New Balance has developed a strong reputation as a serious and leading manufacturer of high performance and high-quality athletic footwear. Its use of technology to produce state-of-the art running shoes and cross-trainers has earned the respect of many world-class athletes who rely on New Balance footwear to compete at the highest levels in their respective sports. So, it seemed strange to industry observers when New Balance’s channel design strategy, implemented in the spring of 2009, chose Nine West shoe stores, a division of Jones Apparel Group Inc., to sell New Balance athletic footwear. What raised the eyebrows of the observers? The fit—not of the shoes, but of the two brands. Would Nine West, which is identified as a seller of fashionable women’s shoes, undermine the brand image of New Balance as a maker of hard-core athletic shoes? Although the strategy is being tried on a limited basis in just 50 Nine West stores, if sales are good for the first six months, many additional Nine West stores will be added. What do you see as the strategic rationale for New Balance selecting Nine West as a channel member to sell its high performance athletic footwear? Over the long run, do you think New Balance’s channel member selection strategy will affect its product image?
Answer to relevant QuestionsMaster Lock is perhaps the nation’s best-known name in padlocks. Master Lock padlocks are sold intensively at the retail level through a wide range of stores, including hardware stores, home centers, automotive stores, ...If information indicates that the market size is increasing, what kinds of questions should this pose for the channel manager? By the end of the first decade of the twenty-first century, the anti-junk food movement had really begun to take hold in the U.S. Of particular concern was the sale of junk food through vending machines in schools. The easy ...An effective information flow in the channel is all that is needed to inform the channel manager of the needs and problems of channel members. Do you agree or disagree? Discuss. Harley-Davidson Inc. is one of the world’s most well recognized companies because of its famous motorcycles—often referred to as “Hogs” by bike enthusiasts. During most of the 1990s, Harley motorbikes were in short ...
Post your question