15th November, 2012
The Marketing Director
Subject: A study of changes in the Sportswear market in India in the past decade with focus on footwear sector. Analysis and suggestion about the marketing techniques that need to be implemented for the launch of a new product. The study also includes formulating a Pricing strategy and various promotional measures to be opted by Nike.
In today's competitive market, companies always try to introduce different types of products and creative marketing approaches so as to showcase the uniqueness in their products and to survive in the dynamic marketing environments. Nike, the American multinational company is a leading manufacturer and supplier of sportswear, apparel, accessories and services and holds the top spot in supplying athletic shoes and apparel throughout the world. The company, today is among the most valued brands. (Skoloda, 2010)
The product is due to be launched in India, which holds the top spot in terms of being among the fastest growing economies in Asia and is the most preferred markets for multinational companies. Indian economy is growing at 8.8%, which is among the best in Asia. (Nobrega & Sinha, 2008)
Changes in the Sportswear market over the last decade:
As Isaac Asimov once said “The only constant is Change” so is it. The current markets are ever changing. Philip Kotler & John Caslione (2009) state that “Turbulence is the new normal”. Companies introducing new products or investing into markets do not just forecast markets to be turbulent but already expect them to be so and formulate strategies likewise. Sportswear is a fast growing market influenced by these drifts and changing lifestyles. Adoption of healthier lifestyles has led to a surge in the usage and consumption of sportswear products, accessories and services. Indian Footwear industry is forecasted to be growing at Compound Annual Growth Rate of more than 20%. Men’s footwear constitute around 60% of the total market. (Enderwick, 2007)
PESTEL analysis of Indian footwear industry.
This analysis gives an overview of major factors affecting the overall business process. (Bob Paladino, 2011)
Political: India is one of the most stable nations in the world in terms of its political structure. The Indian National Congress (INC) party has been in power in India since 2004. The party's attitude towards economic development in country has been promising and they have been delivering in the past 8 years. New trade links have been opened. Provisions have been made for Companies making it easy for them to manufacture and market in India. (Nobrega & Sinha, 2008)
Economic: In terms of its Purchasing Power Parity and economic strength, India is fourth largest economy of the world. The Indian footwear market scores over others as it gives benefits like low cost of production, abundant raw material, and has huge base of customers. (Nobrega & Sinha, 2008)
Social: The past decade has seen huge surge in people taking active part in health and fitness activities. This active lifestyle has led to the surge in sales of sportswear products. People have become brand or trend-conscious. With more females now being able to move freely and socialise, India is becoming a preferred market. (Bijapurkar, 2007)
Technological: In the past decade, India is becoming the hub of technological developments; be it computer software technology, digital and media technologies or technology related to consumer products. Nike is adapting to these advancements and implementing the relevant technological advances in its products and marketing plans.
Ethical: Not much stress is laid on departments like Health and safety and other worker welfare measures, which means less production expenses for the company. Nike has been manufacturing products in India and politically unlike in western countries, there are no enforcement procedures or pressure...