5) P5 - Nike Market Research Presentation

P5 - NIKE MARKET RESEARCH PRESENTATIONBy Rahul Ahmed

INTRODUCTION

My name is Rahul Ahmed and I am from United Market Research™ (UMR).

As you know we have been hired to carry out a market research investigation in order to allow you to find what your market wants from your new product.

As a market research finder, I had three specific objectives to complete:

1. Find out what market the new line of trainers would be aimed at

2. Identify the wants and needs of said market

3. Recognize if the results have been successful or not

*PRESS TO GO BACK A SLIDE

THE RESEARCH CONDUCTED

We conducted both primary and secondary research in order to find the most appropriate results for how to create this new product.

The following slides will display the two types of research we conducted and why we did so/how it will help you.

PRIMARY RESEARCH

The primary research we conducted was the questionnaire, this was done to find out the wants and needs of Nike’s market to allow for a successful new line of products.

This was asked to 15 people during the time 7:00AM-8:00AM around Camden Town and 15 people during the time 8:20AM-9:20AM around Euston Station.

The location and time the questionnaire was conducted changed to allow for a more diverse amount of answers. Through analysing the results however, I feel that this did not really affect the answers though.

QUESTIONNAIRE

[PLEASE REFER TO THE FIRST PAGE OF THE HANDOUT]

SECONDARY RESEARCH

The secondary research that we collected was to find out what previous products and markets have taught us; this meant that we could sort through the mistakes and not make them again.

The research we were looking for were mistakes and successes from your firm, this involved looking back at products, market research, etc. from the past few years.

The following slides will have a few examples of the secondary research we have found and I will provide an explanation on why this is useful to you.

NIKE FUEL BAND

The Nike Fuel Band was Nike’s impersonation of a smart watch; it was created and marketed as an exercising accessory which would aid people trying to stay fit. It acted as a fitness monitor and activity tracker by counting the calories you have burnt, steps taken, progress made, etc. The product itself was a simple band which could be paired with your smart phone and the Nike app.

The band was discontinued in April 2014 due to a lack in sales and an increase in the amount of complaints it gained from the customers. The reason for this was because Nike were using a formula invented in 2006 for a market in 2014; the market research was not conducted and Nike ultimately knew nothing about their customers.

This shows to us that researching the market continuously is important, they need to be briefed into what the new products are because preferences, wants and needs of the customers change.

NIKE AIRFORCE ONE

Nike Airforce Ones are one of the most iconic Nike trainers to ever be created; originally only in black and white, they now vary from many designs, colours and even heights.

These were originally released in 1982 as a unique product and shoe design that had never been seen before. After a year however they were discontinued due to it being too unique and different from the common fashion of the time. However, after observing the market and conducting research, Nike had decided to re-release the trainers in 1986 with improvements to suit the customers.

This shows to us that even if the products don’t do well with the market, it is not a complete failure as they can be improved and re-released for the current or even a new market.

SECONDARY RESEARCH

The rest of my secondary research consisted on finding out popular products released by Nike and understanding why they were so successful. The following are links to products created by Nike which have become a success due to strategic marketing, appropriate branding and the perfect market.

Nike Air Jordan: http://en.wikipedia.org/wiki/Air_Jordan Nike Airmax series: http://

en.wikipedia.org/wiki/Nike_Air_Max Nike: Just Do It trademark: http://

en.wikipedia.org/wiki/Just_Do_It

WHAT WE FOUND OUT

The opinions varied based mainly on the ages of the participants; the younger individuals were fond of the more flamboyant products and had buying habits which were surprisingly different to those who were older.

To look at the specific results that we have obtained from the questionnaire, please look at the data and visual aids which have been provided in your hand-outs.

[PLEASE REFER TO THE HANDOUT]

RECOMMENDATIONS

By judging the results obtained from the primary research, I would suggest that you market your new line of trainers at both males and females since Nike trainers are more or less equally popular between the two genders. This means that it would be wise to brand the product as unisex as it allows for a wider market.

The age of the market is something you should consider heavily; it seems that most of the customers are teenagers or young adults so they should be the main market. Anyone over the age of 30 wearing Nike trainers can be seen as a minority.

It seems that the Nike products are used both for casual wear and fitness equally; this means that the new products would sell well if there is consideration for both these factors. I would suggest marketing the new trainers as ones which are both durable enough for casual/daily wear and lightweight/ergonomic enough for fitness.

RECOMMENDATIONS

We can see from the results that Nike is the most popular brand between the participants of the questionnaire, however the biggest rival is Adidas as they don’t fall far behind. This is useful to us as it means they are doing something right, which we can improve on. I recommend researching on the company’s secondary research for further aid.

After observing the results, we can see that trainers are often bought in the span of 6-12 months. This would mean that most shoes often last for up to a year or that customers look for new styles/designs. I would recommend not overspending on better materials which would last for a long time and focus on keeping the design appealing.

As we can see, customers are willing to spend a large amount of money on their shoes; so the more expensive it is, the better quality they are expecting. Most of the ones who tend to spend less on shoes are the same individuals who switch shoes frequently.

RECOMMENDATIONS

The Roshe Runs which are known for being stylish running shoes are the most popular amongst the individuals taking the questionnaire. The second most popular are the Air Huaraches which are known for their unique style and design. This shows to us that the new products should carry the strongpoints for both of these products to get maximum appeal from both of their markets. I suggest creating the new products to achieve the same feats the Air Huaraches and Roshe Runs have; meaning that the new products should be unique and stylish whilst lightweight and durable.

REFERENCES

To find out more of the Nike Fuel Bands, please visit http://www.techtimes.com/articles/5838/20140421/nike-fails-to-fuel-its-fuelband-dream-what-really-went-wrong.htm

To find out more on the Air Force Ones, please visit http://en.wikipedia.org/wiki/Air_Force_1_%28shoe%29