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Nikkei recently teams up with Apple Company to produce the Nikkei* products which can monitor a runner’s performance through a radio In the shoe that can link to the Pods. Besides that, Nikkei also becomes the top of three companies which are climate-friendly companies which build better image to customers. Nine’s excellence marketing strategies are their energy to achieve their market goals. Nikkei believes the “pyramid influence” that the preferences of a small percentage of top athletes influence the product and brand choice.
Hence, Nikkei should introduce new products to maintain its customer loyalty as well as attract new customer markets. However, it will also have negative implication if Nine’s implement new products rapidly. Strength The first strength is the product’s strong brand recognition. Almost all people know the brand Nikkei and its logo, and usually even without the brand name the customer can still recognize the brand by looking at the check ј or “swoosh” logo. The second strength could definitely be contributed by its distribution. In the U.
S. Alone, there are around 18,000 retail accounts and outside the U. S. There are around 30,000 international retail outlets that sell Nikkei products. Nikkei also operates a “futures” program, wherein retailers can order up to six months in advance. They sell their products through independent distributors in 200 countries around the world. The next strength could be attributed to its research and development. They have a team which observes athletes in order to provide them with the latest technologies in footwear and apparel.
Since Nikkei contracts with foreign manufacturers to produce their shoes, the company does not really require a huge investment in machines and equipments, which is a strength because they have fewer expenses. Having a broad range of products also contribute to Nine’s success, because it gives the consumers a chance to choose what they want. They have Nikkei performance focusing on athletes, Nikkei active which includes “gym to street” wear, and Nikkei Fusion stylish clothing made of high performance fabrics etc… With regards with the company itself, they have good marketing.
Nikkei has online stores where people can buy or browse for new designs etc… They market their product as high-performance products designed with high-technology features. Lastly, another strength is their strong management style and culture. Their founder created a strong culture based on loyalty and camaraderie, he trusts these employees to “Just Do It”. They continue to follow their mender’s philosophy which is Play by the rules, but be ferocious… Let’s all right to be Goliath, but always act like David.
Weaknesses Nine’s main weakness is their lack of focus on one main product. This is because of Nine’s commitment on having diversified products for athletes, meaning having too many different products available to sell to their customers. Due to this, they tend to have divided attention on each product line. Although having many different products might be advantageous (increased sales, additional market penetration, fall back in case one product fails), Nikkei should also consider the time ; resources pent in maintaining each product.
Another weakness that we could identify, although not as great as the first, would be Nine’s pricing strategy. Compared to their competitors, Nine’s products tend to be more expensive than those of their competitors. But this may be due to their products reputation, being made from the highest quality materials, extensively researched and developed and tested by extraordinary athletes around the world. One of the opportunities that we quickly saw is the company’s efforts in penetrating the market. Nikkei is currently focusing on Generation Y market (age category) and omen (gender category).
Due to the strong increase in demand for clothing & footwear for leisure activities by Generation Y representing a large sum (of about 60 million people) of potential consumers, Nikkei addresses this by acquiring Converse, increasing its offering in the currently popular retro and classic shoes. Besides from acquiring Converse to address the issue on Generation Y, Nikkei has begun marketing towards women more aggressively by creating Nikkei Goddess stores and introducing women’s yoga shoes in an attempt to appeal to health conscious women. Lately, errs have become more brand conscious giving Nikkei an edge over their competitors.
Nine’s name and logo present high consumer awareness that the company does not need to include their name on each product that they produce. The “swoosh” logo is all that is needed. Also, some legal/regulatory issues provide many opportunities not only for Nikkei, but for international operations because of easier access to different countries. Threats Because Nikkei has a strong brand name, controversies affect the company in a negative way. Some Nikkei followers may be turned off by controversies about Nikkei not Ewing ethical, which may or may not be true.
This causes loss of sales for the company. High level competition of Nikkei with Rebook and Ideas also is a threat to the company as all of these companies have almost the same product line and target the same market. This is why strategies are very important for Nikkei. Limited exports of Nikkei products due to legal restrictions also pose as a threat to Nikkei as the supply of the products internationally is limited as well. They cannot sell to other countries as much as they would want to because of the limitation set by the government which decreases their potential for more sales and revenues.
Nikkei should not only focusing on sportswear but also starting to build up some fashion trends for kids and adults. And they should be attentive to the fast changing trends needed by their customers. Also they shouldn’t keep their recycling issue because of their elite customers. They would gain more reputation if they are implementing the recycling of their old shoes. Also if Ideas would like to compete for Nikkei, they should also be innovative in their products and get a well-known personality to endorse their product.
They should also make some smart shoes for the athletes, expand its sponsorship program, change in consumer perception products, encourage product customization and focus on their emerging markets. Nikkei has remained and continues to remain at the top in producing and distributing their sports clothes and equipment. However, Nikkei should consider the competitive pressure is very heavy and not allow the “sleep at the top”. So Nikkei should continuously find efficient marketing strategies to keep their top leaders positions. Management is competent.
Nikkei should increase their market shares through issue ewe products, competitive pricing strategies, and advertisement and promotions activities. Nikkei also should restructure market dominance by separate themselves from the competitors mainly through mass promotion strategies and pricing strategies which make Nikkei more attractive to customers. Besides that, Nikkei must increase their awareness of corporate social responsibility to strengthen their image of themselves. What’s more, Nikkei should pay much attention to their R&D department to research out different kinds of people with different taste to get the market diversification goals.