New York University Management of the Birkenstocks Company Case Study For the Case Analysis #1, read the Birkenstock case on pages 357-358 of the text. Ans

New York University Management of the Birkenstocks Company Case Study For the Case Analysis #1, read the Birkenstock case on pages 357-358 of the text. Answer the questions at the end of the case. Please double space. Use good grammar and organization. Write in professional business style (no 1st or second person — I, me, our, you, your. Use 3rd person — the company, its products, etc.). Points will be deducted for each typo and/or composition error. No specified min/max length. Just answer the questions completely and thoroughly, but do not go on and on just for the sake of length.Suggest you create the case analysis in a Word document. When you are satisfied with it, submit the case using the assignments link. I will then be able to grade your submission on-line and you will be able to see my comments and your grade. If you have difficulty posting your submission on-line, feel free to email it to me at PRODUCT, BRANDING, AND PACKAGING DECISIONS CHAPTER ELEVEN
357
358
Section Four VALUE CREATION
Quiz Yourself
Birkenstock website. It also has developed a nice collection of Instagram shots that empha-
size its diverse assortment of options. Along with fashion shots of models wearing its silver
sandals with high-fashion dresses, it also features hikers in remote locations, sporting its
comfortable-looking, well-worn footwear.
The combination of great product and strong branding has been highly effective.
Birkenstock’s sales have grown by anywhere from 40 percent to 50 percent over the past
year in different regions of the world, and it estimates that it will sell 20 million pairs annu-
ally by 2020. That’s a lot of toes to show.”
1. All of the following are elements of a product except
a. Brand name.
b. Quality levels.
C. Packaging.
d. Warranties.
e. All of these are elements of a product.
2. Which of the following is a subjective measure of brand
equity?
a. Brand name
b. Brand awareness
c. Brand quality
d. Perceived value
e. All of these are subjective measures.
(Answers to these questions can be found in the Quiz Your-
self Answer Key section.)
.)
Questions
1. Visit the company website (www.birkenstockusa.com/) and identify and describe the
different product lines that it markets.
2. Describe its product line breadth.
3. Review the different product categories in each of the company’s product lines.
Which has the greatest depth? Which has the least?
4. How has the company positioned its brand? How does it go about communicating its
position?
Chapter Case Study
connect
Endnotes
ONICOR
VEARS
FROM THE COUNTERCULTURE TO THE RUNWAY:
HOW DID BIRKENSTOCKS BECOME FASHIONABLE?
Hippies wear them. Rebels, dropouts from conventional consumerism, flower children-all
images traditionally associated with Birkenstocks, the clunky, cork-soled sandals that have been
issuing forth from German factories for 240 years. Although the company has introduced a few
variations, such as a clog or rubberized straps, the look of a Birkenstock is
immediately recognizable and little changed from its humble beginnings.
All these features suggest it is a poor candidate as a fashion product.
Rather than changing every season, the footwear has stayed largely the same.
Rather than focusing on the appearance of the offering the product design
stems solely from considerations of comfort and orthopedic safety. Further-
more, they continue to be made in relatively expensive German factories
rather than having production shipped overseas to lower the costs.
Considering these factors, it seems strange that Vogue has called Birks
“sexy” and Glamour named it the shoe of the summer recently. Explanations
for this newfound popularity with fashion’s elite are varied and unproven. One
fashion blogger explained that after years of wearing only uncomfortable,
tight, high-heeled shoes, slipping on a pair of Birkenstocks was a life-changing
experiment in comfort, so she could not imagine going back. Other fashion
leaders, including Manolo Blahnik-known for his sky-high heels and creative
shoe designs-has offered his endorsement, asserting that as long as the wear-
ers have nice toes and a good pedicure, the sandals can look nice.
The approval from these fashion leaders has led more and more famous
people to name-drop the brand. In popular magazines that feature interviews
with trendy celebrities like Keke Palmer and Lorraine Pascale, the Birkenstock
name pops up as the shoe of preference on set.”
The shift certainly did not result from a conscious effort by Birkenstock
though. Rather, it caught the company somewhat by surprise, because it had
been doing business the same way it had for more than two centuries. It has a
virtually nonexistent marketing budget, does not advertise widely, and did not
pursue the endorsements it has received from fashion trendsetters. Its CEO
asserts that the popularity is a reaffirmation of a basic, and seemingly out-
dated, marketing lesson: Build a great product, and people will seek it out on Birkenstock has gone high fashion Pictured
their own.
here is British American actress Lily Collins
Still, the company is not immune to the appeal of being known as fashion sporting the 240-year old brand on her feet
able. Accordingly, it is happy to tout its mentions in popular media on the COPCYZOLJWENNNews.com
1. Daniel Bentley, “Aston Martin Drafts Tom Brady for Marketing
Push Fortune, May 17, 2017, Robert Klara. “Why Aston Martin
Is Marketing Its Most important Car’ Ever to Young Female
Drivers’ Adweek, March 3, 2016: “Serena Williams Offers a
First Look at the Aston Martin Valkyrie, Fox News, June 13.
2017
2. www.trekbikes.com
3. Sharon Ng Cultural Orientation and Brand Dilution: Impact of
Motivation Level and Extension
Typicality. Journal of Marketing
Research 47, no. 1 (February 2010), pp 186-98
4 Michael A. Wiles, Neil A. Morgan, and Lopo L Rego. The Effect
of Brand Acquisition and Disposal on Stock Returns. Journal
of Marketing 76, no. 1(2012). pp. 38-58
5. Laura Knutson, “New Products Amp Up Taste General Mills
blog January 4, 2018, https://bloggeneralmils.com/2018/01
new-products-amp-up-taste/ www.haagendazs us/products.
6. Jack Neff, “As P&G Looks to Cut More Than Half Its Brands
Which Should Go? Advertising Age, August 4 2014 adage com.
7. “UA Roster. Under Armour, www.underarmour.com/en-us/ua-
roster?cid=PSX7cUS%7CBR%7cggl%7call%7cGoogle-US-All-
DSAX7call%7call%7call%7cbroad%7cdg%7c&gclid=EAlalQab
ChMiBojo_J2AIV1XSBCh2khAB1EAAYASAAEgLbXvD_
BwEkgolsrc=aw.ds: Darren Rovell “Bryce Harper Signs Big
gest Endorsement Deal for MLB Player.’ ESPN May 4, 2016.
8 Kevin Lane Keller, Strategic Brand Management Building Mea-
suring and Managing Brand Equity, 4th ed. Upper Saddle
River, NJ: Prentice
Hall, 2012), David A Aaker, Building Strong
Brands (New York Simon & Schuster, 2012)
9. This discussion of the advantages of strong brands is adapted
from Keller, Strategic Brand Management
10 Kevin Lane Keller and Donald R. Lehmann, “Assessing Long
Term Brand Potential Journal of Brand Management 17
(2009). pp. 6-17
11. “McDonald’s Just Won a Big Trademark Turf Fight,” Reuters,
July 5, 2016
12. www.interbrand.com. The net present value of the earnings
over the next 12 months is used to calculate the value
13 Keller, Strategic Brand
Management David A. Aaker, Manag-
ing Brand Equity (New York Free Press, 1991).
14 R Huang and E. Sarigöllü, “How Brand Awareness Relates to
Market Outcome, Brand Equity, and the Marketing Mix’in
T. M Choi (Ed.). Fashion Branding and Consumer Behaviors.
International Series on Consumer Science (New York
Springer, 2014
15. David Kiefaber, Activia Shows That Inside Shakira’s Famous
Stomach Are… More Shakirasl,” Adweek, March 19, 2014,
www.adweek.com
16 Jessica Wohl “Can a Ref Finally Get Activia Past the Jamie Lee
Curtis Era? Advertising Age February 3, 2017, http://adage.
com/article/cmo-strategyactivia/307761/
17. “Countdown’s Onl Five Things to know about Target’s New
Brands Before They Launch This Fall. Target August 8, 2017
https://corporate target.com/article/2017/08/new-brands-
teaser
18. Tim Nudd, Zoinks! State Farm Saves Scooby-Doo and the
Gang in Groovy Animated Spot” Adweek, October 29, 2013.
www.adweek.com
19. www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=B.
20. Sarah Halzack, “Retail’s Secret Weapon is the Private Label
Bloomberg: October 24, 2017 Lauren Hirsch, Jet Launches Its
Own Private Label Brand, Uniquely J. CNBC October 20, 2017,
www.cnbc.com/2017/10/20/jet-launches-private-label-brand-
uniquelyj.html
21. www.kraftheinzcompany.com/brands.html
22. The distinction between brand and line extensions is clarified
in Barry Silverstein, “Brand Extensions Risks and Rewards.
Brandchannel.com, January 5, 2009.
23 See Alokparna Basu Monga and Deborah Roedder John,
“What Makes Brands Elastic? The Influence of Brand Concept
and Styles of Thinking on Brand Extension Evaluation Journal
of Marketing 74, no. 3 May 2010). pp. 80-92 Thorsen Hennig-
Thurau, Mark B Houson, and Torsten Heitjans, Conceptualizing
and Measuring the Monetary Value of Brand Extensions: The
Case of Motion Pictures’ Journal of Marketing 73, no 6

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