WORKSHOP

ASICS CASE

Students:
- Ana María Acuña.
- Melissa Norambuena.
- Roxana Pincheira.
- Lucas Bravo.
- José Miranda.
- Sebastian Gonzalez

Teacher: Ximena Gambra Acle

Year: 2021

Marketing and Sales Management

Introduction

ASICS is an established running shoe brand that, in 2016, acquired FitnessKeeper

Inc, operator of the fitness tracking app Runkeeper, in order to give it a boost to
reach higher, as, although ASICS' 2015 sales, exceeded targets set five years
earlier, profits were lower than expected.
Therefore, the goals they set out to achieve from 2016 to 2020 through their
strategic plan were ambitious, considering operating income of at least 10% of
sales.
Among the strategies proposed to meet these objectives were to expand the
customer base from serious brokers to a broader public, change the business
model, maintain a direct relationship with the customer in its own stores and not with
retailers, differentiate itself through innovation and transmit to the world a consistent
brand image to generate an emotional connection with the products.
However, there is much concern about how to carry out these strategies,
considering that there is no consensus to integrate Runkeeper into ASICS nor is
there certainty that the three ASICS brands, i.e. ASICS Sneakers, Onitsuka Tiger
and ASICS Tigers, will not be confused with each other, nor is there certainty that
the company has the resources to market these sub-brands separately.
It should be noted that in order to achieve its 2020 financial targets, the company
has a long way to go, taking into consideration that it must compete with Adidas and
Nike and its struggle is to become the third most important sports brand for the
Tokyo 2020 Olympic Games, to strengthen the brand and increase customers
through value creation, innovation and new business development in order to
become one of the most important sports brands that will be present at the
Games.To do so, it must strengthen the brand and increase customers through
value creation, innovation and new business development to become one of the
most important sports brands that will be present at the Tokyo 2020 Olympic
Games.

Marketing and Sales Management

How Chileans have changed in the last 10 years.

Several things have changed in the last ten years: Chileans went from US$8,700
per capita to just over US$13,600, while poverty went from 29% to 8.6%, although
salaries and inequality have not followed the same path.

The question is, has only that changed? At least the mere exercise of living in the
city shows that the last few years have been more than busy.

Ten years ago, the Metro rush hour fare, which has now gone up to $800, cost
$420 at that time. Not to mention tempting yourself with street food: the price of the
completo de carrito went from $350 to 1,000 pesos in ten years, while the classic
sopaipillas increased fourfold, from $50 to $200 each.

Technology has also changed the way we relate to each other. In 2009 in Chile,
the use of smartphones began to become widespread with the first iPhone, which
arrived in Chile for $159,000. These days, however, its use is indispensable, with
more powerful hardware and cameras that raise the price of the latest model to
over one million pesos.

Bringing eleven to the table is not what it used to be. A kilo of avocado used to
cost around $1726 in supermarkets, while at the beginning of this year it is priced
at over $4500.

Essential products of the family basket have suffered a significant increase, so

much so that the price of bread and milk have risen by more than 55% in 10 years.

Not to mention the most relevant things. The dream of owning one's own
apartment became an uphill task. TocToc.com reports that a 60 m2 property in
Santiago averaged 2,120 UF ($58,403,646), but, ten years later, the value soared
to 3,750 UF ($103,308,337).

Marketing and Sales Management

Rents are just as striking: monthly rents tripled from $110,000 for a 40 m2
apartment in downtown Santiago in 2009 to $360,000 today.

Health has also changed in the last 10 years, becoming more accessible to all
types of public.

The Chilean has become a consumerist public, especially now that there are
different means of payment other than cash (debit, credit, documents, etc.) which
has allowed access to different methods of purchase, such as for example
E-commerce (online shopping).

Marketing and Sales Management

Value curve analysis

Definition of Business Objectives

Marketing and Sales Management

Positioning Strategy

The strategy proposed for ASICS of Viña del Mar is segmentation, focus or niche,
which arises when it is not able to compete in the entire market and, therefore,
needs to focus its business or activity in a part of it.

Once the company has decided which segments it will enter, it must decide which
positions it wants to occupy in those segments. This decision is important because
it will serve as a guideline in establishing the marketing program. Positioning
defines the way in which the brand or company wishes to be perceived by its target
market.

The following steps should be followed to position the running shoes:

1. Market segmentation.

2. Selection of a target segment (or several).

3. Identification of the various positioning possibilities for each segment.

4. Selection and development of a positioning concept .

Source: Daemon Queso, 2007 "10 Master Lessons in Marketing and Selling.

Marketing and Sales Management

 SEGMENTATION

After analyzing the ASICS case, it is proposed to open a new store in the Marina
Arauco Mall, in the city of Viña del Mar, Valparaíso:

Variables:

Geographic:

 Country Chile.

 Valparaíso Region.

 Ciudad Viña del Mar is a coastal resort city northwest of Santiago, Chile.
 Address Av. Liberty # 1348

 Temperate Mediterranean climate.

Marketing and Sales Management

  Surface area 121.6 km² (121.6 km²)

 Population 212,394 who practice sports.

 Age range women and men between 20 and 65.

Demographics:

 Socioeconomic Level C1B - C1A - AB.

 Psychograp
hic Professionals:
 Healthy lifestyle.

 Behaviora
l Athletes:
 Brand loyalty.

 Frequency of brand use.

Marketing and Sales Management

Target audience:

Asics is a company that provides the consumer with an advised, safe and
satisfactory purchase of running shoes, its prices range from $ 80,000 to $
150,000 where its main target audience are high performance athletes, however,
its product line has also innovated to amateur athletes who enter the world of
running.

Empathy Map:

Marketing and Sales Management

Functional or Operational Strategies: Marketing Mix
(Design the lines of action in terms of product, promotion, price, place, people,
processes and physical evidence (physical evidence).

TAM - SAM - SOM

TAM: Total population 212,394 who practice sports.

SAM: 31,860 Men and women aged 20 to 65 years who practice running.

SOM: 4,460 men and women who can access Asics running shoes.

Marketing and Sales Management

Bibliography:

https://biblioteca.digital.gob.cl/bitstream/handle/123456789/3586/5.%20Pol
%C3%ADtica
%20Regional%20de%20Actividad%20F%C3%ADsica%20y%20Deporte
%20Valpara%C 3%ADso.pdf?sequence=1&isAllowed=y

http://observatorio.ministeriodesarrollosocial.gob.cl/encuesta-casen-2017

Marketing and Sales Management