In early 2016, Motoi Oyama, president and CEO of ASICS, shared his company's growth plan for the upcoming 5 years. The new plan set ambitious goals in terms of revenue and profit increases. At the heart of the strategy to achieve these goals was a desire to embrace a more direct to consumer mindset, expand into new customer segments, and communicate a more consistent and emotional brand worldwide. With its primary core customer currently the "serious" runner and its innovation strategy geared towards high-end performance, pursuing these objectives in light of the fierce competitive landscape posed a lot of challenges.
Also, the company had recently launched several lifestyle brands (using brand names it had revived), which posed brand architecture issues. The Tokyo 2020 Olympic Games would coincide with the conclusion of the 5 year plan, and ASICS had paid over $100 million to be a Gold Sponsor of the games. Oyama wondered whether his company was on the right track to achieving the goals shareholders expected. Is he on the "right track," and if not what might you suggest to make those goals more achievable?

You may want to consider some of the following:

1. Are they properly extending the brand? Lot's to pick from here:
a. Customer segments? Lifestyle vs. performance.
b. Brand Architecture and Brand Portfolio Questions: Under one brand vs. leveraging multiple sub-brands vs. new brands? How might you approach it and execute for the best in-market brand portfolio equity? (e.g. Brand positioning and message(s), price strategy, distribution strategy)
2. Was RunKeeper acquisition appropriate?
a. What is or should be its value/role? How should it fit in accomplishing the overall branding objectives, if at all?

Answer rating: 100% (QA)

1 Brand Extension and Portfolio Strategy a Customer Segments Lifestyle vs Performance ASICS targeting a more diverse customer base is a strategic move ... View the full answer