Marketing Objectives for Nike Sports Drink free essay sample

Nike will have a number of different marketing objectives for their isotonic sports drink, Nike Go. A main market objective will be to establish the isotonic drink as the most credible sports drink in the market. We will write a custom essay sample on Marketing Objectives for Nike Sports Drink or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This will not just happen though, this can only happen through a lot of promotion and appeal. Creating strong consumer awareness is very important in gaining market share as it is a completely new product from Nike. This can be done through promoting the product, Nike Go, and allowing consumers to become aware that Nike has this new product. In order to establish brand recognition, there needs to be a capture of market shares in the sports drink segment. This will mean the product, Nike Go, will be well known and therefore will be able to compete well within this market. Ultimately, the overall objective is to become the top market leader. This means being the most popular isotonic sports drink in the market. Market Segmentation Today we are in an age of intense competition, so it is vital to develop a product for a specific market segment, which concentrates on one type of product. Our product, Nike Go, is an isotonic sports drink in a very competitive market. It would not be cost-effective selling to all the segments of a market. Instead, it is better to focus on the segment which will get the largest share for the company. The marketing function will therefore focus on targeting this segment. (Irish Times – Business 2000). For Nike, they have to breakdown the market into four categories: geographic, demographic, psychographic, and behavioural. For geographic, the country that the product will be released is within the UK. This includes all over England, Scotland, Wales, and the North of Ireland, with the main cities involved in sport being targeted. This is due to the constant rise in the number of people exercising and engaging in sporting activities. Demographic segmentation takes into account the different factors involved, such as age and gender. Nike Go will be aimed at 16-44 year olds, and is targeting at both male and female. Psychographic segmentation is the process of dividing the markets into segments on the basis of consumer lifestyles and their interests and opinions. The lifestyle of the target market will consumers who are athlete and active individuals. Their interests will include being into sport and exercising. The final segmentation factor is behavioural. This takes into account when and what the consumers’ will be using the product for. The targeted consumers will be those who wish to use the product before, during or after exercise, to help quench thirst, prevent dehydration, and replenish depleted energy stores. Targeting The target market for Nike Go is people who engage in sports or exercise. More and more people are now getting involved in sports and exercise in an attempt to stay fit and healthy, while enjoying themselves at the same time. Nike Go aims to help give people participating in sport an extra boost, and the ability to keep on going for longer. This market is a tough market to break into, with GlaxoSmithKline Plc. (Lucozade) and Red Bull Co Ltd leading the sports and energy drinks category, with a combined value share of 64% in 2012. Although other manufacturers are slowly gaining traction with their own products, meaning that there is a place in the market for a new isotonic drink from Nike, an already well-known brand in the sports market. (Euromonitor) The main cities that will be targeted with Nike Go are the UK’s most active cities. These cities include London, as they were the last city to host the Olympics. South Wales as Cardiff is the home of British rugby. Nottingham and Sheffield as they are both home to two well-known soccer teams. Leeds Yorkshire as they are the proudest of all cricketing counties. Manchester because they have the two most well-known soccer teams in UK. Glasgow as it is footballing capital of Scotland. Belfast because it is the main city in North of Ireland with the main sporting teams from here. The reason this product will be based within the UK is due to the rise in the participation of sports and exercise. In 2012, a report found that 44. 6 per cent of adults in the UK participated in sport or exercise, which has increased from 2006, at 41.  2 per cent. Figure 1. Shows this, as well as the percentage increase throughout all of the years from 2005. This shows that it is a perfect time to release an isotonic sports drink into the market, as the number of people participating in exercise is constantly increasing. Figure 1. 1 The product will be aimed at males and females between the age of 16-44, as this age group are the most active in sport, as shown in figure 1. 2. Figure 1. 2 Description of Product Nike Go is a new isotonic sports drink that is formulated in a way to aid people in rehydrating themselves during or after exercise. Nike Go is rich in carbohydrates as carbohydrates are the most efficient source of energy. It also has a number of sweeteners and preservatives. The main part of Nike Go is the electrolytes it contains, which include chloride, calcium, magnesium, sodium and potassium, which diminish during exercise through sweat and bodily fluid. Nike Go replaces these electrolytes that are lost during sports and exercise which promotes proper hydration, an important factor in delaying the onset of fatigue during sports and exercise. In order for Nike Go to be successful in the sports and energy drinks market, it must stand out and appeal to the consumers, which involves a lot of branding. Branding will allow consumers to easily identify the product and creates an interest in it. Nike are a global brand, which will help in releasing the product. When consumers see that Nike Go has the ‘tick’ symbol on the bottle, they will know that it is from Nike which will make it have good customer awareness. This will attract consumers to the drink as they know Nike are a well-established and very good company. We also have come up with the logo ‘JUST GET UP AND GO’. This logo is in place to help make customers aware of our new product, Nike Go, and to try and give our product an advantage over competitors. The idea is that when people see or hear the logo, ‘JUST GET UP AND GO’, they will think of the Nike Go. This logo is also related to the product. It simply means to get up and get doing something practical, whether it be a quick run, or a game of football. Our product will then give them the boost they need, and help them get through their exercise activity. Product Life Cycle The first stage for Nike Go was development, where innovation was key. The second stage is growth, which begins when Nike Go is entered into the market. There is not a lot of rivalry at this stage, and there is low entry barriers. The next stage is Maturity, where the growth of Nike Go will level off, and there is a lot of rivalry. The key here for Nike Go will be to have high market share. The final stage in Nike Go’s life cycle will be decline. This is where Nike Go will begin to lose sales and decline, but new promotion and branding can help Nike Go get back to the growth stage again.