Case Analysis on Pacer Athletic shoes

BY Group 8
(Mr. Anil Kumar MP13009 & Mr. Vishav Sharma MP13070)

Pacer Shoes
Case Analysis
1.
Background:

Henry Carson founded the company Pacer Athletic shoes in

1970s to serve marathon runners.

Star product Pacesetter becomes hugely popular among

serious athletes.

Company enters into broader market to counter competition.

2.
Situation Analysis:

Pacer Athletic shoes extends its product line in early 1990s.

Enters in casual runners & walker segments

Customers being lured by the competitors towards flashier

shoes

Pacesetter plus replaces hugely popular original modelpacesetter.

RaceOnes quality not up to mark- toe stitching started to

fray.

Old consumers (read serious athletes such as Cal Lindsen)

complaining about new products.

Sluggish sales

Regional share is eroding

No increase in market share of broader shoe market inspite

of huge marketing expenditure
3.
Problem Identification:

Loss of core identity- technical excellence-Serious athlete

shoes

Confusion in mind of consumers about what the company

really stands for.
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None of the companies products is making its target
consumers happy
4.

Alternatives before the firm:

Reintroduce the original pacesetter

Test all products properly before their launch- more quality

checks

Increase & improve the shoe making capacity/capability to

ease off burden

Stop making walking shoes & focus only on serious athletic

shoes

Introduce a flashier/ stylish athletic shoe model.

5.
Recommended Alternatives:

Reintroduce the original pacesetter

Discontinue walking shoes

Produce better casual running shoes.

Introduce a flashier/ stylish athletic shoe model.

Test all products properly before their launch- more quality

checks
6.
Implementation Plan:

Make the original pacesetter with slight technological

advancements in consultation with athletes such as Cal Lindsen

Highly advertise the re-launch of original pacesetter

Position itself as a company making only technologically

advanced running shoes

Introduce superior quality checks before introducing any new

product in the market.

Do extensive market research & spend in product design to

launch new trendy designs (but with similar high technology) to
consolidate position within the segment.

Hire more designers and pattern engineers

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