Summary
The change or improvement that should be made to increase customer satisfaction in the New Balance business is to revamp the orthopedic footwear line and diversify the business towards specialty goods such as sneakers. There has been a decline in customer satisfaction and a drop in average ratings over time (Brons et al., 2021). Knowing this, I will be advising my team to consider changing their target market to target male run-downs to help them promote running shoes as a fashion accessory with an improved design and overall brand image. I will also recommend increasing their exposure in advertising and promotion through social media platforms, including Facebook, Twitter, Instagram, Pinterest, LinkedIn, and magazines such as Runners World and Sweat Magazine. Advertising is essential since social media is a significant marketing avenue to increase awareness and reach.
The analytics that my team and I will use to revamp the orthopedic footwear line and enhance product diversity is a business model framework. Business Model frameworks will help my team achieve the goals we want to accomplish by increasing customer satisfaction and product sales by allowing them to know the components of an efficient business model (Simonov et al., 2020). This will help them identify strategic opportunities they can take advantage of to increase their positioning and ultimately exceed their expectations. Additionally, to better adapt to my target market, I will focus on demographics such as male runners between the ages of 18–40 who enjoy running up to 10 miles daily. This demographic is essential since it has an increased buying power because these people buy more expensive items, such as high-end sneakers. This will enhance customer satisfaction because the company will have a larger volume of consumers looking to buy a high-end product with better quality and American design.
Product Line or Services
The services that should be added to the new product line in the New Balance business include a new brown sneaker, such as the Nike Air Max 90. This is important since it will help increase sales of the product, increase demand, and generate more revenue. It will also help reduce perceived customer dissatisfaction, driving down their average rating because of their unsatisfactory product line, which is running shoes (Simonov et al., 2020). The team should consider adding this sneaker to appeal to a wider range of consumers and markets. This would increase sales by diversifying towards an untapped New Balance market and raise their overall customer satisfaction since they have more products to choose from.
The other service that should be added to the product line is introducing a new store to their already very successful line of stores. This store should help generate more revenue through an increase in foot traffic and also increase brand awareness for consumers. I will advise the team that they should consider opening a new store. The team should think about opening a pop-up sneaker boutique that can be opened for special events such as sports competitions, marathons, and other running events (Simonov et al., 2020). The pop-up will help generate revenue through sales and also help generate brand awareness so that people can get to know New Balance sneakers better by experiencing them firsthand. It would also play a central role in reducing perceived customer dissatisfaction since they would have an outlet closer to their consumers’ location instead of only online.
Additionally, I would suggest the “Human Powered,” a product worn by disabled people. It has a special technology in the insoles that absorbs the impact from many of the different processes. This is an important invention because it is a great example of how technology can make the lives of people with disabilities easier. It can be done mainly by developing an innovative product that provides support on multiple levels (Simonov et al., 2020). The product is also a great example of how technologies can be modified to provide benefits and use the wheelchair as the prototype. From basic camera and computer technology to powerful compression systems, New Balance should develop this wheelchair and be efficient.
Product or Service Location
The product should be offered in an online-only environment because the target market is people looking for a very specific product, but only online. The online store is laid out by style, so it takes only a few clicks to get what they are looking for. This is a crucial service since they cannot physically go to stores to get the product. They can buy from the comfort of their own home or office and even on holidays. For instance, the online store is available on holidays and weekends and is open 24 hours a day (Pendleton et al., 2021). The website is attractive to customers because it does not have a professional feel; it is more casual. The colors are a bit dull for customers, but the overall look makes them feel like they can easily find any information they are looking for.
I would suggest pictures of models that wear their shoes so customers can be more confident with their purchases. For instance, customers can look at the visual demonstration of the product on any model at any time. Therefore, it will be easy for them to see exactly how it looks on their feet and what size they need. The buying process is straightforward; hence, they have to set up an account online, and then they can add an account number to confirm the amounts.
However, I would suggest the product must be offered in a physical location because the target market is people looking for a product. This store’s target market is people interested in buying handbags and other accessories that can be worn with sneakers. They can shop online, but if they want to see the items in person before completing their order, they can pick up their purchase (Pendleton et al., 2021). Therefore, they have a physical location where they can go and feel the product before making a purchase decision. Besides, the stores are strictly small, and stocking is done by hand, so there is no need to keep tons of stock on hand at all times. There is also space for customers to look around and get to know New Balance better by seeing how the company works there on their own time.
In conclusion, my recommendation to the New Balance business is that they should introduce a wheelchair with special technology in the insoles that absorbs the impact from many of the different processes, such as bike riding and running. It will offer more benefits since it will help disabled people and reduce perceived customer dissatisfaction by making their lives easier. Other suggestions include selling the “Human Powered” in an online-only environment since that is where they are targeting their market and providing a new store location so people can order and have it delivered to their homes. They should also consider opening a new store location to help increase foot traffic, increase sales, and generate more revenue. Lastly, my recommendation to New Balance is also suggested in the final section of my case study: adding a sneaker colorway for women that appeals to a wider range of consumers and markets. These suggestions will help diversify their product line towards another industry in which they have only a limited number of competitors: women’s sneakers.
References
Brons, D., Scheepens, R., & Fahland, D. (2021). Striking a new balance in accuracy and simplicity with the probabilistic inductive miner. In 2021 3rd International Conference on Process Mining (ICPM) (pp. 32-39). IEEE.
Pendleton, D., Derbyshire, P., & Hodgkinson, C. (2021). New balance; work-life balance is non-sense. in work-life matters (pp. 75-87). Palgrave Macmillan, Cham. Web.
Simonov, A. G., Konovalova, Y. A., Tinkova, A. A., & Dyuzheva, N. V. (2020, October). Policy review of global gas market players: a combined state and mne approach towards new balance of efficiency and security. In international scientific and practical conference (pp. 103-113). Springer, Cham.