This paper explores Nikkei and their ability to overcome the consumer market. We will take a look at their strategic planning as far as concept, market segment and value proposition. Throughout this paper we will explain how Nikkei is one of the most sustained companies in our markets. The reason behind their success, their new inventions and solutions that seem to benefits athletes all around the world. Brief Description of the proposed retail brand concept Before going into just talking about the brand concept I would like to define market since market is what drives any retail brand.
According to Management Study Guide, “A set up where two or more parties engage in exchange of goods, services and information is called a market. “(Management Study Guide) It is also known as buying and selling which occurs in two or more parties. Market is made up of people that have a need for buying products; as in one common product class that everyone wants to purchase which shows their ability to buy such products. I would also like to mention a second definition of what a market is? A market is a group of individuals or organizations, or both, that need products in a given étagère and that have the ability, willingness, and authority to purchase such products. “(Kapok, 418) The reason behind defining a market was to better match our customer needs and most importantly to know their needs now. It also helps us know who our target market is and therefore we can communicate easily with them! We can also get more customers by marketing. The retail brand concept that we have chosen is the Nikkei brand which is a well known brand for athletes. It carries almost about all types of sportswear from shoes, clothes and gears.
Nikkei has a great online site that shows their session, “bring inspiration and innovation to every athlete in the world. “(Nikkei) Nikkei loves invention and so their company offers products and services that will give you an amazing experience while using their products. Nikkei tends to not just work for today but also tomorrow as well by coming up with new ways to solve problems for the upcoming next generation. When we mention sustainability, Nikkei is one of the most sustained companies in our markets. The reason behind their success is their new inventions and solutions that seem to benefit athletes all around the world.
After all, a brand is not just bout enticing people to buy your product but to give the people what they need. When we talk about a need, it is a solution that we are referencing. There must be a problem and only then can we come up with a solution to resolve whatever the problems that there may be. Potential Market Segment What is a target market? “A target market is a group Of individuals or organizations, or both, for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group. (Kapok, 41 9) As I have mentioned already, Nikkei is a brand for athletes but if we think bout it Nikkei has its own stores as well as it can be found in the department stores as well so therefore it means anyone can purchase Nikkei branded products but the target would always be those athletes that play sports. In terms of ages, mostly young adults tend to purchase more of Nine’s brand. According to the Market Realist site, Nine’s main focus is on women as customers since it is a faster growing market than men.
Nikkei carries all types of products for all types of sports such as soccer, basketball, golf, tennis, and more. Nikkei has been able to sustain in the market because they have obviously made it clear as to who can use their products. They must have used something called the Market Segmentation. “The process of dividing a market into segments is called market segmentation. “(Kapok, 421) Below is the figure of the process that goes on in Market Segmentation: Some of the common bases of market segmentation are: demographic, cryptographic, geographic, and behavior.
When we talk about demographics, we are mentioning age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion and social class. Have already mentioned that the target market in terms of ages are young adult athletes that tend to buy more and more to play sports or use it for gym purposes. Cryptographic would mean motives, lifestyles, and personality attributes. Athletes tend to obviously have a different lifestyle since they are always so active and Nikkei meets their regular daily active regime.
Geographic has to do with the region, state size and city size. Now region wise, Athletes are everywhere so would say this wouldn’t be a good base to use to come up with where the target market buyers might be… Behavior involves brand loyalty, benefit expectations, and volume usage. Nikkei has been able to be wherever there are Athletes and they have improved their products which is why Athletes still remain faithful and loyal to Nikkei as a brand. It has solved customer’s problems which is why they buy Nikkei brand. They are not really buying the brand but the solution to their problem!
In the fourth quarter of year ending 2014, “Revenues for NIKKEI, Inc. Rose 1 1 percent to $7. 4 billion, up 13 percent on a currency neutral basis. “(News Nikkei) Nikkei brand in just revenues made $7. 0 billion which is up by 13 percent in every key category and geography besides Japan. Nikkei still remains the most popular sports brand in the world because their revenues seems to be growing every year. Nikkei as a brand has been the best brand for sports of all times because they have offered Athletes what they were looking for! Value Proposition A value proposition is a promise from the brand to the customer.
In the value proposition you Want to let the customer know why they should do business with you. According to Investigated, the formal definition of a value proposal is “a business or marketing statement that summarizes why a consumer should buy a product or use a service. This statement should convince a attention consumer that one particular product or service will add more value or better solve a problem than other similar offerings. ” (Investigated). According to Instrumentally. Com, Nine’s value proposition is “To bring inspiration and innovation to every athlete in the world.
If you have a body, you are an athlete. ” Nikkei is one of the most successful brands in the world do to their ability to talk to customers. The biggest functional benefit Nikkei has is its ability’ to connect with people and they use a simple tagging, “If you have a body, you are an athlete” (Globetrotter). This tagging connects with anybody that as a desire to better themselves, and who doesn’t? Nikkei has come to understand the value people hold for sports, whether its for exercise, family fun, or competition people just love sports.
Nikkei also instills an emotional benefit into their customers, such as feeling engaged, active and healthy. Customers feel this sense of athletic performance when they wear or use the Nikkei product. Along with this emotional benefit Nikkei offers their customers a chance to be self-expressive by wearing Nikkei apparel you are letting others know that you live an active and healthy lifestyle, you are letting them know oh are an athlete! Nikkei also has developed a new website which allows its customers to express themselves freely by designing their own shoes.
Conclusion Since the rise of Nikkei in 1964, the “swoosh” has become a well-known symbol around the world. Nikkei as successfully entered the markets and have been able to capture a wide customer base to include not only professional athletes but also any individual that has the desire to better themselves Nikkei will continue to take the market by storm, as the revenue figures mentioned earlier suggest, but also because of their ability to adapt and invent in today’s markets. Nikkei has realized the power of the internet and each customers sense to be different and express themselves.
Nines new site offers customers the ability to design their own shoes right down to the color of the laces. Nikkei has connected with their customers on a level that most companies may never achieve. Their attitude, product selection and quality has led to a loyal and widespread customer base with over 746 retail stores around the world.