Asics Final Presentation

Chris Anderson Pedro Strada Gaby Roberts Kevin Corbett MKT 445 New Product Development and Branding New Product Proposal

Positioning Statement : Asics is the only athletic shoe and apparel company that is committed to creating the most comfortably advanced products for active individuals that seek harmony in the body and mind Target Market: Sex : Both Males & Females Age : 19-26 (Young and active to Young at heart)  Targeted in Survey Income : Middle to Upper (Survey Results: 65% claimed family income of $60,000+) Consumer Benefits Sought : comfort, durability, breathability, style, well-priced, color, cool, functional, good reputation, arch support, quality, lightweight, good fit Negative Mental Map Positive Mental Map Cheer Volleyball Contour Shape Running Breathable Durable Shoes Support Comfort Trust Light Weight Asics Not Cool Plain No Style Boring Old Asics

Among Asics Buyers Among Asics Non-Buyers Comfort Comfort Sleekness Sleekness x Adidas x Asics x Nike x Nike x Asics x Adidas Comfort vs. Sleek Design Survey: (Buyers) Comfort 48% Asics 14% Nike 38% Adidas Sleek *8% Asics 63% Nike 29% Adidas Survey (Non Buyers) Comfort *8% Asics 55% Nike 37% Adidas Sleek *5% Asics 75% Nike 20% Adidas Lack of awareness *Lacking Association Brands In Comparison High Comfort, Low Sleek Design Low Comfort, Low Sleek Design

Among Asics Buyers Among Asics Non-Buyers x Asics x Asics x Adidas x Adidas x Nike x Nike Image (Cool) vs. Emotional Attachment (Trustworthy) Image Emotional Attachment Emotional Attachment Image Survey: (Buyers) Cool *3% Asics 58% Nike 39% Adidas Trustworthy 53% Asics 16% Nike 31% Adidas Cool *0% Asics 75% Nike 25% Adidas Trustworthy *3% Asics 66% Nike 31% Adidas Survey (Non Buyers) *Lack of Awareness *Lacking Association Brands In Comparison High Trust, Low Cool Image Low Trust, Low Cool Image

BRAND MANTRA: Genuine Comfortable Athletic Performance M A P A T M Asics Survey Results: Negatives Only: 8% mentioned the logo or slogan as an association [Logo and Name] (Memorable) 34% of buyers see Asics colors as stylish [Colors] (Appeal) 29% of buyers see Asics design as cool [Logo & Design] (Appeal) 40% of consumers feel Asics meets their athletic needs [All Elements] (Meaningful) ALSO: 90% of consumers buy products 1 time a year or never [All Elements] (Appeal) 83% of buyers would not purchase Asics clothing [All Elements] (Transferability) Positives 63% of buyers associate Asics with healthy-lifestyle [Brand Name] (Meaningful) 47% of consumers would wear Asics shoes/apparel [All Elements] (Meaningful) 49% of consumers have purchased Asics products [All Elements] (Appeal)

ASICS YOGA Category Extension (Sub-Brand) Extension Strategies: Capitalizing on brands distinctive expertise in function Products that contain the brand’s distinctive component (Biomorphic Compression Tech) Products relevant to the customer franchise of the brand (Women) Products that reflect the brand’s distinctive benefit, attribute, or feature (Comfort & Fit)

Flexible Fitting Comfort Performance Simplicity Light Fluid Tight Biomorphic Compression Technology Fabric Wicking Anti-bacterial & UV protection Advanced Performance Fabrics Comfortable& Tech. Yoga Apparel Form Fitting Garments Tech Form Need POG: Yoga Apparel for Women Women account for 4/5’s of all athletic apparel purchases 30% of 2007 $17 billion in total distributor sales (Wearable’s market) Women's clothing outsells Men’s 2-1 Biomorphic Compression Technology Moisture-Wicking fabrics Eco-friendly fabrics UV and Antibacterial protection - Yoga Trend - Healthy Living - Going Green - Higher Stress Environments - Desire to Balance Work Life - Customization (Fit) ECONOMIC SOCIAL TECH Stylish yoga apparel line for women, Specialized fit, Most sustainable and advanced fabrics

BIOMORPHIC COMPRESSION™ TECHNOLOGY FABRIC WICKING The fabric's construction drives moisture to the surface of the garment. This built-in moisture transfer management aids in preventing the over-heating that is typical in other tight fitting garments. INCREASED CIRCULATION ASICS® Biomorphic Compression™ maximizes the flow of blood to working muscles. Too little or too much compression either has no effect on or restricts blood circulation. It takes just the right amount of surface pressure on the body to accelerate blood flow and oxygen delivery. ANTIBACTERIAL/ UV New permanent anti-bacterial function in the fabric. Sanitation feature cannot be washed out of the garment maintains the normal bacteria level of the skin, leading to reduced odor and added comfort. All garments also feature permanent UV protection.

AsicsYoga Tops Here are two new contoured fitting and stylish tops, made from the most technologically advanced and comfortable fabrics, that drive moisture to the surface of the garment, keeping the body cool, while protecting against bacteria, odor, and UV rays. The garments, coupled with Biomorphic Compression Technology, maximize the flow of blood and oxygen to working muscles during moderate to intense athletic activity. They are pre-shrunk, include reverse stitched lining, and are flat seamed for less irritation and an ultimately close fit. In addition, the garments are made with a perforated/mesh panel along the seam which maximizes breathability. AsicsYoga Bottoms Here are new yoga pants that incorporate the fabric wicking, Anitbacterial/UV protection, and compression technology of all AsicsYoga garments with a functional fit. They fit narrowly on the upper thighs and loosen towards the lower leg and ankles to ensure full range of movement. The wider smooth-ribbed waistband creates a more personalized fit which also shapes the curvature of your form. In addition, the garments are made with a unique perforated/mesh panel along the seam which maximizes breathability and creates a cooling system during quick movement.

Pros ( Male) Yoga line fits well with slogan, “ Sound mind, Sound body .” Healthy, non-brand. (Male) “Classy athletic apparel that is still cutting edge.” (Female) Right now a lot of runners are turning to yoga because it increases flexibility & strength. (Male) “Yoga is a new fad with a largely untapped market. Labeling the athletic apparel yoga could have great feedback. (Female) “A new yoga company…I’m excited to buy. Innovative, smart. Like the antibacterial aspect, sounds good for going to the gym (don’t want to smell bad).” (Male) “Represents a very manageable high-profit category to any brand. Shoes come and go…Clothes are the first thing you see. Comfort and durability. Research Results Cons (Male) “Not a good design for men. Drives men away from Asics, alienates them.” (Male) “nothing really new, just the same thing a different way. When I purchase athletic clothing, I look for a new technology. Its nothing revolutionary” (Female) “a little bit late to market. Would have to really sell the differences between theirs and existing offerings.” (Female) “Might only appeal to women.” (Male) “Everyone is pretty much doing it: Nike Dryfit, Under Armour, Adidas ClimaLite.”

3 Factor Model Salience: Extends on association of quality, function, “fit,” technology, and comfort. Consumers mentioned “Sound body, Sound mind” relationship; unity of body and mind. Perceived the high-tech nature of the products with Asics values. Yoga solidifies Asics with women who exhibit high spending behavior in apparel market. Favorability: Consumers saw products as stylish & classy while at the same time cutting edge. Yoga apparel was perceived to fit very well with Yoga consumers and needs. Saw the products features as “innovative” and “smart,” solidifying that the features of the garment make it a quality product. Uniqueness: Some participants felt that the products may need more POD’s to distinguish from competition. Most failed to mention that Asics’ main competitors do not have prominent yoga lines. Antibacterial aspect was a point of difference that consumers saw as advantage for going to the gym and sweating, in odor protection

4 Factor Model Compelling: Trend of runners turning to yoga because of flexibility and strength aspects In our survey, 47% of female runners also stated that they have done or currently do yoga. Most importantly, there are very few mass yoga apparel brands, i.e. Lululemon Athletica. Relevant: Yoga adds advanced technology aspect for Asics, solidifying that level of expertise. Elevates Asics into the apparel market which has low awareness in their current consumers. This extension will also help further their current running apparel that many consumers do not currently consider. Consistent: Yoga as an extension of the “mind” aspect which is a core value for Asics; sound body, sound mind. Consistent with Asics’ healthy image and dedication to the product, rather than just image. Almost all participants saw Asics as high-tech, and the yoga line staying in tune with that image. Strong: Helps Asics become more highly associated with fashion and style. Powerful association with running will not be diluted by this extension

VALUE OPPORTUNITY CHART: AsicsYoga Concept Personality Sense of place Point in time IDENTITY Taste Olfactory Tactile Auditory Visual AESTHETICS Ease of use Safety Comfort ERGONOMICS Power Confidence Sensuality Security Independence Adventure EMOTION HIGH MEDIUM LOW VALUE OPPORTUNITY EXTENDABLE BRAND PROFIT OVERALL IMPACT Durability Craftsmanship QUALITY Enabling Reliable CORE TECH. Environmental Social IMPACT

Adventure: Excitement of yoga trend and stylish apparel for category Sensuality : Feeling and touch of garment; yoga associations Confidence : Sound mind aspect Comfort: Reverse stitch, compression tech, flat seam Visual: Unique design, color scheme and form-fitting Olfactory : Anti-bacterial fabric Sense of place : Direct connection to yoga Personality : Not very different than comp. Great personality addition for Asics Social: Female athletic lifestyle/yoga trend Environmental : Organic and sustainable fabrics Reliable: Consistent fabric and non-diminishing wash of features Enabling: Fabric wicking & compression features Craftsmanship: Unique & personalized fit Durability: Durable fabrics Profit: Booming market and upward sloping behavior of female spending Brand : Added associations and style/apparel aspect Extendable : Quality extension VALUE OPPORTUNITY CHART Rationale: Focus Group Responses

ABERRO By Asics Category Extension (New Brand) Extension Strategies: Products that capitalize on the firm’s perceived expertise Products that reflect the brand’s distinctive benefit, attribute, or feature.

Stylish & Tech. Hiking Boot Need Form Tech Stability Performance Protection Comfort Rugged Ankle Stability Tech Gore-Tex Breathable/Waterproof Materials Durable Leather Boot Arch Supporting Soles POG: Hiking Boot 2005: 730 Billion nationally spent on outdoor activities 2005 1 out of 3 people went hiking current economic downturn (people looking for inexpensive recreation escape) Ankle Sprain Resistant tech Gore-Tex, Acrylic fabrics Water Repellent tech Tire tread research and advanced hard rubbers Increased Outdoor Activities Awareness of Obesity Concern - Healthy Living - Going Green - More Involvement with Nature ECONOMIC SOCIAL TECH Stylish hiking boot w/ advanced technology to enhance stability, provide comfort, and insulate

Concept Statement Here is a new stylish and technologically advanced hiking boot to maximize the experience of outdoor activities. It incorporates an ankle sprain resistant plastic skeleton sewn into the outer boot which is locked in place with a Velcro strap, an inner boot make of a Gore-Tex like material for water proofing with an inner acrylic lining for comfort, extra padding in crucial areas of the bottom of the inner boot, a stylish leather designed outer boot that has been pre-treated for water resistance, and a hard rubber sole designed with the influence of the expertise of off-road truck tire manufacturers. All of the technology is designed to enhance the hiker’s experience and give them one less item to worry about while enhancing their body and soul.

Inner Boot Outer lining made of a Gore-Tex type material Gore-Tex - a windproof, waterproof, breathable membrane. Microscopic pores in the membrane are small enough to prevent liquid water from penetrating, but are large enough to allow water vapor to pass for breathability Inner lining made of acrylic Acrylic - A synthetic fiber that provides softness and warmth with little weight, and high durability. Extra padding on heel and ball of foot Removable from outer boot Zipper on side for easy access Machine Washable Prototype inner boot and cross-section of lining Acrylic Sock Gore-Tex Acrylic Socks

Pros (Male) “I like the removable idea of the inner boot and keeping the smell fresh, also the ankle sprain protection is great” (Male) “Asics is known for stability, you can apply that to the hiking boot” (Female) “Applying the tire tread concept to the soles is a good, new idea” (Female) “It takes into consideration all the obstacles that a hiker might face and it uses the best quality for the needs” Research Results Cons (Female) “Sounds complicated, like a ski boot” (Male) “It kind of fits Asics’ image, but it won’t really affect the brand as a whole, the market is too small” (Female) “I don’t know how many established hikers will convert to the new boot” (Male) “Might be high maintenance to keep up” (Female) “Looks intimidating for new or occasional hikers” (Female) “Keep the logo off, it might be associated too much with running” (Male) “It’s a small niche market, it is hard to get excited about a new hiking boot”

Salience: The product extends of the Asics ideal of sound mind and sound body by associating with the wilderness and hiking. Consumers also associated the product with the stability that the running shoes are known for. Favorability: Consumers saw the hiking boot as technologically advanced compared to other items on the market. Unfortunately, the favorability only applied when the consumers were thinking of targeting extreme, highly involved hikers and when the product was not associated with the Asics Brand (completely different sub-brand). Uniqueness: The product features where associated as unique to this hiking boot. Unfortunately, the consumers only associated the extension with extreme hikers and led them to believe that the product would be priced too high for average consumers to purchase. 3 Factor Model

Compelling: Captures all of the features that a hiker would want in a shoe. Would stand on its own as most technologically advanced, but due to complexity it would most likely only appeal to advanced hikers (who usually already have a loyal brand). Relevant: Consumers associated the hiking boot with stability and sound mind, which gives equity back to the parent brand. Builds on the brand’s core ideals, however consumers did think that running and hiking were not a close match (they have different needs). Consistent: Consumers considered hiking a little bit of a stretch for the brand. Felt the advanced technology of the shoe did not fit with the “simple, basic” image of the running brand. Strong: The product was found to have a strong equity if it was not associated with the brand, therefore it would not be a strong value builder for the company. Many of the consumers thought that if associated with the brand it wouldn’t do anything to hurt the brand, but it would not add any new equity (it would be a mediocre success). 4 Factor Model

VALUE OPPORTUNITY CHART: Asics Abbero Concept Personality Sense of place Point in time IDENTITY Taste Olfactory Tactile Auditory Visual AESTHETICS Ease of use Safety Comfort ERGONOMICS Power Confidence Sensuality Security Independence Adventure EMOTION HIGH MEDIUM LOW VALUE OPPORTUNITY EXTENDABLE BRAND PROFIT OVERALL IMPACT Durability Craftsmanship QUALITY Enabling Reliable CORE TECH. Environmental Social IMPACT

Adventure : outdoor hiking, moving in the wilderness Security: belief that the foot and ankle will be safe when hiking, new tech Confidence : hiking without fear, sound body Comfort: padding on bottom of foot, arch support, waterproof Safety : ankle sprain resistant, padding, leather Visual: stylish design, looks like new basketball shoe Olfactory : washable inner boot Point in Time : outdoor activity increasing, health awareness increasing Sense of place : sound mind/sound body, hiking, comfortable secure fitting boot Social: Athletic lifestyle, sense of community - serious hikers Reliable : tech proven with other uses, security Enabling: let hikers focus on other things other than safety of feet Craftsmanship: unique, specifically manufactured for safety and comfort Durability: durable leather, waterproof Gore-Tex, strong acrylic Profit: small niche market, profit but not huge amounts Brand: does not hurt image, but doesn’t advance brand Extendable : can get more hiking gear extensions, semi-quality extension VALUE OPPORTUNITY CHART Rationale: Focus Group Responses

ASICS you! Interactive Website to Enable Asics Consumers to Customize their Running Shoes Comes Equipped With Design Tool Kit to offer a Variety of Styles and Colors Advanced Shoe Fit Application to Ensure Quality and Comfort Serious Athletes can Design Superior Running Shoes from the Comfort of their Own Home Line Extension (Modified Brand) Extension Strategies: Same product in a different form Companion products for the brand Products relevant to the customer franchise of the brand.

Personalized Shoe Customized Style and Fit Website Easy to Access/ Easy to Navigate Convenient Comfortable Stylish Interactive Website For Customizable Running Shoes Tech Form Need POG: AsicsYou! Willing to Pay for Quality Competitors Base Price on Style Sports Equipment Priced at a Premium Internet = Accessibility Shoe Fit Application Measures Pronation Exact Fit From Home Need for Design and Comfort Individuality is Fashionable Sports Enthusiasts don’t want to be branded ECONOMIC SOCIAL TECH AsicsYou! Website

ASICS you! Is an interactive website aimed at personalizing your Asics experience. We know how important your health and sports-related activities are to you, so we want to cater to your athletic and apparel needs as best as possible. Asics is dedicated to creating the most comfortable and quality products to fit your needs. Since every Asics customer is different, what better way to meet your individual needs than by helping you create and customize your own shoes! At the ASICS you! Design Center, you will be able to pick any style of Asics shoe. Once you’ve made your selection, you can use our design kit to find a combination of colors that suits you. Following that, click our “Shoe Fit” tab. This advanced application will run you through the fitting process to ensure your ultimate comfort…Without even making you leave your home! We know how busy our Asics customers are and we are here to help. Design a pair today! Asics YOU!

Pro’s Custom options would improve image of Asics style Need it to keep up w/ competitors Convenient and Personal Experience “ If the sizing work well, I would never need to go to the store.” “ This would help the Asics brand reach a more personal level and remain with competitors.” Con’s Process would be too time consuming Not unique. Similar to NikeID “ I need to see the shoe and try it on in person.” “ Not enough ways to customize shoes, save for the colors.” “ Same idea as other companies and nothing added to make it stand out” Too costly ASICSyou! Results

SALIENCE The awareness of Asics as a quality sports athletic shoe and apparel company is significant enough to bring people to ASICS you! FAVORABILITY The quality associated with Asics will promote ASICS you! as a positive alternative to going to a supplier UNIQUENESS The comfort, function, and technology that Asics has continually provided will give ASICS you! a unique place 3 Factor Model 4 Factor Model COMPELLING The increased tendency for consumers to buy online makes ASICS you! a compelling service (with the times) RELEVANT The customization involved with ASICS you!, fills the company’s style void to complement its already established association of premium quality CONSISTENT The Shoe Fit application promotes the technological advantages of Asics STRONG Convenience, Style, and Comfort reinforce Asics’ brand values

Value Opportunity Chart: AsicsYou! Concept Personality Sense of place Point in time IDENTITY Taste Olfactory Tactile Auditory Visual AESTHETICS Ease of use Safety Comfort ERGONOMICS Power Confidence Sensuality Security Independence Adventure EMOTION HIGH MEDIUM LOW VALUE OPPORTUNITY EXTENDABLE BRAND PROFIT OVERALL IMPACT Durability Craftsmanship QUALITY Enabling Reliable CORE TECH. Environmental Social IMPACT

Independence - Enables personal identity with product Security- Some consumers feel insecure w/o trying on shoes Confidence- Shoe fit application and custom style Comfort- In depth testing for advanced fit and comfort Ease of Use- Difficult but easily accessible from internet Visual- Individual design and color application Sense of place- Internet ensures convenience Personality: Custom kit makes for a personal connection w/ shoes Social- Serious runners take great interest in quality shoes Enabling- Can design and mail shoes from any computer Craftsmanship- Unique & personalized fit Durability- Same Asics quality shoe Profit - High cost of custom manufacturing make for low margins Brand - Increased awareness and improved associations of style Extendable - Moderately good extension but needs more R&D VALUE OPPORTUNITY CHART Rationale: Focus Group Responses

Asics Numerical Results Likely to Purchase* (scale of 1-5) Yoga Group 1 mean: 2 Yoga Group 2 mean: 3.4 Hiking Boot Group 1 mean: 2.25 Hiking Boot Group 2 mean: 2.5 AsicsYou Group 1 mean: 2.75 AsicsYou Group 2 mean: 3.25 * Yoga mean is low due to the fact that it is a woman’s line and most of the male participants did not put themselves in the mindset of a female consumer; mean likely to purchase score from female participants ~ 4 2.91 2.42 3.08

Numerical Results Cont. # of participants (out of 12) who believe product will affect Asics’s image positively: Yoga: 9 Hiking Boot: 8 AsicsYou: 9 # of participants who believe product will fit with Asics’s core values: Yoga: 12 Hiking Boot: 7 AsicsYou: 10 Average price participants are willing to pay: Yoga: Tops  $35 Pants  $50 Hiking Boot: $90 - $110 AsicsYou: $100 - $120 Forecasted Market Shares Yoga Line: 8.33% Definitely will buy 33.3% Probably will buy (8.33)(.8)+(33.3)(.33) = 17.664% Market Share AsicsYou!: 0% Definitely will buy 41.7% Probably will buy (41.7)(.33) = 13.761% Market Share Hiking Boot: 0% Definitely will buy 16.7% Probably will buy (16.7)(.33) = 5.511% Market Share

YES: Launch Asics Yoga line Positive feedback from participants All participants felt that a Yoga line would match up with the company’s values Participants were very interested in the features of the line and the technological enhancements Participants felt that a Yoga line was a necessary product introduction to keep up with the demands of a rapidly emerging yoga market Asicsyou! needs more research Participants believe that it is copying NikeID and is entering the market too late However, they like the idea of a customized shoe; logistics of website and shoe customization process and efficient time span need to be looked into NO: Asics Hiking Boot- Abbero Not enough support Participants think this product is too much of a stretch for the Asics brand and would appeal only to serious hikers Would have to be a new brand to succeed Final Recommendations

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