Market Research Proposal for Nike

Market Research for Nike
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Market Research for Nike
IntroductionIntroduction of a new product in the market comes about with various issues. In this case, Nike intends to introduce a smart shoe in the market as one of its ways to maintains its position as a global leader in the sportswear industry. As a result, market segmentation by the company is important to achieve this goal.
Definitions
Demographic segmentation comes about when a market is segmented based on elements such as company size and type of industry.
Geographic segmentation comes about when the market is segmented depending on the geographical position of the target audience.
Psychographic segmentation comes about when the market is divided based on elements such as lifestyles, personality, and social class.
Behavioral segmentation arises when the market is divided based on attributes such as loyalty, knowledge, awareness, usage and purchase patterns.
Importance of the Brand
Nike as a brand is very important for the growth of the company operations worldwide. People may identify themselves with a brand due to the nature of products that the company produces (Buil, Catalán & Martínez, 2016). This new product is intended to serve the general population all over the world. However, people who do not have electricity in their homes are the main target for the brand. The smart shoe as a brand has a unique competitive position due to the idea behind its development. The company believes that no person should have difficulty charging their mobile phones due to the lack of electricity in their homes.

In addition, Nike is a global leader in the manufacture of sport ware goods. Therefore, the introduction of the smart shoe by a company of such high reputation gives the shoe brand a competitive advantage.
Description and Analysis of the Current Product Uses
Currently, the company designers for research purposes have used the smart shoe concept. The primary use of the product is to solve the problem of charging mobile phones in many households without electricity. The charging chip installed inside the shoe will charge the phones battery as a person walks. Moreover, the shoe can be used for other purposes just like normal shoes. A person can wear the shoe during the rainy season because it is waterproof. This characteristic gives the person comfort and value for money.
Current Consumer Needs and Motivation
Companies introduce new products in order to expand and earn more revenues. When introducing a new product, a company is guided by motivation or idea behind such decision (Murphy & Dweck, 2016). The motivation behind the smart shoe was as a result of the lack of electricity in many homes in Africa. As a result, most of these people fail to enjoy communication technology since it expensive to find the power to charge their gadgets.
Marketplace Trends
The market is the most important element in the success of any business. Introduction of new products by a firm must be evaluated promptly to make the idea sell (Olsen, Slotegraaf & Chandukala, 2014). When introducing this product, Nike will have to check on the market trends. The overall demand for the product is not high at the moment. However, people from different countries are embracing the idea. The product will face competition from other sport ware manufacturers such as Adidas and Puma. These organizations have also floated the idea of introducing smart shoes under their brands. The company must also address the idea of economics for the whole initiative. For instance, the shoe is being manufactured with the idea of providing charging solutions for the less privileged in the world. Therefore, the cost of the shoe must be one that the targeted population can afford.
Conclusion
Market segmentation helps many companies achieve their sales target easily. This is because the target audience is identified in order to simplify issues such as marketing. As a result, Nike will have to segment the target market appropriately to achieve its goal.
References
Buil, I., Catalán, S., & Martínez, E. (2016). The importance of corporate brand identity in business management: An application to the UK banking sector. BRQ Business Research Quarterly, 19(1), 3-12.
Murphy, M. C., & Dweck, C. S. (2016). Mindsets shape consumer behavior. Journal of Consumer Psychology, 26(1), 127-136.
Olsen, M. C., Slotegraaf, R. J., & Chandukala, S. R. (2014). Green claims and message frames: how green new products change brand attitude. Journal of Marketing, 78(5), 119-137.