New Product Concept

For the marketing course, I have selected Nike to develop research on. I have chosen Nike due to their positive reputation and environmental consciousness. Nike supports community, having hashtags in which people share their goals and progress. This community lifts each other up and pushes each other to their best potential. Nike’s tagline is “Just Do It”, encouraging consumers to push themselves to achieve their goals. They sell athletic wear and shoes for all ages. They also are sustainable and environmentally conscious, using recycled materials for a portion of their products.

The public expects high quality products and frequent innovation, as well as environmentally conscious actions. This is what is expected of most companies by the public, however the public tends to accept less. Customers of Nike accept innovation and environmentally conscious steps, even if this progress is slow and imperfect.

The new product concept is a fully upcycled running sneaker that would be more affordable. Nike is known to have higher prices for their clothing and shoes, however this does not appeal to everyone. Everyone desires and needs good quality shoes, however not everyone has the financial resources to get that. This sneaker would be catered to those who want to maintain an active life style but may not have the resources for expensive shoes.

The design of this shoe would be created with multiple components of the other shoes manufactured by Nike. Naturally, there is waste during the manufacturing process. These shoes would be designed using the scraps and leftover materials from other shoes. Because they are made from waste or leftover scraps, these shoes would be inexpensive to manufacture. This would allow Nike to sell the shoes at a lower price.

It is important to learn as much as possible about my target audience when creating a new product concept. I want to learn the age range and specific needs of my target audience. Would it be more beneficial to create an everyday sneaker that can be worn for a variety of activities as opposed to just running shoes? What income level are they at and what is a reasonable price point? I would also like to know the growth rate of this population and their selection process. This will help me design a shoe that is affordable and meets the needs of my audience.

For the competition, it is important that I learn what they are offering. I must understand their price points and the quality. Many competitors may be able to offer a lower price, however this comes with less quality. It may be a cheaper option, but are they sustainable and will the product last? I will also need to deep dive into what is drawing customers to them. What exactly are the features of their shoes that lead consumers to purchase their product over another? Looking at the numbers will also be crucial, as the numbers do not lie. These numbers include units sold, revenue, and investors. It is also important to do research on the reputation of the company. Are there any controversies? It is important to understand the social standing of any competitors, as this will show me where I stand in comparison to them.

Some external factors that impact this new product concept would be the growing demand. As demand for these affordable shoes grows, the supply of leftover scraps and materials could limit production. Also, the idea of recycled shoes may be viewed as lower quality by society, pushing away customers rather than drawing them in. Tariffs and trade policies may also affect the costs of the shoes. With that said, technological factors and advancements in recycling could lower the costs of production of the shoes.

I would use primary resources to research and gather information for this product. I would gather primary resources regarding the current state of the market, as well as the direct websites of competitors. I would also engage in reviews and other posts by consumers and understand what they are looking for. I would find quantitative and qualitative data from reliable sources that are relevant and up to date.