After more than six years with AOR Arnold International agency, New Balance is looking for a new global creative agency. According to Arnold Worldwide, “New Balance has decided to move towards greater consolidation across their roster of agencies.” And a New Balance client rep reported that the company is reviewing its agency roster to “evaluate future agency structure” and review their portfolio. If it sounds like the reasons are unclear, it’s because they are. What we do know is that the review is being managed by consulting firm R3 Worldwide. We also know that New Balance is looking to increase its share of the global athletic shoe market, particularly running shoes.

1. NEW BUSINESS PITCH
Always in Beta

2. NAME BRAND PITCH TYPE
Creative
MARKET DATE
July 12 , 2016
The Data You Need to Win This Pitch
DESCRIPTION
After more than six years with AOR Arnold International agency, New Balance is looking for a new global creative agency. According to Arnold
Worldwide, “New Balance has decided to move towards greater consolidation across their roster of agencies.” And a New Balance client rep reported
that the company is reviewing its agency roster to “evaluate future agency structure” and review their portfolio. If it sounds like the reasons are unclear,
it’s because they are. What we do know is that the review is being managed by consulting firm R3 Worldwide. We also know that New Balance is looking
to increase its share of the global athletic shoe market, particularly running shoes.
New Balance parts
ways with AOR
Arnold International
th
Global

3. Client Profile / Market
Founded in 1906 as New Balance Arch Company (to
make arch supports), New Balance Athletic Footwear
runs on its everyman (and everywoman) appeal.
Besides making and selling men's and women's shoes
for running, cross training, basketball, tennis, hiking,
and golf, the company offers fitness apparel and kids'
shoes and owns leather boot and shoe maker
Dunham. Other brands include Aravon shoes for
women; PF Flyers lifestyle shoes; and Brine and
Warrior Sports lacrosse, field equipment, and apparel.
It sells its footwear in its own stores and those of
specialty retailers. New Balance is known for its
selection of shoe widths.
FINANCIAL OVERVIEWCOMPANY BACKGROUND
MAIN COMPETITORS
2015 Sales (mil)
2015 Employees
Employee Growth Percent
Assets (mil)
Net Income Growth Percent
Sales Growth Percent
1,712.651
2,200
-
-
-35%
2.4%

4. The Footwear Market
$76.1 Billion
COMPARED TO 2014
7%
- Euromonitor.com -
FOOTWEAR MARKET’S
VALUE GREW
- Euromonitor.com - 62%
Athletic Footwear
38%
Non-Athletic Footwear
MARKET SHARE
VALUE IN 2015
FOOTWEAR MARKET

5. 3000
Athletic Footwear
40
30
10
0
20
2015 ATHLETIC FOOTWEAR SALES GREW
8%
COMPARED TO 2014
BRAND SHARE OF RUNNING SHOE BUYERS, BY GENDER IN 2014
SauconyNew Balance AdidasBrooksNike Asics
Males Females Total U.S.
15000
12000
6000
0
9000
2015 ATHLETIC FOOTWEAR GENERATED
$17.2B
COMPARED TO 2014
MOST STOCKED ACTIVEWEAR BRANDS: SIZE OF OFFERING
ReebokNew Balance
Under
Armour
NikeAdidas Asics

6. Fast Food industry in numbersAthleisure: Activewear is Fashionable
“The growth of athleisure has really been tied to the notion of embracing comfortable, well-designed, casual fashion that is both functional and fashionable. This trend is
clearly being seen in the footwear market where the popularity of stilettos and formal dress shoes has decreased just as the athleisure trend has begun to take hold.”
Sandy Silva, Fashion Industry Analyst @The NPD Group
ACTIVEWEAR APPAREL
GENERATED
$43.6 BILLION
SALES IN 2015
ACTIVEWEAR SALES
INCREASED BY
• • 16% • •
FROM 2015
ATHLETIC APPAREL
NOW ACCOUNTS
• • 28% • •
OF CHILDREN
CLOTHING
ATHLETIC APPAREL
NOW ACCOUNT FOR
• • 17% • •
OF TOTAL CLOTHING
RETAIL MARKET
MILLENNIALS MAKE UP
• • 45% • •
OF TOTAL SALES IN THE
ACTIVEWEAR MARKET

7. 30%
20%
10%
Fast Food industry in numbersClassic Models Driving the Athletic Footwear Category
+26%
MEN
- 5%
35%
25%
5%
- 10%
15%
Casual
Athletic
Walking Running
Cross
Training
Classic Hiking
PERFORMANCE AMONG MAJOR ATHLETIC FOOTWEAR CATEGORIES 2014 vs 2015
0%
Dollar % Change
+69%
WOMEN
+29%
CHILD
•
•
•
•
•
•
•
•
•
CLASSIC MODELS’ SALES GROWTH

8. New Balance
WHAT’S ON NEW BALANCE’S AGENDA
PERFORMANCE RUNNING TECHNOLOGY WOMEN
NEW BALANCE’S REVENUES
IN 2015 WERE CLOSE TO
• • $8 BILLION • •
• MADE IN THE USA •
NEW BALANCE MANUFACTURES AROUND
• • 25% • •
OF ITS FOOTWEAR IN THE U.S.
NEW BALANCE’S REVENUES
HAVE GROWN
• • 15% • •
ON AVERAGE
NEW BALANCE’S MEDIA
SPENDING IN 2015 WAS
• $34.2 MILLION •

9. Fast Food industry in numbersPerformance Running
The pact makes New Balance the group’s official footwear and apparel
partner and the sponsor of all New York Road Runners’ events,
including the TCS New York City Marathon.
Rob DeMartini, CEO and President @New Balance
“What this says is that this is a brand that’s very relevant in the running
space — on par with anybody else that’s here; Properties like the New
York Marathon legitimize you in the running world.”
The pact makes New Balance the group’s official footwear and apparel
partner and the sponsor of all New York Road Runners’ events,
including the TCS New York City Marathon.
New Balance will also work together with NYRR on the opening of the new
NYRR running center. The running center will serve as the hub for NYRR
runner services and will feature an exciting New Balance retail component.

10. Fast Food industry in numbersA Forward-Looking Brand Focused on Technology
NEW BALANCE
ZANTE GENERATE
New Balance presented the
first 3D-printed shoe at the
2016 Consumer Electronic
Show in Las Vegas.
NEW “DIGITAL
EXPERIENCE” DIVISION
at the International
Consumer Electronics Show
(CES) in Las Vegas a new
division dedicated exclusively
to connecting consumers
with the technology they
desire to improve their
athletic performance.
Digital Sport will initially
focus on three product
categories: devices,
embedded technology, such
as intelligent sensors
integrated into New Balance
footwear and apparel; and
performance sport, including
sports equipment micro-fob
that senses, analyzes and
provides feedback on the
athlete’s performance.
The company will partner
with leading digital, hardware
and software companies,
including Intel, Google,
Strava and Zepp, to
incorporate smart
technologies, optimized for
wearable consumer products,
into footwear and apparel
lines across a variety of
sports.
The division’s inaugural
product will be a smartwatch
that will enable athletes to
work out while untethered
from their smart phones.

11. Fast Food industry in numbersWomen
“The message we’re trying to bring to her is that we’re working just
as hard on performance products for women as we are for men.”
Rob DeMartini,
CEO and President @New Balance
On September 2015 New Balance launched NB women, a comprehensive,
cross-category, head-to-toe collection of products that offer athletic female
consumers the performance and style they demand.
Launched in May ‘14, GNO is an app that helps women to create and discover
group runs and fitness activities, and invite friends to join in the fun.
Readers are encouraged to experience the brand’s augmented reality
shopping experience by downloading the Blippar app to “Blipp”
designated pages to unlock exclusive content.

12. FEMALE
RUNNERS
• • •
• • •
QUICK DEFINITION
Many Female Runners see running as an everyday activity.
Running is more than just a way to stay physically fit and healthy;
it has become a lifestyle. Runners often share knowledge,
practice tips, eating habits and values. They enjoy outdoor
activities and are willing to participate at sports events like
marathons.
RECREATIONAL
ACTIVITIES
BEAUTY &
WELLNESS
FASHION
READING
HABITS

13. 59%
FEMALE RUNNERS
Compare the Female Runners Demographic
with New Balance’s Female Audience
New Balance’s
female audience
overlaps with our
Female Runners
demographic by 65%
in interests,
including:
Recreational
Activities, Beauty,
Reading and Fashion

14. NEW BALANCE’S FEMALE
AUDIENCE CROSSOVERS
Just like every female runner, New
Balance’s female audience loves to
get outside and practice some of
their favorite activities.
Backpacking is the New Balance
woman’s favorite outdoor activity,
while Female Runners’ top activities
include hiking and walking.
New Balance women are much more
interested in Sport Events (182 pop),
especially The Boston Marathon and
two of female runners’ favorite
events: Nike Women Races and Run
Disney.
TOP ACTIVITIES
HORSE
RIDING
FEMALE RUNNERS:
RECREATIONAL ACTIVITIES
HIKING WALKING KNOW
MORE
TOP ACTIVITIES
NIKE WOMEN
RACES
THE COLOR
RUN
RUN
DISNEY
KNOW
MORE
OUTDOOR
ENTHUSIASTS
170.9POPULARITY
SPORT
EVENTS
175.3POPULARITY

15. NEW BALANCE’S FEMALE
AUDIENCE CROSSOVERS
FEMALE RUNNERS:
BEAUTY & WELLNESS
New Balance’s female audience
is beauty and wellness aware,
and, of course, they are
physically active. Looking at
their favorite fitness activities
we found a high interest in
CrossFit.
As Cosmetic Connoisseurs, they
make extensive use of high
quality beauty products from
head to toe. Aveda is their
favorite brand.
148.1
BEAUTY &
WELLNESS AWARE
COSMETIC
CONNOISSEUR
170.8
ACTIVE & FIT
187.5
TOP COSMETIC BRAND
BIRCHBOX
KNOW
MORE
FITNESS ACTIVITY
PILATES
KNOW
MORE

16. NEW BALANCE’S FEMALE
AUDIENCE CROSSOVERS
FEMALE RUNNERS:
FASHION
Fashion is another common interest
among New Balance’s female
consumers.
Beside footwear, they are over
indexing on on Athletic Apparel
(191.5) and they are interested in
fashion Accessories.
Handbags dominate the ranking of
accessories. Despite the high
popularity of Handbags & Purses,
Bolder Band Headbands are their
favorite accessory brand.
Their favorite Sport Retail store is L.L.
Bean
TOP ACCESSORY BRANDFAVORITE SPORT RETAIL
ATHLETIC
APPAREL
169.5
ACCESSORIES
ADDICTED
181.0
KNOW
MORE
KNOW
MORE
HANDBAGS &
PURSES
160.1
FASHION
LOVERS
144.8
REI
KATE SPADE
NEW YORK

17. NEW BALANCE’S FEMALE
AUDIENCE CROSSOVERS
Contrary to our Female Runner
demographic, reading doesn’t
stand out as one of the favorite
activities for New Balance
women (Readers 106.6 pop).
When they do read, however,
they enjoy sports and travel
magazines, and their favorite
website genres are Health, Food
and Daily Deals.
FEMALE RUNNERS:
READING HABITS
BOOKWORMS
GOSSIPERS
WELL- INFORMED
NEWSIES
REACH POPULARITY
READERS
137.4
FAVORITE BOOKFAVORITE MAGAZINESFAVORITE WEBSITES
HEALTH
WEBSITES
185.7
SPORT
MAGAZINES
165.6
NOVELS
171.9
ACTIVE.COM KNOW
MORE
RUNNERS
WORLD
KNOW
MORE
EAT, PRAY,
LOVE
KNOW
MORE

18. CONSUMER
INSIGHTS SUITE
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