Product Life Cycle of Nike Product:
Removable Massaging Insole for Athletic Shoes The process of identifying a product’s life cycle primarily includes four chief junctures which determine its progression, the first of which is the introduction stage. During the introduction stage of the removable massaging insole, Nike Inc. must recognize the readiness of the market as a whole, the selected target market, and buyers. Subsequently, the company must execute timing and strategy as it decides to penetrate an indeed whole new form of technology for its accessory sports-foot wear line.
When a product is at this particular phase, many complexities in terms of business processes from sales, marketing, to advertising and beyond can all be met by the newborn Nike insole. Aside from the fact that Nike Inc. has to put together effective wide-ranging efforts in advertising, public relations, and marketing (which most likely involves considerable financial implementation) to build brand awareness and recognition among its consumers, both target and potential, profits are expected to start downbeat or worse.
Kotler explains, “Profits are negative or low in the introduction stage” (Kotler et al. , 2006, p. 335). At these rather demanding times, Nike Inc. has, in many ways, little to worry about, for it is simply and truly extensively equipped—in experience, resources, ability, and capability. With all these, Nike Inc. must strongly establish product attributes, benefits, and features of the insole. Within just a few months’ time, Nike Inc. can usher in a new era in sports insole technology.
With strategic campaigns in advertising and marketing, Nike insole awareness can be built and solidified in the minds of the targeted athletes and sports wear enthusiasts, and even more to those who are already loyal brand users. With the spread of word-of-mouth advertising, especially with availability of the internet, Nike Inc. must only ensure that the product will speak for itself as it has made superb quality part of its tradition. However, in every way, Nike Inc. must not be overconfident in its projection, for ever-lurking competitors shall be waiting on the wing and are keyed in to its every move.
Related essay: Nike: Public relations
As Kotler points out, “Companies that plan to introduce a new product must decide when to enter the market. To be first can be rewarding, but risky and expensive. To come in later makes sense if the firm can bring superior technology, quality, or brand strength” (Kotler et al. , 2006, p. 335). As the Nike insole surpasses certain initial difficulties, the next phase shift in the product life-cycle is made: the growing stage. As the removable massaging insole’s sales grow, Nike Inc. must gradually incorporate new product features and develop more channels of distribution for the product.
From heavy and far-reaching promotional campaigns, Nike Inc. must transfer its attention to further marketing strategy and product improvement. As Kotler explains, the rationale behind this is that: “Sales rise much faster than promotional expenditures, causing a welcome decline in the promotion-sales ratio” (Kotler et al. , 2006, p. 337). With growing reception via sales, recognition, and overall brand awareness, Nike Inc. must react by preparing innovative ideas and strategies—moving “from product awareness advertising to product preference advertising” (Kotler et al.
, 2006, p. 337), entering untapped market segments, and widening coverage of product distribution. Slowly, the maturity stage presents itself. As the Nike Inc. further manifests and generates even more buzz and sales growth in the sports wear accessory line, competition picks up and thickens among the segments, especially when the said growth stabilizes. Kotler emphasizes “The sales slowdown creates overcapacity in the industry, which leads to intensified competition. Competitors scramble to find niches” (Kotler et al. , 2006, p. 338).
Forecasted potentiality and promises turned-actual success would be the signal for other capable sports foot wear-company contenders like Adidas and Reebok to challenge and see just how far they could push the technology and details in between. Nike Inc. should strongly consider amplifying promotions that still focus on its consumer, trade, and also advertising. Being innovators of the said technology, Nike Inc. must stress why customers should choose its product despite the eventual offerings that the competition will make available.
Moreover, focus on product development and innovation could and should substantially exceed expectation and competition—stretching and touching on quality and performance improvement. With this, research and development should be given significant boosts. Nike Inc. can also consider offering altering pricing strategy and stressing the product features and benefits apart from others. Nike Inc. must not be contented by just being the insole technology innovators; it must re-invent the product as well as its strategies. Read about Product Life Cycle of BMW
Anticipating all these even before insole sales grow at a steady, already-calculated rate for the industry players are quick to react must be foreseen by the company with regard to its insole product. If and when the maturity stage spirals down to the final chapter, decline stage, these are indications of which should be taken note by Nike Inc. Kotler points out, “Sales decline for several reasons, including technological advances, shift in consumer tastes, and increased competition” (Kotler et al. , 2006, p. 342).
Being that the sales decrease could be identified from anything to be an unhurried dwindling or a rapid downward whirlwind, Nike Inc. must determine when to slowly trim down costs, both in terms of production and promotion, in attempt to maintain sales ratios. If the insole technology summarizes only to be a bigger headache than something that can be revitalized, Nike Inc. has the option of opting to phase out the product completely.
Kotler, P. , Keller, K. L. , Ang, S. H. , Leong, S. M. , Tan, C. T. (2006).
Marketing Management: An Asian Perspective (Fourth Edition). Singapore: Prentice Hall.
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