Tag Archives: sports

Working Out from Home

The impacts of the coronavirus pandemic is changing consumer behavior and the dynamics of many industries. We have seen shortages of essential items such as toilet paper, eggs, and flour. There has also been a steep rise in the sales and uses of technology as people have moved to working from home and dramatically reduced their social interactions. Virtually all aspects of our lives have been impacted in one way or another, including how we exercise and work out.

With gyms and fitness centers closed due to coronavirus concerns, people have moved to new ways to work out. New fitness routines include using old-fashioned home equipment, online Zoom workouts, and high-tech Internet-connected equipment. Many of the newer market entries also include artificial intelligence to help determine and guide workout plans.

The new equipment is decidedly interactive; some include motion-sensor cameras, 3-D modeling, A.I. generated coaching, automatic adjustments when the user is struggling, and mobile apps. These workout devices include stationary cycles, treadmills, weight-lifting equipment, and interactive mirrors. Most require a hefty initial investment plus a monthly subscription fee. Some even provide interaction during workouts with other people, and help build a community of patrons. However, if you want social interaction, you’ll have to wait for gyms to reopen.

Ready, set, go!

Group Activities and Discussion Questions:

  1. Review key aspects of developing a product positioning map, including determining the axis labels for positioning.
  2. Review various fitness products and services. What products are competitors?
  3. Show a variety of newer, high-tech fitness devices:

Carol: https://carolfitai.com/

Tempo Fit: https://tempo.fit/

Bowflex: https://www.bowflex.com/

Tonal: http://tonal.com/

Hyfitgear: https://www.hyfitgear.com/

Peloton: https://www.onepeloton.com/

Mirror: https://www.mirror.co/

  1. Have each team research one of the companies. What does each provide? Cost? Market? Subscription? Activities?
  2. Then, have each team provide a positioning map based on their research of the companies.

Source: New York Times; Wall Street Journal; other news sources

 

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2020 Super Bowl Advertisements

Winter may be cold, but the Super Bowl heats us up! The Super Bowl has become one of the premier venues for marketers. The thrills, the chills, the excitement and surprises – and that’s just the advertisements! At a cost of roughly $5.6 million for 30 seconds of air time, the Super Bowl is also the most expensive advertising placement of any event or show. Add to the air time the costs of designing and producing ads, plus the integration into other marketing tactics, and a company can easily spend upwards of $6 million on a single day.

Love them or hate them, Super Bowl advertisements have become a talking point during and after the game. It’s a big stage, and can also be a big risk. This year it had an audience of 102 million adults in the U.S. across multiple platforms.  And viewers are far from passive, generating $17 billion in purchases on food, team gear, TVs and more.

All this generated roughly $435 million in advertising revenue, up 20% from 2019. Who were the top spenders?

  1. Anheuser-Busch: $41 million
  2. Pepsi Co: $31 million
  3. Proctor & Gamble: $30 million
  4. Amazon: $26 million
  5. Hyundai: $20 million.

Top categories for ads included automotive, food, financial services, and technology.

Watch the ads – which ad is your favorite?

Group Activities and Discussion Questions:

  1. Bring up one of the Web sites that have all the Super Bowl ads: https://www.ispot.tv/events/2020-super-bowl-commercials
  2. Divide students into teams. Have each team select a Super Bowl ad to analyze and present in class.
  3. What is the target market, key message, and offer from the ad?
  4. How does the ad integrate with a company’s other advertisements?
  5. Are the messages integrated with a company’s Web site and social media?
  6. As a class, after each commercial have students assign one to five stars for the advertisements. Which advertisement won the class vote?

Source:  Ad Week, CBS, iSpot.tv, Nielsen, other news sources

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Subscription model for Nike kids’ shoes

Subscription services can be a great business model. It gives businesses a monthly recurring revenue stream that is steady and predictable – at least until the consumer ends it. Many subscription services have had initial success, only to lose subscribers as time goes on and subscribers no longer see the value of the service.

The meal subscriptions have been particularly hard hit as customers try various plans, only to eventually stop. There are also a great number of clothing subscription services, including subscriptions for fashion clothing, business apparel, and athletic wear. Now, Nike is launching a new subscription service aimed directly at the kids’ shoes market. It’s an important market space and is valued at roughly $10 billion annually.

Nike will offer three levels of subscriptions: $20, $30, or $50. At $20/month, customers get four new pairs of shoes and play activities; $30/month gets 6 pairs; $50/month gets 12 pairs. Named ‘Nike Adventure Club’, the service is aimed at 2-10 year olds and supplies Nike and Converse shoes. Is it money saving for consumers? Perhaps. It depends on the level of shoe selected. The main goal of the service is to build relationships and maintain brand loyalty for Nike and Converse.

As for correct shoe sizing, Nike includes a sizing chart to help parents measure their child’s feet. In a pilot program run with 10,000 members, only a small percentage of parents had the wrong size. The service includes free shipping and returns along with free size and style exchanges.

Ready to play?

Group Activities and Discussion Questions:

  1. Discuss the advantages and disadvantages of subscription-based services.
  2. Pricing is usually a complex topic. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
  3. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  4. For Nike Adventure Club, divide students into groups and have each group work on any/all of the six steps.
  5. When setting the price level, assign each team a different model to use (demand-oriented, cost- oriented, etc.).
  6. Is the Nike program correctly priced for the target market?

Source: TechCrunch, CNN, USA Today, Reuters, other news sources

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