and customers (P.I. # 2, 3).
Strengths:
Located near shopping centers and restaurants open longer (C.I. # 3, 17).
Located in a safe, fun, beautiful city (C.I # 10, 11; P.I. # 4).
Located off Imperial Hwy and the freeway (C.I. # 9, 15, 16).
Weaknesses:
Highly congested of cars and people (C.I. # 18)
Cramped Parking (C.I. # 2, 3, 9).
Next to two direct competitors about half a mile away (P.I. # 5).
Promotion Analysis and Strategies Examples Discussion
Promotion Objective: Snail’s Pace’s promotion objective is to differentiate itself from the huge
competition of brand companies, with its great customer service and health benefits (informative
and experiential). This store enjoys the benefit of getting free promotion on the web (Facebook,
Yelp, and Instagram), word-of-mouth advertising from its loyal customers and club members,
and sponsors (Web. # 1, 4, 5, 12; C.I. # 2, 3, 17).
Analysis/Strategies: Snail’s Pace rarely relies on discounts or specials to sell their
products/services, for it is either full-priced or free. Their price is added from its additional
services they offer in counseling, mentorship, medical/technique, and running program (Web.
12; P.I. 2, 3). Snail’s Pace does not advertise on television, or hand out fliers; their focus lies in
sponsorships, social media, and word-of-mouth. If you are a runner in Southern California, one
has heard of Snail’s Pace. Sponsorships are big for athletic retail stores, where they either are
sponsored by brand companies, or the store directly sponsors runners, races, and students with
discounted/free shoes or money (Art. # 9; P.I. 3, 4, 5). The store itself is unique than other shoe
retailers, where the extra space is used for shoe testing, fitting, and displaying. Their success in
found in their extended ability to aid and relate with the customer, as mentioned before most
employees were or are runners themselves.
Strengths:
Customers like the shoes (best brand models) (C.I. # 11, 15)
21
Customers and club members appreciate the way employees can aid and relate with them
about running, product durability/quality, and past/present experiences (C.I. # 3, 4, 8, 9,
17)
Weakness:
No ecommerce store or shoe informative website to research on its products (C.I. # 3,
16)/.
Customers feel the store should have specials or display lower priced shoes (C.I. # 2, 3, 5,
9, 14, 15, 19).
Website Analysis and Strategies Discussion
Website Objective: Snail’s Pace’s website (www.asnailspace.net) is just a quirky and simple
site like their store. Unlike the store it is not very informative about prices, products, but more on
the culture, running activities, and bibliography of Snail’s Pace. The website includes the
different locations, events, potential employment opportunities, legal information, and running
club/academy details. The idea behind this seemed-outdated site is to bring customers into the
store, rather than give them the choice to research prices and models. Snail’s Pace wants a
customer to experience and learn the “ways” of product quality and running benefits (P.I. # 5).
Analysis/Strategies: The first thing to see on the Snail’s Pace website their main graphic
illustration next to the social media column, under the logo and site links. The website is simple
and when it clicked takes one to another pace, undetailed and usually uninformative. The main
graphic hints a main event coming up or occurring. In their page, currently it is advertising their
training program for the OC Marathon and Half Marathon. The site is unique in that it is not
genetic or like any of the corporate websites. The lack of graphics, product descriptions, and an
ecommerce store is a turn –off for customers who research stores before buying, but once in
many are convinced. This website is part of their product strategy to get consumers into their
shoes and customer service. The site is mainly to promote their community of runners and their
running club, for they are in the business of getting customers to enjoy and experience like never
before.
Strengths:
The website is easy to survey and stay informed on events
Great gateway to virtually connect with consumers on events and products.
Weaknesses:
Should have more information on products
Should have a store-pickup function to allow consumers the ability to pay and pickup
shoes
22
______________________________________________________________________________
The Competitive Analysis ______________________________________________________________________________
Finish Line
23
Positioning Map 1
Staff Knowledge and Consistency of Products in Stock
Why: In this chart, Snail’s Pace has the better advantage product stock consistency, and variety.
The opportunity cost of vast amount of stock variety is full product knowledge, in other words
more products for employees to know about (C.I. # 7). The corporation has access to many
vendors and shipments due to the large the 624 stores opened nationwide, in malls and store
outlets (Web. # 9, 10). Nike is also their largest supplier of shoe products, with Under Armor
providing most of the accessories of the stores. Their corporate connections with vendors, allows
them to be consist with products consumers can rely on having on store or online. The online
store allows customers to be any to order any Finish Line product to be picked up, shipped, or
stored for personal pickup. The success of Finish Line has to do their ability to get their
customers their products conveniently, quickly, and specifically (Web. # 11; P.I. # 6). Compared
to Snail’s Pace, they rise in consistency and product availability. Customer feel their purchasing
power is stronger in Finish Line and feel comfortable acquiring their own products, even if they
do not know what they need (P.I. # 7, C.I # 12).
Pro
duct
Sto
ck
Consi
sten
cy
Les
s P
rod
uct
s
Consi
sten
cy
Less Knowledgeable
Staff
Very Knowledgeable
Staff
Snail’s Pace
Finish Line
Foot Locker
Nike
24
Positioning Map 2
Affordability and Product Quality
Why: Out of the rest of the other shoe companies, Finish Line, uniquely, is the closet to being
affordable and average quality. Foot Locker, a direct competitor, is near the axis of average
affordability and a bit above average quality. Finish Line is about providing a fashionable brand
for average wear, for average customers (P.I. # 8, 9). The quality of Finish Line is no obsolete or
defective, yet compared to premium firms such as Snail’s Pace and Nike, their product and price
ratio does not match. More would it cost to buy athletic wear from direct competitors, because
their product quality and product selections is better than Finish Line (P.I. # 2, 3; C.I. # 3, 4).
Finish Line, in sales, sells more shoes and profits more than Snail’s Pace and the Nike Store, and
next to Foot Locker are second in athletic shoe sales, considering their lower process and product
quality (Web. # 7, 8; P.I # 11).
More
Aff
ord
able
Les
s A
fford
able
Lower Product
Quality
Higher Product
Quality
Snail’s Pace
Finish Line
Foot Locker
Nike
25
Primary Target Market Analysis
1. Psychographic
Ranking: Psychographic is ranked first because there would be no for the specialty
athletic shoe stores without the fitness life style. Those who shop at Finish Line are
somewhat educated or aware of the variety in product and price they offer. Fitness is a
growing, surpassing diet plans, and becoming a reality for all consumers (Art. # 5).
a. Healthy
b. Active lifestyles
c. Comfortable
2. Demographic
Ranking: Ranked second because this corporation targets young, average income
consumers, who are appreciate and are able to purchase known brand shoes. These shoes
are inexpensive compared to Snail’s Pace, and those who desire to shop at any Finish
Line store is someone who can afford it. This correlates with people who are fitness
aware or active and needing affordable shoes.
a. Ages: Pre-teens, late teens and young adults (C.I. # 9, 20).
b. Middle Class (P.I. # 9, C.I. # 20).
c. Singles and young people (Art. #5).
3. Unique Benefits
Ranking: Unique benefits is third because consumers of these particular psychographic
and demographic profiles choose a shoe shop for its brand shoes and price, which is the
main way it differentiates itself from the competition. Finish Line is known to be provide
the shoes the people, consumer base, desire. They even it call it “resneakerization” the
process of finding the perfect pair for each customer.
a. High variety of well-known brand shoes
b. Quick store time purchasing
c. Online store and store pickup
d. Youth orientated
4. Unique Benefits
Ranking: Ranked fourth because the location of a Finish Line store is typically does not
affect the shopper’s decision to come here. People are willing to go to the store due to the
low prices and great variety of brand shoes.
a. Densely Populated
b. Store Outlets and Malls
c. Residential
d. High amounts of middle class consumers
26
Customer Experience/Product Analysis And
Strategies Discussion
Product Objective: Finish Line’s specific objective in developing their company is to make
customers find the right pair of athletic sneakers – to be a part of their lives in fitness. Their
accomplishment from store one to store 624 is due by selling the best various brand and sport
footwear at reasonable prices.
Analysis/Strategies: Finish Line is regard as being the shoe store for all footwear needs. They
pride themselves in carrying the a premium selection of footwear and athletic apparel from top
brands like Nike, Jordan, Adidas, Under Armour, Reebok, and more. Their value is not priced in
their shoes, for they are solely vendors, but their ability to provide the right shoes for the right
desire of the customer (Web. # 7, 8). Finish can be seen as a sports equipment broker, not
entitled only one brand or sport like the Nike store and Snail’s Pace, but to the best shoe brands.
Their strategy is having loyalty with the customers rather than the brand. For example, Finish
Line has a big contract with Nike, and it shows because each of their stores carry large sections
of Nikes. In 2013, they opened a Puma section in 10 of their stores, to promote their shoes and
sports apparel (Web. # 9). The point is their success is due to their ability to diversify their
product lines to match customer’s tastes. Customers also appreciate the company’s open
communication lines, through internet chat, customer service, and social media interfaces (C.I.
14; P.I. # 8). They take their brand products and customers seriously by considering modern
trends and by clearing displaying their product selections to meet customers’ needs (Web. # 7).
Strengths:
Top brand footwear and sports apparel (C.I. # 8, 9 12)
Variety of sport shoes and brands (C.I. # 8, 9, 12, 13)
Clear product deployment and display (Web. # 7; C.I. # 12)
Weaknesses:
Too much products to choose from (C.I # 9)
Returns policies are weak and at times misleading (Web. # 8; C.I. # 11)
Employees sometimes inattentive and not caring (Web. # 8, 9; C.I. # 11, 12, 13)
27
Pricing Analysis and Strategies Discussion
Snail’s Pace Finish Line Industry Average
Nike Lunars $110 $90 $85
Asics GT-1000 $100 $80 $70
Brooks Glycerin $150 $120 $110
Objective: Despite its lower prices, compared to Snail’s Pace, Finish Line pricing objective is
meeting beneath competition. With competitors such as Foot Locker, the Nike store, Snail’s
pace, and indirect competitors, Finish Line, aims to price its slightly lower. In the shoe retail
world brand vendors sell their shoes at relatively the same wholesale prices, depending on the
scale and consistency of orders made by retail shops (Web. # 14, 15).
Analysis/Strategies: Finish Line is notorious for selling various shoes for various customer’s
needs. While shoppers at Finish Line are generally those who have middle-class incomes than
majority of shoppers at Snail’s Pace, they admit the prices are high. In general, most customers
believe the price of shoes has gone higher (Web# 8, 14; C.I. # 7, 12). With such strong
completion in retail stores carrying average prices, Finish Line has been implementing new
strategies to cut prices, even more, to hopefully gain customer loyalty. In an industry where
brand shoes are accessible in all shoe shops and online, it is difficult to have a sustainable
customer base (Web # 15). For example, their main pricing strategy is by creating a discount
program which interacts customers online and on-store. The program is called the Winner’s
Circle, a creative named-program designed to encourage customers to shop at Finish Line to gain
points, which turn into discounts and membership opportunities. As a members they save money
when spending at Finish Line (Web. # 7). Price cuts will most likely never go lower than
industry standards, but it will eventually eliminate their profit margins. Regardless, Finish Line is
loyal to lower prices than their competition, and an increase will only make customers go to the
Foot Locker next door (Art. # 7).
Strengths:
Initiatives to have lower prices than most of the competition (Web. # 7, 8; C.I. # 12)
Well-known brands (Web. # 15; C.I. # 11, 12)
Weaknesses:
Still deemed as expensive (Web. # 8, C.I. 7, 12)
28
Placing Analysis and Strategies Examples Discussion
Objective: Finish Line is located in the Brea Mall in Brea, CA. More than just the Brea Mall,
Finish Line is located in the Macy’s store, as part of the store’s athletic footwear department. It is
strategically located off the 57 freeway and between Brea’s busiest and populated streets,
Imperial Hwy and Birch St. The Brea Mall is one that shoppers from Fullerton, La Habra,
Placentia, etc. go to buy many of their needs and gifts. High income personal and fitness-aware
are within this area, which fall into Finish Line’s target market.
Analysis/Strategy: The exposure of retailors, restaurants, stores, and fitness establishments
make it convenient and ideal to shop for one or more products. This location has several
advantages for Finish Line and disadvantages. Being in the Brea Mall, in the Macy’s store,
specially, gives Finish Line the edge in foot traffic and company exposure. Both stores share an
alliance, in that Macy’s guarantees customers. Consumers looking to buy clothes can easily go to
Finish Line and get a pair of shoes all in the same area and time. Time and convenience is met in
this location. The only negative of being deep in the mall it is exposed like other stores, with
their own store fronts and signs. My first time trying to find Finish Line it took about twenty
minutes, being I had my friend with me looking and being a frequent visitor. On the upside
around the mal, a 24-Hour Fitness is located across the street, giving fitness/gym goers a place to
buy shoes. The high income area, and frequent traffic of citizens make Brea a great place to
shop. Disadvantages to this location is in a two mile radius, there are more than 3 shoe retail
locations that sell athletic footwear. In the mall alone, Foot Locker, Shoe City, Active, Vans, etc.
are found inside the mall. Not to mention, Snail’s Pace another direct competitor is right down
the street, who shares the same target market.
29
Strengths:
Partnership with Macy’s stores helps get more customers (Web. # 8; P.I. # 6)
Located in a mall with retail stores, restaurants all around to get customers to shop more
willingly (C.I. # 11, 12).
Next to parks, fitness centers, and schools (Web. # 8, 9)
Great amount of parking (C.I. # 7, 8).
Weaknesses:
Direct competitors very close, making more convenient options for customers (Web. # 7;
P.I. # 6, 7, 8).
Smaller selection than most stores (C.I #. 11, 13).
Hard to find (C.I. # 14).
Promotion Analysis and Strategies Examples Discussion
Objective: Finish Line’s promotion strategies would be to provide information, community
events, and increase customer loyalty.
Analysis/Strategies: Finish Line is a big corporation to understand is national audience and
sociological trends. The store in Brea understands their target market of high income and young
customers care more about experiencing good customer service and “fit” shoes. Shoppers realize
Finish Line is less expensive than other direct competitors with the same models they enjoy, and
they know through research. (Web. # 5, 7; Art. # 5). In an informational and digital age, many
consumers are doing research, starting with price. Finish Line has set their website to display
their products, prices, and benefits clearly and directly for customers to browse. Their website is
one of the best compared to their competitors, especially Snail’s Pace. Another promotion
strategy is their ability to connect with the community through events, charities, and
endorsements. Finish’s charity baby is the Finish Line Youth Foundation, where the company
creates races, charity events, and grants for young school children in urban areas (Web. # 7).
They also pick college, NBA, NFL, etc. stars to endorse their shoes, more basketball stars, being
their basketball Jordans and Nikes sell for higher profits than their other shoes (Art. # 17; Web. #
7, 9). In terms of gaining and maintaining customers, Finish Line has been working certain
programs and promotions to keep their stock price up and company afloat. The first thing Finish
Line did right was create a strong internet presence, in their website, social media sites, and apps.
They have created an updated outlet of communication, where one can directly connect to Finish
Line, in whatever store it may be. They provide a corporate number, a customer service
department, and an information presence on social media (P.I. # 6, 7; C.I. # 14). For example, if
one wants to know the price of new Nike Flyers, Finish Line will post its features and date of
sale. Much of their financial information is online and trends found in their Instagram or
Facebook for news on their new products. Lastly, they have created a promotion program called,
30
the Winner’s Circle, which in detail, allows customers to become members of the company, not
just in one location, but in all the Finish Line locations. Benefits include points that provide a
Finish catalog, free shipping offers, news, and new product updates. This strategy has given
Finish Line the ability to create a loyal customer base, to research and provide the best
services/products. The Winner’s Circle has differentiated them from other competitors, even
though most of them have implemented this idea. This promotion encourages customers to be
members who identify themselves with Finish Line (Art. # 7, 8; Web. # 7).
Strengths:
Clear and fast access to information (Web. # 5, 7; Art. # 5)
Youth outreaches (Building earlier clients at an early age) (Web. # 7)
Membership Promotions (Art. # 8; C.I. # 11, 12)
Weaknesses:
Promotions are not mentioned often in stores (C.I. # 7, 11, 12)
Employees are not aware of sales or informative about products and promotions (C.I.# 7,
8, 11, 12).
Website Analysis and Strategies Discussion
Website Objective: The Finish Line website (finishline.com) abides by their mission to finding
the right shoe for each customer. Whether one is playing basketball, running a 10k, or desiring
stylish footwear, Finish Line promises to the best brand sneakers. Their website caters for those
who crave athleticism or for those who desire stylish footwear. It is update with technological
features like graphics, blogs, and online shopping. The modern design of the site reflects the
modern design that all their stores occupy, and this site seems to accommodate their customers
with all their informative and product needs (Web. # 8; P.I. # 12).
Analysis/Strategies: Finish Line has an extensive and easy website to navigate which provides
links and pages with detailed information on their stores, products, and information on their
promotions and new product arrivals. The site also has information on the company, their
history, and values. Often customers do not look at company websites, but with access to the
online store and selection, many order products and pick-up items. Unfortunately, information on
products and promotions are not expressed or described on-store by employees, so the website
aids one to have a better understand of Finish Line and its offers. The website is clean, colorful,
and fully-equipment with a modern look, full of graphics and helpful guides. Their ethics are not
really displayed, for the reason it seems non-existent. In addition to the website and as touched
on in the Promotions Analysis Section of Finish Line, the company utilizes social media:
Facebook, blogs, Instagram, Twitter, etc. to communicate with their customers and potential
customers. They provide all sorts of products for all ages and sports, shoes and sports apparel.
The Youth Foundation and Winner’s Circle are both promotions listed on this site and allows
31
customers to sign up and donate. The best feature of Finish Line’s website is its online store,
featuring hundreds for products, all available for shipping and/or store pickup, giving customers
to ability to shop quickly, efficiently, and at the comfort of their home (Art. # 6, Web. # 7, 8).
Strengths:
Extremely informative on all products, especially shoes
Modern, graphical, and enjoyable to navigate
Online ordering is very convenient
Weaknesses:
Overwhelming with many sections (C.I. # 7)
32
______________________________________________________________________________
Time – Out ______________________________________________________________________________
33
Ethical Issues and Action Plan
A. Hypothetical situation: My running shop has enjoyed a successful 6 months and has
earned the interest and loyalty of many. The target market of my store has been the
majority youngsters, 12 and up, with some groups of people over their 20s, sport
enthusiastic and affiliated. One day, a local liquor store manager comes and seeks to
sponsor us, in order to create awareness of his store, Samis Viii Market & Liquor, who is
about 2 miles away from our location. He believes our store and running club would help
get his business known around the area, like “running billboards. The manager also
would like sponsor races, and create “pub runs”, a run around his location, where he
would provide free beer to aged-drinkers. The store will provide sponsorship money,
customers, and, of course, discounts on alcohol. The business believes they can get local
a lot of local people of La Mirada, Fullerton, and La Habra to join in the races, which can
mean potential clients for both parties. When asked to create a yearly contract, my store
declines because a majority of our clients are under age to drink, and those who are of
age are parents and who deem our shop not “youngster-friendly”. We believe alcohol is
not morally wrong, but exposing it, even at the slightest to our young members would not
be right or good business in the long run. This rejection leads to Samis Viii Market &
Liquor to sponsor all our competitors, and tarnish our name to potential clients who could
have been members of our store. The liquor store is offended to the idea that our shop
would not help them promote or sponsor us, being they have affluence and high number
of clients and willingly people.
B. There is good chance this store has financial and customer leverage being that has been
in existent in the community for years and well-known with five star ratings. Samis Viii
Market & Liquor’s threat is their ability to sponsor other competitors, and it is not
surprising because it is possible and in the works. Snail’s Pace, our direct competitor, is
in a small partnership with local bars in the community to host their “pub runs”. This
ideas is catching on and could be a potential platform for new customers and new
business to be come in. Yet, our store believes being loyal to the family-friendly and
high athletic members is more important without having a liquor store sponsorship.
C. The main dilemma in this situation is choosing not be sponsor by an alcoholic company
for races or product advertising. We believe it is wrong not to hinder and persuade (in
any way) drinking for underage athletes.
D. As a community running shop we will not support alcoholic beverages to our majority
underage clients or parents, because it distorts the family image in our community in
society. As Christian marketers and businessmen, we hold a responsibility, before God
to do what is good, and just refrain from doing wrong. 1 Corinthians 10: 23-24, speaks
about a Christian’s ability to do anything. Yet to do what is beneficial, to what is
constructive, and to do what is good, not for one’s sake, but for others’ sake. Clearly, is
not unlawfully, morally or religiously to drink, but let not any substance falter the faith
or conscience of anyone (1 Corinthians 10: 28).
34
E. My company would not sign anything or partner with any store that could potentially
hinder the atmosphere or conscience of our clients, especially since underage drinking
has led to many bad choices and accidents. In the face of strong opposition from our
competition, being sponsored by pubs, we will build on our stance for building up young
people and athletes of all ages in a family-orientated and high athletic environment. We
backup with our decision with some background information and past examples (not
necessarily bible verses, but information and athletic principles) so that people can see
we are serious about running, our products, and athleticism.
F. In the long run, integrity and family values will always be the priority of the shop and of
mine as a Christian in business. In this situation, I will stand on my decision to keep our
values and abide by them even at the point of losing potential clients or business. The
creation of a brand is difficult to build and maintain, but easily possible to destroy it,
with compromise. In this world society, we see how fast news can travel and how all our
methods of customer relation and communication can judge us and degrade our
respectable reputation. In facing this struggle of lost opportunity and criticism from the
liquor store, make a stance as the owner and explain how are important values do not
correlate with those of Samis Viii Market & Liquor. This does not mean that we will not
serve those who have different views than ours, but will partner with those whose values
counter ours-it’s just not good business.
35
S.W.O.T Analysis
Strengths:
A growing high demand for athletic equipment and sports apparel
The athletic shoe industry is predicted to keep growing as the increasing population needs
shoes and athletes need shoes
Fitness awareness is growing and more importantly more people are running than before
Being new in the industry, we will be able to be ‘niche” in the market
People quickly invest in perfecting the body, and running has proven to be one of the
methods for health and weight lost
Weaknesses:
There are already lots of retail shoe stores, athletic shoe stores, and now shoe stores with
running clubs
Brand shoes are not a competitive advantage to me, because almost all stores carry the
same brands and/or models
A running club creates a liability for the shop especially members under 18
The economy slowly down creates a lesser need for premium shoes
Opportunities:
Expanding new models, products, and running techniques
Corporate sponsorship from big brands and local businesses can increase finds and clients
A great running club helps attract new customers and gets them to buy memberships and
store products
Using new technology to create efficiency in inventory, communication, and products
Threats:
Increasing competition of running shops with running clubs
Online shoe companies: Amazon, Roadrunner; and indirect companies: Walmart, Sports
Authority, Payless
Competitors reducing shoe prices
Increase in suing companies
Going overboard with technology
36
Competitive Advantages
1. Problem: Lack of product knowledge, specifically, finding a good pair of “fit” shoes that
will satisfy customers (Art. # 5, 11, 17; C.I. # 1, 2, 4, 12).
Solution: My third product will be very informative and understandable on the principles
on comfort, safety, running, and techniques. The information will be displayed on our
website, detailed, and also general, with a runner’s guide. Employees as well, will
provide information, clear and accurate for customers to understand what they need.
Lastly, the store will literally and digitally display information for customers to read and
see for themselves, empowering them with general knowledge of the sport and
equipment.
2. Problem: There is little to no interaction with customers after a sale, and customer
retention is low because of this problem (P.I. # 1, 3, 8; C.I. # 5, 6, 12).
Solution: This is one of the most important problems to solve in this industry and
creating a great customer experience, consistently, will have customers want to come to
our shop. First, we will create an environment where customers can test shoes, learn
about the products, and fall in love with running. The running club will be establish for
all runners, and will be divided meeting performance capabilities of each member. The
shop will feel like a community and we will build on those members. Web and social
media interaction will be helpful in providing upcoming events, promotions, and
communications.
3. Problem: Customer service is lacking, employees and managers do not engage
efficiently with customers and their needs (Web. # 7, 8, 9; P.I. # 1; C.I. # 2, 3, 9, 14).
Solution: My solution to this problem is by hiring quality employees and store managers,
who are attentive/nice and experienced in running sports. These quality employees will
have training and incentives to provide the best customer service for each customer. Each
employee will be treated well so they understand and administer good service. Having
them involved in the running club and put them in charge of events which will empower
associates to work hard and effectively. We would hire current or past experienced
runners to operate the store, because their experience and expertise will be what makes
the shop the best in area.
4. Problem: Products advertised are out of stock or unavailable, has been a big turn-off for
customers looking for a particular pair or item (P.I. # 1, 5; C.I. # 11, 12).
Solution: At my location, we will have a high end inventory system synced with all our
products to the computer database, website, and employee tablets. Making sure we have
enough stock would mean to order a bit extra shoes for each product display. Over time,
we will calculate all the trends throughout the first few years to have a close estimation of
how much product we need each day. This information will update itself by first scanning
the product, to track it until purchased. Having each product available and not run out
will keep us consistent to demand and keep our customers happy. If a situation comes to
where the pair of shoes we advertised and told them we had, but went out of stock, we
would ship it to them instead for free. This method lets them know our mistake and our
ability to fix it quickly.
37
5. Problem: Return Policies in most athletic shoe retailers are complicated and often
customers are unfriendly to not getting refunds to their returned purchases (Art. #5; Web.
# 3, 7, 8).
Solution: While Snail’s Pace is adamant about only accepting returns if the shoes have
not been wore, other retail stores do not refund customers, even if they promote it. The
way our store would handle this situation is by giving customers a week to either trade
the shoes for another pair with the same value or store credit. This will be displayed in
the store next to the register for customers to know. This method keeps the money in the
store and any worn shoes we get will go into our Shoe Foundation, which publically
donates shoes to the less fortunate kids/adults in need. This solves any confusion and
misleading a customer might have with us, and builds our inventory for our charity
foundation which can be written off in taxes, full price, for each pair donated.
38
Internal Marketing Strategies for 3rd
Product
Systems of Quality & Consistency
Concern #1: Always have enough stock of brand models and sizes that we claim to sell.
Solution #1: Maintaining the best brands and having all shoes and sizes in stock is the most
important factor to my customers, because they are here to buy shoes. Ergo, I need to implement
systems that will constantly be updating and ensuring my customers what they need. I would
require accurate shipments from my suppliers to ensure I get exactly what I need, no more or
less. Having a computerized data system is ideal to keeping track of the merchandise brought in
and sold out.
Concern #2: With left over shoe models from past years, there needs to be way to profit from
them.
Solution #2: Older running shoe models left over from previous years, brand new, are taking
space and need to be gone. The first option to profiting from these older models is by offering
them exclusively to club and store members at a highly reduced price. This will make members
feel exclusive and be an incentive to stay in the running club. The rest of the shoes will go to the
Shoe foundation or the Magic Shoe Foundation, because it will promote our shop as well as get
full retail price, tax right-offs for each pair. Never will our shop have a discount sale for it will
reduce the value of our products and brand image.
Employee Satisfaction & Training
Concern #1: Employees who feel a lack of appreciation for the work they do, results in
unhappiness in the workplace, which reflects on their behavior with customers.
Solution #1: A job is a job, but working at my shop will allow employees to grow within the
shop, as well as, in their running careers/experiences. This place is a chill environment,
competitive on the track and I want my employees to feel elite and improving in their abilities
off the field. Doing employee parities is a must, and I want them to be involved with themselves,
be a family, in a home they would love to come. The HR program will start small, but involve
employees on all occasions and build trust within each other, their bosses, and the store values. If
they love the mission of our shop, their joy will be displayed with customers. Trainings/meetings
will be every two weeks and it will be more like a run or hike, where we as a team can have fun
and learn about the latest trends as well as talk about what is going on in the shop. There is a
special bond when people come together in sports, I will use that to bring this team together.
Concern #2: Employees being late/showing up to work stressed due to school and life
Solution #2: A positive in having younger, athletes/runners is scheduling them in the right times
to have enough employees on the floor. Most of them are probably going to be late high
schoolers or college students, and change is inevitable. The solution is creating an environment
where a lot of their friends are in the store or are employees, who encourage them to come to
work. Also have a great scheduler would help juggle times. Late policies will be established, but
relaxed, unless an employee is constantly and inexcusably late- he or she will be fired.
39
Customer Service
Concern #1: Employees well informed and equipped to answer all questions about products,
running techniques, and club information.
Solution #1: Before hiring employees, candidates will already general knowledge and
experience concerning products and anaerobic exercising techniques. Managers will then train
employees on the store culture, products, running techniques, and running clubs/events. This is
important for employees to understand what is going around the shop and aware of the changes
and innovations. A training session will occur for each employee(s) and then join the crew in all
activities to better understand the functions and roles they can move up to eventually. Bi-weekly
meetings will occur for all employees to bring everyone together as well as inform each one on
what is new or needs changes.
Concern #2: Employees will stick to their customers-always attentive to their needs, still the end
of the sale.
Solution #2: This will be done by creating a work culture in which they are happy to be a part
of, and implementing strategy much Snail’s Pace where every worker does everything, even ring
up their own sales. For example, John can be working on sales for a few hours, stock later in the
day, and lead a group of runners for one night (depending on the day’s situation and employee’s
schedule). Having various work tasks helps us know what the employees are best at, and also to
keep them from being “bored” at one set position. I believe employees doing the same daily
things day after day causes them frustration and it can affect how they interact with customers.
This change-up of daily tasks will prevent employee dissatisfaction and customer mistreatment.
Research Systems
Concern #1: Controlling store traffic and space, avoiding areas to be feel cramped or stressful.
Solution # 1: Store traffic and space can either make or break the store experience for a
customer. This shop is meant to feel open, relaxing, and fitness crazy, in order for customers to
experience the benefits of running and acquiring sportswear. In other words, the environment has
to create a chill atmosphere for shopping as well as eagerness feeling to run. Having many of the
walls, windows will give that modern and nature look, surrounded by green in the outside. On
the sides the shoes will be displayed with the sunlight shilling on them during the day, and lights
during the night. The walls will have multiple sections to display the products with center isles
displaying other merchandise. In the center will be locker seats to fit shoes, the register will be in
the center end, and the lounge in the middle center surround by TVs. Other running equipment
for shoe trials and fun gadgets will be outside to leave space for people to try and shop for
products. Using the outside and inside will give the shop space and give people room to roam
and see the products and services we provide.
Concern #2: Have a consistent running schedules and members, with various trails and running
routes.
Solution #2: In the world of running have a consistency is great in certain area, but in terms of
performance and endurance, one must strive to go above their limits. In this shop, the running
will be key to encouraging members to thrive in their running and fitness abilities. We will
provide everything they need, from the right pair of shoes, shorts, to the knowledge and
40
community. The club will combined with our merchandise will have members falling in love
with the sport. To make sure this club is successful, we as a store must make sure everything, the
running schedules, routes, and the trainers are available and performing perfectly. The
importance of safety and fun is crucial to creating a great running club. The consistency of the
program is important, yet change is good. In terms of making the club enjoyable, it is necessary
to change the locations, and routes at times so members do not get bored running the same
routes. A perfect schedule and crew, mixed with various running grounds will make the club
more of a community than just members.
41
Purpose Statement/ Mandate
We are a community of progressive and consistent runners, committed to training, teaching, and
encouraging each one to be better on and off the track. We provide the best brand products, with
various models and accommodations to find the right “fit” for each athlete. We are dedicate to
you, to fully equip one to become a better person, a healthy person, a fit person, a runner. Our
values are embedded in our conduct of business to support anyone, in any state of physical shape
to be better athletes. Our high-trained and experienced employees will assist all our customers’
needs and promise to dedicate ourselves to your improvement in fitness. We want to know that
our customers left our stores better informed, equipped, and encouraged. We desire the same
love we have for running to become your own.
42
______________________________________________________________________________
3rd Product ______________________________________________________________________________
Abel Runners
43
While the increase of competition in the athletic shoe industry can seem off-putting to
starting a completely new merchandise and running shop, it’s because the increase of consumer
demand of athletic shoes and fitness clubs is increasing quicker. Abel Runners would work and
thrive because it creates a community of runners who can purchase athletic shoes and apparel
and use them for shop activities and running opportunities. My shop creates a place where
ordinary people, preferably, current or past runners can buy whatever they need and provide
training as well. Fitness and health awareness is growing, due cardio heart disease leading as
the number one death killer in the United States. Abel Runners is an athletic shop that stays in
tune with its target market’s demands as well as stay ahead of trends and cultural factors.
Customers will see what they’ve been missing once they experience the caring and experienced
running shop that is Abel Runners.
44
Positioning Map 1
Staff Knowledge and Consistency of Products in Stock
Why: Abel Runners will be known as the shop customers can go to get all their question
answered and not feel the need to look up any technical or product information before they get to
the store. While Snail’s Pace has a knowledgeable and somewhat running experienced staff,
customers have expressed a desire for information to be incorporated in the store and running
club. Customers find information out on their own while there’re on store, and being in this
society, independent research is very important for consumers in order to be convinced of any
product or service (Art. # 17, 18; Web. # 14; C.I. # 5). Newer customers, commonly, admit a
sense of embarrassment when asking about basic or specific questions about types of shoes and
the differences in them. Some feel that they take too much of the employees’ time, turning them
away for asking questions (Web. # 14; C.I. 15 ,16). Abel Runners’ main goal will be create an
environment where information is easily accessible around the store and from our employees.
Employee encouragement and questioning will make customers feel their thoughts and opinions
are important and matter, as they do on marketing standpoint. Abel Roots would also be known
for reliability and consistency of products in stock and readiness to inform shoppers, in rare
cases, if an essential item is out of stock. Our priority will be to eliminate any confusion or
Pro
duct
Sto
ck
Consi
sten
cy
Les
s P
rod
uct
s
Consi
sten
cy
Less Knowledgeable
Staff
Very Knowledgeable
Staff
Snail’s Pace
Finish Line
Foot Locker
Nike
A.B.
45
doubts about our shop, products, and running club, consistently informing them and being
prepared for unpredictable issues such as items out of stock.
Positioning Map 2
Affordability and Product Quality
Why: Abel Runners would be in direct competition with Snail’s Pace and Finish Line in
affordability and quality, especially since this industry is constant with fierce price wars and
quality innovations. Customers look for there to be a good balance of between the quality of a
product and affordability (At. # 2, 7; Web. # 1, 8; C.I. # 10). Yet, having premium products with
premium is ideal to profit from this business. Unlike, Snail’s Pace, having extremely high prices
for products is wise, yet the higher the price, in this industry, relates to the high quality of a
product (Web. # 14, 15). We at Abel Runners put quality as our number one priority, because
footwear must be safe, durable, and comfortable to reduce chances of short term or long term
damage. Finding the “fit” shoes is crucial for the physical health of customers, so we can prevent
them from getting knee injuries, shin splints, ankle twisting, etc. Our shop will be very close to
the same quality as Snail’s Pace with similar pricing to Finish Line, however the major
difference will be that Abel Runners will endorse a membership program for customer and
running club members, with promotions and opportunities regular customers do not share in.
More
Aff
ord
able
Les
s A
fford
able
Lower Product
Quality
Higher Product
Quality
Snail’s Pace
Finish Line
Foot Locker
Nike
A.B.
46
This will encourage more customers to become members of the shop, in which we can profit
from their fitness journey with Abel Runners (C.I. # 14, 15, 17).
Primary Target Market Analysis
1. Primary Psychographic
Why: The lifestyle for Abel Runners pertains to people who are current runners, or
customers striving to become runners – those who are fitness regulars who care being
active and progressive. My shop chooses to intentionally serve those who are live a busy,
fast-pace lifestyle, because with running progressive speed is good for the sport. Inside
the shop things are relative mellow and calm, reinforced by the chill store atmosphere. In
those times of wait and shoe trials, entertainment is provide around the store and Abel
Runners gives one the change to experience running before even buying a pair of shoes
(P.I. # 5). This decision to combine a mellow environment on the store floor with an
exhilarating experience on the road came to be seeing the trend of people who enjoy the
balance and relaxation and fun.
Ranking: Psychographic is the first because the number one reason why consumers buy
athletic shoes is because of their health – those who do not choose an active style, ours in
particular, will not pay more money buy these products/services.
1. Health conscious
2. Physically active
3. Educated
2. Primary Benefits
Why: These benefits were chosen based off what matters most to customers, especially
factors that other shops are missing. For example, information on new product and events
are very important for customers, especially members. We want to make it a regular
agenda to incorporate all the information in every part of the store and in our online
connections (Art. # 3, 5, 19; C.I. # 14; P.I. # 5). Abel Runners also recognizes the
importance of community base within customers/members and that is our goal to build
and maintain communities that represent our shop.
Ranking: Primary benefits is second because shoppers will choose Abel Runners based
on what makes them different from other competitors, and the difference is major enough
to create competitive advantage.
1. High quality products
2. Promotions for members
3. Shoe children’s foundation for teens
4. Trending technology that improves speed and clarity of information
5. Running clubs and events
6. Extremely informative, experienced, and friendly employees
3. Primary Geographic
Why: This was chosen because the primary demographic and psychographic audience of
Abel Runners lives near a residential area near major streets. Being near a college,
schools, major highways (Beach and Rosecrans), shopping centers, parks, and running
47
trails make it ideal and convenient for running and shopping. This area will attract
customers in and provide the running club great places to run that are not far from the
store. Research has shown that many customers like to have everything in one place (Art.
# 7; P.I. # 1, 2, 5).
Ranking: Geographic is third because the location of shop is important in attracting
customers as well as giving them space to run.
1. Near schools, and a college
2. Lots of parks, trails, and hills to run for the club; all very close
3. Residential
4. Located near major streets (Imperial, Beach, and Rosecrans)
4. Primary Demographic
Why: This demographic was chosen based off of the type of people who shop at athletic
shoe and apparel stores. However, the shop will gear towards young adults, and adults
around their 30s and early 40s. My products and services will be programed around the
target market, providing stylish, yet comfortable footwear, and make routes and events
centered on the abilities and culture of the member community (Web. # 4; P.I. # 5).
Ranking: Demographic is fourth because a community’s demographic is important as to
why customers shop, and run even if it is not relatively near their homes. Abel Runners
will have shoes that match the terrain of the area (sidewalk, asphalt, or grass) and gather
the local people of neighboring cities: La Mirada, La Habra, Fullerton, etc.
1. Ages 18 – 40’s
2. Caucasian and some minor groups (Mexican, Chinese…)
3. Singles and young couples
4. Late high schoolers, college students, and early career workers
48
Customer Experience/Product Analysis and
Strategies Discussion
Product Objective: The objective of Abel Runners is having customers interacting and being
informed constantly, on-store campus and off-store. Abel Runner members come first in our
shop, as well as our first-time shoppers. The focus is to create the experience of “community
fitness”, where a group of people can come to a place to run and enjoy each other. Affordability
and quality will be a must yet not what differentiates Abel Runners from other retail shoe shops,
for it will be the service alongside with a community that will give members a reason to shop at
our store. Abel Runners will focus on the well-being and convenience of every customer.
Analysis/Strategies: Abel runners will combine highly employee experience and knowledge
with innovative technology. In a driving digital age, it is important to meet the times, but crucial
to balance the uses of technology to not counter quality customer service (PI. # 5). Firms in the
athletic shoe industry are either highly technical and rely on computers to run their business, or
are outdated and not interactive with the modern culture of their target markets. Abel Runners
sets itself apart by successfully combining both strategies. Customer service in this industry is
highly recommended because much of the competition is fleeting from that area. The key to have
outstanding customer service is by hiring the right employees for the business, people that fit the
Abel Runners’ brand. The types of employees needed are runners, slightly educated, more
experienced in the sport of running; that are willing to learn and stay active. These floor
employees will be skilled in almost all functions of the shop, which will encourage employees
and tarnish boredom. Employee satisfaction and empowerment will push employees to love
helping customers. Technology will keep the business afloat, current, and up-to-date, when
installed a computerized inventory system that logs in and out products, which just scans. Each
computer and tablet in the store will update the inventory list, so front floor employees can see
on the spot whether an item is on stock or not without having to go back. The list will be specific
is displaying returns, new models coming or in stock, older models left in the back, etc. The
tablets, each employee carries, will give them visual aids for customers to see firsthand our
products, information, and graphic illustrations of products and running techniques. Innovative
fitness equipment will essential for customers to experience running on a small scale. Leg-
powered bikes that power light bulbs, treadmills with times, feet calculators, etc. will give
customers a feel for their shoes and provide self-entertainment. For example, dual treadmills will
be set together where two customers can race each other, and the one with the best time, or
record wins. Creating competitive games on-site and giving customers opportunities to
experience running is ideal to creating an area of trust, competition, fun, and expertise (C.I. # 11,
14, 19).
Why: Setting apart Abel Runners from other retail companies is crucial and needs to be done
right the first time and every time, a consistency members can trust being in our shop. These
specific strategies have been chosen based on the most prominent concerns and ideas of
customers (C.I. # 7, 9, 10, 11, 14). With Southern California good weather and the social-culture
of fast-pace individuals, s shop that meets the needs of great quality and service is not enough.
Therefore, Abel Runners goes beyond and meets the deep needs to belong, accomplished, and
progressive (Art. # 4, 5).
49
Pricing Analysis & Strategy Examples Discussion
Snail’s Pace Finish Line Abel Runners Industry Average
Nike Lunars $110 $90 $100 $85
Asics GT-1000 $100 $80 $90 $70
Brooks Glycerin $150 $120 $135 $110
Pricing Objective: The price objective of Abel Runners is to meet the competition. Looking
from the chart, AR’s rarely goes below the price of the affordable Finish Line – it is always in
the middle, not under Finish Line, but under Snail’s Pace prices. Its purpose in pricing is selling
its products slightly above the industry average, to cushion some profits in, yet offering
promotion deals that members can receive and save, that Finish Line and Snail’s Pace do not
offer.
Analysis/Strategies: Abel Runners unlike its competition does not offer or advertise discounts
or sales to customers– the purpose is to get customers to be store and/or club members to receive
special “deals”, which leads to price reductions and promotions. For example Costco, only takes
in Costco Members, and each membership has different levels of membership that guarantee
certain shopping rights and discounts to their members. This helps Costco members get great
deals, without promoting discount sales, which can bring down the brand image or lower
unnecessary profit margins. For Costco, they receive loyal, long-term customers, and a
membership list for current and future marketing research. Abel Runners will entitle the same
idea, without just having members allowed, but creating the idea that by being a member one is a
part of the shop. A huge incentive to being a club member is unlike any shop, we give each new
member a free pair of base running shoes, average, but durable. The idea is make members feel
special through investing in them, as well as getting them used wearing our shoes. In about 4
months or so, they will need new shoes, and they will buy it from us. Rewarding members with
special offers keeps the loyal and unwilling to buy from other competitors.
Why: Customers who ask for discounts and savings will be encouraged to become members,
with a membership fee for the year, and receive membership deals, promotions, and exclusive
information on new arrivals and events (C.I. # 1, 2, 4, 10, 11, 12). Though Finish Line has more
sales and discounts than Snail’s and even my shop, Abel Runners is able to still gain more sales
through maximizing customer service and effectively using technology. The loyalty program will
offer everything customers from Snail’s Pace and Finish Line need, using our employees and
technologies to service those desires (C.I. # 4, 10, 16).
50
Placing Analysis And Strategy Examples Discussion
51
Objective: Abel Runners is located in the same area as the popular shopping center, Los Coyotes
Mall Center that offers coffee shops, ice cream parlors, restaurants, and some private owned
retail stores. It is located on the corner of Rosecrans and Beach, minutes from residential homes,
in walking distance to big parks and trails, and a few miles off schools and Biola University. The
closet athletic shoe store is 10 minutes away and the closet running club is 7 miles away.
Analysis: Abel Runners is strategically located in a highly busy, residential, and park-friendly
area. All three help get customers to shop at AR and enjoy fun trails to run around. Those who
live around the area are middle class, some upper-middle class, who live in the hills bordering
Fullerton, La Habra, and La Mirada. Basically, a majority of the nice parts of these cities
surround Abel Runners Shop (C.I. # 19). The area is large, paved, hilly, safe, and filled with
parks – in other words perfect for running. The biggest contributions of the neighbor is Ralph
Clark Regional Park and Coyote Creek Bike trail, because these locations serve as great running
routes that can be adjusted for each club level, and changed to avoid boredom in running the
same routes (Web. # 4, 5). A concern Ariana, the store manager at Snail’s Pace of Fountain
Valley, mentioned was the difficulty of their location and not being able to meet at the store for
runs, being it was unsafe. The president and vice president of the running club at the Brea
location mentioned how it would be ideal if they had access to parks and trails nearby and not
have to drive a couple miles to meet (P.I. # 2, 3, 5). Abel Runners Shop is located in this corner,
specifically to avoid confusion on meeting in a different location to run. Having the club
members meet at the store brings the store and the club together, and makes it easier for
members to associate with the store and buy products (P.I. #3). The center also has enough space
for outside equipment to get people interacting inside and outside to best utilize the space of the
store. Los Coyotes also has enough parking space, which is important for customers (C.I. # 4 ,
5).
Why: This location was chosen with a customer’s convenience in mind as well as where I could
find a large portion of my target audience without being a very similar shoe shop and club in the
area. Customers using enjoy going to retail stores where there are other retail stores, yet being I
am one of the few in the area, and the only shoe shop in the small radius, gives me the advantage
for local peoples to shop here (Web. # 1, 5). The restaurants and coffee shops surrounding my
shop are opportunities for members to get better aquatinted and have fun after runs. Abel
Runners will stick out with its modern look and customer commotion. When one sees runners
running around the trails and neighbors, they will say it’s those runners from Abel Runners’
Shop.
52
Promotion Analysis And Strategy Examples
Promotion Objective: Abel Runners’ primary promotion strategy is its running club. Simply,
Abel Runners spends little to no money on TV ads, cable showings, billboards, or fliers, but use
word-to-mouth to build its popularity. It will differentiate itself from the many competitors out
there, especially Finish Line and Snail’ Pace.
Analysis/Strategies: Abel Runners will be known for its ability to build a community with its
customers, in the store and on the track. The running club is the shop’s main promotion, next to
word-of-mouth, and having an online presence (P.I. # 5). The club is designed to have runners of
all physical levels to run together with others in their same level. The club is broken up in four
levels: level one is for beginners, level two is for moderate runners, level three is for advanced
runners, and level four is for marathon and half marathon trainers. All groups will meet at the
same time in the shop together to socialize for a bit, then each group will break off into different
routes. Each time, routes are switched, and even though one group may be running the same
route as the other, the difference is in miles. Each level from level one to four is different in the
pace and amount of miles, and as one or a team progresses can move up. This progressive system
allows runners to grow in their health, fitness abilities, and confidence. One, once was a couch
potato, now is training for the half marathon. We believe transformations and growth is the key
to inspiring members to grow, and Abel Runners will be there to support and equip them. The
club allows the shoes and sports apparel to useful and not just used for comfort (Art. #19).
Simply, when people run, they need to buy a “fit” pair of running shoes, shirts, shorts, etc. and
we conveniently are a store that provides those needs. Our premium products and excellent
service will keep our members buying from Abel Runners and keep the money in our store rather
than in other competitors’ stores. Another promotion to keep our members brand loyal is by
giving each new club member a free pair of our running shoes. After paying the membership fee
(which covers the cost for the pair and a little more), a free pair of trainers will be handed down
to each member, with the purpose of getting them hooked on our products. The free shoes,
community, and fitness opportunities are convincing factors for most to become members (C.I. #
13, 17). Along with our club will be events for members to interact with each other besides
running. These events will host discounts with neighboring shops around, and partnering with
them will mutually increase all our businesses.
Why: I am choosing these promotions based on being an extremely new brand and
accommodating our target audience. We will heavily utilize free advertisement, mainly social
media sites: Facebook, Meeting, Instagram, Twitter, etc. to give our brand personality, and
positively establish our shop online (Art, # 8). The purpose of the company website is to inform
consumers about us and interact with them as well through blogs and chats. Maximizing
technology will help us reach out to many potential customers, who are, in this information era,
great researchers. Our presence on the web is to reflect on company on site (P.I. # 5).
53
Website Analysis And Strategies Discussion
Website Objective: The website of Abel Runners will reflect the goals and values of the
company with a modern and easy to navigate design. The online experience is to illustrate the
amazing on-store experience – so much that customers who come to discover this experience
themselves.
Analysis/Strategies: The Abel Runners’ website will be as innovative in design as the
technology is in-store. The front page will be graphical with various videos, photos, and blogs of
members and events. On the left hand side of the page will be a member blog, where members
and non-members can talk about their experiences. There will also be postings in the front page,
big, on upcoming events and major stories. On top will be our history page, club member page,
product page, running info page, contact page, race sign-up page, and our employment page. The
website will be catered to technological consumers, but easy enough for older generations to
surf. The website will not be wordy, to not give away all our information found in the store, and
also to not bore online consumers. The website offers a membership page where members can
blog, chat, and interact with other members and some of the employees. Members will also have
access to post pictures on our website and Instagram, with a hired programmer maintaining the
sites. There will be no ecommerce page, for it is best that customers check out the shoes for
themselves. The page will just list all the products and if a member can unlock more products
that others do not have to reserve for pickup in-store. This process allows customers to come into
the store and get the right pair, because one’s personal choice of shoes may not be the right fit.
The website is also personalized for members who can have their page, where they can custom
make the background and some the features. It also keeps track of recent purchases, styles, and
events that might show of interest to one. Lastly, it provides a running journal, and a map route
of runs done with the club and done independently. In this site, members can engage with the
Abel Runners’ community as well as be self-motivate to thrive in their running journeys.
Why: While there were a few complaints about company websites, Abel Runners is commit to
create a grand online presence that excites consumers to visit and later join our shop. Many of
my competitors have genetic websites that simply inform and order shoes, so
www.abelrunners.com will give consumers an interactive experience, reflecting the shop’s
culture. Having a great website that not informs members, but builds on the AR community is a
competitive advantage, differentiating us from the competition.
54
______________________________________________________________________________
List of Works Consulted ______________________________________________________________________________
55
Articles
Article #1: Zbar, J. D. Athletic shoe marketers step to new market. Advertising Age, 67.
September 1996.
Why Relevant: The article illustrates the journey shoe industries, like Adidas, trying to
dominate foreign markets, fighting global competition for niches such as age groups, sports
groups, etc.
Article #2: J. P.Athletic-shoe industry likely to be sluggish --- analysts don't see jumps of the
past as consumers spend conservatively. Wall Street Journal. June 1991.
Why Relevant: Top shoe companies are competing internationally, where domestic
companies like Nike, Reebok , are fighting major profit increases in foreign markets
against Adidas, Stride Rite, etc.
Article #3: "ATHLETIC SHOES PICK UP THEIR STRIDE." Advertising Age. October 2015.
Why Relevant: The Article reminds the rise of profits in athletic shoes during the 90s and
how intensive advertising and sponsorship has made top firms very rich.
Article #4: Bachman, Rachel. "Better than Barefoot: Running Shoes Seek Middle Ground." Wall
Street Journal. July 2014.
Why Relevant: Article introduces a cultural wave way of barefoot running. This idea has
companies innovating and profiting from creating “barefoot wear” rather than lose the
market to permanent barefoot running.
Article #5: Rubin, James P. "Picking the Right Pair of Running Shoes." Investor's Business
Daily. November 2008.
Why Relevant: This a bias article explaining the importance of finding shoes that fit one’s
comfort, safety, durability and quality expectations.
Article #6: Germano, Sara. "Corporate News: 'Barefoot' Running Fad Falling Out of Favor ---
Sales of Thin-Soled Shoes, some Looking Like Gloves, Take a Pounding; Benefits are
Overblown." Wall Street Journal. May 2014.
Why Relevant: This article explains the fad of barefoot wear as a “once in a lifetime” fad
that increased sales, but plummeted to disastrous losses.
Article #7: Joseph Pereira."Women Jump Ahead of Men in Purchases of Athletic Shoes." Wall
Street Journal (1923 - Current file). May 1995.
Why Relevant: This article explains the jumpstart of women who started to buy running
shoes more than men, when before this time women did not exercise due to limited time,
gender inequality, etc.
Article #8: Elizabeth J. "Iverson Computer Maker's Revenue Shrinks, it Launches a Plan to
Produce Athletic Shoes.". November 1992.
Why Relevant: This article shows a company nearing bankruptcy in computers, changes to
making custom shoes people can order online or in-store.
56
Article #9: Dinato. "Biomechanical Variables and Perception of Comfort in Running Shoes with
Different Cushioning Technologies." Journal of Science and Medicine in Sport . May 2015.
Why Relevant: This article is very informative in describing the materials made in shoes to
provide comfort. The conclusion states comfort is not just based on general “soft”
materials, for it varies on the person and variation of materials used.
Article #10: Brunick, Tom, and Amby Burfoot. "The Care and Feeding of Your Running Shoes."
Runner's World 02 1996. October 2015.
Why Relevant: This insight article helps consumers know how to properly care for their
shoes. This information should be promoted by stores as well as sell care products to helps
customers.
Article #11: "RUNNING SHOES: The Fit Matters most." Consumer reports. August 2008.
Why Relevant: The article test runs different running shoes and through their extensive
analysis have found what shoe products do well in and need to improve.
Article #12: Almond, E. RUNNING. Los Angeles Times (1923-Current File). April 2009.
Why Relevant: This article shares the story of a running club and how running shoe stores
are forming clubs where clients can be encouraged to run.
Article #13: LOCAL RUNNING CLUBS HELP PEOPLE FOCUS ON FITNESS. US Fed News
Service, Including US State News. March 2013.
Why Relevant: This article establish the NEED for running clubs, especially in a running
shoe, for running is a great avenue for continuous fitness.
Article #14: Germano, Sara. "Skechers Strides into Second Place in U.S. Sports Footwear Market;
Casual Footwear Brand Gives Athletic-Shoe Companies a Run for their Money." Wall Street Journal
(Online). May 2015.
Why Relevant: This article illustrates the rise in a particular, new brand, and how it is
competing with top running shoe brands. It also explains the risk in false advertising,
which Sketchers paid $40 million to the FTC.
Article #15: Dagher, Veronica. "Toning-Shoe Makers Seek to Broaden Appeal." Wall Street
Journal. September 2010.
Why Relevant: This article display corporate “fights” over new product running shoes,
that believe can branch other target markets.
Article #16: Marilyn. "Nike, Under Armour Gain Speed in Running Shoe Sales." Investor's
Business Daily. June 2014.
Why Relevant: The article talks about brands like Nike and Under Armour, creating
family footwear, and even a new shoe, the Flex which has skyrocketed sales. This shows
new markets and new products exist and need to be tackled right and quickly.
Article #17: Bachman, Rachel. "The Just-Right Running Shoe; Runners Race for a Middle
Ground between Earlier Design Trends." Wall Street Journal (Online). July 2014.
Why Relevant: This is an amazing article which speaks about the current market, sales,
and need for innovation in athletic shoe designs.
57
Article #18: Mak, Tim. "New Balance Lobbies Congress to make the U.S. Military's Only
Running Shoe." The Daily Beast. September 2014.
Why Relevant: Product expansion has pushed even into the U.S. Military. Skechers has
made it where they manufacture shoes in the U.S. to land a deal with the Military.
Article #19: Dusen, Steven. "The Manufacturing Practices of Nike and Its Competitors."UNC -
Chapel Hill. November 2015.
Why Relevant: The breakdown of the industry, its players, revenues, and
ethic/environmental issues help in understanding the industry as a whole.
Article #20: Bell, Pinos. “Athletic Footwear Industry”. June 2014.
Why Relevant: This article display an industry outlook on top sportswear companies, and
explains pricing strategies and market finance statistics.
Websites
Website #1: http://www.yelp/snailspace, last viewed 10-12-15
Why Relevant: This site rates the store by customer reviews: Lots of great reviews,
insightful.
Website #2: http://www.asnailspace.net/About-Us.html, last viewed 10-01-15
Why Relevant: This is one of my stores of the two. This page helps see who Snail’s Pace is in
the market.
Website #3: http://articles.latimes.com, last viewed 10-01-15
Why Relevant: This article from the LA Times share a story about Snail’s Pace dominance
in SolCal. This site shares the story of how this store is number one in shoes stores in California.
Website #4: http://running.competitor.com, last viewed 10-01-15
Why Relevant: This site compares competitors with Snail’s Pace and evaluates stores by
consumer ranking.
Website #5: http://www.trailrunnermag.com/, last viewed 10-01-15
Why Relevant: This site is more on runners competing in sponsored races by stores like
Snail’s Pace, Nike, etc. Snail’s Pace sponsors’ runners to race in many races.
Website #6: https://www.californiarunners.org/news/article/5, last viewed 10-01-15
Why Relevant: The website compares the running teams formed from stores. Snail’s Pace is
a leading competitor, but other clubs, especially in NorCal lead the industry.
58
Website #7: www.finishline.com, last viewed 10-07-15
Why Relevant: Website displays the store’s bio, store, and company. This site is very well-
put and useful in choosing a diverse amount of training equipment.
Website #8: http://www.yelp.com/biz/finish-line-, last viewed 10-07-15
Why Relevant: This site displays Finish Line by consumers’ reviews. Immediately, I could
tell this store has bad customer service, due to the reviews of the majority of previous customers.
Website #9: http://www.consumeraffairs.com/retail/finish-line.html, last viewed 10-07-15
Why Relevant: This consumer-based site, like Yelp, points out customer comments on the
store, employees, and products. More in particular it points out the negative customer
reviews to understand the flaws of the company.
Website #10: http://topics.nytimes.com/, last viewed 10-07-15
Why Relevant: The topic on the New York Times, post on the site, Finish Line’s financials.
This helps understand the growth/decline of the company’s state.
Website #11: http://www.wsj.com/articles/finish-line, last viewed 10-07-15
Why Relevant: This financial website helps with the forecasting of Finish Line’s financial
future, comparing it with present and past trends.
Website #12: https://www.facebook.com/asnailspace, last viewed 10-15-15
Why Relevant: This is a personal company site that is helpful to connect and receive
information from current members, managers, employees, and customers.
Website #13: http://www.statisticbrain.com/footwear-industry, Last viewed 11-15-15
Why Relevant: This site helps illustrate the present industry of shoes and the increase in
sales, revenues, competitors, and stores.
Website #14: http://www.statista.com/statistics, Last viewed 11-16-15
Why Relevant: This health statistical site helps explain the fitness trends arriving and
increasing the world and how it has a positive effect on the athletic equipment industry.
Website #15: http://www.runningusa.org/statistics, Last viewed 11-16-15
Why Relevant: It provides concise and accurate data on runners in the U.S. and the
organizations involved, making running a popular sport.
59
Professional Interviews
Professional Interview #1:
Male, mid-30s, 10 years of experience, Avia Footwear Marketing Coordinator
Interview conducted at: Biola University-Career Development Office; 09/25/15
Why Relevant: Mark was helpful in providing an overview picture of the shoe industry. He
explained how working there for two years showed how the marketing aspect is crucial to
raising awareness and brand recognition. He would work in inventory as well, checking out
what shoes sell best, which do not. Avia is a branch-company of Adidas, and he also got to
work in their marketing department. The shoes then were simpler, and the even the shoes have
slightly changed in style, the materials are all the same.
Professional Interview #2:
Male, late 20s, 3 years retail experience, 5 year runner, Assistant Manager at Snail’s Pace
Interview conducted at: Snail’s Pace in Brea, CA; 9/30/15
Why Relevant: The assistant manager was able to explain his job as assistant manager in
Snail’s pace. He explained how conducting weekly inventory is very important to having
enough shoes in stock for customers. He went of supply and demand forecasting, rather than
follow previous trend statistics. He loves his job as the environment is “chill”, not very
stressful and demanding. He went to explain his running background and how it helps him
with customers looking for custom running shoes.
Professional Interview #3:
Male, late 20s, 1.5 training experience, 10 year runner, Club President at Snail’s Pace
Interview conducted at: Snail’s Pace in Brea, CA; 10/2/15
Why Relevant: He shared to me the reason Snail’s Pace has a running club, is encourage
first-time, experienced, and marathon runners to train for races or benefit in overall health.
He likes Snail’s Pace, does not really buy shoes there, but is a member. His runners run
around Brea, and everyone knows they are from Snail’s Pace.
Professional Interview #4:
Male, early 30s, 2 years training experience, 7 year runner, Club Vice President at Snail’s Pace
Interview conducted at: Snail’s Pace in Brea, CA; 10/2/15
Why Relevant: The VP shared the events they have over the year and how many attend the
local runs: Pub run, the Brea 8K, etc. He says the club is very community-based, runners from
around the area: Brea, Placentia, Fullerton, etc. There are sponsorships, but not much
product or money is an incentive for runners, for they run together and Snail’s Pace is just the
place they come and do it.
Professional Interview #5:
Female, early 30s, 5 years of experience, 15 year runner, Manager at Snail’s Pace
Interview conducted at: Snail’s Pace in Fountain Valley, CA; 10/15/15
Why Relevant: Ariana, the manager, met with me at the store and explained everything from
the corporate culture, to the sellers they partner with. She says the work environment is
relaxing, stressful at time, when groups come and weekends hit. They sell 5 main brands:
60
Nike, A6’s, New Balance, Adidas, and Brooks, which a majority of runners buy on their first
time or 10th time. Customer service is their main priority and work with one customer, finding
the right shoe. Corporate parties and events are not relevant. Employees do not connect unless
if in the running club. All employees are runners or past runners. She says she would change
the inventory system, it needs updating, but the store is meant to be personal, which is why
they do not have an ecommerce site.
Professional Interview #6:
Male, late 30s, 20 years retail experience, Manager at Finish Line
Interview conducted at: Finish Line in Brea, CA; 10/7/15
Why Relevant: The manager was hesitate to share information, but he explained how the store
is small, not active, only on weekends. The store is in Macy’s and they partner with them as a
running shoe store. They sell running, hiking, working, and gym footwear, but specialize in
running shoes.
Professional Interview #7:
Female, early 20s, 1 year retail experience, Sales Associate at Finish Line
Interview conducted at: Finish Line in Brea, CA; 10/7/15
Why Relevant: She was not very helpful either, but she explained the store’s top brands,
starting with Nike, Adidas, New Balance, and Sketchers. She was the only employee there
besides the manager, and the floor was empty. Their inventory levels are low and out of all the
shoes they sell more Nikes and Sketchers.
Professional Interview #8:
Male, early 20s, 2 years retail experience, Sales Associate at Finish Line
Interview conducted at: Finish Line in Brea, CA; 10/7/15
Why Relevant: He was very helpful working in the men’s shoe department. He and the
manager were there. In the store the same main brands were there like in the women’s
section, just more quantitative products, including lots of sportswear accessories. He explained
the corporate culture is not friendly, or real relational with its employees and clients alike.
“We just sell shoes”. He said the company just cut down on staff and commission, hinting
corporate revenues are lower than before. His job is inventory and customer service. He
mentioned more men buy running shoes than the women, young men especially.
Professional Interview #9:
Female, early 20s, 3 years retail experience, Sales Associate at Finish Line
Interview conducted at: Finish Line in Westminster, CA; 10/15/15
Why Relevant: This interview was very helpful in gaining insight in the corporation of Finish
Line. She also mentioned as a sales associate they did not receive commission or regular
raises. They are not a “mom and pop” operation. This store did have lots of inventory, slightly
more than Snail’s Pace. Customer Service is ideal and they prove it when a customer comes,
they are there to help. Many customers that do come in “window-shop” than buy. They too
have major suppliers from Nike and New Balance mainly.
Professional Interview #10:
Male, mid 20s, 5 years retail experience, Manager at Finish Line
61
Interview conducted at: Finish Line in Westminster, CA; 10/15/15
Why Relevant: The manager does everything in the store, from greeting guests, providing
product awareness, inventory, and his managerial duties. He explained how his pay is not
higher than 5 dollars than the associates. Their store is just a “store”. I learned their
selections vary in many areas of fitness from brands, to prices. They offer premium prices for
their products, but do have a small selection of clearance items in the back of the store. The
higher price shoes are in front and lower price footwear goes lower to the back of the store.
Professional Interview #11:
Male, mid 20s, 3 years retail experience, Assistant Manager at Foot Locker
Interview conducted at: Foot Locker in Westminster, CA; 10/15/15
Why Relevant: Entering the store, was like entering into Finish Line, instead you have
referee-looking people coming to assist. No one came to assist, the store was moderately full,
with only two employees. I spoke to the assistant manager and he explained more the
corporate side of Foot Locker. Their main brand is, you said it, Nike. In this store Nike is in
80% of the selves, from the shoes, sandals, shirts, even socks. He mentioned Nike
representatives from Nike Corp. would come into the store taking inventory of their products,
asking the managers about sales. “They ran the place when they came in to check up.”
Customer Interviews
Customer Interview #1:
Philip, 20, regular at Snail’s Pace, Amateur runner
Interview conducted at: Biola University, 09/23/15
Why Relevant: He is a friend and we talked about Snail’s Pace and how awesome it it. He
buys shoes sometimes from the Fountain Valley store since he lives close by. He loves the
service, and when he purchases a pair of running shoes, they pick similar or an upgraded pair
of shoes that fit his comfort.
Customer Interview #2:
Male, early 30s, Club Runner at Snail’s Pace
Interview conducted at: Snail’s Pace in Brea, CA; 09/23/15
Why Relevant: I went running with this club member and explained the great program they
have for people who are starting or love running. Running with him, I learned he has been a
member for years and loves running with friends. He also shops in the store and likes to
attend the meetings as well.
Customer Interview #3:
Male, mid 30s, Experienced Club Runner at Snail’s Pace
Interview conducted at: Snail’s Pace in Brea, CA; 09/23/15
Why Relevant: As a member, an experienced runner, he runs as a sponsor runner for Snail’s
Pace, racing in marathons in representing the shop. He gets a 20% discount, but he buys
shoes elsewhere. He finds the products expensive and buys online shoes. He loves the club and
62
runs with the elite group, and feels the club motivates him to run, better if he was training
alone.
Customer Interview #4:
Male, late 30s, Club Runner at Snail’s Pace
Interview conducted at: Snail’s Pace in Brea, CA; 09/23/15
Why Relevant: This customer is a member because his friend, a Snail’s Pace Customer and
club member, invited him. They both are training for the marathon and love the club. They get
a discount on races, marathons, shoes, and other products. He says being a member is
beneficial, yet one does not have to be one to run. Being a member is best, because helps
runners commit to running and to the store.
Customer Interview #5:
Seth, 20, Friend and shoe buyer at Sport Authorities
Interview conducted at: Personal residence in Huntington Beach, CA; 10/2/15
Why Relevant: We are good friends, running partners, and, importantly, ex-cross country
runners. Seth understands the need for good shoes. He likes A6s and shops at Sports
Authority, mainly, because he can buy those shoes at a discount, than if he went to Snail’s
Pace or even Finish Line. The price matters to him and since he knows what shoes he likes, he
acquires them himself.
Customer Interview #6:
Male, late teens, Customer at Finish Line
Interview conducted at: Finish Line in Westminster, CA; 10/15/15
Why Relevant: This customer was honest to why he goes to the Finish Line store, mainly
because it is conveniently in the mall near his area. He was window-shopping, but he was
looking for some good Flex shoes, casual running shoes.
Customer Interview #7:
Male, late teens, Customer at Foot Locker
Interview conducted at: Foot Locker in Westminster, CA; 10/15/15
Why Relevant: He pre-ordered running/skate shoes. Apparently, there’s a Nike shoe, flat base,
that is good for casual running and skating. This customer, likes Foot Locker for the price
and being able to order shoes online or on the phone and pick-up at the store. This purchase
method is convenient for shoe stores now.
Customer Interview #8:
Mother and Son, Customers at Foot Locker
Interview conducted at: Foot Locker in Westminster, CA; 10/15/15
Why Relevant: The mother with her son were buying boy-kids athletic shoes for school. She
mentioned how the Air Jordans at Foot Locker are affordable and stylish for her son. The
prices at the store and all the stores have the same price for different sizes. She paid the same
price that of a pair of regular Air Jordan shoes.
63
Customer Interview #9:
John, 20, Friend and shoe buyer at Finish Line
Interview conducted at: Personal residence in Tustin, CA; 10/25/15
Why Relevant: John is my friend’s friends and loves to buy nice shoes: Dunks, Air Force,
Jordans; and athletic shoes like Flex, A6s, FlyKnit Trainers, etc. He likes to buy at Finish
Line, mainly for the large selection of athletic shoes. He goes in and buys the most appealing
work-out shoes, to run with, but mainly for daily use.
Customer Interview #10:
Addison, 21, Friend and shoe buyer at Snail’s Pace
Interview conducted at: Personal residence in Brea, CA; 10/2615
Why Relevant: We were cross country runners in high school and would go to Snail’s Pace
three times a year to buy shoes for track and cross country. We both love the environment at
Snail’s Pace. Today, he still buys A6s there, for casual runs, and shoe attire. The main reason
he still goes to Snail’s Pace is the fact that the employees were or are runners. They
understand runners and are trustworthy in selecting the best shoes.
Customer Interview #11:
Male, late teens, Customer at Finish Line
Interview conducted at Finish Line in Brea, CA; 11/04/15
Why Relevant: He explained the bad customer service he encounters sometimes at this store,
and the major reason he comes to this particular store is because he has a membership, it’s
cheaper than Foot Locker, and close to his house in Brea. His negative insights helped me to
see that Finish Line looks like in a negative lense.
Customer Interview #12:
Male, late 30s, Customer at Finish Line
Interview conducted at Finish Line in Brea, CA; 11/04/15
Why Relevant: He is an athlete, actually a runner at Snail’s Pace, buying shoe at Finish Line.
I asked him why he does not buy shoes at Snail’s Pace and he responded by saying that store
is too expensive for running shoes. The man used to run cross country and knows which pair
of shoes work for him. This customer showed how price is big deciding factor when acquiring
shoes, even for an athlete.
Customer Interview #13:
Jamie, female, early teens, Customer at Finish Line
Interview conducted at Finish Line in Brea, CA; 11/04/15
Why Relevant: Jamie explained to me the importance of style and comfort. She said she runs
occasionally and only gets shoes from Finish Line because it’s cheaper and good looking. I
told her about some of my ideas of my third project and agreed most of them are good. She
thought have better shoes in the long run would help even if she had to pay a little more, and
she loved the idea of a running club, because she claims to run more often with a group the on
her own.
Customer Interview #14:
Male, early 20s, Customer at Foot Locker
Interview conducted at Foot Locker in Brea, CA; 11/04/15
64
Why Relevant: The main was buying Asics for his daily running routine and mentioned how
he likes Foot Locker for their various models. He has been running for a while to stay in
shape and he only buys shoes once they start ripping apart. I asked him, as a runner myself,
why he does not buy new shoes every 3 to 5 months, since after running many miles the shoes
start produce tension on the needs and ankles? He responded by saying he has not had any
issues before, but the reason he was buying shoes was because the trend on the bottom part of
the shoe was gone. He realized he bought real cheap quality shoes and is regretting it. His
running experiences and knowledge of the sport was helpful in understanding his views versus
professionals and stats.
Customer Interview #15:
John, Male, early 20s, Customer at Foot Locker
Interview conducted at Foot Locker in Brea, CA; 11/04/15
Why Relevant: John loves running and talking to him, was very informative as well as
enjoyable. He runs at Snail’s Pace and loves the running club there. I spoke to him about
some ideas I had about location, running trails, member benefits, etc. and liked my ideas and
asked me to let him know when I open.
Customer Interview #16:
Female, late 30s, Customer at Snail’s Pace
Interview conducted at Snail’s Pace in Brea, CA; 11/12/15
Why Relevant: Before a run with the Snail’s Pace running club, I spoke to a woman about the
store, and asked her about how she felt about the store and why she runs with the group twice
a week. She expressed excitement when talking about the subject and loves the community of
runners. She has been running there for years and has made friends with most of the runners.
She responded by saying how much the members mean to her and how the activities
afterwards are really enjoyable.
Customer Interview #17:
Female, early 30s, Customer at Snail’s Pace
Interview conducted at Snail’s Pace in Brea, CA; 11/12/15
Why Relevant: The lady was really nice talking to me about her purchase of her new New
Balance trainers, and how good they feel. She was excited to try them out and run with them. I
asked if she believes the shoes are worth the money, and she responded with an immediate yes.
She explained how in the past she was prone to get injuries, due to lack of enough cushion in
the shoes. She loves Snail’s Pace because they took their time to find her the best kind of shoes
and was happy to find the perfect ‘fit” for her needs.
Customer Interview #18:
Female, early 30s, Customer at Snail’s Pace
Interview conducted at Snail’s Pace in Brea, CA; 11/12/15
Why Relevant: Another lady I found at the store was measuring her feet on a special “feet
scale”, and this machine was able to tell her what size shoes she should get, the type of feet she
has. I asked her questions about the store environment and employees, and she agreed it is a
great place to relax and find good shoes without being stressed out. She also mentioned ho the
65
employees were very helpful and insightful in finding her good shoes. This helps me
understand the importance of good stuff and good help.
Customer Interview #19:
Male, late 40s, Customer at Snail’s Pace
Interview conducted at Snail’s Pace in Brea, CA; 11/12/15
Why Relevant: This older guy was around 47 and he said he has been going to Snail’s Pace
for years. He runs with the running club and has been involving himself in some of the races,
the Brea 8k, the OCC marathon, etc. He says the service can be slow at times, but prefers to
buy shoes at the store, because he has problems with his knees. He says Snail’s Pace has great
shoes and loves the community of runners.
Customer Interview #20:
Grant, Male, early 20s, Customer at Target
Interview conducted at Personal residence in Placentia, CA; 11/14/15
Why Relevant: My friend Grant runs every day and is the kind of guy who just buys the
cheapest pair of shoes. He told me he found some black New Balance trainers for $30 and
worked okay for the most part. I asked him why he didn’t invest more in shoes and he said it
cost too much. My friend, like me, is financially struggling, and so buying high quality shoes
was not worth it for him. His perspective shows me how other people his age react to
purchasing things like running shoes. I learned some people don’t care about what shoes they
wear as long as it is athletic and cheap.