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Report on the Case Study

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Introduction

Report on the Case Study "Nike" Prepared by Joanna Griffin For Andrew Davison May 1st 2002 Contents Page Page 3 Terms of Reference Page 4 Summaries Pages 5-11 Findings Page 12 Bibliographies Page 13 Appendices Terms of Reference This report has been produced to provide an insight into the consumer decision-making process, buyer behaviour factors that consumers of Nike are influenced by. The report also details recommendations based on the findings. 2.0 Summary The report is about Nike, regarding the case study. The report elaborates on the aspects including buyer behaviour, brand image, consumer decision making, and marketing research techniques applicable to Nike. 3.0 Introduction Nike is the worlds number one sports shoe company. In the US Nike dominates 35% (source: see appendices) of the sports shoe market and its products are sold in more than 140 countries worldwide, it also holds one of the most recognisable logos (amongst others Coca-Cola etc) in the world, the Nike Swoosh. 4.0Findings Question One 4.1 The majority of Nikes customers (70%) purchase their products for non-sporting activities. Instead they are bought for their 'fashionable' brand image, rather than for their actual purpose. For example running shoes are designed for that purpose, running, but are usually purchased by the fashion conscious whose decision is based on their popularity and the appearance of the shoe. ...read more.

Middle

6. Post Purchase Evaluation It is important that the product lived up to the consumer's expectation, in order to secure a repeat purchase. Question 2 5.0 Example of micro-culture relating to Nike: Age- The age group with whom shares the majority of its popularity with is the youth market; these consumers are also the most unresponsive to advertising. The youth market often respond to peer pressure though, to where the 'right clothes and maintain the right image' Gender- In the youth market Nike targets both girls and boys, although the majority of the adverts are more influential on boys, for example the current advert starring high profile football players. This is because they want to be able to wear the same football boots that their favourite players wear. Region- Youths living in inner city areas are more likely to feel pressured into buying Nike to keep up with trends, compared to those living in more rural areas, as those living in inner city areas are exposed to more advertising, and perhaps attend larger schools where trends carry quickly. 5.1 Reasons that influence Buyer Behaviour in the Youth/Sports Shoe Market: 5.2 Culture Cultural factors which may affect the decision making process of a consumer include there values and beliefs. In 1998 an investigation towards Nikes employees in Indonesia created extremely negative press coverage toward them (see appendices) ...read more.

Conclusion

This incident was regarding employees in Indonesia, who's working conditions Question 4 7.0 The market in which Nike operates in is ever changing. The products that are produced are produced using the latest technology to meet the demands of the consumer. The demands from consumers are ever changing thus it is important that the market research techniques used are not time consuming. If they take too long by the time the evidence has been collated and a decision made based ion the findings, then the trend may have already moved on, and not be of demand anymore. Nike's image would be damaged by such an incident, as it would make their products appear dated. 7.1 Nike could consider market research through primary data, external and customer sources, and this research could be conducted either by Nike or an independent market research company. Using primary research Nike is able to find out exactly what it is that consumers want and then provide products to meet that demand. 7.2 External factors that could be researched are competitors, and changes and trends in fashion, which inevitably influence Nike. The findings of this research would allow Nike to maintain their fashionable and innovative image as well as market share. 7.3 Analysing the success of other competitors, and their current sales figures and range allows Nike to see whether there is anything their competitors are doing that they are not it also allows them to spot any gaps in the market if they wish to diversify. ...read more.

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