Tag Archives: target market

Nike: “Play New” and “Toughest Athletes”

Most of the time marketers target a specific group of consumers for their products and services. Marketers can target a consumer group using a number of factors including geography, demographics, lifestyle, attitudes, and behaviors. The key is to understand the consumer group for which the products are intended. The products have to show value and benefits; the company’s advertising has to show that the company understands the needs and desires of the consumer group.

Athletics is a very large consumer group. It can have professionals, amateurs, youth, mature, various sports, and more. Nike recently launched a new campaign to appeal to people who want to try new sports but fail at them, encouraging new athletes to not give up after a few fails. For this market, there are many existing products to sell, but the mindset is different. The “Play New” campaign showcases elite athletes and professionals trying a new sport that they don’t excel at – and shows them failing at it! The campaign will be paired with a full-body Snapchat augmented reality lens customized for yoga, dancing, surfing, and boxing. All are encouraging consumers to attempt something new and uncomfortable initially.

In addition to “Play New,” Nike also launched a new campaign (along with full athletic wear apparel) geared to pregnant women and new moms. New moms are of course cast as the “Toughest Athletes” and the commercial shows international moms-to-be and moms who are flexing their athletic and maternal abilities. Additionally, the campaign will contain four guided, motherhood workouts that will be part of the Nike Run Club app.

Nike seems to identify new markets and approaches at a high rate. What other approaches could it take?

Group Activities and Discussion Questions:

  1. Poll students: What are the target markets for Nike? (Did anyone mention pregnant women and new moms?)
  2. Show the Nike video for pregnant women: https://youtu.be/_-5MGkUwe6w
  3. Show the website for Nike Maternity wear: https://www.nike.com/maternity
  4. Video for “Play new” campaign: https://youtu.be/BUvEEVq4woU
  5. Why these two target markets?
  6. What else can Nike do to encourage buying from these consumers?
  7. What other new target markets could Nike sell to?

Source: Ad Week; other news sources

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Peloton Adds New Products and Cuts (Some) Prices

The pandemic has been tough on most companies. Consumer demand for products has shifted, as well as buying behavior. Some companies won’t make it successfully through this period. However, unlike other companies, Peloton seems to have weathered the Covid-19 pandemic very well. Sales for home fitness equipment have been strong as gyms and fitness centers have closed or limited the number of patrons in their facilities.

Recently, Peloton expanded its product line with new versions, and has cut prices on older equipment by roughly 16%. Peloton currently sells two primary types of exercise equipment: a stationary bike priced at $2,245 and a treadmill priced at $4,295. When the new products launch, the new Peloton Bike+ will be $2, 495, but the older bike will be reduced to $1,895. The new bike will accommodate more than just biking and includes upgraded cycling, a better sound system, and a 24-inch touchscreen that swivels for yoga or weight training in a different area.

The new treadmill will be cheaper at $2,495 compared to the existing treadmill at $4,295. The new prices are intended to extend the customer base while still offering high-margin products.

Peloton continues to offer “connected fitness” to its subscribers, linking them to instructors and other workout fans so that even when working out alone at home, customers can connect with a community of other riders and instructors. Monthly subscription memberships are $39/month and the company currently has roughly 866,000 subscribers. In addition to cycling classes, the company streams yoga instruction, strength training, running, and more workout programs.

Ready to ride?

Group Activities and Discussion Questions:

  1. Discuss industries impacted by Covid-19. Which companies are winners? Losers?
  2. How has the pandemic impacted Peloton?
  3. Show Peloton’s Web site: https://www.onepeloton.com/
  4. What is the impact of the new products and price reductions for older products?
  5. Compare a Peloton bike and subscription to the average gym membership. What are advantages and disadvantages?
  6. Divide students into teams and have each team research and compare Peloton’s products and services to its competitors:
    1. NordicTrack: https://www.nordictrack.com/
    2. Echelon Fitness: https://echelonfit.com/
    3. Mirror: https://www.mirror.co/
    4. Tonal: https://www.tonal.com/
  7. What pricing strategies is Peloton using? Will this be an advantage or a disadvantage compared to the competition?

Sources: Associated Press; New York Times; Wall Street Journal; other news sources

 

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Cheetos Spices Up Mac and Cheese!

Cheetos have long been a favorite snack food in America, but it has a fairly limited menu application. Or so one might have thought. After all, it’s just a snack food, right? Wrong! Cheetos is one of many companies responding to changing consumer behavior patterns brought about the coronavirus pandemic. In this case, the product is in response to a rise in home cooking and the desire for comfort foods. PepsiCo’s new product combines these two desires into “Cheetos Mac ‘N Cheese.” The new product is packaged in boxes and cups and is available in three powerful flavors: Bold & Cheesy, Flamin’ Hot, and Cheesy Jalapeno.

Cheetos Mac ‘N Cheese was already in development prior to the pandemic and was scheduled to be released in 2020. However, the company moved at an accelerated pace once consumer patterns shifted due to the pandemic.

The branding even extends to the shape of the curling pasta noodle, which mimics the corkscrew-shaped tail of brand mascot Chester the cheetah. Currently, the new food is only available from Walmart, but a national retail roll-out is anticipated in 2021. PepsiCo plans to promote the new product using multiple marketing channels including shopper marketing (in store), and strong social media.

Anyone hungry for some spicy mac and cheese?

Group Activities and Discussion Questions:

  1. Poll students: Who eats Cheetos? Who eats Mac and Cheese? Which brands?
  2. Show the Web site: https://www.cheetos.com/products/cheetos-mac-n-cheese-bold-cheesy
  3. Show a video of the new product: https://youtu.be/tcYk6tZ3zeI
  4. Does this new food change the positioning of Cheetos in the product life cycle?
  5. How does Cheetos Mac and Cheese compare with other companies?
  1. Build a product positioning map for mac and cheese dinners and show the competition.
  2. How should Cheetos promote its new product?

Source:  Ad Week

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