1.  What are TWO (2) Digital Marketing tools that  will be most effective to achieve the main objective of the marketing plan for the new shoe, briefly describing how On Running would use each tool and provide a justification for each tool  chosen and would On Running uses that tool. 

 

2.  What areTWO (2) Public Relations tools that  will be most effective to achieve the main objective of the marketing plan for the new shoe, briefly describing how On Running would use each tool and provide a justification for each tool and how  On Running would use that tool

 

3.  Describe an example of how On Running could use Influencer Marketing to achieve the main objective of the marketing plan for the new shoe and provide justification for that example.   

 

4.  On Running regularly uses email marketing to communicate with and promote to customers. The company carefully ensures that they comply with the many international laws that govern the capture and use of customer email.  The company obtains customers' permission to send them emails.  On Running encourages customers to give them permission to email them with the enticement of keeping them up to date with new products, exclusive events, and providing them with notifications of sales promotions.  However, the key reason for On Running obtaining customer email addresses is to better target their promotions and email marketing and ultimately to sell more product.  While this approach is legal, it does raise questions ethically.  Explain whether this approach is ethical and provide a list of arguments for and against the position. 

 

When On Running co-founder Oliver Bernhard was a child, running made him feel whole, and he eventually grew up to become a Swiss pro triathlete and three-time World Ironman Champion.  He never imagined being at the helm of a disruptive brand shaking up the super competitive global market for running shoes and sportswear.  As his career as a professional athlete was winding down, he decided that there must be a way to make a running shoe that delivered a different type of running experience and feeling.  At the time Bernhard was sponsored by Nike, so he immediately approached them with his idea and unfortunately, the idea was promptly rejected. Unbeknown to him at the time, this rejection was a blessing in disguise, as he then set about making his own prototype of a new running shoe to create the experience he dreamed about.  The first prototype he created resembled a type of Frankenstein running shoe with pieces of garden hose attached to the sole of a traditional running shoe to make a  softer landing and a spring-like response.  Bernhard showed his protype to two friends, David Allemann and Casper Copetti.  They both thought the shoe looked terrible, but they were amazed how well it worked and the unique sensation of running it produced.  Dozens of more prototypes were then created but the basis of the first shoe remained - the cushioned landing and explosive take-off.  They started to share the shoes with fellow runners in their local running community and once people tried their shoes, they were hooked.  In 2010, the three friends formed a company in Zurich, Switzerland, and the shoe they produced quickly developed a cult following among local runners.  Just a month after the company was founded, early On Running prototypes won the ISPO Brand New Award, one of the most important prizes for innovation in sport. And so begun the journey from a strange-looking running shoe made out garden hose, to the creation of the revolutionary cushioning technology, CloudTec, to the On Running brand that is the fastest growing running shoe brand in the world. The global running shoe market size was valued at US$23.3 billion in 2020 and is projected to expand at a compound annual growth rate (CAGR) of 5.5%. Factors such as increasing health consciousness among people, that accelerated after the pandemic, and the growing popularity of running as a sport are driving the market growth.  The key players in the market include mega brands Nike, Adidas, Asics, Under Armour, and Puma.  However, in just twelve years On Running has successfully carved out a niche for itself within the highly competitive running shoe market. On Running's mission statement: To ignite the human spirit through movement  All On Running products are engineered by their in-house research and development teams, that includes talented sports scientists, engineers, material experts, and designers who work out of the On Labs in Zurich and Ho-Chi-Minh City.  The R&D team works on the innovation, engineering, design, and testing and aim to deliver a constant stream of innovations inspired by the product vision, the needs of their world-class athletes, customer feedback, and advances in materials and manufacturing technologies. On Running also partners with leading universities, such as the Swiss Federal Institute of Technology and the Fraunhofer Institute, and with innovative suppliers to co-develop new technologies.  On Running products have an iconic design and are versatile to use, synergistically combining engineering solutions with a minimalist Swiss design aesthetic.  On Running's relentless focus on innovation, design and Swiss quality leads to advanced products that they believe allows them to maintain premium price points and encourage repeat purchases among their growing number of customers. On Running's culture of innovation has driven them to repeatedly introduce numerous ground-breaking technologies. In 2010, the company began by bringing their innovative, patented technology, CloudTec, to the world. Since then, they have continuously innovated to make a  wide portfolio of award-winning products and proprietary technologies.  On Running pioneered the use of flex plates in all their shoes as early as 2010.  In 2013, they introduced the first injection moulded, purpose-engineered Speedboard to transition impact forces into explosive push-offs.  They then introduced the Cloud model with the Zero-Gravity outsole in 2014 to offer an ultralight product.  In 2016 they developed Missiongrip to be used on shoes to run and walk on trails and in the outdoors and at this time they also expanded their product range to include a range of sports apparel such as the ultra-lightweight running apparel with advanced fabrics such as the Hybrid Short and Lightweight Jacket.  In 2019, On introduced the Helion superfoam, the Cloudstratus shoes and the patented sequential CloudTec solution, that combined added support with even more cushioning for runners. In 2019 "The Roger" franchise, was developed with the legendary tennis superstar Roger Federer after he joined On Running as an active co-entrepreneur and investor. While developing a competition tennis shoe with Roger, he suggested extending On Running's patented technology to a tennis sneaker family to re-invent how age-old tennis sneakers are made. This collaboration has further enhanced On Running's performance product offering and reputation.  Roger's perspective and insight as a professional athlete is expected to help improve their product development, marketing and user experiences while adding to a growing consumer perception of prestige of the company. Then in 2020, On Running announced Cyclon, their first 100% recyclable shoe range, which will be sold through an innovative monthly subscription model where the customer receives a new pair of Cloudneo (the first Cyclon model) sent to them every six months with a bag for them to send back their old pair to be recycled and reused.  The Cyclon has already won the 2021 ISPO Award for Product of the Year and Sustainability Achievement.  This development represents a significant milestone in On Running's long-term quest to make a  "closed loop" system for all of their products.  The Cloudneo's CO2 footprint is 50% lower than an average On Running shoe and creates 90% less waste.  Cloudneo - the first recyclable closed loop running shoe.  In 2022, On Running released its Cloudmonster, a maximalist sneaker built upon a tottering, pumped-up sole that adds a few inches to your height and provides even more cushioning than its previous running shoes - a noted departure from their previous low-profile designs that are equally likely to be used for fashion as they are for performance.  The On Cloudmonster shoe  To further demonstrate its interest to expand into the casual and fashion markets, in early 2022 On Running embarked on their first footwear and apparel collaboration with the Spanish luxury brand Loewe.  The offering, which included a US$390 navy-blue gradientcoloured version of On Running's low-profile Cloudventure sneaker and an US$890 waterproof anorak, is nearly entirely sold out worldwide, despite sitting at a far higher price than their other products.  On Running and Loewe designed the collection in tandem, and it was released at Loewe stores, On Running's brick-and-mortar (physical) locations, and retailers like Bergdorf Goodman, the Webster and Net-a-Porter.   Loewe/On Cloudventure rubber trimmed recycled canvas sneakers  On Running is based in Switzerland, one of the world's smallest countries.  With few inhabitants, high mountains and long winters, there are not enough runners there to support a running brand.  So right from day one, On Running aspired to be a multinational company.  Over the past decade, On Running has built strong bonds with consumers in markets such as the United States, Brazil, Australia, Germany and China.  Today, On Running operates in more than 60 countries and has fully owned subsidiaries in the major markets, all of which are growing rapidly.  On Running products are worn, recommended, tested, and loved by an active community across continents and cultures.  On Running now calls Portland, New York, Shanghai, Tokyo, Sao Paulo, Berlin, Melbourne, Ho-Chi-Minh City, and of course Zurich, "home."   On Running Global Distribution Presence  In terms of distribution, On Running sells its products worldwide through a variety of channels - a Business to Consumer (B2C) direct channel that includes its own website and retail stores - and a Business-to-Business (B2B) indirect channel that includes distributors and other company's websites and retail stores.  As a result of this multichannel distribution system, the company has a strong presence in the European and North American markets and is growing in other regions such as Asia-Pacific.  Additionally, the company has a robust logistics and supply chain management system in place, allowing them to manage and maintain inventory levels, and quickly deliver products to consumer and business buyers worldwide.    Net Sales by Region (based on the location of the customer) for the six-month period ended June 30, 2021. On Running's B2C direct channel provided 37.7% and 36.6% of its net sales for 2020 and the six-month period ended June 30, 2021, respectively, is primarily comprised of their own ecommerce website (https://www.on-running.com , but also includes their platform on Tmall (https://www.tmall.com )and JD.com (https://global.jd.com ) in China, and their flagship store in New York City and four retail stores in China.  During 2020, On Running's website achieved more than 60.4 million visits, representing a 136% increase compared to 2019.  In the six-month period ended June 30, 2021, their website achieved more than 38.9 million visits, representing a 36.8% increase compared to the six-month period ended June 30, 2020.  Currently, On Running's B2C Direct channel is their fastest growing channel of distribution. On Running's culture of innovation extends to the in-store experience.  On Running's flagship store in New York City offers an explorative, immersive, and tech-driven experience to customers.  The store features a "Magic Wall" that scans shoppers' running styles in realtime and cross-references the customer's unique running attributes against a database of more than 50,000 runs to help them find the perfect On Running shoe for their running style and needs.  Another technological feature of the store is a custom-built invisible foot scanner that can provide an accurate reading of a foot within 1.25mm either way, ensuring that customers can achieve the perfect size trainer.  On Running believes the innovation and personalization exemplified by this technology are core to their business and highly valued by customers.   On Running's New York flagship store (the Magic Wall on the left)  At the time of On Running's founding, they sold their shoes in specialty running stores where discerning runners discovered them and became committed fans of the brand.  The B2B indirect channel accounted for 62.3% and 63.4% of On Running's net sales for 2020 and the six-month period ended June 30, 2021, respectively, and the company has built strong relationships with some of the most selective retailers in specialty running, outdoors, fashion and lifestyle.  On Running carefully selects the best retail and distributor partners to represent the brand in a manner consistent with its ethos and premium positioning.   As of June 30, 2021, On Running products are available at approximately 8,100 retail stores across more than 50 countries.  More than 1,300 dedicated On Running "shop-in-shops" and "brand corners" (areas of the store exclusively dedicated to displaying and promoting On Running products) allow consumers to have a physical interaction with the brand. Most of On Running's partners are premium specialty stores that operate less than 5 retail stores and play an important role in establishing and reinforcing the brand's credibility in their respective communities.   On Running shoes for sale on the Torpedo7 website in New Zealand  On Running has carefully developed a fast growing presence across a number of social media platforms, such as Facebook, Instagram, LinkedIn, Strava, Twitter, and YouTube.   On Running has a high share of voice, which measures the number of mentions of their brand on social media sites, compared to their key competitors in the running space, demonstrating that their global community members are active within their channels as well as promoting the brand to their own audiences, sharing tips and offering advice to enhance the community experience.  The company typically uses social media as a form of storytelling about the brand, their products, their values, their events, and their athletes.  The company also regularly advertises their product range on these channels using paid advertising.   A recent On Running Facebook Advertisement  On-running.com is their website and online e-commerce store and currently its servicing around one million active customers globally.  The website is configured for the region the customers is visiting from, so when you visit the website the product range and stock levels correspond to your region.  The stock for the online store is supplied by one of On Running's wholly-owned subsidiaries.  For example, if you are based in New Zealand (the Asia-Pacific region), the website you will see is serviced by their Melbourne, Australia subsidiary.  On Running also uses the website to share information about products, the company, its athletes, and it events.  If you purchase any products from the website, you will have the option to set up a personal account and to receive email marketing from the company.  The company uses email marketing regularly to communicate to its current customers news about the company, new products, and any sales promotions they are managing at the time.  On Running also uses the suite of digital marketing tools, such as SEO (Search Engine Optimisation) and Paid Search, to drive traffic to their website and online store.    On Running is also conscious of its impact on the environment and is committed to growth from sustainable resource use. The company has built up an in-house team of experts that track the environmental footprint of all their activities through lifecycle analysis to identify opportunities for a positive impact and help set meaningful targets for further reductions.  On Running uses recycled materials wherever available and work with their suppliers to create new opportunities to use circular and non-petrol- and non-food-chain-based materials.  They have already made strong progress towards their goal of using 100% recycled polyester, 100% recycled polyamide and 100% organic certified natural materials by 2024. On Running is committed to ambitious CO2 reduction targets that are approved by the Science Based Targets initiative (SBTi) and has policies in place to ensure their key suppliers are similarly aligned to reduction targets.  All of On Running's top suppliers are publicly listed on their website to ensure complete transparency of their efforts to reduce emissions and reduce impact of the environment. One of On Running's key values is that it is a company created and operated by runners, for runners.  The company views athletes that use their products as advocates of the brand.  They tell their friends, family and social followers to choose On Running too.  Word of mouth is a big driver of growth for the brand.  Many On Running's fans own more than one or two pairs of their shoes, they own many. 43% of their online store customers have already purchased two or more items, and this number keeps increasing.  The On Running communication team regularly receives messages from fans around the world.  They might hear from a runner in Shanghai, a hiker in Hokkaido, or a commuter in Chicago, or a rather famous Swiss tennis player who wants to get involved. On Running feels that there is no better validation for the performance and quality of their products than professional athletes trusting their shoes in the most demanding settings. Olympians and World Champions embrace their products and proudly display them on the world stage.  At the same time, sponsored On Running athletes create opportunities for storytelling about the brand and their products in the most authentic believable manner to create promotional opportunities for the brand. The company regularly sponsors world-class such as the Tokyo Olympic gold medallist and 2022 World Ironman Champion triathlete Kristian Blummenfelt. https://www.on-running.com/en-nz/stories/kristian-blummenfelt.  A full list of On Runnings sponsored athletes can be found on their website.   Another way On Running has stood out in the highly competitive running shoe market is through its support of the refugee team at the world athletic championships in 2017 and as they prepared to compete in the 2021 Olympics in Tokyo.  On Running has been a strong supporter of the team, which is composed of runners who have been displaced by conflict or persecution in their home countries and provides them with shoes and other gear to help them train and compete.  This association aligns with the company's mission of promoting running to empower and unite people from all backgrounds, and it highlights the company's commitment to making a positive impact on the world.  On Running also supported the production of a full-length documentary, RUN, about the refugee team's struggles, challenges and achievements that can be viewed on their YouTube channel.    The On Refugee Team  The 'Try On' experience has proven a useful tool for On Running to show the benefit of its products and truth in their performance claims.  To support grassroot runners, On created global events such as the 5k run crew 'Squad Races' and the yearly 'Run Your Local Mountain' campaigns. Using these events, On Running has encouraged thousands of broadly active runners to test and discover their brand.  More recently, the On Athletics Club ("OAC"), a partnership between On Running and a team of eight world class runners, was formed for the purpose of supporting athletes in their quest to become champions.  The athletes provides valuable input into company's innovation and development of products that further reinforces the foundation of the brand. The On Athletics Club (OAC)   In September 2021, On Running debuted on the New York Stock exchange and did so by staying true to its mission and brand - when the company's founders, along with 100 other runners, jogged along the Hudson River to Wall Street, where the company's leaders rang the infamous NYSE opening bell, officially making their company a publicly traded company.   With its IPO, the brand—which is barely a decade old yet already recognized globally for its rapid growth in a highly competitive running shoe and sportswear markets —offered further proof that outdoor and athletic consumers aren't the only people interested in the company.  Investors priced its IPO of 31.1 million shares at $24 a share—up from its initial expectations—for an initial raise of $746 million - with an estimated market value of $7.3 billion based on the number of outstanding shares listed in U.S. Securities and Exchange Commission filings.  The funds obtained in the IPO are earmarked to support operations and future growth of the company.  In conclusion, On Running is a company that differentiates itself from its competitors by focusing on providing advanced technology with minimalist design in their running shoes. They have unique selling points like CloudTec technology and the Cyclon range, low heel-totoe drop, sleek design, and collaborations and partnerships with multiple companies, brands, athletes, events, and organisations.  In just over twelve years the company has gained a strong following among runners and has been positively reviewed by many running and fitness publications. While On Running is relatively new compared to the more established brands such as Nike and Adidas, it is quickly becoming a major brand in the running shoe market.  With the global running shoe market growing at a steady pace, and the broader $300 billion global sportswear also continuing to grow on the back of the pandemic and wellness movement, On Running is well-positioned to succeed for many years to come.    On Running's growth trajectory (H1 2021 = first 6 months of 2021).