Executive Summary - ASICS

EXECUTIVE SUMMARY 1000 WORDS N0829119 HEATHER SPENCELEY

CONTENTS 3 INTRODUCTION 4 THE OPPORTUNITY 5 THE STATS 6 A BIT OF BACKGROUND 8 THE PITCH 9 THE CONSUMER 10 THE STRATEGY 11 CONCLUSION 12 REFERENCES

introduction “Instead of a slowdown we have seen that sports and outdoor clothing has become an accepted part of everyday wear, with three quarters (76%) of people purchasing sportswear as everyday wear compared to 44% who bought for sports use only.”(Mintel, 2018).

This quote evidences the rapid increase in purchases of athleisure garments as every day wear. ASICS have identified that they need to target a younger generation if they are to gain competitive advantage and grow in the athleisure market. This document briefly summarises the main obstacles ASICS need to overcome, and what they must build on in order to achieve their objectives.

76% 3

THE OPPORTUNITY In 2018, ASICS sales in the performance category were four times higher than their SportStyle category (ASICS, 2019). This highlights their main issue; that they are perceived as predominantly a performance brand, with only a 1.6% share in the global athleisure market.

From 2018-2019 ASICS women’s category sales decreased by 16.9% (ASICS, 2019). ASICS’ negative performance in womenswear contributes to their low market share, they have an opportunity to increase their sales potential if they can gain interest from the female market.

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In the past, ASICS forfeited the interest of a younger, more fashion oriented consumer whilst they built up their reputation as a performance brand.

Now, competitors such as Nike and Adidas have advanced with Gen Z and Millennial consumers by forming communities and using relevant music artists to evolve long lasting connections with them. As Gen Z now make up 30% of the population (Hawkins, 2019), ASICS must work hard to gain the interest of this generation.

THE STATS 66%

of respondents said they regularly exercise because it boosts/improves their mental wellbeing

55% of 15-37 year olds beleive that audio offers a nice escape from visual stimulation (Friend & Houghton, 2019)

“1 in 3 women beleieve that their products dont get enough space in sport stores” BARAM, 2018

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a bit of background As a company, ASICS’ main strength is their ability to retain consumers; their website reviews show that buyers are happy with the product and would re-buy it or want to purchase it in more colours. Indicating brand loyalty. One of ASICS main weaknesses is that their products fall short on design, which puts them behind their competition. Another area ASICS struggle with is customer experience and engagement; 80% of Trustpilot reviews are ‘bad’ and consumers complain about not being responded too or acknowledged.

ASICS top three competitors with the largest market share are Nike (28.5%), Adidas (17.5%) and Puma (4.6%), they are also the top three brands in the consideration set (ASICS, 2019). Market research (appendix) shows that Under Armour is the third brand to be considered after Nike and Adidas when buying activewear/shoes.

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Nike is the market leader in athleisure; their core competency is their ability to create and inspire communities through emotive advertising and influencer campaigns. They have created successful products such as the Air Force which cannot be replaced by any other brand.. Under Armour’s core competency is their authenticity; despite criticism, they have stayed true to their performance roots and consumers continue to use their products as activewear. ASICS can take inspiration from their determination to stay competitive using their core value of performance.

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CORPORATE OBJECTIVE: Increase ASICS Global Athleisure (footwear) market share by 0.5% by January 2023 (to 2.1%) Decrease gender sales split in lifestyle category by growing (global) female sales from 31.1% to 35% by January 2023.

Alter ‘Savvy Skeptics’ perception of ASICS SPS from a performance to a lifestyle* brand by January 2023. *use products outside of specific sporting activities

the pitch

Infiltrating London As a result of this research; the following objectives have been set. In order to achieve the corporate objective, ASICS must achieve objectives 1 & 2.

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the CONSUMER

THE SAVVY SKEPTIC

AGE: 19-27 CHARACTERISTICS: confident, tech savvy, pragmatic, healthy lifestyle, fun SHOPS AT: Monki, Depop, Zara, Asos, New Balance, Pull & Bear, Depop, Charity shops LOVES: Cats, coffee, travelling HATES: Cold weather, slow walkers, single use plastics

liv blankson

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year one

year 2

In year one ASICS SportStyle will implement Omnichannel marketing; allowing them to hit their consumers at all touchpoints and create a seamless customer experience for the brand. Secondly, they will release a monthly podcast, ASICS Answers, which will address issues and subjects relevant to their target consumer. Subjects will be sent in by listeners via social media (Twitter/Instagram) using their hashtag #ASICSAnswers and will be discussed by industry experts and public figures popular with the audience.

Year two will see the development and release of ASICS ‘On the Go’; an app which will work alongside their Omnichannel marketing in year one to gather customer information and promote segmentation.

This will allow ASICS to target their consumers more specifically and tailor campaigns to them based on their behaviours and interests.

year 3

ASICS will concentrate on physically repositioning themselves; starting with their existing retailers. In year three, ASICS will negotiate a threemonth deal with JD and ASOS to trail their products on the retailer’s lifestyle sections of the websites. If after three months they have hit an agreed sales target; they will gain a permanent position on those pages.

ASICS will then establish a small store in Shoreditch with the aim of creating a buzz in that area, the store will exclusively stock SportStyle products. Being in Shoreditch, the store will have a simple, arty décor, taking inspiration from galleries and museums.

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to conclude... ...‘Infiltrating London’ will help ASICS build on their SportStyle core values to attract their target consumer by using new, relevant routes to market.

This strategy combines ASICS’ existing links and reputation in the fitness industry to gain coverage and persuade consumers to recognise ASICS as a lifestyle brand.

Lastly, this strategy is achievable and uses their knowledge and strengths to accomplish the corporate and marketing objectives whilst addressing their main business issues. At the end of the three years, ASICS will have established themselves in the athleisure market; allowing them to reap the benefits from the, soon to be, £6.7bn industry (Global, 2019).

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references Baram, C. (2018). Sports & Outdoor Fashion - UK - December 2018. [online] Mintel. Available at: https://reports.mintel.com/ display/935400/?highlight#hit1 [Accessed 22 Jan. 2020].

Corp.asics.com. (2018). ASICS Global - The Official Corporate Website for ASICS and Its Affiliatesa. [online] Available at: https://corp.asics. com/en/about_asics/history [Accessed 29 Oct. 2019].

Friend, H. and Houghton, L. (2019). GENERATION Z ARE DRIVING AN ARTS REVOLUTION. [online] LS:N Global. Available at: https://www. lsnglobal.com/big-ideas/article/24805/generation-z-are-driving-an-artsrevolution [Accessed 15 Nov. 2019].

Global (2019). The UK Sportswear Market, 2018-2023. [online] Global Data, p.Overview Snippet. Available at: https://store.globaldata.com/ report/vr0158sr--the-uk-sportswear-market-2018-2023/#tab-list-offigures [Accessed 2 Jan. 2020].

Stott, R., Bishop, K. and Hawkins, A. (2019). PEER PLATFORMS. [online] LS:N Global. Available at: https://www-lsnglobal-com.ntu.idm.oclc.org/ micro-trends/article/24402/peer-platforms-1 [Accessed 12 Jan. 2020].

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Vifer, L. (n.d.). Gel Lyte couple. [image] Available at: http:// fuckingyoung.es/30th-anniversary-gel-lyte-iii-asics-x-24kilates/ [Accessed 19 Jan. 2020].

Hanon (2019). Asics x Carnival. [image] Available at: https://www. hanon-shop.com/blogs/news/asics-gel-ds-trainer-x-carnival-muaythai [Accessed 24 Jan. 2020].

Flat Icon (n.d.). Strength icon. [image] Available at: https://www. flaticon.com/free-icon/weight-lifting_1818629?term=strength&page =1&position=16 [Accessed 20 Jan. 2020].

Flat Icon (n.d.). Podium icon. [image] Available at: https://www. flaticon.com/free-icon/podium_694638 [Accessed 20 Jan. 2020].

Flat Icon (n.d.). Target icon. [image] Available at: https://www. flaticon.com/free-icon/target_1508924 [Accessed 20 Jan. 2020].

Warnking, L. (n.d.). London Underground. [image] Available at: https://www.pexels.com/photo/train-station-979715/ [Accessed 24 Jan. 2020].

Blankson, L. (2020). Beige dress and trainers. [image] Available at: http://www.livinfashion.co.uk/ [Accessed 24 Jan. 2020].

LS:N Global (n.d.). Retail store. [image] Available at: https://wwwlsnglobal-com.ntu.idm.oclc.org/retail/article/22831/how-malls-cansurvive-into-the-future [Accessed 20 Jan. 2020].

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