Introduction
Vans was founded in 1966 by Paul Van Doren and his brother James. Initially, the company aimed to make long-lasting, washable, and cost-effective shoes in south California (Moon & Kiron, 2002). The firm made sales directly to clients and operated retail stores. Vans product promotion was through giving out fliers and making customized products for surfers and school children. The Zephyr boys publicized the brand by wearing them during competitions. In 1982, Vans sought to expand the business by making shoes fit for various sports but failed due to the expensive manufacturing costs, stiff competition, and impenetrable consumers (Moon & Kiron, 2002). Subsequent economic recession, Gulf War, increased rubber prices, and new market trends decreased Vans production leading to the closure of one factory.
The Turnaround
In 1997, Gary Schoenfeld became the chief executive officer (CEO) and revolutionized its operations. His first strategy was venturing into offshore manufacturing in Asia. Asian countries provide a conducive environment to foreign investors, have a cheaper workforce, and offer opportunities for increased creativity (Moon & Kiron, 2002). Secondly, Gary canvassed information from his young employees with skateboarding expertise on how to meet the demands of youthful consumers. The target market’s needs kept changing fast, and including their representations in decision-making helped the firm stay afloat (Moon & Kiron, 2002). Thirdly, Gary had to select specific core sports for the company to focus on. Lastly, marketing strategies such as funding sporting and entertainment activities are essential for increased publicity and brand promotion.
Promotional Mix
The company employs various product promotion strategies for increased market share. Vans and other supporters sponsor the Triple Crown Series, a sporting event with different games that attract extensive media coverage, reducing advertising costs (Moon & Kiron, 2002). The Vans Warped Tour focuses on promoting local artists and amateur skateboarding athletes while publicizing the company’s brand across cities. Additionally, the skateparks venture provides children of the local community with a secure skating space and contributes to the firm’s profit (Moon & Kiron, 2002). Vans uses celebrity advertising by seeking professional teenage athletes with attributes desirable to the target market as their promotional faces.
Channel and Product Mix
Initially, Vans sold its product directly to consumers through its retail stores, but it has incorporated wholesale businesses in the distribution process. The firm now channels its products to autonomous skate, mall-based, sporting products, and departmental stores (Moon & Kiron, 2002). Gary used contributions from in-house dealers, athletes, and central retailers to modify Vans shoes to consumer liking (Moon & Kiron, 2002). The company produces different lines of shoes, such as Signature and Skate Casual collections, suitable for varying consumer segments.
Competition and Challenges
Vans faces stiff competition from big firms, medium enterprises, and smaller established brands. Some rival firms like Nike have access to a large pool of resources, produce trendier and cheaper shoes, and have a larger advertisement budget hence a threat to enhancing Vans consumers loyalty (Moon & Kiron, 2002). Currently, the company is struggling to keep up with women’s footwear needs as their tastes shift rapidly. The firm’s revenue from its Outdoor Line is low, and the segment needs more advertisement to penetrate the market (Moon & Kiron, 2002). Gary admits that they have no competent workforce to run their record label and gaming venture, but the publicity the firm gets counteracts any losses.
Conclusion
In conclusion, Vans is a resilient brand as it is still standing despite the turbulent times. The company has a unique product promotion scheme that increases community engagement and publicity for its shoes. Employing retail and wholesale distribution channels helps the organization reach a broader market, maximizing sales. Vans’ move towards gaming will help it stay afloat in the current business climate and extend its brand to newer markets.
Reference
Moon, Y., & Kiron, D. (2002). Vans: Skating on air. Harvard Business School, 9(502-077), 1–22.