• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13
  14. 14

Should Nike launch a Sugar-free Chewing Gum?

Extracts from this document...


SECONDARY RESEARCH INTO THE MARKET POTENTIAL FOR A NEW PRODUCT LAUNCH Coursework Secondary Research Assignment code BUX1 Should Nike launch a Sugar-free Chewing Gum? Introduction Before any company launches a product it first carries out market research in order to find out if the new product will work, make a profit for the company and increase the companies' market share. In this coursework I intend to carry out secondary market research in order to decide how feasible it would be for Nike to launch a new range of sugar-free chewing gum. The reason for using secondary and not primary research is mainly because secondary research tends to be far cheaper to collect than primary research. It is also easier to find and can be gathered faster. By gathering relevant information from several sources I will be able to get an overall view of the chewing-gum market. I will look at market shares, market growth, market size, competitors, health issues and all other relevant issues in order to make an educated decision as to whether Nike should launch a new range of sugar-free chewing gum. Brand Image This is relevant when deciding whether to launch a new product because a company's brand image can give a new product a helping hand in its early stages as a new product on the market. If a company has a good brand image and it launches a new product under the same brand name then that new product will inevitably gain that brand image which will more or less guarantee the products success providing all other issues of the product are fairly decent. E.g. Its taste and cost. Nike is the largest manufacturer of sports and fitness footwear, apparel, equipment and accessory products in the world (Source: www.business.com). ...read more.


where as its competitors spent very little. The reason Wrigley's dominates this market is due to its brand and brand loyalty, if Nike could transfer their 'cool' brand image to its range of chewing gum then I think that it could be a success. New Competitors Information on new competitors is useful as it can show if Nike will have to compete with a lot of new competitors if it launches a new product. It can also show how companies that have launched new products have done. For example if a new competitor joined the market and gained a significant market share then it would show Nike that it is possible to break into the market. No substantial companies have entered the chewing gum market for years. I think this is because companies are scared off by the immense presence of Wrigley's as the market leaders. However in 2001 Colgate launched a chewing gum called 'Colgate Dental Gum', it has aimed to get a 7% market share in its first year. This is an interesting move by a dental care company and may signal the start of several dental care companies launching a range of chewing gum. Also in 1999 Wrigley's did launch a new chewing gum called 'Ice White' which is a sugar-free stick gum which helps to whiten teeth. This chewing gum has risen quickly in popularity and had a 3.3% market share in 1999, just one year after entering the market. If Colgate Dental Gum does well then other companies may join the market, if this did happen it would make it harder for Nike to gain a market share as there would be many new competitors. ...read more.


* There is only three main competitors and therefore it could be quite easy for Nike to break into the market with sufficient Advertising and promotion. * Nike's healthy sporty image could be easily transferred to a chewing gum with the increasingly important issues of chewing gum being good for your health. And the negative conclusions to be: - * With Wrigley's having such a big market share (87.9%) it will be hard to establish the new product as to get any market share our product must reduce the market share of Wrigley's which has been the market leader for years. * Although Nike has diversified into other areas such as golf it has always stayed close to its roots as a sports manufacturer. By creating a new chewing gum product it would be entering unknown territory and a lot of money would have to be spent on research as well as designing the new product and manufacturing it. Overall Conclusion Although to look at it would seem that the positive reasons for launching a new chewing gum product easily outweigh the negative you must take into account that the fact that Nike has never sold a food product. This is a very big factor and creates a huge risk. However, I think that due to the fact that Nike is such a big company and due to its brand image I do think that it would be feasible for Nike to launch a chewing gum. I think that it would probably be wise for Nike to carry out extensive market research and R&D before launching a product. I also think that it would be wise for Nike to create a range of sugar-free chewing gums as it is shown that although Wrigley's do have a large market share, their market share is built up by many different brands of chewing gum. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Marketing and Markets section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Marketing and Markets essays

  1. Business Studies Coursework

    The Marketing Campaign Marketing possibility Describe Advantages Disadvantages cost Posters Poster advertising is to attract people in streets and towns. It is a cheap way to announce my message to the public showing the opening day, price offers, and new products.

  2. Marketing coursework

    From the Market research report I found out a lot about consumer demand. It said that the consumer franchise has been growing since the first food franchise, A&W, was introduced into the Malaysian market in 1963. These franchises helped to nurture a second generation of Malaysians that grew up with

  1. This coursework entitled "Marketing" is about creating a marketing strategy for a new or ...

    They help reduce the number of transactions. Without wholesaler - 9 transactions. With wholesaler - 6 transactions. As I have said Audi do not use wholesalers to help distribute their cars. This is because they sell their cars in their own showrooms so no distribution to retailers is needed.

  2. Operation Issues

    There should be a database linked to the codes to show how much stock is left, like in Argos, Tesco and little woods etc. In the business there should be someone who overseas the database and controls the stock levels, and they would be responsible for any errors made in the database.

  1. Business studies coursework

    Also the food outlet can advertise on websites and other people's websites which will help spread the word and also attract younger customers as young people go on the internet a lot. The disadvantage is that people on the internet may say bad things about you which may get you a bad reputation and could jeopardize your chance of expansion.

  2. Business- Open retail store

    given to us "The Cost of Advertising" - Business Studies handout Ms. R. Fraser http://en.wikipedia.org/wiki/Advertising 15-05-07 I did not know many of the advantages and disadvantages of the advertisement method, but then I did some more research on the internet Task 7b)I need to identify the costs of the different

  1. Investigating Market

    Specific is set out clearly so the business can see what they are trying to achieve. Measureable so they know when it has to been achieved by. Agreed so that everyone is involved with the total agreement. Realistic otherwise the objectives will be ignored and not met.

  2. Marketing research - To decide which products and services will be available in my ...

    Sayania created had all her contact details on it along with a few of the services that she provided, the card also included an attractive picture. I have decided to create business cards for Asian Beauty to hand out to all the customers.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work