Marketing homework help
Assignment #5
Chen Chen
4V’s Visual (Sneakers)
Volume: Sales of sneakers
Variety: Type of sneakers
Variation: Generation of sneakers
Visibility: Number of stores on street and in mall
4V’s Visual (Sneakers)
Analysis
I define Volume as sales of sneakers of NIKE. NIKE already has a high sale of sneakers. We do not need to worry about this now.
I define Variety as type of sneakers that NIKE has. As we known, NIKE also has remarkably high variety of their sneakers such as football sneakers, basketball sneakers, and running shoes etc. This will easily meet our customer’s requirement for sneakers’ type.
I define Variation as Generation of sneakers. For example, NIKE has a brand called Air Jordan for basketball sneakers. Air Jordan has 34 generations which means Air Jordan has 34 different styles basketball sneakers. It has impressive high generations for a sneaker brand.
I define Visibility as Number of stores on street and mall that NIKE has. When I walk on street, there is barely number of NIKE stores. Most of NIKE products sell in Footlocker or Champs which are the third-party stores for sports product. It is a disadvantage of visibility of NIKE. Our customer needs to walk into these third-party stores to find our products. We will lose our brand awareness and brand image by some way. We should open more individual stores on street and in malls to help our customer to find us.
4P’s
Four perspectives are:
Top-down
Bottom-up
Operations resources
Market requirements
Top-down
Corporate strategy: Make profit and increase the price of stock.
Business strategy: Be the most famous sports product brand in the world.
Bottom-up
They offer different types of sneakers such as basketball sneakers, football sneakers and soccer sneakers etc.
Market requirements
Quality: They use the highest quality and advanced technology materials to make sneakers.
Speed: Fast delivery from purchase to receive products. And fast customer service response.
Dependability: Customer can purchase sneakers through different channels such as Footlocker, Champ, NIKE stores and NIKE website with the same high quality.
Flexibility: Customer can purchase NIKE’s products online or in store. They can custom sneakers in different color coding and write down words on sneakers on website.
Cost: Standard price and high-cost performance.
Operations resources
Capacity: Worldwide store locations and celebrities’ endorsements.
Supply networks: They have various and stable suppliers and manufacturers. Also, their deliver channel is reliable.
Process technology: They have professional research and development team to develop sneakers base on professional athletes’ exercise habit.
Development and organization: Training staffs. And corporate with more celebrities and professional athletes.
Operation Strategy Matrix
Cost = Standard price with high-cost performance
Dependability = With the same quality of products in every purchase channels
Flexibility = Different purchase channels
Quality = Quality of products and services
Speed = Speed of delivery
Polar Diagram
As we can see from the polar diagram, Nike has better standard price with high-cost performance (Cost) than Adidas. Although Nike’s product especially sneakers have higher price than Adidas, the performance of Nike’s product is in a higher level.
Nike also has more different purchase channels (Flexibility) for their customer to purchase Nike’s product than Adidas, but Nike cannot guaranty their customer is able to buy their products with the same quality in every purchase channels (Dependability). Even though Adidas does not have a wide purchase channel as Nike does, they are able to keep their product’s price standardized in different channels.
Both Nike and Adidas have an average delivery speed (Speed). It still takes at least one week to delivery for both companies.
Both Nike and Adidas have good quality of their products and services (Quality) but Nike just slightly better.
I think Nike keep their quality, cost, and flexibility as still and put more attention on their dependability. Nike needs to consider their flexibility and dependability as the same time. Speed for Nike is not a big challenge. However, Nike can consider to corporate with some high-performance delivery company to increase their delivery speed.
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