With Nikkei occupying around 45% of global market share in footwear and apparels and moving further ahead, much of the organizational success can be credited to its marketing strategy that have helped the organization achieve revenue worth billions every fiscal year ($18 billion being in 2008). Nikkei Inc. UK has a major market in the I-J for fitness trainers and shoes provided for health and fitness purpose benefits to the consumers. Nikkei understand the importance of market analysis and marketing strategy based upon those analytical processes.
Considerable amount of research and analysis have been carried on in understanding consumer needs, Auk’s environment and potential opportunities. This report consists of situational analysis SOOT of Nikkei in I-J and also presents situational analysis suggestion of ways in which competitive edge can be gained against its rivals with segmentation, targeting and positioning of the products. The importance of marketing objectives has also been highlighted in the report and thus provides Nikkei with a glimpse of marketing environment in I-J and the expectations with role of marketing mix (ups).
Nikkei has predominantly been successful in shoe manufacturing and distribution among the shoe manufacturers with its superior quality, high tech, ultramodern shoes that meet on going demand of the market and its trends. From professional athletics to most common need for fitness trainers, Nikkei has got fitness shoes and trainers in all shape, sizes and colors. Some of the most famous Nikkei trainers and fitness shoes are Nikkei + (spelled as plus), Air Jordan, Nikkei Shoo, Nikkei Lunar glide, Nikkei Air Zoom, Nikkei 360 and many more.
Nikkei is the sole distributor of Nikkei trade mark represented on each of these and many of its fitness trainers sold globally. High quality material, design and cut and technological enhancement of the shoes as per requirement of various activities thus make Nikkei the best choice for fitness trainers ND shoes. Marketing Analysis and strategic evaluation of a company is an important component of any organizational success. Without well-structured marketing strategies and road maps to planning and achieving them, no organization can be at the point where they want to be.
Nikkei in I-J covers a fair amount of market share and revenue for the organization. The huge market diversity, brand awareness in market and consumer base loyal to high quality products therefore help to its cause. On the other hand, UK market is generally health conscious and trendy. Trainers and fitness shoes are Hereford in much demand over last few years within the country itself. Marketing Audit (Nikkei Inc. ASK) Nikkei Inc. I-J follows management strategies that combine with six of the most important external factors that can have an impact on the organization.
PESTLE is a situational analysis tool that can be used by firms to determine their position against possible external influences such as politics, economy, society, technology, environment and law. Nikkei and its positional stand against background of UK market can therefore be analyses in the following way: Political Factors Nikkei Inc. As a considerably stable political environment and an economy welfare provided by the state. Considerable amount of legal requirements were accomplished by Nikkei during its entry in the I-J as an organization completing all political alignments.
Considerable amount of fitness shoes and trainers are imported in UK which is sold all over. However, Nikkei might have to face challenges if government drafts policy or quotas on Nikkei shoes that can be imported from its production sites such as Asia-Pacific. Economic Factors UK economy has been unstable in recent years. The double dip recession few years jack, inflation rate fluctuating abnormally, growing living costs, income tax rate increments and other economic factors directly or indirectly affected Nine’s performance in the I-J with comparatively weak sales figure.
Economic balance, employment rate and PDP all must be stable and firm enough in the economy to help a business sustain. Nikkei therefore needs strategic move that can guarantee its sustainability in such circumstances. Social Factors I-J market comprises of people from multiple culture, religion and ethnic backgrounds. Therefore, Nikkei needs to understand the social system and practice of el these people whenever approaching them. Sales and marketing of the fitness shoes should be therefore based upon social acceptance of methods, people’s lifestyle and their way of thinking.
For instance, consumers in UK who purchase fitness trainers are pretty health conscious and the numbers are growing as well. Hence, Nikkei needs to provide more health benefiting shoes and apparel. Similarly, social responsibility image of Nikkei has to be significantly boosted with accusations of running sweatshops in Nikkei factories in Asia which it has tried to improve with facilities, factory improvements and commitment towards further improvement. Technological Factors Technological factors are an important aspect that needs to be considered by Nikkei Inc.
I-J . Technological advancements in fitness shoes need to be updated and research and development of such apparels have to be advanced. With fitness shoes that are designed such for injury prevention, sole strengthening, speed sports, less sweating and many other features the advancement has been unimaginable. I-J customers are updated and spend good time researching on features and quality of the product they want. Nikkei therefore has to be technologically capable of providing customer satisfaction. Environmental Factors
Nikkei needs total understanding of UK market as consumers are concerned about how products they purchase can make an impact upon environment. Production materials, process and sites can be harmful to environment in many ways. This can be a grave concern for environmental activists and hence persuade consumer thoughts. Nikkei has to be able to inform the consumers in UK with their continuous efforts in making Nikkei shoe production environment friendly and use of raw materials and the production process least harmful to nature.
Legal factors Nikkei has to oblige with all the legal regulations and in relevance with companies operating in the I-J. They must consider their business privileges as well as legal responsibility in concern with marketing, promotion and sales in the Kingdom. Some of the legal acts that they need to consider are regarding press, trade acts, acts on sales and supply of goods, adverts and campaigning, television adverts, environmental acts and so on. Without its compliance of local laws and acts Nikkei would suffer a huge blow in gaining consumer trust as they cannot operate with efficiency.
With buyers focusing their mind on cost efficient purchase, Nikkei prices are a thought for many. On the other hand, Nine’s sweatshop factories in Asia which are not owned by Nikkei themselves but subcontracted had arranged Nikkei image among many people. Nikkei has considerably put much effort in improving the working condition and lives of its workers thereby. Opportunity: I-J market has lots of potential opportunities for the Nikkei. With numerous amounts of health conscious people and growing sport enthusiastic generation of youngsters, Nikkei has the opportunity to grab market by launching shoes and trainers as per the consumer needs.
Use of internet is wide and common in the I-J and e-commerce has been developing in a tremendous pace. Nikkei can use this opportunity to promote, inform and cater its consumers with its fitness trainers. Threats: Nikkei has been competing fiercely with rival companies such as Ideas, Puma, Oasis, Umber and others for fitness shoe production and distribution in I-J market. Besides, challenges from competitors, forged Nikkei footwear relatively cheap and of low quality are circulated by counterfeiters in market which has hampered Nines reputation and brand.
On the other hand growing economic uncertainty, government cuts and rising inflation have been challenging Nikkei sales. COMPETITIVE ADVANTAGE Competitive advantage can be defined as strategic advantage a company holds against the competitors in the industry. It can be marked as the positional state of company when it is able to create a benchmark in terms of profit in the industry. Nikkei has the competitive advantage over its rivals through wider market coverage, higher gross revenue and customer loyalty as well. Nikkei fitness trainers with their high quality design and attributes have been able to outperform other shoe makers.
Nikkei therefore wants to hold this competitive advantage over its rival sustainable. Competitive advantage can be achieved either by, Cost advantage techniques when production is made in massive quantity and rodents sold in relatively cheaper price or differentiation techniques of producing unique featured products against competitors and providing relative value to the good priced. In 2003, Seven Wholeness provided seven key factors that provide organizations with competitive advantage. Nikkei with all these consideration and seven key factors can boost its performance therefore in market.
The seven factors are: Economy of scale: Economies of scale refers to the term when production cost of a company is relatively lower than its sales revenue and earnings made are from massive sales. These impasses produce goods on regular basis and avoid shortage in the market. Economy of scope: Economies of scope relates to the idea that cost of production can be further reduced by other organizational means such as Joint administrative firms for different products, similar storage for different goods and cost effective methodologies used in production to distribution.
Strategic thinking: The core competence of any business to succeed in modern business world is strategic thinking. With enormous amount of competition and impediments that can affect the business, Nikkei should be able to analyses its internal and external environment, sees operational lapses so as they can provide effective strategy to eradicate arrears and achieve their objectives. Use of local market: Global companies such as Nikkei have ample opportunity to provide their range of products to local market in the I-J.
With well informed and health conscious consumers growing on daily basis, Nikkei can exploit the opportunity to provide its trainers in all parts of the country. Nine’s product range and standards are well accepted and with more quality products coming in it can boost with learning of local market and advantages it can take from. Ability to provide global services: Nikkei has been able to provide its product and service throughout the globe. With communication, transportation and various technological developments that have made international trade reliable, company such as Nikkei have been able to market and cater their business worldwide.
Use if information technology in global service is an essential tool which has been used by Nikkei to deliver its goods and services. Competitive advantage (Company specific): Every organization should have a distinct and unique feature which provides a competitive edge over its rival companies. Nikkei has been providing high quality outwear from their founding days. Superior technology, design and features of Nikkei footwear are second to none.
This very reason has made Nikkei achieve higher market share globally than its competitors by building excellent customer relationship. Human resource (competitive advantage): Nikkei and its success can be credited on high level to the employees of Nikkei who with their commitment, skills and attitude have made tremendous development and market coverage for them. Human workforce is an essential element of any business where firm should be able to provide the employees with business specific skills. This helps organization achieve cost out of the available workforce.
SEGMENTATION, TARGETING AND POSITIONING (STEP) The marketing strategy of a company starts from mission and vision statement to selection of market and then positioning of the plans and objectives of the product in the market. Philip Kettle (1994) provided segmentation, targeting and positioning as the essence of strategic management for any organization. Here, in terms of Nikkei Inc. I-J, we can suggest following steps to be followed for strategic move: Segmentation: Research on existing market, types of customers and distribution of similar market should be carried out.
Targeting: A target market (generally mass and more productive) which has to be served has to be analyses. Positioning: The plans are carried out to be performed in the target market and all the activities positioned. Nikkei Inc. UK should be able to research and develop the segments within I-J market where consumers with similar characteristics can be served. The three approaches of market segmentation such as differentiated, undifferentiated and concentrated can be used to determine segments and plan accordingly by Nikkei.
Nikkei can distinguish its market with several features and variables which determine the general concept bout products that Nikkei offer, fitness shoes in this case. Socio-demographic variables such as age, gender, occupation, income and family etc. Can be considered. It may also be based on geographic information such as area, area density, household and neighborhood, market size and more. Behavioral data can be assessed to determine customer loyalty, buying trends, user choice and others. Cryptographic studies would help Nikkei understand consumer lifestyle, fashion choices and many more.
Nikkei and its segment targeting approach in the UK Socio demography: Nikkei Inc. UK provides fitness shoe and trainers in wide range and signs to offer different kind of customers. Trainers and shoes come in all shape, size, specification and quality. Trainers in multiple ranges for men, women and kids are available in the I-J market. Sizes are marked effectively for fit in purpose and available readily in all the sales stores. Fitness trainers for men range from EYE least for Nikkei Zoom to IEEE highest for Nikkei Trainer 1 . Women have wide range of choice as well from Nikkei Air Cardiac designs costing mere EYE to IEEE for Nikkei Air Max+ 2011 id.
Kid products range from EYE to OHIO. Geography: Nikkei has made its presence felt n all the major towns and cities in the I-J. The points those are most likely to be consumer targeted have been covered as market by Nikkei. However, reaching the country sides would be a challenge and point of thought if Nikkei wants to expand its business all over the nation. Nikkei provides point of sale services in London, Birmingham city, Glasgow, Manchester city, Edinburgh and many other cities. However, internet usage is the only medium for other geographic parts to purchase Nikkei trainers.
Customer Behavior: It can be important for Nikkei to realize the importance of customer behavior in I-J. To learn more about consumer preferences and expectation, it is important to communicate with them and share their experiences. Customer loyalty can be earned by providing customers with benefits and services such as after sales, exchange facilities, warranty and making them feel cared for. Nikkei has to develop such credentials to learn more about customer status and capacity. Consumer cacography: Nikkei has so far been successful in providing trainers and fitness shoes to varying demands of consumers that are available in the I-J.
Prices of the trainers range from EYE to IEEE which shows that Nikkei has its focus n all sets of customer status. Some exclusive products are also sold in the market that focuses on trendy, fashionable and youthful nature of trainers and fitness shoes for the consumers. POSITIONING OF MARKET Nikkei Inc. Has been very successful in positioning itself as a global leader in athletic footwear market. Even in I-J, Nikkei has been really successful in covering huge market, enormous amount of consumer trust and therefore considerable amount of revenue for the company itself.
Technological advancement, high quality materials, innovation and design in Nikkei footwear are what even the competitors try to imitate. Even though several European brands provide Nikkei with stiff competition in the I-J, Nikkei has been efficacious in fending off challenges and come up with even better trainers and footwear as per the demand of demanding health conscious population. With a very competitive pricing strategy that is in concern with market expectations, Nikkei provides footwear of different sizes, design and price for different market segments.
Nikkei has invested considerable amount of time and money on research of I-J market since years which has made it one of the most trusted and loved brand in the I-J. Such strong position and market share therefore is a positive sign for Nikkei in days to come. NIKKEI AND ITS MARKETING OBJECTIVES AND GOALS IN THE UK Nikkei has been established as a reputed business enterprise in the I-J for years n Their capability and product effectiveness are reflected in choice of people in using Nikkei fitness trainers before any available option.
SMART based goals and objectives which relate to features of objective setting such as specification, measurement, attainment, realization and time are necessary for Nikkei to implement in their strategies. Here, we analyses how Nine’s objectives can be related to the SMART approach. SPECIFIC: Nikkei is the leading women fitness provider in I-J with revenue grossing worth 200 million dollars in 2010. Nikkei Inc. Wants to double the gross amount by the fiscal year of 2014. MEASURABLE: Nikkei targets revenue of $27 billion by the end of 2015 as well as cumulative cash flow increment to $12 billion.
ACHIEVABLE: Nikkei wants to provide I-J consumers with 100% cotton used fitness trainers based upon consumer survey in coming years. Nikkei Inc. Has plans to endorse its own athletics footwear during the 2012 summer Olympics in London by sponsoring all the American athletes participating in the games. REALISTIC: Nikkei Inc. UK wants to increase its market coverage in the I-J which is 18% now to 25% within 2013 as Nick footwear have had tremendously appreciated response and promotional endorsements are to be boosted during Olympic games. TIME BOUND: All afore mentioned plans and objectives of Nikkei Inc.
I-J are to be completed in certain time allocated for each objective completion. MARKETING STRATEGIES AND PROGRAMS NIKKEI INC. UK Nikkei Inc. UK would have to define its objectives and the process of determining the achievement of those goals. Out of various strategic plans available, Nikkei Inc. UK ca SE growth strategies using both product and market. Figure source: http://high. Me/nations-matrix-planning-for-growth/ Nikkei Inc. UK ca develop its strategies by using various methods of strategic moves such as Market Penetration: by providing competitive prices against others, promotional campaigns enhancing customer support and care etc.
Market Development: by getting into newer geographic area, building newer distribution channels, creating new produce dimension, creating new market segment etc. Product Development: by producing exclusive products, creating a new trend, using technological advancements in reduce, diversifying product ranges etc. Diversification: by producing new merchandises than usual for instance sweat free socks for Nikkei trainers, or other products to match Nikkei footwear and apparels such as caps, Jogging scarf etc. THE MARKETING MIX (UPS) FOR NIKKEI INC.
UK Nikkei Inc. I-J and their marketing strategies may be subject to changes from external forces of environment such as politics, economy, society, technology, environment and law. The company however has no control on these factors and have to make adjustments on several occasions. The 4 up’s are variables that the organization can intro within its own marketing strategy and is generally known as 4 up’s of markets mix. Here, we analyses Nikkei Inc. And its marketing mix. Product: Nikkei should be able to provide product variety to the consumers in I-J.
With people interested in different sports, Nikkei can make an impact on market here. The quality and features of the new trainers have to be of highest quality, design and durability. Latest trends and technology used in performance enhancement, accident prevention and safety of athletes should be made available in Nikkei trainers. Sizes and shapes have to come out in all different ways and the products need to be attractively packaged as well. Price: Nikkei needs to focus on all kinds of customer and research on the customer behavior or purchasing pattern in the I-J.
Though Nikkei already provides trainers from as cheap as EYE to IEEE and more, the prices need to be Justified. List of the prices and their features marked with products can be helpful. Price discounts on times can be helpful for boosting business. Place: Nikkei should focus on locations where footwear can be retailed, distributed or sold more efficiently. Study of market is necessary to determine where Nikkei can make best out f its sales. Placement in this case may be stores around sport clubs, distribution to other sellers and others.
Information technology has covered almost the whole part of I-J which can be utilized by Nikkei to exploit the market and attract the customers. Promotion: Nikkei Inc. Has used several of global athletes as brand ambassadors for the company. Their very link with the company and attachment has provided lime light to the Nikkei trainers as well. The company can advertise its trainers through media; create sales promotion from time to time and even sponsor future sport vents to promote their products as well.
Conclusion/Recommendation: Marketing Strategy is an important aspect in achieving the organizational goals and objectives. Only with considerable investment in analyzing Nikkei Inc. ‘s strength, weakness, opportunity and threats can the organization implement marketing strategies. Nikkei enjoys good market presence and customer loyalty in the kingdom and thus can improve further. From the report, we can recommend some of the following aspects for Nikkei; The emerging youth culture and trend is an opportunity for Nikkei to market its products.