Tag Archives: clothing

Rent and return these shoes

Let’s start with a quiz: How many running or athletic pairs of shoes do you own? How long do they last? How much do you spend?

If your closet is like mine, you probably have at least six pairs, of which five pairs are very used and dirty. It would be nice if we could wear running shoes until they are worn or dirty, and then just trade it them in for a new pair. Well, as luck would have it, Swiss footwear company On Running is now offering a new running shoe called “Cyclon.” But Cyclon is not for sale – only for rent. Yes, rent. Use, wear, and return them for a new pair.

Cyclon is available for a monthly fee of $29.95. It is a subscription service for not only a performance running shoe, but a fully recyclable plant-based shoe. Castor beans are used as the base, and the shoe upper is sewn from a single piece of fabric to help reduce waste. On Running focused on the challenges of not only creating a fully recyclable shoe, but also making sure that the shoes were returned to be recycled. Thus, the subscription model of ‘rent and return’ gives On control of the recycling process.

It seems to have resonated with the market – in the first 48 hours after launching Cyclon On signed 2,000 subscribers! On needs 5,000 people to sign up per region in order to ship the shoes at reduced carbon footprint of the transportation.

Let’s go for a run!

Group Activities and Discussion Questions:

  1. Discuss a subscription business model. Poll students: What subscription services do they use? Other services they can name? (Ex: meal kits, shave clubs, entertainment, etc.).
  2. Poll students: On average, how much do they pay for a running shoe and how long does it last? How many pairs of athletic shoes do they have currently?
  3. Show On Running website: https://www.on-running.com/en-us/cyclon
  4. Show video of founders discussing Cyclon: https://youtu.be/VtosSdRZcsA
  5. What is the target market for Cyclon?
  6. What elements should be in the marketing program for this shoe?

Sources: Outside Online; other news sources

 

Leave a comment

Filed under Classroom Activities

The Era of the Fashionable Face Mask

So far the year 2020 has drastically altered lives around the world in every way possible. Think about it – since this past March, there has been a significant shift in consumer spending patterns. Globally, consumers have changed what they buy and where they buy it. Stores and restaurants closed. Online shopping boomed. And more.

Just consider what happened during the toilet paper shortage of 2020 to see how consumer behavior changed. And it’s not just toilet paper or flour; the global coronavirus pandemic has made changes not only in our households, work, education, transportation, social groups, but also in fashion. Fashion? Yes, fashion.

As recently as March (only five months ago!) it was doubtful that the average U.S. household had a supply of face masks. Think about it. Did your household stock any face masks prior to 2020? Now compare that with the number of face masks you have today in your home, car, briefcase, purse, bike bag, and office. It’s quite a big change and has created an entirely new product category for fashionable face masks.

There is a lot of variety and of course price variations. Some companies are giving away face masks branded with their logo. Other companies are creating new patterns and designs that let people express their personalities. They can be as inexpensive as cloth masks for a dollar or two, all the way up to a $1.5 million jeweled mask!b

Stay safe – and fashionable.

Group Activities and Discussion Questions:

  1. Poll students: What industries do they think are affected by the coronavirus? (Did any list fashion?)
  2. Discuss the impacts of the coronavirus on companies.
  3. Poll students: How many face masks did they have at the beginning of the year? How many do they have now?
  4. Show video of world’s most expensive mask: https://www.impomag.com/home/video/21160288/the-worlds-most-expensive-mask?lt.usr=71617211&utm_source=IMPO+Insider_08142020&utm_medium=email&utm_campaign=115163&utm_term=600946
  5. In groups or individually, have students do an Internet search for masks. Suggest they try their favorite brands, Amazon, Etsy, and more.
  6. Have students examine the different brands and determine the target market for that mask.
  7. Select several target market segments: have student develop a mask for the market segment considering the four Ps.

Source:  Associated Press; CNET; IMPO; other news sources

Leave a comment

Filed under Classroom Activities

Wear Lululemon Gear While Working Out on Mirror

Acquisitions can be tricky. Companies need to assess what markets to enter, and which products and services are needed for those markets. While it is common for food and beverage companies to use acquisitions to gain market share (consider Pepsi’s recent purchase of Rock Star beverages), it can be a tad trickier when combining other companies. A key consideration is that companies find synergies that can be capitalized on when combining organizations. Recently, Lululemon may have found a good acquisition as it expands beyond athletic apparel to acquire fitness equipment manufacturer Mirror.

Mirror is a high-tech, interactive mirror that streams workout classes, offers live classes and on-demand classes, plus more intensive one-on-one personal training session. Mirror launched in 2018 (and received an investment from Lululemon in 2019). The Mirror equipment is a low-profile mirror – yes, a mirror – priced at $1,495 purchase plus a $42 monthly membership fee. Personalized training is $40 per session. Lululemon has a strong brand and loyal customer following. In addition to its trendy athletic gear, it offers fitness classes in stores and online.

The acquisition is happening at a time when Americans have been impacted by Covid-19 and are working out at home instead of going to the gym. Even with new safety measures, many people are opting out of gym memberships in favor of home workouts.

Shall we work out inside today?

Group Activities and Discussion Questions:

  1. Discuss the four key marketing strategies: product development, market development, market penetration, and diversification.
  2. Discuss acquisitions as a marketing strategy. When is this effective? When is it not effective?
  3. Show Lulemon’s web site: https://shop.lululemon.com/
  4. Show Mirror’s web site: https://www.mirror.co/
  5. How do these two companies complement each other?
  6. Divide students into teams. Have each team develop a promotional plan that the companies can use to promote their union.

Source: Associated Press; CNN News; New York Times; other sources

Leave a comment

Filed under Classroom Activities