Abridged Marketing Plan: Feel Like A Pro
Presented to:
California Baptist University, Division of Online and Professional Studies (OPS),
Professor: Dr. Nicole Lowes
By
NATALIE ZIMMERER
Riverside, CA
July, 2018
Abstract
This comprehensive marketing plan aims to outline a detailed marketing strategy for the new athletic shoe company, Feel-Like-A-Pro. The company will face huge brands, such as Nike and Adidas, so it is important to follow this outline in order to enter this competitive market. Feel-Like-A-Pro must analyze and become aware of their strengths, weakness, opportunities, and threats; the market research process and statistical analysis; the industry they are entering; the companies they are competing with; their product life cycle; and any promotional or sales strategies they can implement. By taking these recommendations into account, Fee-Like-A-Pro has the opportunity to become a top competitor in the athletic footwear industry.
Table of Contents
TOC o “1-3” List of Tables PAGEREF _Toc474069437 h v
Chapter 1: Introduction5
Part A5
Porters Analysis5
SWOT Analysis7
Part B10
The Marketing Research Process Using Statistical Analysis PAGEREF _Toc474069443 h 10
Part C PAGEREF _Toc474069444 h 14
Industry Analysis PAGEREF _Toc474069445 h 14
Part D PAGEREF _Toc474069446 h 19
Competitive Analysis PAGEREF _Toc474069447 h 19
Product Life Cycle22
Part E25
Promotional Strategy25
Part F31
Sales Strategy31
Final Recommendations and Conclusion35
References37
List of TablesTable 1……………………………………………………………………………………………………p.9
Table 2……………………………………………………………………………………………………p.11
Table 3……………………………………………………………………………………………………p.15
Table 4……………………………………………………………………………………………………p.16
Table 5……………………………………………………………………………………………………p.17
Table 6……………………………………………………………………………………………………p.18
Table 7……………………………………………………………………………………………………p.23
Table 8……………………………………………………………………………………………………p.26Chapter 1: Introduction Feel-Like-A-Pro is looking to compete with companies like Nike and Adidas, as a prestigious athletic shoe company. The company is sure their products will be a hit, however, it is crucial that they follow this comprehensive marketing plan in order to compete with the big dogs. Feel-Like-A-Pro will effectively and securely market their shoe-wear against top competitors while also profiting if they develop and utilize the following eight mechanisms: Porter’s Five Forces; SWOT Analysis; Market Research Using Statistical Analysis; Industry Analysis; Competitive Analysis; Promotional Strategy; and Sales Strategy.
Part A
Porters Analysis In 1979, Michael E Porter of Harvard Business developed Porter’s Five Forces of Competitive Position Analysis. This was created with the attempt of developing a simple framework for judging and evaluating the strength of competition and the position of the business organization. The five forces include: supplier power, buyer power, competitive rivalry, threat of substitution, and threat of new entry (Porter’s Five Forces, 2013).
While assessing and evaluating the successful company Nike, I was able to find the degree of force for each component. As far as supplier power goes, the force is medium. Since Nike has already developed a household name and it has become a necessity in most peoples’ wardrobes, it could be easy for them to jack up prices of their products and still attract the same consumers. However, if they jack up the prices too much, consumers will gravitate toward a more affordable brand, such as Adidas or New Balance. Since the sweatshop incidences in the past regarding labor laws, suppliers do hold some of the cards. Regarding buyer power, there is a medium force again. The company Nike prides itself on listening to their consumer’s wants and needs, and to a degree will attempt to satisfy them. However, Nike is also known as sort of a “luxury” athletic brand and not an affordable one, so buyers may not have too much of a say on prices, for this is part of the company’s brand image. There are always professional athletes advertising the brand, and the brand has been able to maintain a decent level of pricing power, making the power of buyers’ medium, but toward the low end. Again, I would say the potential threat of competitive rivalry is a medium threat. Nike has competitors such as: Adidas, Asics, Under Armor, Mizuno, etc., however, Nike still maintains their spot at the most “well-known” athletic brand. These other brands can pull consumers away from Nike, however, Nike will always have a market in which is attracted to the brand. The potential threat of substitution, or the likelihood of customers switching to alternative in response to price increases, is a medium threat for Nike. Again, they have made such a well-known brand for themselves worldwide and will always have a following. However, if they increase prices too much, competitors may have a leg-up if their quality of the product is the same and the price is significantly better. At the same time, people buy Nike for the brand itself, and not the actual quality or comfortability. It would be interesting to see how much Nike could raise its prices before Nike fanatics would switch over to another athletic brand. Finally, the potential threat of new entrants is extremely low for the company Nike. Although the athletic industry is such a profitable market and I’m sure it attracts new entrants, the companies in which have been successful are the same companies that started it all. There have not been many additional entries to the market because everyone is satisfied with these name brand companies, and Nike is one in which will always be in the mix without many new drivers (Porter’s Five Forces, 2013).
SWOT Analysis SWOT stands for an organizations’ strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are considered internal factors, whereas opportunities and threats are considered external factors.
To start, Nike has many strengths as a company. The first and most obvious strength of the company is the brand image Nike has created for themselves. They have made themselves into not only a shoe brand, but an athletic and sports brand in general. When people think of sports, they think Nike, which is a great image to have as an athletic brand. In addition, another strength the company provides is their ability to innovate quickly and successful. Nike is always coming out with new apparel and products in order to adjust to market trends and to tend to consumers’ needs and wants. They do not waste time, for their marketing team knows what product to put out and when to do it. Lastly, their final strength I have noticed as a brand is how worldwide they have continued to be. NIKE operates in six geographic segments: North America, Western Europe, Central ; Eastern Europe, Greater China, Japan, and Emerging Markets (Nike Retail, n.d.). The swoosh is one of the most recognized logos around the world, allowing the brand to impact a large number of consumers (McNaney, 2018). According to Mark Parker, Chairman, Chief Executive Officer and President of NIKE Inc., the company is excelling in many different aspects. The company is innovating tremendously and leading with platforms, not just products. He states that their Digital Offense is changing the way their company connects with the consumer, balancing their geographies and categories. For the quarter, Nike revenues grew 13%, with their international business growing 23% and Greater China growing 35%. Operating overhead increased 14%for the quarter and 10% for the year. The effective tax rate was 6.4% compared to 13.7% from the previous year, and net income increased 13% to $1.1 billion (FY, 2018).
Weaknesses of Nike include mainly the poor working conditions and low wages addressed in previous years. Although Nike has improved a lot of the conditions in developing countries, there are some factories that are said to not even be up to their own standards. In addition, another weakness is the high prices of their items. Like I stated earlier, there is a point where the items are priced too high and the demand will decline, considering Nike gear is considered non-essential items.
With that said, there are many opportunities for Nike as a brand and improvements to be made. First off, improving the working conditions will address peoples’ concerns and allow more respect toward the brand from many. Right now, Nike is marketing toward mainly athletes, and expanding their marking mix will allow for a wider range of consumers and more opportunities for the brand. The last opportunity for Nike is to expand the presence in the market for developing countries, because this is a place where Nike can gain more followers and expand the brand tremendously. However, marketing to developing countries in comparison to the United States is going to call for a much different promotion, and potentially different products. Investments in the digital network, such as their SNKRS app, allows for great opportunity and creates brand friendly e-commerce partnerships (FY, 2018).
Finally, there are some threats to be considered when it comes to Nike. Although Nike has made a name for itself worldwide and is the most well-known athletic company, there are still some competitors that Nike has to face, like Adidas. For example, Cal Baptist just switched school-wide to Adidas because they were willing to offer 3x the amount Nike was. In addition, technology advancement can be considered a threat. If Nike does not advance rapidly with technology, they have the chance of falling behind. Lastly, copied products can be a threat, especially without a patent or without developing countries legally following these patents. Brands have the ability to make the same product Nike does but at a cheaper price, which has the ability to hurt the brand as a whole (Kissinger, 2017).
Table 1
-134620-4318000
Internal Factors
External Factors Strengths (S):
brand image
speedy innovation
worldwide
excellent marketing platforms
increase in revenue
gross margin
demand
net income Weaknesses (W):
poor working conditions
low wages in developing countries
high prices
dependent on U.S market
marketing spending
Opportunities (O):
improving working conditions in developing countries
expanding marketing mix
expanding presence in developing countries markets
digital marketing
product innovation S/O Based Strategies:
Using their strong brand image and expansion in countries such as Greater China
Nike can make it a priority to better their working conditions and make it known through the digital media. This could include a form of advertising. W/O Based Strategies:
Even though Nike’s working conditions are known to be poor, they can take advantage of this by cutting some of their profit and investing more money in facilities and wages in developing countries. This may reduce profit in the short-term, but has the potential to gain respect and therefore increase consumer satisfaction.
Threats (T):
successful competitors
keeping up with technological advancements
mimicked products
growing marketing expenses
increasing legal pressures
S/T Based Strategies:
Using strengths to avoid threats could help the company tremendously, such as using their brand image and excellent marketing platforms to compete with competitors and reach a larger number of consumers
Using digital platforms will increase the amount of people they reach. In addition, their speedy innovation can allow for limited copied products. W/T Based Strategies:
Minimizing weaknesses and avoiding threats can include increase in digital marketing, for this is an inexpensive yet effective way to reach a mass amount of people and keep up with the technological advancements.
Part BThe Marketing Research Process Using Statistical Analysis Using statistical analysis, the chosen company “Feel-Like-A-Pro” was compared with top competitors Nike and Adidas. Comparing these successful companies will give the marketers an idea of what their competitors are emphasizing and what strengths need to be highlighted in order for a new company to compete with these companies. It is crucial to understand the wants and needs of the consumer before entering a market. The questions were ranked by level of importance to the consumer as well as whether the subject agreed or disagreed with the question regarding the company. The first question was the existence or absence of a large selection. The second question is regarding the athletic performance of the shoe. The third question involves the accessories/apparel, not just the shoe. The fourth question includes the longevity of the shoes. The fifth question deals with the overall quality of the shoes and the sixth question deals with the pricing of the products. These questions will help “Feel-Like-A-Pro” come up with and implement a research plan while also better grasping the market being entered.
The three questions in which I have selected and decided to run an ANOVA on are ones in which the marketing plan of “Feel-Like-A-Pro” should mainly focus on. These will show the strengths of the companies and should also lay out how a marketing plan should be modeled. To start, the first question I considered after completing the ANOVA was ‘How important each of these categories were to the customer’. With that said, even if “Feel-Like-A-Pro’ did not score well in a single area, marketers could compare this number to how important it actually is to the customer. To do this, a one-way ANOVA would occur using the dependent variable X1-X6 and factor in both competitors as well.
The chart is included below, in addition to a mean comparison to measure importance of the categories among the competitors.
Table 2
Descriptives
N Mean Std. Deviation Std. Error
X1 — Large Selection Nike 86 5.27 .951 .103
Adidas 65 4.48 .687 .085
Feel-Like-A-Pro 49 5.02 .595 .085
Total 200 4.95 .861 .061
X2 — Athletic Performance Nike 86 1.85 .623 .067
Adidas 65 3.75 .919 .114
Feel-Like-A-Pro 49 4.51 .617 .088
Total 200 3.12 1.355 .096
X3 — Accessories besides the Shoes Nike 86 6.43 .660 .071
Adidas 65 5.06 .950 .118
Feel-Like-A-Pro 49 6.86 .354 .051
Total 200 6.09 1.023 .072
X4 — Longevity of the shoes Nike 86 6.23 .954 .103
Adidas 65 5.68 .920 .114
Feel-Like-A-Pro 49 5.96 .644 .092
Total 200 5.99 .905 .064
X5 — Overall quality Nike 86 5.14 .870 .094
Adidas 65 4.23 .844 .105
Feel-Like-A-Pro 49 4.69 .918 .131
Total 200 4.74 .954 .067
X6 — Reasonable Prices Nike 86 4.72 .877 .095
Adidas 65 5.60 .806 .100
Feel-Like-A-Pro 49 6.29 .791 .113
Total 200 5.39 1.046 .074
13335-42973300 The results of this ANOVA and the mean comparison proves the importance of the accessories besides shoes is the most significant. In addition, the most important components to the consumer are as follows: the longevity of the shoes, the reasonable prices, large selection, overall quality and lastly athletic performance. This information can help the company significantly because as of right now, “Feel-Like-A-Pro” is focused on the technology behind the shoe, but these stats show that they must focus on other accessories, the longevity of the shoes, and the reasonable prices of their products. These numbers have the ability to inform companies if they are focusing on the right aspects of the product.
The second question based on the one-way ANOVA is to ask which is ranked first when it comes to the overall quality. Even though it is not the category in which consumers care the most about, the company still mentions quality in their mission statement. After seeing this data, it is clear that Nike takes first and “Feel-Like-A-Pro” takes second based off of the mean scores. The company can now do their research to understand what Nike does in order to satisfy customers through quality and compete with them by doing these same things, but even better.
The third and final question in which is important to analyze is to note who is ranked #1 in the top category. This will allow the marketer to see how they rank in comparison to their competition as far as the most valued aspect is. “Feel-Like-A-Pro” will be able to see what they need to improve on in addition to seeing how others are succeeding or failing. Analyzing the one-way ANOVA has proved that “Feel-Like-A-Pro” is ranked first and has a well-developed marketing plan for selling products besides shoes. The next steps the company can take are analyzing which accessories or apparel are important to consumers and which are the most-frequently purchased. They are ranked the highest for athletic performance, however, this is the
least important aspect to the consumer. Perhaps, the company should focus less on this aspect and more on the longevity or overall quality of the shoes, since these are both aspects more important to the consumer. The significance level means that consumer care most about the accessories besides shoes and the longevity of the shoes. This concludes that Feel-Like-A-Pro should invest the most in these aspects of their company in order to increase consumer satisfaction and gain followers of the company.
Part CIndustry AnalysisSize of the Industry
“Feel-Like-A-Pro” is within the athletic apparel, footwear, and equipment industry which is a highly competitive industry worldwide. In the United States alone, athletic footwear is a multibillion-dollar industry and it keeps growing year-by-year. Below I have inserted a graph which compares the sales of top-competitive athletic brands in 2016 and 2017 including: Nike, Adidas, Asics, Puma, and Under Armour.
Table 3
The footwear industry, specifically, is broken down in segments. The first and most obvious segment is split between men, women, and children, with men accounting for 60% of the segment, women accounting for 30% and children accounting for 10% (Athletic Footwear, 2017). You can also segment shoes based off of their intended use, such as: sports, comfort, or even hiking. Below I have included a visual representation of how one may segment athletic footwear within the marketing environment.
Table 4
Growth Expectations
The growth expectations for the athletic footwear market continue to expand. According to $114.8 billion by the year 2022 and is currently growing at a CAGR of 2.1% during the forecast period 2016 -2022 (Singh, 2017). These numbers, in my opinion, are due to the healthy lifestyle trend that has been increasing each year. This would lead to an increase in sports participation and other activities, and therefore an increased demand for the shoes. The following graph includes the Global Athletic Footwear Market and its past, current, and future opportunities.
Table 5
Financial Data
Nike specifically has an expected profit margin of 44.72% as of May 31, 2018, which is about a 1% increase from this past February. There was a downward trend for Nike’s profit margin, however, it is slowly increasing. The athletic footwear industry in the United States has a $16,143,000 revenue in 2018 and a $49.24 average revenue per capita, which are exceptional numbers and only includes one of the many countries this market operates in (Athletic Footwear, 2018). Below I have included a graph of Nike’s gross profit margin between 2009-2013. This will allow us to visually compare trends from 5 years ago to the current profit margin.
Table 6
PEST Analysis
The PEST analysis is a look into the political, economic, social and technical breakdown of the industry. Politically, there are different policies in other countries that can cause issues. There is a currency exposure risk as well as a competitive international; tax system. For example, there are a few foreign countries in which have policies that don’t allow one to fully own a retail store, causing threat to internationalization. In addition, there are expanding free trade policies as well as improving government support.
Economically there are many factors relating to the athletic footwear industry. As I stated earlier, there has been much growth in the performance shoe industry which has increased opportunities for many brands. Our country is at the point of economic stability of developed markets, allowing this one in particular to thrive and grow rapidly. However, there is a slowdown in the Chinese economy which is a threat considering they bring in a majority of revenue to brands like Nike. Unfortunately, there is an increase in labor costs, shipping costs, and interest rates which may affect the consumption of the product themselves.
Social factors of the athletic footwear industry can include the fact that there is an increase in individual wealth within developing countries, which is a big opportunity for the industry. In addition, there is a big emphasis on product safety, which leaves a positive environment around the market. Luckily, quality over price is valued within this market, so the industry is able to invest more thought and money into the design of the product. Although obesity rates may show that people are uninterested in physical activity, there has been a trend to live a healthy lifestyle which can benefit the market tremendously.
Technological factors in the athletic shoe business includes increasing R&D investment among firms, which is good for the industry and consumer because competing firms aim to develop more technologically advanced shoes, equipment and apparel. However, this can threaten top brands like Nike because there is a high standard and more companies reaching this standard, potentially like Feel-Like-A-Pro. Companies feel pressure to increase its product development efforts since it is such a competitive industry. In addition, there is a widespread use of mobile technology, allowing brands to capture consumers who frequently use their apps and online tools, leading to more opportunities (Rowland, 2017).Part DCompetitive AnalysisCharacteristics of Competitors
The two leading competitors to the company “Feel-Like-a-Pro” are Nike and Adidas. As two large, successful brands, the companies both have key characteristics in which help differentiate them from their competitors. Nike is a company is which is extremely creative, and this is a characteristic that allows the company to stand out among smaller competitors. Creativity is important in the athletic shoe and apparel industry, for the products need to stand out to the consumer. Nike is always coming up with new innovative products and they seem to be a step ahead of the game as a company. Another characteristic Nike obtains as a company is their outstanding partnerships. They sponsor top athletes and teams at the most prestigious of levels. The beginning and intermediate athletes even have the opportunity to represent their brand on a daily basis. The third characteristic Nike has proven to consumers over the years is their exceptional branding. Every household knows the Nike swoosh logo as well as the “Just Do It” slogan, which is an unfailingly consistent message for approximately 50 years. This is all due to their outstanding branding and marketing of the simplistic traits of their company. Nike does not necessarily target any specific age or gender, which makes the brand so universal and available to a wide arrange of people. Finally, the fourth characteristic Nike exposes is the fact they listen to their consumer. The company is always coming out with newer and better shoes, mostly because they are listening to what the consumer has to say and what their needs are. Notice that every year they come out with a newer and more improved model of their shoes, aiming to keep up with the desires of their fans (Young, 2017).
Adidas is also a competitive brand that can threaten the contenders in the athletic shoe industry. The first characteristic that assists Adidas in becoming competitive is their heavy presence in street style. Adidas is a brand that not only sponsors athletes and focuses on sports, but celebrities and street style as well. People such as the Kardashians represent the brand and wear it for workouts, lounge-wear, and street-wear. This makes the brand unique because there are not many brands that can be considered in all of these apparel categories. Another characteristic that makes the company well-known is the slogan “Three Stripe Life”. This will allow consumers to instantly experience brand recognition when they see three stripes on any sort of apparel. The third characteristic that makes Adidas stand out is their presence internationally. Not only is the brand relevant in the United States, they are an extremely competitive brand in places like Europe as well. The last characteristic in which Adidas is known for is the fact that they have joined with the athletic apparel company Reebok. This allows for the brands to still reach different types of consumers and go about branding differently, however, earn the profit from these two different types of markets (Pratap, 2018).
Counter Strategies
Feel-Like-A-Pro must come up with excellent counter strategies in order to compete with brands like Nike and Adidas. The first counter strategy they will have to utilize is product development. By introducing new and original products into their inventory, Feel-Like-A-Pro will be able to keep up with current trends and technology that these large brands are portraying. One way the brand can pursue product development is to offer an option to customize shoes, but apparel as well. Many brands offer the feature to customize shoes, but Feel-Like-A-Pro will stand out because matching apparel is a new and innovative workout trend. This will allow Feel-Like-A-Pro to compete Nike and Adidas as far as product development goes.
The next counter strategy Feel-Like-A-Pro should consider is their market development. It is important that the company reaches different types of markets and demographics in order to compete with Nike and Adidas. Opening new store locations, even internationally, will help the brand become a global presence. If Feel-Like-A-Pro can become a dominant force by entering new markets, they will have more of an opportunity to brand through sporting events. This is a great way to increase brand recognition among consumers and international sales, allowing them to compete with Nike and Adidas.Product Life Cycle “The Product Life Cycle has been considered one of the most influential tools in history when it comes to supporting decision-making processes. It assists in recognizing problems within its phases and identifying future improvements in which need to be done (Luz, Francisco, , Piekarski, ; Salvador, 2018). There are four stages within the Product Life Cycle in which are recognizable for most products. The first is market development and this is when a new product is originally introduced to the market before there is even necessarily a demand for it. The second stage is the market growth stage, and this is where demand begins to take off and the market is expanding at a fast rate. The third stage is known as market maturity, where demand levels off and grows at steady rate. Stage four is considered market decline, where the product typically loses the consumer appeal and sales decline (Levitt, 2014). In other words, this industry life cycle can be put into the stages: introduction, growth, maturity, and decline” (Zimmerer, 2018).
Table 7
106930984807900
Feel-Like-A-Pro is a company who is just entering the market and launched their athletic shoe, hence why I have placed the company in the introduction stage in the above diagram. This is the first stage in the product life cycle, so Feel-Like-A-Pro is attempting to bring market awareness to their athletic shoe. During this stage, sales are typically extremely low even though their marketing efforts are extensive. Fortunately, being in the introduction stage means that the company has a lot of room for improvement, and utilizing promotional strategies can be crucial for this progress into the growth stage. Brand recognition will continue to increase in the consumers as marketing strategies and sales campaigns continue, for this can in the end increase sales and profits.
Due to being in the introductory stage, Feel-Like-A-Pro must come up with strategies in order to penetrate their target market and compete with the competition. The first strategy the company should implement is market penetration, which includes informing and educating the market about their athletic shoes. In addition, relaying the features, benefits, and advantages of their products to the consumers and why it surpasses brands like Nike and Adidas. Not to mention, putting the products at a decent price point can gain more followers and outshine the competitors
Part ETarget Market
Feel-Like-A-Pro aims to assist athletes of all levels reach their full potential and tackle all of their goals. The target market of the company includes men, women, and children ranging from ages 12-50, which is typically the age in which consumers remain active. The main target market is men, women, and children who participate in action sports, including: running, basketball, volleyball, and soccer. In addition, the intended target market includes men and women who participate in physical activity as a hobby, such as: hiking, running, or even biking. In the end, the company will mainly want to market to athletes at all different levels. Targeting to children will be crucial, because this is the market that is typically the most active. The aesthetic of the shoe is important to kids because they want the newest and coolest gear, so this is a great method of marketing.
With that said, children are not the ones purchasing the product, so it is important to market to the adults who are. This would typically consist of men and women aged 30-50, and are normally in the middle-upper class in which value a healthy lifestyle. Marketing to the adults of the household gives the company the ability to have a target market of the entire household, from the adult’s hobbies to the children’s numerous sporting activities.
Ideally, as the children grow into potential collegiate sports or even professional sports, they will still have the connection with Feel-Like-A-Pro and become repeat purchasers into their adult years. It is important to keep the design of the product as unique, durable, and aesthetically pleasing as possible, so these consumers feel as if this is the best athletic-wear line.
8882655487200Below is a graph including the moving trends of the Feel-Like-A-Pro target market throughout the past three and a half years. Table 8
As the chart above demonstrates, adults aged 36-50 are the most profitable type of consumer, considering they typically purchase products for the entire household. It is most important to market to these types of consumers, as well as marketing to the children they are buying these products for as well. By marketing the aesthetic and trendiness of the shoe to these age groups, sales will most likely improve and the company can establish life-long repeat purchasers.
Promotional Strategy Promotional strategies are conducted based off of the research of the company, especially after the understanding of the target market. Each company will conduct a unique strategy and promotion mix in order to appropriately influence the intended market.
Promotions Strategy A
The first promotional strategy in which Feel-Like-A-Pro should consider is simply sales promotions through social media. In today’s world, social media is the easiest way to reach a mass number of consumers for a price that is unbeatable. Considering the target market is age 12-50 years, it is assumed that a majority of this group is active on one or more social media platforms. Facebook, Instagram, Twitter and Snapchat can all be used as platforms to highlight the company’s products and answer any questions the consumer may have. In addition, it is convenient to access consumers on social media based off of their known interests. So, on Instagram, Feel-Like-A-Pro would be able to market and be active on people’s pages whom are interested in fitness and athletics according to their liked posts and followed pages. The goal of social media would be to allow for an easier navigation and experience for consumers. They will be able to easily view the company’s products, as well as purchasing the products at a click of a button. Feel-Like-A-Pro will be able to measure the amount of views, clicks, and likes the brand will get through these social media sites, confirming that the social media is leading to more brand awareness and recognition. The cost is such a small fee compared to the number of consumers they would gain. It tends to be a much cheaper alternative to promotions such as television or billboard advertising. Outsourcing on social media can cost anywhere from $3,000-$7,000 per month, and this will in the end turn into more purchases and profit for Feel-Like-A-Pro (DePhillips, 2018). Social media, in addition, will be a great way to target the entire target market at once. Not only does the older generation use social media, but the younger generation does as well. They will be able to see the products on social media and tell their parents, the consumer, exactly what they want. Therefore, the social media presence and theme that Feel-Like-A-Pro carries is of great importance and value to the company.
Promotions Strategy B
The second promotional strategy I would recommend for Feel-Like-A-Pro is to offer discount and coupon codes. This is a strategy in which should come after the introductory stage, because the company should not come right out of the gates devaluing their products. However, it can be a beneficial tactic once the company has made some sort of name for itself. Considering the most valuable consumer are consumers aged 36-50 and are likely purchasing for the household, it may give them more incentive if they have some sort of a deal. For example, if the company is able to give a discount that involves a ‘buy one get one’ mentality, the consumer will be more likely to purchase the shoes for the whole family. The goal of these discounts should be to incentivize the consumer to purchase more than one product. In order to monitor the sales and if the promotional coupons are effective, it is important to follow up with each household and calculate the percentage of the coupons used in comparison to coupons sent out. This will not cost the company much of their assets, because hopefully the consumer will in the end purchase more than they would originally intend to without the coupon. With the coupon and discount codes, Feel-Like-A-Pro will most likely be segmenting to the consumers aged 26-50. Once the consumer turns 26, they are typically off their parents’ payroll and are fully supporting themselves, always looking for deals. In addition, age 26-50 is a time where the consumer is supporting more than one person in the household, and deals are crucial in order to be able to afford this many of Feel-Like-A-Pros quality products.
Promotions Strategy C
The final promotional strategy Feel-Like-A-Pro should use is sponsorships of professional athletes, just as Nike and Adidas does for teams within the NFL, MBA, MLS, etc. This brings brand awareness and desirability for the products. This tactic can be a bit pricey, so this too must come later on after the company establishes itself through the media. It will be very effective and will be necessary, because this will reach a mass number of sports fans. The target market probably watches one of these sports on television, allowing them to see their gear and see what is the new, in thing. These athletes being sponsored will always be able to leverage the products on social media, again leading to more brand awareness to the consumers. The Feel-Like-A-Pro logo will be featured on all sponsored team’s uniforms, shoes, cleats, and any additional given gear. The goal within this promotional strategy is to simply bring awareness to the brand as well as keeping a prestigious tone of the brand. If kids see professional athletes wearing Feel-Like-A-Pro, the kids feel as if they need to wear it too in order to pursue this level of sports. The company will measure this success through analyzing reports and the increase in sales after each sponsorship with professional teams and athletes. In addition, Feel-Like-A-Pro can send out surveys asking consumers how they heard of the brand, and act on it accordingly. Unfortunately, this is one of the pricier of promotional tools. However, once the brand is established and past the introduction stage, investing in these sponsorships will really pay off. This will reach all of the target market, considering most people aged 12-50 watch professional sports in person and on television.
Part FSales Strategy Sales is an important factor when it comes to the success of a business. There are many different strategies in which a company can implement, but it should be customized based off the needs and factors of the business. It is crucial to identify who the target market it and develop promotion and sales strategies from there. There are three strategies in which Feel-Like-A-Pro will need to utilize in order to properly promote their products, and these strategies include: personal selling, organization of products, and valuing customers.
Sales Strategy A
Personal selling is a phenomenal way to promote the products in which the company is selling. This specifically can include hiring a sales force where “Feel-Like-A-Pro” products are sold, and here is where they are able to connect with customers on a personal level. These sales representatives must know the products inside-out, being able to prove their knowledge of the market to the consumer while staying on a personable field. When the customer has an issue, these sales representatives should be able to identify and solve it, while also maintain excellent communication and customer service skills. Considering shoes are a product in which maintain relatively high prices as well as complex features, salespeople are necessary in order to bridge the gap between the consumer and the shoes. There are several advantages when it comes to personal selling, and these include: increased customer attention/awareness within the store, the message is more personal and more relatable to the consumer considering it is customizable, interaction occurs throughout the process between the sales representative and the consumer, persuasion is a major component within sales and this can occur with a salesperson, and finally the interaction is adaptable and the salesperson is able to recommend a shoe based off of the customer’s needs (Personal Selling, n.d.).
Sales Strategy B
On a more specific note, organization of products will boost sales for Feel-Like-A-Pro. This means that there will be specific salespeople in department stores, such as Dicks Sporting Goods, for just Feel-Like-A-Pro products, and not just all athletics in general. More specifically, within any store that sells their products, a sales representative will be able to specialize in a specific product from the company. This can include a salesperson in each sport category, allowing them to fine-tune the details of each shoe are and how it can relate to the specific sport. For example, in a medical sales company, one salesperson will not sell all medications. They will specialize in an area, such as stroke medication, study this and learn the front and back of their specific medicine. The main advantage of specializing in products within sales, as I recently asked a medical sales representative in the Hermosa Beach area, is becoming more than familiar with the product, because the salesperson’s product knowledge sways the customer more than we know. Focusing on one product allows the salesperson to know the product more in depth, allowing them to become a more reliable and credible source (Langetieg, 2018).
Sales Strategy C
Valuing customers is a crucial sales strategy in which I think can make or break a business. Communicating with customers as well as adjusting to their needs will play a huge part in the amount of sales Feel-Like-A-Pro will reach. If the customer feels like they are important and that the sales representative cares about them as a person and not just the sale, the customer will be more inclined to make a purchase. The customer must understand that you as a salesperson are there for the long-run, and not just to get their money. The salespeople must understand what customer-service is and how to implement it within the stores, because this is the foundation for loyal customers (Patel, 2018). Being relatable with the customer, as well as making them feel like the product will add value to their life will in the end lead to an increase in sales, which is why this would be a huge advantage to Feel-Like-A-Pro.
These sales strategies will all in the end relate and complement the promotional strategies, which include: exclusive deals for members, social media advertising, and professional athlete and school sponsorships. Some of these strategies are expensive and may need to be implementing once the company has a financial backing, however, they will be successful ways to spread brand recognition and fans. Exclusive deals (Promotion Strategy A) helps the customer know we are there for them (Sales Strategy C) and their contentment with our products means everything. Social media advertising (Promotion Strategy B) will be able to relay the information that our salespeople are on the floor and have specific knowledge within a designated sport (Sales Strategy A and B). Feel-Like-A-Pro wants the best for its customers and will commit to the best quality products, customer service, and experience in general for the consumer. In conclusion, both promotion and sales strategies implemented will add to the success of the company and will promote a prestige-brand environment.
Final Recommendations and Conclusion Feel-Like-A-Pro has the potential to be amongst the top of the athletic footwear industry. The athletic footwear industry is at its all-time high, and it is expected to continue growing, especially considering the trend in an active lifestyle across the world. This seems like the perfect time for Feel-Like-A-Pro to enter the market, while meeting consumer needs through this marketing plan. Each component will play a huge role in the success of the company, and these components include: Porter’s Five Forces; SWOT Analysis; Market Research Using Statistical Analysis; Industry Analysis; Competitive Analysis; Product Life Cycle; Promotional Strategies; and Sales Strategies.
Feel-Like-A-Pro could also become a respectable company through the act of giving back to the community, as well as maintain integrity. High moral standards are important when it comes to a company in such a highly-competitive industry, and this is one way to make the company stand out and care about the consumer. Acts 20:35 states, “In all things I have shown you that by working hard in this way we must help the weak and remember the words of the Lord Jesus, how he himself said, ‘It is more blessed to give than to receive’.” Feel-Like-A-Pro should indeed be concerned about profits; however, it is crucial that the company does not make the business entirely about this. Giving back is a great way to gain respect and glorify God. In addition, Proverbs 19:1 states, “Better is a poor person who walks in his integrity than one who is crooked in speech and is a fool.” This just confirms that Feel-Like-A-Pro should value the community over profit, because this is the foundation of the company. This will put the company in a good place to become competitors in an up-and-coming market.
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