Question

In answering all questions, choose one of the following brands: Nike, Apple or Ikea.

1. Describe the brand's 'brand equity'.

2. Develop a brand extension idea that would fit the brand but doesn't already exist. Explain why you think it will be successful. Select any one product that the brand currently offers.

3. Explain the product’s core value, the actual product and the augmented product. Provide one example for each.

4. What is the product’s current life cycle stage? Explain why it is in that stage based on three characteristics of that stage. Companies can choose between broad (i.e., mass or differentiated marketing) or narrow (i.e., concentrated or micromarketing) targeting strategies.

5. Based on the product you selected, explain in detail which specific market targeting strategy the company is using to reach their target market(s).

6. Based on the benefits and price of the product, what is its value proposition? Explain why. Companies have different pricing strategies for different products.

7. In your own words, explain the concept of segmented pricing.

8. Does the company use segmented pricing for the product you selected? Explain why or why not.

Answer 1

Answer;

Selected brand Nike for the following questions.

1.Describe the brand's 'brand equity'.

Brand equity of Nike-

Nike brand is well known for Shoe and primarily know for athlete shoes. Nike Shoe is very     strong and durable.

2. Develop a brand extension idea that would fit the brand but doesn't already exist. Explain why you think it will be successful. Select any one product that the brand currently offers.

Nike brand extension:

Nike can foray in an energy drink for the athlete. At present, the brand presence is only in Shoe and other related accessories. The brand will have a presence in Food business as well. It will help in developing the brand in another segment.

Nike brand can be utilized for first trial in the food category and it will help to get the lion market share in the country. I to hope it will be a great success for the brand.

3. Explain the product’s core value, the actual product and the augmented product. Provide one example for each.

I choose Nike as a brand and footwear as a product. The core value of the product is it has different style shoes for different activities like walking, jogging, running and playing. It also provides safety and comfort to users.

Actual Product-

Nike is sold for their quality, For example, Nike running shoe is lightweight

Augmented Product-

Nike user can customize their product and can be part of their online community. These are augmented products.

4. What is the product’s current life cycle stage? Explain why it is in that stage based on three characteristics of that stage. Companies can choose between broad (i.e., mass or differentiated marketing) or narrow (i.e., concentrated or micromarketing) targeting strategies.

Product Life Cycle stage:

Nike's Current product life cycle stage is on the maturity stage. It is because of strong brand awareness, Quality of product and pricing.

5. Based on the product you selected, explain in detail which specific market targeting strategy the company is using to reach their target market(s).

Marketing Strategy:

Nike is using concentrated marketing strategy for its target customers like sportsperson, athletes.

6. Based on the benefits and price of the product, what is its value proposition? Explain why. Companies have different pricing strategies for different products.

Nike's Value proposition:

Nike Value proposition is innovation and accessibility. It helps in bringing down the price and available in worldwide many countries.

7. In your own words, explain the concept of segmented pricing.

Segmented pricing:

The concept of segmented pricing- Sometimes the company uses multiple pricing. It is more than one pricing of the same product. It is based on the target customer.

8. Does the company use segmented pricing for the product you selected? Explain why or why not.

Nike use segmented pricing strategy based on the following

(a) Location- Nike priced differently in its own retail outlet compare to another multi-brand retail outlet.

(b)Target Customer-For Adult and Children; they have priced it differently. The style, quality, and features are different in the target segment.

(c) Design of the Product: In the new design, Nike uses the skimming pricing strategy, which yields a higher margin initially until it got fad.