Criteria That Could Be Used to Identify Potential Target Segments - Essay Example

? Choose a product (Sport Shoe) and identify its key features. Outline the criteria that could be used to identify potential target segments for thisproduct (Sport Shoe) and discuss a potential positioning strategy for the product Executive Summary This essay mainly highlights the reputation and key characteristic features of the Sports shoes in global market among many other rival players. Along with this, it also describes the specific segments of the market to which the product is targeted. As well as brief background analysis of the industry, product and market place is also presented in this essay. And finally the potential positioning strategy by which the product might be positioned in the market is also discussed along with recommendations in order to enhance its demand in the market. Table of Contents Executive Summary 2 Table of Contents 3 Introduction 4 Analysis of the market place, Industry and product 4 Analysis of market place 4 Analysis of industry of the sports shoes 5 Analysis of Sports shoe 6 Market segmentation for sports shoes 7 Targeting strategies for sports shoes 8 Recommended positioning strategies for sports shoes 8 Conclusion 9 References 10 Appendices 11 Introduction This essay aims to analyze and examine the importance of the sports shoes in the entire segment of sportswear. Along with this, it also highlights the distinctive features and benefits that the sports shoe presents to its target customers (athletes). And it also highlights the industry, product and market background of the product (sports shoes) in the market among the other major rival players. And it also includes the segmentation and targeting and positioning strategy of the sports shoes in the market among other existing rivals. This essay mainly comprises of five phases such as introduction, market sector and industry analysis, segmentation, target market and the positioning strategy. Analysis of the market place, Industry and product Analysis of market place The analysis of the market segment of the sports shoes is vividly evaluated and is presented below. These are certain highlighted benefits of the sports shoes described in this essay among other major rival brands: Cushioning – it is one of the most essential requirement of the sports shoes. Due to the presence of a cushion cover, sole and heel of the foot gets huge range of comfort. As a result, it makes the game more exciting and thrilling for the athletes thereby enhancing the intensity of success. Arch support- it also provides support to the arch thereby enhancing the speed of running. Moreover, it also enhances the feeling of routine exercises, which is extremely essential for the sports loving individual Protection- it also helps in protecting the legs from any sort of injuries mainly due to the presence of midsole cushioning and arch support. Due to which, the demand and reputation of these sports shoes are enhancing in the market among other major rival brands. Superior athletic performance- as these shoes is the best for the runners, performing in long and high jumps. This is because of the high level of comfort and support offered by these shoes at the time of running. Therefore, from the above mentioned points, it might be clearly depicted that this sports shoes is extremely beneficial for the runners as compared to other major rival brands. Analysis of industry of the sports shoes In this age of competitiveness, sustainability is the most essential requirement for any organization, irrespective of segments. Keeping this fact in mind, maximum extent of the sports shoes companies operating in this segment desire to present inventive featured products such as the cushion cover, adjustable strides arch supports and many others. This acts as an advantage for the sports shoes to attract large array of customers towards it among others. Therefore, in-spite of extensive rivalry, the demand and reputation of these sports shoes enhances at a rapid extent as compared to other contending organizations as presented in the second graph of appendices. Moreover, due to competitive pricing policy, the strengths and opportunities of the sports shoes are enhancing thereby reducing the threat of substitute products or new entrants. Therefore, it might be described that due to the presence of these above mentioned features, the reputation and profitability of sports shoes is amplifying at a significant extent as compared to other renowned rival players of the sports segment. Along with this, it might also prove effective for these sports shoes to improve its craze and loyalty within the minds of its interested customers. Analysis of Sports shoe Highly stylish and comfortable – it is one of the most important reasons for the enhancement of the demand of the sports shoes in this aggressive market among other major rival players. This also enhanced the profit margin and total sale of the product in the market, which is extremely essential for sustainability among others. Competitive pricing – it is also another vital strength of the sports shoes in this segment among others. As a result, the demand and supremacy of the sports shoes are extremely high as compared to others as presented in the graph1 of appendix: Presentation of extremely comfortable and stylish journey- due to the presence of cushion covers and arch supports, the sports shoes presents extremely high level of comfort to the target customers. This is the prime reason for the enhancement of the demand of the sports shoes in the global market among other major contenders such as Reebok, Nike. Extremely light-weighted- his is another essential factor that helps in improvement of the demand of the sports shoes in the market. Along with this, it also enhances the market share and total sale of the product (sports shoes) among others such as apparels, coats and accessories. This proved extremely advantageous for the sports shoes as compared to others (Bohm, 2009, p. 244-267). Presence of various colours- it is also another advantage of the products of sports shoes. This is because; it helped in enhancing the craze and interest of the fashion conscious customers in this age of trendiness. High quality of leader - due to the presence of high quality of leader, the demand and reputation of the sports shoes is enhancing in the market among others. As a result, numerous loyal customers desired to purchase it thereby switchover from other brands such as Puma, Nike in order to fulfil their requirements. As a result, the profitability and productivity of the sports shoe products increased to a significant extent as compared to other rival players. High self life- due to the presence of high self-life of the sports shoes, the demand and importance of these products are enhancing at a rapid pace among other major players. Protect the customers from extreme hot and cold conditions- as these sports shoes are prepared with high quality of leathers, it may easily protect the legs of the customers in extreme cold and hot conditions. This is another advantage of these sports shoes that proved effective for it among other rival players. Extremely durable- due to extreme durability, the total sale of the sports shoes are enhancing at a rapid pace among others. This is one of the prime reasons for the improvement of the demand of the sports shoes in the market (Bohm, 2009, p. 143-154). Therefore, it might be depicted that, the sports shoes might retain its prosperity and uniqueness in the market mainly if it offers high attention over its research and development. Only then, it might become able to present trendy and fashionable sports shoes to its target customers and might retain them for longer period of time (Saks Fifth Avenue, 2013). Market segmentation for sports shoes The sports shoes are mainly segmented to the young and energetic customers with medium to high income groups. This is because; it might assist all the enthusiastic customers (athletes), of high status and economic standards to attain benefits from the extremely stylish and comfortable sports shoes (Edward & et. al. 1972, p 56-67). So the maximum extent of the segmented customers of this sports shoe is of premium group with high life styles. This is done in order to enhance their demand and profit margin of the sports shoes in the market as compared to other major rival players. And such types of trendy sports shoes might prove effective in enhancing its dominance in the market among other existing rivals such as Nike in future era (Weinstein, 2013, pp. 45-68). Targeting strategies for sports shoes Sports shoes mainly target the young and sports loving individual of the country (Stubbs, 2000, pp. 34-39). It mainly targets the youths (male or female) with age groups within 15-35 years as presented in the third graph of appendices. Along with this, these sports shoes mainly target the fashionable and stylish customers with high income groups. The prime reason behind such strategies is to position the product (sports shoe) as a premium or distinctive one among other exiting players with a proposition, ‘stylish athletes win the race’ (Wedel & et. al. 2012, pp. 66-78). Recommended positioning strategies for sports shoes In order to enhance the image and popularity of the sports shoes in this age of competitiveness, product differentiation strategy might be the best one. By following this strategy, the product of sports shoe might become able to position itself with distinctive features in a broadest market so as to fascinate large array of customers of varying life styles. Only then, the sports shoe product might become able to retain its competitiveness and equity in the market among others. However, in order to retain its portfolio in the market, the management of the sports shoe need to offer high level of attention over research and development so as to present varied types of trendy and inventive products. Therefore, it might be depicted that the strategy of product differentiation is the best one for the product of sports shoes thereby enhance its profitability and productivity in the global market among other existing rivals such s Nike, Reebok, Puma. Apart from this, in order to make the strategy of product differentiation successful, the marketing mix need to designed effectively. Product- sports shoes with varied colours and style extremely durable and comfortable best for all seasons Price- Competitive pricing- in order to position the product of sports shoes, competitive pricing need to be followed. Only then, it might create its image in the market among other rivals. Place / Distribution- The sports shoes need to be present in all supermarkets, hyper markets and hypo markets in order to enhance its sale. Promotion- The sports shoes need to be promoted through online media’s and social networking sites so as to enhance the demand and sale. Conclusion Conclusively, it might be depicted that the sports shoes might retain its portfolio and demand in the market only if it maintains the strategy to present value-added products at finest price. This strategy might prove extremely beneficial for the sports shoes thereby amplifying its value and differentiation in the market among other existing contenders. And it also helped in amplifying its reputation and efficiency in the entire segment among others. References Edward, R. & et. al. (1972). Market Segmentation. London: Sage. Saks Fifth Avenue. (2013). Men-s shoes. [Online] Available at: http://www.saksfifthavenue.com/The-Men-s-Store/Apparel/Sportcoats-Suits-and-Vests/shop/_/N-52fqqn/Ne-6lvnb [Accessed on 7th December, 2013]. Stubbs, S. (2000). Targeting Text. London: Sage. Wedel, M. & et. al. (2012). Market Segmentation: How to Do It and How to Profit from It. London: Sage. Weinstein, A. (2013). Handbook of Market Segmentation: Strategic Targeting for the business organization. New York: Springer. Appendices 1) 2) 3) Read More