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KICK START YOUR DAY

WITH GOLDSTAR
iReport on
How can GoldStar make an Epic
Comeback to Nepalese Market?
Submitted By:
Umesh Gurung Shrestha
Submitted to:
V-chitra
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TALKING ABOUT GOLDSTAR
GoldStar is more than just a pair of shoes. Its Truly the Nepali brand, home made in
Nepal. Although it was the forerunner in Nepalese shoe industry and dominated the market
for several years, the scenario is not the same now.
GoldStar is looking forward to reclaim its lost marketing avenues, and at the same time it
would like to revive the brand in its own homeland. Among all the brands in Nepalese shoe
industry, GoldStar might be the most distinct one compared to its competitors. Positioned as
Value for Money brand, GoldStar was launched in 1990 as a mid-priced product in
Nepalese shoe market which soon expanded its business successfully to include Indian
markets too.
In spite of its glorious history and success back then, today GoldStar sounds like echoes of
past. In the midst of brand proliferation, brand counterfeiting, and ever-changing trends in
fashion industry, GoldStar missed its steps to keep up with the gameboth in business and
consumer behavioral aspects.
As GoldStar aims at making a comeback to Nepalese market, the major issue is to reinforce
and revitalize its brand image and penetrate the young consumer segment. But the universal
and obvious question remains: How do they do it?
This iReport (Interim Report) reflects on the similar circumstances faced by some foreign
brands in the shoe industry as well as takes into consideration the brands from other
industries.
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PRECEDENTS
And we all live on the same planet where the great brands had their own share of sales and
marketing woes. GoldStar is no exception.
ADIDAS
Portmanteau of its German founder Adi Dassler, Adidasa company with the lions share
in athletic footwear market in 1980 and, apparently, a successful marketing strategy,
stumbled and let its market advantage sneak away. Within a decade thereafter, Nike took
over the rein and Adidas was confined to just two percent of the U.S. Athletic Shoe Market.
(USA Today, 1991).
While Adidas was enjoying little competition in the market, it overlooked the need to
create barriers to entering the market. As a result, firms like Nike and Reebok evolved and it
was too late for Adidas before it could come out of its marketing myopia. Adidas lost its
market leadership.
Making a comeback required Adidas to undergo several changes. Production was
outsourced. Number of product lines was reduced. Its now heavily being involved in
sponsorship as a part of its sport marketing strategy. Guerrilla marketing is adopted. Rather
than trying to cover the entire country, Adidas has decided to focus on key metropolitan
areas in the US. Adidas acquired Reebok in 2005.
NIKE
Nike started out aggressively to dominate the US market by displacing Adidas. Revenues
boomed till 1997. However, in 1998, things began to change. Adidas revitalized.
Competition amplified. Nikes sales declined.
Nike dealt with this situation by getting back to the basics. It focused on innovation,
developed new product lines, created sub brands, and deemphasized its over-swooshed
Swoosh.
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VOLKSWAGEN BEETLE
VW Beetle is an instance from entirely different industry. Endorsed by Adolf Hitler in
Germany in the 1930s, it was a challenge to sell this Nazi car to the post-war Americans.
The car looked funny and was named after a bug. It was small and slow. However, the car
proved to be an ugly duckling.
It was not until late 1950s when the legendary advertising agency renowned for triggering
Creative RevolutionDoyle Dane Bernbach (DDB) destroyed the status quo for automobile
ads with the Greatest Print Campaign of All Time: Volkswagen Think Small. The ad may
not seem earth-shattering now as we have all seen our share of great advertising since then.
But DDB ran this campaign against the flow when all other car companies were selling the
American Dream of new shiny big acquisitions.
VW Beetle became an instant hit in the USA. DDB created an honest voice for this odd-
looking little car and turned its weakness into strengths. Sales boosted. Lifetime brand
loyalty was built.
APPLE
When it comes to Apple, we Think Different. Apple is the #1 Brand today in the world.
But it was just two months away from bankruptcy before Steve Jobs returned to Apple as the
iCEO (Interim CEO) after 12 years in 1997. It was Jobs job to save Apple. Lee Clow of
TBWA/Chiat/Day came up with this brilliant idea, Think Different. The commercial
didnt talk about computers or Macs. It showed Einstein, Gandhi, Lenon, Dylan, Picasso,
Edison, Chaplin, King, to name a few. In 2001, iPod was launched. Apple was back in the
game.
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PLIGHT OF GOLDSTAR
On the online survey conducted by the author of this iReport, it was found that GoldStar still
holds the title of Truly the Nepali Brand, which is a good thing. Peoples sympathy is still
with GoldStar. However, GoldStar seems to have taken that title for granted. It did nothing
to leverage on that perception held by the market.
GoldStars market is severely impacted by the Fake GoldStars and Cheap Imitations of the
product. For instance, GoldStars brand can be forged as GolfStar and those people who
cant read can identify no difference between GoldStar and GolfStar at all. Later when that
GolfStar wears out soon, which it certainly will, GoldStar bears the slander.
GoldStar is available in only one design: Outdated design. Not many want to be un-
fashionable. GoldStar missed the boat. Research shows that Design and Style influence the
purchase decision of the customer more than durability feature.
GoldStars current market base can be categorized into three: Loyal Customers, Senior
Citizens, and Lower Class People. On the top of it, the entire demand is pulled by these
customers. GoldStar should be grateful towards them.
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WHAT NOW?
Is there any way for GoldStar to make a comeback? Answer: Yes! Adidas says Impossible
is Nothing.
1. GoldStars marketing is currently down to Nil. Its impossible to see the sales curve
moving upward without marketing the product. GoldStar should make significant
increment in its marketing activities.
2. Clutter is the major issue. A typical ad will pass silently like a ship at night. Puffery
should be avoided. GoldStar needs to go against the flow to break this clutter. VWs
Classic ads of the 1960s can be a good inspiration.
3. Retain the existing customers by creating and nurturing them as brand ambassadors,
rather than attempting to attract the attention of those who are uninterested in the
current product.
4. Reach out to new customer group to build Brand Equity. The new market segment
may represent potential growth for the brand. New market means new marketing
programs.
5. Get a Symbol or Logo for GoldStar. Brands with visual elements have higher recall
value; its a no-brainer.
6. Find the best creative advertising agency and dont try to rein their creativity.
7. Revitalize the brand with a new distribution strategy. Push Strategy should be used.
GoldStar shoes are rarely displayed on the shelves by the distributors. Trade
promotion is more essential than Consumer Sales Promotion.
8. Style and design are the primary attributes customers consider while buying shoes,
followed by product quality and price respectively. The shoes should be available in
multiple designs and colors.
9. Make the advertisement itself valuable. Essentially, the ad should start with what
somebody wants, promise to solve their problem, prove that the promise can be
delivered, and then make an irresistible proposition.
10. GoldStar can obtain the contract for supplying the footwear to the entire people in
the organization. For instance, police organization, military or police schools,
security service organizations, etc.
11. Create a buzz with Guerrilla Marketing.
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SUMMING UP
GoldStar in spite of being the premier in Nepalese Shoe Industry hasnt really been able to
catch up in Nepal. Other brands of shoes are more popular among the people and they have
been outselling it.
But every cloud has a silver lining. GoldStars popularity and sales level can do with the
boost. The best way to achieve this would be some serious brand -building.
Brand building starts with brand elements, both visual and verbal. The image of brand has to
be improved and people must be made aware of its presence. Catch phrase has to be
developed to serve as an instant reminder of GoldStars glorious history. We all know
Nikes Just Do It really did it!
GoldStars vision is to make an epic comeback to Nepalese market. The company will
continue to produce the quality products that have been provided in the past (and still today).
But more importantly, GoldStars fate depends on its ability to meet the ever-changing
needs of the customers, through product redesign and innovation.
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REFERENCES
Bencivenga, Gary. The Bencivenga 100 Seminar, (Accountable Advertising, Inc.,
2006)
Li, Yajie (Jessie). New Balance: College Students Selection of Sports Shoes,
(Boston University)
Ogilvy, David. Ogilvy on Advertising, (Prion, 2003)
Sullivan, Luke. Hey, Whipple, Squeeze This: A Guide to Creating Great Ads, Third
Edition, (John Wiley & Sons, Inc., 2008)

ONLINE RESOURCES
http://archive.ventzine.com/blog/umes-shrestha/goldstar-life
http://www.newbusinessage.com
http://thinkingouttabox.wordpress.com









Note: The extensive version of this iReport will be submitted after the Internship.