The brand management efforts of a niche specialist: New Balance in the athletic footwear industry

Strategic brand management is employed by organizations to maximize long-term growth and profitability. Nowhere is brand management more important than in the highly competitive athletic footwear industry. Given the wide variety of athletic footwear available, shoppers often rely on brand names to assist in their purchase decision. Industry research suggests 50% of shoppers shop with a brand name in mind (Silverman, 1998). Thus, it is imperative that athletic footwear manufacturers cultivate awareness and strong associations with their brands if they are to ensure long-term success. To date, analyses of the athletic footwear industry (e.g. Katz, 1994; Strasser & Becklund, 1993) have focused on industry leaders, such as Nike, Reebok, and Adidas. In contrast, this study highlights the brand management of a successful niche competitor in athletic footwear, New Balance Athletic Shoe, Inc. In an industry experiencing a leveling of growth, New Balance's revenues have increased 150% during the mid-1990s. Utilizing Aaker's (1991) framework for understanding brand equity, this study illustrates how New Balance has achieved such growth leveraging its limited resources by focusing on two specific niches (running shoes and width sizing) in the United States athletic footwear market. While particular interest is paid to the branding efforts of New Balance, it is done within the broader context of understanding how a small niche player can successfully compete in a segment dominated by much larger publicly-owned companies. In addition to academic research and industry statistics, this study utilizes personal interviews with New Balance Athletic Shoe personnel to better understand the practices of a niche competitor in a highly competitive industry. The results of this study lead to four recommendations for brand managers of both niche specialists and market leaders in the sporting goods industry. First, niche specialists must seek controlled, rather than rapid, growth using creative segmentation efforts. Second, niche competitors should study their larger competitors for signs of fragmentation and dilution, and capitalize on the resulting opportunities. Third, it is possible to drive brand identity in the sporting goods industry using an organization's values and social responsibility. Fourth, the cultivation of a salient identity takes time, particularly in the case of a niche specialist. Therefore, the brand manager must be patient with well-founded brand strategies.