11 o Nikes strong brand recognition factored in with their brand loyalty leaves

11 o nikes strong brand recognition factored in with

This preview shows page 11 - 15 out of 21 pages.

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o Nike's strong brand recognition factored in with their brand loyalty leaves a dedicated cult of Nike fans waiting to purchase Nike’s new release. o The “Joyride” has very general appeal allowing it to be marketed toward various demographics as a versatile shoe o Premium quality in line with what consumers have grown to expect from Nike footwear Weakness o The shoe price point sits at $180 which keeps it out of range from some more cost-sensitive consumers o Lack of advertising surrounding the shoe hints at lack of confidence from Nike that this can become a flagship shoe o With previous releases, Nike has had celebrity endorsements but this has not been the case with the “Joyride” leaving the shoe with little exposure to the general public Opportunity o The “Joyride” offers significant versatility allowing many different uses however this could also be a downside as it lacks a concrete identity it may have trouble finding its target market o This product uses value-based pricing which considering the nature of the product can help sales as many people purchase Nike shoes based on perceived value o As this is the first implementation of the “Joyride” technology this online exclusive launch can serve as a baseline as they monitor reaction to the shoe and 12
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explore possible expansion the “Joyride” technology into other product lines if successful Threats o There have been mentions that Nike is not the first to implement this technology as many cite previous Puma releases that use similar technology. If true it could hurt sales as one of Nike’s value propositions is the uniqueness of its technologies o Even though all publicity is good publicity Nike is a very socially conscious corporation and after the shoe’s announcement environmental concern about the materials used arose possibly creating negative feedback from the public. Objective and Issues Nike’s main objective for the “Joyride” is not to gain market position or sales but release a minimum viable product implementing its new “Joyride” technology. This marketing strategy draws similarities to the original implementation of their “Air” technology in which they tested out the new technology before they began implementing it into their other product lines. First-Year : Nike’s first goal with the implementation and release of the “Joyride” is to gauge the market similar to the release of the “Air” technology in 1987 with the “Nike Air Max”. As the “Nike Air Max” was a risk but turned out as a customer favorite it paved the way for several other implementations of the “Air” technology and solidified Nike’s position. As Nike introduces the “Thermal Plastic Elastomer” with the “Joyride” the first-year sales goal stands at 200M take a risk again as they test new technology on the public, but if the shoe can generate similar interest as the “Nike Air Max” model Nike can seek to redesign the “Joyride” in their signature colorways such as the “Oreo”, “BHM”, and “What The” to inspire virality. 13
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Second-Year:
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