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Assignment A
Question1. Food Mania is a chain of fast food restaurants located in major
metropolitan areas in the south. Sales have been growing very slowly for the last
two years. Management has decided to add some new items to the menu, but first
they want to know more about their customers and their preferences.
a)
b)
a)
b)
c)
a)
The manufacturer of a new cereal brands want to conduct in home product usage
test in Chicago.
A national chain store wants to determine the shopping behavior of customers who
have in store charge card.
A local TV station wants to determine households viewing habits and
programming preferences.
The local chapter of the American Marketing Association wants to test the
effectiveness of its new members drive in Atlanta.
A distance education institute wants to determine effectiveness of its
management programme launched 3 years ago.
b)
c)
d)
e)
Is there evidence that an average of more than 50 refrigerators per store were
sold during this sale? Use alpha = 0.05
b)
What assumption is necessary to perform this test?
ads traditionally did not specifically place a product or mention the brand name. A
mood or atmosphere is created and than brand is associated with that mood. We
dont set out to make ad the ultimate goal is to make connection. States Dan
Wieden, executive at one of Nikes ad agency. One ad features the Beatles and clips
of Nike athletes, Michael Jordan and John McEnroe, Juxtaposed with pictures of
regular folk also engaged in sports. It was use to infer that real athletes preferred
Nike and that perhaps if general audience buy the brand they will play better, too.
Nikes unpredictable image based ads have ranged from the shocking, such as its
portrayal of real blood and guts in the search and destroy campaign used during
the 1996 Olympics games, to humors, such as the first ad used to launch Michael
Jordans brand wear. The latter advertising made the tongue-in-check suggestion
that Jordan himself had a hand in the production by sleeping away from a bulls
game at half to run over to his company and than return in time for the games
second half.
In 1998 Nike shifted to a new phase in its marketing strategy. Nike
emphasized more of its product innovation skills than the jokey, edgy attitude that it
displayed in previous year. We recognize that our ads need to tell consumers that
we are about product innovation and not just athletes and exposure. We need to
prove to consumer that we are not just slapping a swoosh on stuff to make a buck,
said Chris Zimmerman director of Nikes U.S. advertising. With the launch of the I
can campaign, Nike showed fewer of the celebrity athletes who previously usage
than in the previous Just Do It campaign. Competitors Reebok and Adidas recently
featured more product focused ads and were met with a great deal of success.
Despite this rearranged focus, Nike did not back away from innovative marketing.
On September 4, 2003 Nike acquired converse Inc. And on august 11, 2004,
the company acquired starter properties LLC and Official Starter LLC. On august 4,
2005, Adidas confirmed that it had agreed to acquire Reebok for $3.8 billion.
Industry official saw more consolidated ahead.
In 2005, Bill Perez, president and CEO of Nike, stated that developing
markets India, Thailand, Indonesia China, Russia- and the development of
Converse , Starter and Nikes other subsidiary presented big growth opportunity.
Weve just scratched the surface in the womens fitness. In soccer, we have
become worlds leading on-field performance brand. And we have been able to
leverage that on-field success by creating entirely new category of soccer street
foot ware. And we see opportunities like this throughout the portfolio.
As the company looks ahead of 2010, at the heart of the Nikes future
strategy is the international arena, which could prove to be the most difficult
element for Nike to undertake. There seems to be a pretty strong recognition that
by 2010, Nike would be largest outside the US than inside. Most recently Nike
bought out many of its worldwide distribution centers in order to have greater
control of its operation. In the future Nike would like to build up its presence in the
key market of India, Thailand, Indonesia, Brazil, China, and Russia. Nike will focus its
advertising on sports and will feature sports that are of particular interest in specific
region. Nike realizes that while it is ahead of its competition, it still has a long, long
way to run.
Questions 1: Should Nike switch a focus on celebrity to a focus on its products in its
advertising? Discuss the role of marketing research in helping Nike management
take the decision. What kind of research should be undertaken?
Question 2: How would you describe the buying behavior of consumers with respect
to athlete footwear?
Question 3: Define the marketing research problem facing Nike, given the
management decision problem you have identified?
Question 4: What is the management decision problem facing Nike as it attempt to
retain its leadership position?