New Product Launch

New Product Launch

MKT/571

New Product Launch

Product refers to an item or service developed because of a process to satisfy consumer needs. A product undergoes a life cycle which involves introduction, growth, maturity and then finally declines (Hanks, 2015). The product life cycle concerns the evolution of the product through the introduction, growth, maturity and decline phases. Similarly, the length of the life cycle is influenced by marketing mix as well as other market activities. In this regard, a company such as Nike Inc. allocates significant resources in a bid to understand market activities and develop effective plans for the introduction of new products. New product launch entails the decision made by an organization to introduce a completely new innovative product or a regenerated existing product in the desire of meeting the primary objective. Therefore, it is imperative for an organization to enhance the launching of a new product to ensure more consumers are aware of the products as well as the features, which heighten the success of the new product in a competitive business environment.

Nike Corporation Product Description

Recently, Nike has developed a new line of sports shoes suitable for baseball players and track runners, which the company intends to launch before the American Baseball season commences as well as the world track events in Germany (Nike Inc., 2017). Nike Inc. is an American based multinational enterprise that deals with various products such as clothing, shoes and sportswear. Over the years, Nikes’ products have revealed a great brand globally; despite stiff competition from rival companies such as Adidas a Germany multinational corporation. Nikes’ products face stiff competition from local products, such as Reebok in the USA Market as well as Adidas in the German market.

New Sports Shoe Product Launch Strategy

The new sports shoe for baseball and track athletes by Nike will be rolled out in three primary stages in the desire of ensuring the success of the product launch as well as a realization of high proceed. The first stage will entail the pre-launch phase aimed at introducing the product in the market. The phase will enhance the awareness of the new product to the potential consumer such as a sports teams, as well as spectators for a team. The pre-launch of the new shoe will be conducted on the social media websites with a primary objective of gathering information; feedback and comments from the audience on the social site regarding the product (Chiu, Chen, Shyu, & Tzeng, 2006). The second phase will entail the physical launch of the product by the company, which will involve a press brief, sales ramps, bonus selling as well as the general grand opening of the product to the consumers. The last phase will entail the product post launch, which will involve an evaluation of the success of the launch as well as provide the success story of the new product penetration in the domestic as well as the international market.

Nike Inc. S.W.O.T Analysis

StrengthStrong brand nameCapacity innovationStrong customer associationEffective marketing technique WeaknessHigh product price as compared with AdidasDecreasing U.S market share due to increased competition by Reebok among othersCurrency exposure
OpportunitiesExpanding in the emerging international markets, such as ChinaIncreasing sporting events globallyFashion brand image ThreatsStiff market competitionFluctuation of global currencyTuff economic times

Product Mix Strategies and Product Lifecycle

Different stages of the product lifecycle are associated with unique characteristics; for instance, the introduction phase of a product or service, which involves a huge amount of market familiarization. Notably, Nike Corporation’s newest product targeting players and fans of baseball and track events is one of several products in Nike’s product mix. The primary objective is to revitalize the other products decline phase in the product lifecycle (Orcik, Tekic, & Anisic, 2013). Notably, Nike’s product operates in a fashion industry that is highly dynamics due to current shifting fashions. The company achieves market saturation, which prompts the need for strategies to revive the product through development of a new product or even market segmentation. Similarly, Nike has a strong brand name which heightens the capacity of the company, and the products earn penetration into the market despite the competition presented by similar products.

Comparison of Nike New Sports Shoe with Reebok Sport Product

In the American market, Nike products face stiff competition from Reebok sportswear items by Reebok Inc. that operate in the same market. In comparison, Nike products, as well as the items by Reebok, offer an alternative in for American Players, thus, the need for Nike being innovative in the dynamic industry as well as producing quality goods that meet the market expectation. In the American market, the launch of the new product for baseball and track shoes by Nike would face competition from Reebok because it is a product that depicts strong branding in the market. However, it would be easier for Nike to launch the new product because the company enjoys the biggest market share in the domestic market. This information is in addition to the fact that the launch, comes in the decline phase of Reebok sports shoes and in the beginning of a new baseball season. The timing for the product plays an imperative role in ensuring the success of the new product penetration in the market.

Comparison of Nike New Sports Shoe with Adidas Sport Products

Nike international market in Germany targets world track events, which faces stiff competition from German’s product by Adidas Corporation. The products by the two-enterprise trade companies in the same industry provide an alternate product for the consumers. However, the German market is highly familiarized with Adidas, which is a home company as opposed to Nike, which is an international company. Nike is expected to carry out an intensive promotion during and after the launch of the new baseball and track events shoes to counteract the competition fronted by Adidas in the international market. Therefore, market penetration for Nike in the global market would pose various challenges in which Nike Inc. should adopt various tactics to enhance the ability to break through the barrier to entry of the new product in the international market.

Target Audience

The dynamics of the market, both domestic and international, allow the company to prevail in specific conditions. Nike targets a sports market and achieves this by promoting and sponsoring sporting activities. Furthermore, the presences of international federations that govern the standards of various sports provide a ready market for the company globally. For example, Nike sponsors athletic teams in Africa during international competitions such as the Olympics; hence the company can reach markets previously unavailable. Evidently, sponsorship deals are a great tool for marketing and endorsing a product as it allows the company to set the terms of the contract. In any case, when the company endorses star athletes, such as Usain Bolt in the Rio Olympics, fans and followers of these stars become a ready market for Nike products.

References

Chiu, Y. C., Chen, B., Shy, J. Z., & Tzeng, G. H. (2006). An evaluation model of new product launch strategy. Technovation, 26(11), 1244-1252.

Hanks, S. H. (2015). The organization life cycle: Integrating content and process. Journal of small business strategy, 1(1), 1-12.

Nike Inc. (2017). Transforming manufacturing. Retrieved from http://about.nike.com/pages/transform-manufacturing

Orcik, A., Tekic, Z., & Anisic, Z. (2013). Customer co-creation throughout the product life cycle. International Journal of Industrial Engineering and Management, 4(1), 43-49.