ABSTRACT

This assignment revolves around the concept of marketing, design and innovation of a product
and its evolution during its life cycle to date and its significance in todays business environment.
The product chosen to be discussed in this assignment is footwear where there is particular focus
on the athletic footwear. The evolution of the sneakers have been remarkable and its creation has
been innovative.
The sneaker has changed in many ways, adapting to lifestyles, trends and needs. The athletic
shoes have evolved to accommodate the different needs of society. They have changed in trends
and material. They are lighter, more refined and neat.

1.0

INTRODUCTION

Marketing promotes a product or service to meet the needs and wants of a customer efficiently
and profitably as stated by Zbicinski, et al (2006 p 33) Marketing is providing a product or
service to satisfy customer needs, at a profit. Marketing and design of a product are correlated
as both are management strategies geared toward satisfying the changing needs of the public.
Forty 1986, cited by Mozota (2003 p 15) states The development of forms that both suited the
methods of manufacture and satisfied the tastes of the market was the work of design.
Design is hailed as the core ingredient to the success of a product at it bridges the gap between
innovation and marketing. Heskett (2005) cited by van den Hoven et al (2014 p 115) defined
design as the human capacity to shape and make our environment in ways without precedent in
nature, to serve our needs and give meaning to our lives.
Innovation may be defined as exploiting new ideas leading to the creation of a new product,
process or service. White & Bruton (2011 p 19) argues that innovation is more encompassing
and includes the process of developing and implementing the invention. Rubenstein cited by
White & Bruton (2011 p 19) defined innovation as the process whereby new and improved
products, processes, materials and services are developed and transferred to a plant and/or
market where they are appropriate. It is not just the invention of a new idea that is important,
but it is actually bringing it to market, putting into practice and exploiting it in a manner that
leads to new products, services or systems that add value or improve quality.

1.1

INFLUENCE:

The researcher has always been passionate about fitness hence the reason for selecting this
speciality product - sneakers as it plays a vital role in todays healthy lifestyle. Sneakers are
not only used to protect the feet but give additional support when exercising. Wearing sneakers
changes the way humans walk and how their bones distribute weight. When sneakers are
regularly worn those changes are reflected in a persons bones and ligaments. Without sneakers
there are a lot of injuries when exercising.
In this assignment an analysis will be conducted on the different brands of sneakers and on their
strategy in becoming a leader in the industry along with an identification of a specific brand and
its performance in the footwear industry.
2.0

HISTORY OF THE FOOTWEAR

Humans started wearing shoes about 40,000 26,000 years ago, (as anthropological research
suggests). The earliest known shoes are sandals dating from approximately 7,000 or 8,000 BCE.
The world's oldest leather shoe, made from a single piece of cowhide laced with a leather cord
along seams at the front and back is believed to date to 3,500 B.C. (See diagram 1). This would
be considered an invention for its use would have been for the protection of the feet from rocks,
debris and cold.
Levens (2014) states Innovation differs from invention in that innovation

refers to the use of a new idea or method, whereas invention refers more directly to the creation
of the idea or method itself.

Diagram 1

While rubber soled shoes called plimsolls or sandshoes were developed and manufactured in the
late 1800s the true life of the sneaker did not emerge until 1892 - the U.S. Rubber Company
introduced a rubber-soled and heeled shoes under a variety of brand names, which were later
consolidated in 1916 under the name Keds. In 1917 Keds were the first mass-marketed
successful sneakers (canvas top design with rubber sole). The word sneaker is traditionally
defined as a shoe consisting of a solid rubber sole attached to an upper made, usually, of canvas.
(See diagram 2). The word sneakers received its name because of its lightness and silence that
was provided by the soft rubber. The sneakers therefore was an innovation. Schumpeter (1983)
cited by van den Hoven et al (2014 p 115) defined innovation as the commercial or industrial
application of something new.

Diagram 2

2.1

EVOLUTION OF THE ATHLETIC SHOE

The sneaker has evolved in many forms such as shape, design, features and functionality.
Shape
In the 1800s the majority of footwear could be used with both feet (so called straight shoes)
making it difficult to differentiate the left and right side. In the late 19th century shoes finally
became made for each foot individually though the feet were not symmetry the gestalt rules of
symmetry construction was observed. The sneakers were first designed for specific use and the
shape was not important. It was the use of the shoe that was important. However, in 1920 the
shape of sneakers started to improve because it was now designed for other functionalities and
comfort was important for excel.
In 1908 Marquis M. Converse establishes Converse sneaker company, revolutionizing the game
of basketball for more than half a century. In 1920 Adi Dassler, founder of Adidas, begins
producing handmade training shoes in his mothers wash kitchen without electricity. In 1948
Puma Schuhfabrik Rudolf Dassler was founded and the world was introduced to the PUMA
Atom, PUMAs first football shoe worn by members of the West German football team.
In 2005 Adidas introduced the Adidas 1, the first ever production show to use a
microprocessor.
In 1960 Puma became the first sports shoes manufacture to use the vulcanization
production technique.
Between 1962 - 1979, the founders of Nike introduced many new improvements common in
modern running shoes such as, rubber waffle soles, breathable nylon uppers and cushioning in
the mid-sole and heel and Nike air technology revolutionizing the footwear industry as
substantial innovation swept the market. The company also developed the world renowned Nike
swoosh logo along with a new innovative athletic shoe design.
Nike illustrates two types of innovation: Radical innovation of dry dyeing their materials and
incremental innovation in product efficiency, producing the same shoes with less material.
Design
The design element of the sneakers has evolved over the centuries. The original designs were
basic black and white with big laces with the rubber sole. Over the years the sneaker industry
has become very competitive and design is one of the elements that companies use to gain
competitive advantage. With the introduction of advanced rubber, plastic, synthetic cloth, and
industrial materials in the 1950s enabled the creation of many new shoe designs thus providing
more comfort. As a result incremental innovation is surfaced
Features
When sneakers were first created the main feature was to cover feet and provide a new level for
comfort. Within time the features have increased tremendously. Some of the features introduced
over the years are a pump to tighten the shoe on your foot (REEBOK), reversible laces
(Converse), additional support for your heel and instep, timers for running and which now have

the ability to sync with digital portable music players. These features have been used to gain an
edge in the competitive market.
Functionality
In the current environment, sneakers are being manufactured for specific and multiple purposes.
Companies have developed a tactic to sell more shoes by manufacturing shoes based on the
needs of the user. Since each user will have different needs, there is a shoe designed for fashion,
running shoes, basketball, football shoes etc.,
The Companies:
Competitive Environment of Different Brands
The alethic footwear industry has evolved over the years where there have been a lot of entrants
into the market. It has become highly competitive where the relevant companies have implored
stringent strategies into their organizations to become industry leaders. The companies that will
be analysed in this industry are Nike, Reebok, Adidas, Puma and Fila.
Nikes core competencies exist in their effective marketing strategies and their innovative and
creative product design as explained by Moore (2008) the existing assets your organization
already has in place to exploit Core competencies are therefore, capabilities that serve as a
source of competitive advantage for a firm over its rivals. Core competencies emerge over time
through an organizational process of learning how to position different resources and capabilities
to a companys advantage. Focusing one of its corporate values on technology and innovation,
Nike has pioneered four shoe-cushioning systems that reduce shock, distribute pressure, protect
from impact and offer comfort.
Adidas Core Competencies: Technological driven, customer focus, brand recognition (broad and
unique portfolio), flexible supply chain, collaboratively competitive, team grounded in company
rich heritage
Key success factors are most significant to future success of a firm in industry. The KSFs for
NIKE are its distinctive marketing activities, extensive research and development effort to design
premium concert athletic products for customers, product differentiation and extensive
manufacturing, innovating and distribution capabilities. Nike Competitive Advantages SlideShare
Dynamic Capabilities of Nike
According to Helfat, Finkelstein, Mitchel and Peteraf et at (2007 p. 4) Dynamic capability is
the capacity of an organization to purposefully create, extend or modify its resource base. The
most effective way to manage and upgrade existing capabilities and resources and to convert key
weakness into strengths is to outsource. Nike has contracted out many functions such as
manufacturing and logistics to negate the impact of key weaknesses. Nike undertakes marketing,
product design and overall system integration but outsourced the other units to be economical.
To include in reference Eienhardt et a. (2000) suggests that for the long term competitive

advantage Nike could also use dynamic capabilities to enhance existing resource
configuration.

Another tactic that the companies use to gain competitive advantage is by developing an idea and
patent. One of the exclusive licences that distinguish Nike from the rest of its competitors is the
patented Air technology that the company uses to sell footwear. The process utilizes
pressurized gas encapsulated in polyurethane. Reebok also developed a patent known as the
Reebok pump which used to make the shoe tighter on your foot when the pump on the tongue of
the shoe was squeezed several times. Adidas also did it with a shoe called the predator which
has rubber patches attached with teeth like dimples to the outside of the kicking area of the boot
in order to allow the wearer to apply extra spin to the ball when passing and shooting.
In order to be termed valuable innovations, new products and services need to be strong enough
to progress through rigorous commercialization processes and into the
marketplace.Management expert Peter Drucker said that if an established organization,
which in this age necessitating innovation, is not able to innovate, it faces decline and
extinction.

Product Platform

Air Foamposite One

HIGH

Air Jordon 2

Flyknit Superfly Mercurial Obsidian

PRICE
Nike Lebron

Shoe Shox

COST LEADERSHIP
BRAND
Nike
LOW
Adidas

Puma

DIFFERENTIATON

TARGET AUDIENCE
DIFFERENTIATION
Reso
nanc
Age:15-35
Allows consumers to custom build their
eown shoes on its website
Income: Middle to High Income Peop
Highly innovative due to strong
Social Class: Upper middle, lowerle are
loyal
research and development
upper and upper class
to
Feelingsthe
- Sense Commitment
of
Age: 15-36
to product innovation, its
bran andrich heritage and strong history of
achievement
Income: Middle
abilityd to do connection to sports
Social Class: Upper Middle, upper
class
anything
and lower upper
Judgement - Distinctive by blending influences of
Age:15-30
High quality and innovation
sports, lifestyle and fashion
Active sports lifestyle
profiled brand
Imagery Symbol of Status and a cool assessory in people's
eyes

Performance High Technical Performance

Brand Salience Leader in Footwear Industry

The researcher is favourably inclined to NIKE shoes because in the footwear industry, the most
important attributes are fit and comfort which are highly personal. Nike has a well-established
commitment of delivering high-end products since their inception and their strong identity with a
recognized and distinguished brand name and logo, the swoosh, facilitates the differentiation of
its products from its competitors. Their constant innovative product strategy have etched an
image in the researchers mind as shoes that are not only technologically innovative (design your
own shoes) but also high performance standard which have led them to outperform other leading
brands such as Adidas and Puma. One of the most important sources of Nike brand equity is the
high perceived quality among consumers. The brand has positioned itself in the researchers
mind as a superior product which is costly but gives value for money with its high quality and
unique designs. Their shoes are always light-weight, durable and they feature great support and
breathable leather. Reebok utilizes garments in the fabrication of their shoes instead of leather
because it is more fashionable although it is less durable. Nike uses leather thereby fulfilling
their commitment to quality. Also Nike makes their products stand out with brilliant use of
colours.

The core building of Nike brand equity is brand association. Nike has associated its brand with
famous athletic celebrities that have similar personality as the brand achievers and winners.
The most famous example of brand association that personified Nike was the collaboration
between Nike and Jordon. That association symbolized Nike as a superior, achiever, successful
and amazing top performing brand. This association led to increased brand awareness.
Another important pillar in Nike is their brand credibility a commitment to delivering what
they promised. Their good relationship with its consumers established brand loyalty.
Nike has always considered performance their top priority by designing shoes according to high
standard of professional competition thus creating a reputation of great quality. Their loyal
customer base and great marketing techniques also contribute to their success.

M Brand Management Nike; Building a global Brand Case Analysis.

BA Marketing Analysis and Planning

REFERENCES
Constance Helfat, Syndey Finkelstein, Wll Mitchell, Margaret Peteraf, Harbir Singh, David
Teece, Sidney Winter, 2007 Dynamic Capabilities: Understanding Strategic Change in
Organzations, Blackwell Publishing, Oxford, UK
Levens M., 2014. Just the Facts 101, Marketing: Defined, Explained, Applied, 2nd Edition,
Content Technologies Inc.,
Moore, G. 2008. Dealing with Darwin: How
White M.A., Bruton G.D. 2011. The Management of Technology and Innovation, A Strategic
Approach, 2nd Edition, Cengage Learning, Ohio

Zbicinski I., Stavenuiter J., Kozlowska B., van de Coevering H., 2006. Product Design and Life
Cycle Assessment, Nina Tryckeri, Uppsala
Mozota B. B., 2003. Design Management: Using Design to Build Brand Value and Corporate
Innovation, New York, Allworth Press
Van den Hoven J., Doorn N., Swierstra T., Koops B.J., Romijn H., 2014. Responsible
Innovation 1, Springer D, New York

LOW QUALITY