Nike Inc Essay Example | Topics and Well Written Essays - 1500 words

Nike Inc - Essay Example According to the report in terms of behavioral segmentation, the product is target to the loyal customers. The product is priced at $149, which makes the product a luxury product. The product would therefore not greatly appeal to the price sensitive consumers and they may look for the same product offered by cheaper brands. Since the product is more of a luxury than a necessity, the price sensitive consumer would be generally not attracted towards the product.This paper discusses that  product development strategy is best suited. This is because the product is new, with a few modifications from the first generation Fuel Band but the market remains the same. With this product, Nike is and should continue to target its existing consumers which are sports loving people who live and enjoy an active lifestyle. They are mostly high-end sophisticated consumers to frequently and even occasionally consume luxury products such as the Fuel Band.  In terms of the environmental uncertainty Ma trix, the product is positioned as high uncertainty. Products positioned in this area of uncertainty have the following characteristics: dynamic and unpredictable market; involves many components; requires high skills and knowledge.   Since the Nike Fuel Band fits in all these areas, it faces high uncertainty in the market.  In terms of competition, the company faces competition from mainly three other products: Jawbone UP, Fitbit Flex and Basis.... This is because the product is new, with a few modifications from the first generation Fuel Band but the market remains the same (Kelion, 2013). With this product, Nike is and should continue to target its existing consumers which are sports loving people who live and enjoy an active lifestyle. They are mostly high-end sophisticated consumers to frequently and even occasionally consume luxury products such as the Fuel Band (Sherman, 2013). The product, Fuel Band, in this case is a relatively new product. Nike had released the first generation of Fuel Band in the beginning of 2012 but a more modified version was developed in the end of 2012 known as the Nike + Fuelband (Nike Inc., 2012). Environmental Uncertainty In terms of the environmental uncertainty Matrix, the product is positioned as high uncertainty. Products positioned in this area of uncertainty have the following characteristics: dynamic and unpredictable market; involves many components; requires high skills and knowledge. Since the Nike Fuel Band fits in all these areas, it faces high uncertainty in the market (Robbins and Coutler, 2007). Competitor analysis In terms of competition, the company faces competition from mainly three other products: Jawbone UP, Fitbit Flex and Basis. A general comparison of the features of these products is shown below: Feature Fuel Band Jawbone Fitbit Flex Basis Price 149 130 100 200 Battery Time (in Days) 1-4 10 5 4 Compatible Applications 3 10 27 0 Blue Tooth Yes No Yes Yes Water Proof No No No No Water Resistant Yes Yes Yes Yes Unique Features Calories, Time, Steps, Nike Fuel and Daily Progress Vibrating Alarm Vibrating Alarm Pulse, Sweat and Temperature Compatible With iOS and Web iOS and Andriod iOS,