Running Room Case Study

The background of this paper we need to mention is that West Coast Fashions, Inc. (WCF), a large designer and marketer of branded apparel announced a strategic reorganization calling for a divestiture of certain assets, and one of the divisions it intended to shed was Mercury Athletic, its wholly owned footwear subsidiary. John Liedtke, the head of business development for Active Gear, Inc. (AGI), a privately held athletic and casual footwear company, contemplated an acquisition opportunity of Mercury that would significantly improve his business. So, he wanted to evaluate this opportunity.

As the head of the marketing department for Robowear I have an important objective of advertising our products to the customers. Where it is our job to get the Robowear name out in public in order to expand the name and business to new territories. Another objective for the marketing department is market placement were we find the right consumer base to market Robowear products. Since we are an athletic apparel based company, as a department we have concluded that the best market base for Robowear would be Cross-Fit. There were many reasons for this decision, One was the developing growth of cross-fit worldwide, were it is still a young organization but at the same time it is growing at a fast rate. Next reason why we believe it is a solid marketing strategy is that since Cross-fit is a young sport there are not as many competing company’s invested in cross-fit.

Breaking into the fashion industry can be a big challenge. There are several challenges that can be faced with launching Star Athletics. How will the brand be perceived, customers know Starbucks for it’s delicious coffee. Will moving into the already crowded athletic apparel industry affect consumers because there are already other quality and well known lines already on the market? Will consumers see the difference in choosing Starr Athletics clothing over the athletic wear they can find at their local Wal-Mart? How will the brand help boost immediate sales?

Star Athletics Integrated marketing plan has a clear understanding of its targeted audience and what the millennials like when it comes to athleisure wear. The company also knows that social media is the primary way that the brand will be market to the millennials. The company will create clear and consistent content that can easily be adapted or repurposed to suit different media or channels. The company plans to track the success of the marketing strategy through social media conversion tracking software and sales by utilizing coupon codes that are placed throughout the social media pages.

Finish Line is an athletic footwear and fashion business that serves in the national markets. The company “has more than 660 stores in 47 states” (Briggs and Swiatek 2016). District of Columbia is also a market where Finish Line does its business. Out of the 660 stores that it has, there are “about 50 Running Specialty stores, and 200-plus branded shops inside department stores (Macy’s)” (The Finish Line Inc 2016). Just like most of the businesses, FInish Line also has many competitors. Having competitors is one of the biggest reason why the company’s core stores are better and larger than their competitors’ stores. The core stores offer a variety of clothes, accessories, and footwears, which provides customers with more options of shoes and apparels (The Finish Line Inc 2016). Finish Line not only does business in bricks and mortar stores, it also offers online sales on their website and www.run.com. Buying products online is a trend of today’s society, and providing online sales allows Finish Line to compete with its competitors and the opportunity to increase its sales. The company is also focusing more on online and mobile sales, and in order to do this, Finish Line is “is investing in its online channel with design and content upgrades, mobile and tablet applications, and an expanded presence on social media and platform enhancements” (The Finish Line Inc).

In the last five years, there has been a marked shift in Cisco’s channel strategy.

Cisco’s primary issue faced in the case is how to sustain change after the so-called bursting of the tech bubble or the stock market bubble, and how to revamp its route to market strategy. To expand its market in the face of dynamic competitors like IBM and Apple, Cisco faced a situation in which it must expand market channels. Because of its’ technology, Consumers are increasingly well informed, with the advent of internet technology which allows them to gather a great deal of information before making the choice to “hire” one product/service or another, according to their needs. Successful companies are increasingly turning to marketing to find niches spaces in the consumer consciousness in an effort to increase customer reaction by treating them as individuals with specific sets of needs. Company websites may offer specialized services that cover a wide range of possible targets in an effort to induce these more empowered customers to find value, displaying the loyalty that stems from satisfaction. The relationship between the consumer and the business is no longer necessarily determined entirely by the politics and media in this

Columbia Sportswear Company is one of the largest wholesalers of outdoor sportswear and equipment in the United States. Columbia Sportswear competes in the consumer goods sector, apparel-clothing industry (COLM Profile- Yahoo! Finance, 2015). As of December 31, 2014, they operated 74 outlet retail stores, 19 branded retail stores, and 5 brand-specific e-commerce Websites in the United States (COLM Profile- Yahoo! Finance, 2015). As an enterprise participating in this industry, one of the major obstacles the company faces is standing out amongst an intense line up of rivals; those of which include Nike, North Face, and Lululemon.

An enemies weak spots are natural targets and the flank attack focuses on attacking those natural weak spots through geographic dimensions and segmental dimensions. In this case, Under Armour uses the segmental dimension. The segmental dimension serves the market’s uncovered needs. As a matter of fact, according to the Flank strategy, the purpose of marketing is to discover needs and satisfy them. This is exactly what Under Armour has done and what it continues to do. It has been the fuel that steers this ship to success. Under Armour is deliberately planning its future according to its consumer base. For example, Under Armour is has recently entered the cross-training footwear market by releasing a very specific product which I will explain later in the paper. When CEO Kevin Plank was asked as to why he was pursuing the cross-training category, his answer was simple: “It’s the same reason we went after football cleats, because our customer asked us for it.” (Olson 2008) This marketing concept has not only helped Under Armour grow exponentially, but it has helped Under Armour separate itself from other sportswear giants like Nike. Nike’s philosophy which believes in telling the athlete what’s best for them portrays them as being the loud, stubborn, know-it-all type whereas Under Armour portrays themselves as the player-friendly coach, who listens to its player’s feedback and adjusts its game-plan accordingly.

The national focus on the obesity epidemic has fostered a slew of new apparel companies that target specific market segments like rock climbers, CrossFitters, and yogis. As competition heats up, established brands like Lululemon, Nike and GAP are looking to draw in more customers by attracting more males, females or budget-conscious fitness enthusiasts. The challenge is how can brands stay relevant, expand into new markets and ensure the same high-quality products and experiences consumers are accustomed to? Online discount retailers have hurt sales for larger brands. Meanwhile, international brands like Lorna Jane are scoring big with shoppers in the US, giving domestic companies a run for their money. As the athletic goods market evolves, brands like Under Armour are looking to expand in unlikely places. The company recently announced a $560 million investment in two fitness and mobile application companies, an exciting and unexpected move for the massive retailer. Meanwhile, DICK’S Sporting Goods announced it is moving forward with a store expansion, illustrating brands still find value in physical stores. However, as the lines between retailer and digital fitness companies blur, it’s imperative that brands focus on building out their omnichannel path to provide more consumer value.

Cisco has a powerful presence among sizeable corporations, which creates a vast loyal customer base. Cisco has a strong impact over enterprise purchasing decisions, for which several of its IT leaders acquire Cisco products virtually by default. Cisco’s customers perceive the safety of purchasing from a resilient global leader, which gives these corporations the opportunity to acquire WLAN equipment bundled with switches, and other equipment at great prices. The significance of Cisco 's loyal customer base is magnified by the fact that, “through 2017, more than 60% of global revenue from sales of wired and WLAN access infrastructure will continue to come from North America, Western Europe and Japan.”(Gartner)

Nike is one of the most recognizable brands in the world. It is not only renown for its high quality athletic apparel but it is also known as one of the best manufacturers and designers for sporty fashion for both the gym and the streets. Nike is among the sole companies that took note that, “Americans are wearing yoga pants, running gear and basketball shoes not just to-and-from the gym, but also around town.” (Fortune). Active wear is suddenly chic. They noticed that Americans find that athletic gear is comfortable after all. Analysts say that the attention manufacturers are making to fabrics and new colors and styles have helped to broaden the category’s appeal. “Active wear is booming, with sales growth exceeding that of the apparel market as a whole, consumers are drawn to its comfort and versatility, and the fact that it still makes a fashion statement.” (NPD analyst Marshal Cohen). Part of Nike’s success in 2015 is because the company altered its marketing strategy, it moved away from a single-slogan approach in favor of a targeted advertising campaign. The company’s social media and Internet based marketing practices and the Nike ID personalization website that allows customers to design their own footwear is one of the few features that makes Nike stand out from the rest. All of this information is provided on ‘Nike Digital Sport’, a part of the company that makes personal performance tracking devices and software that allows the company to obtain user data.

Cisco Systems is a world leading company in the switches and router market. Established in 1984 by a Stanford University couple, IT administrators Len Bosack and Sandy Lerner. Ina short period after founding, it became one of the most successful companies in high technology industry. In Cisco, manufacturing of its switches and router was outsourced, the company focused on core competencies: product design and development. Indirect sales and distribution through resellers became the major sales channel in the end of 1990’s; its “Value-Added Reseller” (VAR) was the most successful indirect sales channel strategy at that time. In later 1990s, Cisco had ever been the world’s most valuable company,

The purpose of this case report is to analyze Cisco Systems in terms of its successful factors and current issues. The paper will discuss the current market situation, including a S.W.O.T. analysis (strengths, weaknesses, opportunities, threats) as well as some overall objectives and issues regarding to Cisco products. It also comments the implications of the problems in terms of management, the marketing mix, and competition in further detail.

Should we focus on products that businesses buy? After all, that’s who we sell to now. Or, should we take our expertise in routers and switches and focus on consumer products? Finally, while Cisco is growing 15 percent per year, that’s down significantly from the 40 percent growth that we’ve had since inception, save for 2001. So we need to identify high-growth markets and products that we could design and build.