Comfortable at its current location for the past twelve years, the
surrounding area has become home to other retail chains and department stores,
increasing the competition in the sports shoe and apparel market. Stores such as
Foot Locker and Wal-Mart are clambering to catch up with their rivals who have
been in the business for a while and carry immense selections. Sue's reputation
as a nationally ranked runner had always been sufficient to promote Runners
World, a familiar and stable fixture in the community. More recently, she has
become painfully aware that her reputation alone won't be enough to sustain her
current market. Determined to re-establish the store as the source for her
runner's needs, Sue begins the daunting task of analyzing the strengths,
weaknesses, opportunities and threats to her business. Conclusions Based on our
analysis of Sue's current marketing strategy and the questions we have raised
regarding Runner's World's future, we strongly urge Sue to continue to
specialize in running shoes, but to add other high-end brands other than Nike
and avoid the trendy and/or low-end brands such as Skechers (MENTION OTHER
BRANDS & RESEARCH THEIR PRICES), which would only confuse her customers.
We have
several recommendations for Sue to consider in order to continue the growth of
her company and attract a new market. Sue needs to establish a web site
(example: www.runnersworld.com) to further serve the needs of her existing
customers as well as attract new customers. Her focus should be on all aspects
of running --instructional videos, classes and running clubs. While Sue's
customers are browsing, promotional videos explaining product superiority should
playing on large screen televisions set up in strategic places throughout the
store. To make sure customer service is at its best, Sue can re-train her
current employees to be familiar with all the new products and services offered
by Runner's World and put her employees on a salary/commission program as
incentive to promote sales. In addition, Runner's World could sponsor local high
school track meets and 5K runs for charity. Finally, Sue should set up a
customer suggestion box and hold weekly strategy meetings with her employees to
gain perspective on how effective her strategy is, and also make sure she is
meeting the needs of her customers.
Words: 892
