New Balance's Trump Card - Sun After the Storm?

1. “New Balance’s Trump Card – will there be sun after the storm?” Group 9: Gabriella SvenssonSigne Bjæksted Jørgensen Georgi Stoimenov

2. Agenda 1. Company Profile: Made in the U.S.Incident: A bird told me.From hero to zero.Background: I swear, it’s not what it looks like!Decision: Sink or Swim?Make New Balance Great Again. Outcome Q&A 2. 3. 4. 5. 6. Agenda - Company – Incident – Background - Decision – Outcome – Q&A

3. New Balance Reputation Level: Hero Made in the U.S. • New Balance is a Boston-based, privately owned sports goods manufacturer • The core product in the product portfolio are sports shoes, with an emphasis on performance rather than style • Company seeks to differentiate, and justify its higher pricing, through superior quality – of both materials and crafting process • New Balance was often praised for its local manufacturing practices • In sum, and largely due to it’s commitment to local manufacturing, the company has been enjoying a ”hero” status: Agenda - Company – Incident – Background - Decision – Outcome – Q&A

4. A bird told me. 9.11.2016 10.11.2016 Agenda - Company – Incident– Background - Decision – Outcome – Q&A

5. Reputation Level: Zero From hero to zero. 15.11.2016 10.11.2016 11.11.2016 12.11.2016 “New Balance shoe owners are lighting the sneakers on fire to protest after company 'voiced support' for president-elect Donald Trump” “New Balance, Grubhub Called Out on Social Media for Overly Political Comments” “New Balance Sneakers Have Now Been Claimed by Neo-Nazis” “Statement on Trump Puts New Balance Shoe Company in Cross Hairs” Agenda - Company – Incident– Background - Decision – Outcome – Q&A

6. I swear, it is not what it looks like… ... or what did actually New Balance want to say? • The comment was directed at the TTIP agreement and it’s potential impact on import tarriffs • So what is the TTIP? “A trade and investment agreement, between the EU and the United States - our biggest export market” • … which would effectively … • ”remove tariffs and loosen regulations” Agenda - Company – Incident – Background- Decision – Outcome – Q&A

7. Sink or Swim? 1. What is New Balance’ most rational move in order to control the situation?How can the CEO and his team salvage his brand’s hard-earned reputation? 2. Reasoning Advocacy SilenceStrategy Accommodation Agenda - Company – Incident – Background - Decision– Outcome – Q&A

8. Make New Balance Great Again. 3. How can New Balance regain what was lost in terms of reputational capital? Would you advise for any specific course of action? 4. Agenda - Company – Incident – Background - Decision– Outcome – Q&A

9. New Balance’s reaction – yay or nay? 16.11.2016 Agenda - Company – Incident – Background - Decision – Outcome– Q&A

10. Best place to hide a dead body? January 2017 Agenda - Company – Incident – Background - Decision – Outcome– Q&A

11. New Balance Reputation Level Thank you for your active participation. Questions? Agenda - Company – Incident – Background - Decision – Outcome – Q&A