Brand Management

EMBA
Assignment # 2

Instructions
,

This WAC is due by email at abid.khawaja@nbs.nust.edu.pk by end of day, January 09,

2016. Please make sure that you send me a PDF copy of your response. The page length
has been specified here and so any response which goes beyond the limit will not be
graded.
This WAC is related to the case VANS: Skating on Air.
1. What were some of the key characteristics of Vans earliest customers in the 1960s
and 1970s? What was the public perception of skateboarding during this era? (05
Points)
The most of the clients for Vans amid the 60s and 70s were proficient surfer s,
school going youth, and skateboarders. These youngsters were occupied with
music, non-conventional games and style. A few of the key qualities of these
clients' were as per the following,
Price delicate: Clients were exceptionally cognizant about the cash they spent.
They needed an item that had every one of the qualities however would not like
to spend a great deal of cash which Van's tended to by offering shoes at $2.99 to
$4.99.
Customization Inclination: - Vans customers desired the ability to customize
the shoes they dress in. The wanted to be able to choose the color, have a
particular design or touch and pick a fabric of their choice for their shoes.
Quality sensible: Although all the different segments of customers wanted the
best quality, skateboarders were more aware than others for who Vans became
the sneaker of choice.
Price delicate: Clients were exceptionally cognizant about the cash they spent.
They needed an item that had every one of the qualities however would not like
to spend a great deal of cash which Van's tended to by offering shoes at $2.99 to
$4.99.
Hard to Fit Customers: - Vans also served hard to fit customers who required
non-standard width and lengths. As a result the canvas, easy to wash shoe had
developed a small but loyal following among the southern California surf set.
General public opinion about skateboarding was tolerant in spite of the fact that
Skateboarding was considered as the "rebels on road". It began during an era when
there was a flood of rebellious, hostile to Vietnam, against war viewpoint among the
American youth. A group of misfits (Z-Boys) tested the breaking points of traditional
skateboarding, turned into the first to imitate complex surfing proceeds onward blacktop park banks and the swimming pools. The Z-kid's turned into the argument and
everybody began to take after their strategies. The general population took after and
advanced the amazing game of skateboarding where the Z-young men were the symbol
for the adolescent.

2. What was VANS competitive advantage during its early days (in the 1960s and 70s)?
What was its value proposition to customers? (06 Points)
Competitive Quality: This gave Van's an aggressive edge as far as the quality
they brought to the table. Van's likewise served each school in Califor nia, the
team promoters, the drill group and the walking groups all wore Vans shoes.
They were the main organization that could coordinate school hues. Van's could
construct its client's from surfers, skateboarders to the adolescent in schools.
Vans likewise picked up an aggressive edge by pleasing client's that needed
distinctive sizes for a dollar additional.
Own Manufacturing Facility and Customization: VAN's upper hand was that it
produced its own particular shoes empowering its clients to pick variety of more
than 50 Fabrics and hues. Clients could pick your own particular canvas fabric
and shading. Vans made elastic soled shoes that was strengthened with mud and
was twice as thick as those created by the opposition. The shoes had a vulcanized
"Waffle" sole that were perfect for keeping up a strong hold on the skateboard,
and the twofold sewed canvas was ideal for withstanding the wear and tear
connected with the game.
Short Deliver Time: The delivery time to make the shoes was very short; Paul
was able to promote his shoes to the famous Hawaiian surfer Duke Kahanamoku
by taking the shirt piece and using the material to make the shoes the next day.
There were no suppliers or manufacturers rather Vans did everything itself due
to which it could promise faster delivery.
Sales promotion/Campaign: Again Vans had a competitive when it came to
sales promotion which was executed through a unique method by distributing
flyers to children after school by Paul kids. Vans directly engaged customers
from its retail stores, this was unique since nobody had store that sold only
sneakers.
Extreme Customization: These clients were the difficult to serve who required
non-standard width and lengths. This was conceivable as Van's did not have
specific rules on assembling.
Value Proposition:
Vans are a foot wears company that targets youngsters who are interested in
music, non-traditional sports, and style. The value proposition Vans offered it
customers was
Style
Fashion
Affordable/Low Priced
Customizable shoes
Fast delivery time
Association with Z boys
Association with extreme sports
Quality
Brand Reputation

3. How has the companys competitive position changed over time? How has the
companys value proposition changed over time? (06 Points)
The organization's aggressive position changed after some time when Vans concentrate on
skateboarding began to decrease and was supplanted by option games, (for example, BMX
riding). This likewise prompted administration change from Paul to James Van doren who
extended the item blend with an end goal to catch the piece of the pie from Nike and Reebok in
the developing athletic shoe market. Therefore Vans began creating shoes for baseball,
football, soccer, ball, wrestling, boxing and notwithstanding umpiring however the move
fizzled. There were high creation costs, solid rivalry from entrenched brands, and an
unwelcoming market that prompted obligation and in 1984 to insolvency. Paul Van Doren
came back to bail the organization out of obligation, payback 100cents on each dollar owed,
and after that offer the organization in 1988.
The organization experienced the subsidence in 1991, the bay war followed in 1992 bringing
about substantial misfortunes. Oil deficiencies prompted a higher elastic cost which prompted
higher shoe costs and bring down edges. Style slants additionally transformed from the
"urban chic" surf and sun look to "grunge". The organization shut one of the two industrial
facilities and laid off 1000 laborer and supplanted various organization claimed stores with offvalue outlets to move $10million of moderate moving stock. The erratic business sector of
"Cool" no more supported Vans.
The 25 years of Van's upper hand in US fabricating with a process duration of 19 days from
receipt of request to culmination of completed merchandise changed. In the mid-90s anybody
could go to Asia and make the items less expensive and with high scope of styling. Subsequent
to the brand name was solid, individuals realized what Vans was and implied youthful, fun,
southern California, shorelines, skateboarding and surfing. The purpose of distinction would
have been the legacy, the association with the new era of games, kids who played them and
their way of life. The pattern changed to option dons that included Skateboarders,
snowboarders, wake guests and BMX bikers. Great Sports was more prevalent than Major
League baseball or the National Hockey League, and more adolescents viewed the X-Games
on ESPN. As an aftereffect of the adjustment in clients, Va n's worth recommendation
advanced to concentrate on style, plan for distinctive games and nature. It offered more
decisions for materials, styles and hues in customization with enhanced abilities to provide
food most recent patterns. It extended the client base to adolescents all around the globe. The
expense of a shoe was currently $70-$140. The dispersion channels extended to Core stores,
Retailing stores, and Departmental Stores.
4. In recent years, Vans has expanded in a number of directions. The company has (a)
increased the number of sports it is affiliated with; (b) diversified its product
portfolio; (c) expanded its distribution; and (d) broadened its promotional mix.
Analyze each of these decisions in terms of their impact on Vans customer base, its
brand image, and the overall alternative sports category. (08 Points)
(a) increased the number of sports it is affiliated with;
Overall alternative sports categories: With the increase in number of
games led to confusion with the alternative sports both internally and
externally. The due emphasize on expansion was the reason being loosing

track of its core values, expertise and value proposition. And then Vans
decided to revise the basic and segmented alternatives games into core
sports to give a clear positioning of brand to internal and external
stakeholder which helped it to stay aligned with core expertise.
Brand Image: The core association of Vans brand was its association
with the extreme sport particularly with skateboarding. Financial position
of Vans wasnt allowing her to compete with the mainstream competitors.
So a change in its core brand association completely went in negative
when Vans tried to associate it with the other sports like basketball,
football, boxing etc.
Customer base: Due to a vague brand positioning it resulted into dilution
of customer base where on side Vans shifted its focus from surf and
skateboarding and having a strong competition from bigger giants like
addidas and Reebook who had strong muscles in terms of financials and
infrastructure. Dilution of customer base lead to decline in revenue.
Product Mix: In order to increase sales Vans changed its product mix
which again lead confusion in customer minds and which resulted into
further losses for Vans.
(b) Diversified its product portfolio
Customer base: Diversification in product portfolio lead Vans to tap
different customer cohorts to increase customer base and market share.
After diversification customer had now more choices from a wide range
of product portfolio being offered by Vans.
Brand Image: Instead of brand dilution, diversification in product
portfolio lead Vans to an evolved brand image where they offered
products as

Premium products for athletes.

Pro series for general youth who want to use in sport but
were not athletes.
Casual collection was consumers who were interested
sneakers footwear at lower prices.
Classics collection the classic variety of styles.

4/5

Overall alternative sports categories: By diversifying its product portfolio it

helped Vans to target the new segments thorough distribution outlets and core
sports that correlated to the brand.
(c) Expanded its distribution
Impact on Vans Customer base: Expansion in distribution helped Vans
to increase customer base increasing number of touch points and aligning
its supply and chain line. Initially vans owned 65 full priced stores and
then company opened 62 outlets to sell products at lower gross margin.
Further more Vans expended its distribution channel by 11 skate parks
which helped Vans to not only target on segment but following three
Independent Specialty
Mall-Based Specialty
Moderate Department
Furthermore company expanded its customer base by expanding its
distribution across different geographic locations.
Brand Image: Expansion in distribution channels helped Vans to improve
and expand its brand image by
Targeting more customer segment
Sporting more athletes
Offering more products
Overall alternative sports categories: By keeping skateboarding at the
core of their values and expanding their distribution channel helped them
to promote more sports categories in a flexible way.
(d) broadened its promotional mix;
Impact on Vans Customer base: NBC bought the television rights for
extreme sports, which helped customer to actively follow such category of
sports. Further broadening of promotional mix through sponsored event
and supporting emerging talent through media broadcasting, sponsoring
movies helped Vans to increase customer base significantly.
Brand Image:
The promotion campaigns through endorsements, skateparks and
entertainments continued to give the brand life. The public looked up to
the skateboard athletes who generated a strong following. The skateparks
associated itself to Vans which used it to promote its products and games.
The entertainment division promoted the Triple Crown series, warped
tour and the skateparks as well as the release of a movie Dogtown.
Overall alternative sports categories: Vans was no longer only
associated to just skateboarders but also started to associate itself to
other sports.
.

5/5