ASICS Shoes-Can a Record Past Performance Guarantee Future Success?
Case Code: BSTR686 Case Length: 14 Pages Period: - Pub Date: 2024 Teaching Note: Available |
Price: Rs.500 Organization : ASICS Corporation Industry : Textiles & Apparel Countries : United States Themes: Branding Strategy, Global Strategy International Marketing,Marketing Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Global Expansion
Right from its establishment, ASICS had gone in for high quality products which were a result of its innovations. The shoes catered to the specific requirements of sportspersons and were highly performance oriented. ASICS became a global brand in 1966, when the Japan National Team wore its shoes in the Mexico City Olympics. In the 1970s and 80s, the brand continued to expand globally and set up subsidiaries in the US and Europe..
Technological Innovation
ASICS always laid considerable emphasis on Research & Development and its product engineers continually interacted with athletes and trainers for product improvements and their feedback. The feedback helped the product engineers to work on improving on the products using advanced materials and the latest technology. The resulting product was offered to the players and athlete councils for trial and feedback was elicited for further product development. ASICS also collaborated with independent laboratories for continuous scientific evaluation of its products. The results of these evaluations were disclosed through various media to convince prospective buyers of its products..
Marketing Strategy
ASICS’s target markets in its initial days were performance athletes in various sporting categories and middle to old aged people who patronized the gel based cushioned shoes due to its comfort. Even though ASICS had a presence in the global market, the real push for the brand came after 2018, when it began to implement marketing strategies focused on technological innovation, endorsements by athletes, brand visibility, community engagement, and retail & in-store experience “I think that we’ve always had very strong products, and now what we’re doing is complementing those great products with great marketing. I think that we’re fortunate enough to truly be a purpose-driven brand. What we’ve been doing is going back to that founding purpose, and trying to bring that to life consistently in everything that we’re communicating. And I think that that founding purpose is perhaps more relevant today than it’s ever been,” opined Gary Raucher, Head (Product, Merchandising, and marketing) at ASICS..
Competition
The top five globally known shoe companies with the highest recorded revenues in 2022 were Nike at US$ 28 billion, Adidas at US$ 13.4 billion, New Balance at US$ 5.3 billion, Puma at US$ 3.7 billion, and ASICS at US$ 2.9 billion. The popularity and the competing factor of the top five shoe brands were known all over the globe due to the brands’ association with top athletes and their quality, innovative styles, and comfort factor (Refer to Exhibit V for More Information on ASICS Competitors)..
Challenges
ASICS had a huge portfolio of Intellectual Property (IP) rights for its many innovations and advances in footwear technology. In line with the company’s vision to “Create quality lifestyle through intelligent sport technology”, ASICS had developed high performing sports shoes at its R&D center in Kobe, Japan. Even with its design rights, patents, and trademarks, the company was facing the problem of its products being counterfeited across the world. Governments and company authorities had taken measures to check the problem, but more efficient and effective measures were required to be implemented..
Road Ahead
In the future, ASICS aimed to sustain its growth as part of its “ASICS VISION 2030”. The mission as per the “ASICS VISION 2030” was “To Create Quality Lifestyles through Intelligent Sports Technology, and our goal based on this is to ensure a world in which each and every one of us can engage in exercise and sports throughout our lives and continue to live in good health, both mentally and physically.”.
Exhibits
Exhibit I: Business Categories of ASICS
Exhibit II: Net Sales by Region in FY 2022 of ASICS
Exhibit III: ASICS’s Consolidated Statements of Income from FY2018 to FY2022
Exhibit IV: Various Awards Won by ASICS
Exhibit V: Additional Information on ASICS Competitors
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