April 2008 - SportsOneSource.com

Performance
Sports
ts
RETAILER
News and Information for the Running and Triathlon Market
A SportsOneSource Trade Publication
ASICS America
Announces New CEO
ASICS America Corporation has
welcomed new CEO and chairman
Nobuo Oda. Previously with ASICS
Corporation in Kobe, Japan as a board
member and general manager of the
Sports Apparel Division, Oda took over
his new duties April 1, 2008 at the U.S.
headquarters in Irvine, Calif.
Oda brings over 40 years of experience
within ASICS Corporation to the United
States. He began his career in 1967
when he joined Onitsuka Co., Ltd.in
Kobe, Japan.
Oda will replace current CEO and
chairman, Seiho Gohashi who will
move back to his native country and
take on a new executive position as
senior general manager of Asia Pacific
Region, which encompasses numerous
countries including Korea, China,
Australia and New Zealand.
Gohashi leaves the U.S. with an
impressive track record. ASICS America
sales were $223 million in 2004 and rose
to $302 million in 2005, followed by
$380 million in 2006 and an estimated
more than $400 million in 2007.
Inside PSR
■ Run Gear Run: Serving
San Antonio’s running community
■ Speed Thrills: Racing shoes are
not just for elite runners anymore
■ Stand out from the crowd:
Build a brand for your store
■ Doctor on the run:
Our own Dr. Paul Langer
April 2008
Saucony Dedicates Design Center to Shay
Saucony has created a formal tribute to Ryan Shay, a Saucony sponsored athlete who died
suddenly during the Men’s Olympic Marathon Trials in New York City last November. On
April 17th, Saucony will host a ceremony to dedicate a portion of its product creation and
design center to Ryan’s memory.
Saucony president Richie Woodward explains the thinking behind the tribute. “We asked
how can we do something that is meaningful and represents Ryan’s memory and the partnership
with Saucony? We talked for a long time about what was best. We thought our efforts have to
be real, honest and truly represent the spirit
in which both Ryan and Saucony worked
together and the way Ryan lived his life.”
Adding Shay’s name to the design
center and a signature running shoe
reflects the connection shared between
Shay and Saucony’s product team.
Saucony will unveil the new Shay XC, a
cross-country running shoe designed to commemorate Ryan’s legacy and love for the sport
of running. The Shay XC will be available at running specialty retail stores in June 2008.
Woodward says, “The shoe and design center tie together. The genesis of that shoe was
strictly about him coming in and sitting down with us and talking about design, performance
characteristics and how we could help him run faster. He was an intelligent, thoughtful runner
who was able to give feedback that was viable and useful. That’s how he inspired us.”
Saucony will also contribute to a memorial fund. Established by Alicia Craig Shay, Ryan’s
wife,the Ryan Shay Memorial Fund is designed to honor Ryan’s passion to help disadvantaged
individuals, groups and communities, as well as to fund American distance runners in need.
Saucony has worked closely with Alicia to create the tributes. Woodward says, “We want to
honor his memory with dignity and integrity.”
A plaque that will hang outside the Ryan Shay Product Creation Center reads, “Ryan Shay
was an inspired and dedicated runner. He lived at the highest level as an athlete and as a person,
inspiring the Saucony team and the entire running community. In his honor, we dedicate
Saucony’s Product Creation Center to Ryan.”
EDITORIAL
Managing Editor
Lou Dzierzak (612-618-2780)
lou@sportsonesource.com
Art Director
Sean Berthelot (203-404-0632)
sberthelot@sportsonesource.com
Contributing Editors
Performance
Sports
ts
RETAILER
News and Information for the Running and Triathlon Market
CONTENTS
April 2008
Charlie Lunan, Matt Powell,
Dr. Paul Langer, Thomas J. Ryan
Group Editorial Director
Judy Leand (212-398-5022)
jleand@sportsonesource.com
ADVERTISING
Account Managers
Robert Z. Feiner (212-398-5020)
rfeiner@sportsonesource.com
Sam Selvaggio (212-398-5021)
sselvaggio@sportsonesource.com
Susan Tauster (630-858-1558)
stauster@sportsonesource.com
BUSINESS
Production
Andy Kerrigan (704-987-3450 x103)
production@sportsonesource.com
News_______________________________________
Ad Coordination
Casey Schoonover (704-987-3450 x108)
cschoonover@sportsonesource.com
4
Circulation & Subscriptions
Amanda McCluney (704-987-3450 x107)
subs@sportsonesource.com
Account Manager
Amy Ward (704-987-3450 x106)
accounting@sportsonesource.com
President & CEO James Hartford
Chief Information Officer Mark Fine
VP Research & Development Gerry Axelrod
Director Information Management Ruben Desangles
Director of Marketing John O’Sullivan
Manager Database Operations Cathy Badalamenti
VP Business Development Bill Bratton
Eastern Business Manager Barry Gauthier
Western Business Manager Cyrus Severance
Retail Relationship Manager Jill Underwood
■ Fleet Feet expands team
■ Aetrex names eastern regional sales manager
■ Avia announces 2008 sponsorship deals
Features___________________________________
6
8
12
Run Gear Run: Serving San Antonio’s booming
running community
Grassroots Marketing: Building brand loyalty
one on one
Speed Thrills: Racing shoes remain a vital segment
for footwear brands
Inov-8
The x-talon 212 is Innov-8’s
newest shoe offering an
aggressive tread pattern
that will accommodate a
wide range of conditions and
terrains. The x-talon will be
available in September 2008.
Other SportsOneSource Titles:
Footwear Business
Hunting Business
Outdoor Business
Sporting Goods Business
Sporting Goods Dealer
The B.O.S.S. Report
Sports Executive Weekly
Footwear Business UPDATE
Outdoor Business UPDATE
Team Sports UPDATE
SGB UPDATE
© SportsOneSource, LLC
2151 Hawkins Street | Suite 200 | Charlotte, NC 28203
704-987-3450 | fax: 704-987-3455
Departments______________________________
14
15
Operations: Stand out from the crowd
Executive Track: Doctor on the run
Specialty NEWSwatch
New Balance to Sponsor
CIGNA Falmouth Road Race
New Balance has signed a one-year footwear and apparel sponsorship deal
with the CIGNA Falmouth Road Race to be held on Sunday, August 10.
The sponsorship is part of New Balance’s new brand campaign, “LOVE/
hate. This is the New Balance,” that
highlights the runner’s complex love/hate
relationship with running.
As the official footwear and apparel
sponsor of the CIGNA Falmouth Road Race,
New Balance will showcase its performance
collection at the Health and Fitness Expo and
at the race’s finish line area. New Balance will also be the exclusive performance
apparel supplier for a new line of Falmouth Road Race official gear, will outfit
race and volunteer staff in New Balance products, and will coordinate regional
retail promotions and advertising activities around the race.
Fleet Feet Expands Management Team
Fleet Feet, Inc. has announced a corporate restructure and
welcomed three new team members. The restructure plan,
which facilitates the best use of resources to support franchises
and manage current and future
growth, involves refining the
responsibilities of three key
employees. Bryan Mills has been
promoted to director of new
franchise development, with responsibility for managing new
franchise candidates through the store opening process and their
first two years in operation. Mills and his development team
will also be responsible for franchise ownership transitions.
Luke Rowe, VP of business development, will oversee the
franchisee recruiting and selection process and continue to
drive the company’s FIT initiatives.
The third new team member, Joey Pointer, director of franchise
operations, will focus on supporting the continued growth and profitability
of fast-growing and maturing stores. Brian Breedlove has joined the team
Aetrex Names Eastern
Regional Sales Manager
Aetrex Worldwide has hired Bruce Finestone as eastern regional sales
manager. Finestone, who has more than 30 years of footwear sales
experiene, will be responsible for building the brand and developing
strategic, regional sales plans for Aetrex’s line of men’s and women’s
dress, casual and high-performance footwear. Aetrex is recognized as
a leader in comfort footwear as well as pedorthic footcare products
and technologies.
Finestone previously played key roles in the launch of new products
and brand-building for major labels including Reebok, Ellesse,
Rollerblade, RLX Polo Sport, Ralph Lauren Footwear and Ecco
Receptor, among others.
4
to oversee the company’s financial management, personnel and legal
matters. He will also assist with supporting franchisees on financial and
inventory management and ongoing store business reviews and analysis.
Fleet Feet has also expanded its brand management team with
the additions of Talia Herman and Mike Forsterling. Herman
joined Fleet Feet as the Brooks brand manager, and Forsterling
came on board to drive growth of the Saucony brand.
Avia Announces 2008
Sponsorship Deals
Avia will sponsor the LUNA Pro and Clif Bar Marathon
Pace Teams, along with newly signed professional triathletes
Scott Tinley and Conrad Stoltz.
As the official running shoe sponsor of the LUNA
Pro Team, Avia will outfit LUNA’s elite-level XTERRA
athletes. The LUNA Pro Team consists of
six pro mountain bikers, two XTERRA
athletes, and three elite triathletes including Terra Castro,
Linda Gallo and Cathy Chesky.
Two-time Ironman world
champion Scott Tinley is
also training and racing in
Avia shoes in ’08. Another
accomplished triathlete to join
the team is former Olympian and
current XTERRA world champion Conrad Stoltz.
In 2008, Avia will also be represented by the Clif Bar
Marathon Pace Team at 15 races nationwide including the
Flying Pig Marathon in Cincinnati, OH.
Performance Sports RETAILER
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contact one of our agents of style for promotional details | insport.com
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Run Gear Run
Serving San Antonio’s blooming running community.
By Lou Dzierzak
Specialty Marketwatch
I
6
t all started with a simple consumer question:
“What’s the difference between polyester and
cotton T-shirts? I can buy one for $12 and the
other costs me $36. Can you help me out?”
Amber Anthony and her business partner, Ashley
Rosilier, owners of Run Gear Run in San Antonio,
TX, came to running later in life. Anthony recalls,
“We came to the sports of running, swimming and
cycling not as high school cross-country and track
athletes, but as weekend warriors.”
When Anthony was searching for information
about technical running footwear and apparel,
there were only two running stores in a community
of 1.2 million people. So, despite not having any
previous running or retail experience, Anthony and
Rosilier opened Run Gear Run in November 2003.
Anthony has a bachelor’s degree in political science
and spent time working in Washington, DC, and
Austin, TX. Rosilier holds a master’s degree in
electrical engineering.
Anthony describes translating vision to reality.
“We really had to work at it. Just because I had the
money and a dream didn’t mean I was going to be
able to open a store.”
Running footwear and apparel vendors offered
strategic support and advice. “We had some great
luck,” admits Anthony. “Our vendors would not open
us close to the other stores. They pushed us outside of
town to an area that is now booming. The development
over the last five years is astounding. We got our vendors, got the
doors opened and became a resource for the community.”
Like all running specialty retailers, Anthony strives to create
a personality for the store that separates it from competitors.
She explains, “From the beginning we’ve tried to have a nonintimidating environment. We are trying
to instill in our customers that everybody
is an athlete. Some won’t consider that if
they run just 12 miles a week or run in their
neighborhood and don’t compete in 5ks. I
try to empower that customer to feel good
about themselves.”
Run Gear Run caters to a relatively equal mix of men and
women. Anthony notes that at times, businesses owned by women
get labeled as only addressing the needs of one gender. But, says
Anthony, “That’s not the case. We’re split 60/40 with more men
than women customers. We offer women’s-only programs to get
them started, but it’s not our focus.”
Run Gear Run hired a former customer to serve as an outreach
director and nurture relationships with local orthopedists, podiatrists,
fitness clubs, and high school track and cross-country teams.
Kids, both high school age and younger, are a key target
audience for Run Gear Run. “We do a lot with the local high
schools. Parents bring in their sons or daughters for track or
cross-country shoes and have a wonderful experience and try
something themselves,” says Anthony.
Before opening the doors, the partners
conducted an online consumer survey to learn
more about the local running community’s
brand preferences. The store carries shoes
from New Balance, ASICS, Brooks, Mizuno
and Saucony. Apparel and accessories are
also key in generating sales and repeat visits.
“Apparel and accessories are huge in the overall feel of the
store,” reports Anthony. “Customers want to experience life as an
athlete. We sell 26.1 stickers, hydration belts, nutrition, handbooks,
electronics, [safety] lights, sunglasses, handheld protective sprays,
and more socks that you can imagine.”
Customers also receive note cards along with their shoe
purchases that document the shoe type and information about how
to gauge when the shoes should be replaced. Cards with shoe care
and technical apparel tips are also offered.
Performance Sports RETAILER
The store supports runners of all skills levels through a
selection of national training programs. Run Gear Run is
affiliated with USA Fit—a 26-week marathon training program
for all levels—as well as Heart Zones Team Danskin Training,
a six-week, women’s-specific triathlon training program. All of
this has a srong impact on attracting new runners to the sport.
“We have people join the Race for the Cure first-time 5k
program and that changes their lives,” says Anthony. “The
next thing we know, they are signing up for the Women’s
Danskin triathlon program and a half-marathon training
program. Their lives are changed and they continue to return to
the store and even bring their friends. Our marathon program
has participants in their 50s
and 60s. They want to make a
change. That’s exciting.”
The consideration for all skill
levels is even evident at weekly
informal speed workouts hosted
by the store at a nearby high
school. “My seven-minute milers
can get in what they need, but the
11-minute milers count, as well.
They all need the speed workout
to get better,” Anthony notes.
Run Gear Run carries triathlonrelated apparel and accessories,
too. In fact, Rosiller is chairwoman
of the USA Triathlon women’s
committee, and Anthony competed
in her first triathlon at age 33.
After receiving strong community
support for hosting a kids’-level
triathlon, Anthony is planning a
triathlon and multi-sport series
next year for 7- to 15-year-olds.
“If you start with a healthy lifestyle young, you will carry it on
when you get older,” says Anthony. “It becomes a family affair. It
makes me so proud because I can’t think of anything better than
everybody being able to do something together, enjoy it and get
healthier at the same time.”
However, the sense of accomplishment that comes from
introducing a new runner to the sport is tempered by the day-today challenges of running a business. “Our biggest operational
challenges are human resources and managing growth,” says
Anthony. “It’s a constant challenge to manage the team on the floor
and keep everyone focused, motivated and happy. It’s really the
biggest thing my business partner and I walked into.”
Anthony’s parents both owned businesses and she incorporates
the lessons she learned from them every day. She recalls, “They
never asked anything of their employees that they hadn’t already
done themselves. I try to live by that. I’m not going to ask the staff
to clean the bathroom if they haven’t seen me do it.”
Performance Sports RETAILER
The partners succeed through a process of divide and conquer:
Rosiller leads the training programs while Anthony manages
buying, store operations and human resources. They also rely
heavily on vendor sales training programs to keep the sales staff
informed about each brand’s offerings and proprietary technologies.
“The more experiences the employees have with the product, the
better they will be able to present that knowledge to the consumer,”
says Anthony. “That’s a huge win-win.”
Anthony admits to missing sales opportunities by limiting the
store’s online presence. “At one time, we had more opportunity to
buy online. From time to time, employees have taken on the role
but then they left,” she says. “There are just two of us. It’s really
a business in itself. We are missing some of those consumers, but
taking something on and not doing it well isn’t worth it.”
Five years after starting their business, Anthony and Rosilier
are seeing their dream come to fruition. Once frustrated by a lack
of information and entry points to running and triathlon sports, Run
Gear Run has firmly established itself as a community resource.
Naturally, the process has involved a bit of attitude adjustment.
“Some groups, like San Antonio Road Runners, really embraced
us,” remarks Anthony. “For others, it took some time. Five years later,
we are all working together cohesively. We’ve come to work for the
community of San Antonio.”
Now an active runner, triathlete and member of a women’s
water polo team, Anthony has embraced sports in all aspects of her
life. And she’s well aware of the contributions others have made
that allow her to follow that path. “Our success is tremendous but
not without a lot of support from family and friends,” she says. “To
be able to live the life and provide that to others is tremendous.”
7
Grassroots Marketing
Specialty FEATURE
Capturing market share one runner at a time.
8
By Lou Dzierzak
D
uring the 2008 NCAA Basketball Tournament, New
Balance launched a new advertising campaign. The
multi-media initiative includes television, print, and
online efforts to reach performance athletes with a primary
media target of 18- to 29-year-olds. The full campaign tag line
states, “LOVE/hate. This is the New Balance.” Specifically,
the print campaign appears in vertical running and national
sports publications including Runner’s World, Running Times,
ESPN the Magazine and Running Network.
But as memorable as a well-conceived print ad or TV spot
can be, the real power in running footwear brand-building comes
from grassroots marketing.
Daniel Green, who is involved with integrated marketing at New
Balance, says, “Our entire company platform is based on grassroots
marketing. We try to do as much as humanly possible there, and then
build that base. The image thing, for better or worse, comes after.”
Richie Woodward, president of Saucony, voices an even
stronger opinion. “For a brand like Saucony, we are not able to
compete at the advertising spending levels of the behemoths like
Nike and New Balance. For us, being kind of an underground
challenger brand, we have to work harder,” he says. “We will do
our share of advertising but at the end of the day, we are going to
win by personal, one-on-one relationships with our brand, with our
trade customers, and with our consumers. The best way we can
do that is by grassroots marketing. If we can’t outspend, we need
to out-hustle, out-think, outsmart and just out-work everyone else.
That’s the way grassroots is talked about here.”
At it’s essence, grassroots marketing involves meeting existing
or potential customers face-to-face in an environment conducive
to a meaningful conversation about running shoes, technical
apparel and lifestyle.
New Balance, in partnership with running specialty retailers,
participates in more than 500 grassroots events annually, including
fun runs, race expos, instore presentations and medical consulting
clinics. All of these events have a common mission: to build a
strong relationship between brand, retailer and running consumer.
According to Green, New Balance actively seeks out ways
to support its retail partners’ local marketing efforts. “The stores
approach us with things they feel are important to them and their
business. We ask them how we can help. We try to help the retailers
reach out into their local community,” he explains.
Moreover, grassroots marketing is more than simply handing
out free T-shirts and product brochures. Brand-level initiatives
are strategically focused on reinforcing brand loyalty of current
customers and enticing runners who wear other brands to cross
over to a competing option.
In its search for new consumers, New Balance has partnered
with Fleet Feet to launch the “No Boundaries” campaign. New
Balance serves as the national sponsor of the program and provides
logistical support, product and advertising funds. Green notes that
No Boundaries targets women and people who have never run
before that are looking for a life-changing turn towards health and
fitness. “It’s not about improving your time, but about getting from
the start to the finish,” he says. “We’ve had positive feedback.”
No Boundaries is a national training program designed to guide
beginners in walking or running their first 5k (3.1 miles). The
Performance Sports RETAILER
“
“
I can’t tell you the number of requests we get in a
given day or week from new events that are popping
up. It’s great for the industry and the consumer.
— Daniel Green, New Balance
purpose of the program is to introduce participants to the lifetime
fitness activities of running and walking, provide comprehensive
information about healthier lifestyles, and motivate people to think
of themselves as athletes who have accomplished a major goal.
The program’s curriculum presents first-time runners with
a primer on footwear and technical apparel selection, nutrition,
and dealing with common injuries. Local coaches lead weekly
educational clinics and training runs.
Introduced as a pilot program in 2006, No Boundaries was
used successfully by five Fleet Feet stores in 2007 and rolled out
to the entire franchisee list in Spring 2008. Since the majority of
No Boundaries program participants have little previous running
experience, New Balance believes the program’s message will be
met with a positive reception.
“By bringing [new participants] into the sport and introducing
them to New Balance, and assuming they have a good experience,
we hope they will stay with us for a lifetime,” says Green.
Meanwhile, at Mizuno, the company’s 2008 “Run With Us”
program aims to convert existing runners to the Mizuno brand.
Launched at the ING Georgia Marathon in March, the “Run With
Us” grassroots campaign informs runners about the importance of
proper fit and provides an opportunity for runners to take Mizuno
running shoes for a test run.
The centerpiece of the program is a mobile tech lab that features
two of Mizuno’s Precision Fit terminals. According to Eric Hills,
marketing communications specialist at Mizuno USA, “Two of
our tech specialists will operate precision fit machines to conduct a
biomechanical analysis of a runner’s gait cycle and their foot.”
The Precision Fit procedure determines which type of running
shoe best addresses the runner’s foot type, running style and
preferred distances. Once matched with the appropriate Mizuno
shoe, runners are invited to take a test run with a program staff
member who will offer individualized advice. Participants also
receive a free T-shirt.
Mizuno’s technical vans use graphics and television monitors
to deliver information about the company’s proprietary footwear
and technical apparel technologies. Hill summarizes the program’s
objective as, “Get precision fit, go for a fun run and if appropriate,
buy a pair of Mizuno shoes.”
Saucony’s grassroots marketing approach also focuses on
converting consumers to the brand. Woodward explains, “That’s
where we are as a brand. We’re moving up. Last year, we had great
market share growth but at the same time, we are in a war. We need
to get converts. We have loyal Saucony consumers who wouldn’t
run in anything else if you paid them. But now, we have to create
conversion at retail. Part of that is done with the educational
approach at retail.”
Performance Sports RETAILER
Saucony’s grassroots initiatives range from participating in expo
events at major road races and marathons to collaborating with
running specialty retailers through events like Saucony Saturdays.
“We will partner with a local retailer to create a fun event for their
customers and talk Saucony for a day and hopefully connect with
consumers at a different level,” says Woodward.
Woodward also points out that creating and reinforcing longterm relationships is important in determining which locations
Saucony will support. “There are a million running events,” he
says. “We try to be judicious in how we spend our money. We’re
thoughtful about the relationships we create with local events.”
With participation continuing to grow, runners are now able
to choose from an incredible array of weekly race events and
distances. But managing the logistics of moving people and
materials from place to place can be a daunting challenge for
brand managers. “I can’t tell you the number of requests we get
in a given day or week from new events that are popping up,”
relates Green. “It’s great for the industry and the consumer. They
have a near unlimited amount of choices.”
As race directors introduce new events, brands are working
to create sponsorship partnerships. In early April, New Balance
announced its sponsorship of the ZOOMA Race Series, a new
series of national women’s running events.
The ZOOMA Women’s Race Series is designed to inspire
women to lead healthy lives by presenting more perks and bigger
parties. Participants will benefit from localized online group
training, one-on-one interactive coaching, and a lifestyle-oriented
After-Party Expo offering spa treatments, wine tastings, free food
and live music.
As presenting sponsor, New Balance will provide all 2008
ZOOMA race participants with performance apparel and will host
post-race activities. The company’s new advertising campaign—
9
Specialty FEATURE
10
“LOVE/hate. This is the New Balance.”—will be a centerpiece of
all communications elements.
Since participants at most major running events are exposed to a
number of competing brands, standing out can be difficult. “There
are definitely a lot of competing messages for the consumers,”
observes Green. “It’s certainly a struggle to differentiate yourself
from what everyone else is doing on a given day, especially at a
major event like the Boston Marathon.”
Although most grassroots campaigns are planned in advance,
adapting to changing conditions is always part of the approach.
“Our campaigns are flexible enough to accommodate changes and
adapt between events,” notes Green. “That’s something we talk
about. Every time you go to an expo and see what other people are
doing, you think to yourself, ‘How can we differentiate ourselves
from that technique?’”
At the foundation of most grassroots marketing initiatives are
the brand ambassadors who travel from one event to the next across
their territories. In many cases, they are working long before most
runners show up at the starting line, and they finish hours after the
last competitor has headed home.
Woodward acknowledges the vital role tech reps play in
building relationships with retail partners and consumers at race
events, clinics and expos. “Those tech reps are brand evangelists
for us,” he says. “They know our story, they can talk our brand and
teach consumers about the differences in our shoes and apparel, and
describe our innovations. They are our instruments in the field.”
Woodward also points out that keeping the brand ambassadors
motivated starts with hiring the right person. “The way we hire, it’s
all about their passion for our sport. These events aren’t that much
work for them—they love them anyway. That’s a big part of the
vibrancy they can bring when representing our brand,” he says.
Green reports that New Balance brings field reps into sales
meetings several times a year to keep them informed about new
products and program initiatives. “That really gets them excited
about the brand,” he says. “We think that goes a long way in terms of
keeping them excited when they go to events. They want to be part
of the company’s success.”
On the careet front, spending time in the field is often a
prerequisite for other corporate brand management opportunities.
“If they want to move up in the company, it’s a great track to
be on,” says Woodward. “They learn all about our product, the
marketing, and public and sales sides of things. They get a great
baptism into the running industry. We try to promote from that
group because they are so well-grounded, both in the sport and the
industry. They have a good, solid base underneath them.”
Like most advertising methodologies, measuring the impact of a
grassroots marketing campaign is an imprecise science. At Saucony,
for example, Woodward looks for shifts in brand recognition.
“When we advertise, we use tracking services to measure the
effectiveness of the advertising. We’re looking at brand recall and
things like that. The only other way we can measure the other
things we do is to compare baseline brand awareness over time,”
Woodward explains.
Green adds, “It’s very difficult to track results—we look at
programs we run in specific stores and look to see if that affects
year- over-year sales. Sometimes it’s hard to justify these programs.
Sometimes we have to go with our instincts that we know this is
the best direction.”
Performance Sports RETAILER
WHAT’S YOUR RETAIL IQ?
1. How did Running Footwear perform at
sports retailers in March compared
to the year-ago period?
a. Down low-single-digits
b. Up mid-single-digits
c. Flat
d. Down low-teens
2. Which Running Footwear subcategory
saw the strongest dollar sales growth
for the month at sports retailers?
a. Trail Running
b. Motion Control
c. Stability
d. Fashion Running
4. The top selling Trail Running shoe at
sports retailers in March was the:
a. New Balance MT497GO
b. ASICS Gel Kahana 2
c. The North Face Ultra 104 GTX XCR
d. Salomon XA Pro 3D Ultra
5. Who had the leading market share in Running
Footwear at sports retailers for March?
a. ASICS
b. New Balance
c. Brooks
d. Nike
6. At sports retailers in March, the average
selling price for Running Apparel:
a. Was flat
b. Increased strong double-digits
c. Decreased low-single-digits
d. Increased mid-single-digits
7. Men’s Running Apparel posted stronger
growth compared to the year-ago
month than women’s in March.
a. True
b. False
8. Who had the top selling Running Short in March?
a. adidas
b. Under Armour
c. Nike
d. New Balance
9. More Short-Sleeve Running Tops were
sold in March than Long-Sleeve.
a. True
b. False
10. Which company saw the largest increase in
market share in Running Jackets in March?
a. New Balance
b. Under Armour
c. Nike
d. Brooks
Know More. Now.
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Answers: b, c, a, d, a, d, b, c, b, a
3. Women’s Running Footwear sales grew at a faster
rate than men’s at sports retailers in March?
a. True
b. False
Speed Thrills
Racing flats remain a vital segment for footwear brands.
By Lou Dzierzak
Specialty FEATURE
O
12
nce only seen on the feet of the most elite-level
athletes, racing shoes are becoming more visible
deeper in the fi elds of many races. Claire Wood,
footwear product line manager at Brooks says, “Ten years
ago, only the front line would be wearing the racing fl ats.
Now you see them in the middle of the pack. Over the
years, the less-elite runner has become more comfortable
with racing fl ats.”
Across brands, sales of racing flats are stable and steady.
“Racing flats aren’t a huge growth category, but I think there
has been a slight increase due to more and more runners who are
becoming seasoned enough to realize that, ‘For this 5k or 10k I
want a lighter, faster shoe,’” says Wood. “You see more of the
average runner wearing them.”
According to Terry Schalow, product manager of performance
running at ASICS America, high-end-racing shoes contribute to a
brand’s overall performance image.
“We have three high-end racing flats targeted to different
kinds of people and events,” says Schalow. “Certainly, if you
have a high-end technical series of racing flats,
you are going to create an image for
your brand that I believe is really
important for those athletes that
are beneath the elite level, whether
they are wearing racing flats or
not. It’s going to create an image
for your brand that translates into
sales of other products. There is
definitely a halo effect.”
Wood agrees. “With performance running brands,
the goal of Brooks and every one of our competitors is to have
a shoe for every runner across a broad spectrum. Women,
elite, competitive runners, and not-so-elite runners are buying
racing flats. Anyone who cares about running will look at what
the elites are wearing. There will always be a role for [flats].
It’s an absolute necessity in the product line,” she says.
ASICS recently introduced a high-end, super-elite model
called the Piranha SP that weighs a mere 4.7 ounces. “For
those in the know,” says Schalow, “our Japanese parent
company is famous for their super-lightweight, high-end
racing flats that they provide to athletes around the world.
They are very expensive to bring into the United States,
but we managed to do that. With that particular model, we
put our own upper on it that was more appropriate for the
American market.”
Schalow adds, “Every brand, particularly New Balance and
Adidas, have very lightweight racing flats that come in under 5
ounces. What makes ours different is that it actually has some
midsole to it. Typically, a flat of this weight is paper-thin so your
legs get pounded. That’s the trade-off for a lightweight flat.”
With two models on the market, Wood reports that Brooks
has the highest market share of running flats in the specialty
running channel.
Woods says, “We’re always trying to keep the versatility element
with the racing flats for runners who train with minimalist shoes;
they are not necessarily just for racing. We’re very proud of our
racing flats. There aren’t a lot of bells and whistles and gimmicks.
We believe it has to be a true performance product.” She adds, “It’s
not a huge part of our line in terms of market share, but we are very
pleased in how we have delivered the product to market.”
As more women compete in distances from 5k to the
marathon, more sales opportunities may follow. Schalow points
out that in general, most racing flats are gender-neutral.
“There are not many choices for women’s-only
racing flats. The reason for that is most racing
flats work pretty well as a unisex shoe because
by their nature, they are quite narrow and fit
a woman’s foot well. That’s not me trying to
make an excuse for not have women’s racing
flats. I wish there was a bigger retail [demand]
for women’s racing flats. We would certainly
produce them if that was the case,” he says.
Outside of traditional road racing applications,
racing shoe models that address competitive trail
running are making inroads.
Lisa Mikkelsen, spokesperson for Inov-8,
recalls, “In June of 2003, our founder, Wayne Edy,
watched a mountain running race and noticed
that the competitors were wearing mostly road
racing flats. These are lightweight shoes, but
they also didn’t provide the grip that the runners
needed off-road. Since then, we’ve seen that for offroad racing, lighter-weight shoes that offer lower profiles have
been the trend. Inov-8 likes to believe we are helping to lead
the way with this trend as our footwear designs are based on the
philosophy of light weight, low profile and flexible shoes that
allow your feet, and therefore your body, to work as they would
naturally, if the feet were bare.”
Xterra footwear designers Ashley Brown and TJ Gray had a
similar experience. At the Xterra World Championship in Maui
last October, they noticed that many competitors were wearing
road shoes. In the final leg of the race—a seven-mile trail run over
roots, rocks and ravines—only one in 100 shoes worn was a trail
runner. The athletes were sacrificing stability for lighter weight.
Xterra introduced trail racing shoes at the August 2007 Outdoor
Retailer Summer Market show.
Overall, racing remains an important component of a footwear
brand’s product mix. Schalow says, “Demand continues to be
steady and slightly growing. Sales of running shoes represent
a much smaller percentage of the business than it used to, but
keep in mind that’s relative to the number of people who are
participating in a sport that has grown astronomically.”
Performance Sports RETAILER
Mizuno
Offered in a new blue/silver
colorway, the Wave Revolver 5 adds
a level of support to racing flats.
SRP $74.
Brooks
A blend of lightweight speed and
engineered control, the Racer ST 3 is
designed for elite-level racers who need a
touch of support. The shoe is also optimal
for tempo training and race distances from
5K to marathon. SRP $85.
Inov-8 (opposite page)
The f-lite 230 is an updated
version of the f-lite 250. The
new shoe will offer a slightly
more generous fit, while still
being built on a performance
last that is meant to fit
precisely, like a road racing
flat. The f-lite 230 offers fascia
band support and will be
available in early May 2008.
Brooks
The new T5 Racer, recommended for
distances of up to a half-marathon,
features Brooks’ Engineered Hyper-Pod
configuration. The midsole and outsole
components are engineered to set the foot
up in an efficient, balanced position from
heel strike to toe-off, offering maximum
stability and flexibility. SRP $80.
ASICS
At 4.8 ounces, the Piranha SP (SP for
speed) is the lightest racing flat that
ASICS has so far introduced to the U.S.
market. The shoe features an open mesh
upper, Solyte midsole, and Magic Sole.
SRP $110.
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Stand Out From the Crowd
Keys to building a brand that wins the hearts of your customers.
By Steve Rosengren
Specialty OPERATIONS
A
14
ccording to management consulting firm McKinsey &
Company, strong retail brands result in more frequent
consumer visits, higher per-customer spending, and the
ability to charge premium prices.
What makes a great brand? Great brands stand for something.
They focus on one differentiating value they can own, and then they
relentlessly deliver that value in every interaction with the customer.
Sounds easy, but it’s not. Most businesses look at their brands
from their own perspective, not the consumer’s. By saying, “Our
brand does this, this, and this,” these businesses add complexity, not
simplicity. In a world of unprecedented noise and clutter, brands that
“stick” in people’s minds have a very clear, specific focus.
Take, for instance, the St. Paul Saints, a Minor League Baseball
team. Just like all baseball teams, they put nine players on the field,
sell peanuts, win some and lose some. But the Saints aren’t selling
baseball. They’re selling fun. At a typical St. Paul Saints game, a nun
gives massages to fans in the bleachers. A pig delivers the game balls
to the umpires. They’ve hosted Pillow- Fight Night, Call in Sick Day,
given away Michael Vick dog chew toys, and invited fans to bring
their sleeping bags onto the field for movie night. The Saints have a
clear brand strategy to build fun into every game, every night.
DEFINE YOUR BRAND’S FOCUS
The single defining idea for your brand is found at the
intersection of four critical elements: Customer, Competition, your
Business, and Solution Offering.
• Customer: First, take a look at the customer. Who is he or
she? What makes him tick? What is his pain? What motivates him
to buy? Conduct instore surveys or focus groups. Ask your frontline
employees what they see. You need to probe deeply to get at the heart
of the customer. Is she looking for a trail running shoe or is she truly
looking for an escape from the confinement of her nine-to-five job?
• Competition: Who is competing for the wallet—and heart—
of your customer? This will include the obvious retailers offering
similar products. But often, the competitive set extends beyond
this, such as outfitters that rent gear and resorts or lodges that
offer an experience. Understand your customer and you can better
understand your competition. Assess your competitors’ strengths
and weaknesses. What are your competitive advantages?
• Business: What are the key drivers of your business? Are you
customer service driven? Technology-driven? Something else?
What is your mission? What are your company values? What are
the passions of your people? What are you best at? What are you
not good at? Truly great brands are truly authentic brands.
• Solution Offering: What exactly are you offering? Products?
An experience? Peace of mind? Ask the question, “What are
we giving to our customers?” Get input from everyone in the
company. Brainstorm and create a list of 20 things you’re offering
the consumer. Push yourself beyond the obvious. Remember, the
Saints are not selling baseball—they’re selling fun. Now, define the
intersection between these four elements. What is the single word
that your brand stands for? Is it quality? Experience? Community?
Expertise? Escape? Make sure it passes these tests: it must be
relevant to the consumer, differentiated from your competitors,
authentic to you, and financially rewarding.
Next, re-align key business practices around your brand.
Connect every customer experience with your brand.
• Marketing Materials: This is obvious, but often poorly
executed. If your brand represents “expertise,” your communications
should include endorsements from experts in the field, testimonials
and images of hardcore runners. All messaging must leave the
impression that your store is the authority on running gear.
Everything else—price, selection, fashion—is secondary. Develop
a strong tagline (e.g. Nike’s “Just do it”) and distinctive design
theme to run through all of your communications.
• Store Experience: The Apple store isn’t merely selling
products; it’s selling the “Apple experience.” Digital cameras,
photo printers, and Apple’s iPhoto software are grouped together,
just as people use these in their homes. The staff carries iPods or
iPhones, evidence that they, too, are living the Apple experience.
Build your store experience around the brand so every customer
entering your store knows exactly what your brand stands for.
• Personnel: Hire, train, and offer incentives to your employees
to be brand evangelists. Hire only people who are passionate
about your brand, no exceptions. Create a culture and incentive
program that inspires and rewards individuals who bring your
brand to life for the customer.
• Business Goals: This is often overlooked, but is essential. If
your brand represents “community,” develop goals centered on
creating shared experiences for your customers. Build an online
message board for customers to share trail info, and define a goal
for the number of registered site users. Set a goal of generating
“x” percent of new-customer sales through referrals, and create
incentives for current customers to refer their friends.
The secret to building a memorable brand is really quite simple:
Identify the one thing—one thing—that your brand stands for. Then,
align all of your customers’ brand experiences around that one thing.
It works for Nordstrom, BMW and Amazon. It will work for you.
Steve Rosengren is president of Red Canoe Consulting, a firm
that provides strategic planning and marketing strategy to
help businesses accelerate and sustain growth.
Performance Sports RETAILER
THE EXECUTIVE TRACK
Doctor on the Run
Professionally and personally, running leads the way.
By Lou Dzierzak
F
Performance Sports RETAILER
Langer served on the medical staff for both the
GOBI March and the Twin Cities Marathon.
After completing 21 marathons, Langer can empathize with
his patients. “One of the reasons that I love endurance sports is that
you can always find ways to challenge yourself, and it is possible to
improve with age. I ran my fourth-fastest marathon (3:16) after 14
years of running and after turning 40. I used to be annoyed by the
older guys I ran with who complained about how sore they got and
how it was harder to recover from tough workouts. Now I’m one of
those guys,” he exclaims.
Langer’s personal and professional experiences influence both
parts of his running life. “My professional experience has influenced
my training and shoe selection. Now, I work more on my core strength
and cross-training than when I used to only run and focus more on
stretching,” he says. “As for shoes, I used to run in the cushiest
shoes I could find, but the biomechanics research and my clinical
experience has convinced me that there is a cost to cushioning.”
After a day at the clinic, Langer puts on his ASICS DS Trainers
and heads for the hills. Even during tough Minnesota winters,
running outside is definitely his preference. “I have never been
a treadmill runner,” says Langer. “I think my longest treadmill
workout was 20 minutes and even then, I nearly lost my mind. My
favorite solo run is a trail run with my dog, Ripley, six to eight miles
with some nice hilly terrain thrown in. The muddier the better.”
Langer spends two evenings a week at Marathon Sports in
Minneapolis talking with customers about shoe and fit issues. In
local races, he often sees fellow runners who could benefit from
his experience and expertise. “I can’t help but to do gait analysis on
runners both while I’m training and when racing,” he notes. “I never
offer unsolicited advice, but I do see plenty of runners who could
benefit from shoe or insole changes. A lot of what I have learned
from my own running, sports medicine and training I apply to my
patients. They like the credibility that I bring to the conversation.”
Looking ahead, Langer sees exciting times. “It seems like we are
at the verge of something. There is a big lag between what the research
shows and what the shoe companies are delivering. The less-is-more
concept is something that will be explored a little more.”
Specialty NEWSwatch
or Dr. Paul Langer, a regular columnist for Performance
Sports Retailer, running plays a central role in every
aspect of his life. Professionally, as a member of
Minnesota Orthopaedic Specialists, P.A., in Minneapolis,
MN, Langer specializes in biomechanics, sports medicine and
foot disorders. Outside of clinic hours, his schedule is
jam-packed with speaking engagements, lectures and
volunteer contributions. Langer is a clinical advisor
for the American Running Association, an associate
of the American College of Foot and Ankle Surgeons,
and has served on the medical staff for the Twin
Cities Marathon and the 250-kilometer Gobi March in
China. On a personal level, Langer has completed 21
marathons and an Ironman Triathlon event.
Langer comments, “Running is what led me into a career
in medicine, so I’m lucky in that I can tap into my passion
in my job. Running gives me credibility within the sports
medicine community.”
As a profession, podiatrists are becoming more involved in
running than ever before. “In fact, the American Academy of
Podiatric Sports Medicine has approximately 700 members, many
of whom are very involved in treating runners, lecturing to running
clubs, and reviewing running shoes,” says Langer. “Despite great
advances in medical knowledge and technology, runners are still
as vulnerable to injury as they were back in the late 1960s when
running shoes were relatively primitive by today’s standards.”
According to Langer, major vendors are discovering that traditional
beliefs about footwear design may be changing.
“The so-called benefits of cushioning and motion control are
seriously being called into question with some of the newer research,”
notes Langer. “In the next few years, we may see a revolution in
running footwear—likely footwear that, instead of cushioning our
feet or trying to control our feet, may actually allow our feet to absorb
impact in a very efficient, natural manner.”
Langer also believes there are exciting times ahead. “I think we
are reaching a crossroads. There could be a revolution in footwear.
The shoe companies are working on proprietary technology that
they aren’t willing to share yet. But I think shoe companies have
realized that cushioning in and of itself is not something that is
as important as once believed. Even the ability to control the foot
inside the shoe with things like medial posts are concepts that are
not doing what we thought they might be able to do,” he explains.
Langer’s running lifestyle started in college as a way to lose a few
pounds, but he soon realized other benefits. “Aside from the obvious
physical benefits, the mental toughness that running fosters is my
personal favorite benefit,” he says. “Sometimes, I feel like I gain
more from a tough race where I had to gut it out than a race that went
my way and I ran a good time.”
15