Nike is one of the best-known athletic companies in the world. It boasts many high-end prestige brands, including its running, basketball, and other types of athletic shoes which can be customized. Nike also offers premium sneakers such as its Jordans and Air Max, which have tremendous cache in terms of style. Nike’s new brand of SNKRS feature gold or artfully designed sneakers that are not functional for working out but are worn for fashion. Nike also offers fan apparel for a wide variety of major league sports teams. Much of Nike’s clothing runs more than a hundred dollars per item.
The company also offers a few lower-cost items but for the most part, Nike has always been a premium brand. There are many cheaper sneakers available but people buy Nike either because of the social cache given to the brand or because they genuinely believe the quality is superior. Cash cow items would include somewhat lower-priced athletic gear for running and working out that still carries the Nike swoosh on it. However, people are less likely to buy these items out of a desire to gain social cache versus their functionality or if they are on sale.
Flankers, or brands specifically designed to out-flank competitors would include some of its gear targeted at more serious athletes, such as its Nike Frees, which are minimalist shoes comparable to shoes offered by more serious running-focused companies such as Brooks and New Balance. Nike also offers athletic gear specifically designed for athletes that play specific sports versus merely wear the fan gear of hockey, basketball, baseball, and football teams. Serious athletes have a wide array of more sports-specific organizations they can patronize, however, versus Nike. Still Nike’s size is so vast as an organization it can afford to offer a wide array of products to eat in somewhat of the market share of such organizations. Overall, Nike’s brand strategy is that of a fashion-focused and trendy company that still attempts to offer high enough quality to attract some serious athletes.
Although the core benefit of Nike’s product offerings are ultimately clothing that can be either used in athletic participation or for general clothing, because of its price point and the construction of many of the items, there is an additional expectation that the clothing will wear well during certain activities. For some of the products, there may also be an expectation that they will convey social cache to the wearer. In the case of some users there may be an expectation of both — for someone who purchases customized running shoes for serious training, for example. This social cache might also be viewed as part of the product’s augmentation, or the ability to participate in the mystique of Nike, the sense that a Nike athlete is someone who goes above and beyond the conventional expectations of what is possible.
Planet Fitness gyms offer a core benefit of access to a gym at a relatively low price point. They are unlikely to meet the needs of someone who needs extensive equipment for weight training or who is training very seriously for athletics but for someone who wants access to cardio machines in a relatively low-key atmosphere, the gym serves its function. The gym advertises itself as specifically friendly to people who are just beginning to work out so the expectation is likely to be that individuals will not feel highly pressured to look a certain way while exercising. In terms of augmented product offerings, however, Planet Fitness very deliberately tries to demystify the workout experience which might be problematic for the brand in the long run as consumers who become more serious about fitness and who want more specialized training may move on beyond their membership to a more intensive gym setting.
Nike. (2016). Official Website. Retrieved from:
Planet Fitness. (2016). Official Website. Retrieved from: http://www.planetfitness.com/
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