• by Sarah Mahoney  @mahoney_sarah, May 3, 2024

Merrell may be the market share leader in hiking boots, but it’s in trouble. The brand, owned by Rockford, Michigan-based Wolverine Worldwide, posted a 17% decline in sales in the most recent quarter, falling to $161.8 million. That slump comes even as other brands saw gains -- particularly with more lightweight shoes. So Merrell has launched the nimble Moab Speed 2, along with “Good Things Await,” a campaign to bring new buyers into the category. Pallav Tamaskar, who joined as the new chief marketing officer five months ago, tells Marketing Daily about the latest work.

Marketing Daily: What are you hoping to accomplish with the new effort?

Pallav Tamaskar: The definition of hiking continues to evolve. While we’re still No. 1 in market share, we know consumers see hiking differently and think of it as a way to connect with the outdoors, not necessarily climb a mountain.

This generation is highly depressed and anxious, based on world events and socioeconomic pressures. They just want to step outside to take a break from all of that noise. Our purpose is to connect them to the outside. Not everyone has access to go on long, traditional hikes. They just want to take a stroll outside, even if it's Central Park. Either way, we want people to understand this brand is for them, unlocking the power of nature no matter where they live.

Marketing Daily: The ads are pretty, shot in places like the volcanic terrain of the Canary Islands and city streets. Many of the ads include a window frame. What’s the meaning of that device?

Tamaskar: It’s to show them that the minute they step outside, a window opens, taking them from their stress zone to a completely transformative state, where they can feel the joy of nature.

Marketing Daily: Is the hope that non-hikers will discover you?

Tamaskar: Our current brand awareness is high in the category, at about 60%. But the consumer we’re looking for -- someone we call the experience seeker -- is not necessarily in that category. This seeker tends to be a little younger, with a different definition of hiking. So we’re looking at their journey differently, from an ad they’ll see on Hulu to social media to what they might see in a store.

Marketing Daily: How else is this experience seeker different from your core buyer?

Tamaskar: Traditionally, the attributes consumers shop for are more functional: comfort, fit and form. That is the brand's DNA. The experience seeker sits at this intersection between form and emotion. We combined that insight with aesthetics.

Marketing Daily: Old-school hiking boots, including some of Merrell’s, are big and heavy -- the thinking was that they needed to provide the ankle support required to climb in, let’s say, the Alps.

But the best-selling shoes are far lighter. Lightweight trail runners from companies like Hoka and On Running are flying off the shelves. And brands like the North Face have done a great job designing the hiking look for urban use. How much is that evolving competitive set shaping your new approach?

Tamaskar: We have a lot of nontraditional competitive brands.I look at our competition with a healthy nod to what they've been able to accomplish. And we are paying attention to how consumers respond to our competitors’ aesthetics and design, as well as shoes that seem more approachable. The Moab Speed 2 speaks to that, and that shoe has been selling well since we launched it in January.

Marketing Daily: What’s the media strategy? You’re using print, social, in-store, display and film, right?

Tamaskar: The experience seeker is not a new target for us. Merrell started embracing this target a few years ago. The journey keeps evolving. We’re constantly testing our messaging, as well as media-mix methodologies. We are hyper-focused on channel mixes that best intersect with this experience seeker, from the top of the funnel down to display banners and social assets, trying to drive conversion.

Marketing Daily: Sales are always the goal. What else are you watching?

Tamaskar: In addition to sales, adding two more KPIs is imperative. First, we need to bring in new buyers. I have been pushing the larger organization to make sure we measure brand health from a new buyer standpoint. Second, we need to measure brand health through the cool factor. We need to track it constantly and know whether that coolness is going up or declining.

Marketing Daily: The cool factor is fascinating -- and elusive. How do you chase it -- with influencers?

Tamaskar: The lens has to be 360 degrees because we are talking about a single moment when the consumer experiences a brand. So, activations with our influencers and athletes are all part of it. Coree Woltering, a trail runner and one of our athletes, recently did the L.A. Marathon and not only got his best time ever but came in 26^th overall. So yes, that’s all part of growing the brand and building resonance and consumer love.