Introduced in 2005, the Vibram FiveFingers (VFF) shoe has become a highly visible figure in the world of athletic shoes and has gained a sizeable chunk of the minimalist shoe market. The Vibram FiveFinger Shoe was originally intended for yacht owners that wanted to maintain their grip on the deck without compromising the barefoot feeling. The VFF has gained many accolades since its inception one of them being Time Magazine’s best inventions of 2007. The shoe’s entrance into the world of athletic wear began when one of the CEO’s of Vibram America noted the FiveFingers had potential for a barefoot running shoe. (Vibram1) The market for the shoe now is now primarily aimed at people that are outdoor enthusiasts and the people that are involved in the minimalist shoe craze that has become increasingly popular across the globe in the past few years. The book Born to Run sparked much of the interest in the benefits of running barefoot and the book has helped the natural running movement receive national attention and the Vibram FiveFingers shoe has ridden that movement to popularity and profitability. (Walker 1)
Vibram FiveFingers target market mainly consists of athletes and outdoor enthusiasts. The design and functionality of the FiveFingers is what appeals to their target market. The shoes fit the foot like a glove and provide a barrier between the foot and the ground. This mimics the “barefoot” feel while providing some protection to the foot from the elements. The proponents of barefoot running and the Vibram company line is that the shoes create a healthier running experience. The company motto for the FiveFingers is: “Discover the Alternative®: A healthier foot ware product”. (Vibram1) The company is selling the fact that the shoes have the potential to decrease the many of the pains associated with running by using a natural running style. The typical Vibram FiveFinger customer is one who values a quality product with a great customer following and great company support. They are typically runners looking to improve their running times or an outdoor enthusiast who is looking for a quality shoes that fits well and is portable. Another group who looks to these shoes is people with various hip, knee, and foot problems (Owings, 2011). Many people have reported fast recovery from injury and less pain while running in FiveFingers. The FiveFinger is one of the most easily recognizable shoes out there and due to the patents (Image1) Vibram possesses; there are not many competitors for shoes with toes. There are however, plenty of minimalist running shoes that compete for the FiveFingers share of the growing minimalist market. These competitors will be addressed further in the paper.
In 2006 the FiveFinger line contained a Men’s, Women’s and Children’s shoe selection. Vibram sells the shoes by suggested use. The different uses are Fitness, Running, Multi-Use, Outdoor, and Watersport. Many of the shoes overlap when different uses are suggested, meaning that they have more than one purpose. The most popular styles of shoes are the Sprint, and KSO. KSO is an acronym for keep stuff out. These shoes can be used for running, walking, weight training, and many other activities. The children’s line consists of a sprint and speed selection of shoes. One is more of an everyday shoe and the other is more of an athletic shoe. The adult shoes range in price from $90-$110 and the children’s versions retail for around $60. The line-up remained the same up until 2011. In 2011 Vibram began to sell a “casual” version of the FiveFinger shoe. (Vibram) The company line on the new casual line is: “Wearing your VFF’s on a regular basis will allow you to experience the benefits of barefoot activities with the protection of our patented Vibram sole. So whether you’ve been pounding the turf, ripping turns on the mountain or ascending routs on an alpine wall, bring Vibram FiveFingers along for the after party. Your feet will thank you.” (Vibram1)
The shoes are currently still in the growth stage of product life cycle as their sales numbers have increased every year that they have been available. In fact, according to a recent article by Leisure Trends Group’s Run Specialty RetailTRAK, “minimalist footwear sales totaled $45 million through the end of October 2011, up 153 percent from $18 million during the same period in 2010. Meanwhile, traditional running shoes struggle to maintain sales and share with sales trending down across the first 10 months of 2011.” (Pang, 2012) There doesn’t seem to be too much slowing down in the minimalist shoe market as each year more and more Americans are taking up running and becoming more active.
The Vibram team uses a concentrated marketing strategy for their FiveFinger line of shoes. They market mainly to their target audience at events such as marathons, 10K and 5K races. They set themselves apart from the competition by positioning themselves to be the most unique version of any shoe that is currently available in the minimalist market. This uniqueness can be seen in the fact that Vibram was named 2010 Footwear News “Brand of the Year”. (Beaudry, 2010) They primarily use print ads in magazines and online marketing to reach their target audience.
If you take a look at the athletic shoe market today, there is a dizzying array of choices for consumers. Yet, the Vibram FiveFinger shoe manages to distinguish itself from the pack with its unique design and distinct features. Vibram FiveFingers face competition from many different shoe companies. Initially there were minimalist shoes from Nike and Masai Running. Now there are minimalist shoes from quite a few companies such as New Balance, Merrell, Innov8, Adidas, Reebok, and Vivo Barefoot. Vibram FiveFingers hold around a 3% market share of the $1.7 billion minimal shoe market. (Gregorian, 2011) Vibram is seeking to increase revenue with its new casual line as it seeks to expand its market beyond the typical customer who usually an athletically inclined individual. With their uniqueness and now a more versatile line, the Vibram FiveFinger is approaching their strategic sweet spot by filling the customer’s needs for a barefoot shoe, almost exceeding the companies capabilities by maxing production, and setting themselves apart from competitors. (Alsever, 2010)
Vibram has a unique distribution strategy with their FiveFinger shoe line. According to their corporate website there are only three channels of distribution that the company uses: * Stores that specialize in the outdoor products * Running specialty stores * Premium independent shoe stores
The company goes on to state that stores must have a thorough knowledge of the fitting of the footwear due to its unique design. More specifically the company states: In order for a retailer to qualify, the store must fall into one of the three channels listed above, and have a traditional “brick and mortar” store with a focus on product education, service, and premium brands. We do not offer our products through online-only, catalog or affiliate programs, nor through re-distributors. (Vibram1) This is distribution strategy keeps the shoes from being sold to people who might not use them properly and injure themselves by not acclimating their body to the shoes prior to continuing their normal exercise habits. The company has recently opened a United States flagship store in Boston to increase brand awareness. (Owings, 2012) The company has many strengths that play to its advantage. It is an original concept and is instantly recognizable and is becoming more so over time. The shoe has been recognized by some in the medical field as having benefits in working with knee and back pain. (Owings, 2011) The shoe can provide better agility for the athlete. Vibram provides excellent training on its website regarding the use of the shoe and how to get your body used to them. The shoe comes with a 90 warranty against any defects no questions asked. The rubber soles on the shoes provide a remarkable grip on wet pavement and is non-marking making enabling them to literally go anywhere you do! The last strength of the shoe is probably the most compelling one for people, they are very comfortable. It is like walking around barefoot but not having to worry about the elements. Although the shoe has many strengths there are also some weaknesses. Some people are hesitant to buy a shoe that offers no support. Some shoe companies and web sites offer false information about the shoe which hurts its image. The shoe doesn’t fit the image of what we think of when we think of shoes and this can be off-putting for some people. The production is having a hard time keeping up with demand for the shoe.
There are also many opportunities for the Vibram FiveFingers to expand their market. They currently do not pay any athletes or celebrities to wear their product, but there are plenty of people who notice when they do. (Dale, 2011) They could place ads in more markets besides the big cities where they currently focus their attention. They could provide corporate sponsorships of various running teams. They do a good job of gaining visual recognition at events such as the Boston Marathon, but could maybe do more. Lastly they could increase their manufacturing output to match to try and better pace the demand.
The brand also faces some threats. Threats come from those who spread misinformation about the dangers of the shoes. They also face a threat from the over saturation of minimalist shoes that are becoming available every year. One of the bigger threats that they have encountered so far is from the black market. (Alsever, 2010) They ran an ad campaign to address this. Having to get used to running in the shoe may be a turn off for some who just want to run in their new shoes that they have purchased.

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Patent Drawings

Sales Figures

Bibliography
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Beaudry, J. E. (2010, November 29). Brand of the Year: Vibram. Retrieved November 17, 2012, from Footwear News: http://www.wwd.com/footwear-news/markets/brand-of-the-year-vibram-3391376
Dale, H. (2011, September 26). Celebrities Who Wear Vibram Five Fingers Shoes. Retrieved November 18, 2012, from Fitsugar: http://www.fitsugar.com/Celebrities-Who-Wear-Vibram-FiveFingers-Shoes-19192405
Foster, Jordana Bieze. "Barefoot-like designs challenge footwear conventions." Jordana Foster - Freelance Medical Writer. N.p., n.d. Web. 12 Apr. 2011. <http://www.jordanafoster.com/article.asp?a=/sportsmed/20070201_Barefoot_Running_Shoes>.
Gregorian, C. B. (2011, December 29). Barefoot running: Sales grow, but so does debate about benefits, safety. Retrieved November 16, 2012, from St. Louis Post Dispatch: http://www.stltoday.com/lifestyles/health-med-fit/fitness/barefoot-running-sales-grow-but-so-does-debate-about-benefits/article_160a8a80-16eb-55c9-97cc-063b480b3ada.html
Nott, Jeff. "Less Shoe, More Sales." Textileinsight.com. N.p., July-Aug. 2011. Web. 16 Nov. 2012. <www.textileinsight.com/trendinsight/TREND%20INSIGHT%20PDFs/TI%20FWI%20JA11%20P40%3A41.pdf>.

Owings, J. (2012, April 10). Vibram USA Opening Flagship Store in Boston. Retrieved November 18, 2012, from Birthday Shoes: http://birthdayshoes.com/vibram-usa-opening-flagship-retail-store-boston
Owings, J. (2011, March 21). Why Toe Shoes? Retrieved November 18, 2012, from Birth Day Shoes: http://birthdayshoes.com/why-toe-shoes
Pang, N. (2010, April 9). M-Factor: Trends and News in Minimalist Running. Retrieved November 16, 2012, from Natural Running Center: http://naturalrunningcenter.com/2012/04/09/m-factor-trends-news-minimalist-running-world/ Walker, Rob. "Bare Necessity." New York Times 30 May 2010: 2. LexisNexis. Web. 2 Apr. 2011.
Vibram, http://www.vibramfivefingers.com