PRODUCT, PRICING AND CHANNEL
1
Product, Pricing and Channel
Nicole Turner, Shannon Miller, Arsenio Evans, Ronald Hayes, Danyell Bradbury
MKT421
August 17, 2015
Stephen Grothe
PRODUCT, PRICING AND CHANNEL
2
Product, Pricing and Channel
SmartFit is the new it. The following information will provide how SmartFit will evolve
and add value to its brand. SmartFit is going to provide protection that the athletes and general
consumers. SmartFit is affordable with benefits that the consumers will enjoy. There are
customize option and various outlet resources. SmartFit is branded by Nike, so the product is
expected to move at a descent rate the will consumers will be happy.
Detailed description of the features of your products or service
SmartFit organization presents a product to athletes that seek to solve injury problem
athletes face each time they prepare or compete in an event. This product has a full body shirt,
pant, ankle covers, hand and wrist covers and aerodynamics. Our product also has a toggle touch
screen function. This garment is can be used in a wide range of sports activities such as water
sports, wrestling, running, basketballs and field events among others. This is a product for all
athletes who want to remain competitive throughout the season and who want to keep winning in
competition. SmartFit garment is created in a way that will help athletes to perform in their
activities. SmartFit it is created with armor materials that is vital in regulating the temperature of
the athlete in the activity (Chia, Wong, and Wong, 2012). Finally, the product is available for all
types of people; they fit both skinny and masculine body, young and elders and in three colors;
white, gray and black.
This garment is considered important in sports activities since it solves a many issue
faced by athletes in their activities. However, its main aim is to solve athlete injury issues in the
fields. This is facilitated by the fact that the garment has a toggle touch screen function that
PRODUCT, PRICING AND CHANNEL
3
protect the body from minor injuries such as strains, twists and pulling of joints and muscles.
SmartFit is also used in regulating the outlet temperatures in an event since it is aerodynamic that
allow a steady flow of air is making the athlete remain cool throughout the event.
It also solves comfort issues with the athletes since it is fitting to all athletes thus solving
issues that may affect the performance of the athlete. It is waterproof this not absorbing athlete
sweat that would make it heavy and uncomfortable during an event. The garment fits athlete
body structure, thus reducing issues of baggy and uncomfortable attires or tight attires that may
hinder the body flexibility. SmartFit garments aim at solving problems such as minimizing
athlete injuries, regulating temperatures when an athlete is playing and ensure there is a steady
flow of air and ensure the athletes is comfortable in during events.
Description of how your marketing efforts will change
The product life cycle has four very clearly defined stages, each with its categories.
Introduction Stage, Growth Stage, Maturity Stage and Decline Stage. During the introduction
stage, sales will be low and slow to start because that this will be a new and unique idea being
introduced to the market. Promotion is the key that this point. SmartFit uniforms will need to be
market as the new “must have” uniform with the advantages and uses of this product concept
highlighted. Prototypes will be tested and showcased at this point in development. By conducting
consumer tests through focus groups and other feedback methods, we will be able to track customer
responses to the product. During the Growth Stage, there will be a strong growth in sales and
profits. The stage that we would need to chaptalize on SmartFit uniforms. By gaining
endorsements from major establishments, SmartFit uniforms would then become the new standard
in official and privately used uniforms.
PRODUCT, PRICING AND CHANNEL
4
The scale of production and overall profit could then increase making it possible for our
businesses to invest more money in promotional activities to maximize the potential in this growth
stage. During the maturity stage, SmartFit uniforms would be well established, and marketing
would shifted to maintaining the market share we have built. In this stage, Nike would need to
consider any product modifications or improvements to SmartFit uniforms that would help them
keep a competitive advantage. Changing the price to appeal to an entirely new audience or finding
new applications for the product would help keep SmartFit uniforms relevant in the market. During
the decline stage, new products would start to copy and could start to replace SmartFit uniforms.
As a company, we could explore switching to less-expensive production methods and cheaper
markets to maintain profits. At this stage the product life cycle, this is where we would need to
step it up and show our customers that our brand is like no other. Nike would need to show that
we alone offer superior materials and a product that cannot be substituted.
How your packaging or service will add value
How can SmartFit packaging add value to their brand? There are several ways products
manufacturers can increase the value of the brand by knowing your product worth and what can
it offer the consumers? Make the packages attractive or bundle it with another product possible.
What can SmartFit add to make the consumer want to experience SmartFit? Not only will
SmartFit customize the packing method, but also the delivery service will fast and to the
consumer’s door. SmartFit can add value by proving excellent customer service and provide bulk
discounts.
SmartFit is a new product that will grab the attention of athletic professional, sports
parents, and the general population. When consumers are shopping for that special workout, they
PRODUCT, PRICING AND CHANNEL
5
leave the store with a regular bag. With SmartFit, there are two different types of packaging
offered based on the purchasing method. When SmartFit consumers purchase their items from a
retailer, they will receive a nylon mesh zip tote. The SmartFit tote will allow your fit to breathe
and avoid a smelly car, locker or room with the option to order a customized tote. Internet
purchase, will come with a customized tote. To give consumers option with their purchase I
believe will increase the online customers as well as retailers. With the consumers knowing that
they do not have to worry about any injuries, they will be protected at the same time is a big win
for SmartFit. SmartFit is affordable, backed by one of the top manufacturers of sports apparel
and allow the customer to customize their tote, what other smarts do one need to purchase
SmartFit.
Pricing Strategy for your product or service
We are providing a valuable service to consumers for SmartFit uniforms. Therefore we set
our pricing to value all customers. Our pricing is set to be a reliable and efficient cost to all
consumers and organizations. The initial amount of $100 per uniform to our retailers which is cost
efficient for our company and our retailers, this cost allows them to provide an additional mark up
of 50% as well, to allow a gain to their bottom line. Even purchasing the uniform at $150 for
consumers they still save more than purchasing each item to maintain their heat level during
competition or keeping them from injuries to remain competitive.
SmartFit is the next generation of protective wear at an extremely affordable price. The
cost of the uniforms is less due to buying the material in bulk and still allows our company to profit
after expenses are deducted. We firmly believe that we are pricing our SmartFit uniforms to value
our customer’s and align within their budget requirements, as the biggest bang for their buck will
PRODUCT, PRICING AND CHANNEL
6
draw them into purchasing our products. Our pricing is based on the cost per unit of $30 and the
value of the product to consumers running around $300, therefore pricing the retail cost at $100
and then allowing the 50% markup, therefore consumers can pay half the cost of the value to them.
This will also leave room for retailers to provide a greater markup, however our marketing would
prefer them to retain at only a 50% markup that makes it clear to consumers that we are branding
a product that is reasonable to purchase. Any retailer providing a greater markup for gross profits
need to understand, not only our benefit of the product, but that we value our consumers and their
budget constraints as well.
Channels of distribution used to sell your product and how each partner will add
value
The different channel that could be used to sell the Nike S.M.A.R.T would be the web
site, stores, TV ads, and athletes who are well known in the sports that they play. A website is a
great tool for companies to use when trying to sell their products around the world. This allows
the customer to see all of their products that the company is offering, sometime the item that they
are looking for come with free shipping with buying the item off their site. This allow sporting
franchise to buy their products in bulk and people who work out or play a sport find their product
easy. Customer wants to make their shopping experience, an easy task in a world that is growing,
and moving fast with very little time to go in to do their shopping.
Shopping online makes it easy for them to buy what they want without all of the hassles
of shopping. This would work out just fine for Nike S.M.A.R.T because the company is able to
bring in income from all over the world. Which give athletes more option without having to look
all over for an item that may not be in stock. This adds more value to the company, because they
PRODUCT, PRICING AND CHANNEL
7
are able to reach more customers. Nike’s have stores worldwide with product that fit that market
so that their customer don’t have products that fit their market and more. Customers are doing a
lot of shopping online would be best for Nike to give some type of discount for there in store
products. Buying online come with so many deal that it’s harder to keep a store open, because it
is easy to buy online. Using athletes to advertise their products and promote sell through
adverting is a great tool for a company to show off their products. It is also great marketing for
the company because these athletes are wearing these products pushes customer to also buy the
product. This is more profit earn for the company buy having them promote their product, which
bring in more customers.
Conclusion
SmartFit will bring smiles to many faces. SmartFit is hitting the market with many perks
that will find the consumers pleased with their purchase. SmartFit will have a positive sales flow
while making a statement for the brand. SmartFit will be global. Therefore the sales will be
greater with more happy consumers. The product will be at 50% markup that will give room to
the retailer. The packaging will give the consumers a breathable tote that can be customized.
PRODUCT, PRICING AND CHANNEL
8
Reference
Chia, M., Wong, P., & Wong, (2012). Exercise personal training 101. Singapore: World
Scientific Pub Co Inc.
1
Strategy and Positioning Paper
Danyell Bradbury, Ronald Hayes, Nicole Turner, Arsenio Evans, Shannon Miller
MKT/421
August 10, 2015
Stephen Grothe
2
Strategy and Positioning Paper
As an athlete, they have 3 main concerns; performing, staying ahead by practicing becoming
better than the next guy or girl, and mainly staying injury-free. Staying free of injuries or keeping
the injury rate down is where our team came up with an amazing idea that would change the way
every athlete; young and up to professional perform. We call it, SmartFIT by Nike. This
organization was founded by five creative individuals that wanted to minimize injuries from
happening in sports around the world. We saw that these athletes would be wearing all this gear
to protect themselves and it look like they were constantly adjusting and fixing it, which
distracted them from the game. So we wanted to create a garment that would keep the all athletes
comfortable, mind on the game and have a piece of mind that they will be safe while playing.
We also wanted to make this garment to be compatible with sports including water sports to
even arm wrestling. We sent our proposal to Nike, Adidas, Jordan, Under Armor and a few
generic sponsors to this idea and Nike loves it. We created this garment that is a under armor
material with smart technology built in that protects the athlete’s temperature, keeping their
temperature stable, having the ability to set to any athlete body structure; skinny or muscular, it’s
water-proof to protect massive amounts of sweat and water and also to protect the tech in the
garment using Dri-fit . The most important part of this garment is the toggle touch screen
function.
This function sets the ability to target areas of the body to protect from small minor injuries such
as any strains, twists, pulling of the joints, and muscles. This garment is a full body shirt, pant,
with ankle, hand and wrist support lightweight, aero dynamic to creating an air flow, so the
athlete didn’t overheat. It comes in three colors: black, white and grey. This garment is a low
cost at around 100 dollars to 250 dollars to make affordable to younger athletes. Our prices are
3
based on garment you buy. You can buy the garment without all the bells and whistles for the
100 dollars to having the toggle touch screen features.
The SmartFIT garment will be marketed throughout the world uses by professional athletes,
and the goal is to have all the athletic associations to have lower injury rate and create a more
productive, comfortable lifestyle for all sports throughout.
Strength
Brand
Product – Global
Creativity
Uniqueness
Low cost
Price
Team
Weakness
Delay in product
Reduced Capital
Lack Of Direction
Product Demand
Durability
Opportunities
Market growth
Increased Contract
Increased Revenue
Threat
Lack of interest
Future Demand
Duplicate Product
Decreased Revenue
Loss of customer
A SWOT analysis of the organization and offering
The SWOT chart allows you to see the challenges that Smart Uniforms may face. Smart
Uniforms is a product of one the most highly recognizable names for sports apparel. Nike has
continue to grow because of its uniqueness, brand, durability, and market. Nike products are
durable for the sport they are designed for. Nike products leads the industry and when Smart
Uniforms are released consumers will see just why Nike has remained above its competition.
Smart Uniforms team is determined and dedicated to remain number one. The uniqueness
of Smart Uniforms allows any user to feel free and light on their feet without feeling weighed
down by all the gadgets that one in training can use. At Nike all the products are tested to make
sure they will live up to the name and performance status, the only sign of failure is that the
product does not seem sensible.
4
A competitive analysis of the organization and offering using Porters five competitive
forces model
Competitive rivalry within the industry has the potential to restrict Nike at all levels. The
competition has increased from both established companies, as well as upcoming and local
sports-apparel. Unless Nike is able to adapt to changing trends, its growth could be impacted.
The whole athletic industry is wide-open to continuous changes in consumer preferences and
technology and if Nike is unable to adapt to these changes quickly, it could suffer losses in its
market share. By using Porters Five competitive Forces model we can see were Nike stacks up
overall. Porters Five competitive Forces model is a business unit strategy tool that is used to
make an analysis of the attractiveness or value of an industry structure. This analysis is made by
the identification of five fundamental competitive forces:
•
Threat of New Entrants
•
Power of Suppliers
•
Power of Buyers/ Customers
•
Availability of Substitutes
•
Competitive Rivalry
Porter Five Forces
Intensity
5
Low To Medium: Significant capital
resources are required for creating a new
brands as large investments are needed.
The Threat Of New Entrants Industry
Nike enjoys a great degree of brand
recognition and loyalty, and it will be a
difficult for a new player to match its
level.
Low: no single supplier holds significant
bargaining power. Nike’s footwear and
apparel products are manufactured by
third-party manufacturers outside the
U.S. in various countries, including
Bargaining Power Of Suppliers
Vietnam, China, Indonesia, Argentina,
Brazil, India and Mexico. No single
footwear factory or apparel factory
accounted for more than 6% of total
Nike brand footwear production and
Nike brand apparel production
Low To Medium: Nike caters to its
Bargaining Power Of Customers
customers through both the wholesale
and direct-to-consumer channels, which
6
accounted for 80.6% and 18.9% of total
Nike brand’s sales. Customers could also
choose other brands owing to factors
such as price, advertising, product
sponsorship, and changing styles.
High: Counterfeit products represents
the biggest threat in this area
The worldwide demand for athletic
footwear, apparel and equipment is
expected to grow in the future as
Threat Of Substitute Products
customers cannot substitute these
products. The quality of counterfeit
products has been improving and this
could threaten the company’s sales in
emerging markets and could also
potentially dilute Nike’s brand value.
Medium to High: Rising competition
from companies such as Under Armour
Competitive Rivalry
pose a threat to Nike’s share of selected
markets. Nike also faces rising
7
competition from local competition who
have increasingly improved their product
quality.
Criteria used to segment the market target including geographic, demographic,
psychographic, and behavioral factors
The industrial market is the area of focus to market the smart uniforms to in order for
professional athletes and sports organizations. The major manufacturer of sporting equipment
typically bases their marketing on segments, meaning by gender and the type of sport, which
allows them to promote separately. Geographically we want to promote nationally and not just
by state or region. Professional athletes are within all major cities along with the industrial
market we want to focus on. Demographically we would want to focus on factors where major
athletes are able to purchase the product and rally around large cities that product such teams.
We also want to focus on the customer size, number of employees, and annual revenue that could
potentially be raised. The psychographics of the business should focus on the cutting edge
material that the smart uniform offers and the appearance it will provide the athletes. The smart
uniforms will be designed to be sleek and stylish but also provide the sense of security from
injuries, which is the most critical feature of the uniform. The uniforms will be distributed
through Nike, therefore there is a loyalty of consumers that follow the company. Not only are
consumers or athletic organizations follow a name they can trust but they also know that Nike
8
would deliver a product they can rely on, therefore there is a sense of security in the name as
well as the product.
Description of the target market
The Smart Uniforms target market will includes male and female athletes from coast to
coast. Professional athletes need a competitive edge to remain calm during the competition and
to stay healthy to remain in the game. Providing a marketing strategy to target specific athletic
organizations, and working to effectively position the smart uniform among the competition. The
smart uniforms will be designed to show the competitive edge each athlete will contribute to the
team. Penetration of the market at a lower organization level, such as high school should be the
first element to show the success of the uniforms. By offering a discount purchase at the lower
level organizations and documenting the use of the uniforms will be a beneficial tool when
marketing to professional athletes.
The target market would be Athletes of all ages and background and the reason behind
this is to make sure that the company is maximizing on as much profit that it can. This is
anything from the shoe ware, shirt, shorts, or any workout gear. Since people are becoming more
self-conscious about tracking there work out it best for Nike to stay up with the trend. When they
target kids who are playing any type sports this push the parent to buy the item that the kid need
for their sporting events. As the kids get older and grow up with Smart Uniform products they
will continue to use the products and the company will continue to profit from it so their target is
anyone who is athletes.
Needs that cause your target market to buy including emotional and logical drivers?
9
The needs that drive purchase is that you have many sport that need some type of gear
that is use for that sport. Like basketball, Nike provide a wide range of shoes and uniform for the
people who play that sport. Who is going to buy? Anyone who doesn’t want to play that sports in
some plants or boots. People want to be as free as they can and move like air and not feel like
they are tide down because they don’t have the right gear on. This goes for any sport which will
drive up the need for purchase of any item that is going to make them play there sport in a better
fashion. How your organization solves the target's needs by making sure that the products that
they are selling fit the needs of the people. So they may have one brand of shoe that might cost
more than have another brand of shoes that cost less but made a little different but do the same
job as the other. This is how they solve the needs of their buyer who want their product but might
not be able to afford it. There are also other ways they need the needs of their target such as
making product that keep track of foot step, heart rates, and on.
Positioning statement
With the name Nike or any of its subsidiaries, consumers tend to be emotional shoppers. Due to
the brand name and its ability to live up consumer’s expectation, Smart Uniforms will prevail
just as all others. With Smart Uniforms capability the first target market will be young athletes.
The children are the future so we must build to protect with them in mind. Smart Uniforms will
be global and affordable for all.
Consumers must have an attraction to the product in order for it to be successful regardless of the
name. Once consumers gets a visual of the product through commercial, word of mouth, or trail
they will began to see that, Smart Uniforms is a fit for longevity and increase safety and
10
performance the need to invest in the apparel will be urge shoppers to buy on am emotional and
logical level.
Some of organization's competition would be Adidas and Under Armor are two
companies that make athletic uniforms and market to the same group of people. Adidas is well
known for making the gear that the NBA currently use right now, and Nike is in the middle of
trying to outbid them for the contract that they have with the NBA. Under Armor have been in
existence since 1996 selling the same products as Nike and Adidas. All three companies make
work out gear that fit the sport of their customer or just anyone who is trying to work out in a
gear that make the person feel more free to move around in. So this pushes Nike to make their
gear different from it competition.
What makes your organization different from its competition? One of the advantages that
Nike have over it competition is branding, the reason this is, branding allow a company to be
known to it buyer all around of the world. Sometimes company like to use athletes like M.J to
help build their brand. Then you have the scale, which is the cost of savings associated with the
larger corporate size. This allows any company to continue to grow while at the same time save
money. “Nike also have close to 29 billion in revenues this is almost twice what it closet
competitor, Adidas has made.” (Nikecom, 2015) The third advantage would be the scope that this
company has they save so much money by offering different products by a single corporation,
unlike other corporation who out source there product to be produce by another company. This
takes money away from any company that is trying to grow in a market that is always changing.
A forth advantage is “NikeID customer-tailored. NikeID is where customers are allowed to
customize their Nike’s.” (Nikecom, 2015)
11
While every company’s situation is unique, Nike knows from continuous success that
there are common measures for a company’s success in reaching and winning a market.
Positioning a brand and keeping it successful is serious business. Understanding where the brand
is currently positioned against competition, Nike needs to continue to keep up with trends and
being the leader in sports appeal. By offering products not offered by competitors Nike will
continue to show what makes our products different from competitors, what benefits the products
offer to consumers and how relevant the product is to the consumer’s needs and requirements.
References
Nikecom. (2015). Nikecom. Retrieved 9 August, 2015, from
http://about.nike.com/pages/company-profile
Uabizcom. (2015). Uabizcom. Retrieved 9 August, 2015, from
http://www.uabiz.com/company/history.cfm
Adidas-groupcom. (2015). Adidas-groupcom. Retrieved 9 August, 2015, from
http://www.adidas-group.com/en/group/profile/
Team, T. (2013, December 2). Nike through the Lens of Porter's Five Forces -- Trefis.
Retrieved August 10, 2015, from http://www.trefis.com/stock/nke/articles/217421/marynikethrough-the-lens-of-porters-five-forces/2013-12-02
PRODUCT, PRICING AND CHANNEL
1
Product, Pricing and Channel
Nicole Turner, Shannon Miller, Arsenio Evans, Ronald Hayes, Danyell Bradbury
MKT421
August 17, 2015
Stephen Grothe
PRODUCT, PRICING AND CHANNEL
2
Product, Pricing and Channel
SmartFit is the new it. The following information will provide how SmartFit will evolve
and add value to its brand. SmartFit is going to provide protection that the athletes and general
consumers. SmartFit is affordable with benefits that the consumers will enjoy. There are
customize option and various outlet resources. SmartFit is branded by Nike, so the product is
expected to move at a descent rate the will consumers will be happy.
Detailed description of the features of your products or service
SmartFit organization presents a product to athletes that seek to solve injury problem
athletes face each time they prepare or compete in an event. This product has a full body shirt,
pant, ankle covers, hand and wrist covers and aerodynamics. Our product also has a toggle touch
screen function. This garment is can be used in a wide range of sports activities such as water
sports, wrestling, running, basketballs and field events among others. This is a product for all
athletes who want to remain competitive throughout the season and who want to keep winning in
competition. SmartFit garment is created in a way that will help athletes to perform in their
activities. SmartFit it is created with armor materials that is vital in regulating the temperature of
the athlete in the activity (Chia, Wong, and Wong, 2012). Finally, the product is available for all
types of people; they fit both skinny and masculine body, young and elders and in three colors;
white, gray and black.
This garment is considered important in sports activities since it solves a many issue
faced by athletes in their activities. However, its main aim is to solve athlete injury issues in the
fields. This is facilitated by the fact that the garment has a toggle touch screen function that
PRODUCT, PRICING AND CHANNEL
3
protect the body from minor injuries such as strains, twists and pulling of joints and muscles.
SmartFit is also used in regulating the outlet temperatures in an event since it is aerodynamic that
allow a steady flow of air is making the athlete remain cool throughout the event.
It also solves comfort issues with the athletes since it is fitting to all athletes thus solving
issues that may affect the performance of the athlete. It is waterproof this not absorbing athlete
sweat that would make it heavy and uncomfortable during an event. The garment fits athlete
body structure, thus reducing issues of baggy and uncomfortable attires or tight attires that may
hinder the body flexibility. SmartFit garments aim at solving problems such as minimizing
athlete injuries, regulating temperatures when an athlete is playing and ensure there is a steady
flow of air and ensure the athletes is comfortable in during events.
Description of how your marketing efforts will change
The product life cycle has four very clearly defined stages, each with its categories.
Introduction Stage, Growth Stage, Maturity Stage and Decline Stage. During the introduction
stage, sales will be low and slow to start because that this will be a new and unique idea being
introduced to the market. Promotion is the key that this point. SmartFit uniforms will need to be
market as the new “must have” uniform with the advantages and uses of this product concept
highlighted. Prototypes will be tested and showcased at this point in development. By conducting
consumer tests through focus groups and other feedback methods, we will be able to track customer
responses to the product. During the Growth Stage, there will be a strong growth in sales and
profits. The stage that we would need to chaptalize on SmartFit uniforms. By gaining
endorsements from major establishments, SmartFit uniforms would then become the new standard
in official and privately used uniforms.
PRODUCT, PRICING AND CHANNEL
4
The scale of production and overall profit could then increase making it possible for our
businesses to invest more money in promotional activities to maximize the potential in this growth
stage. During the maturity stage, SmartFit uniforms would be well established, and marketing
would shifted to maintaining the market share we have built. In this stage, Nike would need to
consider any product modifications or improvements to SmartFit uniforms that would help them
keep a competitive advantage. Changing the price to appeal to an entirely new audience or finding
new applications for the product would help keep SmartFit uniforms relevant in the market. During
the decline stage, new products would start to copy and could start to replace SmartFit uniforms.
As a company, we could explore switching to less-expensive production methods and cheaper
markets to maintain profits. At this stage the product life cycle, this is where we would need to
step it up and show our customers that our brand is like no other. Nike would need to show that
we alone offer superior materials and a product that cannot be substituted.
How your packaging or service will add value
How can SmartFit packaging add value to their brand? There are several ways products
manufacturers can increase the value of the brand by knowing your product worth and what can
it offer the consumers? Make the packages attractive or bundle it with another product possible.
What can SmartFit add to make the consumer want to experience SmartFit? Not only will
SmartFit customize the packing method, but also the delivery service will fast and to the
consumer’s door. SmartFit can add value by proving excellent customer service and provide bulk
discounts.
SmartFit is a new product that will grab the attention of athletic professional, sports
parents, and the general population. When consumers are shopping for that special workout, they
PRODUCT, PRICING AND CHANNEL
5
leave the store with a regular bag. With SmartFit, there are two different types of packaging
offered based on the purchasing method. When SmartFit consumers purchase their items from a
retailer, they will receive a nylon mesh zip tote. The SmartFit tote will allow your fit to breathe
and avoid a smelly car, locker or room with the option to order a customized tote. Internet
purchase, will come with a customized tote. To give consumers option with their purchase I
believe will increase the online customers as well as retailers. With the consumers knowing that
they do not have to worry about any injuries, they will be protected at the same time is a big win
for SmartFit. SmartFit is affordable, backed by one of the top manufacturers of sports apparel
and allow the customer to customize their tote, what other smarts do one need to purchase
SmartFit.
Pricing Strategy for your product or service
We are providing a valuable service to consumers for SmartFit uniforms. Therefore we set
our pricing to value all customers. Our pricing is set to be a reliable and efficient cost to all
consumers and organizations. The initial amount of $100 per uniform to our retailers which is cost
efficient for our company and our retailers, this cost allows them to provide an additional mark up
of 50% as well, to allow a gain to their bottom line. Even purchasing the uniform at $150 for
consumers they still save more than purchasing each item to maintain their heat level during
competition or keeping them from injuries to remain competitive.
SmartFit is the next generation of protective wear at an extremely affordable price. The
cost of the uniforms is less due to buying the material in bulk and still allows our company to profit
after expenses are deducted. We firmly believe that we are pricing our SmartFit uniforms to value
our customer’s and align within their budget requirements, as the biggest bang for their buck will
PRODUCT, PRICING AND CHANNEL
6
draw them into purchasing our products. Our pricing is based on the cost per unit of $30 and the
value of the product to consumers running around $300, therefore pricing the retail cost at $100
and then allowing the 50% markup, therefore consumers can pay half the cost of the value to them.
This will also leave room for retailers to provide a greater markup, however our marketing would
prefer them to retain at only a 50% markup that makes it clear to consumers that we are branding
a product that is reasonable to purchase. Any retailer providing a greater markup for gross profits
need to understand, not only our benefit of the product, but that we value our consumers and their
budget constraints as well.
Channels of distribution used to sell your product and how each partner will add
value
The different channel that could be used to sell the Nike S.M.A.R.T would be the web
site, stores, TV ads, and athletes who are well known in the sports that they play. A website is a
great tool for companies to use when trying to sell their products around the world. This allows
the customer to see all of their products that the company is offering, sometime the item that they
are looking for come with free shipping with buying the item off their site. This allow sporting
franchise to buy their products in bulk and people who work out or play a sport find their product
easy. Customer wants to make their shopping experience, an easy task in a world that is growing,
and moving fast with very little time to go in to do their shopping.
Shopping online makes it easy for them to buy what they want without all of the hassles
of shopping. This would work out just fine for Nike S.M.A.R.T because the company is able to
bring in income from all over the world. Which give athletes more option without having to look
all over for an item that may not be in stock. This adds more value to the company, because they
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are able to reach more customers. Nike’s have stores worldwide with product that fit that market
so that their customer don’t have products that fit their market and more. Customers are doing a
lot of shopping online would be best for Nike to give some type of discount for there in store
products. Buying online come with so many deal that it’s harder to keep a store open, because it
is easy to buy online. Using athletes to advertise their products and promote sell through
adverting is a great tool for a company to show off their products. It is also great marketing for
the company because these athletes are wearing these products pushes customer to also buy the
product. This is more profit earn for the company buy having them promote their product, which
bring in more customers.
Conclusion
SmartFit will bring smiles to many faces. SmartFit is hitting the market with many perks
that will find the consumers pleased with their purchase. SmartFit will have a positive sales flow
while making a statement for the brand. SmartFit will be global. Therefore the sales will be
greater with more happy consumers. The product will be at 50% markup that will give room to
the retailer. The packaging will give the consumers a breathable tote that can be customized.
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Reference
Chia, M., Wong, P., & Wong, (2012). Exercise personal training 101. Singapore: World
Scientific Pub Co Inc.
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