How does the market research you have so far done support your chosen organization’s objectives?
Nike’s objective is to expand its line of apparel, offering maternity leggings to expecting mothers. So far, I’ve been able to get data on all the factors I felt we needed to achieve the research goals necessary for determining if the brand’s objective is feasible or not. That being said, one factor that I wanted to gather information on was Nike’s finances because I wanted to know if they could afford to roll out a new product. According to a primary source, they have a brand worth of $32.4 billion, so they have plenty of money for its launch (“Brand Value,” 2019). Another factor was the consumers. Essentially, I wanted to know which group of individuals would have a want or need for this product. Through primary and secondary data, I was able to identify the ideal target audience who are the soon to be moms of Upward Bound.
What industry trends (and possible future trends) have you identified regarding your product proposal, and what are some possible implications of these trends on your organization?
An industry trend regarding the new product is referred to as athleisure, which is when clothing designed for athletic activities is worn to work, school, the grocery, etc. This fashion trend will have a significant impact on the new product’s success as many women are likely to buy the maternity leggings for both working out and to wear in various casual settings. Another trend that surrounds the new product is known as eco-friendly activewear in which many consumers are now wearing leggings that are made from recycled micro polyester and spandex. If Nike were to incorporate sustainable materials into the new product, that would allow them to be part of the market for this type of apparel, which is predicted to generate a revenue of over $184 billion by 2020 (“Allied Market Research,” 2019).
How does your proposed marketing strategy align to legal, ethical, and industry standards?
The proposed marketing strategies align with legal, ethical, and industry standards. First and foremost, we will disclose all the materials in the leggings so that consumers can determine for themselves if the product is safe to use. The brand is ethically and legally required to share this information as well because some consumers may be allergic to certain types of fabrics. This company will also be using emotional branding through TV ads, but we will avoid any psychological manipulation tactics as they are unethical and could cause legal issues. Also, regarding Facebook, we will ensure that all content is truthful and that we have evidence to back up any claim that we make about the leggings. Otherwise, this too is unethical and illegal according to the laws set forth the Federal Trade Commission (FTC). And when we begin using an influencer, we will ensure that they let consumers know that they’re connected to Nike as we are morally and legally obligated to do so.
What limitations have you encountered in creating a market proposal for your product? Was this due to gaps in the market research you conducted?
I encountered a couple of limitations when creating my market proposal. One was narrowing down a target audience that could afford and was willing to purchase maternity leggings from a luxury brand. This can be quite challenging when research shows that many expecting mothers do not want to pay a “small fortune” for activewear because they’re only going to be wearing this apparel for nine months. This obstacle led to the second, which was trying to determine an effective pricing strategy. I understand that customers won’t purchase goods that they feel are priced too high, but Nike won’t succeed if I price the maternity leggings too low.
Allied Market Research. (2019). Retrieved from https://www.alliedmarketresearch.com/sports-apparel-market
Brand Value of the Sports Company Nike Worldwide from 2016 to 2019. (2019). Retrieved https://www.statista.com/statistics/632210/nike-brand-value/