Case Study Vans-Skating on Air

Introduction In the purpose of investigating and understanding thesegmentation as well as the roles of the groups involved in the market, the paper will address the case of Vans an organization that is well known in selling footwear andapparels. Due to the changes in the market and the different opportunities that is currently faced by the management, there is a need to identify the best solution to create the sound decision making. Question 1: The early customers of the organization are unique. Basically, the customers are finding new trends. The product customization of Vans made it possible for the business to emerge in the market. During those days, the manufacturing was done in-house and the selling directly to the customers. Form the innovativeness of the proprietors Paul and James Van Doren, who are actually brothers they created the kind of shoes that was washable and yet in a quality of the shoes made for the competitions. Also, during those times, the skateboarding is considered as therebels on the road. The need of the skateboarders is to find the shoes that are appropriate in their lifestyles, which is strong, with the ideal price, and yet fashionable. Vans became the sneaker of choice. According to the study, the vulcanized rubber waffle-like soles are the ideal for maintaining the solid grip on the skateboard, and thedouble-stitched canvas is also perfect for withstanding thewear and tear that is associated in the reckless sport like skateboarding. Because of the advantage of the organization in letting the customers choose their own canvass in terms offabric and color or style, the organization has no problems in terms if inventory. Also, Vans became a favorite or best choice of the hard-to-fit or picky customers, who require nostandard lengths or widths. And due to the continuous innovation of the organization, the shoes were prioritized by the small but loyal customers (Moon & Kiron, 2002). The features of the shoes captured the diversified market and the uniqueness of the customers needs and wants and can get along in the kind of lifestyle of the wearers. Question 2: Due to the influences coming from other sports and maybe the rising of other competitors, the small manufacturing firm realized the declination in the market. The people who loved their shoes are slowly disappearing. The change of the youth in the sport that they first love is one of the major factors. Since the youth of 1960s became

the young adult in 1970s, the market is said to be literally changing. In addition, the engagement of the youth in other sports such as BMX riding created another thrill for the youth. According to the observation, in the end of 1980s the skateboarding, as a sport or hobby, had just died because of the closure of some skating rinks or parks due to the accidents. As a domino effect, the firm was greatly affected by this turnover and because of the low capacity in shifting in other product mix, the proprietors unable to close the gap in the top ranking rivals in that time. However, the firm experienced a topsy-turvy position. Although, the shoes became a demand in the market, the firm attempted to increase the market share and challenged the large firms like Reebok and Nike. They rapidly expansion in the market but at the end of all the effort, the firm realized losses and end up in bankruptcy. This is because of the high production costs that are currently plaguing the California. Naturally, if Vans stick in its original prices they might realize another face of losses. There is also an influence of financial crisis that reached to the point to transfer the firm in another company (Moon & Kiron, 2002). The value of the company slowly diminished and finding the right ways to bring the firm back to life. Question 3: In the time where Schoenfeld led the company, the Vans are still finding its specific place in the market. The expansion of the organization is into the number of directions. The increase the number of sports affiliation is a great type of promotion (Kumar, 2005). The concentration of the firm in the athletics is another opportunity because of the involvement of the youths in different types of sports. However, because of this trend, the cost for the promotion may tend to increase. In relation to this, the firm is bound to create diversified products that will suits in the different market that they are serving. The market of the athletics is large and thus the firm needs to change their original strategy to perform well in the competition. Apparently, it is addressed that the organization has many collections that are made specialized for every categories in the market. Therefore, the organization might not achieve the entire advantage in the manufacturing process which is minimizing the cost of production while maintaining the market performance. The expansion in the market distribution is ideal to introduce the product in the larger market and also, to reach the market. The advantage that the Vans may realize is doing business in unsaturated markets (Lowson, 2002). However, the disadvantage is the growing competition in the industry and the ability of each manufacturer to provide the advanced technologies to achieve more return of profits. The promotional mix of Vans is really broad and apparently there is an average of 600+ athletes that are promoting their products (as stated in the report year 2002). This type of promotion is a waste of money. Using so much number of endorsers might not justify the expenses

incurred in the organization and supporting their needs is another factor that the firm should accommodate and can be another source of expenses. Question 4: If I am Schoenfeld, the next stage for the growth of the firm is to focus in the existing market. There is a great advantage if the firm will focus in creating shoes for womenand finding better ways to serve the market. Manufacturing shoes is their advantages and there are few competitors that are well known in creating shoes for women, most especially if that is for sports. The firm already started the mass advertising on shoes and therefore, they must stick in the first option because it is their specialty. Hitting two birds in one stone is not advisable because of the competition. What the firm need is fully concentration and establishing the customer relations (Sautter, Maltz, & Boberg, 1999). References: Kumar, N., (2005) Cover Story: The Global Retail Challenge, Business Strategy Review, Spring 2005. Lowson, R.H., (2002) Strategic Operations Management: The New Competitive Advantage, Routledge: London. Moon, Y., & Kiron, D., (2002) Vans: Skating on Air, Harvard Business School Sautter, E., Maltz, A., & Boberg, K., (1999) A Customer Service Course: Bringing Marketing and Logistics Together, Journal of Marketing Education, 21(2).