Merrell "Barrier Glove"


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Notional, new product development class final presentation. This is just the slides and much more information was discussed during the presentation. High accolades from our professor. She commented that we should have gone first so that the class could see how this project was to be done.

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  • Soles: usually less than 10mm thick. Two to five millimeters is about average.Weight: Most uppers constructed of mesh. Between 5-8oz in weight compared to 10-13oz for conventional running shoes.
  • Soles: usually less than 10mm thick. Two to five millimeters is about average.Weight: Most uppers constructed of mesh. Between 5-8oz in weight compared to 10-13oz for conventional running shoes.
  • This should be somewhere at the beginning of the presentation. Maybe combined with the determinant gap.
  • Also this slide should help to introduce our advertising campaign/channels
  • Magazines newspaper Outdoor
  • GlamourIn touch weeklyMaximMuscle and fitnessOfficial Xbox MagazineOK! WeeklyTeen vogueWOfficial Xbox MagazineOK! WeeklyMost of those magazines target people who are Active, Adventurous, classic, Fit&Healthy, engaged.
  • Currently, 138,000 people like Merrell on FacebookMore than 3100 people talk about Merrell on Facebook
  • The Barrier Glove will also be advertised on the online version of:Backpackers, Men’s Journal, Women’s Health, Runner’s World, Men’s Fitness, Men’s Health
  • 94% of our target market owned a mobile phone in 2010
  • For example: A consumer is looking for a Merrell distributor near his location on this smartphone. The search engine will provide him with the nearest shop and a Merrell promotion will appear on the site offering a 5% discount on a pair of Merrell Barrier Gloves when purchased at the suggested store in the next 24 hours.
  • An obvious and severe drop in percent growth is shown during the period of the recession with gross sales holding relatively steady.
  • This slide will need to go before we introduce our channels -> I think this could introduce our advertising campaign.
  • Merrell "Barrier Glove"

    1. 1. You need These: Barrier GloveThe minimalist trail racing /obstacle racing shoe Keep the Outside…Outside.
    2. 2. So What is a Minimalist shoe anyway?• Zero Drop
    3. 3. Minimal Construction Mesh uppers. Blue line is padding. Black is the actual sole. Average 2-5mmCross section of a New balance NB Minimus prototype
    4. 4. Promotes a Mid-foot Strike There is significant evidence that a mid-foot strike reduces injuries to the foot, ankle, knee, and lower back.McDougall, C. (2009). Born to Run. New York: A. Knopf.
    5. 5. Target Market
    6. 6. Chosen TargetsM 18-24 M 25-34 M 35-44 F 35-44
    7. 7. MALE 18-24(Simmons)
    8. 8. Male 18-24 Demographic• Over two-thirds of men cannot live without the internet when compared to TV• Sixty-three percent say that they also own a smartphone and one in four use their device to connect to the internet• 59% of the men also said that they notice online Ads• 47% have made a purchase as a result of an online ad• 35% like ads that allow them to play some sort of a game.
    9. 9. Male 25-34(Simmons)
    10. 10. Male 35-44(Simmons)
    11. 11. Female 35-44(Simmons)
    12. 12. Shared Interests(Simmons)
    13. 13. Primary research shows increasedminimalist participation in Obstacle Races and Trail running• Of the respondents who identified themselves as a Minimalist runner,• 56% have competed in an Obstacle Race .• 72% run on trails at least once a month• 32% Have experience debris in the shoe that impedes their run at least once a month.• 68% have had this experience at least once• 54% would be at least somewhat likely to purchase a shoe that keeps debris from entering it.
    14. 14. Survey Supported TargetThe survey supported our findings of the generaldescription of our target from the Simmons data collected.  Male dominated  College educated  Employed and financially secure
    15. 15. Competitive Advantage
    16. 16. Gap Map Minimalist Standards NO ONE ELSE DOES BOTH!!High Debris Low DebrisProtection Protection Conventional Trail Running
    17. 17. Feature, Function, Benefit – Merrell Barrier Glove Feature Function Benefit Additional Top- Glove Protection No need to stop during a run to “clean out” shoes Vibram outsole with zero Encourages a mid- Strengthens muscles, aligns drop foot strike posture and leads to “minimalist-shoe-feel” Microfiber Fabric Allows foot to No socks required; shoes will breathe not start to smell bad Wide Toe Box Runner can splay Allows a more natural toes wider “barefoot” feel in the shoe
    18. 18. Media Plan & Budget
    19. 19. Media Vehicles UsedTraditional Media Digital Mobile OOH• Magazines • Social Media • Coherent with • Events• Newspapers • Blogs Digital • Sponsorships for • Merrell Advertising Projects Homepage Campaign • (Magazine) Websites • Hulu
    20. 20. MRI
    21. 21. Geographices & Awareness(Simmons)
    22. 22. Media Budget$ 2M Allocated for Internet Advertising. (10% of $20M) Internet Youtube Hulu 24
    23. 23. Media Budget Print $10M Allocated for Print (50% of $20M)Magazines MagazinesBackpackers Runner’s WorldOutside Buyer’s guide Men’s FitnessMen’s Journal Men’s HealthWomen’s Health Shape 25
    24. 24. Budgeting con’t• The budget for digital press will be up to 15% which equals to $3M• And lastly 25%, which means up to $5M will be dedicated to: – Events – Sponsorships – Outdoor
    25. 25. Total BudgetMedium Amount AllocatedTV $0Print Press $ 10,000,000Digital Press $ 3,000,000Sponsorship $ 1,666,666Events $ 1,666,666Internet $ 2,000,000Outdoor – Billboards, Buses, Gas Stations $ 1,666,666TOTAL $ 20,000,000 27
    26. 26. Digital + Mobile Campaign
    27. 27. Relevance of Social Media • 18-34-Year-Olds are Most Active in the Social Media World1 • 95% of our target market (who use the Internet) engaged in Social Media in 20102 • Active Adult Social Networkers are 47% more likely to be heavy spenders on clothing, shoes and accessories11Nielsens Social Media Report for Q3 20112The 2011 Social Media Consumer Report
    28. 28. The Barrier Glove’s Social Media Plan Facebook Twitter Youtube Blogs • Event + Sales • Create • Viral Videos • Promote Promotions constant • Educational Merrell Blog • Creative conversations Material • Partnership Competitions • Thought with Barefoot Leadership and Minimalist ExpertsSame channels targeted in Mobile Campaign.
    29. 29. The Barrier Glove and Facebook• Creation of an ongoing dialogue with fans• Daily updates• Promotion of Merrell’s sponsored events• Encouraging fans to post pictures with Barrier Glove• Creative Competitions +
    30. 30. Magazine WebsitesBesides print ads for the chosen magazines, we will also advertise in their digital editions. Outside Buyers Magazine Website Shape Magazine Website • 400,000+ unique visitors per month • 1 Million Monthly Unique ( Visitors (on average) • 700,000+ Newsletter Subscribers (
    31. 31. Youtube & HuluAds on both sites• Pre-roll Ads • Show amazing adventures possible with the Barrier Glove• Promoted educational material on how to run minimalist
    32. 32. Growth Potential of the Mobile Market94% of the Trail Gloves Target Market owned a mobile phone in 20101 (based on demographic parameters) Year Smartphone Owners* Tablet Owners* 2011 103 Million2 34 Million3 2014 133 Million3 87 Million3 *Of Total U.S. Population 1Mobile Consumer Report Simmons 2Understanding Mobile Ads 3New Media Trend Watch Smartphones
    33. 33. Mobile Media PlanSmartphones and Tablets• Merrell Application• Geographic targeting• Banners on Search Engines and Websites• Rich Media
    34. 34. Mobile App• Based on Barefoot Training App• Educational Material on Trail Running• Offers Diary-like entry platform to follow personal training progress
    35. 35. Mobile Advertising• Banner and graphical ads • On Search Engines • Magazine Websites• Promotions will be sent based on location (geo) targeting
    36. 36. Forecasting & Longevity
    37. 37. Pricing– Men: between $ 85 and $ 170 – in average $110– Women: between $ 85 and $ 130 - in average $100– Competitors: Montbell Stretch Gaiter : $29.85 Our attractive price:$124.99
    38. 38. Increased Popularity in Obstacle Races • Top three promotions: Spartan Race, Warrior Dash, Tough Mudder – 50,000 participants combined in March – YTD top three 116,000 – Participation increases in the warmer months – Est. 2M participants by Year End ‘12 in the top three promotions alone
    39. 39. Trends in sales In the below chart shows the gross sales compared to percentage of growth over five years for the FOOTWEAR category.Graph: Datamonitor’s Industry Profile “Footwear in the United States”, June 2010. Ref# 0072-0619 .
    40. 40. Past sales and market segment performance is encouraging for future Lightweight Running Gear Sales• Merrell year end 2011 = 500,000,000.00 400,000 pairs of 450,000,000.00 “Barefoot” line of shoes 400,000,000.00 sold. 350,000,000.00• Around $100 per pair 300,000,000.00• $40,000,000 worth of 250,000,000.00 Lightweight Running Gear Sales shoes moved 200,000,000.00 150,000,000.00 100,000,000.00 50,000,000.00 0.00 •Q3 ‘10 •Q4 ‘10 •Q1 ’11 •Q2 ‘11 ZMUDA, NATALIE. "Marketers Sprint To Join Lightweight-Running Craze." Advertising Age 82.31 (2011): 10. Business Source Premier. Web. 25 Feb. 2012. kly/reader/sgbw_1108.asp 2f44a549c55e%40sessionmgr12&bdata=JnNpdGU9YnNpLWxpdmUmc2NvcGU9c2l0ZQ%3d%3d#db=buh&AN=652 17038
    41. 41. Longevity• On track for $1.8B in sales of shoes in the “Lightweight” category YE 2012.• "Its such an important new idea in footwear that in a couple of years, we probably wont be talking about lightweight anymore, because everything will be lightweight…" - Matt Powell, SportsOneSourse• "Once youve made the transition [to a minimal or lightweight product] its difficult to go back…What will happen in the more mainstream channels remains to be seen, but in performance and specialty channels, its here to stay.“ - Katherine Petrecca, collection manager for New Balances minimal line.
    42. 42. CSR
    43. 43. Soles4Souls In the aftermath of the 2004 tsunami that hit Southeast Asia Wayne Elsey - the Founder Soles4Souls collects new shoes to give relief to the victims of abject suffering and collects used shoes to support micro-business efforts to eradicate poverty. Soles4Souls’ other two divisions, Clothes4Souls and Hope4Souls, provide the same relief and support through clothing and other necessities.
    44. 44. Event Promotion: Down & Dirty Even the littlest enthusiasts can partake in the fun with Adventure Kids presented by Paul Mitchell, a one-mile mud run or a shorter adventure dash, all ending in the massive mud pit to crawl to victory. The series has raised over $100,000 for Operation Gratitude, a non-profit organization that sends personalized care packages to military personnel deployed overseas.
    45. 45. Event Promotion: Down & Dirty Since the series’ premiere in 2010, thousands of athletes have taken on the military-inspired courses across the country! The 2012 tour will take on 10 cities around the country! Will be in New York on September 30th Racers will compete on either 5K or 10K courses that include military-style obstacles, mud crawls, and new strength challenges
    46. 46. Home Page of Down& Dirty: Simmons:  With an index of 137 – Asian people are 37% more likely to buy jogging or running shoes in the past 12months.  With an index of 159 - males between 18 to 24 are 59% more likely to buy jogging or running shoes in the past 12months.
    47. 47. Marketing &Promotion
    48. 48. 3 Phases of Launch MarketingPre-Launch Launch Post-Launch• Build Buzz • Maximize • Sustain Interest• Tease Early Product- • Promote Cost Adopters and Awareness Effectively Experts in the • Drive Consumer Field Engagement
    49. 49. Distribution planDifferent way to buy their shoes: – Merrell shops – Online – Retailers (more than 89 in NYC) Julie Lefeuvre
    50. 50. Packaging• The usual Orange and brown Merrell shoes box Julie Lefeuvre
    51. 51. Homepage Promotion
    52. 52. Barefoot Section (on website)
    53. 53. Barefoot Section (on website)
    54. 54. Facebook PromotionFacebook Game: For the first time ever, our followers can participate in a Facebook simulation game Simulates a hike up a mountain of choice, where you have to run and jump in order to pick up reward items After playing the game and successfully finishing tutorial, players are able to get $5.00 off Barrier Glove Must be a fan of our page to play.
    55. 55. Printed Ad Simmons: Males & Females 24 to 34 Male 150% 100% Male 50% 0% Target shooting Jog/run Female 80% 60% 40% 20% 0% Female Target shooting Mountain/ rock Jog/run Hike -20% climbing -40% -60% -80%
    56. 56. Printed Ad
    57. 57. Thank you!!! Questions?