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Brand Strategy Analysis for Birkenstock Footwear in Canada Essay

Brand Strategy Analysis for Birkenstock Footwear in Canada Essay

ANSWER

Analyzing Birkenstock Footwear’s Market Strategy

  1. Analysis of the Product-Market for Birkenstock Footwear:

i) Structure, Evolution, and Key Qualifying Dimensions (20%):

  • The market for Birkenstock Footwear primarily falls into the fashion and comfort footwear segment. Birkenstock is known for its iconic sandals featuring cork footbeds. The structure of this market has evolved over the years, with Birkenstock transitioning from a niche brand to a mainstream one.
  • Evolution: Birkenstock’s roots date back to 1774, but it gained global recognition in the 1960s when its comfortable and health-oriented sandals became a fashion statement. Over time, Birkenstock has diversified its product range to include clogs, boots, and sneakers.
  • Key Qualifying Dimensions:
    1. Comfort and Orthopedic Focus: Birkenstock emphasizes foot health and comfort, using cork footbeds that mold to the wearer’s feet.
    2. Sustainability: Birkenstock has increasingly focused on sustainability, using eco-friendly materials and production processes.
    3. Iconic Design: The brand is known for its distinctive, minimalist designs that have become a fashion trend.
    4. Target Audience: Initially, Birkenstock targeted older consumers seeking comfort, but it has expanded its appeal to younger generations.

ii) Brands Competing Directly, Indirectly, and Emerging Competition (15%):

  • Direct Competition: Brands like Crocs, Teva, and Chaco directly compete with Birkenstock in the comfort and orthopedic footwear segment. These brands offer similar features and target similar customer needs.
  • Indirect Competition: Fashion footwear brands like Nike, Adidas, and Gucci indirectly compete with Birkenstock by targeting customers looking for trendy and stylish footwear.
  • Emerging Competition: Emerging brands like Allbirds and Rothy’s pose competition to Birkenstock due to their focus on sustainability and comfort, attracting environmentally-conscious consumers.
  1. Analysis of Consumers of the Product-Market:

i) Customer Evoked Propositions (CEPs) (15%):

  • Birkenstock’s CEPs include comfort, orthopedic support, durability, and a natural feel. Customers perceive Birkenstock as a brand that prioritizes foot health and comfort.

ii) Needs-Based Segmentation Model (25%):

  • Birkenstock’s product-market can be segmented based on consumer needs:
    1. Comfort-Seekers: Individuals primarily seeking comfortable and supportive footwear for everyday use.
    2. Fashion-Conscious: Consumers looking for stylish and trendy footwear options with an emphasis on comfort.
    3. Sustainability Enthusiasts: Eco-conscious customers interested in environmentally-friendly footwear.
    4. Health-Focused: Those with specific orthopedic needs or foot conditions requiring supportive footwear.
  1. How Birkenstock Footwear Competes:

i) Leadership Philosophy (25%):

  • Birkenstock’s Leadership Philosophy aligns with the GBL Framework:
    • Purpose: Birkenstock’s purpose is to improve people’s lives by providing comfortable and healthy footwear. It focuses on promoting foot health and overall well-being.
    • Values: The brand values quality, sustainability, and authenticity. It prioritizes using natural materials and eco-friendly practices.
    • Story: Birkenstock’s story revolves around its rich heritage dating back to the 18th century, emphasizing the tradition of craftsmanship and innovation.
    • Strategy: The brand’s strategy is to combine comfort and style, cater to evolving customer preferences, and maintain a sustainable approach to production.
    • People: Birkenstock engages with its employees, customers, and partners to create a community around the brand’s values and mission.
    • Impact: Birkenstock seeks to make a positive impact on foot health, the environment, and society by promoting sustainable practices and consumer well-being.

Appendix:

  • The information provided in this analysis is based on publicly available sources and personal observations. Sources include Birkenstock’s official website, industry reports, and reputable fashion and footwear publications.

Brand Strategy Analysis for Birkenstock Footwear in Canada Essay

QUESTION

Description

 

 

The ability to conduct a strategic market analysis is key to the development of a compelling brand strategy and brand platform. To conceive brand strategy, brand managers conduct a strategic analysis of the product-market in which the brand competes to discern opportunity for the brand to build a strong position with customers.

This analysis therefore requires a thorough diagnosis of the market environment in which the brand competes, and an interrogation of the brand’s ability to win in this market (Analysis of Micro and Macro environments).

The brand manager then formalizes the brand strategy­–the brand positioning and the associations he/she aspires to create in customers’ minds. This strategy enables the pan-company alignment of functional strategies in support of brand and business objectives.

Your task: In this assignment you are expected to investigate a few elements that are part of a much broader brand strategy analysis:

1.From an analysis of the product-market in which Birkenstocks Footwear competes (35%):

i)Explain its structure, evolution and 3-4 key qualifying dimensions (20%)[see ppt lec 2 pg 10,pg 25-more]

ii)Determine the brands it competes against most directly, more indirectly and if any brands represent emerging competition (if any exist). Briefly explain your choices. (15%)

2.From an analysis of consumers of the product-market in which Birkenstocks Footwear competes (40%):i)

i).Using Romaniuk’s Framework for CEP Generation determine the CEPs for consumers for the product-market in which Birkenstocks Footwear competes (15%)[see book ]

ii)Describe a needs-based segmentation model for the product-market in which Birkenstocks Footwear competes. Your answer should mirror the Luxury Hotel example completed in the second class. (25%)[see pg 38]

3.From an analysis of how Birkenstocks Footwear competes in this product-market (25%):[see lec 3]i)

i)Infer the Leadership Philosophy for Birkenstocks Footwear (GBL Framework). It must follow the format used for the Patagonia and Starbucks examples in class. (25%)

Your key findings must be supported through referencing sources in a one-page appendix to your assignment.  Your research for this assignment should include a review of publicly available information on the Internet and other sources, and your personal observations from visits to online and retail locations for the brand and its competitors. In keeping with academic rigour, insights and paper contents must be your own.

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