Fila, a global sports apparel and footwear brand, is known around the world for its innovation and commitment to customers' active lifestyles. Partnerships and product development initiatives are important drivers of Fila's growth. Greg MacKeen, Fila vice president, footwear product marketing, credits one of those partnerships - Fila's involvement with The NPD Group - as the source of unique and valuable perspectives on what's happening in the sports apparel and footwear marketplace, and specifically, where Fila stands among competitors.
NPD Market Information at Work
Fila's category directors rely on NPD market information to assess their markets, identify their product priorities and monitor competitors' launches. Greg MacKeen offered more insight.
First, Fila marketers use NPD's consumer and point-of-sale information to analyze broad market trends, using the data to support the creation of product briefs. "By understanding the key success factors of our core categories," Greg said, "we can specifically target our product design and development efforts to create products that are highly relevant to our customers." For this purpose, Fila considers NPD's macro information for each product category, reviewing such category attributes as size, growth, gender share, competitors' share, price point distribution, competitors' average prices, channel size and growth, top retailers and best-selling products.
Second, Fila looks to NPD to get quick feedback on the success or failure of competitors' new product launches. "We monitor our competitors' 'icon' or marquee product introductions and react to the implications drawn from their relative successes," Greg explained. To analyze competitors' marquee products, Fila reviews NPD's point-of-sale information, and specifically, data on the most recent sales of a particular competitive product. Fila checks these sales weekly for the first four to six weeks after a competitor's product is launched.
And finally, Fila uses NPD data to analyze specific customer performance relative to the company's "in class" competitors. "By identifying opportunities for our sales team to increase sales in areas they may not be addressing, we give them the ammunition they need to sell expanded product assortments," Greg said. For this kind of sales support analysis, Fila considers NPD's category- and channel-specific information, comparing a target retailer to its most direct competitors. Price distribution, category shares, brand penetration, retailer shares, best sellers, average prices, growth and size are important measurements during this phase of analysis.
NPD Information Helps Fila Sign Important New Retailer
Greg recounted one sales score resulting directly from Fila's use of NPD market information. Fila was having great success with its soccer shoes in a particular athletic footwear specialty store, but getting into "big box" sporting goods stores was more challenging. Using NPD data, Fila identified one particular retailer as one of the largest soccer footwear outlets, and then evaluated their product mix. Equipped with NPD's retailer-specific information, Fila identified an area where, despite the customer's overall market strength, sales could be stronger. "We presented our solution, which happened to be the strongest products in our line, showed them how successful it was for the specialty retailer and received a trial order for spring 2004," Greg said.
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