The Maverick Move That Rebuilt New Balance

Rajendra Patel
 
If you're a marketer, you've likely been here before. Your company has too many products in the same vertical, which can overlap and compete for the same consumer.
Sales teams demand discount levers, product teams want the attention on "their" features, and leadership expects rapid ROI. The brand's message becomes diffused. In the rush to increase volume, the long-term game of brand building is sometimes ignored.
This is not merely a business-to-business issue.
We can learn a lot from the story of New Balance's resurgence, both as marketers and as identity protectors in the face of complexity.
 
New Balance's Risky Move
When New Balance's new CMO took over, the brand was struggling to remain competitive in a sportswear market dominated by Nike, Adidas, and Puma. More promotions, deeper discounts, and short-term revenue gains were the easy strategy.
Instead, the CMO did something that appeared reckless.
70% of the company's ad spend was redirected away from di...