Nike has been in the game for almost half of a century and have been growing ever since. Nike is not just a name to the consumer. It's a lifestyle. It's the life people choose when they exercise, play a sport, and walk around. Everywhere you go, you will see the word Nike and its notorious swoosh on pretty much anything.
Nike has targeted its consumers who derive from all sorts of economic standing in society. They mainly target consumers ages 16-55 who possess high income standing or are part of the high income standing. The high income target market man cause medium to low income standing consumers to desire the product as well. And so far, this effect has occurred and has been occurring.
What makes Nike so attractive in comparison to its rival brands? For starters, they invest hugely into their Research and Development. Nike interviews customers to find what they can do to improve their products. As a result, they may put a logo somewhere noticeable, or have a commercial that includes specific scenes to attract more consumers. In addition, they also do testing on their products. This would include how the materials part of the product react to certain circumstances. For example, they would test the composite of a soccer cleat. This would include how it is affected with weight, in different temperatures, etc. Not only do they find ways to conform to the customer, they also are innovative risk takers. Nike has made products other brands would not dare to do.
Two of some of the most recent successful products are the Nike FuelBand and the Nike Flyknit Racer. The Nike FuelBand was priced at $150. It has an electronic screen filled with a variety of colors and can calculate the amount of calories burned, miles traveled, number of steps taken, and NikeFuel points earned. It was considered unorthodox because the Nike FuelBand was considered to be in a different market (the technology market). The other product was the Nike Flyknit Racer. It was also an unconventional product. It was a shoe that was created through "knit threading rather than multiple layers of fabric" (Austin Carr, Nike: The No.1 Most Innovative Company Of 2013, www.fastcompany.com). This unorthodox creation yielded extremely light shoes. The risk taking Nike took, hit the consumers fast and hard. Making innovative and useful products can cause shift the consumers behavior positively (As we see here).
Nike is not old. They have been competing with other brands for half of a century, but they have found ways to flourish like new. Through the heavy investments in their Research and Development Department and risky product creations, they have become one of the best brands there are. A lesson from one of Nike's tactics is to take risks through innovation. But be innovative in a way that serves the consumers better than before. The better it can be done, the more people are going to desire it.
No comments:
Post a Comment