Final Dodds Paperreal

Running Head: NEW ERA X J COLE: DREAMERS
Diversifying The New Era Cap Company with the J Cole Dreamer Lifestyle Sneaker
Nicole Birsner, Paige Hammond, Brian Hartrick, and Chris Wheeler
SUNY Cortland
SPM 360-602
Professor M. Dodds
December 8, 2015
NEW ERA X J COLE: DREAMERS
EXECUTIVE SUMMARY
J Coles series of Dreamer shoes is the product New Era needs to launch them into a new
industry. Grom Custom Shoe Manufacturer will produce a stylish, comfortable, and quality shoe
that will highlight the Fly Your Own Flag Campaign. As with any new product, the start-up
costs are going to outweigh the profit. However, New Era is an established brand and by
adjusting some key areas, there is no doubt that the J Cole Dreamer will be flying off the shelves.
The J Cole Dreamer will be released on May 6, 2016. There will be 5,000 pairs of shoes
made available for consumers. Consumers will be able to order customizations of the shoe on
June 11, 2016 and the shoes will be ready on July 9, 2016. The entire cost of the plan including
production and advertising would be $5,795,200.00 for a year. (See Appendix) This cost would
go down year after year because of modifications with advertising and more efficient production.
The Manufacturer Suggested Retail Price for the Dreamer is $105.00.
INTRODUCTION
A. Brief background on company
Starting in 1920 with only 14 employees, the New Era Cap Company was founded by
Ehrhardt Koch with the goal of revolutionizing the headwear business. Koch would be
instrumental in the advancements made in the manufacturing of headwear, combining fashion
and relevance with quality and authenticity. Soon after, Ehrhardt Kochs son, Howard, helped
propel the company by fostering relationships with baseball teams at every level (New Era Cap,
2015).
Utilizing its new relationships with baseball organizations, New Era soon introduced the
world to the iconic 59Fifty fitted cap in 1954. This new innovation, created through the
combination of fashion influences and updates to the sports cap, was the impetus behind New
Eras movement into the forefront of the headwear industry (New Era Cap, 2015).
Howard Kochs son, David, also continued to develop the companys relationship with
Major League Baseball and soon New Era was supplying almost every MLB team and their
minor league affiliates with its signature 59Fifty Cap.
Chris Koch, the son of Howard and the fourth generation of New Era leadership,
spearheaded New Eras signing of a deal with Major League Baseball in 1993 to become the
exclusive supplier of on-field caps. Koch would continue to expand New Eras licensing program
with a partnership with the NFL in 2010, and addition of apparel and accessories to New Eras
repertoire. Through these developments, Koch has helped transform New Era from a
manufacturing company to a sought after global lifestyle brand (New Era Cap, 2015).
B. Product/Service Information
New Eras product lines are overwhelmingly dominated by headwear, as expected from a
company that leads the world market in the product. New Era offers four distinct silhouettes of
caps, each with its own unique technology and purpose: the 59fifty fitted, the 9fifty snapback,
the 39thirty stretchfit, and the knitted winter cap.
The 59fifty is the iconic fitted had that is New Eras premier product. With a classic, firm,
high crown style, this cap has been worn by people from all walks of life, for all different
purposes, from on-field performance to personal style. The 59fifty is also famous for being
extremely customizable, and New Eras website allows users to design their own 59fifty, with
personalized colors, logos, and messages.
The 9fifty snapback has taken on recent success with the emerging popularity of the
snapback hat, which has served as a retro fashion statement as much as a functional sizing tool.
The top selling 9fifty snapbacks offered by New Era are currently the Oakland Raiders and Los
Angeles Dodgers hats made famous by Hip Hop group N.W.A. in the late 1980s (Browse New
Era Caps Hats and Apparel, 2015). The hats are part of a collection that New Era released to go
along with the highly successful film Straight Outta Compton, which documented the rap group,
and are also strong examples of how New Era embraces the hip hop culture that todays youth
are inspired by.
The 39thirty stretch fit cap is a more performance-oriented product, offering a
comfortable fit that allows consumers to still wear the same hat the pros wear on sidelines. New
Eras website has the following description for this product: This is about connecting the athlete
with the fan, whether youre representing a city, or cheering from the stands; this is about
supporting your team on game day and beyond with performance and style (Stetch-Products I
New Era, 2015).
Knitted caps are mainly worn as a winter accessory, however New Eras drive to create
multi-faceted knit caps has further established its presence in the fashion industry. For the trend
setter, the style maven, and the hook-up artist. Make it match or make it your own. Stay warm
and stylish (Knits-Products I New Era, 2015).
In addition to hats, New Era has expanded its product offering in recent years with a
number of fashion apparel and accessories including: T-shirts, hoodies, sweatshirts, socks, belts,
backpacks, lanyards and wallets. New Eras top selling apparel items are its MLB womens tshirts, specifically in New York Yankees and Mets designs. The companys top selling
accessories are its branded crew socks that feature a stitched New Era Flag logo at the top and
come in red, black, and urban camo color ways (New Era Accessories: Wallets, Belts, Iphone
Cases, 2015).
Although New Era is seen mainly as a product-based company, it does offer a few
services to its customers that are unique, namely, customization service for its 59fifty and 9fifty
snapback caps. As mentioned previously, these caps can be completely personalized on New
Eras website or at its flagship stores. In North America, New Era flagship stores are located in
Buffalo, Los Angeles, Miami, New Orleans, New York City, and Toronto. Internationally, New
Era flagships can be found in Birmingham, London, and Stratford in the UK, and in Berlin,
Paris, and Tokyo as well (New Era Flagship Stores I New Era, 2015).
C. Brand Equity Analysis
As the leading manufacturer of athletic headwear, New Era has become extremely
equitable in the headwear industry, developing a reputation for excellent quality and
personalization that has served the company very well. The companys brand equity has allowed
it to sell headwear at premium price points successfully, as the signature cap, the 59fifty, retails
for $34.99 (Browse New Era Caps Hats and Apparel, 2015).
In addition to the standard edition 59fiftys, special collections are routinely released that
increase equity. CEO Chris Koch acknowledged the effectiveness of the limited edition hats in
2010, saying We do have stars design products and we make a limited edition of those and put
them in stores and sell them for $100 or more (Rovell, 2010).
New Era was also a trailblazer in the branding of its headwear, creating a number of
signature brand marks on caps that have helped increase brand equity.
Putting the flag (our branding) on the side of the cap was huge for us. It helped
establish that symbol as an icon and cultural influence. We were the first to do
something like that. Now its very common practice in the headwear industry. We
were also the first to include interior branding. Look on the inside of a cap and
youll see branding along the seams, we strategically added those elements. Its
our attention to detail and small touches that sets us apart from our competition
(Kan, 2014).
ORGANIZATIONAL MISSION / CULTURE
As evidenced by its tremendous growth since the early stages of headwear
manufacturing, New Eras culture and mission have undergone an impressive metamorphosis.
While originally oriented towards supplying baseball caps for on field purposes, the culture of
the company has evolved towards everyday street wear in search of helping its customers express
their individuality.
Although New Era still maintains an impressive licensing program with premier sports
leagues like the NFL and Major League Baseball, and its presence on game day has never been
stronger, the company is continuing to develop tremendous equity as a global lifestyle brand.
New Era CEO Chris Koch elaborated on the organizations branding initiatives in an
interview with urban lifestyle and fashion website Hypebeast.com in November 2014. The
authenticity of our product has won on the field of play. Its about building credibility as a global
lifestyle brand, after being a headwear brand for 90 years, and a clothing and accessory brand for
five years (Kan, 2014).
Koch has also commended the companys ability to cater toward any consumers
personal preference for style. New Era products are a way for consumers to express what makes
them unique, a sentiment evidenced by the companys slogan fly your own flag.
Our brand DNA is rooted in self-expression, and our branding is a visual
extension of that rallying cry. Our branding has a message; its not just about our
logo or a way to slap our name on something. We believe in the message behind
the NE flag. To me a cap is more than a cap, its a way to show your pride and tell
the world something about you. It could be about your team, your city or just your
personal style but it always stands for something (Kan, 2014).
New Era has executed its desire to give consumers a channel of self-expression by
providing an unfathomable amount of different styling options on its premier product, the
59Fifty cap. New York Yankees caps alone account for 128 different styles on New Eras
website. The companys drive towards mass customization and personalization has helped it
become a part of the lifestyle fashion culture, as consumers are able to find the perfect hat to
match their personal style. This strategy has worked for the brand, which has dominated the
headwear industry, holding a 66 percent share of the market for fitted hats (Hat Industry
Statistics, 2015).
Guy Barnett, creative partner at Brooklyn Brothers, the ad agency that handles New Eras
brand management, had the following to say about New Eras positioning in the mind of
consumers: The brand is defined by the people who wear it, not by the company, Mr. Barnett
said. The people are the brand (Elliot, 2010).
The people, often times, are also millennials. New Eras emergence into the lifestyle
realm has produced a keen awareness to the type of consumer that drives unique expression in
lifestyle fashion: young people. New Era believes it has a corporate responsibility to empower
the next generation to truly express their personal style and individuality in everything they do
(Corporate Responsibility I New Era, 2015).
ORGANIZATIONAL GOALS
As New Era evolves into more than just a headware industry leader, the company
continues to seek more creative and innovative ways to connect with its target audience. The
New Era website states: As a generation thriving with inspiration, innovation and selfexpression, we want to fuel the youths passion for the arts, whether its music, fashion, dance,
painting, or writing (Corporate Responsibility I New Era, 2015).
In order to do this, New Era is striving to collaborate with organizations that will
facilitate the companys goal to connect with todays youth and help them express themselves.
We want to offer programs and team up with organizations that expose youth and young adults
to everything that encompasses art and culture (Corporate Responsibility I New Era, 2015).
One organization that New Era continues to partner with is The Boys and Girls Club.
Supporting a number of initiatives that help todays youth realize their dreams is a paramount
goal of the company. Describing its work with this Legacy Partner on the companys website,
New Era claims: Weve partnered with local clubs to help inspire and enable young people,
especially those who need us most, to reach their full potential (Corporate Responsibility I New
Era, 2015).
Although New Era is strongly rooted in the United States sports landscape, the company
is also seeking to continue to build its reputation and appeal on an international basis. Chris
Koch, in the same interview with Hypebeast.com, identified the most important element to
consider in the branding efforts of New Era to be the compatibility on a global scale:
As a global brand we pay close attention to trends not only here in the U.S., but
around the world. Our brand in Japan or Brazil is different than it in North
America but at the core we are a U.S. sport brand. From a global standpoint,
were a part of many cultures like fashion, entertainment, streetwear and action
sports, etc. Our products and branding need to work across multiple platforms
while still being able to cater to specific markets (Kan, 2014).
This goal is evidenced by the companys expansion of the products it offers. While New
Era caps with U.S. sports team logos have been highly successful for the brand, the companys
groundbreaking partnership with Manchester United Football Club this past October has helped
establish further ties overseas. The team recognized New Eras unique ability to produce dualbranded leisure headwear aimed at the clubs 659 million global followers (Club News, 2015).
While global expansion is a priority, New Era also strives to stay true to its American
roots. Guy Barnett of Brooklyn Brothers also offered his thoughts on the companys potential to
be a bastion of American lifestyle in 2010: New Era could be an American Icon around the
world, just as much as Levis and Nike. As part of a lifestyle composed of a cultural mash-up of
skating, hip-hop, baseball and sports that is very American in its outlook (Elliot, 2010).
Another main priority for New Era is diversifying its reputation in North America, as it
has had success overseas but still remains mainly a headwear giant at home.
As you look at our business around the world, we have very strong headwear,
apparel and accessories division businesses. In the U.S., we are really known as a
headwear company, so it has been a challenge for us on the apparel side here.
Were certainly looking at how to grow that business and how to do a better job in
the market segments that were in Chris Koch, CEO (Christmann, 2015).
Arain Jain, marketing professor at University of Buffalos school of management had the
following to say about New Eras attempt at expansion:
All companies seek growth. They cannot survive on a single product, no matter
how successful they are. Eventually, competition comes in, margins shrink, and
profits decline. Margins on caps are small. They can enhance by selling products
in higher price points which are consistent with their technical expertise and brand
equity (Christmann, 2015).
OUR VISION
Our vision is: to diversify the New Era brand and propel it into the forefront of youth
culture and lifestyle fashion by establishing the New Era Dreamer lifestyle sneaker as the
premier product for millennials to express their creativity and individuality in everyday life. With
the addition of a new footwear product, New Era will break the boundaries of its North American
reputation as a headwear only brand and set the stage for tremendous expansion and appeal
towards its desired target market.
A collaboration with one of youth cultures biggest icons, hip hop superstar J Cole, will
establish credibility in this market and position the new product as a groundbreaking
achievement in New Eras quest to broaden its horizons and cement its place as a global lifestyle
brand. In addition to the business aspect and all of the benefits that will come with launching this
new product, New Era sneakers will facilitate the companys mission of helping todays youth
express themselves through art, music, and fashion and ultimately, help them realize their
dreams.
MARKET ASSESSMENT
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Primary Market Research

A survey was administered to 100 people ranging from the ages of 18 to 34, 75% of the
survey respondents were male and 25% were female. In this survey the respondents were asked
to answer some questions involving their preferences for athletic shoes and their familiarity with
New Era products. (See appendix)
The Results (See appendix)
The survey showed that 67% of the respondents wore athletic shoes for everyday use and the
current brands of shoes they owned included Nike, Adidas, New Balance, Reebok, and Asics.
Nike made up 45% of the shoes with Adidas following with 20%. The top two qualities people
liked in their current athletic shoes were style, which made up the answers for 46% of the
respondents. Comfort made up 32% of the responses and was followed by durability at 16%. A
few respondents even mentioned that brand was an important shoe quality. These answers fit in
well with the objective of the Dreamer shoe. The Dreamer will balance style and comfort and be
made out of the best quality materials.
The next part of the survey asked the respondents for information regarding their current
relationship with New Era. 53% of the respondents owned something from New Era and out of
those an overwhelming 84% owned a hat while 15% owned an accessory. According to the
answer of the last questions 45% of the respondents would purchase a New Era shoe and 38%
were not sure.
These results indicate that if New Era were to put out a product those already aware of the
style and quality of the New Era brand would be willing to purchase a New Era shoe.
Secondary Market Research
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When selling athletic shoes, research show that it is clear millennials are the driving force
behind revenue. According to research done by the NPD group, a leading market research
company, adults between the ages of 18 and 34 accounted for 60 percent of all athletic footwear
incremental sales in 2011. Marshall Cohen, Chief Industry Analyst for NPD, had the following to
say about the influence of millennials: Millennials are turning out to be the age segment to
appeal to, even more so than baby boomers, according to Cohen, and thats especially true for
athletic performance footwear (NPD Group, 2012).
Cohen also commented on the nature of consumers usage of athletic shoes in the report.
Running shoes appeal to a wide sector of consumers. Only a third of running shoes are
purchased with running in mind. This leaves the majority of the market buying for casual wear.
Lightweight athletic shoes are a great draw for casual wearers, so when you add colors you have
a winning combination (NPD Group, 2012).
An article in the Washington Post in March of 2015 titled Jumping Through Hoops to
Sell Shoes discussed the booming potential of the sneaker market, and specifically the potential
of the millennial market segment. In the article, the author Drew Harwell claims The booming
sneaker business has become an excellent way to make a profit. The shoes can be made relatively
cheaply and en masse. Harwell also provides insights he received from JP Morgan analysts on
the hype surrounded by new sneaker releases. When the shoemakers roll out newly stylized
shoe designs - as they do increasingly often - they are quickly (and lucratively) hyped by
sneakerheads on blogs and social media. That cycle of vogue keeps buyers interested: "Constant
newness = destination shopping" (Harwell, 2015).
Finally, Harwell also comments on NPDs report, saying:
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Millennials have become a key driver for this market. Americans age 18 to 34
spent $21 billion on footwear last year, a 6 percent increase over the previous year
- and three times as much as the total American footwear sales growth over the
same time, data from market researcher NPD Group show. Even better:
Millennials' purchase of footwear that cost more than $100 also beat the other
categories, jumping 12 percent last year (Harwell, 2015).
NPDs report shows that athletic shoes made for casual wear are a much more flexible
market than, say, basketball shoes, where Nike absolutely dominates the market. Nike and its
subsidiary Jordan Brand commanded 95.5 percent of the basketball sneaker market in 2014, with
Adidas, Reebok, and Under Armour rounding out the remaining 4.5 percent (Badenhausen,
2015). Needless to say, it would be extremely difficult for New Era to launch a new product in
the basketball market.
B. SWOT / PEST ANALYSIS
SWOT Analysis
Strengths
New Era is already an established brand.
The Dreamer fits in with the stylish shoe
trend.
New Era already has a close relationship with
J Cole.
Grom Custom Shoe Manufacturer will take
care of
the production of the shoe.
The Grom Custom Shoe Manufacturer
factories are
strategically located globally.
The Dreamer aligns with the mission and
vision of
Weaknesses
New Era has never marketed a shoe before.
Consumers may only connect New Era to hats.
J Cole may not be the perfect celebrity to make a
connection with the entire target market.
The consumer may prefer a shoe that is focused
more
on durability and not style and comfort.
There may be some customers that believe the
price
is too expensive or not expensive enough.
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New Era.
Opportunities
The dreamer will broaden New Era's product
horizon.
New Era will be able to expand further into
the
global market.
New Era can come up with more shoes styles
that
will fit their mission and vision.
New Era can partner with more charities to
increase
brand equity.
New Era could also work with other musical
entertainers on other shoes.
Threats
A major threat is established competitors like
Nike.
Consumers may have established brand loyalty
to
another shoe company.
Other companies are already providing different
styles
of shoes.
There could be new shoe production technology
that
Grom Custom Shoe Manufacturer had not adapted
yet.
The shoe market is congested.
The strengths of New Era selling the Dreamer shoe mostly comes from the fact that New
Era already has a high brand equity and brand loyalty. The Dreamer encompasses the current
trends of a stylish shoe and ties in J Cole who already has a strong relationship with New Era. It
allows consumers to fly their own flag and choose a shoe that matches their own personal
style. Grom Custom Shoe Manufacturers will take care of the production of the shoe and has
factories close to the production factories New Era currently uses. As shown on the map in the
appendix, the factories are located in China, which is a huge area of manufacturing/production
for New Era, and also in England and in South America.
One major weakness of New Era is that they lack experience in marketing a shoe. The
New Era brand is generally connected to hats which could pose a problem trying to get people to
recognize the Dreamer as New Era, specifically in the United States. In other areas globally New
Era is known for its accessories. J Cole may not be the perfect person to reach out to the entirety
of the target market and some consumers may be hoping more for a shoe that is durable than one
that is stylish and comfortable. According to the New Era Shoe Survey that was conducted by
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Grom Custom Shoe Manufacturers, only 16% of the target market wanted a durable shoe, the
rest were looking for something stylish and comfortable. The Dreamer will still be durable and
high quality, just as all other products of New Era are, it just will not be the main focus of the
shoe. The price may be too steep for some of the target market or possibly to cheap for
sneakerheads. .
The Dreamer will open up New Eras horizon by branching to shoes instead of hats. It
can also help New Era reach out to more of the global market and have it come up with more
styles that would fit in with an individual flying their own flag. The work with the Boys and
Girls Club could open the door to work with other charities which can increase brand equity.
New Era could potentially work with other musical entertainers like J Cole to create their own
customized shoe lines.
Competitors such as Nike and Adidas are major threats because their shoes already have a
foothold in the market, offer many different styles of shoes, and could potentially develops better
technology for manufacturing shoes. However, Grom Custom Shoe Manufacturers is constantly
looking for the next best thing in shoe designing technology which makes our partnership
valuable. Consumers may have brand loyalty to these competitors and may not try the Dreamer.
The final threat is that in the convoluted nature of the shoe market the Dreamer could get lost.
PEST Analysis
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At the moment the most influential political aspect for New Era would be the TransPacific Partnership. The Obama Administration and Nike are hoping to pass new provisions in
the Trans-Pacific Partnership trade agreement that would decrease duties for footwear
companies. This would greatly impact a company such as New Era because last the U.S.
footwear industry paid $2.7 billion in duties last year alone [with] more than $450 million
from TPP partner countries (Brettman, 2015). The political sphere is impacted by the
countries that New Era manufactures, produces, and distributes in. That is why it is imperative
that New Era keep positive relationships with those countries, understand the political
stability of the countries and pay attention to the different trade agreements. The United States
can also impact New Era with new policies, regulations, and taxes that are imposed on the
trade industry.
The main economic influence for New Era would be an economic recession that would
cause sales to drop. New Era could also feel economic pressures for international economies
because of its global market. Price changes in materials and general interest rate changes can
influence the price of manufacturing the Dreamer. New Era will have to keep track of how
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many shoes sold at what point during the year to help ensure that there is the perfect amount
of shoes to satisfy demand.
The New Era Dreamer fits into the social world of the millennial generation. The
Dreamer is a trendy, stylish shoe that further proclaims New Eras Fly Your Own Flag
Campaign. The J Cole Dreamer shoe relates to the millennials and New Era will be able to
utilize means of social media such as Twitter, Instragram, and SnapChat to interact and stay
current with the target audience. Working with the Boys and Girls Club will allow New Era to
grab the attention of the consumers who believe that large companies should be doing their
part for society.
New Era can utilize technological methods to keep track of its customers. Using a
customer database, the organization can track which customer purchased what and what time.
(See Appendix). New Era can also communicate with its customers on social media platforms
to keep the customer engaged and to provide a constant reminder of the New Era brand. The
technological aspects of the shoe production for the Dreamer include a Cloud technology for
the sole and a Dream Catcher for the general shoe technology. Grom Custom Shoe
Manufacturer will use the most current technologies in the shoe production.
C. COMPLETE COMPETITIVE ANALYSIS
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The NPD Group did an analysis of the total athletic footwear brand share for the U.S.
New Eras direct competitors made up 67% of the market share: 62% made up of Nike and 5%
made up of Adidas.
The main direct competitor of the New Era Dreamer Collection would be Nike because
of their greatly established brand and their 62% share of the athletic footwear market. The
company was founded under the name Blue Ribbon Sports in 1964 by Philip Knight and Bill
Bowerman and is based out of Beaverton, Oregon. The company is responsible for more brands
other than Nike including Brand Jordan, Converse, and Hurley. Nike is the leader of introducing
shoe technology into the market such as NIKE AIR, Lunar, Shox, Free, Flywire, Dri-Fit, FlyKnit,
NIKE+, and NIKE Fuel. Nikes brand products are available in eight different sporting
categories. Those categories are running, soccer, basketball, mens training, womens training,
action sports, sportswear, and golf. Nike is known for their high-profile endorsement deals
including LeBron James and Michael Jordan. On top of athletic shoes and clothing, Nike also
produces different equipment such as bags, socks, sport balls, and much more. Nike has over 700
factories in 42 countries which then moves product from 57 distribution centers across a network
of 18,500 accounts and 140,000 retail doors. All of Nike's manufacturing is outsourced to third
parties. Contract factories in Vietnam, China, and Indonesia respectively manufactured
approximately 43%, 28%, and 25% of total Nikes footwear. Nike has five primary distribution
centers in the U.S. located in Memphis, Tennessee (Soni, 2014). The Nike Roshe is in direct
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competition with the New Era Dreamer. The price ranges from $80 to $175 and has many
benefits. Those benefits are solarsoft sockliner for premium comfort, IU outsole with Waffle
pattern for traction, pull tabs at heel and tongue for easy on and off, eyestays embedded in the
upper for a secure, locked-down fit, and padding in the collar for added comfort (Nike, 2015).
Adidas is another direct competitor of New Era. The company started in 1949 in
Herzogenaurach, Germany and is one of the oldest footwear brands in the world (Adidas 2015a).
The longevity of the time Adidas has spent in the market makes Adidas well established and
well-known. Adidas outsources most of its production and work with more than 1,100
independent factories from around the world in 61 countries (Adidas, 2015b). Adidas ZX Flux
shoes would be in direct competition with New Era Dreamers. The price ranges from $85 to
$170 and includes benefits different from Nike Roshe. Those benefits include high-quality
woven textile upper with visible coarse texture, rubber toe bumper, comfortable textile lining,
midfoot support, molded heel cage, and a grippy ZX 8000 outsole (Adidas, 2015c).
Timberlands created its first guaranteed waterproof boot called the Timberland in 1973,
the success of the boot caused the company to change its name. It is a global leader in the design,
engineering and marketing of premium-quality footwear, apparel and accessories for consumers
who value the outdoors and their time in it (Timberland, 2015a). Their products are sold globally
with five distribution centers. Those distribution centers are located in Ontario, California and
Danville, Kentucky in the United States with one European distribution center located in the
Netherlands. The benefit of having a distribution center in the Netherlands allows for Timberland
to get its product to consumers within two days of travel time (Timberlands, 2015b). The boots
cater not only to those who enjoy the outdoors, but also to those who want to wear this style
every day.
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Carhartt is an indirect competitor to the New Era Dreamer. Hamilton Carhartt founded
the company in 1889 in Detroit, Michigan (Marriott, 1992). Carhartt only has one distribution
center located in North America. The company has been operating out of Kentucky for over 80
years. (SurfKY News, 2015). The company tailors to those who work outdoors or want to wear
quality clothing for every day purposes. The Cole target market may look at purchasing a
Carhartt jacket or t-shirt instead of purchasing the New Era Dreamer.
Sperrys, otherwise known as the original boat shoe, were invented in 1935 (Sperry,
2015). The authentic original comes in 13 different colors for $70 each. Consumers buy these
products for the product experience, existing customer base with long-term relationship, superior
fit, comfortability, extensive distribution, and product extension (Carroll, 2012). Sperry products
include a variety of men and womens boatshoes, sneakers, boots, rain boots, and flats. They also
have the option of customization for some of their products. Sperrys provide a dressier casual
option for the Cole target market.
MARKET SELECTION DECISIONS

The target markets name is Cole. Cole is an 18-34 year old of any Ethnic background
and gender, who is looking for a product that lets them break from the everyday norms of
contemporary society. As the largest generation in U.S. history enters adulthood, millennials are
making massive impacts on society and are looking to make more than just a dent on changing
what may now seem normal.Like any other generation, Millennials are far from a uniform
group. In order for us to truly unlock their potential, we need to show an understanding of the
audience, speak in their language, and provide something of value. Millennials have proved that
when engaged in a meaningful way, they will respond (Handley, 2009).
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Cole can be broken down into four different millennial segments. The first is the
Confident group segment. This group is satisfied and mobile, and they advocate for their
generation. In social media, they will post about news that matters to them. They have a strong
point of view but are rarely offensive. They are avid sharers who respond to promotions,
giveaways, and sweepstakes. For them, these actions are less about branding themselves and
more about sharing great deals with others and engaging with the brand in order to receive
something (Powell, 2015). To reach this segment New Era must be additive, consumers must
be aware of the product before they can understand the image the sports marketer is trying to
project (Shank, 276). If you are not adding value to life at that moment then you are subtracting
from the precious time of the millennial generation. New Era needs to build a reputation, as
Confidents only spend after doing extensive research and their need to be certain category
opportunities, such as in health and wellness, footwear, and athletic wear.
The next segment would be the Youthful group. In particular, this segment uses brands
as a status symbol, showing a positive picture about them and mocking those they see as cheap
or out of style. Most posts seen on social media or any platform for that matter seem to be
centered on themselves rather than other people, news, or brands. The social aspect of things is
their platform, where its used to show drama, and discuss everyday things. To reach this
segment new products and product lines are needed simply due to millennials impulsivity to stay
trendy. This segment gets bored easily. Brands must constantly evolve and redefine with them.
Theyre less likely to engage with brands that are considered old and out of style (Handley,
2009).
The third segment is the Dreamers group. This group tends to do things in a similar
way, but will talk a lot more about good and bad experiences with a brand. They do this by either
21
talking about them on a person-to-person basis or will go directly to the source by using social
media or some other platform of communication. They also mock those who are out of style or
outdated. This means they can be a brands greatest supporters or biggest critics depending on
their impulses. In order to reach this audience, brands must set themselves apart and highlight
their individuality and creativity. First, brand awareness must be established. Brand awareness
refers to making consumers in the desired target market recognize and remember the brand
name (Shank, 276). Dreamers are always looking for the benefit in things, especially how they
support their personal goals and identities.
The final segment is the comfort group. This segment takes in the most social media
and openly ridicules brands with which they have had bad experiences. They do not normally
talk about the brands or products they aspire to own, but more about the products they use in
their daily life, like technology, food, and apparel.
In general, the comfort group appears satisfied and proud, though they are very
connected to the online world. They post about everything: life in general, what theyre doing at
the time, conversations with friends, thoughts about the media and products they consume
(Gladstone, 2015). For this group, social media is their method of socializing. To reach this
segment New Era has to be present, even though they are unwilling to engage in things outside
the familiar, mostly due to social networking.
Millennials have an urge to binge and when they see something they want, they tend to
do whatever is needed to fulfill that urge. Millennials incorporate social elements into their
everyday lives that conform to their obsessions, especially when it comes to the footwear
industry. We squeeze shopping into our lunch breaks, and even eat food we dont want to so we
can buy the things we think we need (Vega, 2015).
22
The footwear market is something that millennials cannot get enough of. Their drive to
always get the most innovative and cool thing on the market is why these companies such as
Nike, Adidas, and Under Armour are making the strides they have over the years. Millennials
spent 21 billion dollars on footwear in 2014; a six percent increase compared to the previous year
in 2013, which is triple the total United States footwear sales growth for the same period (Vega,
2015). The Millennial group also has increased its price range over the past few years, especially
in 2014 where sales of footwear priced 100 dollars or greater, surpassed the overall category
growth with a 12 percent increase (Vega, 2015).
Ecommerce is also huge in the Millennial market place. A study done by Neustar that
released a survey conducted with the a group of 1,020 shoppers, who were 50% male, 50%
female and who also spent at least $250 online, purchased online at least four times annually and
owned smartphones. Their research shows that the biggest differences between Millennials and
Baby Boomers are in the following expected online behaviors. Recent research shows that
mobile email opens have surpassed desktop opens for the first time. Smartphone purchases will
also soon surpass desktop purchases, with 49.3% of conversions taking place on smartphones.
According to Neustar, shoppers over 55 years of age reported that they plan to click on more
mobile ads and shop more on mobile devices this year (Burstein, 2015).
23
The above chart shows the five surveyed areas where there were significant differences
between Millennials' and Baby Boomers' expected behaviors. The only area where there was no
significant difference between the age groups was in their likelihood to print physical coupons to
redeem in a retail store. Both Millennials 34% and Boomers 30% expected to print more paper
coupons and redeem them in stores. While all age groups are expected to increase their mobile
activity, there are still some stark differences in how Millennials use smartphones. Shoppers
ages 18 to 25 are 2.5 times more likely to view retail advertising on a mobile device, 24% versus
10% for shoppers 55 and up, while Millennials are three times more likely to use social media on
a mobile device than Baby Boomers 33% versus 11% (Burstein 2015).
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STRATEGY STATEMENT
Primary and secondary data suggest that if New Era were to launch a new product, an
athletic sneaker would be the best option. The target market that New Era holds the greatest
brand equity with is millennials, and research shows that this market is extremely interested in
sneakers. The basketball sneaker market is heavily saturated with competitors and dominated by
Nike, and also doesnt exactly align with New Eras positioning. Lightweight athletic shoes,
however, present a tremendous opportunity for incremental revenue for New Era. New Era needs
to reposition with millennials to become more than just a headwear company, and it is also
crucial to establish credibility through a celebrity brand ambassador, since most segments of
millennials tend to ridicule new products that arent seen as cool. The product will be marketed
as a way for millennials to express their individuality and nonconformity, in order to appeal to
the right segment and differentiate from competitors like Nike who traditionally have owned the
market. Finally, the product will be promoted heavily through social media and online platforms,
as the millennial target finds these avenues to be highly effective in purchase decisions.
SMART OBJECTIVE
The main objective of this marketing plan is to sell 15 million pairs of J Cole Dreamers and all
6,000 limited edition pairs, which will produce $7,095,000.00 in revenue by March 2017.
MARKETING MIX DECISIONS / CAMPAIGN

Product
The New Era Dreamer will be a lifestyle sneaker that combines the comfort and
lightweight feel of a performance athletic sneaker with the fashion appeal and individuality of a
lifestyle shoe. The product will give consumers the ability to customize and represent their own
25
personal style while still maintaining the integrity of a classic New Era silhouette. The materials
of the sneaker will be high quality, as users have come to expect from New Era products. A
highly cushioned sole will be a priority, as the target market has identified this as an important
factor in purchasing (Thomas, 2014). Branding on the Dreamer will be subtle yet effective, just
like on the New Era 59fifty cap, as the product is meant for personalization and large logos can
get in the way. The New Era flag will be located on the tongue of the sneaker, as well as the heel
and inside sole. The product will come in five original colors, black with white trim, white with
black trim, grey with white trim, blue with white trim, and red with white trim.
In addition, there will be three limited edition J Cole Series Dreamers that will be
named after each of his three albums, and the colors will reflect the album cover art for each CD.
The Sideline Story Dreamer will be black and red, the Born Sinner Dreamer will be black
and gold, and the 2014 Forest Hills Drive Dreamer will be Carolina blue. These special edition
sneakers will also have J Coles embossed signature on the tongue.
Price
The dreamer will be sold at an initial price point of $105.00. This price falls in line with
New Eras high brand equity in lifestyle fashion, yet still presents an affordable option for
millenials, who have increasingly shown the willingness to pay over $100.00 for sneakers. The
product will also be somewhat durable because of the high-quality materials, so it will not give
out as easily and have to be sold at a lower price like the Nike Roshes.
The five original Dreamer color ways at the initial launch of the product will all be sold
for $105.00, however, the customization options need to be available as well, since
personalization of the Dreamer will be heavily encouraged. New Era By You, which is New
Eras current online customization service for its 59fifty and 9fifty snapback hats, charges a 24-
26
dollar raise in price for a customized hat, including shipping and handling (New Era By You,
2015). This will carry over to the Dreamers, which will be completely customizable for $129.99.
The customization of the Dreamers will be placed in the same software on New Eras website,
newerabyyou.com. The J Cole Series Dreamers will be limited edition and sold for $200.00.
Place
The Dreamers will be sold at successful retail stores that New Era already has a
relationship with. Footlocker, Champs Sports, and Finish Line, all of which currently carry New
Era products, will also carry the Dreamer. These retail giants accounted for $4.95 Billion in
combined revenue in 2014, and are frequented by our target segment (Leading sporting goods,
footwear and apparel retailers in the U.S., 2015). Of course, the Dreamers will also be available
at all New Era flagship stores around the world, and will also be customizable at these places.
Promotion
The main factor that will influence the promotion of the Dreamer is New Eras
partnership with multi-platinum recording artist Jermaine Cole, or J Cole. When entering a new
market like athletic footwear, establishing credibility among the target segment is crucial,
especially with millennials, who have a tendency to mock brands that dont align with what is
perceived to be cool. Adding J Cole as the brand ambassador for New Era Dreamers will
establish immediate credibility, as millennials believe in his trustworthiness and expertise.
In addition to J Coles personality and vision being a great fit with New Eras, a simple
process was used to identify the perfect brand ambassador for Dreamers. First, entertainment
consumption was researched and music was identified as the leading platform outside of sports
for consumption by Americans. Nielsens 2014 report on music found that 93 percent of
Americans listen to music and spend more than 25 hours a week listening to their favorite songs.
27
75 percent of Nielsens survey respondents also said that they actively chose to listen to music,
which came in even ahead of television viewers at 73 percent (The Nielsen Company, 2014).
A major trend that was identified in the report was the skyrocket of online streaming.
Music is being delivered more and more through online platforms, as online streaming grew 54
percent between 2013 and 2014, hitting a colossal number of 164 billion streams in 2014. This
surge is being led by the younger generation, with R&B/Hip-Hop accounting for 28 percent of
all online streams, the largest of any genre (The Nielsen Company, 2014). Taking into account
millennials growing interest in streaming music, the next step was to identify the leading artists
in this online streaming surge. In 2014, J Coles highly anticipated album 2014 Forest Hills
Drive set a Spotify record for online streams in its debut week, amassing 15.7 million streams
and beating out the record previously held by pop giant One Direction (Nelson, 2014).
J Coles musical content, personality, and individuality also align perfectly with New
Eras vision. Cole is known for his socially conscious, lyrical music, expressing his individuality
by not taking the typical path of a hip-hop artist. Instead of being discovered as a young kid in a
big city and signing to a major label, Cole pursued his dreams by making it out of poverty and
going to college at St. Johns University on an academic scholarship. It was during his time in
New York City that Cole perfected his craft, uploading highly successful mixtapes to the
Internet to gain a following. Eventually, rap mogul Jay-Z recognized Coles talent and signed
him to a deal with record label Roc-Nation. Coles unusual path, as well as his diverse
background, has helped him relate with young people from all walks of life. Cole commented on
his versatility in a 2015 interview with NPR entitled, J Cole: An Upstart Rapper Speaks for
Himself: I saw life at all levels. I'm half-black, half-white, so I basically put it like this: I can fit
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in anywhere. That's why I write so many stories from so many different perspectives, because
I've seen so many" (J Cole: An Upstart Rapper Speaks for Himself, 2015).
The New Era Dreamers will be promoted primarily through advertising, public relations,
and sponsorship. The main advertising platform for the sneaker will be social media, as
millennials primarily interact through this medium. Research from the Pew research found on
SBRnet has shown that millennials have a strong belief that they can make the world a better
place, and also found millennials to be both globally aware and charitable (The Millenials,
2015).
New Era will take advantage of this attitude by leveraging J Coles sponsorship with
public relations and advertising to film a commercial of Cole walking through the streets of New
York City handing out new pairs of Dreamers to young people. The ad will be modeled after
Gatorades highly successful campaign centered on Derek Jeters retirement in which the
company had Jeter approach unsuspecting Yankee fans in street clothes and thank them for their
support.
In New Eras Ad, personal commentary from J Cole on the meaning behind the Dreamer
and what it means to pursue ones dreams will be played in between clips of Cole handing out
the sneakers to unsuspecting young people. Cole will also stop by the local Boys and Girls club
(New Eras Legacy Partner) to hand out pairs of Dreamers as well. The reactions of the youth
will be captured on camera and Cole will continue to talk about the message behind the Dreamer
and the New Era brand in general, and why sneakers are an important part of self-expression.
The commercial will conclude with a shot of Cole on stage at one of his sold out concerts
wearing the Dreamers while performing. This ad will appeal to millennials by utilizing an icon
that they find extremely credible, while also appealing to their charitable nature.
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The ad will not be released online until one full month before the release date of the
sneakers, which is May 6th, 2015, however, 20 second teasers will be put up on New Eras
Twitter and Instagram accounts as well as J Coles twitter account beginning on February 12-14,
which is NBA All-Star weekend. Eventually, the full-length ad, which will be about two minutes
long, will be viewable on YouTube once the product is released.
In addition to this video ad, print ads will be made for hip/hop and lifestyle fashion
magazines featuring Cole wearing the sneakers and the slogan Were All Dreamers. These ads
will be placed in Complex Magazine, the Source magazine, Eastbay magazine and on sneaker
blogs like nicekicks.com Hypebeast.com, to connect with the target segment. These ads will run
during March, April, and May. Also, well-known sneaker reviewers on YouTube will be invited
to come to New Eras flagship store in Toronto during NBA All Star weekend on February 12-14,
2016 to get a sneak preview of the sneaker design so that they can talk about them on their
YouTube pages. All-Star weekend is traditionally a huge opportunity for brands to promote their
upcoming releases, and many of these sneaker reviewers travel to the All-Star game every year to
check out new products, from basketball sneakers to fashion products. The channels that will be
invited, followed by number of YouTube followers will include: NiceKicks.com (516,815),
KickGenius (465,407) Jacques Slade (115,396) and Foamer Simpson (129,345). All of these
channels have gained a large following of millennials and represent excellent opportunities to
connect with that segment (Kanevsky, 2015).
Following the release of the sneaker, New Era will encourage interaction from
millennials by asking consumers to share their designs on Twitter and Instagram, along with the
stories behind them. The hashtag #WereAllDreamers will be promoted across all social media
platforms to collect the content and upload the best sneakers and stories to New Eras pages. A
30
non-price promotion will also be held where the best fan submissions will be selected to travel to
attend a J Cole concert with backstage passes and also get to tour the New Era headquarters in
Buffalo, NY.
AREAS TO LEVERAGE MARKETING MIX
The marketing mix objectives will be leveraged in a number of ways. First of all, the
places where the product is sold will be leveraged by the promotions by having large New Era
displays inside Footlocker, Champs Sports, and Finish Line. The displays will be located next to
New Eras hat section inside these stores, and they will show how New Eras hats match
perfectly with the Dreamers.
Also, as mentioned before, the sponsor will leverage a non-price promotion by having the
contest where people submit their best Dreamer designs for a chance to meet J Cole. This will
encourage more sharing and interaction of the product.
The invitation to YouTube sneaker reviewers will also be leveraging the place (Toronto
Flagship Store) with the promotion of the product by giving these reviewers who are very
credible an opportunity to get a sneak peek at the new product and share it with their followers.
The product will also be leveraged by another non-price promotion: supplying current
New Era Brand Ambassadors with free pairs of Dreamers that they can wear off the field and
share on their social media accounts.
Finally, another non-price promotion will be used as an incentive for sales inside the
retail stores. The Footlocker, Champs, Finish Line, and New Era Flagship stores that sell the
most Dreamers in the first year of the product will be given a free suite at the 2017 New Era
Pinstripe bowl, a collegiate bowl game located at Yankee Stadium.
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SERVICE DECISIONS
Grom Custom Shoe Manufacturers understands the importance and difficulty of getting a
new product off the ground. The start-up costs in the beginning stages of the product life cycle
generally outweigh profit. Grom Custom Shoe Manufacturers will help New Era get its new J
Cole Dreamer shoe into the market and absorb any potential malfunctions across the way. The
Dreamer will be of the best quality.
New Era prides itself in working with its customers to make sure they are completely
satisfied, Grom Custom Shoe Manufacturers agrees. There has been a study that shows that
completely satisfied customers are 42% more likely to be loyal to a brand because customer
delight created an emotional affinity for a product or service, not just a rational preference
(Armstrong, 8).
Grom Custom Shoe Manufacturers is willing to reproduce shoes that do not meet the
customers expectations. This organization will turn around the product within 48 hours in order
to keep the customer satisfied. If ever New Era or any store selling the shoe has a comment about
the production process, Grom Custom Shoe Manufacturers has an e-mail where all concerns and
comments will be answered accordingly. Grom Custom Shoe Manufacturers not only provides
the tangible good for the customers but the reliable service portion that showcases the Dreamers
are a product that can be trusted.
TECHNOLOGY ENHANCEMENTS / DATABASE MARKETING

The technology used in the Dreamer shoe will be a combination of the best products on
the market. By combining the technology of Nikes FlyKnit and New Balances ABZORB, it will
32
allow the product to be the superior choice in the current market. The FlyKnit technology used
by Nike is engineered to only use yarn and fabric variations where they are essential (Nike
Engineers). Since 2012, FlyKnit technology has reduced nearly two million pounds (Nike
Better World). This will allow New Era to increase their profits from the Dreamer shoe in both
saving waste and increasing interest in the product. For New Era, the technology will be called
Dream Catcher Technology. The Dreamer sneaker will be appealing to people interested in
saving the environment because of this technology. Millennials typically care about their
environmental impact. More than eight in 10 Millennials (81%) expect companies to make a
public commitment to good corporate citizenship (Faw, 2014). Less is more in this case, where
the simpler the product the more people will buy it as it appeals to a wider target audience.
The use of less fabric does not hinder the shoes capabilities. Dream Catcher technology
creates an extremely light shoe while also allowing more creativity to be expressed by both the
shoe producers and consumers. Since there is only so much room on the sneaker in the first
place, this opens up opportunities to maximize creativity. The knitted process opens up the
limited real estate of a shoe to be an unlimited canvas of colors, patterns, and what you can do
with a shoe (Tsui, 2014). This allows for the Dreamer to keep up with its competitions endless
customization options of their sneakers. With Dream Catcher technology, you can efficiently
create something all from one material, on one machine, and you can be much more creative
with it (Tsui, 2014). With reducing waste from sneaker production companies are increasing
the value and longevity of their products. This is the story of innovation, anytime something can
be done better, others will pick up on it (Tsui, 2014). Dream Catcher technology will be able to
compete with other companies in the sneaker market. This will allow the Dreamer collection to
jump straight to the top of the competition.
33
Nikes FlyKnit technology continues to use EVA foam technology. Because of this, New
Era will not be basing the Dreamer shoe off this foam. New Balance has created technology
similar to the EVA foam, except it has the capacity to resist compression set which makes the
shoe last longer (Jones, 2013). This similar technology used by New Era will be called Cloud.
This makes the Dreamer more durable and therefore last longer. By using the best technology in
the Dreamer, New Era will continue having high brand equity.
Database marketing for the New Eras caps can be utilized for reaching out to potential
shoe customers. When consumers are using New Eras website to search for hats and other
accessories, the website can recommend certain colors of the Dreamer collection to those online
shoppers. Recently purchased and/or recently looked at can be utilized to get the Dreamer shoe
brand out to the general public.
The use of website marketing can be extended to emails. Millenials still want to engage
with brands through e-mail. According to a study by Principal financial group, Millennials prefer
to have one-to-one contact with companies through email. This study also found email as the
number two preferred means of doing actual product research in the retail segment (Dille, 2015).
Therefore, email is still a valuable tool in both database marketing and reaching the younger
audience. Custom emails will be sent to each customer depending on what was either bought or
searched for on the New Era website. All emails will be sent with the first name of the registered
user so as to make the email personal. To get Millennials engaging with New Eras emails,
exclusivity will be expressed. Email exclusive discount codes will be given a few times to make
sure people check every email and read through all the content. As a new product, incentives are
necessary to push the product from the manufacturer to the consumer (Shank, 319). It allows for
the most engagement in a generation interested in exclusivity.
34
Continuing to use searching and buying patterns of customers using New Eras website,
ads will be placed on various social media sites. Facebooks targeting ads based on users website
searches and purchases will be used to get New Eras ads directly to the customers. Facebook
will even advertise to people who could be interested in the Dreamer by using its databases.
Facebook said because we think youre interested in electronics, we may show you ads for other
electronics in the future, like speakers or a game console to go with your new TV (Roppolo,
2014). Potential consumers can be found by using this method to increase revenue. People want
more personalized advertisements on their Facebook accounts. According to feedback received
by Facebook people say, you know so much about me, how in the world could you ever
serve me an ad that is not relevant to me? Why am I seeing this if it has nothing to do with me
(Campbell, 2015). Facebook users will be more likely to have a positive experience seeing the
Dreamer shoe ads if they are targeted specifically for them. This is also an important part of the
product life cycle. The broad marketing goal of the first phase of the PLC for any sport product
is to generate awareness and stimulate trial among those consumers who are willing to try new
products (Shank, 319). Generating interest to potential buyers through Facebooks targeted
advertising will allow for awareness to be spread.
SALES
New Era is already an established brand that has relationships with various shoe-selling
companies. Companies like Footlocker, Champs Sports, and Finish Line will be prime targets for
getting the New Era Dreamers into the market and will help push the product to the next level.
Employees of these brands will wear Dreamers while working to generate awareness amongst
customers. This approach will allow Millennials to talk to a person who has personal experience
with the shoe. According to Forbes only 1% of millennials surveyed said that a compelling
35
advertisement would make them trust a brand more (Schawbel, 2015). This allows the shoe to be
advertised in a way that seems authentic. Authenticity is something Millennials highly value as
43% ranked authenticity over content when consuming news (Schawbel, 2015).
On top of employees wearing the Dreamer shoes, New Era will also partake in P.O.S
selling. Advertisements close to the register will allow consumers of these stores to learn about
the new shoe in the market. This will generate brand awareness and the possibility of further
questions and research.
Currently, New Era is partnered with Nice Kicks to put on a contest for sneakerheads.
One of Nice Kicks employees created different caps to be designed for specific shoes. In order to
win the contest, contestants must tweet what their favorite combo of caps is and why they prefer
them. The winners of the contest can win the newly designed hats. A similar contest can be
created between New Era Caps and the New Era Dreamer collection. Through the Dreamer
customization options, contestants can create a shoe that matches their favorite New Era Caps.
Once entered in the contest, people can vote once a day on which combination is their favorite.
The winner of the competition will get the shoe they customized for free. This is a great choice
of contest for Millennials who want to get involved in the creative process of companies. Fortytwo percent of Millennials surveyed said that they are interested in helping companies develop
future products and services (Schawbel, 2015). Between the customization options and this
contest, consumers can feel like part of the company and be proud of what they wear.
In order to maintain high customer relationships with Cole, New Era must be an active
member on social media. According to the Forbes article, 62% of millennials say that if a brand
engages with them on social networks, they are most likely to become a loyal customer. As New
Era already has employees in charge of their social media sites incorporating shoes into the
36
accounts will be of no issue. Through Twitter, the company can engage with consumers and
potential buyers who have posted about the product. This could be a picture of them with the
product, a picture of the product, a tweet about wanting the product, or any positive tweet about
the product or company. Social media users will appreciate the engagement. Through Instagram,
New Era currently reposts pictures of their caps posted by consumers. This can continue to be
done with the incorporation of shoes. Also, if New Era is tagged in any photos they have the
opportunity to like the photo, increasing positive customer relations. For New Era to go out of
its way to interact with its customers and possible customer it will create a positive Facebook
will be used for promoting the product and promoting any contests New Era is currently holding.
New Eras Snapchat can also be used to prove the authenticity behind the brand. People who
bought the product will appreciate videos and pictures of the production and distribution of the
shoes. J Cole can also take over the Snapchat account for the day while he visits the New Era
factory and/or corporate offices. This can get people who are interested in J Cole to become
interactive with the social media account and be exposed to the product.
On top of interacting with customers on social media, New Era can utilize email to
interact with its customers. After a customer buys or receives their product either online or in a
store, an optional survey will be sent out to their emails for them to complete. Questions
regarding their shopping experience and shoe experience will be asked along with an area to put
any additional comments they would like to share with New Era. Once entered, the participant
has the chance to win a discount code on their next order on http://shop.neweracap.com/.
In order to increase the trust potential customers have in New Era as a company and
brand, a warranty of 14 days will be given to the owners of new Dreamer shoes. This will allow
any skeptical buyers to go ahead and buy the product, as they have the opportunity to get their
37
money back if they do not enjoy the product. Even if a consumer has a bad experience with the
product they will not have a bad experience with the company allowing positive customer
relations. When returning a product, they will also be asked to fill out a survey of why they did
not enjoy the product and how New Era can improve in the future. This will allow their feedback
to be heard.
LEGAL ISSUES
One legal issue that organizations have to be aware of is trademark infringement. It can
be detrimental to an organization because the trademark owner loses revenue and the trademark
is used on a poor quality good it could reflect badly on the brand. (Spengler, 213) Manufacturers
can also be faced with product liability specifically if the product causes harm to the person
using it. These can be caused from manufacturing defects which affect one product of a product
line or from a design defect which would affect the entire line. (Spengler, 41-42) Grom Custom
Shoe Design will make sure to remake any shoes that are faulty.
RISK MANAGEMENT
Production inaccuracies are a possibility in shoe manufacturing. In order to combat this
product warranties can be offered. Not only can these be used to make sure the consumer stays
safe and can but also reduce the perceived risk with the original transaction. Consumers are more
likely to spend money on a more expensive good of there is a product warranty offered (Shank,
293).
The Grom Custom Shoe Manufacturer takes pride in its workers and makes sure all
factories undergo safety inspections and have good working conditions.
38
ETHICAL ISSUES
Grom Custom Shoe Manufacturer makes sure to pay its workers an actual wage for the
work done. It may benefit other competitors to pay their workers less, but this company values
every worker that creates the product.
AREAS FOR INCREMENTAL REVENUE
The easiest way to increase incremental revenue in retail is through the use of add-on
sales. The more add-on sales that are on the purchases [builds] up the dollar value of a sale by
adding on items directly related to the main purchase. Called companion and complimentary
add-ons, they are products that help a customer complete an installation, accessorize a product,
or obtain more satisfaction from the primary product (McGrath, 2015). New Era can utilize
products that they already sell such as socks to capitalize on add-ons sales. Socks have a high
profit margin and generally consumers purchase more than one pair (Day, 2011). Another item
that could be used to increase revenue is shoelaces. It is important that the socks and shoelaces
are located right next to the Dreamer shoe to remind the customer that they need to purchase
more.
FINANCIAL ANALYSIS
The financial analysis of the New Era Dreamer line starts in April of 2016 and projects
for one year. The main components of the analysis include production costs. New Era will have
an advertisement budget specifically set for the Dreamer line, based of arbitrary allocation
methods the proposed advertisement budget is $4 million for the entire year. It is suggested that
New Era move money from existing advertisement budgets to the Dreamer budget because new
products generally have trouble breaking even in the first year.
39
It is projected that the Dreamer will sell all 6,000 of the limited edition J Cole Dreamers
which contributes to the 1.5 million shoes sold for 2016-17 total (as shown in the graph below)
(Marcelo, 2015).
Dreamer Sales 2016-17
The Dreamer line is expected to bring in $7,095,000.00 in the first year (as shown in the
graph below).
40
Dreamer Profit 2016-17

$1,000,000.00
$900,000.00
$800,000.00
$700,000.00
$600,000.00
Total Profit
$500,000.00
$400,000.00
$300,000.00
$200,000.00
$100,000.00
$0.00
The expected costs for the productions of the Dreamer line for the 2016-17 year is
$44,880,000.00 (as shown in the graph below).
Dreamer Cost 2016-17
41
Dreamer Cost 2016-17
42
43
The New Era Dreamer line is expected to be a success with the Cole market (see Appendix for
more financial information).
EVALUATION AND CONTROL

While both Millennials and Baby Boomers use smartphones to research products,
Millennials are much more likely to rely on social influence and digital word-of-mouth. 46
percent of Millennials surveyed said social media ads are extremely influential in getting them to
begin researching a product of any kind, while 33 percent of Millennials spend over 11 hours per
week using social media on mobile devices (Powell, 2015). Millennials are incredibly engaged
with companies and brands on social media platforms and building a marketing strategy with a
social focus is incredibly effective when targeting said audience.
Monitoring the marketing mix is something that is incredibly important, especially when
developing a shoe in such a competitive market. One method in which to monitor the market is
through the use of a marketing audit. The marketing audit is a comprehensive examination of
objectives and strategies to determine problem areas and opportunities for improvement
(Monitoring Performance, 2010). This systematic approach covers all areas of marketing and
does not simply focus on the problem areas. This audit would be useful because it is an
independent review of the direction in which New Era is going in developing this shoe,
compared to what was originally laid out in the marketing objectives. Other ways in which
Implementing strategies such as surveying customers to find out if the marketing campaign has
44
had any influence on them, as well as looking specifically at sales records of a certain time
periods, which could help in monitoring the New Era Market.
New Eras production of the J Cole Dreamer shoe is just the start of an expansive
inventory of fully customizable shoes targeted towards the millennial generation and those alike.
Due to the level of competition in the footwear industry at this point in time, coming out with a
specific shoe based around a superstar entertainer such as J Cole was looked at as the best way to
get a foot in the door of this incredibly competitive market place. Looking at the overall
performance compared to the original plan of entering the market is something that will have to
be looked at when trying to expand the shoe line. If the objectives of the marketing plan meet the
possible opportunities, then expansion of the product will be more than likely. As this shoe
becomes more and more popular adjustment in the market place will be inevitable. New Eras
way of adjusting will be through the expansion of its shoe line, as well as some possible price
changes depending on the market response to the J Cole Dreamer Shoe.
Responses from competition will most likely be limited due to this being a first attempt in
pushing into the footwear market. However, given New Eras track record with their signature
hats, as well as moving into and producing apparel and accessories may give competitors such as
Nike, Adidas, and Puma a few things to consider. If the J Cole Dreamer shoe does well enough
as a launching point for New Era in this new market place, you may see these competitors firing
back and trying to come out with the next big thing to take back the spotlight.
45
References
About Timberland: Working Here: Locations. (2015b). Retrieved December 8, 2015
Adidas Group - History. (2015a). Retrieved December 8, 2015a
Adidas ZX Flux Shoes. (2015c). Retrieved December 8, 2015
Armstrong, G., & Kotler, P. (2011). Marketing: An introduction (10th ed., global ed., p. 8). Boston,
Mass.: Pearson.
Browse New Era Caps Hats and Apparel. (2015). Retrieved November 29, 2015
Burstein, Daniel. "Ecommerce Chart: Online Shopping Behaviors of Millennials versus Baby Boomers."
Ecommerce Chart: Online Shopping Behaviors of Millennials versus Baby Boomers. Marketing
Sherpa, 28 July 2015. Web. 07 Dec. 2015.
Campbell, T. (2015, November 10). Facebook: Our users demand MORE personalised ads. Retrieved
December 1, 2015.
Christmann, S. (2015, January 15). Abrupt Change at The Top at New Era Cap. Retrieved December 4,
2015
Club News. (2015, December 10). Retrieved December 4, 2015
Cook, G. (2015, April 30). Carhartt to Invest Millions in Hanson Distribution Center. Retrieved
December 8, 2015
Corporate Responsibility I New Era. (2015). Retrieved December 4, 2015
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Day, J. (May 2011). Insoles & Hosiery: Helping Drive Healthy Feet and Bottom Lines. Retrieved
December 4, 2015.
Dille, S. (2015, April 15). To Speak Millennial, Use Email. Retrieved December 2, 2015.
Discover Sperry's History & Current Events. (n.d.). Retrieved December 8, 2015
Dunne, B. (2014, December 16). How Much It Costs Nike to Make a $100 Shoe. Retrieved December 4,
2015.
Elliot, S. (2010, August 16). New Era Campaign Sells Uniqueness. Retrieved December 2, 2015
Faw, L. (2014, May 22). Millennials Expect More Than Good Products, Services To Win Their Loyalty.
Retrieved November 19, 2015, from
Gladstone, Brian. "Insights of Millennials on Footwear Industry. World Shoe
Group, 11 June 2015. Web. 04 Dec. 2015.
Liquidator. The Jay
Handley, Jen. "Marketing To Millennials." Marketing To Millennials: Four Distinct Segments. Adobe,
2009. Web. 03 Dec. 2015
Hat Industry Statistics. (2015, February 15). Retrieved December 3, 2015
J Cole: An Upstart Rapper Speaks for Himself. (2015, April 3). Retrieved December 7, 2015
Jones, R. (2013, July 25). Know Your Tech: New Balance Abzorb. Retrieved December 2, 2015
Kan, E. (2014, November 16). Along The Branding Trail. Retrieved Decmeber 3, 2015
Kanevsky, D. (2015, November 11). The 15 Best Sneaker Channels on Youtube Right Now. Retrieved
December 6, 2015
Knits-Products I New Era. (2015). Retrieved November 29, 2015 Leading sporting goods, footwear and
apparel retailers in the U.S. (2015). Retrieved December 6, 2015
Marriott, M. (1992, November 28). The Carhartt Jacket. Retrieved December 8, 2015
Marcelo, J. (2015, March 6). The Stan Smith Is Officially the Most Successful adidas Sneaker of All
Time. Retrieved December 4, 2015.
McGrath. (2015). Performance Racing Industry. Retrieved December 4, 2015.
"Monitoring Performance." Monitoring Performance. N.p., 07 Mar. 2010. Web. 07 Dec. 2015.
Nelson, K. (2014, December 17). J Cole's New Album Sets Spotify Record. Retrieved 2015
47
New Era Accessories: Wallets, Belts, Iphone Cases. (2015). Retrieved November 29, 2015
New Era By You. (2015). Retrieved December 5, 2015
New Era Cap. (2015). History-About Our Company. Retrieved November 22, 2015
New Era Flagship Stores I New Era. (2015). Retrieved December 1, 2015
Nike Better World. (n.d.). Retrieved December 1, 2015,
Nike Engineers Knit For Performance. (2012, February 21).
Nike Roshe Flyknit iD. (n.d.). Retrieved December 8, 2015
Oregonian/OregonLive, A. (2015, May 8). Nike, Columbia Sportswear tout benefits of Trans-Pacific
Partnership pact. Retrieved December 4, 2015.
Powell, Matt. "Sneakernomics: Whats Next for "Athlesiure"" Forbes. Forbes Magazine, 06 Mar. 2015.
Web. 03 Dec. 2015.
Roppolo, M. (2014, June 12). Personalized ads coming to Facebook. Retrieved December 4, 2015,
Rovell, D. (2010, December 28). New Era CEO Chris Koch Talks Bowl Games, Being Private & NFL
Deal. Retrieved December 2, 2015
Timberland Responsibility. (2015a). Retrieved December 8, 2015
Tsui, B. (2014, July 22). The Extraordinary Future of Shoes. Retrieved December 3, 2015.
Shank, M. (2015). Sports marketing: A strategic perspective. Upper Saddle River, N.J.: Prentice
Hall.
Soni, P. (2014, December 14). Traditionally Innovative: The History Of NIKE. Retrieved December 8,
2015
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Vega, Rebecca. "Millennials Urge to Splurge on Shoes." Blog NPD Group. The NPD Group INC, 16
Mar. 2015. Web. 04 Dec. 2015.
APPENDIX
48
49
Per Shoe Cost
50
Income
Statement
Percent of
Revenue

$25
$1
$2.50
$28.50
$15.75
$2.10
$4.73
$22.58
$52.50
$52.50
$105.00
Factory FOB Cost

Sea Freight and Insurance
Duty
Landed Cost (57% of Revenue)
Cost of Goods
57%
SG&A
Tax
Profit
30%
4%
9%
43%
Mark-up (43% of Revenue)
Wholesale Price
Retail Mark-up (100% of
Revenue)
Manufacturer's Suggested Retail Price
Production Costs
Factory FOB Cost
Sea Freight/Insurance
Duty
SG&A
Tax
Advertising Costs
Social
Media
Events
Print Advertisements
Commercials
Total
Cost
2016-2017
51
Revenue
$44,880,000
.00
$4,000,000
$48,880,000
.00
Quantity
Fixed Cost (Per
Total Cost
Unit
Total
100%

Produced/Sold
52
Unit)
April
6,000
$29.92
May
12,000
$29.92
June
100,000
$29.92
July
175,000
$29.92
August
200,000
$29.92
September
165,000
$29.92
October
160,000
$29.92
November
190,000
$29.92
December
150,000
$29.92
January
120,000
$29.92
February
115,000
$29.92
March
Total Units
Produced/Sold
107,000
$29.92
1,500,000
Yearly Cost
Profit
$179,520.0
0
$359,040.0
0
$2,992,000.
00
$5,236,000.
00
$5,984,000.
00
$4,936,800.
00
$4,787,200.
00
$5,684,800.
00
$4,488,000.
00
$3,590,400.
00
$3,440,800.
00
$3,201,440.
00
$44,880,00
0.00
$4.73
$4.73
$4.73
$4.73
$4.73
$4.73
$4.73
$4.73
$4.73
$4.73
$4.73
$4.73
Yearly
Profit
Profit
$28,380.0
0
$56,760.0
0
$473,000.
00
$827,750.
00
$946,000.
00
$780,450.
00
$756,800.
00
$898,700.
00
$709,500.
00
$567,600.
00
$543,950.
00
$506,110.
00
$7,095,00
.00
53
54
55
56
CUSTOMER
MANAGEMENT LIST
Custo
mer ID
NE10000
NE10001
NE10002
NE10003
NE10004
NE10005
NE10006
NE10007
NE10008
NE10009
NE10010
Name
Purchases
Billing
Address
Andersen
, Joe
Brown,
Alyssa
Green Bay
Hat
Diamondbac
ks Hat
523 Maple
Hill Road
125 Fowler
Street
City
Chic
ago
Austi
n
State
or
Provi
nce
Country
/ Region
Illinois
US
Texas
US
Phone
Numbe
r
E-Mail
Address
416-5427892
652-5435325
jandersen@
gmail.com
alyssabrown
@ymail.com
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Running Head: NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

Primary Market Research

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

MARKET SELECTION DECISIONS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

MARKETING MIX DECISIONS / CAMPAIGN

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

TECHNOLOGY ENHANCEMENTS / DATABASE MARKETING

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

Dreamer Sales 2016-17

NEW ERA X J COLE: DREAMERS

Dreamer Profit 2016-17

NEW ERA X J COLE: DREAMERS

Dreamer Cost 2016-17

NEW ERA X J COLE: DREAMERS

Dreamer Cost 2016-17

NEW ERA X J COLE: DREAMERS

EVALUATION AND CONTROL

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

Liquidator. The Jay

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

NEW ERA X J COLE: DREAMERS

Per Shoe Cost

NEW ERA X J COLE: DREAMERS