ASSESSMENT 3 : CSI, Market Demand & Strategy Analysis Taylor’s University

PART 1

Question 1.A
New Balance CSI Analysis: A Case Study Approach.

Work Required: Review the table below and interpret the Customer Satisfaction Index (CSI) of New Balance, Malaysia. You must also explain how it relates to Customer Retention and Customer Loyalty. Your answer must be explained in detail. The reasoning part requires you to justify your answer with at least ONE (1) example based on real-world example and evidence from at least TWO (2) journal articles.

Please pay attention to the following aspects: quality of sentencing and grammar, usage of clear structure, relevance of your justifications.

Question 2.A
New Balance’s market demand analysis

New Balance’s market demand in 2024 is considered quite strong but to maintain the same demand in 2025 is challenging due various factors. Often, the higher the market demand, the higher the customer demand for New Balance product lines. As a research team member, you
have identified FIVE factors that will affect New Balance market demand in Malaysia. The FIVE factors are the following:

1. Brand Awareness, 2. Social influence 3. Technology, 4. Customer lifestyle, 5. Financial status.

Work Required: Explain how each factor influences New Balance’s market demand. To construct your answer, provide at least ONE (1) example and evidence from at least TWO (2) journal articles for each factor.
Please pay attention to the following aspects: quality of sentencing and grammar, usage of clear structure, relevance of your justifications.

Figure 1: McKinsey 7S model

The McKinsey 7S Model maps SEVEN interacting factors crucial in achieving effectiveness in any organisation namely Structure, Strategy, Staff, Systems, Skills, Style, and Shared Values. Among these elements, Structure, System, and Strategy form the hard Ss, while Staff, Skills, Style, and Shared Values make up the soft Ss. The model places Shared Values at the centre to indicate that any change in the founder values affects the other factors.

Work Required: Based on the McKinsey 7S Model depicted in the above figure, briefly explain how New Balance practices these SEVEN approaches to deliver value to its customers. For each element your views must be supported by at least ONE (1) example, and evidence from at least TWO (2) journal articles.

Please exclude the following element “Strategy” from the answer scope, instead focus on the six (6) remaining elements also pay attention to the following aspects: quality of sentencing and grammar, usage of clear structure, relevance of your justifications.

Sample of Answer for the 1st element – STRATEGY

New Balance’s footwear marketing strategy combines product innovation, lifestyle appeal, digital marketing, and a focus on sustainability, positioning the brand competitively in both performance and casual footwear markets (Chetty, 2024). The company emphasizes product innovation and
performance, focusing on high-performance footwear with technologies like Fresh Foam and FuelCell, which offer enhanced comfort and support for athletes (Whelan, 2020). This innovation-driven approach allows New Balance to differentiate itself from competitors such as Nike and Adidas in the athletic footwear market.

By highlighting the technical features of its products, New Balance targets performance-oriented consumers like runners, athletes, and fitness enthusiasts. Its sponsorship of professional athletes and teams further enhances the brand’s association with high performance and credibility (Bain,
2019). In addition to performance footwear, New Balance has made a significant impact in the lifestyle and fashion segments by marketing classic models such as the New Balance 574 and 990 as stylish, casual options (Burke, 2022). The brand collaborates with fashion designers, streetwear brands, and influencers like Aimé Leon Dore and Junya Watanabe, helping it stay relevant with younger, fashion-conscious consumers and expanding its market beyond athletes (Goh, 2021).

References :

Bain, M. (2019). How New Balance is building on its revival as an underdog sneaker brand. Quartz.

Burke, M. (2022). New Balance taps into fashion, sports, and sustainability. Footwear News.

Chetty, L. (2024). Marketing Analysis for a Footwear Company—Part 1. British Journal of Multidisciplinary and Advanced Studies: Business and Management Sciences 5(2), 114-120, 2024. Online ISSN: 2517-2778.

Goh, T. (2021). New Balance: How the once retro running shoe turned into a global fashion icon. South China Morning Post.

Whelan, G. (2020). New Balance commits to sustainable practices and innovation.

Question 4.A
Conclusion

Work Required: Conclude the analysis presented in Question 3.A by suggesting ONE (1) strategy that New Balance can adopt to further increase its customer loyalty. Your strategy must be supported by at least ONE (1) example and evidence from at least ONE (1) journal article.

Please pay attention to the following aspects: quality of sentencing and grammar, usage of clear structure, relevance of your justifications.

Answer

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