User:Sms91588

Industry Growth
Rocker bottom shoes, also known as toning shoes, have become a notable subcategory of the larger athletic shoe market. The toning shoe industry has grown from $300 million to $1.5 billion since its movement into the mainstream market in 2008. Prominent makers such as Skechers and Reebok launched their respective Shape-Ups and Easy Tones in 2008 after MBT’s patent on the shoe technology expired. Many companies responded by introducing their version of a toning shoe, looking to capitalize on the market’s rapid growth rate and the initial success seen by Sketchers and Reebok. Companies have primarily targeted women, who comprise 85% of the market; however, industry analysts observe that men's and children's segments offer opportunities for future growth of the product category.

Makers and Brands
Though most toning shoe makers strive to design products that improve muscle tone, the execution of each product or product lines differs significantly among competitors. Below is a list of the industry's top five competitors, their product lines, price points and unique selling propositions (USP). (Note: unique selling propositions are a marketing-based strategy used to differentiate a company's product from that of its competitors)

Masai Group International

 * Product: MBT (Masai Balance Technology)
 * Price Point: $200
 * USP: the first balance technology shoe; patented 2002-2008

Skechers

 * Product: Shape Ups
 * Price Point: under $100
 * USP: affordability; traditional “rocker-sole” shoe

Reebok

 * Product: EasyTones
 * Price Point: $100
 * USP: Balance-ball technology; create a feeling of instability

New Balance

 * Product: True Balance, Rock&Tone
 * Price Point: $100-$120
 * USP: wobble-board technology

Nike

 * Product: Free
 * Price Point: under $100
 * USP: Mimics barefoot running; healthier; the “anti-toning shoe”; men's and children's

Product
Toning shoe makers utilize marketing tactics based off of claims that the shoes will help improve muscle tone by engaging leg and butt muscles through instability. Marketers specifically target women using claims that the shoes will improve physical appearance through improved leg muscle tone and the shapeliness of one's rear end. The products also report increased calorie burn through heightened muscle engagement. Companies also target men, but emphasize the added exercise benefits of wearing the shoe more than appearance benefits. Additionally, companies have expanded their toning product offerings to include sandals, boots and apparel.

Price
Toning shoes range in price between $75 and $200. Brand image greatly influences the price strategy that companies choose. Where standard Skecher’s sneakers are priced around $50, consumers are willing to pay a small premium for toning capabilities (i.e. a $75 product). Alternatively, Reebok attracts a higher selling price, as the brand is known more for performance than affordability. Depending on the degree of market penetration a company wishes to achieve (i.e. how many consumers will be able or willing to purchase their product), they will price the shoe at a low, high, or mid-range price point.

Place
Toning shoes can be found in retail outlets around the United States and select markets around the world. Famous Footwear, for example, sells Skecher's Shape-Ups, while Reebok, New Balance and Nike shoes are available at sporting goods stores. Shoes may also be purchased online.

Promotion
Reebok, Skechers and New Balance have all produced TV commercials, print ads and integrated marketing campaigns that send a similar message – become more fit and attractive simply by wearing these shoes. When a new product enters the market, any promotion for the product category can benefit the industry as a whole. For example, when industry-wide sales in Q1 of 2010 reached 75% of 2009 total sales, many linked the growth to Skecher’s 2010 Super Bowl advertisement.

Position
Veronica Dagher of the Wall Street Journal suggests that companies have thus far targeted “time-starved middle-aged women who don't make it to the gym”. Industry analysts have also identified a trend towards women who are active and are looking to supplement or enhance their existing workouts. Whatever their motivation for purchasing toning shoes, American women have numerous options on store shelves. Certain brands like Reebok utilize a “sex-appeal” strategy showing fit women from only the butt down in a series of television commercials. Skechers has mimicked this strategy, only to put a more social spin on the commercials. The ads feature women walking with their friends, paying little mind to all the extra work they are doing by wearing Skecher’s Shape-Ups. This alludes to the product positioning of “work less, see more results”. New Balance, being third to enter the market, has made a point to highlight the unique (and often criticized) appearance of Shape-Ups. Their ad features two young women, both walking for exercise, who are noticed by an attractive man. The only difference between the two scenarios is that the woman wearing Skecher’s Shape-Ups is not actually being looked at – the man is checking out her shoes. However, the young woman wearing Truebalance shoes is being noticed for her attractive physique, not her shoes. Thus, New Balance has taken the market position of being the toning shoe that doesn't look like a toning shoe.

Skepticism
Critics worry that not only are toning shoes detrimental to the health of their users, but that companies are taking advantage of customers with false advertising and lofty claims. Manufacturers solicit results from privately funded studies showing that their technologies do improve muscle tone, burn more calories, and help sculpt the lean muscles that many Americans are unwilling to sweat at the gym for. The shoes offer a “quick-fix” solution for weight loss and muscle toning – claims that certain health professionals deem unrealistic and even dangerous. Todd Galtti of the American Council on Exercise notes, "These shoes are not a magic pill. It is the walking that will make a difference in your life. Not the shoe.” Celebrity endorsements, such as Joe Montana and Brook Burk for Skechers, may serve to weaken the validity of toning shoe makers' claims.  Skeptics dispute whether the toning shoe industry warrants such acclaim or whether it is a mere fabrication of marketing executives.

Another driver of skepticism has been the influx of entrants into the toning shoe market. Many companies seek to gain marketshare by developing what some would consider “knock-off” versions of these shoes. Avia, for example, developed the “Iburn Double Rocker”, while Walmart sells a toning shoe branded under the Danskin name. Industry experts predict that brands such as Puma and Saucony will enter the market with toning shoes in 2011.

Proponents for the shoes reference test studies, scientific research and customer testimony to support shoe makers' claims. With more and more Americans buying the shoes, could it be possible that they not actually work? And to further that point, if the shoes motivate Americans to hit the gym and be more active, can they really be that bad? American consumers have a decided history of rejecting unsatisfactory products, so if consumers continue to buy the product, shoe makers will continue to enter this category.

Future Growth
Despite the skepticism that revolves around toning shoe technology, companies participating in this athletic shoe subcategory have experienced great success. Nike delayed the development of a toning shoe product because the company's upper management did not support industry claims about the technology's effectiveness. By doing so, however, “Nike's share of the women's footwear market [fell] by 7.5 percent as compared to this time last year, according to market retail tracking firm SportsOneSource.” Skechers and Reebok wasted no time in launching their toning shoes once MBT’s patent expired in 2008, and as a result gained a “first-mover” advantage on the mainstream market (i.e. they were the first to offer the product and therefore consumers associate the entire product category with those brands). Because of this leadership, the two companies enjoy 54% and 40% marketshare, respectively.

Sales results and industry statistics indicate that toning shoes will remain a strong product category in years to come. Consumers have bought into the benefits of these shoes regardless of their actual effectiveness. Reebok has expanded its toning line to include “toning apparel”, walking, running and training toning shoes, as well as a men's line of running toning shoes and zig-zag “energizing” shoes. Nike did decide to hedge the toning shoe market with its special line of “natural” running shoes, perhaps recognizing the profit potential that exists in the category. Whether toning shoe technology will become a standard the way air and gel technology did in the late 90's/early 00's is unclear at this time; what is certain, however, is that consumers have shown a preference for toning shoe technology and industry forecasts predict continued growth.