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Pacer Shoes

In: Business and Management

Submitted By KnowledgeFreak
Words 310
Pages 2
“Case Analysis”

1. Background:

• Henry Carson founded the company Pacer Athletic shoes in 1970’s to serve marathon runners.
• Star product ‘Pacesetter’ becomes hugely popular among serious athletes.
• Company enters into broader market to counter competition.

2. Situation Analysis:

• Pacer Athletic shoes extends its product line in early 1990’s
• Enters in casual runners & walker segments
• Customers being lured by the competitors towards flashier shoes
• ‘Pacesetter plus’ replaces hugely popular original model- ‘pacesetter’.
• RaceOne’s quality not up to mark- ‘toe stitching started to fray’.
• Old consumers (read serious athletes such as Cal Lindsen) complaining about new products.
• Sluggish sales
• Regional share is eroding
• No increase in market share of broader shoe market inspite of huge marketing expenditure

3. Problem Identification:

• Loss of core identity- technical excellence-Serious athlete shoes
• Confusion in mind of consumers about what the company really stands for
• None of the companies products is making its target consumers happy

4. Alternatives before the firm:

• Reintroduce the original pacesetter
• Test all products properly before their launch- more quality checks
• Increase & improve the shoe making capacity/capability to ease off burden
• Stop making walking shoes & focus only on serious athletic shoes
• Introduce a flashier/ stylish athletic shoe model.

5. Recommended Alternatives:

• Reintroduce the original pacesetter
• Discontinue ‘walking shoes’
• Produce better casual running shoes.
• Introduce a flashier/ stylish athletic shoe model.
• Test all products properly before their launch- more quality checks

6. Implementation Plan:

• Make the original pacesetter with slight technological advancements in consultation with athletes such as Cal Lindsen
• Highly advertise the…...

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