The Market of Nike Fuel Band - Coursework Example

Introduction As the number of health-conscious individuals and athletic people surges in an upward spiral, various product and service offerings that promise to help the people reach a maximum level of physical fitness flooded in the market or in the health and wellness industry. Perhaps, the most conspicuous of all of them is the existence of common offerings under the group of food supplements. However, there is a product that tries to compete and position itself under the category of health devices. The product is Nike fuel band, Nike’s latest hardware device that tracks a person’s daily physical activity. That is why some people call it activity tracker and wear them on their wrist. This will help the wearers monitor their physical activity, their daily activities in line with physical fitness like for example tracking the amount of calories they are burning. With a sheer understanding of the product’s features, advantages and benefits, one can say that it is especially formulated for athletic and health-conscious people who are looking forward to keep their body in shape and boost their athletic performance. Now generally one can say that there is a potential market for this product offering, but performing market segment analysis and identifying the segment’s market characteristics, and target marketing analysis is necessary to be employed in order to possibly define a new market segment that will help increase the demand for a certain product. Definition of the market segment In this section, the work at hand presents the actual market segments that the Nike fuel band exists in. A pie chart is shown to present with ease the relevant market share and potential market relationship. According to the case that Digital Ad Blog (2013) presented concerning the Nike fuel band and its target market, athletic individuals from 24 to 35 years old with medium-high disposable income are the potential targets of the product. The blog mentioned that these are individuals with high social usage, as 18% of them appreciate the idea of social media websites as their ultimate way out to compete with friends and family concerning their exercise goals and achievements while they want to combine altogether the quality and image, and efficiency and fashion to work out. This is supported by an article that tries to establish the fact that Nike fuel band would make sense among people who are sports minded and want to compete with other friends alike (Amsden, 2012). While athletic individuals may be the ultimate targets of the Nike fuel band, the other potential market belongs to the individuals who may not necessarily sports minded, but are just after of achieving a significant health gain linked to their healthy decisions in life (Reid, 2013). In knowing the above information, below is an approximate division of the market segments linked to the Nike fuel band, which are also the potential source of market share for the said product offering. Illustration 1. The potential market segments for Nike fuel brand with their approximate market percentage. It is in the above market segments where Nike fuel brand generate its market share. In particular and as already stated, the primary market of the product is the athletic industry. Considering this point, the target segment, which includes the athletic individuals, should make sense. However, there is also another market segment that tries to interact with the prevailing market of the athletic individuals, and generally would include people who are becoming conscious in their health. By critically assessing these segments, one can therefore formulate the idea that the market for athletic individuals and people who are conscious of their health cannot be too far, but complementary. In other words, a significant market share for Nike fuel band generally comes from the health industry, but in a little portion of it because it particularly focuses on the gadget. As to what percentage it takes generally from the health industry, the ultimate basis would generally come from the segment of health gadgets. However, what is the most important point is the information that tells us concerning the two general target market segment for Nike fuel band as presented in Illustration 1. The above illustration signifies that the Nike fuel band is a specialty product offering that seeks to essentially target the market for both health conscious and athletic individuals. At some point, if one has to critically analyze this division of percentage, athletic individuals are generally health conscious. However, what would most matter is the actual intention of the health program in the employment of Nike fuel band. For example, if the entire activity that would require the use of Nike fuel band is for the sole purpose of athletic considerations, then the target market segment must essentially fall under the 80 percent, and the other way around. It is all in the issue of the actual intention that would determine which segment in the above illustration a Nike fuel band user will be counted in. Market characteristics of market segments Demand shifters include the following factors such as income of the consumers, number of consumers, consumers’ taste and preferences and their expectations such as alternative prices, substitutes and income in the future (Sexton, 2008). All of these may be relevant to price, which from the context of economic point of view may affect or change demand. However, as stated earlier, there is an evidence to suggest that a potential demand for Nike fuel band will have essential link to the characteristics of the market segments. These segments may also have the characteristics that are relevant to the demand shifters. The athletic segments as stated are people from 25 to 35 years old and with medium-high income. Furthermore, as mentioned on the Digital Ad Blog, they are also those who might be active in social media, dynamic in fashion and can acquire the required gadgets to further make use of the full features of Nike fuel band. From this point of view, owning a Nile fuel brand might be costly, though fashionable at some point. In other words, the said product offering may not generally attract lower-end customers including those with no stable income at present. After all, owning an expensive product in line with fashion may be costly and only few may have the opportunity to make use of it. Nike fuel band is therefore a product offering that will attract mostly individuals that can afford to provide monetary exchange especially for relatively expensive products. In other words, if we consider the income factor, such influence can relatively stand as the demand drifter. Another important characteristic associated with the athletic segment are the preferences and expectations. Nike fuel band is an in trend for fashion, and thus this can be a substantial brand of product offering for those individuals within the athletic segment that are also able to consider a remarkable fashion statement. As also stated, another important segment for Nike fuel band is the health conscious group of people. These are people that have certain individual expectation, a demand drifter that at some point will have to consider the achievement of physical well-being. One dominant thought relevant to this market segment is that this must be the group of healthy individuals. There is a remarkable point in this understanding. However, in reality, there are also many people who are suffering medical conditions and would want to improve their well-being. These people are also remarkable segments as far as considering expectation as a demand drifter is concerned. These people would expect to manage to work out and so to establish a vital result in their physical health. For example, health-conscious individuals may not necessarily be healthy, but above all those also who might want to restore their health due to medical conditions linked to obesity, diabetes, cardio-pulmonary diseases and so on will be potential characteristics for consideration in the target market segments for Nike fuel band. In other words, aside from the main concern of Nike fuel band to target athletic and health-conscious people, there are other sub-segments in these general market segments that can still be possibly explored to the fullest. Target marketing Generally, Nike fuel band belongs to the market segments involving athletic and health-conscious people (Digital Ad Blog, 2013; Amsden, 2012; Reid, 2013). Athletic people are not only looking forward to the performance of the product today, but the touch of fashion in it. We see this in various sports and on how the marketing world employs renowned athlete to promote a fashionable trend of the product offering (Ko et al., 2012). Considering that Nike fuel band is built with high fashion and not just accuracy, fashion-oriented individuals are other relevant segments by which the said product offering may potentially belong. Health-conscious individuals as stated are not only those with perfect health conditions, but including those who might want to restore a healthy lifestyle and a significant health gain increase. In fact, various physical health exercises and health programs are initiated today to restore health and medical condition of the people (Ark et al., 2013). Some of these programs require the use of medical devices, apparatus and medical gadgets (Hudson, 2013). In other words, the specific market segments that can stand as the relevant targets for Nike fuel band are those who can afford to employ fashionable and trendy athletic gadgets, and also those who want to maintain or restore their well-being. Conclusion The work at hand just presented the essential points linked to the market of Nike fuel brand. As found out, aside from the general market segments like athletic and health-conscious individuals, the specific target markets are found to be those who can afford to employ fashionable and trendy athletic gadgets, and also those who want to maintain or restore their well-being. In other words, there is a great opportunity for Nike fuel brand in the market and this means the need to explore any relevant market segment is necessary in order to compete further against those highly established brand in the market segment where it substantially competes at present. The key to doing this is substantially found to be relevant to the actual management of demand. Finding the necessary demand drifters and integrating them into the actual characteristics of the probable market segments will be a straightforward approach in finding a new potential market segment, as specifically employed in the work at hand. Furthermore, segmentation analysis, as found out and as based on the actual analysis of the work at hand is a significant activity or marketing tool that will allow marketers or managers to identify even the most specific segments in the market. References Amsden, D. (2012). Sporting News. Retrieved from http://www.nytimes.com/2012/09/09/t-magazine/where-exercise-and-social-media-collide.html?pagewanted=all&_r=0 Ark, M. V., Scheek, V. D., Miejer, L. T. B., & Zwerver, J. (2013). An exercise-based physical therapy program for patients with patellar tendinopathy after patelet-rich plasma injection. Physical Therapy in Sport, 14(2), 124-130. Digital Ad Blog. (2013). Nike Fuel Case Study. Retrieved from http://digitaladblog.com/2013/04/11/nike-fuel-case-study/ Hudson, Z. (2013). Increased impact factor for Physical Therapy in Sport. Physical Therapy in Sport, 14(4), 187. Ko, E., Taylor, C. R., Sung, H., Lee, J., Wagner, U., Navarro, D. M. C. & Wang, F. (2012). Global marketing segmentation usefulness in the sportswear industry. Journal of Business Research, 65(11), 1565-1575. Reid, B. (2013). Nike+ FuelBand 2 Will Feature A Heart Monitor, Improved Display, Bluetooth 4.0 and More. Retrieved from http://www.redmondpie.com/nike-fuelband-2-will-feature-a-heart-monitor-improved-display-bluetooth-4.0-and-more-report/ Sexton, R. L. (2008). Exploring Economics. Mason, OH: Cengage Learning. Read More