Ch. 7 - Business Marketing

Chapter 7 of MKTG: Principles of Marketing focuses on Business Marketing. Business Marketing, also called industrial marketing, is the marketing of goods and services to individuals and organizations for purposes other than personal consumption.



While shopping at Footlocker, the Business-to-Business electronic commerce is the common method used. Footlocker uses the social media platform to promote new sneaker releases and major sports events. Footlocker has an Instagram, Facebook, and a Twitter page. They all include direct links to footlocker.com where customers can buy any of the products featured on their pages. Footlocker uses the internet to facilitate most of all its selling, promotion, and advertising. This helps to reach its target audience and even people who are not apart of their target audience. Lately, everyone has an account with at least one of the social media platforms I mentioned earlier and that puts Footlocker ahead of the game being that they post daily on each and every platform as opposed to other sneaker retailers.

Ch. 11- Developing and Managing Products

Chapter 11 of MKTG: Principles of Marketing focuses on Developing and Managing Products. Products that are sold in footlocker are modified all the time. New sneakers, styles, apparel, and accessories are always coming out. According to the product life cycle, I would say that Footlocker is still in its Growing Stage simply because there will always be sneakers coming out according to the season and the audience. New ideas for any items that Footlocker sells will always come into play.

As long as companies like Nike, Adidas, and Puma continue to release new styles and sneakers, Footlocker will continue to be in the Growing Stage of the product life cycle.

Ch. 8 - Segmenting and Targeting Markets

Chapter 8 of MKTG: Principles of Marketing focuses on Segmenting and Targeting Markets. I would say that Footlocker uses a Concentrated Targeting Strategy because although there are many brands of sneakers, accessories, and apparel sold in footlocker, Nike has the closest relationship with Footlocker. For advertising, Footlocker focuses a lot on promoting new styles and sneakers that are of the Nike brand.

Nike would be Footlocker's niche, this is the brand that is focused on the most. Footlockers appeals to young men and women, ages 12-20, who are preferably athletic. Footlocker doesn't advertise much, only when there is a major sports event coming up, and they always make sure to feature what sneakers are coming out on their instagram page.

Ch. 15- Marketing Communications

Chapter 15 of MKTG: Principles of Marketing focuses on Marketing Communications. Some ways that Footlocker promotes themselves are during peak seasons like when School is approaching or there is a major sports event like the Super Bowl or All Star Weekend, they have Sports stars advertise for them in commercials and such as described in an earlier post. One thing that sets Footlocker apart is their competitive advantage, one of which is that they have a Triplex store on 34th street, a very bust tourist shopping destination in NYC. The store includes Lady Footlocker, Kids Footlocker, and Footlocker, there are three different inventories in the store and you can get something for the family in the same store. the importance of the three different inventories is that something that you can't find in Footlocker for a woman or a child, there is Lady Footlocker and Kids Footlocker right there at your disposal. One store may also have other colors in a specific shoe or clothing also.

Footlocker's biggest competitor is sneaker store Finishline, which is right across the street from the triplex store in Macy's. They are located on various floors of Macy's but they only sell sneakers, while the Footlocker's Triplex Store sells apparel, socks, sneakers, and sneaker cleaners.

Ch. 10 - Product Concepts

Chapter 10 of MKTG: Principles of marketing focuses on Product Concepts.

All products in Footlocker would be considered consumer products because they are bought to satisfy an individual's personal want or need. I would also say that most of the products at Footlocker are shopping products, most people who shop at footlocker know what sneaker they want, they just need their size and sometimes they're trying to decide on a color. Foolocker sells many brands of sneakers, in a way sneakers are Footlocker's product item, the different brands are the product line, and all other items like T-Shirts, socks, shoe cleaners, and Sweatsuits are part of the product mix.

Ch. 17 - Personal Selling and Sales Management

Chapter 17 of MKTG: Principles of Marketing focuses on Personal Selling and Sales Management.

Foot locker, INC. has a program for Customers called the VIP Program. It's a program where if you sign up for it, you receive coupons, first looks on new releases, access to exclusive products online, a birthday discount, and everything for FREE. It benefits both the company and the customer, it is building revenue for the company because when a customer knows they are getting a deal constantly, they will keep buying and that means more money for the company. It benefits the customer because they can get money off of most products that other customers do not have the luxury of. Also, when you spend a certain amount of money, you get a coupon, this drives customers to buy more so they can save more.

Ch. 16 - Advertising, Public Relations and Sales Promotion

Chapter 16 of MKTG: Principles of Marketing focuses on Advertising, Public Relations, and Sales Promotion. Since Foot locker carries many brands that are in competition, they don't advertise as much as the individual brands they have, do. They've gotten together with Adidas and Nike to produce advertisements. Foot Locker, INC. has advertising campaigns when they feel it is necessary. For example, in August, when students are going back to school, is the perfect time for Foot locker to advertise to young people about their newest products.

When they do advertise, Foot locker pulls people in by including some of the most famous basketball players and creating a series of commercials that tie together to tell a story but to also showcase their products. In August 2014, Foot locker released videos for their Short Memory campaign, featuring basketball player James Harden. James Harden's whole outfit could be purchased at foot locker, from his Nike t-shirt to his Nike tech sweatpants, to his Huaraches sneakers. A little more than two weeks after its release, it had 7.7 million views and was the most watched campaign to that date.

Here's the ad:

If it is not viewable, here's the link: http://youtu.be/he2t3zNCEgk

Sources

http://www.visiblemeasures.com/2014/08/18/here-is-foot-lockers-strategy-for-branded-video-success/

Ch. 14 - Marketing Channels and Retailing

  Chapter 14 of MKTG: Principles of Marketing focuses on Marketing Channels and Retailers. Foot Locker has 3,546 stores worldwide, but here in NYC there are about 50 locations. One of which is the headquarters, located on 34th street between 7th and Broadway, this store is unique because it is a Triplex, which means there are three stores in one. They include Foot Locker, Lady Foot locker, and Kids Foot locker.

Foot Locker in Bradford, West Yorkshire.

Foot Locker in Cleveland, Ohio.

Foot Locker in Canada.

  I went to visit the triplex on multiple occasions, but this time, I went for a purpose, I was there to observe my surroundings. I came to find that there is in fact a retailing mix there, which are the 6 P's (Product, Place, Promotion, Price, Presentation, Personnel). In the store, you can find many brand sneakers and accessories like Nike, Converse, Adidas, Timberland, Saucony, ASICS, Under Armour, New Balance and Puma. The accessories include T-Shirts, Sweat shirts/ pants, Socks, Sneaker/Boot Cleaners across almost all brands. The sales associates are trained to know all of the merchandise by name, model, and color. They were able to convert sizes with Tourists without any problems, which breaks down the barrier for tourists, allowing their shopping experience to go smoother. The location of the triplex is very convenient, it is in the heart of NYC. Almost every train line is within blocks of the location, Penn Station, Times Square, and the Port Authority Bus Terminal are all very close to the triplex. Many people come to this location because although the three branches are in the same store, they have different inventories. This means that although Foot locker may not have it, it can be available in Ladies or Kids, depending on what you are looking for. You can make orders from the store to be delivered to pick up from the store or delivered straight to your home, layaway is also available to customers. Also available for the comfort of the customers is Foot locker Network, which is the Music network that Foot locker provides in their stores. There are 4 flat screen televisions showing the latest music of most genres for the customers viewing pleasure. Foot locker made sure to be eclectic in choosing which music to play so that everyone could enjoy the music, and also to convey the message that everyone is thought about in Foot locker.

  Overall, even though Foot Locker is mostly busy all of the time, they make sure to attend to customers and help them effectively.

Ch. 6 - Consumer Decision Making

  Guests come into Footlocker for a variety of reasons. They could be coming in for sneakers for running, fashion, basketball, boots for inclement weather, and apparel to match it all. Footlocker has managed to get many consumers attention by having events including basketball stars who have a relationship with the company and have some merchandise in the stores. 

   Recently for All Star Weekend 2015, which was held at Madison Square Garden, Stephen Curry, James Harden, and Kyrie Irving all appeared at the Footlocker triplex, which is also Footlocker's corporate building. They arrived all on separate days of the weekend for about an hour and signed merchandise for fans, James Harden even bought a few things and interacted with the employees. This gives the consumer the thought that they should, in fact, shop at the same places where their favorite basketball player's sneakers or hats are sold. It gives the consumer the idea that since basketball stars are advertising and wearing things from Footlocker, they should do the same. 

                                       

Ch. 5 - Developing a Global Vision

   Headquartered in NYC, Foot locker operates 3,473 athletic retail stores in 23 countries in North America, Europe, Australia, and New Zealand under the brand names Foot locker, Kids Foot Locker, Footaction, Lady Foot Locker, SIX:02, Runners Point, Sidestep and Champ Sports. In addition, Foot Locker’s franchise partners operates 73 stores in 9 countries, bringing their store count to 3,546 in 30 countries.

    With international locations, as opposed to just locations in North America where the company started, it allows Foot locker's revenue and earnings to increase. It also allows people with the same love for sneakers to all experience the eclectic brands that are included and sold at Foot locker. More opportunities for business arrive when there are more locations of a brand and they are easy to get to.

Foot Locker's Locations in North America 

Ch. 4 - The Marketing Environment

Chapter 4 of MKTG: Principles of Marketing focuses on the The Marketing Environment of companies.

Foot Locker's Target Market are usually young men and women, ages 12-20, who are preferably athletic. Foot locker supplies athletic apparel and footwear for men and athletic footwear for women. Foot locker has put in place a 2 to 5 year plan that will expand their stores and provide even better customer service for the people. This company proves different from others because they provide a large diverse amount of brands, including Nike, Adidas, and Under Armour. Also, Foot locker's inventory tends to exceed any other stores, making customers come to Foot locker because they know what they are looking for is most likely there. By 2016, Foot locker, INC. action plans include target earnings to be 7 percent of sales, they also want to raise sales by square foot. These goals came about when the company already reached most of their goals from their 5-year plan in 2010. Foot locker's main focus is to keep the customers happy and to stay apart of the Fortune 500, that is by setting higher goals for themselves every time they've accomplished one goal.

Ch. 3 - Ethics & Social Responsibility

   Chapter 3 of MKTG: Principles of Marketing focuses on Ethics and Social Responsibility. Foot Locker has held up their end of the bargain when it comes to social responsibility and doing right by society. In June 2010, Foot Locker collaborated with Veterans Advantage to put in place a 20% discount in honor of all who serve or have served for our nation and their families. The discount would be on all athletic apparel and shoes and at all of Foot Locker's subsidiaries as well (Champs Sports, Eastbay, Lady Foot Locker, Foot Action and Kid's Foot Locker). The discount can be used in stores, by phone, and online. "Foot Locker is proud to carry on the spirit and tradition of supporting our veterans, and in so doing, honor them by providing savings to encourage their active lifestyles," said Ken C. Hicks, Chairman & CEO of Foot Locker, Inc.

   

   In 2011, Foot Locker, Inc. also launched the Foot locker Scholar Athletes Program, where each year 20 students who are doing exceptionally well in school and who are also actively involved in sports and their community, are awarded $20,000 towards their college education.

Foot locker believes strongly giving back to the community and helping those who show passion in sports, thats where the corporation's social responsibility lies.

Sources

http://www.csrwire.com/press_releases/29818-Foot-Locker-Inc-Thanks-Those-Who-Serve-With-New-Discount-Program-for-U-S-Military-Veterans-and-Their-Families-

http://www.prnewswire.com/news-releases/foot-locker-foundation-inc-unites-athletic-industry-for-13th-annual-on-our-feet-fundraising-gala-229072921.html

Ch. 2 - Strategic Planning for Competitive Advantage

Foot Locker's mission statement is to be the leading global retailer of athletically inspired shoes and apparel. With their many Strategic Business Units (SBUs), such as Foot Action, Kids Footlocker, Lady Foot Locker, Champs, Eastbay, and Foot Locker International, Foot Locker is recognized as the leading footwear retailer in the United States.

Footlocker SWOT Analysis

Strengths: Foot locker has very strong business relationships. For many years, Foot locker has maintained a tight relationship with NIKE. In fact, each of Foot Locker's SBUs purchased between 39% and 80% of total merchandise from this single vendor. The companies help each other because while Nike is thriving, Foot locker is thriving also. Foot locker also has a strong executive team, they are well experienced. That is imperative in order to out-strategize the competition while still achieving corporate goals and objectives.

Weaknesses: One of Foot locker's weaknesses is that there has been a decline in foot traffic in it's mall-based stores. This has resulted in many store closings. Management noted in their most recent earnings report that by the end of this calendar year, 40 more store will schedule to close. Another weakness is high employee turnover. This is occurring because they have well over 40,000 employees, whom are mostly getting paid minimum wage.

Opportunities: Foot locker definitely has the opportunity to improve. One way they could, is to be more diverse in manufacturers. They can build relationships with smaller brands, which will attract more customers and build profit.

Threats: One of the threats against Foot locker, like any other company is COMPETITION. Just a small portion of inventory is exclusively sold at Foot locker, so the fact that customers can go elsewhere to get the same product is already a red light. It is for that reason that store location, reputation, and advertising play such a huge role in the company's success.

Ch. 1 - Overview of Marketing (Brief History and Mission Statement)

Foot Locker, INC.'s Mission Statement

"To be the leading Global retailer of athletically inspired shoes and apparel."

 

History of Foot Locker, INC.

In 1963, the F.W. Woolworth Company purchased the Kinney Shoe Corporation and operated it as a subsidiary. In the 1960s, Kinney branched into specialty shoe stores, including Stylco in 1967, Susie Casuals in 1968, and Foot Locker on September 12, 1974 (in Puente Hills Mall in City of Industry, California.)

Woolworth also diversified its portfolio of specialty stores in the 1980s, including Afterthoughts, Northern Reflections, Rx Place, and Champs Sports. By 1989, the company was pursuing an aggressive strategy of multiple specialty store formats targeted at enclosed shopping malls. The idea was that if a particular concept failed at a given mall, the company could quickly replace it with a different concept. The company aimed for 10 stores in each of the country's major shopping malls, but this never came to pass as Woolworth never developed that many successful specialty store formats.

In 1988, the F.W. Woolworth Company incorporated a separate company called the Woolworth Corporation in the state of New York. The Woolworth Corporation was responsible for the operations of the Foot Locker stores, among the other specialty chains operated by Woolworth's. One of its first moves was the acquisition of Champs Sports and to rename itself the Woolworth Athletic Group.

During the 1980s and 1990s, the F.W. Woolworth Company’s flagship department store chain fell into decline, ultimately culminating in the closure of the last stores operating under the name of Woolworth’s in the United States in 1997. Deciding to continue aggressive expansion into the athletic business in the following years, the company acquired Eastbay in 1997, which was the largest athletic catalog retailer in the United States, as well as subsequent purchases of regional storefront retailers Sporting Goods (purchased in 1997) and The Athletic Fitters (purchased in 1998). After 1997, Wal-Mart replaced Woolworth in the Dow Jones average. The Woolworth Corporation remained the parent company of Foot Locker, and in 1998 it changed its name to "Venator Group, Inc." By the 1990s, Foot Locker was responsible for more than 70 percent of Kinney Shoe Corp. sales, while traditional shoe retailer Kinney was in decline. Venator announced the shuttering of the remaining Kinney Shoe and Footquarters stores on September 16, 1998.

On February 12, 1999, A federal jury in Austin awarded $341,000 Thursday to a former Foot Locker shoe store manager who said the company systematically discriminated against its African American employees by offering more opportunities for promotions to white managers.

As the “Foot Locker” brand had become the Woolworth/Venator company’s top performing line, on November 2, 2001 Venator changed its name to Foot Locker, Inc. On November 19, 2004, Foot Locker announced that its quarterly profit rose 19 percent, helped by stronger sales.

In 2004, Foot Locker acquired the Footaction USA brand and approximately 350 stores from Footstar for $350 million.  On April 14, 2004, Foot Locker Inc. announced that it agreed to buy about 350 Footaction stores from bankrupt Footstar Inc. for $160 million to expand in urban areas.

On January 10, 2005, the company announced that Nick Grayston was promoted to President and Chief Executive Officer of its Foot Locker U.S. division, succeeding Tim Finn who retired from the company.

In 2007, Foot Locker joined with schoolPAX to launch the Foot Locker School Rewards Program, designed to provide charitable donations to schools who sign up and shop at Foot Locker with a custom-coded keytag or school code.

In 2011, Foot Locker joined Do Something for the Foot Locker Scholar Athletes program, which honors high school athletes for demonstrating academic excellences as well as flexing their hearts on their sports team and in their communities.

On June 26, 2012, Foot Locker celebrated their 100th anniversary of trading on the New York Stock Exchange by ringing the Closing Bell for the trading day. The 100 year celebration reflects the F. W. Woolworth Company, which changed its name to Venator in 1997, and finally Foot Locker in 2001.

In 2013, the company acquired the German retailer Runners Point Group.

Foot Locker has steadily risen in Fortune 500 rank, from 446 in 2011, to 435 in 2012, 413 in 2013, and 400 in 2014.