Marketing Management

profilenaifkhleef
MGT201CASESTUDY3.pdf

FROM THE COUNTERCULTURE TO THE RUNWAY: HOW DID

BIRKENSTOCKS BECOME FASHIONABLE? Hippies wear them. Rebels,

dropouts from conventional consumerism, flower children-all images

traditionally associated with Birkenstocks, the clunky, cork soled sandals

that have been issuing forth from German factories for 240 years.

Although the company has introduced a few variations, such as a clog or

rubberized straps, the look of a Birkenstock is immediately recognizable

and little changed from its humble beginnings. 45

All these features suggest it is a poor candidate as a fashion product.

Rather than changing every season, the footwear has stayed largely the

same. Rather than focusing on the appearance of the offering, the

product design stems solely from considerations of comfort and

orthopedic safety. Furthermore, they continue to be made in relatively

expensive German factories rather than having production shipped

overseas to lower the costs .

Considering these factors, it seems strange that Vogue has called Birks

"sexy" and Glamour named it the shoe of the summer recently.

Explanations for this newfound popularity with fashion's elite are varied

and unproven. One fashion blogger explained that after years of wearing

only uncomfortable, tight, high-heeled shoes, slipping on a pair of

Birkenstocks was a life changing experiment in comfort, so she could not

imagine going back. Other fashion leaders, including Manolo Blahnik-

known for his sky-high heels and creative shoe designs-has offered his

endorsement, asserting that as long as the wearers have nice toes and a

good pedicure, the sandals can look nice .

The approval from these fashion leaders has led more and more famous

people to name drop the brand. In popular magazines that feature

interviews with trendy celebrities like Keke Palmer and Lorraine Pascale,

the Birkenstock name pops up as the shoe of preference on set. 46 The

shift certainly did not result from a conscious effort by Birkenstock

though. Rather, it caught the company somewhat by surprise, because it

had been doing business the same way it had for more than two

centuries. It has a virtually nonexistent marketing budget, does not

advertise widely, and did not pursue the endorsements it has received

from fashion trendsetters. Its CEO asserts that the popularity is a

reaffirmation of a basic, and seemingly outdated, marketing lesson:

Build a great product, and people will seek it out on their own

Still, the company is not immune to the appeal of being known as

fashionable. Accordingly, it is happy to tout its mentions in popular

media on the Birkenstock website. It also has developed a nice collection

of Instagram shots that emphasize its diverse assortment of options.

Along with fashion shots of models wearing its silver sandals with high-

fashion dresses, it also features hikers in remote locations, sporting its

comfortable looking, well-worn footwear

The combination of great product and strong branding has been highly

effective. Birkenstock's sales have grown by anywhere from 40 percent

to 50 percent over the past year in different regions of the world, and it

estimates that it will sell 20 million pairs annually by 2020. That's a lot of

toes to show .