CASE: GROWING THE AIRWALK MARKET

CASE ON AIR GROWING THE AIRWALK MARKET

SUBMITTED TO:

MST. MOMENA AKHTER

SENIOR LECTURER

DEPARTMENT OF BUSINESS ADMINISTRATION

ASA UNIVERSITY BANGLADESH

SUBMITTED BY:

FAHAD BIN AZIZ

ID: 18-1-14-0050

MASTERS OF BUSINESS ADMINISTRATION

ASA UNIVERSITY BANGLADESH

DATE OF SUBMISSION: 12TH APRIL, 2019

 Table of Contents
Sl. No. Name of theTitle Page
Title Fly
Title Page
Table of Contents
1 Introduction 1
2 Company Profile 1
3 Alternative Courses of Action 2
4 Conclusion 3
5 References 3
INTRODUCTION

Airwalk Inc. designs and markets, through its Carlsbad, California-based subsidiary Airwalk, a
popular line of casual, active casual, and specialty sports shoes targeted almost exclusively at
people under the age of 25. Airwalk's line of snowboarding boots is the top seller in its category;
the company also designs and markets a branded line of snowboards, bindings, and other
accessories for that rapidly growing segment. Together with Vans, Airwalk remains the
unofficial shoe of the skateboarding set, with a line of shoes specially designed to stand up to the
rigors of that activity. Airwalk has also entered the relatively new biking category, marketing
specialized shoes for the growing segment of professional and amateur mountain biking athletes.

COMPANY PROFILE

By the time Items International added Airwalk to its name, the company's founder, George
Yohn, already had some 30 years in the shoe industry. The athletic craze had been building
throughout the 1970s, originating in California and spreading nationwide in the next decade.
Before achieving its runaway success of the mid-1990s, however, Airwalk weathered the
collapse of its core skateboarding market. The sudden proliferation of skateboard parks across
the country soon sparked a backlash against the sport. Many of the skateboard parks were closed,
and Airwalk saw its sales slump to $8 million in 1991. Mann was replaced as president in 1992
by Lee Smith. Meanwhile, sales of snowboarding boots were helping to firm up sales.
Snowboarding was becoming increasingly popular--and accepted--by the skiing industry. By
1994, Airwalk had taken the lead in sales of snowboarding boots, just as snowboarding was
becoming the country's fastest growing sport. Sales for that year reached $60 million. The
company by then had managed to place its products into more than 1,200 outlets; that number
would more than double over the following year as Airwalk launched its line of casual and active
casual shoes, sparking the company's biggest growth. Under pressure from retailers the company
also began marketing accessories to complement sales of its shoes. Teenagers all over the world
responded, boosting company sales to $200 million by 1995.
ALTERNATIVE COURSES OF ACTION

Question1: To which VALS segment (segments) do you feel this Airwalk advertising
campaign will especially appeal?

Answer: VALS stands for Values and Life Style System which is based on social values and is
adapted as marketing tool. This is a sub segmentation of geo-demographic segmentation. VALS
is focused on eight distinctive segments. The Airwalk company is campaigned their
advertisement for those people who don’t ever stepped onto skateboard but they want
independence and spirit from life. This advertising campaign will especially appeal for the
experiences segment (one of the segments of VALS). They are active, impulsive and seeking
stimulation from the new, offbeat and risky. They spend a high proportion of their income on
fashion socializing and entertainment. So we can say that the Airwalk Company is mainly
focused on experiences segment in their advertisement campaign.
CONCLUSION

Airwalk stepped up its advertising budget, in part to counter attempts by Nike--then facing a
drop in demand for basketball shoes as the athletic market as a whole began to slip--and others
moved to enter the action sports arena. Spending $30 million in 1995, the company pledged
another $40 million for 1996, as sales were expected to double in that year. Yet the company's
real challenge lies in maintaining sales while preserving its image as the hip, alternative lifestyle
brand. As Smith told Media week, "It's like walking a razor. You can't be too mainstreamed and
you can't be too core. You have to keep yourself exciting."

REFERENCES

 https://www.referenceforbusiness.com/history2/69/Items-International-Airwalk-
Inc.html#ixzz5ksS4SIPJ
 https://runrepeat.com/airwalk-one
 https://www.complex.com/sneakers/2013/05/airwalk-brings-back-the-iconic-one
 https://simplefootwear.co.uk/history-of-skate-shoes/