Athletic shoe Essay Example

his coach Bill Borrower. The company is headquartered near Beaverton, Oregon, USA since January 1964. It focuses on producing sportswear including clothing and equipment with the goal of inspiring and innovating for athletes worldwide. Not only does it hold the largest global market share, but it also dominated the Vietnamese sport footwear market with a 1% market share in 2012 (Remuneration International 2013).

Currently, Nikkei is experiencing growth in Vietnam and its stores are performing well. The introduction of their Nikkei Air line brand in 1979 revolutionized their shoes by incorporating Air Cushioning Technology into the midsole. This innovation provided lightweight, versatile, cushioned, and durable advantages for athletes. They have developed various Air products for popular sports such as athletics, tennis, and basketball.These attractive footwear designs are suitable for both sports activities and daily tasks. In terms of the micro environment, around 41% of Nikkei brand shoes were manufactured by contract factories in Vietnam in 2012. Vietnam exports approximately 158 million pairs of Nikkei shoes annually to the United States, which makes up about half of the country's footwear exports and generates over $2 billion each year. Vietnam has become a favored manufacturing base for many major US corporations.

To address consumer concerns regarding the environment, Nikkei has been making improvements in material quality and technological processes to enhance product sustainability. Mr. [Name] states that they are dedicated to implementing these improvements. The senior vice president responsible for global production at Nikkei Corporation - Vietnam is working towards localizing product materials and reducing production costs with the goal of decreasing imported materials from 98% to 56%.

Nikkei has a significant presence in Vietnam with 14 official stores located

in various urban cities including Ho Chi Minh City, Haiphong, Da Nang, and Hanoi. Moreover, Nikkei products can be found in both suburban and urban areas such as shopping centers like Parson and Crescent Mall, as well as sporting goods stores.

The target market for Nikkei comprises high-income individuals aged between 18 and 35 who have a passion for sports or follow sporty trends.The stylish design of Nikkei Air shoes attracts fashion-conscious customers who view them as symbols of status, self-expression, or personal style showcase. With resellers in countries like Australia, Brazil, Canada Denmark Finland France Germany Hong Kong Indonesia India Italy Japan Korea, Nikkei has a strong global presence. In Vietnam, the footwear industry experienced 15% revenue growth in 2012 (Remuneration 2013). Aids Corp.and Bin Tine Dong Ana Immix Corp.Pet Ltd.are prominent competitors in this market. Aids, a German company known for sport gear production, has been Nikkei's long-term biggest competitor. In Vietnam, Aids held a 0.9% share of the footwear market in 2013 (Remuneration). They also have an office at Unit 501, Diamond Plaza to better control their Vietnamese stores. Another rival of Nikkei in Vietnam is Bin Tine Dong Ana Immix Corp.Pet Ltd., which is popular for their affordable brand Bits shoes and ranks third in market share with multiple branches across Vietnam. While Rebook and Puma are also present competitors, they are considered potential rivals and do not pose significant challenges to Nikkei. To increase community engagement, Nikkei has implemented various campaigns and activities including partnering with popular athletes who embody the active lifestyle of their target customers (Goldman L., 2010).Nikkei Vietnam is currently a prominent sponsor for various sporting events, including

the long-running HOC Run competition campaign that began in 2013 (HOC Run, 2013). This sponsorship allows Nikkei to indirectly promote its brand and products while also building a positive reputation among participants and spectators (HOC Run, 2013).

In addition to prioritizing business success, Nikkei has embraced technology advancements to enhance the value of its products. The company now offers its own website and social media platforms such as Facebook and Twitter. These platforms enable customers not only to interact with each other but also to share their thoughts and experiences with Nikkei's products, as well as make online purchases (David, M, 2013). By fostering these interactions, Nikkei can better understand customer demands and develop effective strategies or promotions accordingly.

Furthermore, Nikkei demonstrates commitment to societal well-being beyond product sales through its Corporate Social Responsibility initiatives. It actively participates in green initiatives and engages in socially responsible activities that promote environmentally friendly practices (The Corporate Social Responsibility, 2013). This dedication has led to accolades such as the 2010 Corporate Citizens award from Corporate Responsibility Magazine (The Corporate Social Responsibility, 2013).Vietnam's accession to the World Trade Organization in 2006 brought about market changes and attracted foreign corporations, as highlighted by the World Bank data showing GDP growth of 5-8% from 2008-2012. Notably, Vietnamese customers displayed high confidence levels, surpassing even developed countries like Belgium with a score of 96 points in Q1 of 2013 according to Nielsen. However, despite this positive outlook, individuals in Vietnam have relatively low incomes, with a per capita GDP around $1600 (WEB 2012), and face challenges posed by the country's high inflation rate of 9.1% (WEB 2012). This can be particularly difficult for foreign

companies adjusting their prices for this market.

In line with its commitment to environmental protection, Nikkei provides the Nikkei MS tool to help suppliers and customers make informed choices about materials. As an environmentally conscious company staying current with technology, Nikkei also offers easy access to products and services through its detailed website. Moreover, they have designed custom cushions for various types of Nikkei Air shoes to cater to customer needs. With Vietnam's large young population and transitioning culture towards a more active and fashion-conscious lifestyle resulting in increased demand for top-notch footwear, there is an opportunity for Nikkei to expand its market for fashionable sports shoes here.

To further encourage foreign investment, the government has implemented reforms and incentives that create a favorable investment climate in Vietnam.Despite facing criticism for labor issues and their lightweight shoes made from special materials, Nikkei, a company known for its strong brand and marketing strategies, has benefited greatly. However, there are opportunities for growth by aligning with fashion trends and using recyclable materials. Expanding into the global market can result in increased sales and recognition. Currently, Vietnam is home to 14 official Nine's stores located primarily in competitive areas. However, entering international markets with different currency values poses risks of unstable cost trends and potential losses. The competitive advantage that Nikkei once had by producing high-quality shoes at low cost is no longer effective as many companies have adopted this strategy. Consequently, consumers may choose cheaper sport shoe brands due to price sensitivity. Additionally, the economic scale of Nikkei may impact its financial resources.

In Vietnam, the chosen areas for segmentation are based on geographical and demographic factors such as Ha

Not, Ho Chi Mini, Ha Phone, and Dad Nag which cover both suburban and urban regions. These regions represent the north, middle, and south of Vietnam while also hosting national and international sports events. The target age group demographically is between 10 to 35 years old as they actively participate in various sports activities.This age group, comprising both boys and girls from middle or affluent families in urban areas like Ho Chi Minh City and Hanoi, prioritize their appearance and fashion choices suitable for their age range. Both male and female customers engage in sports activities, but separate designs cater specifically to female customers by offering options such as larger sizes or more masculine designs.

When considering income levels, customers with a monthly income of 15 million VND or above are more likely to purchase higher-priced products from Nikkei due to their perception of higher quality. These customers fall under the CRYPTOGRAPHIC social class which includes middle and upper-class individuals who prioritize product quality and design over price considerations. They seek stylish and active footwear from a reputable brand.

Meeting these expectations is crucial when targeting consumers whether they are past users or potential users, first-time buyers or regular customers. The goal is to enhance customer experience by providing superior products that meet their demands. Loyalty status can be classified as either loyal or non-loyal customers. Trust and loyalty from consumers contribute to enhancing the company's reputation.

Overall, the target market for Nikkei consists of teenagers aged 10 to 18 who come from both boys and girls belonging to middle or affluent families living in urban areas like Ho Chi Minh City and Hanoi.Nikkei should prioritize this demographic

as teenagers from affluent families are more likely to participate in sports compared to those from less privileged backgrounds who may have other commitments. Furthermore, individuals in this stage of life generally have an abundance of energy and enthusiasm, making them inclined towards recreational activities that aid personal development. Nikkei offers unique shoe designs tailored specifically for the young target market aged 18 to 25 who are sports enthusiasts and enjoy outdoor pursuits. These potential customers typically come from middle to upper income families, often college or university students with ample opportunities for sports events, outdoor activities, and parties due to their lifestyle. Many also hold part-time jobs which increases their purchasing power. This segment highly values Nikkei Air shoes for their fashionable and modern designs as well as their functional features providing comfort and foot protection. The latest addition to the Nikkei Air product line is the Nikkei Air Max 90, appealing to both avid runners and those seeking a stylish option for socializing. Additionally, the brand targets individuals aged 25-40 who maintain an active lifestyle outside of work alongside having jobs.This demographic is typically affluent and belongs to the middle or upper class in suburban or urban areas. They are an important target market for Nikkei because of their financial capability, commitment to health through physical activities, and desire for products with multiple benefits - all qualities that Nikkei can provide. Among individuals in this age group who are mature and considering starting a family, there is a preference for classic black and white designs of Nikkei Air shoes due to their polished yet sporty look. To effectively cater to diverse consumer preferences,

it is ideal for Nikkei to implement a differentiated marketing approach since they already offer various types of shoes. This strategy allows the company to better meet the needs of its customers, increase customer satisfaction levels, and anticipate significant sales growth.

Nikkei ensures that its employees have extensive knowledge about their shoes and maintains separate official websites for both customers and retailers. The widely recognized "swoosh" logo represents high-quality products from Nikkei on a global scale. Nikkei provides warranty services for all products purchased from their stores or authorized dealers to ensure customer satisfaction. If any products have flaws in material or workmanship, customers are advised to return them. This process typically takes 5 to 7 business days. One notable achievement by Nikkei is the development of Exclusive Air Technology, which has revolutionized shoe cushioning.Nikkei Air shoes incorporate innovative technology, providing benefits such as lightweightness, versatility, cushioning, and durability. In Vietnam, Nikkei collaborates with knowledgeable staff and potential franchise partners to open retailers in strategic locations like Trans Tine Plaza or Crescent Mall in District 7 of Ho Chi Minh City. For online shoppers, Nikkei has official websites where products can be directly purchased. They also have authorized retailers worldwide for quick and convenient shoe purchases. Nikkei's competitive advantages include their well-known "swoosh" logo and excellent guarantee and warranty services. The brand is renowned for producing high-quality and fashionable footwear by prioritizing quality as their most significant competitive advantage.

Many styles of Nikkei footwear offer the benefit of cushioning, which involves pressurized air enclosed within a strong yet flexible bag that compresses upon impact to reduce force. In the Vietnamese market, Nikkei Air stands out due to

its lightweight, versatile, and durable cushioning.

Although Bit holds a large market share with over 2,300 shops and agents nationwide in Vietnam, it targets a different income segment compared to Nikkei. Aids is a close competitor to Nikkei offering similar products for similar customers. The table below compares the popular product lines of both brands where typically Aids products are priced cheaper than those from Nikkei's range.Nikkei Air, a globally recognized sports brand, follows the value proposition of "More for more" by offering higher prices for more benefits. It is the ideal choice for sporty and stylish individuals seeking high-quality shoes that help them become more active and fashionable. With a wide range of footwear styles available, including basketball, tennis, running, or casual wear with friends, Nikkei Air offers numerous benefits.

Furthermore, Nikkei continues to develop innovative strategies to introduce even more high-quality sport products while improving communication methods with customers for utmost satisfaction. After 18 years since Nine's initial investment in Vietnam, Nikkei has achieved significant success in the market and left a unique impression on users. To further expand into Vietnam's potential market, they must continuously leverage advanced technology while offering affordable yet high-quality products.

Effective marketing strategies are crucial for Nikkei to boost their revenue and establish themselves as leaders in the racket industry. Known for their superior quality and fashionable product designs, Nikkei has successfully entered the Vietnam market and continuously improved the quality and design of their products over the past 18 years. Their latest sportswear offering, Nikkei Air, has achieved remarkable success and left a lasting impression on users.

However,"the negative consequences of mistreating employees in 1996 have had a significant impact

on Nikkei's sales."The company remains criticized by anti-globalization groups despite ongoing efforts to improve and address the mentioned issues.