ASICS Chasing a 2020 Vision Case Solution

1. The company is considering changes to the marketing mix of the core ASICS brand. What would you recommend going forward on issues such as: 

i. Product line (e.g. introducing mid-tier ASICS running shoes at a much lower price point)

ASICS has long promoted itself as a company that caters only to runners. ASICS might win over the demographic it expects to become its primary customer base by developing a line of products priced in the middle of the market and emphasizing quality over quantity.

Considering that ASICS's reputation has been built in large part on the quality of the shoes it produces, it is imperative that the company keep its gel patent in the line in some capacity. For ASICS to reduce expenses, the company's engineers, shoe designers, and manufacturers will need to get together and come up with a sneaker that is both highly functional and inexpensive.

ii. Channels to the market (e.g. increasing company owned retail stores)

The new market segment requires a shift in focus to the middle-class customer when considering distribution options. First, a market analysis of middle-income consumers is required because of the importance of understanding their purchasing habits. ASICS must open company-owned retail storefronts in areas with the highest concentrations of middle-income consumers.

AI should be implemented at ASICS retail locations to track customer foot traffic, identify popular product categories based on customer interest, and then promote those areas with the greatest sales success.

Furthermore, online marketing and sales only account for 17% of ASICS' total revenue. ASICS needs to expand its online presence beyond RunKeeper if it wants to get a larger share of the millennial and Gen Z consumer markets.

iii. Communications (e.g. changing the current ad campaign of "Want it more" and discontinuing sponsorship of NYC marathon)

In more ways than one, ASICS's current "Want it More" advertising campaign is damaging to the company's reputation and bottom line. "Of course, we want to be a trusted performance brand, but also, we need to be a fun and exciting brand," Katsumi Kato remarked. But "Want it More" seems to veer away from that philosophy and instead targets "serious runners" and elite athletes. It also offers the "tough fitness" approach used by rival brands like Adidas in their advertising.

More importantly, since they ended a 25-year partnership with the New York City Marathon in order to reach a wider range of consumers and connect with them on an emotional level, the company's tagline needs to reflect both the company's core values and its understanding of the changing behaviors of its target audience. Their advertising should focus on four main themes: efficiency, enjoyment, health, and aesthetics.