logging in or signing up Consumer Behavior Research faisalrehman Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 1933 Category: Education License: All Rights Reserved Like it (6) Dislike it (0) Added: April 06, 2010 This Presentation is Public Favorites: 2 Presentation Description Consumers attitude towards premium branded athletic footwear: The research was conducted for a possible geographic expansion of a Pakistani Footwear Company into North America particularly USA, as recession provides an oppertunity for the Asian Countries to enter into the Developed Countries with their relatively low-priced products. Comments Posting comment... By: Rebel1992 (18 month(s) ago) my apologies, i meant the idea of peventing the effect of "word of mouth gaining a bad rep on you" was pure genius...IDEA:introduce feedback channels... Saving..... Post Reply Close Saving..... Edit Comment Close By: Rebel1992 (18 month(s) ago) hi sir, i would like to point an error on slide 37, the addition of 45,43,8,5 is 101....gining a census value of 101%...other than that, i thought your presentation was amazing... espescially yr recommendations on how to prevent moulding a bad rep through word of mouth.....was pure genius, though many other companies,industries have utilised this method... lastly, could you explain how you were able to present a 3d view of the shoe on ppt, were you doing it by MAC?...if possible, would it be possible to send only slide 5 to my mail where you have utilised the 3d effect of shoe... cheers. Saving..... Post Reply Close Saving..... Edit Comment Close By: shivei (22 month(s) ago) nice 1...can u send it..on my id shivee_dhamija@yahoo.in Saving..... Post Reply Close Saving..... Edit Comment Close By: shandi (26 month(s) ago) hiiiiiiiiiiiiiiiiiiiiiiiiii good presentation Saving..... Post Reply Close By: faisalrehman (26 month(s) ago) thanx... Saving..... Edit Comment Close Premium member Presentation Transcript Slide 1: Consumer Behavior Analysis Term Presentation Dr. Asher Naeem (University of Karachi) Changing Trend Towards: Athletic Footwear In North America Presented To: Special Thanks to: Mr. Mark Bundang MHB Security, USA. Prepared By: Dr. Faisal M.B Rehman Agenda : Agenda We will be dealing with the following dimensions of Consumer Market Analysis on Athletic Footwear: The center of focus throughout the Consumer Market Analysis will be: Consumer Market Analysis On: Athletic Footwear In North America “The Consumers’ Changing Behavior Towards Premium Branded Athletic Footwear”….. Slide 3: Part 1: Market Background US footwear imports = 40% US Athletic footwear = 35% » On an average, every US citizen purchases more than 4 pairs of shoes each year. » In 2007, US spent $38 billion to purchase more than 1.1 billion pairs of footwear. Slide 4: 2008 Global Imports of Shoes into US $43.3 Billion (* In US dollars) The US Market: Global Importer Imports account for about 90% of shoes sold in the US. US market for athletic shoes alone is approx. $17 billion. Thin-soled sneakers are a $2 billion industry in the US. $ 16.9 Billion $ 26.4 Billion 61% 39 % Slide 5: Athletic Footwear Includes: Running shoes roughly accounts for $5 billion market in the U.S. alone for the year 2008. Historically, a growth category whereas sales of shoes for sports like baseball or football is simply a matter of taking market share from another company. However, fashion/style - themed sneakers overtook running shoes as the top-selling category in the athletic-footwear market in July 2007.* Baseball/Softball Running/Jogging Cross-Training Basketball Aerobic Dance Other Sports (*Source: Market-Research Firm NPD Group) The US Market: Athletic Footwear Slide 6: Global share of the branded footwear market : Nike(38%) vs. Adidas(34%) US athletic-footwear market : Nike(36%) vs. Reebok(12.2%) vs. Adidas(8.9%) “Nike dominates the Footwear Market” The US Market: Top Key Players (* Source: Sporting Goods Manufacturers Association International) Purpose of the Research: : Purpose of the Research: Consumer Analysis: Secondary Consumer Research Slide 8: (http://www.researchwikis.com/Footwear_Marketing_Research_U.S._Survey_2008) % of respondents Base: All respondents (1070) Reasons for Choice of Running Shoes n = 1070 (Ages 20 to 70) Males = 598 Females = 472 Secondary Consumer Research: Runners as a Lifestyle The “Running” Culture The Americans & Canadians are “runners” by lifestyle. From childhood, running games, hunting, and often a nomadic lifestyle inured Native Americans to covering long distances on foot. So, now a days, athletic footwear has become a sort of commodity seeking comfort rather than being a means of self-expressive benefit that used to exist in the past. Slide 9: Secondary Consumer Research: Runners as a Lifestyle 72% of the 1070 respondents spend $80-$100 (low-to-mid range) for a pair of running shoes. There were no age differences in the price paid for shoes. n = 1070 (Ages 20 to 70) Males = 598 Females = 472 What Runners will pay for Shoes ? Consumer Purchasing Behavior (http://www.researchwikis.com/Footwear_Marketing_Research_U.S._Survey_2008) Base: All respondents (1070) Slide 10: Paying higher prices for athletic footwear is not necessary to get a quality shoe. Article on CBC.ca from October 2007 “Runners want less expensive quality shoes” Secondary Consumer Research: The Changing Trend It looked at nine different pairs of shoes. It didn't reveal the brands they considered — but they weren't exactly cheap, ranging from about $80 to $150, which is nowhere near the fanciest of the fancy. It found that the low- and medium-cost shoes “provided the same (if not better) cushioning of plantar pressure as high-cost running shoes”. British Journal of Sports Medicine, a study was conducted — The study concluded that for some consumers, a perception exists where: Slide 11: Article on CBC.ca from October 2007 “Runners want less expensive quality shoes” There has been something of a backlash. For instance, there's a growing movement of barefoot runners. Nike has jumped on the barefoot bandwagon with its line of “Nike Free shoes”, which the company claims is the closest thing to running barefoot. It's also trying to take advantage of the demand for less-expensive shoes by teaming up with discount shoe retailers in the U.S. to sell a cheaper runner. Last year, NBA star Stephon Marbury launched a line of inexpensive basketball shoes. All cost under $15 US. He claimed they were “as good as anything you'd pay $150 for”. Secondary Consumer Research: The Changing Trend Slide 12: Article on CBC.ca from October 2007 “Runners want less expensive quality shoes” So, it is evident that runners value comfort rather than brand image in their running shoes above all else. In fact, some runners seem to have taken a dislike to high-priced footwear… so much so that they would rather run barefoot! Runners believe that they can obtain shoes that provide this comfort at a low-to-mid range price. But if this attitude exists, why are Foot Locker and Sports Experts still stocked full of high-priced brand shoes? Secondary Consumer Research: The Changing Trend Slide 13: Why can stores afford to carry high-priced brand-name Athletic Footwear? Because… Secondary Consumer Research: Typical Target Markets Slide 14: Part 2: Consumer Analysis By: Mr. Waseem Baber Competitive Research & Pre-purchase Evaluation: Slide 15: Competitive Research: Industry Marketing Efforts Slide 16: Competitive Research: Industry Marketing Efforts Their brand Cole Haan carries a line of dress, casual footwear and accessories for men, women & children. They also market head gear under the brand name Sports Specialties, through Nike Team Sports, Inc. Bauer Nike Hockey Inc. manufactures and distributes ice skates, skate blades, in-roller skates, protective gear, hockey sticks and hockey jerseys and accessories. Nike sells sports apparel, athletic bags and accessories: Slide 17: Competitive Research: Industry Marketing Efforts + = The $29 Nike Plus iPod kit, which was launched in mid-2006, allows runners to put a tiny sensor at the bottom of a $100 Nike Plus running shoe. Those who are serious about the “running” culture can now track their progress. Innovation: Slide 18: Competitive Research: Industry Marketing Efforts Men’s running shoes from $60 to $165 Women’s running shoes from $40 to $165 Slide 19: Competitive Research: Industry Marketing Efforts US: 254 Stores + Intermediaries (Sports Experts, Foot Locker, Inter Sport, etc) Canada: 6 Factory Stores; 1 Retail store + Intermediaries (Sports Experts, Foot Locker, Inter Sport, etc) Slide 20: Competitive Research: Industry Marketing Efforts By combining our digital running world with the physical, the Nike+ Human Race is open to anyone, anywhere. Nike is hosting race events in 25 cities around the world, but by logging into nikeplus.com, every city and every road can become a race-day course. Just as Nike’s products have evolved, so has Nike’s approach to marketing. The 2002 “Secret Tournament” campaign was Nike’s first truly integrated, global marketing effort. Departing from the traditional “big athlete, big ad, big product” formula, Nike created a multi-faceted consumer experience in support of the World Cup. Nike + Human Race is the World’s Largest Running Event (10k event). Slide 21: Competitive Research: Industry Marketing Efforts The site puts the runner and his/her achievements at the heart of this innovation. About 500,000 runners from more than 160 countries have signed on, & some 30 million miles (48 million km) have been uploaded. The site graphs distances for each jog and can tell runners how fast they were going along the way. A map lets them view routes in their neighborhoods. Success & Achievement Belonging & Community http://nikeplus.nike.com/ Slide 22: Competitive Research: Industry Marketing Efforts Slide 23: Competitive Research: Industry Marketing Efforts It is concentrating on upper-end performance shoes market. There are 4 specialty stores in Canada and 22 stores in US. The price range is from $60 to $125(women) and $60 to $200(men). Adidas is pumping big bucks into soccer, the only category in which it leads Nike. Slide 24: Competitive Research: Industry Marketing Efforts Slide 25: Competitive Research: Industry Marketing Efforts It covers the middle-priced, fashion-oriented shoe market. It has 4 distinctive & complimentary brands: Reebok, Rockport, Greg Norman Collection, and Polo Ralph Lauren Footwear. Reebok.com is the first athletic shoe company to give consumers all over the world(36 countries) the opportunity to purchase their products online. Slide 26: Competitive Research: Industry Marketing Efforts Slide 27: Based on "Endorsed by No One" philosophy it invests its resources in R&D and manufacturing instead of celebrity endorsements. It focuses on inspirational & thought-provoking advertising campaigns, grassroots athletics & retailer partnerships. It has developed its proprietary cushioning technology Abzorb®. Range from $55 to $140; 12 stores in Canada; and 137 in US. Competitive Research: Industry Marketing Efforts Slide 28: Competitive Research: Industry Marketing Efforts Slide 29: Nimbus has an abundance of memory foam in the interior & a pillowy new midsole material throughout the forefoot; the breathable mesh upper has an open feel that provides the toes room to spread out. The updated version features an injected Solyte® midsole material under the forefoot which enhances cushioning and durability. US retail price for running shoes range from $80 to $180. Competitive Research: Industry Marketing Efforts Slide 30: Competitive Research: Perception of Brands Perceived to be a fashionable & hip-hop brand that offers style. Predominantly focused on lifestyle. Covers the somewhat middle-priced shoes market. Slide 31: Competitive Research: Big Brands Offer More CONCLUSION Slide 32: Consumer’s: Decision Making Model 41 people were given a survey that took 5 - 10 minutes to complete on average. All individuals who participated in this survey were required to have purchased athletic footwear within the last year. To further explore how athletic footwear consumers decide on which products to purchase, a survey was conducted: This survey was designed to explore the various stages in the Consumer Decision Model: recognition, search, evaluation, purchase, post-purchase evaluation. Slide 33: Q. 101 & Q. 105 Demographics The total of 41 respondents comprised of 21 males (51%) and 20 females (49%). All respondents were under 50 years of age. Most of them belonged to the age group 21-30 (61%), followed by age group 31-40 (29%). Age Groups Gender Consumer’s: Decision Making Model Slide 34: *Other reasons(5%) Comfort Shoes were on discount Needed shoes for work Stimuli of Purchase The most common stimuli that caused need recognition to purchase an athletic footwear was : For exercise/gym (37%). This was followed by a need to replace old worn out shoes (24%). Primary Consumer Research: Buyers’ Decision Process Needed new shoes (22%) For exercise/gym (37%) Old ones worn out (24%) Aesthetics/looks (10%) *Other reasons (5%) Q. 105 % of respondents Slide 35: Sources of Information The most common source of information regarding athletic footwear was : The internet (49%). This was followed by information sought from salespeople (46%) and from friends (32%) The findings are consistent with Secondary research data. n = 41 (Ages 20 to 50) Males = 21 Females = 20 Primary Consumer Research: Buyers’ Decision Process Slide 36: n = 41 (Ages 20 to 50) Males = 21 Females = 20 Important Product Attributes The product/brand attribute considered to be highly important by most respondents was : Comfort (97%). This was followed by Aesthetics/looks (82%) and durability (77%). The only brand considered to provide both is “Nike”. The findings are consistent with Secondary research data. Top 2 Box (Scale 1 – 5) Primary Consumer Research: Buyers’ Decision Process Slide 37: Evaluation of Alternatives Most of the respondents chose those athletic footwear that scored highest on most important attributes (45%). This was followed by those who choose the shoe that best balanced the good and the bad (43%). n = 41 (Ages 20 to 50) Males = 21 Females = 20 Methods of Alternative’s Evaluation Primary Consumer Research: Buyers’ Decision Process Slide 38: Needs arise from desire to exercise, replacement of old shoes, or just plain want new ones. Best sources of information for athletic footwear are the Internet, salespeople, and friends. Overall, comfort is the characteristic that all athletic footwear must have. Most likely to choose the shoe that scores highest on most important attribute, or Most likely to choose the shoe that best balances the good and the bad. Conclusions: Pre - Purchase Activity Primary Consumer Research: Buyers’ Decision Process Slide 39: Part 3: Consumer Analysis By: Mr. Khawar Imam Purchase Decision & Post-purchase Evaluation: Slide 40: % of respondents Q. 400 & Q. 401 Purchasing Choice Priorities The purchasing choice priorities were ranked according to order of importance. The obtained ranking was based on the following reasons: Primary Consumer Research: Buyers’ Decision Process Slide 41: % of respondents In-store Purchase Influence Store as Purchasing Priority Purchasing Frequency % of respondents % of respondents Q. 400, Q. 405 & Q. 610 (18) (23) Those respondents that made alternative or unplanned purchases showed a slightly higher tendency towards store choice as the leading factor in athletic footwear purchases as compared to those who made planned purchases. Primary Consumer Research: Buyers’ Decision Process Slide 42: Cost of Purchase Location of Purchase % of respondents Most of the respondents chose athletic footwear in the price range between $101-$120 (27%). More than half of the respondents (63%) bought their footwear from Athletic-wear stores. S.10 & S.15 Primary Consumer Research: Buyers’ Decision Process Slide 43: (14)§ (5)§ (4)§ (3)§ (2)§ (9)§ (3)§ Brand Awareness and Recall Brand Selected During Last Purchase % of respondents % of respondents Q. 210 & Q. 500 §Actual # of respondents 10 OTHERS* Primary Consumer Research: Buyers’ Decision Process Slide 44: (14)§ (5)§ (4)§ (3)§ (2)§ (9)§ (3)§ Brand Selected During Last Purchase % of respondents §Actual # of respondents 10 OTHERS* Reasons for Purchasing the Particular Brand Q. 505 Primary Consumer Research: Buyers’ Decision Process Slide 45: Q. 505 Reasons for Purchasing the Particular Brands Primary Consumer Research: Buyers’ Decision Process Slide 46: Q. 205 & Q. 510 % of respondents Brands with highest Satisfaction on Attributes Primary Consumer Research: Buyers’ Decision Process Slide 47: Customer Satisfaction with each Purchased Brands Q. 205 & Q. 510 3.0 = Neutral 5.0 = Extremely Satisfied Primary Consumer Research: Buyers’ Decision Process Slide 48: Likelihood to Re-purchase a Brand Reasons for Re-purchasing % of respondents Q. 515, Q. 520 (Most Likely) Primary Consumer Research: Buyers’ Decision Process Slide 49: Purchasing Priorities: Brand is very important as the primary indicator of quality, comfort, etc., Store option is less of an influential factor, and payment option is almost a non factor. In-Store Influence: Respondents that made alternative/unplanned purchases shows a slightly higher tendency towards store choice as the leading factor in footwear purchases. Purchasing Frequency: Most Planned-Purchase respondents buy a pair of footwear once a year while this is followed by those who purchase a pair more than once a year. Purchasing Cost: Most of the respondents chose athletic footwear in the price range between $101-$120 (27%). Purchasing Location: More than half of the respondents (63%) bought their footwear from Athletic foot-wear stores. Conclusions: Actual Purchase Activity Primary Consumer Research: Buyers’ Decision Process Slide 50: Brand Image is considered less important than comfort, durability, price & aesthetics. However, brand is an important indicator that the product possesses the aforementioned qualities. Brand Loyalty/trust (along with comfort & aesthetics) is the primary reason behind the purchases made by the respondents & is also the primary driving force behind a repeat purchase. Nike is by far the brand that respondents are most aware of (98%), followed by Adidas (80%) and Reebok (71%). However, Nike is the first mention amongst most respondents (66%), while Adidas (7%) and Reebok (10%) are nowhere near that mark. Not surprisingly, Nike is the brand purchased by most of the respondents. Unlike the other brands, Nike consistently demonstrates high satisfaction ratings on the three most important product attributes (comfort, aesthetics, durability). This is consistent with our secondary research. Conclusions: Post - Purchase Activity Primary Consumer Research: Buyers’ Decision Process Slide 51: Part 4: Consumer Analysis By: Mr. Mujahid Iqbal Market Entry Strategy & Customer Satisfaction + Retention Program Slide 52: Part 4: Marketing Strategy Consumer Market Analysis On: Athletic Footwear In North America Slide 53: In Canada, there are approx 6.9 million in the Gen Y segment, while in the U.S., there are 80.4 million youths. Gen Y ≥ 2 times Gen X. More health conscious and likely to be loyal to the brand for a longer period. Can apply a differentiated marketing strategy as the Gen Y can be further segmented based on age and gender. :Target Market: (20-34 years old) “Current Generation Y” Target Market Segmentation Market Entry Strategy: Market Segmentation Slide 54: While positioning the Value Proposition to the Target Market, especial emphasis will be given to Comfort and Aesthetics, as they are, as proven by our research, what the consumers want the most at a reasonable price. Positioning the Benefits to Generation Y Market Entry Strategy: Market Positioning Slide 55: Positioning the Benefits to Generation Y Point of Difference Balance of High End Benefits and Price Based on our Consumer Demand Research Data, our main task is to create a Balance of the High-End Benefits and Low-Price Points. It is this balance that will become our Point of Difference among our competitors. Market Entry Strategy: Point of Differentiation Slide 56: PRODUCT Main emphasis will be on comfort based on our findings in primary and secondary research. However style is important as this is the consumer’s first impression of the product. Product performance is important as 37% of those polled in primary data purchased running shoes for exercise purposes. Furthermore 65% of those polled were extremely likely to repurchase product again. Market Entry Strategy: Marketing Mix Program Slide 57: PLACE According to our research more than half of the respondents (63%) bought their footwear from Athletic-wear stores/Specialty stores and 17% of them bought their footwear from Departmental stores. So, we plan to place our product at Specialty Retailers and Departmental stores like: Market Entry Strategy: Marketing Mix Program Slide 58: PRICE In our research, most of the respondents chose athletic footwear in the price range between $101-$120 (27%). This was followed by the 24% of respondents who purchased footwear in the range of $41-$60. Therefore, also keeping in mind the changing consumer trend of preferring low-to-mid range price shoes over the well known premium brands, we will charge a reasonable price in the range of $40-$110. Market Entry Strategy: Marketing Mix Program Slide 59: PROMOTION Research showed that the most common source of information regarding athletic footwear was : The internet (49%), followed by information sought from salespeople (46%), then friends (32%) and advertisements(22%). Therefore our promotional scheme will be quite unorthodox & unique, including: Quick and repetitive commercial advertisements. Sponsoring Tracking team. Product placement in Movies. Product placement in Video Games. Advertisement on the internet, blogs & websites etc. Market Entry Strategy: Marketing Mix Program Slide 60: PROMOTION Researchers used Eye-tracker Technology to observe viewing behavior as subjects fast-forwarded through TV commercials. Here are some of their (somewhat astounding) findings: Fast-forwarding viewers actually pay more attention. Fast-forwarded advertisements still create brand memory. Fast-forwarded commercials can positively affect brand attitude. The attention of fast-forwarding viewers is heavily limited to the center of the screen. (Source: Marketing Profs Vol. 2, No. 2 January 14, 2009) 1: Quick and repetitive commercial advertisements: Market Entry Strategy: Marketing Mix Program Slide 61: PROMOTION 2: Sponsoring Tracking Teams Market Entry Strategy: Marketing Mix Program Slide 62: PROMOTION (Source: Marketing Profs Vol. 2, No. 2 January 14, 2009) 3: Product placement in Movies Market Entry Strategy: Marketing Mix Program Slide 63: PROMOTION In-game advertising has reached a point where ads can improve the gaming experience. 44% of online gamers. 40% of gamers in general, are women. Over 50% are between 18 and 49. Extreme Gamers devote 45 hours a week to games. 82% of them respond positively to contextual in-game ads. Surveys also say gamers are more influential consumers i.e. Opinion Leaders than their less playful peers. 4: Product placement in Video Games: (Source: Marketing Profs Vol. 1, No. 26 November 13, 2008) Market Entry Strategy: Marketing Mix Program Slide 64: PROMOTION 5: Advertisement on the internet, blogs & websites etc Market Entry Strategy: Marketing Mix Program Slide 65: BRAND DEVELOPMENT Brand plays a very important role in the Purchase decision (71%) as well as Re-purchase (65%). Consumers are very brand loyal (61%) and build strong brand recognition. Market Entry Strategy: Marketing Mix Program In Brand development, we will utilize the Participation of all the 4 P’s. In Contrast to Self-expressive Model, we plan to build our brand image on the Relationship-Basis Model. BRAND IMAGE: A caring friend, characterized by trust, dependability & understanding. A brand that came into the market at a time (i.e., Recession) when the Consumers needed it the most. Slide 66: Creating Positive word-of-mouth Properly trained employees. Viral marketing. Customer experience must be positive in every way. Handling of customer complaints is crucial. Customer: Satisfaction & Retention Program Slide 67: Reducing negative word-of-mouth Our website will contain a complaint section where customers can voice their displeasure which will be responded to. Customer: Satisfaction & Retention Program Slide 68: Thank you for your Time!Any Questions? Special Thanks to: Mr. Mark Bundang MHB Security, USA. Conceived & Compiled For: M.B.A-VITH Semester KUBS. You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Consumer Behavior Research faisalrehman Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 1933 Category: Education License: All Rights Reserved Like it (6) Dislike it (0) Added: April 06, 2010 This Presentation is Public Favorites: 2 Presentation Description Consumers attitude towards premium branded athletic footwear: The research was conducted for a possible geographic expansion of a Pakistani Footwear Company into North America particularly USA, as recession provides an oppertunity for the Asian Countries to enter into the Developed Countries with their relatively low-priced products. Comments Posting comment... By: Rebel1992 (18 month(s) ago) my apologies, i meant the idea of peventing the effect of "word of mouth gaining a bad rep on you" was pure genius...IDEA:introduce feedback channels... Saving..... Post Reply Close Saving..... Edit Comment Close By: Rebel1992 (18 month(s) ago) hi sir, i would like to point an error on slide 37, the addition of 45,43,8,5 is 101....gining a census value of 101%...other than that, i thought your presentation was amazing... espescially yr recommendations on how to prevent moulding a bad rep through word of mouth.....was pure genius, though many other companies,industries have utilised this method... lastly, could you explain how you were able to present a 3d view of the shoe on ppt, were you doing it by MAC?...if possible, would it be possible to send only slide 5 to my mail where you have utilised the 3d effect of shoe... cheers. Saving..... Post Reply Close Saving..... Edit Comment Close By: shivei (22 month(s) ago) nice 1...can u send it..on my id shivee_dhamija@yahoo.in Saving..... Post Reply Close Saving..... Edit Comment Close By: shandi (26 month(s) ago) hiiiiiiiiiiiiiiiiiiiiiiiiii good presentation Saving..... Post Reply Close By: faisalrehman (26 month(s) ago) thanx... Saving..... Edit Comment Close Premium member Presentation Transcript Slide 1: Consumer Behavior Analysis Term Presentation Dr. Asher Naeem (University of Karachi) Changing Trend Towards: Athletic Footwear In North America Presented To: Special Thanks to: Mr. Mark Bundang MHB Security, USA. Prepared By: Dr. Faisal M.B Rehman Agenda : Agenda We will be dealing with the following dimensions of Consumer Market Analysis on Athletic Footwear: The center of focus throughout the Consumer Market Analysis will be: Consumer Market Analysis On: Athletic Footwear In North America “The Consumers’ Changing Behavior Towards Premium Branded Athletic Footwear”….. Slide 3: Part 1: Market Background US footwear imports = 40% US Athletic footwear = 35% » On an average, every US citizen purchases more than 4 pairs of shoes each year. » In 2007, US spent $38 billion to purchase more than 1.1 billion pairs of footwear. Slide 4: 2008 Global Imports of Shoes into US $43.3 Billion (* In US dollars) The US Market: Global Importer Imports account for about 90% of shoes sold in the US. US market for athletic shoes alone is approx. $17 billion. Thin-soled sneakers are a $2 billion industry in the US. $ 16.9 Billion $ 26.4 Billion 61% 39 % Slide 5: Athletic Footwear Includes: Running shoes roughly accounts for $5 billion market in the U.S. alone for the year 2008. Historically, a growth category whereas sales of shoes for sports like baseball or football is simply a matter of taking market share from another company. However, fashion/style - themed sneakers overtook running shoes as the top-selling category in the athletic-footwear market in July 2007.* Baseball/Softball Running/Jogging Cross-Training Basketball Aerobic Dance Other Sports (*Source: Market-Research Firm NPD Group) The US Market: Athletic Footwear Slide 6: Global share of the branded footwear market : Nike(38%) vs. Adidas(34%) US athletic-footwear market : Nike(36%) vs. Reebok(12.2%) vs. Adidas(8.9%) “Nike dominates the Footwear Market” The US Market: Top Key Players (* Source: Sporting Goods Manufacturers Association International) Purpose of the Research: : Purpose of the Research: Consumer Analysis: Secondary Consumer Research Slide 8: (http://www.researchwikis.com/Footwear_Marketing_Research_U.S._Survey_2008) % of respondents Base: All respondents (1070) Reasons for Choice of Running Shoes n = 1070 (Ages 20 to 70) Males = 598 Females = 472 Secondary Consumer Research: Runners as a Lifestyle The “Running” Culture The Americans & Canadians are “runners” by lifestyle. From childhood, running games, hunting, and often a nomadic lifestyle inured Native Americans to covering long distances on foot. So, now a days, athletic footwear has become a sort of commodity seeking comfort rather than being a means of self-expressive benefit that used to exist in the past. Slide 9: Secondary Consumer Research: Runners as a Lifestyle 72% of the 1070 respondents spend $80-$100 (low-to-mid range) for a pair of running shoes. There were no age differences in the price paid for shoes. n = 1070 (Ages 20 to 70) Males = 598 Females = 472 What Runners will pay for Shoes ? Consumer Purchasing Behavior (http://www.researchwikis.com/Footwear_Marketing_Research_U.S._Survey_2008) Base: All respondents (1070) Slide 10: Paying higher prices for athletic footwear is not necessary to get a quality shoe. Article on CBC.ca from October 2007 “Runners want less expensive quality shoes” Secondary Consumer Research: The Changing Trend It looked at nine different pairs of shoes. It didn't reveal the brands they considered — but they weren't exactly cheap, ranging from about $80 to $150, which is nowhere near the fanciest of the fancy. It found that the low- and medium-cost shoes “provided the same (if not better) cushioning of plantar pressure as high-cost running shoes”. British Journal of Sports Medicine, a study was conducted — The study concluded that for some consumers, a perception exists where: Slide 11: Article on CBC.ca from October 2007 “Runners want less expensive quality shoes” There has been something of a backlash. For instance, there's a growing movement of barefoot runners. Nike has jumped on the barefoot bandwagon with its line of “Nike Free shoes”, which the company claims is the closest thing to running barefoot. It's also trying to take advantage of the demand for less-expensive shoes by teaming up with discount shoe retailers in the U.S. to sell a cheaper runner. Last year, NBA star Stephon Marbury launched a line of inexpensive basketball shoes. All cost under $15 US. He claimed they were “as good as anything you'd pay $150 for”. Secondary Consumer Research: The Changing Trend Slide 12: Article on CBC.ca from October 2007 “Runners want less expensive quality shoes” So, it is evident that runners value comfort rather than brand image in their running shoes above all else. In fact, some runners seem to have taken a dislike to high-priced footwear… so much so that they would rather run barefoot! Runners believe that they can obtain shoes that provide this comfort at a low-to-mid range price. But if this attitude exists, why are Foot Locker and Sports Experts still stocked full of high-priced brand shoes? Secondary Consumer Research: The Changing Trend Slide 13: Why can stores afford to carry high-priced brand-name Athletic Footwear? Because… Secondary Consumer Research: Typical Target Markets Slide 14: Part 2: Consumer Analysis By: Mr. Waseem Baber Competitive Research & Pre-purchase Evaluation: Slide 15: Competitive Research: Industry Marketing Efforts Slide 16: Competitive Research: Industry Marketing Efforts Their brand Cole Haan carries a line of dress, casual footwear and accessories for men, women & children. They also market head gear under the brand name Sports Specialties, through Nike Team Sports, Inc. Bauer Nike Hockey Inc. manufactures and distributes ice skates, skate blades, in-roller skates, protective gear, hockey sticks and hockey jerseys and accessories. Nike sells sports apparel, athletic bags and accessories: Slide 17: Competitive Research: Industry Marketing Efforts + = The $29 Nike Plus iPod kit, which was launched in mid-2006, allows runners to put a tiny sensor at the bottom of a $100 Nike Plus running shoe. Those who are serious about the “running” culture can now track their progress. Innovation: Slide 18: Competitive Research: Industry Marketing Efforts Men’s running shoes from $60 to $165 Women’s running shoes from $40 to $165 Slide 19: Competitive Research: Industry Marketing Efforts US: 254 Stores + Intermediaries (Sports Experts, Foot Locker, Inter Sport, etc) Canada: 6 Factory Stores; 1 Retail store + Intermediaries (Sports Experts, Foot Locker, Inter Sport, etc) Slide 20: Competitive Research: Industry Marketing Efforts By combining our digital running world with the physical, the Nike+ Human Race is open to anyone, anywhere. Nike is hosting race events in 25 cities around the world, but by logging into nikeplus.com, every city and every road can become a race-day course. Just as Nike’s products have evolved, so has Nike’s approach to marketing. The 2002 “Secret Tournament” campaign was Nike’s first truly integrated, global marketing effort. Departing from the traditional “big athlete, big ad, big product” formula, Nike created a multi-faceted consumer experience in support of the World Cup. Nike + Human Race is the World’s Largest Running Event (10k event). Slide 21: Competitive Research: Industry Marketing Efforts The site puts the runner and his/her achievements at the heart of this innovation. About 500,000 runners from more than 160 countries have signed on, & some 30 million miles (48 million km) have been uploaded. The site graphs distances for each jog and can tell runners how fast they were going along the way. A map lets them view routes in their neighborhoods. Success & Achievement Belonging & Community http://nikeplus.nike.com/ Slide 22: Competitive Research: Industry Marketing Efforts Slide 23: Competitive Research: Industry Marketing Efforts It is concentrating on upper-end performance shoes market. There are 4 specialty stores in Canada and 22 stores in US. The price range is from $60 to $125(women) and $60 to $200(men). Adidas is pumping big bucks into soccer, the only category in which it leads Nike. Slide 24: Competitive Research: Industry Marketing Efforts Slide 25: Competitive Research: Industry Marketing Efforts It covers the middle-priced, fashion-oriented shoe market. It has 4 distinctive & complimentary brands: Reebok, Rockport, Greg Norman Collection, and Polo Ralph Lauren Footwear. Reebok.com is the first athletic shoe company to give consumers all over the world(36 countries) the opportunity to purchase their products online. Slide 26: Competitive Research: Industry Marketing Efforts Slide 27: Based on "Endorsed by No One" philosophy it invests its resources in R&D and manufacturing instead of celebrity endorsements. It focuses on inspirational & thought-provoking advertising campaigns, grassroots athletics & retailer partnerships. It has developed its proprietary cushioning technology Abzorb®. Range from $55 to $140; 12 stores in Canada; and 137 in US. Competitive Research: Industry Marketing Efforts Slide 28: Competitive Research: Industry Marketing Efforts Slide 29: Nimbus has an abundance of memory foam in the interior & a pillowy new midsole material throughout the forefoot; the breathable mesh upper has an open feel that provides the toes room to spread out. The updated version features an injected Solyte® midsole material under the forefoot which enhances cushioning and durability. US retail price for running shoes range from $80 to $180. Competitive Research: Industry Marketing Efforts Slide 30: Competitive Research: Perception of Brands Perceived to be a fashionable & hip-hop brand that offers style. Predominantly focused on lifestyle. Covers the somewhat middle-priced shoes market. Slide 31: Competitive Research: Big Brands Offer More CONCLUSION Slide 32: Consumer’s: Decision Making Model 41 people were given a survey that took 5 - 10 minutes to complete on average. All individuals who participated in this survey were required to have purchased athletic footwear within the last year. To further explore how athletic footwear consumers decide on which products to purchase, a survey was conducted: This survey was designed to explore the various stages in the Consumer Decision Model: recognition, search, evaluation, purchase, post-purchase evaluation. Slide 33: Q. 101 & Q. 105 Demographics The total of 41 respondents comprised of 21 males (51%) and 20 females (49%). All respondents were under 50 years of age. Most of them belonged to the age group 21-30 (61%), followed by age group 31-40 (29%). Age Groups Gender Consumer’s: Decision Making Model Slide 34: *Other reasons(5%) Comfort Shoes were on discount Needed shoes for work Stimuli of Purchase The most common stimuli that caused need recognition to purchase an athletic footwear was : For exercise/gym (37%). This was followed by a need to replace old worn out shoes (24%). Primary Consumer Research: Buyers’ Decision Process Needed new shoes (22%) For exercise/gym (37%) Old ones worn out (24%) Aesthetics/looks (10%) *Other reasons (5%) Q. 105 % of respondents Slide 35: Sources of Information The most common source of information regarding athletic footwear was : The internet (49%). This was followed by information sought from salespeople (46%) and from friends (32%) The findings are consistent with Secondary research data. n = 41 (Ages 20 to 50) Males = 21 Females = 20 Primary Consumer Research: Buyers’ Decision Process Slide 36: n = 41 (Ages 20 to 50) Males = 21 Females = 20 Important Product Attributes The product/brand attribute considered to be highly important by most respondents was : Comfort (97%). This was followed by Aesthetics/looks (82%) and durability (77%). The only brand considered to provide both is “Nike”. The findings are consistent with Secondary research data. Top 2 Box (Scale 1 – 5) Primary Consumer Research: Buyers’ Decision Process Slide 37: Evaluation of Alternatives Most of the respondents chose those athletic footwear that scored highest on most important attributes (45%). This was followed by those who choose the shoe that best balanced the good and the bad (43%). n = 41 (Ages 20 to 50) Males = 21 Females = 20 Methods of Alternative’s Evaluation Primary Consumer Research: Buyers’ Decision Process Slide 38: Needs arise from desire to exercise, replacement of old shoes, or just plain want new ones. Best sources of information for athletic footwear are the Internet, salespeople, and friends. Overall, comfort is the characteristic that all athletic footwear must have. Most likely to choose the shoe that scores highest on most important attribute, or Most likely to choose the shoe that best balances the good and the bad. Conclusions: Pre - Purchase Activity Primary Consumer Research: Buyers’ Decision Process Slide 39: Part 3: Consumer Analysis By: Mr. Khawar Imam Purchase Decision & Post-purchase Evaluation: Slide 40: % of respondents Q. 400 & Q. 401 Purchasing Choice Priorities The purchasing choice priorities were ranked according to order of importance. The obtained ranking was based on the following reasons: Primary Consumer Research: Buyers’ Decision Process Slide 41: % of respondents In-store Purchase Influence Store as Purchasing Priority Purchasing Frequency % of respondents % of respondents Q. 400, Q. 405 & Q. 610 (18) (23) Those respondents that made alternative or unplanned purchases showed a slightly higher tendency towards store choice as the leading factor in athletic footwear purchases as compared to those who made planned purchases. Primary Consumer Research: Buyers’ Decision Process Slide 42: Cost of Purchase Location of Purchase % of respondents Most of the respondents chose athletic footwear in the price range between $101-$120 (27%). More than half of the respondents (63%) bought their footwear from Athletic-wear stores. S.10 & S.15 Primary Consumer Research: Buyers’ Decision Process Slide 43: (14)§ (5)§ (4)§ (3)§ (2)§ (9)§ (3)§ Brand Awareness and Recall Brand Selected During Last Purchase % of respondents % of respondents Q. 210 & Q. 500 §Actual # of respondents 10 OTHERS* Primary Consumer Research: Buyers’ Decision Process Slide 44: (14)§ (5)§ (4)§ (3)§ (2)§ (9)§ (3)§ Brand Selected During Last Purchase % of respondents §Actual # of respondents 10 OTHERS* Reasons for Purchasing the Particular Brand Q. 505 Primary Consumer Research: Buyers’ Decision Process Slide 45: Q. 505 Reasons for Purchasing the Particular Brands Primary Consumer Research: Buyers’ Decision Process Slide 46: Q. 205 & Q. 510 % of respondents Brands with highest Satisfaction on Attributes Primary Consumer Research: Buyers’ Decision Process Slide 47: Customer Satisfaction with each Purchased Brands Q. 205 & Q. 510 3.0 = Neutral 5.0 = Extremely Satisfied Primary Consumer Research: Buyers’ Decision Process Slide 48: Likelihood to Re-purchase a Brand Reasons for Re-purchasing % of respondents Q. 515, Q. 520 (Most Likely) Primary Consumer Research: Buyers’ Decision Process Slide 49: Purchasing Priorities: Brand is very important as the primary indicator of quality, comfort, etc., Store option is less of an influential factor, and payment option is almost a non factor. In-Store Influence: Respondents that made alternative/unplanned purchases shows a slightly higher tendency towards store choice as the leading factor in footwear purchases. Purchasing Frequency: Most Planned-Purchase respondents buy a pair of footwear once a year while this is followed by those who purchase a pair more than once a year. Purchasing Cost: Most of the respondents chose athletic footwear in the price range between $101-$120 (27%). Purchasing Location: More than half of the respondents (63%) bought their footwear from Athletic foot-wear stores. Conclusions: Actual Purchase Activity Primary Consumer Research: Buyers’ Decision Process Slide 50: Brand Image is considered less important than comfort, durability, price & aesthetics. However, brand is an important indicator that the product possesses the aforementioned qualities. Brand Loyalty/trust (along with comfort & aesthetics) is the primary reason behind the purchases made by the respondents & is also the primary driving force behind a repeat purchase. Nike is by far the brand that respondents are most aware of (98%), followed by Adidas (80%) and Reebok (71%). However, Nike is the first mention amongst most respondents (66%), while Adidas (7%) and Reebok (10%) are nowhere near that mark. Not surprisingly, Nike is the brand purchased by most of the respondents. Unlike the other brands, Nike consistently demonstrates high satisfaction ratings on the three most important product attributes (comfort, aesthetics, durability). This is consistent with our secondary research. Conclusions: Post - Purchase Activity Primary Consumer Research: Buyers’ Decision Process Slide 51: Part 4: Consumer Analysis By: Mr. Mujahid Iqbal Market Entry Strategy & Customer Satisfaction + Retention Program Slide 52: Part 4: Marketing Strategy Consumer Market Analysis On: Athletic Footwear In North America Slide 53: In Canada, there are approx 6.9 million in the Gen Y segment, while in the U.S., there are 80.4 million youths. Gen Y ≥ 2 times Gen X. More health conscious and likely to be loyal to the brand for a longer period. Can apply a differentiated marketing strategy as the Gen Y can be further segmented based on age and gender. :Target Market: (20-34 years old) “Current Generation Y” Target Market Segmentation Market Entry Strategy: Market Segmentation Slide 54: While positioning the Value Proposition to the Target Market, especial emphasis will be given to Comfort and Aesthetics, as they are, as proven by our research, what the consumers want the most at a reasonable price. Positioning the Benefits to Generation Y Market Entry Strategy: Market Positioning Slide 55: Positioning the Benefits to Generation Y Point of Difference Balance of High End Benefits and Price Based on our Consumer Demand Research Data, our main task is to create a Balance of the High-End Benefits and Low-Price Points. It is this balance that will become our Point of Difference among our competitors. Market Entry Strategy: Point of Differentiation Slide 56: PRODUCT Main emphasis will be on comfort based on our findings in primary and secondary research. However style is important as this is the consumer’s first impression of the product. Product performance is important as 37% of those polled in primary data purchased running shoes for exercise purposes. Furthermore 65% of those polled were extremely likely to repurchase product again. Market Entry Strategy: Marketing Mix Program Slide 57: PLACE According to our research more than half of the respondents (63%) bought their footwear from Athletic-wear stores/Specialty stores and 17% of them bought their footwear from Departmental stores. So, we plan to place our product at Specialty Retailers and Departmental stores like: Market Entry Strategy: Marketing Mix Program Slide 58: PRICE In our research, most of the respondents chose athletic footwear in the price range between $101-$120 (27%). This was followed by the 24% of respondents who purchased footwear in the range of $41-$60. Therefore, also keeping in mind the changing consumer trend of preferring low-to-mid range price shoes over the well known premium brands, we will charge a reasonable price in the range of $40-$110. Market Entry Strategy: Marketing Mix Program Slide 59: PROMOTION Research showed that the most common source of information regarding athletic footwear was : The internet (49%), followed by information sought from salespeople (46%), then friends (32%) and advertisements(22%). Therefore our promotional scheme will be quite unorthodox & unique, including: Quick and repetitive commercial advertisements. Sponsoring Tracking team. Product placement in Movies. Product placement in Video Games. Advertisement on the internet, blogs & websites etc. Market Entry Strategy: Marketing Mix Program Slide 60: PROMOTION Researchers used Eye-tracker Technology to observe viewing behavior as subjects fast-forwarded through TV commercials. Here are some of their (somewhat astounding) findings: Fast-forwarding viewers actually pay more attention. Fast-forwarded advertisements still create brand memory. Fast-forwarded commercials can positively affect brand attitude. The attention of fast-forwarding viewers is heavily limited to the center of the screen. (Source: Marketing Profs Vol. 2, No. 2 January 14, 2009) 1: Quick and repetitive commercial advertisements: Market Entry Strategy: Marketing Mix Program Slide 61: PROMOTION 2: Sponsoring Tracking Teams Market Entry Strategy: Marketing Mix Program Slide 62: PROMOTION (Source: Marketing Profs Vol. 2, No. 2 January 14, 2009) 3: Product placement in Movies Market Entry Strategy: Marketing Mix Program Slide 63: PROMOTION In-game advertising has reached a point where ads can improve the gaming experience. 44% of online gamers. 40% of gamers in general, are women. Over 50% are between 18 and 49. Extreme Gamers devote 45 hours a week to games. 82% of them respond positively to contextual in-game ads. Surveys also say gamers are more influential consumers i.e. Opinion Leaders than their less playful peers. 4: Product placement in Video Games: (Source: Marketing Profs Vol. 1, No. 26 November 13, 2008) Market Entry Strategy: Marketing Mix Program Slide 64: PROMOTION 5: Advertisement on the internet, blogs & websites etc Market Entry Strategy: Marketing Mix Program Slide 65: BRAND DEVELOPMENT Brand plays a very important role in the Purchase decision (71%) as well as Re-purchase (65%). Consumers are very brand loyal (61%) and build strong brand recognition. Market Entry Strategy: Marketing Mix Program In Brand development, we will utilize the Participation of all the 4 P’s. In Contrast to Self-expressive Model, we plan to build our brand image on the Relationship-Basis Model. BRAND IMAGE: A caring friend, characterized by trust, dependability & understanding. A brand that came into the market at a time (i.e., Recession) when the Consumers needed it the most. Slide 66: Creating Positive word-of-mouth Properly trained employees. Viral marketing. Customer experience must be positive in every way. Handling of customer complaints is crucial. Customer: Satisfaction & Retention Program Slide 67: Reducing negative word-of-mouth Our website will contain a complaint section where customers can voice their displeasure which will be responded to. Customer: Satisfaction & Retention Program Slide 68: Thank you for your Time!Any Questions? Special Thanks to: Mr. Mark Bundang MHB Security, USA. Conceived & Compiled For: M.B.A-VITH Semester KUBS.