1.

ExecutiveSummary
(Ding&English)

We,TeamVeritas,presenttoNewBalanceacomprehensivemarketingplanwhichisdesignedto
launchNewBalanceGolfinQ1of2014.WiththeguidanceofDr.YoonNaCho,ProfessorWard
Utter,andMr.PaulHeffernan,wewereabletoutilizethemarketingconceptswelearnedinour
CompetitiveEffectivenesscourseandappliedtheseconceptstowardformulatingourintegrated
marketingsolution.

InSeptember2013,weweregiventhechallengeoflaunchingNewBalanceGolfinNorthAmerica
(U.S.andCanada).Ourpromotionalbudgetwascappedat10%ofprojectedsales.Thus,withour
calculatedbudgetof$2million,wedevisedastrategicmarketingplanthatwillhelpNewBalance
penetratethecompetitivegolfshoemarketandeventuallyestablishastrongfootholdagainstitsmain
competitors:Nike,Ecco,andFootJoy.Inregardstototalgolfmarketshare,Nikeholds20.3%,Ecco
holds6.8%,andFootJoyholds46.3%(GolfDataTech,August2012).Currently,NewBalancehas
littletonopresenceinthismarket.However,weplantogrowitsnascentpresencethroughanumberof
strategies.Thegolfshoeretailmarketisvaluedat$227.4million(NSGA,2012)thishighvalue
marketisavaluableinvestmentthatNewBalancemustenterinordertoremaincompetitive.

Ourtargetmarketisthehighearning,White,millennial(ages1834)malewhopersonifiesthe
ambitious,competitive,sophisticatedgolfenthusiast.Heissomeonewhoisopentotryingnewthings
andistheactiveconsumerwhowillpurchaseseveralpairsofNewBalancegolfshoesforthevarying
weatherconditions.NewBalanceshouldtargetthisgolfenthusiastwithanichemarketingstrategyas
golfattractsaspecific,andnarrow,consumerpool.Withitsrestrictedbudgetandresources,targetinga
nicheisthemostviableandstrategicoptionforNewBalance.

Next,wedevelopedourpositioningstatementandvaluepropositionfortheNewBalanceGolf
campaign.Ourpositioningstatementreads,Fortheambitiousgolfenthusiast,NewBalancestrivesto
bringtogetherthecompetitivegolfingcommunitybyprovidingtopperformancegolfshoeswith
unprecedentedinnovativetechnologyandoneofakindcustomizationoptions.Ourvalueproposition
reads,Throughinnovativetechnologyandoneofakindcustomization,NewBalancegolfshoesoffer
thegolfenthusiaststrength,performance,andfinesselikenoothershoe.

Then,webegantodevelopourbigideasthatweregoingtodifferentiateNewBalancefromtherest.
Wewillcreateanapplication(app)calledOnParthatwillbeabletotrackandrecordusersgolf
statisticswhenevertheyplayaround.Thesestatisticscanthenbecomparedtothoseoffriendsand
colleaguesaswellasotherusersaroundtheworld.Inadditiontorecordingandcomparingstatistics,
thisappwillalsohelpuserscalculatetheirhandicap.Theappdoesthisbykeepingarunningtallyofthe
Page|1of50

usersscoresonacourseandmatchingthemagainstthedifficultyratingofthecourse.Theappwillthen
computetheusershandicapandgivethemtheoptionofpostingitforalloftheirfriendstosee.
Furthermore,golferswhohavepurchasedNewBalancegolfshoeswillhaveprivilegedaccesstocertain
restrictedcontentontheapp,suchasNewBalancesestablishedloyaltyprogram.Theseuserswillalso
receivespecializeddiscountsandcompanynewsthroughthisapp.WebelievethatOnParwillcreatea
golfingcommunitythatidentifieswithNewBalanceandbuildlastingcustomerrelationshipsforthe
brand.

Ourpromotionalstrategyhasthecentralcommunicationsthemeofbuildingastrongcommunityof
active,passionategolfers.Thisthemewillbeaccentuatedthroughouteachaspectofthepromotional
mix.Therearethreesubthemesunderouroverarchingcentralcommunicationstheme.Thefirst
subthemeoflivingahealthylifestyleandwalkingthegolfcoursereaffirmsNewBalancesmissionto
MovetheWorld.WearepromotingtheideaofBeanathlete,endurethecourse.Ouridea
resonatesandcorroboratesNewBalancesmission.Thesecondsubthemecentersonindividualityasit
promptsconsumerstobeoriginalandcreatetheirveryownuniquepairofgolfshoes.Third,OnPar
advocatesfosteringtheNewBalancegolfcommunity.Webelievethatourcentralcommunications
themeemphasizesourmaingoalsofappealingtothetargetmarketandwillhopefullybuildtheirbrand
loyaltyastheygrowwithNewBalance.

Thus,werecommendauniquepromotionalmixforNewBalancetolaunchthisgolfshoecampaign.We
plantoincorporateadvertisementsinmanydifferentmediumssuchasmagazines,instreamvideoads,
bannerads,postersinathleticshops,anddioramasinmalls.Webelievethatoursponsoringofcharity
golftournamentswillalsoincreasethepublicawarenessofNewBalanceseffortstoenterthegolfshoe
market.Furthermore,wewillemploytheuseofdirect,interactive,andsocialmarketingschemes
throughourYouTubewebseriesandourapp.Moreover,salespromotionswillbespreadoutduring
majorholidays.Inaddition,personalsellingwillbeperformedonadaytodaybasisintheNew
Balancespecialtystores.Belowisacondensedchartofourbudgetallocationforeachpromotionalmix
element:

PromotionalMix BudgetAllocation
Advertising $1,066,204
SalesPromotion <$157,796
PublicRelations $500,000
Direct,Interactive,andSocialMarketing $276,000
PersonalSelling <$157,796
Total $2,000,000
Figure1.1:BudgetAllocation

Page|2of50

Wehavenotapportionedspecificexpensesforsalespromotionandpersonalselling.Thus,thosetwo
promotionalmixelementswillsharetheunallocatedbudgetof$157,796.

WeunderstandthatNewBalancemayholdanolderandmoreconservativeconsumerbaserightnow,
butwewishtohelpNewBalanceappealtotheyoungandambitiousindividualswhofrequentthegolf
course.WebelievethatwecanmarketNewBalancegolfshoestoappealtothenewtargetmarket
whilestillretainingthecorecustomersthatNewBalancehascultivatedrelationshipswithforyears.Our
promotionalmixelementswillshowcaseNewBalancegolfshoesunmatchedcustomization,comfort,
andstyle.OurOnParappwillalsoappealtotheyounggenerationspenchantfortechnology,anditwill
fosterbothcompetitionandcommunity.

Toreiterate,ourcomprehensivemarketingsolutionisdesignedinresponsetothechallengeprovidedby
NewBalancebackinSeptember2013.Oursolutionconsistsofourcentralcommunicationsthemeof
buildingastrongcommunityofactive,passionategolfersthisthemedrivesourpromotionalmix
elements.WewilluseintegratedmarketingcommunicationstodeliverthemessageofBeanathlete,
endurethecoursethroughoutourcampaign.Ourgoalistoalignthismessagewithourapp,OnPar,in
ordertoraiseawarenessforNewBalancegolfshoesandpromptthegolfenthusiasttopartakeinthe
golfcommunitychallenge.WehopethatourtargetmarketwillbedrawntoNewBalanceGolfbythe
unprecedentedinnovativetechnologyandoneofakindcustomizationbehindtheshoes.Ourgoalisto
providethegolfenthusiastwithunmatchedstrength,performance,andfinesse.We,TeamVeritas,hope
thatourintegratedmarketingplanwillassistNewBalanceinpenetratingthecompetitivegolfshoe
marketandgoontobuildalongterm,larger,youngercustomerbasethroughits
performanceenhancing,oneofakind,formfittinggolfshoe.

Page|3of50

Page|4of50

2.MarketingChallengeandMarketingObjectives
(Murphy&Wilkinson)
2.1.MarketingChallengeSummary
Ourteamhasbeenpresentedwithamajorchallengeforthesemester.Wemustdevelopaunique
marketingplanthatcanpenetratetheextremelycompetitivegolfshoemarketamarketthatisforeignto
NewBalance.Furthermore,ourteammustaccomplishthisgoalwhileadheringtoastrictbudgetof
10%ofprojectedsales.Thislimitedbudgetispartofthechallengeitselfbecausewehavetoproject
futuresalesinordertoderiveaviablebudget.Intheshortterm,ourchallengeistohaveourmarketing
planreadyfora2014launch,butthechallengedoesnotendthere.Inadditiontolaunchingtheproduct,
wemustattainourlongtermgoalofsecuring10%oftheNorthAmericangolfshoemarketwithinfive
years.Thisgoalwillbedifficulttomeetbecauseseveralcompanies,suchasFootJoy,EccoandNike,
alreadyhaveastrongpresenceinthegolfshoemarket.

Inadditiontothemajorchallengesdiscussedabove,thereareseveralotherchallengesassociatedwith
thisproject.Forexample,theoverallgolfmarkethasbeendecliningslowlyoverthepastfewyears,
possiblyduetotherecession.Also,NewBalancewantsustofocusonayoungertargetmarket,even
thoughitsrunningshoesusuallyappealtoanolderdemographic.NewBalanceispushingthischange
becauseolderconsumersaremorelikelytowearshoesdesignedforyoungergenerationsthanyounger
consumersaretowearshoesdesignedforoldergenerations.Ourteamhasbeenpresentedwithawide
rangeofchallengesthissemester,butweareconfidentwewillbeabletoovercomethem.
2.2.MarketingObjectives
Ourmainobjectiveistocapture10%ofthegolfshoemarketinfiveyears.Thisobjectivemayseemlike
adauntingtask,butwehavebrokenitdownintowhatwebelievewewillneedtoselleachyearto
achieveit.Weprojectthatin2018,thetotalwholesalegolfshoemarketsaleswillbe$145.9million.In
ordertoachieve10%ofthemarketshare,oursalestargetsforthefirstfiveyearsare$5.0million,$8.0
million,$11.2million,$12.9million,and$14.6millionrespectively.Additionally,westrivetocapture
4%ofthegolfshoemarketbytheendofthefirstyear.Byusingthesesalestargetsasaguideforour
budget,wehavecomeupwitha$5.2millionbudgetoverfiveyearsanda$2.0millionbudgetforthe
firstyear.Wealsobelievethatthespikelessgolfshoemarketwillexpand,givingNewBalancethe
advantageofarapidlygrowingopportunity.Weaimtocapturea10%shareofthespikelessgolfshoe
marketbytheendofthesecondyear.Finally,wewantNewBalanceGolftobecomeaneveryday
nameamonggolfers.Bytheendofyearone,wewant75%ofgolferstobeabletorecognizeNew
Page|5of50

Balanceasagolfshoebrand.

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3.OverallMarketTrends&SWOTAnalysis
(Barrett&Kpassagnon)

3.1.InternalAnalysis
3.1.1.Strengths
Knownasaninnovativebrand
Minimalistfootwearmovement
Countlessawardsshowingsuccessandprominenceintheshoemarket
Footweardesignedtofitallwidthsandsizes
5.8percentmarketshareincustomizableshoes
Brandrecognition
Capital
Midsole
3.1.2.AnalysisofStrengths
NewBalanceisamultibilliondollarbrandwithsignificantcapital,acrucialindicatorthatithasthe
necessaryresourcestosuccessfullylaunchandmarketthisnewgolfshoebrand.Itisalsoawellknown
andprominentbrandintheshoemarketrankingthirdinternationally.Thisfactcorroboratesthenotion
thatNewBalancealreadyhashighawarenessamongstconsumers.Golferswillbemorelikelytotryout
itsshoessincethebrandrecognitionalreadyexists.Furthermore,NewBalancehasareputationof
strivingforcomfortandworkingforthebestshoepossible.Thisreputationwillfurtherencouragegolfers
totrythenewshoes.Moreover,NewBalanceisalsoknownforitscustomizableshoes.BecauseNew
Balanceisoneoftheveryfewbrandstoofferwidthsizing,itsetsitselfapartwhencustomerscanturnto
it,knowingthatitsshoesaremadespeciallytofittheirfeet.IfthiscustomizationisappliedtoNew
BalanceGolf,itwillattractthewidefeetconsumersthiswillgiveNewBalanceaslightadvantageover
itscompetitors.AnotherstrengthNewBalanceenjoysistheplethoraofawardsthatitwonoverthe
pastcoupleofyears.Namingafeware:BestGearAward(2013),BestRunningShoe(2012),and
EditorsPick:MostInnovative(2012)(NewBalance,2013).TheseawardsshowNewBalances
previoussuccessandrenownasasuccessfulshoebrand.
3.1.3.Weaknesses
Littletonomarketshareinthegolfshoemarket
LesscapitalthanNikeorAdidas
Trendofdecreaseingolfproductsalesduetotherecentrecession
Tryingtobreakintoanestablishedmarket
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3.1.4.AnalysisofWeaknesses
NewBalancesmainweaknessisthatitistryingtolaunchaproductintoanalreadyestablishedmarket
inwhichithaslittletonocurrentmarketshare.Thisweaknessisnotsomethingthatcanbefixedpriorto
theproductlaunch,soitmustbetakenintoheavyconsiderationwhendevelopingthebestmarketing
planandstrategy.Furthermore,NewBalancedoesnothaveasmuchcapitalorbrandequityasNikeor
Adidas.Asaresult,NewBalancedoesnothavetheoptiontobuyitswayintothemarket.Finally,
NewBalancehasnewandsimilarcompetitorsinthisparticularshoemarket,asseeninthechartbelow
(Figure3.1).AlthoughNewBalancealreadycompetesinothershoecategorieswithbrandssuchas
NikeandAdidas,thecurrentgolfshoemarketcontainsstrongandexperiencedcompetitorssuchas
FootJoy.HavingnewcompetitorsmakesenteringthismarketevenmoredifficultsinceNewBalance
hasnoexperienceinhowtosuccessfullycompetewiththem.

Brand
ShareofTotal
Market
Shareof
Spikeless
Market

Brand
Shareof
Spikeless
Market
FootJoy 46.3% 26.6% FootJoy 26.6%
Nike 20.3% 17.2% Nike 17.2%
Adidas 14.5% 13.0% Adidas 13.0%
Ecco 6.8% 20.0% Ecco 20.0%
Puma 2.6% 1.3% Puma 1.3%
Callaway 2.4% 2.5% Callaway 2.5%
Other 2.2% 1.8% Other 1.8%
Ashworth 2.0% 8.4% Ashworth 8.4%
TrueLink 1.4% 5.7% TrueLink 5.7%
Etonic 0.8% 0.1% Etonic 0.1%
GolfStream 0.4% 1.8% GolfStream 1.8%
Sandbaggers 0.4% 1.4% Sandbaggers 1.4%
Oalkey 0.1% 0.2% Oalkey 0.2%
100.0% 100.0% 100.0%
Figure3.1Source:GolfDataTech,August2012

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3.2.ExternalAnalysis
3.2.1.Opportunities
Spikelessshoesarecurrentlynotprevalentinthegolfmarket,buttheyarequicklybecomingmore
popular.Asillustratedbythechartbelow(Figure3.2),inthesecondquarterof2012,itshowsthat
spikelessshoeshavegrowntoalmost30%inmarketshare(GolfDataTech,2012).

Figure3.2Source:GolfDataTech,August2012

Meanwhile,reportsshowthatover90%ofgolfersareawareofspikelessshoes(GolfDataTech,
2012).ThisincreasingpopularityisanopportunityforNewBalancebecausecatchinganewtrendearly
leadstoastrongerandlargerpresenceinthemarket.Anotheropportunityincludestheincreaseinthe
useoftechnologyinmanymarkets.NewBalancecandifferentiateitselfbyutilizingnewtechnologyin
theshoes.
3.2.2.Threats
NewBalanceisnotrecognizedinthegolfshoemarket.NikeandAdidasalreadyhaveasignificant
amountofmarketshareandhavemorebrandrecognition.NewBalancewillalsohavesignificant
competitionfrommorespecializedcompetitorssuchasFootJoyandEcco.Asshownintheprevious
chart,thesefourcompetitorsaloneholdmorethan50%ofthegolfshoemarketshare.Asaresult,itwill
bedifficulttoconvincegolferstoswitchshoebrands.

Page|9of50

SWOTTable
Strengths
Innovativebrand
Minimalistfootwear
Countlessawards
Fitsmanywidthsand
sizes
Brandrecognition
Capital
Comfort
Weaknesses
Nomarketshare
Notasmuchcapital
asNikeorAdidas

Opportunities
Spikelessshoesonan
upwardtrend
Technology
Threats
Nothighlyrecognized
ingolfmarket
Largecompetitors
Notknownasagolf
shoe
Trendscausedbythe
recession
Figure3.3:SWOTTable
3.3.MarketTrends
Morecasualgolfers
Moreminoritiesplaying
Spikelessareontherise
Morewomengolfers
Economyisstillunstable

Havingmorecasualgolfers,moreminorities,andmorewomenplayingaredefinitelyopportunitiesfor
NewBalanceasthesetrendsareincreasingtheoverallmarket.Therelativelynewspikelessshoe
trendagrowingindustryisalsoanopportunityforNewBalance.Asaresult,NewBalanceshould
beabletotapintoandgrowwiththistrend,whichresultsinmoreprofitandagreatermarketsharefor
thecompany.However,thecurrenteconomicsituationisaloomingthreat.Underthecurrenteconomy,
noteveryonewhowishestogolfhasthemoneytodosoandthosethatcanaffordtogolf,maynot
necessarilyhavemuchextramoneytopurchaseadditionalaccessoriesforthegame.Asaresult,these
golfersmaynothavethemoneytoaffordanewpairofgolfshoes.
3.4.AnalysisofCompetitiveEnvironment
NewBalancehastwolargeoverallindustrycompetitors:NikeandAdidas.However,italsohastwo
specificgolfshoemarketcompetitor:EccoandFootJoy.Belowisabreakdownofthestrengthsand
weaknessesofthemajorcompetitors.

StrengthsofNikeandAdidas:capital,sponsors,establishedpresenceingolfmarket
Weaknesses:Nikesproductsareproducedinforeignfactories
StrengthsofEcco:FredCouplesaspromotionalfigure,theirspikelessshoesarewellliked
Page|10of50

Weaknesses:EccohaslessbrandrecognitionthanNewBalance
StrengthsofFootJoy:capital,establishedpresenceingolfmarket,qualityshoes
Weaknesses:stagnantgrowth,consumerperceptionsofoldfashioned
NikeandAdidashavesignificantcapital,soNewBalancewillhavetodifferentiateitsshoesinorderto
compete.EccoandFootJoyhaveadecentpresenceintheoverallgolfshoemarket,andEcco
especiallyhasastrongholdinthespikelessshoemarket.However,Eccodoesnothavethebrand
recognitionthatNewBalancemaintains.

Page|11of50

Page|12of50

4.TargetMarketingStrategy
(Ding,Kpassagnon,&Wilkinson)
4.1.MarketSegmentation
Whenpreparingamarketingcampaignforanewproductline,itisimportanttoconsideravarietyof
factorsbeforedevelopingaplan.Oneofthemostimportantaspectsofasuccessfulmarketingcampaign
ismarketsegmentationbecauseitallowscompaniestoallocatethebudgetutilizingthemostefficientand
costeffectivemeans.AccordingtoJamesGlasgowandJuliePirschsCompetitiveEffectiveness,three
mainaspectstoconsiderwhenselectingatargetsegmentinclude:
Attractiveness
Sizeandgrowthpotential
Page|13of50

Brandobjectiveandresources
Source:Glasgow&Pirsch,2013,p.178
4.2.TheIdealCustomerSegment
InordertolaunchNewBalanceGolf,werecommendusinganichemarketingstrategythatfocuseson
successful,White,millennial(ages1834),malegolfenthusiasts.Wecametothisconclusionthroughthe
recommendationsofMr.PaulHeffernanandexhaustiveresearchregardingtheidealtargetmarketfor
golfshoes.Wechosetofocusourmarketingstrategysolelyonthisnichebecausewebelieveitisthe
mostcosteffectiveandefficientwaytosolvethisparticularmarketingproblem.Golfhasanextremely
specifictargetmarketandthusitsaudiencecanbeattractedthroughnichemarketing.
4.2.1.Attractiveness
Competitors,suchasNikeandAdidas,aremorepopularamongyoungerconsumers,whileNew
Balancehasahistoryofsuccesswitholderconsumers.However,NewBalancemorespecifically,
Mr.Heffernanexpressesadesiretobecomemoreattractivetoayoungerdemographic.Ourtarget
marketresidesinthisattractiveyoungerdemographicsegment.Becauseofthegrowthofgolfwith
youngerindividuals,wehopetoleverageuponthissegmenttogrowNewBalancespresenceamong
thesegolfers.Inaddition,Whitemaleswhoareyoungandsuccessfularethemostlikelydemographicto
playgolf(GolfConsumerUS,2012,DemographicsofGolfers).Thisfactshowsthatthissegmentwill
beagoodstartingpointforNewBalancetosecureafirmfootholdinthegolfshoemarket.

4.2.2.SizeandGrowthPotential
Golfenthusiastsmaybeasmallersegmenttotarget,buttheybuymultiplepairsofshoesforvarying
weatherconditions.Thisfactincreasestheircustomerlifetimevaluebecausetheywillpurchasefarmore
shoesintheirlifetimethanwillaveragegolfconsumers.Also,younggolfersaremorevaluabletothis
campaignbecausetheyhavelongergolfingcareersthandoretirees.Inaddition,thegolfmarketasa
wholewillgrowastheeconomyrecoversfromtherecentrecessionbecausegolfandgolfequipmentare
luxuryitemsthatconsumerscutbackonduringeconomichardships.
4.2.3.BrandObjectivesandResources
NewBalancehastheavailablecapitaltotargetgolfenthusiastsbyfocusingonthisniche,NewBalance
avoidswastingcapitalonintegratedmarketingcommunicationthatwillotherwisebedirectedtowards
nongolfers.NewBalanceisalreadyanestablishedbrand,allowingittofocusitsmarketingefforts
solelyonitsgolfshoesratherthantofocusonestablishinganentirelynewbrandandlaunchinganew
product.Withourlimitedbudget,thisbrandawarenessisanenormousadvantageoverbrandssuchas
Ecco,whichhadtospendmarketingfundsonthegolfmarketandraisebrandawareness.Furthermore,
NewBalanceismakingaconsciousefforttoattractyoungerconsumerssincetheyarecurrentlyseenas
Page|14of50

abrandforolderpeopleorforpeoplewithwidefeet.Despitefocusingoureffortsonattractingyounger
customers,webelieveNewBalancewillstillbeabletoretainitscurrentcustomersbasedonitspositive
relationshipwiththem.
4.3.OtherThingstoConsider
Althoughourmarketingplanfocusesexclusivelyonournichetargetmarket,itwillmostlikelyreacha
largeraudienceaswell.Marketingtowardsaspecificgroupensuresthatmembersofthegroupwill
receiveourintendedmessage.Inadditiontothetargetaudience,minoritiesandolderconsumersmay
respondpositivelytoourmarketingcampaignaswell.Furthermore,boththeolderandyounger
demographicstrytoemulatemillennialsbecauseyoungerpeopledesiretobeolderandolderpeople
wanttobeyoungeragain.AlthoughitwouldbebetterifNewBalancehadthecapitalandnecessary
meanstofocusonmultiplesegments,wehaveafairlyrestrictedbudgetandwishtofocusonour
profitpotentialnicheinstead.WeneedtofocusonthesegmentthatwillmostlikelypurchaseNew
Balancesgolfshoesratherthantrytoreachawidevarietyofpeoplewhomaynotbeinterestedin
golfespeciallysincegolfhassuchadistinctaudience.
4.4.DefiningtheSegments&itsCriteria
Toreiterate,thebestcustomersegmentforNewBalanceGolfisthegolfenthusiast.Sinceweareusing
anichemarketingstrategy,wewillnarrowdownthemarketusingthemostimportantandrelevant
factorsprimarilydemographicsegmentationandpsychographicsegmentation.Afterwards,wewill
arriveatamuchclearerimageofthegolfenthusiastwewishtotarget.Thisgolfenthusiastwillbe
referredtoasChristopher.
4.5.DemographicSegmentation
Withinthelargegolfshoemarket,wecansegmentoutaportionoflikelyconsumersbyfirstusing
demographicsegmentation.Themostbasicdemographicsegmentationinvolvesgendersegmentation.In
July2012,Mintelconductedanonlinestudythatcomparedmenagainstwomenontheirfrequencyof
playinggolf.Thefollowingchart(Figure5.1)detailstheirresponses:

IncidenceandFrequencyofPlayingGolfbyGender,July
2012

All Male Female
Base:Internetusersaged18+ 2,000 980 1,020
% % %
Golfers(net) 20 28 12
Page|15of50

Iplayonceamonthormore 7 11 3
Iplayeverytwoorthreemonths 3 5 1
Iplayacoupleoftimesayear 5 7 4
Iplaylessthanacoupleoftimesayear 5 6 4
Nongolfers(net) 80 72 88
Iusedtoplaybutdontanymore 14 19 9
Ihaveneverplayedbutmightbeinterestedinplayinginthefuture 16 15 18
Iamnotinterested(Ihaveneverplayedandamunlikelytointhe
future)
50 38 62
Figure4.1Source:Mintel,July2012

Asdemonstratedbythechart,amonggolfers,menplayedmoreoftenthanwomen.Ofthesurveyed
men,28%associatedthemselvesasgolferswhileonly12%ofsurveyedwomendidthesame.
Nonetheless,theprimarystatisticthatdemonstratesmenbeingamoreprofitabletargetthanwomenis
illustratedbythefactthat62%ofwomenshoweddisinterestingolfdespiteeverhavingtriedthesport.
Meanwhile,linkinggenderwithincome,studieshaveshownthatmenandthosefromhouseholds
earningover$75,000[insalary]aremorelikelythantheirfemaleandlowerincomecounterpartstobe
golfers(GolfConsumerUS,2012,DemographicsofGolfers).ThesepointssuggestthatNew
Balancewillfindmoremalegolfenthusiaststhanfemalegolfenthusiasts.

Furthermore,demographicsegmentationcanbetakenastepfurthertoincluderacesegmentation.
Whites,Asians,andnonHispanicsarethemostlikelytohaveplayedgolfinthepast12monthswhich
isabouttwicetherateofAfricanAmericansandHispanics(GolfConsumerUS,2012,Impactof
RaceandHispanicOrigin).Thefollowingchart(Figure5.2)displaysthefindingsthatrelateracewith
thefrequencyofhavingplayedgolfinthepast12months.

PlayedGolf
intheLast
12Months
byRace,
Spring2012

Base Playedgolfinthelast12months
# %
All 24,330 13
White 19,216 14
Page|16of50

Black 1,788 8
Asian 704 15
Hispanic 7,887 7
NonHispanic 16,443 14
Figure4.2Source:Mintel/ExperianSimmonsNCS/NHCS,Spring2012

Asindicatedinthechart,at15%,Asiangolfersasawholedemonstrateahigherfrequencyofhaving
playedgolfinthepast12months.However,Whitegolfersarenottoofarbehindat14%.Wedecided
toprimarilytargettheWhitedemographicbecausethecustomerlifetimevalueofanAsiangolferisnot
ashigh.Asiansgolfingparticipationdropsoffconsiderablyfromteenageyears(aged1217)to
adulthood(aged18+)[and]oncepastage35,participationdropsoffconsiderably[again]duetotime
commitment(GolfConsumerUS,2012,ImpactofRaceandHispanicOrigin).NewBalancewould
benefitmorefromtargetinganaudiencewhowillspreadNewBalanceGolftofamilyandfriends
throughouttheirlifetime.Thus,wechosetofocusonWhitegolfersforourmarketingcampaignif
AsiansareattractedtoNewBalanceGolf,theyarecertainlywelcomebutarenotourmainsegment.

Inadditiontogenderandracesegmentation,weagainnarrowdownourtargetcustomersegmentto
includeagesegmentation.Menaged1834are69%morelikelythantheaverageadultaged18+to
haveplayedgolfinthelast12months.However,sameagedwomenare23%lesslikelythanthe
averageadulttohaveplayed(GolfConsumerUS,2012,DemographicsofGolfers).Thisstatement
corroboratesthenotionthatthemillennialagegroup(ages1834)shouldbeourtargetitalsosolidifies
ourpointthatmenshouldbeourprimarytarget.

Page|17of50

PlayedGolfintheLast12
MonthsbyRaceandAge,
January2011March2012

Base:Alladultsaged18+

Base Playedgolfinthelast12months
# %
All 24,330 13
Raceandage:
White,1834 3,304 18
White,35+ 15,912 13
Black,1834 414 7
Black,35+ 1,374 8
Asian,1834 193 20
Asian,35+ 511 11
Hispanicoriginandage:
Hispanic,1834 2,311 9
Hispanic,35+ 5,576 5
NonHispanic,1834 2,544 18
NonHispanic,35+ 13,899 13
Figure4.3Source:Mintel/ExperianSimmonsNCS/NHCS,March2012

Thegrayshadedareasinthechartabove(Figure5.3)representourareasofinterestforthismarketing
plan.Whencomparingthemillennialagegrouptothoseolderthan35,thechartshowsthatthe
millennialsplaygolfmoreoftenthanthoseolderthanthemwiththeexceptionofAfricanAmericans.
However,becauseAfricanAmericansareoutsidethescopeofourpreviouslychosensegment,this
detailisinconsequentialtous.

Ourfinaldemographicsegmentationisincomesegmentation.WearelookingtosegmentouttheWhite,
millennialmalewhohasachievedhighereducationandiscurrentlyenjoyingagoodsalary.Havinga
stablejobandsalarywillensurethathecanaffordtoplaygolf.

PlayedGolfin
theLast12
Monthsby
Household
Income

Base Playedgolfinlast12months
Page|18of50

# %
<$25K 3,793 6
$25K49.9K 5,456 8
$50K74.9K 4,482 13
$75K99.9K 3,150 17
$100K149.9K 3,579 18
$150K+ 3,870 24
Figure4.4Source:Mintel/ExperianSimmonsNCS/NHCS,2012

Asportrayedbythechart(Figure5.4),thereisasignificantjumpbetweengolfersinthesecondincome
bracket($25K49.9K)andthethirdincomebracket($50K74.9K).Thedifferenceof5percentage
pointsisa62.5%increaseinvariance.Thisdemonstrateshowwhenapersonhitsthatthirdincome
bracket,henowhasmoremoneytospendonthegameofgolf.Thus,ascanbeseen,thefrequencyof
playinggolfinthepast12monthsincreasesastheincomebracketsincrease.Therefore,thisdirectly
proportionalrelationshipbetweenincomeandgolfdemonstratesthatgolfisaluxurysport.Toreiterate,
wearetargetingtheWhite,millennialmalewhohascompletedsomeformofhighereducationandis
nowpursuinggolfasapassionheisthegolfenthusiast.
4.6.PsychographicSegmentation
Afterdemographicsegmentation,wearegoingtofurtherreduceourtargetaudiencewithpsychographic
segmentation.Psychographicsegmentationconsistsofthelifestyle,class,andpersonalityofthetarget
audience.Althoughpsychographicsegmentationisnotaseasilymeasuredasdemographic
segmentation,itisanimportantsegmentationmethodtotakeintoconsiderationsincegolfisalifestyle
sport.Byunderstandingourtargetaudiencespersonalityandlifestyle,wewillhaveabetterimageof
ourpotentialtargetcustomer.

Weenvisionourgolfenthusiasttohaveacompetitivenaturewhetheratworkoronthecourse.
Althoughheisnotaprofessionalgolfer,heenjoyscompetingwithhisfriendsorcolleagues.His
personalityalsoincludesbeingambitiousanddriventhisconstantmotivationmakeshimtheactive,
workingclassbusinessmanthathepersonifies.Hisambitionmakeshimresilientinnature.Furthermore,
thisgolfenthusiastisopentotryingnewthings,andthereforeisnotafraidtotrythenontraditional
spikelessshoes.

Thesepsychographicsegmentsalsolinkwiththedemographicsegments.Targetingthemillennialage
group,wearelookingfortheinnerdriveandambitionthatmakeshimthesoughtaftergolfenthusiast.
Becausewearelookingforindividualswithahighereducationdegree,weassumethatthesepeople
haveasuccessfuljobandthemoneytoparticipateinthegameofgolf.Balancingworkandplayis
difficult,butrewarding,whenthegolfenthusiastseeshispassionofgolfplayingnicelyintohislifestyle.
Page|19of50

OurpsychographicsegmentationanalysisissupportedbytheresultsoftheVALSSurvey.VALSisa
consultingandconsumerresearchservice.Typically,VALSwillcompilesurveyresultsanddefinethe
individualbyoneofeightpsychologicaldescriptors:innovators,thinkers,believers,achievers,strivers,
experiencers,makers,orsurvivors(StrategicBusinessInsights,2013,USFrameworkandVALS
Types).Asshownbythefollowingchart(Figure5.5),boxedinred,itdisplaysthepercentageof
peoplewhohaveplayedgolfinthepast12monthsineachofthepsychologicaldescriptorgroups.
Innovatorsprovedtobethegroupthatplayedgolfmostoften18%ofInnovatorswerecitedtohave
playedgolfinthepast12months.BelowisadescriptionofhowVALSdefineaninnovator:

Innovatorsaresuccessful,sophisticated,takechargepeoplewithhighselfesteem.Because
theyhavesuchabundantresources,theyexhibitallthreeprimarymotivations[ofideals,
achievement,andselfexpression]invaryingdegrees.Theyarechangeleadersandarethemost
receptivetonewideasandtechnologies.Innovatorsareveryactiveconsumers,andtheir
purchasesreflectcultivatedtastesforupscale,nicheproductsandservices.Imageisimportant
toInnovators,notasevidenceofstatusorpowerbutasanexpressionoftheirtaste,
independence,andpersonality.Innovatorsareamongtheestablishedandemergingleadersin
businessandgovernment,yettheycontinuetoseekchallenges.Theirlivesarecharacterizedby
variety.Theirpossessionsandrecreationreflectacultivatedtasteforthefinerthingsinlife.
(StrategicBusinessInsights,2013,Innovators)

InadditiontodefiningtheInnovator,VALSalsohighlightswhatitperceivestobeanInnovators
favoritethings:
BMW
Wired
Sparklingwater
Arewardingexperience

Source:StrategicBusinessInsights,2013,Innovators
BMWisclassifiedasaluxurycarbrandthatusuallycaterstohigherclassindividuals.Ourtargetmarket
issomeonewhofallsunderatleastthefourthincomebracket($75K99.9K)fromFigure5.4.Thus,the
factthatourtargetmarketlikesBMWscorroboratesthefactthatheissomeonewhohasthe
highpayingjobandthemoneytospend.Wiredattractsreadersthatearnanincomeof$75Kormore
annuallyandworksinthecomputerorhightechnologyindustry(UniversityofMinnesota).Thisalso
supportsourconclusionthatheissomeonewhoearnsahighpayingsalary.Furthermore,knowingthat
hemaylikesparklingwatershowshisrefinedtaste.Sparklingwaterisalsomoreexpensiveinrelationto
regularwater.Again,thispsychographicelementalignswithourdemographicelementofhimbeing
someonewhoearnssignificantmoney.Finally,VALSsuggeststhattheInnovatorenjoysarewarding
experience.Thegolfenthusiastissomeonewhoirrefutablyfitsthisdescription.Becausegolfishis
passion,thesportitselfisarewardingexperienceinthatitgiveshimsatisfactionandpossiblya
challengeespeciallyifheiscompetitivewithhisfriendsorcolleagues.Thus,thesefourfavoritethings
Page|20of50

thatVALSemphasizesarejustsomeofthemanyelementsthatconstitutethepsychographic
segmentationofourtargetmarket.

Figure4.5Source:VALS
TM
/MediamarkResearch&Intelligence,LLC,2008
4.7.ResultingCustomerSegmentGolfEnthusiast
Ourgolfenthusiastcustomersegmentsatisfiesthefollowingcharacteristicsnecessaryforawelldefined
segment:
Beahomogenousset
Bedifferentfromothersegments
Beacriticalmass
Havecoresimilaritiesinattitude,behavior,andeconomics
Berobustandreplicableovertime

Source:Glasgow&Pirsch,2013,p.169
4.8.3DimensionalSampleTargetCustomer
Thus,aftermuchdemographicandpsychographicsegmentation,wepresentourgolfenthusiast:
Christopher.ThissectionofthemarketingplanwillallowNewBalancetovisualizethetargetcustomer
itshouldpursue.ChristopherisaWhitemaleinhistwenties.Heisaformerhighschoolorcollege
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athleteandshowsmuchenthusiasmforthegameofgolf.AfterreceivinghisBachelorsDegree,heis
nowworkingasaninvestmentbanker.Thelonghoursofinvestmentbankingdonotchipawayathis
energyasheisresilientandfocusedonmovingupthesocialladder.Hisambitionandcompetitivedrive
extendtohissociallifeofgolf.HeseesNewBalanceGolfassomethingnewandworthtrying.The
spikelessshoeswillattracthimfortheirstrength,performance,andfinesse.Christopheristhedesired
golfenthusiastwhoiswillingtobuyafewpairsofNewBalancegolfshoesforthevaryingweather
conditions.Heistheprofitablecustomer,thepassionatecustomer.
4.9.TargetingStrategyNicheMarketingStrategy
OurstrategyistotargetChristopher,thegolfenthusiast,whoiswillingtobuyafewpairsofgolfshoes
fordifferentweatherconditions.ThisisthebeststrategyforNewBalancetousebecauseNewBalance
hastheresourcesandbudgettotargetthisnichesegment.Focusingitsresourcesonthisnichemarket
willallowNewBalancetocapitalizeonthispotentiallyprofitablemarket.Althoughtargetingsucha
specificgroupmayinitiallycauseNewBalancetomisssomecustomersnotdefinedwithinthisgroup,it
isthesmartermoveforNewBalancebasedontheresourcesandbudgetatitsdisposal.
4.10.WhyNotanUndifferentiatedMarketingStrategy
IfNewBalancewastouseanundifferentiatedtargetingstrategy,thecompanywouldbetryingto
encompassthemarketasawholeandfocusonwhatthesimilarneedsareamongallconsumersrather
thanonwhatisdifferent(Glasgow&Pirsch,2013,p.175).Thistypeofapproachwouldnotworkfor
NewBalance.First,thereisalreadyagreatamountofcompetitionwithinthegolfshoemarketand
breakingintosuchacompetitivemarketrequiresdifferentiation.Whileitmaybecosteffectivefor
certainbrandstocatertotheentiremarketasawhole,golfhasanarrowconsumerpoolandsocatering
toeveryonewillbeawasteofresourcesforNewBalance.Additionally,anarrowconsumerpool
requiresaspecificpromotionalmix.Asaresult,havingoneunifyingmarketingstrategywillinevitablyfail
inthegolfshoemarket.
4.11.WhyNotaMultiSegmentedMarketingStrategy
IfNewBalancewastouseamultisegmentedapproach,thecompanywouldhavetocreatea
distinctivemarketingplanforeachsegmentinthegolfshoemarket(Glasgow&Pirsch,2013,p.176).
Therecanbeinnumerable,small,uniquesegmentsofgolfersthatvarybasedondemographics,
psychographics,values,needs,andbehaviors.Targetingahandfulofsegmentswouldbetoocostlyfor
NewBalancegivenitsbudget.Byconcentratingonthisnichemarket,NewBalancecanbemore
confidentinfindingsuccessasallitseffortsandresourcesaredevotedtounderstandingandsellingto
thissegment.IfNewBalancetargetedmultiplesegments,itmaylosefocusandendupfindingminimal
successineachofthemanysegments.Thus,byutilizinganichemarketingstrategy,NewBalancecan
Page|22of50

secureaholdononesegmentandpossiblypermeateintoothersegmentsaswell.














































Page|23of50

5.BrandingRecommendations,Positioning
Statement,ValueProposition,&PerceptualMap
(Barrett,English,Kpassagnon,&Murphy)
5.1.CurrentBrandPerception
Currently,peopleperceiveNewBalanceasashoebrandcateredtowardsolderindividualsbecauseit
isknownforitswidthspecificationsandforbeingmoreconservative.Itisnotviewedasrevolutionary
orasstylishasotherbrands,whichcausesalackofinterestfromyoungerconsumers.Some8%of
thoseaged1824havepurchasedNewBalanceathleticshoesinthepast12monthscomparedto27%
ofthoseaged75+.ThisindicatesasentimentamongyoungerconsumersthatNewBalanceisabitofa
datedoroldfashionedbrand(Lipson,2012).Intermsofquality,peoplehavecometoexpectNew
Balanceshallmarkhighqualitystandardwithallofitsshoes.However,NewBalanceseemstolackthe
flashycharacteristicsthatothershoecompanies,suchasNike,utilize.Thisfactcouldbeamajorreason
behindNewBalancesinabilitytoresonatewithyoungerpeople,andthusleadingittoappealsolelyto
olderindividuals.Furthermore,NewBalancedoesnothavepastexperienceinthegolfshoemarket,
andistypicallyknownforitsrunningshoes.Asaresult,itwillfacestiffcompetitionfromotherbrands
suchasNikeandFootJoy.Inaddition,NewBalancewillhavetoestablishitsspikelessgolfshoes
becauseweprojectthatthespikelessshoemarketwillcontinuetogrow.AccordingtoGolfDatatech,
spikelessgolfshoeswerethefastestgrowingsegmentingolfequipment,andretailsalesofspikeless
golfshoes(inbothonandoffcoursegolfshopsintheU.S.)accountedformorethan25%ofallgolf
shoesales.Inordertokeepup,NewBalancewillhavetomakesureitadvertisesspikelessshoes
morefrequentlyinfutureyears.
5.2.BrandShift
WehaveoneoverarchingplantoshiftthecurrentperceptionthatNewBalanceisadatedor
oldfashionedbrand(Lipson,2012).Wewillutilizeinnovative,technologybasedmarketingstrategies
tospecificallyattracttheambitious,techsavvy,Whitemaleinthe1834agerange.Ourfirststrategyis
todevelopanapp(whichisdescribedinmoredetaillateron)thatwillpromotecommunityand
competitionamongfriendsaswellasattracttheyoungergolfers.ThisappwillresonatewithNew
Balancesmissiontobeacatalystandcoachtogetpeoplemoving,andwillalsoassistinchangingthe
perceptionthatNewBalanceisonlyfortheaginggolfer.Also,byfosteringthegrowthofanewgolf
community,NewBalancewillbegintoestablishitselfasagolffootwearbrand.

OursecondstrategyistoplacefootscannersinselectlocationsthroughoutNorthAmerica.Thesefoot
scannerswillbeabletoaccuratelytelluserswhatsize,width,andmidsoletheyshouldbewearing.The
Page|24of50

onscreendisplaywillshowtherecommendedshoeformingaroundthefootoftheconsumerinorderto
emphasizethatNewBalancemakesashoetailoredtoonesownfoot.Thefootscannerswillbeableto
syncwiththeNewBalanceGolfapptoimprovethebuyingprocessforreturningcustomersastheywill
nothavetoworryaboutrememberingtheirsizesandmeasurements.WewillutilizeaQRcodeatthe
endofthescanningprocessthatwilllinkdirectlytotheapp,sothecustomercansavetheresultshe
receivesfromthescan.Inaddition,theappwillrememberacustomerspreviouspurchasessohecan
seewhathepreviouslypurchased.Basedonthesepastpurchases,theappwillalsoprovide
recommendations.Byusingthefootscannerandsyncingitwiththeapp,thecustomerwillbeableto
seethebestshoesforhisparticularsizeandneeds.ThesescannerswillpromoteNewBalancescore
competencyofhavingthemostcomfortableshoes,andtheywillalsoshifttheconsumersbrand
perceptionofNewBalancetobeingmoretechnologicallydriven,whichwillinfluenceyounger
consumerstopurchaseitsshoes.Inordertosucceed,weneedtoshowthatNewBalanceismorethan
arunningshoebrandforolderpeople.
5.3.PositioningStatement
Ourpositioningstatementis:Fortheambitiousgolfenthusiast,NewBalancestrivestobringtogether
thecompetitivegolfingcommunitybyprovidingtopperformancegolfshoeswithunprecedented
innovativetechnologyandoneofakindcustomizationoptions.Weplantocreatefourmale
charactersthatrepresentouryoung,ambitious,andcompetitivetargetmarket,whichwewilldisplay
throughaseriesofwebisodesshownonYouTube.Thewebisodeswilldemonstratesalesobjectives,as
wellasmatchthepromotionalthemes,ofeachparticularquarter.Thesewebisodeswillalsocreatea
personalityforNewBalancebyallowingthetargetmarkettorelatetothecharacters.Wewillfind
specificcharacteristicsofourtargetmarketandattributethesecharacteristicstoourcharactersinthese
webisodes.EachcharacterwillalsohavehisownTwitteraccountandFacebookprofiletofurther
connectwithconsumers.Also,weplantohaveanapplication(app)forboththeiPhoneandAndroid
platformsthatwillcreateagolfcommunityforouryoungandcompetitivetargetmarket.Thetarget
marketwillbeabletousetheapptocomparegamescoreswiththeirfriendsscores.
5.4.ValueProposition
Ourvaluepropositionisasfollows:Throughinnovativetechnologyandoneofakindcustomization,
NewBalancegolfshoesofferthegolfenthusiaststrength,performance,andfinesselikenoothershoe.
ThebenefitsandvaluesofNewBalancegolfshoesinclude:comfortwithitssupportivemidsole,
customizationwithourvarietyofcolorsandwidthspecifications,andtheathleticstructureoftheshoe.
Thesupportivemidsolegivesourconsumercomfortnotofferedbyanyofourcompetitorswhilethe
widthspecificationgivesunmatchedcustomizationtofitthevarietyoffootsizesourconsumerswear.
NewBalancegolfshoesathleticstructurewillalsoenableourconsumerstoperformtothebestoftheir
ability.NewBalancegolfshoesencouragethegolfertowalkthe18holeswithitssmoothcomfortand
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tofeellikeanathleteeverystrokeandeverystepofthewaywithitsathletictouch.
5.5.PerceptualMap
Theperceptionsconsumershaveonshoecompaniestodayrevolvearoundthreemainattributes:one
beingthecomfortoftheshoe,anotherbeingathleticperformanceandfinallyitstrendinesswhichisthe
styleandfashionoftheshoe.ConsumerscurrentlyperceiveNewBalanceshoesasashoehighin
comfortandmoderatelyathleticincomparisontoitscompetitors.NewBalanceisalsoseenasashoe
cateredtowardsolderpeoplewhichmakesthebrandseemdatedoroldfashioned.Ourgoalisto
improveNewBalancesconsumerperceptionsothatconsumersalsoviewNewBalanceasahighly
athleticandfashionableshoebrand,andnotsimplyacomfortableshoebrand.NewBalances
competitors,suchasNike,FootJoy,andEcco,haveverydifferentconsumerperceptions.Nikeis
perceivedasahighlyathletic,verytrendyshoethatismoderatelycomfortable.FootJoyisperceivedas
amoderatelycomfortableandmoderatelyathleticgolfshoewithnorealfashionpresence.FootJoyhas
beenastaplebrandinthegolfshoemarketandisviewedasareliablebrandfromwhichtobuyshoes
from,butisnotlookedatasaleaderininnovationortrendiness.Eccoisperceivedasfashionable,
moderatelycomfortable,andmoderatelyathletic.Eccowithitsflashycolored,morecasualgolfshoes,
andearlypenetrationintothespikelessgolfshoemarketisviewedasaverytrendy,fashionable
brand.OurgoalistotransformNewBalanceintoatrendy,highlyathletic,andhighlycomfortableshoe
brand.IncorporatingallthreeoftheseattributesintoNewBalancesnewgolfshoeswillgiveNew
Balancesamoreattractiveimagetoitsconsumers.
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Figure5.1PerceptualMap

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6.PricingStrategy
(Ding&Wilkinson)
6.1.PricingRecommendations
Pricegreatlyimpactsthecustomerdecisionmakingprocess.Becausegolfshoesareshoppingproducts,
theyrequireconsumerstoexerciselimitedorextendedproblemsolvingwhendecidingwhichpairto
purchase.InCompetitiveEffectiveness,thecustomerdecisionmakingprocessisoutlinedinfivesteps:
1. Problemrecognition
2. Informationsearch
3. Evaluationofalternatives
4. Productchoice
5. Postpurchaseevaluation
Source:Glasgow&Pirsch,2013,p.127

ForthecurrentNewBalancecustomers,wehopetheywillonlyneedtouselimitedproblemsolvingas
theywillfollowtheheuristicamentalruleofthumbthatleadstoaspeedydecisionbysimplifyingthe
processofbrandloyaltywhenmakingthepurchase(Glasgow&Pirsch,2013,132).ForfutureNew
Balancecustomers,extendedproblemsolvingmaybeutilized.Duringthesecondstep(information
search),consumersmayemploywebapplicationssuchascomparisonshoppingagents.Theseweb
applicationscompareproductsbasedonpriceandcustomerreviewsandratings(Glasgow&Pirsch,
2013,p.131).Becauseourtargetmarketbelongstothemillennialagegroup,weexpectthemtobe
technologysavvyandtousetheseapplicationswhendecidingwhichpairofgolfshoestopurchase.
Page|28of50

Specifically,consumersusethesecomparisonshoppingagentstocomparepricesofsimilarproducts.
Whenconsumersutilizetheseapplications,theinitialscreendisplayingthematchresultswillnotdetail
specificshoeattributesorfunctions.Thus,theprice(usuallyboldedandaccentuatedperresult)willbe
oneofthefirstindicatorstoconsumerswhentheyaremakingtheirpurchase.

Toremaincompetitive,NewBalanceshouldpriceitsgolfshoesslightlylowerthanthoseofits
competitors:Nike,Ecco,andFootJoy.NewBalancegolfshoeswillbepricedfrom$79to$189.Inthe
QuantitativeMarketingandEconomicmagazine,astudytitledEffectsof$9PriceEndingson
RetailSales:EvidencefromFieldExperimentsshowedthatpricesendingin9weresoeffective
theywereabletooutsellevenlowerpricesfortheexactsameproduct(Ciotti,2013).Furthermore,
NewBalanceshouldkeepitspriceswrittensimply.AnarticlefromtheJournalofConsumer
Psychology,titledCommaNcentsinpricing:Theeffectsofauditoryrepresentationencodingon
pricemagnitudeperceptionsshowedthatwholenumberpriceswithoutthecomma,decimalpoint,
andcentsseemedcheapertoconsumers(Ciotti,2013).Inthestudy,threepricingstructureswere
shown:
$1,499.00
$1,499
$1499
Thetoptwopricesseemedfarhighertoconsumersthanthethirdprice.Thiseffectoccurs
becauseofthewayonewouldexpressthenumberverbally:Onethousandfourhundredand
ninetynine,forthecommaversionsversusfourteenninetyninefortheunpunctuatedversion.
Thiseffectevenoccurswhenthenumberisevaluatedinternally,ornotspokenaloud.(Ciotti,
2013)

Thus,NewBalanceshouldtakeintoconsiderationtheseslightnuanceswhenpricingitsgolfshoes.
6.2.PriceComparisons
Currently,thepriceofNikegolfshoesstartsat$90andgoesupto$180(Nike,2013).Pricingthe
NewBalancegolfshoeat$79maynotappeartobeasignificantdifference,butithassignificant
psychologicaleffectsonconsumers.WhennewcustomersarecomparingapairofNewBalancegolf
shoeswithasimilarpairfromadifferentbrand,pricemaybethedecidingfactor.Becausegolfshoes
areshoppingproducts,theyrequirethecustomerstospendmoretimeduringstepstwo(information
search)andthree(evaluationofalternatives)ofthedecisionmakingprocess.Inthisrecession,people
areinclinedtosaveonluxuryitems,soeverydollarcounts.Wedonotwantcustomerstolingerduring
Page|29of50

stepstwoandthree,waveringanddelayingtheirpurchaseduetopriceissues.Wewantthecustomers
toactontheirdecisiontobuyNewBalancegolfshoes.Furthermore,customizedNIKEiDgolfshoes
startat$225(Nike,2013).Thus,whenNewBalanceintroducesitscustomizationoptions,itshould
priceitsshoesaroundthatfigurewithoutgoingtoohighortoolow.Meanwhile,Eccogolfshoesrange
inpricefrom$99.99to$450(Ecco,2013).Duetoitshighrangeinprice,itisevidentthatEccohasa
largervarietyofshoes.DuringtheinitiallaunchofNewBalanceGolf,NewBalancewillprobablynot
haveasmanyavailablechoicesandtherefore,willnotneedtospreaditspricesasEccodoes,unless
NewBalancedecidestooffersignificantdifferencesinqualitybetweenonepairofshoesandanother.If
NewBalancecanpriceitsspikelessshoesatalowerpricethanthatofEcco,NewBalancewillstand
outasmoreaffordable.Similarly,FootJoyexhibitsawidepricerangeof$105to$270(FootJoy,
2013).NewBalanceshouldnotbetooconcernedwithmatchingFootJoyspricesasFootJoyisthe
leadinggolfshoebrandintheindustry.NewBalanceshouldfocusoncompetingwithNikeandEcco.

Althoughwearesuggestingthe$79189pricerangeforNewBalancegolfshoes,NewBalancemay
decidetogooutsideofthispricerange.However,NewBalanceshouldkeepinmindthatitshouldnot
makeitsshoestooinexpensiveasthequalitymaterialandcraftsmanshipthatwentintotheshoecannot
becompromised.Profitisstillthekeymotivatorforthisproject.Likewise,NewBalanceshouldnot
imposeastronomicalpricesthatwilldiscouragetheconsumersfrombuyingthisproductduringtheir
decisionmakingprocess.Thus,NewBalanceshouldpriceitsgolfshoesatslightlylowerprices
comparedtothoseofitscompetitors,butmustremainfairlysimilarastonotcompromiseallthetime
andeffortthatwentintomakingtheshoe.Ourgoalistohavetheconsumerfeelfullysatisfiedwithhis
purchase.Wedonotwanttoleavehimfeelinganycognitivedissonanceduringhispostpurchase
evaluation(stepfiveofthedecisionmakingprocess)duetoprice.

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Page|31of50

7.PromotionalMixandRecommendations
(Barrett,English,&Murphy)
7.1.BigIdea
Ourbigideaconsistsofanapplication(app)thatcanbedownloadedontoanysmartphoneandcanbe
accessedonline.Thisapp,calledOnPar,willincreaseNewBalancesbrandawarenessinthegolf
marketsinceanyonecandownloaditontohisorherphone.OnParwillkeeptrackofeachusersgolf
experiencesandstatisticsforaseason,andcomparethemtotheusersfriendsandcolleagues.The
golferwillenterwhereheplayed,hisscore,howmanyfairwayshit,putts,theweather,andastatusof
howtheroundwent.Hewillbeabletocomparehisperformancetoothergolferswhoplayedonthe
samecourseduringtheweek,comparehisperformancetohisfriendsperformance,andbegin
calculatinghishandicapasheplaysmorerounds.OnParwillalsoallowuserstocreategroups,similar
toFacebookgroups,tomakeiteasiertocomparetheirperformancewithspecificfriendsorcolleagues.
Thesegroupswillalsoallowgolferstosharetips,setupteetimes,orjustboastabouttheirlatestround.
Thegroupswillcreateacommunitywhilealsoallowingthegolfertobeverycompetitivewithhisfriends.
Page|32of50

Furthermore,therewillbesomecontentwithintheappthatonlypeoplewhohavepurchasedNew
Balancegolfshoescanaccess.PeoplewhopurchaseNewBalancegolfshoeswillreceiveacodeto
unlockthisrestrictedcontent,suchasNewBalancesestablishedloyaltyprogram.Thispartoftheapp
willalsosendspecializedcouponsdirectlytotheuseralongwithotherspecialsalesdiscountsand
companynews.

NewBalancewillalsoreceivebenefitsfromthisapp.Theappwillallowittocollectdataonhowmany
roundspeopleareplaying,howwelltheyplay,howoftentheyplay,andthecoursesthattheyvisitmost
frequently.Goingforward,thisdatawillassistNewBalanceindeterminingbettertargetingstrategies
andcouldevenhelpNewBalancedevelopanewdirectmarketingcampaign.Additionally,New
Balancecanalsoseewhatitscustomersaredoing.Forexample,itcouldseethatacustomerhasplayed
20roundsofgolfsincehislastpurchase,anditcouldsendhimacouponordiscountforhisnextpairof
shoestoenticehimtopurchaseanewpair.
Furthermore,golfclubswillbeabletoseehowtheircoursesfareamongthelocaltopplayerscompared
toothercoursesinthearea.Thisfactcouldhelprankthegolfcoursesinaparticularareamore
accurately.Golfcoursesareverycompetitivewitheachotherandrankingscomeouteverytwoyears.
TherearemanydiscrepanciesoverwhichcoursesarebetterandthestatisticsthatOnParcollectscan
helpwithdeterminingtheserankings.GolfcoursesandthegolfcommunitywilllookatNewBalanceas
averyimportantcomponentofthegolfmarketifNewBalancehasaroleincomparingandrankinggolf
courses.Clubslocally,regionallyandinternationallywouldbejudgedbasedontheaveragescoresand
comparisonsofthegolfersexperiences.Thisapplicationwouldincreasecompetitionwiththeprestige
ofeachcoursealongwiththecompetitivenessofthegolfers.

Weconductedasurveyof93collegestudentstoseethefeelingsoftheyoungergenerationonhowthey
thinkaboutthedifferentaspectsofgolf.Basedonoursurvey,younggolfersaresocialpeopleandwant
togolfwiththeirfriends.Resultsfromoursurveyshowedthat85%ofpeoplethinkthatgolfhasastrong
socialaspecttoitand91%ofpeoplewouldratherplaygolfinasocialsetting.OnParbringsthegame
offthecoursewithitsgolfingcommunityusedtocomparefriendsandshowwhoreallyhasthebest
gameintheoffice.ThisgenerationisverycomfortablewithappssoOnParisanextremelyviableoption
forcreatingagolfcommunity.Thus,NewBalancewouldbeabletocreateayoungandsocialgolf
communitythroughthisapplication.Withit,ourtargetmarketwouldimmediatelylookatNewBalance
ashavingastrongpresenceinthegolfmarket.

Somelimitationsforthissurveyarethatmostoftherespondentsareuniversitystudentsandsoareatthe
youngerendofourtargetmarketagerange,butwedonotbelievethisfactskewsthedatacollected
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fromthisprimaryresearch.Thesocialaspectquestionswereallansweredwithextremefavorto
creatingasocialnetworkamonggolfers.Golfisaverysocialgameandwithanincreasinglyyounger
generationplaying,thisapplicationwillbeperfectforthenewtrendsofgolf.
7.2.PromotionalSchedule
7.2.1.Q1Themes
Wewantpeopletobeencouragedtoloseweight.Ourmajormarketingthemeiswalkingthecourse
andgenerallymakingthehealthierchoiceswhensomeoneisonthegolfcourse.Wealsowantto
encouragewomentobuyourshoesbyadvertisingthefactthatNewBalancegolfshoeswouldbea
greatgiftforhersignificantother,andthesportcouldpossiblybeafunactivitytodotogether.
7.2.2.Q2Themes
Wewanttostartoffthisquarterbypushingourthemeofindividuality.Wewantourcustomerstoknow
thattheseshoesarecustommadejustforthem.Wehopethatthiswillbeoneofourmostpowerful
themes.Wearealsoreinforcingourthemeofwalkingthecoursefromthefirstquarter.Thisquarterwill
signalthebeginningofthegolfseason,andwewanttobuildonthatbyintroducingourthemeofbuying
afreshpairofNewBalancegolfshoestostartofftheseasononagreatnote.
7.2.3.Q3Themes
Quarter3willcontinuetobuildoffofourgoodpublicrelationsthemeinthepreviousquarter.Wewill
alsopushourOnParappbyincludingreferencestoitinourwebisodes.
7.2.4.Q4Themes
WewillcloseouttheyearbyfocusingourthemeofadvertisingonBlackFridayandCyberMonday.
Wewillalsocloseoutourongoingthemeofcompetitionbetweenthefourgolfers.

Q1 Q2 Q3 Q4
Releasevideo
advertisementwith
businessmanslife
improvingafter
walkingthegolf
course.
Putpostersin
athleticshops.
ReleaseShow
YourLovewith
NewBalanceadin
Bridesmagazineas
wellasonInternet
Increaseadsfor
NewBalanceGolf
andOnParapp
Begintocultivate
golfcommunity.
Releasead
depictingshoe
formingarounda
foot.
ReleaseGolf
Digestadwhich
depictsBean
athlete,endurethe
MidSummer10%
offsaleavailable
exclusivelyfor
OnParappusers.
Premiumappusers
willget15%off.
Postcharitygolf
tournament
highlightsonNew
Balancessocial
mediapages.
Continuewebisodes
depictingfour
Increaseadvertising
emphasisonBlack
FridayandCyber
Monday.
Releasead
depictingtwomen
competingforNew
Balanceshoeson
BlackFriday.
Webseriescomes
toaconclusionwith
afinalwebisodein
whichtheplayers
Page|34of50

bannerads.
10%offsalefor
NewBalanceshoes
ontheweekend
beforeValentines
Day.
Beginwebisodesof
four,competitive
golfingfriendson
YouTube.
IntroduceOnPar
app.
course.
Sponsorcharity
golftournamentsas
thegolfseason
begins.
Banneradson
Facebookto
increaseappusers.
Buyonepairof
shoes,getonepair
halfoffsalefor
FathersDay.
Continueweb
seriesandcreate
Twitteraccounts
forthefourgolfers.
golfersonvacation
stillupdatingtheir
OnParaccounts.
wivesare
determinedtoget
theirhusbandsout
ofthehouseand
theyresorttoNew
Balancegolfshoes
toencouragethem
todoso.
Dependingonits
success,wemay
carrytheweb
seriesintothe
followingyears.
Figure7.1:PromotionalSchedule

7.3.PromotionalStrategy
7.3.1.ElaborationofThemes
InQ1,wehavetwomajormarketingthemes.Thefirstthemebuildsoffofpeoplewantingtoimprove
themselves(specificallyhaveahealthierlifestyle)astheirNewYearsresolution.Weplantomakea
videoadvertisementthatdepictsanoverweightbusinessmanthatisnothappywithhisjoborgolfgame
atthebeginningofthevideo.Afteraharddayofwork,hisluckseemstogetworsebecausethegolf
clubisalloutofgolfcartssoheisforcedtowalkthecourse.Heplaysagreatround,anddecidesto
walkthecoursefromthenon.Thecommercialgoesontoshowhimlosingweight,improvinghisgolf
game,andalsohavingmoresuccessathisjob.TherewillbenumerousshotsofhisNewBalancegolf
shoesandhishappinessandsuccess,inordertogenerateaconnectionbetweenthetwo.Thisvideowill
beaninstreamadbeforeYouTubevideos.Wewillplaceitbeforehowtovideosofpeoplewanting
toloseweightorimprovetheirgolfgame.Inconjunctionwiththatsametheme,wewillalsosend
posterstoprofessionalsportsshopsandspecialtystoreswheretheycanusetheseposterstolinethe
storewindows.Inaddition,theseposterswillbeplacedonoutofhomeadvertisementmaterials,such
asbusesandmalldisplaysinstrategicgeographicregionssuchastheSouthAtlantic,WestSouth
Central,andMiddleAtlantic(SBRnet,2012).Theseposterswillsimplyread,Beanathlete,endurethe
courseandhaveaQRcodeinthecorner,aNewBalancelogo,andasmalldescriptionofhowto
downloadourOnParapp.TheQRcodewilllinkdirectlytoawebpagethatchallengespeopletowalk
thecourseinsteadoftakingthelesshealthychoiceofdrivingacart.Therewillalsobeaplugintherefor
ourapp.Althoughourappisourmainidea,wedonotplantoheavilyadvertiseitduringthecampaign
launchbecausewedonotthinkwearegoingtogetmanydownloadsduringthecoldmonthsofJanuary
andFebruary.Therefore,wecanusethesemonthstoprototypeandtesttheapp,andprepareforthe
influxofdownloadsinQ2.

AlsoinQ1,wehaveaShowYourLovewithNewBalanceGolfthemethatwillfocusonattracting
womentobuygolfshoesfortheirsignificantother.Weplanonrunninga1/3ofapageadinBrides
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magazine.WechoseBridesbecausethemedianreaderagewas34.6,andatthisage,sheprobablyhas
amaninherlifewhoappreciatesthegameofgolf.Thismeansthathersignificantotherisprobablyright
inourtargetmarketagerange.TheadwillfeatureawomangivinganelatedmanapairofNewBalance
golfshoesforValentinesDay,andthecaptionwillread,Agiftforyourman.Wewillalsoconvert
thismagazineadintoanInternetbannerad.Finally,wewillrunaflashsaleduringtheweekendbefore
ValentinesDay.WewillsendoutemailsandnotificationsontheOnParappthatinformpotential
customersthatgolfshoeswillbe10%offthatweekendinstoresandonline.

AlsobeginninginQ1,wewillbeginproducingandreleasingaseriesofwebisodesonYouTubeand
NewBalancessocialmediapages.Theserieswillshowfourcompetitivefriendswhoareconstantly
braggingabouttheirownsuccessandmakingfunofeachothersfailures.Initially,wewillspotlighteach
golfersotheaudiencecangettoknoweachgolfersstoryandchooseafavorite.Forexample,sinceit
iswinter,wewillshowthemcallingeachotheruptotalktrash,whiletheypracticeputtingintocupsin
theiroffices.TheywillbewearingNewBalancespikelessgolfshoes,andalsobeusingtheOnParapp
tocheckoneachotherspastroundscores.Asthewebisodesarereleasedindifferentquarters,there
willalwaysbeaconstantfocusontheNewBalancegolfshoes.Wechosetoproduceaseriesof
webisodesbecausethepersonalitiesandstoriesofthecharacterswillpullcustomersinandkeepthem
attracted,givingusnumerouschancestoshowoffNewBalancegolfshoes.Wewillbesuretoalways
emphasizetheshoes,sothattheproductisnotlostamongallthehumoranddrama.Inaddition,
becauseofthecompetitivenatureofthefriends,wecanseamlesslyworktheOnParappintoeach
advertisement,possiblyhighlightingadifferentfeatureineverywebisode.

InQ2,weplantoincreaseadvertising,focusingonthefunctionalityoftheshoe,andalsobuildingthe
NewBalancecommunitythroughtheOnParapp.Ourfirstthemeis:StartOfftheGolfSeasonwitha
GolfShoeJustforyou.WewillcreateaninstreamvideoadonYouTube,thathighlightstheNew
Balancegolfshoeformingaroundthefoot,inwhichwewillspecificallyhighlightNewBalancesmidsole
asawaytogainacompetitiveadvantageonthegolfcourse.Afterseeingtheshoeformaroundthefoot,
wewillpanouttoanathleticmalegolferinthreeframesdoingthreedifferentthings.Inoneframehewill
besmashingadrive,inanotherhewillbewalkingthecourse,andinthethirdhewillbeputting.They
willemphasizethegolfshoesstrength,performance,andfinessewhichisourvalueproposition.
Additionally,wewillplacea1/3ofapageadvertisementinGolfDigest.Theadwillshowthefeetand
calvesofastrongathleticmanwiththepinoffinthedistance.ReinforcingouradvertisementinQ1,this
adwillalsoread,Beanathlete,endurethecourse.WewanttocontinuetobuildonNewBalances
missiontomovetheworld.

Asthegolfseasonstarts,wewillbeginourthemeofKickingOfftheGolfSeasonwithaPairofNew
BalanceGolfShoes.Weplantogenerategoodpublicrelations,andgivebacktocommunitiesby
sponsoringcharitygolftournaments.ThesetournamentswillberuninconjunctionwiththeNewBalance
Foundation.BecausetheNewBalanceFoundationfocusesonfightingobesity,wewillencourageand
incentivizeparticipantstowalkthecourse.Ifparticipantsagreetowalkthecourse,wewillallowthem
totryoutapairofNewBalancegolfshoesforthetournament.Attheend,wewillgivethemtheoption
tobuytheshoesanddonateaportionoftheproceedstocharity,orturntheshoesbackinandreceive
acouponsotheycanbuyadifferentpaironlineandstillhaveaportionthemoneygotocharity.

Toincreaseappusers,wewillplaceabanneradonFacebook.Theadwillread,Competewith
Page|36of50

Friends,andgiveashortdescriptionoftheappanditscapabilities.IfusersseeitonFacebook,and
immediatelylinkittotheirFacebookaccounts,wethinkthatthenumberofdownloadswillincrease
exponentially.AsQ2comestoaclose,wewillofferaflashsalearoundFathersDay.Thisflashsale
willbetargetedatyoungerfatherswhoarelookingtobuyapresentfortheirolderfathers,andmaybe
buyapairforhimselftoo.Theadwillshowabuyonepair,getonehalfoffsale.Weknowthatthe
oldergolferswillpreferNewBalance,andtheirsonswillknowthis.Thesonswillgotobuyapairfor
theirfathers,andhopefullypickupapairforthemselves.Conversely,theolderfathercouldgotobuya
pairforhimself,andpickupapairforhissonaswell.

ThewebisodesinQ2willfeatureourfourgolferscompetinginacomicalmadeupchampionship.We
willcontinuetobuildthecharactersbygivingthemeachTwitteraccountssotheycanupdateviewersof
theirexploitsandpostanynewvideos,inordertokeepthecustomersengaged.

InQ3,wewillrunamidSummersalethatwillbeexclusivetoappusers.Onlythosewhohavetheapp
installedwillbeabletocashinonthe10%offallNewBalancegolfshoesinstoresandonline.Those
whohavethepremiumversionoftheappwillbeupgradedtoa15%offcouponinordertopromote
brandloyalty.DuringQ3,wewillalsoposthighlightsofthecharitygolftournamentsonNewBalances
socialmediapages.Duringthetournaments,wewillinterviewparticipantsandrecordvideosofaction
throughoutthedays.WewillpostthesevideostooursocialmediapagesduringQ3,togenerateas
muchpositivepublicrelationsaspossible.

ThewebisodesinQ3willfeaturethegolfersonvacationatvariousspotsaroundNorthAmerica,
playingroundsofgolfintheirNewBalancegolfshoes,updatingtheirOnParapps,andenjoyingthe
summer.

Q4willhaveincreasedmarketingactivitiescenteredaroundBlackFridayandCyberMonday.Wewill
runaninstreamadbeforeYouTubeandESPNvideos.Thevideowillfeaturetwomencompetingon
golfcourses,checkingtheirapptoseehowtheotheroneisdoing,andthengoingouttotrytobeatthe
othersscore.Next,theywillbothseeanadforaBlackFridayNewBalancegolfshoesale.Whenthey
arriveatthestoreatmidnight,itwillbeacold,tenseshowdown.Assoonasthedoorsopen,theywill
racetothegolfshoesectionanddiveforapairofNewBalancegolfshoes.Finally,aworkerwillcome
outandsay,Youguysdoknowwehaveplentymore?Thecommercialwillendwithadescriptionof
oursalesonBlackFridayandCyberMonday.

Thewebisodeswillconcludebyshowingthemenandthewivesofthefourmaincharacterspreparing
forandenjoyingtheholidays.Themenwillallbebuggingtheirwives.Asaresult,thewiveswillbuythe
fourmennewpairsofNewBalancegolfshoestogetthemoutofthehouse.Overall,ifthewebisodes
areasuccess,werecommendcontinuingitintothesecondyearofpromotion.
7.3.2.ExplanationofThemes
Atthelaunchofourstrategy,wearegoingtoengagecustomersintwodifferentways.First,byissuing
themthechallengetobeanathleteandendurethecourse,wehopetobuildonmanypeoplesNew
Yearsresolutionstoleadahealthierlifestyle.Thesecondwaywewillengagethecustomersisby
introducingourseriesofwebisodes.Weexpectthatourfourcharacterswillbecomewellreceivedand
Page|37of50

lovedbyourviewers.Wewantpeopletocomebackandwatchfuturewebisodes,sowehavetobuild
charactersthatpeoplethinkarefunnybutrelatable.

Ourpromotionalstrategyhasthecentralcommunicationthemeofbuildingastrongcommunityofactive,
passionategolfers.First,wewanttobuildonNewBalancesmissiontoMovetheWorldandfight
obesity.Aspreviouslymentioned,ourBeanathlete,endurethecourse,reaffirmsthismission.Weare
confidentthoseadvertisementsinconjunctionwiththecharitygolfcoursesthatpromotewalkingthe
entirecoursewillgetpeoplemovinginNewBalancegolfshoes.Oursecondoverarchingthemeisone
ofcommunityandcompetitionamongfriends.WeplantobuildagolfcommunitythroughtheOnPar
app.TheappwillbeanavenueforNewBalancetoestablishitselfasastronggolfshoebrand,aswell
asbuildcustomerbrandloyalty.Ourseriesofwebisodeswillshowfourcompetitivefriendswholove
playinggolfintheirNewBalancegolfshoesandusingtheOnParapptokeepupwitheachother.Both
ourBeanathlete,endurethecoursethemeandourwebisodesareaimedatcreatingemotional
connectionswithcustomers.Ifpeoplewanttoleadahealthierlifestyle,wewanttogivethemtheextra
motivationtheymayneed.Ourfourcharactersoftheseriesshouldberelatabletoourtargetmarket.
Byconnectingemotionallywiththecustomers,wehopetobuildbrandloyaltyasourcustomersgrow
older.

WefeelthatinorderforNewBalancetobecomesuccessfulinthegolfshoemarket,itmustbreakthe
brandperceptionthatitonlymakesrunningshoes.Therefore,weareallocatingresourcesinto
promotingtheOnParapp,becausewefeelthatthisisacreativewayforNewBalancetobuildbrand
awarenessthatitisenteringthegolfshoemarket.IfpeopleareusingaNewBalancegolfapplication,
webelievethattheywillbemorelikelytopurchaseapairofNewBalancegolfshoes.
7.3.3.Budget

DescriptionofAdvertisement TotalCost(indollars)
GolfDigest1/3ofaPageAd 64,929
Brides1/3ofaPageAd 44,275
Webisodes 240,000
ProductionofOnParApp 30,000
AppMaintenance 6,000
YouTubeAds(production) 150,000
YouTubeInstreamAds(spot) 600,000
DioramasinMalls 120,000
Transit 75,000
ProductionofPosters 12,000
CharityGolfTournaments 500,000
Total 1,842,204
Figure7.2:BudgetBreakdown

Ofour$2millionbudget,wehaveanextra$157,796ofunallocatedbudget.Thisbudgetcouldbeused
foranyopportunitiesorproblemsthatmayariseduringourfirstyearofmarketing.Wecouldalsoinvest
Page|38of50

itforayear,andthenputittowardspromotionsinfutureyears.

Howwecalculatedcosts:
ThecostforGolfDigestandBrideswereretrievedfromtheCondeNastMediaKit.
Webisodes:Webisodesonaveragecostabout$1,0003,000perminute(Albrecht,2007).We
planonmakingaroundsix12minutewebisodesperquarter.Tobesafewebudgeted$5,000
perminuteandassumedwewouldproducesix2minutevideosperquarter.Thistotaled
$240,000.
ProductionoftheOnParapp:Theestimatedcostofproducingourappwas$18,500(Oomf,
2013).Becausewemaywanttoupgradeourapp,andappscansometimesgooverbudget,
weallocated$30,000.
Appmaintenance:Appmaintenanceisestimatedat20%oftheproductioncostsperyear.20%
of$30,000gaveus$6,000.
YouTubeAds(production):Weplantoproduce3ads,andatanaveragecostof$50,000,that
gaveusatotalcostof$150,000.
YouTubeInStreamAds(spot):InstreamYouTubeadscost$0.100.30perclickandweare
allocating$150,000perquarter,whichgivesus$600,000.
DioramasinMalls:Therearemorethan150,000mallsinNorthAmerica,andweplantotarget
10,000.Withanaveragecostofabout$1,000permall,permonth,wehaveallocated
$120,000.
Transit:Themediacostguidelinessaid$25perunitpermonth(Cho,2013).Wewilltarget250
citiesfortheyear,whichgivesus$75,000.
ProductionofPosters:Wehaveallocated$3,000perquarter,whichtotals$12,000forthe
year.
CharityGolfTournaments:Wehaveallocated$10,000percharitygolftournament,andwe
plantorun1perstate(excludingsomestateswheregolfisnotprofitableenoughandincludinga
fewCanadianprovinces)whichtotals$500,000.

Page|39of50

8.Appendix
(Brown,Liao,Murphy,&Seabaugh)
8.1.PrimaryData
Togatherprimaryresearch,ourteamconstructedanonlinesurveytogatherconsumeropinions
regardingourcentralcommunicationsthemeandbrandimage.Thesurveycollectedresponsesfrom93
collegestudentsfromavarietyofdisciplinesandclassyearstodetermineconsumeropinionsregarding
thesocialaspectandbrandrecognitionofgolf.Belowaretheresults:

Page|40of50

Figure8.1:Gender
Page|41of50

Figure8.2:ClassYear

Page|42of50

Figure8.3:Discipline
Page|43of50

Figure8.4:HaveYouPlayedGolf
Page|44of50

Figure8.5:Frequency
Page|45of50

Figure8.6:AwarenessofSpikelessGolfShoes
Page|46of50

Figure8.7:GolfBrandRecognition
Page|47of50

Figure8.8:SocialAspectofGolf
Page|48of50

Figure8.9:SocialGolfingvs.SolitaryGolfing
Page|49of50

Figure8.10:PhoneUseWhileGolfing

Page|50of50

9.References
(Brown)

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http://gigaom.com/2007/11/28/whatdoesitcosttomakeawebisode/

Cho,YoonNa.(2013).MediaCostGuidelinesforNewBalanceFall,2013[WordDocument].

Ciotti,G.(2013,June12).10pricingstrategiesthatcandrasticallyimprovesales.Retrievedfrom
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CondeNast.(2013).Brands/MediaKits.Retrievedfromhttp://www.condenast.com/brands

Ecco.(2013).Mensgolfshoecatalog.Retrievedfrom
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z=39

FootJoy.(2013).Mensfootwear.Retrievedfromhttp://www.footjoy.com/catalog/mens.asp?c=5

Glasgow,J.&PirschJ.(Eds.).(2013).Competitiveeffectiveness.Boston,MA:Pearson.

GolfDatatechLLC.(2012).GolfDatatechreleasessecondstudyongrowingpopularityof
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gif
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Lipson,A.(2012,June).Brandsofathleticfootwearpurchased.Shoppingformen'sandwomen's
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NewBalance.(2013).Publicrelations:Awards.Retrievedfromhttp://www.newbalance.com/Public
Relations_Awards/about_public_relations_awards,default,pg.html

Nike.(2013).Mensgolfshoes.Retrievedfrom
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NSGA.(2012,August).Footweargolf:marketsizetotalconsumerpurchasesinunits&dollars.
SBRnet.Retrievedfromhttp://www.sbrnet.com.ezp1.villanova.edu/research.asp?subRID=195
ODonnell,F.(2012,November).Demographicsofgolfers.ThegolfconsumerUSNovember
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ODonnell,F.(2012,November).Frequencyofplayinggolf.ThegolfconsumerUSNovember
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ODonnell,F.(2012,November).ImpactsofraceandHispanicorigin.ThegolfconsumerUS
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Oomf.(2013).Howmuchtomakeanapp.http://howmuchtomakeanapp.com/

SBRnet(SportsBusinessResearchNetwork).(2012).Footweargolfdemographics.Retrievedfrom
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StrategicBusinessInsights.(2013).Innovators.Retrievedfrom
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StrategicBusinessInsights.(2013).USframeworkandVALStypes.Retrievedfrom
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UniversityofMinnesota.Wiredmagazine.Retrievedfrom
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