Consumer Behavior Report


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Highlights target market, product benefits/liabilities, and other consumer related information regarding the 2007 Nike SQ Driver.

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Consumer Behavior Report

  1. 1. Nike SasQuatch SQ Consumer Behavior Audit By Colin Crume, Mike Ditch, Michael Holdsworth, and Christopher Mowder
  2. 2. Background <ul><li>Nike Sasquatch SQ </li></ul><ul><ul><li>Nike’s newest driver (2005) </li></ul></ul><ul><ul><li>Available in Men’s, Women’s, and Senior’s versions </li></ul></ul><ul><ul><li>Shafts available in Xtra Stiff, Stiff, Regular Mid Kick, and Senior Flex </li></ul></ul><ul><ul><li>Suggested retail price $359 </li></ul></ul>
  3. 3. Major Competitors <ul><li>Titleist </li></ul><ul><ul><li>905R </li></ul></ul><ul><li>Callaway </li></ul><ul><ul><li>FT-3 </li></ul></ul><ul><ul><li>Big Bertha </li></ul></ul><ul><li>Taylor Made </li></ul><ul><ul><li>R7 </li></ul></ul><ul><li>Cleveland </li></ul><ul><ul><li>Hi*Bore </li></ul></ul>
  4. 4. Tiger Woods <ul><li>Major spokesperson for Nike Golf </li></ul><ul><li>Uses the SasQuatch SQ </li></ul><ul><li>Positive factors about Tiger: </li></ul><ul><ul><li>Highly thought of among golfers </li></ul></ul><ul><ul><li>World’s richest athlete </li></ul></ul><ul><ul><li>Extremely successful </li></ul></ul><ul><ul><li>Appeals to younger generation </li></ul></ul>
  5. 5. Minorities in Golf <ul><li>Tiger Woods gives Nike Golf an edge in marketing to minorities. </li></ul><ul><li>Predicted increase in African-Americans playing golf due to: </li></ul><ul><ul><li>Woods </li></ul></ul><ul><ul><li>First Tee Program </li></ul></ul><ul><ul><li>Golf 20/20 </li></ul></ul>
  6. 6. Brand Loyalty <ul><li>Golfers are extremely brand-loyal </li></ul><ul><li>Importance of securing young golfers – they can be brand loyal for life </li></ul><ul><li>Many older golfers have difficulty seeing Nike as a “proven” golf-equipment company because it hasn’t been around long enough. </li></ul>
  7. 7. Gen-X and Gen-Y <ul><li>Nike’s primary marketing is toward Generation X golfers (late 20’s to early 40’s). </li></ul><ul><li>This group is willing to accept Nike as a golf manufacturer and closely follows the career of Tiger Woods. </li></ul><ul><li>Generation Y (those now in high school or college) are an emerging market also. </li></ul>
  8. 8. Design & Appearance <ul><li>Abnormal design </li></ul><ul><li>Club head size </li></ul><ul><li>Color scheme </li></ul><ul><li>Unique/noticeable club overall </li></ul><ul><li>Latent motives for purchasing – to be seen </li></ul>
  9. 9. Pricing strategy <ul><li>SasQuatch SQ = $359 </li></ul><ul><li>Taylor Made & Titleist = $399 </li></ul><ul><li>Cobra & Adams = $299 </li></ul><ul><li>Some confusion – does Nike want the club seen as high-end (expensive) or low-end (economical)? </li></ul>
  10. 10. Target Market <ul><li>Core golfers – age 18+ who play 8+ times per year. This group makes up 91% of rounds played and 87% of golf-related spending. </li></ul><ul><li>Average Incomes </li></ul><ul><ul><li>Casual golfers: $77,000/year </li></ul></ul><ul><ul><li>Core golfers: $79,900/year </li></ul></ul><ul><ul><li>Avid golfers: $82,800/year </li></ul></ul>
  11. 11. Suggestions <ul><li>Age-related marketing </li></ul><ul><ul><li><15% of marketing on golfers 55 or older </li></ul></ul><ul><ul><li>Majority of marketing aimed at Gen Y </li></ul></ul><ul><ul><li>This group represents the largest growth potential, especially for lifelong brand loyalty </li></ul></ul><ul><ul><li>This group also is highly driven by status and brand awareness. </li></ul></ul>
  12. 12. Suggestions Cont’d <ul><li>Current positioning philosophy flawed </li></ul><ul><ul><li>Positioned as cutting edge/innovative but priced much lower than competitors </li></ul></ul><ul><ul><li>Current price is equivalent to second-tier drivers from major competitors </li></ul></ul><ul><ul><li>Nike does not want to change the price of an already-launched product, nor do they want consumers to think of the SQ as a less premium model. </li></ul></ul>
  13. 13. Suggestions Cont’d <ul><li>Solution: </li></ul><ul><ul><li>Focus more on the Nike brand. </li></ul></ul><ul><ul><li>Customers equate Nike with quality. Heavily market it’s “Nike’s new driver” and made with “Nike quality.” </li></ul></ul><ul><ul><li>Lower price is not necessarily helpful for a good closer to luxury status, as golfers in Nike’s target market are more after high quality than low price. </li></ul></ul>
  14. 14. Suggestions Cont’d <ul><li>Promotions: </li></ul><ul><li>Nike has failed to use Tiger Woods enough. </li></ul><ul><li>SQ ads feature Chad Campbell, Stewart Cink, Justin Leonard, and Grace Park. </li></ul><ul><li>Woods is easily the most recognizable and reputable golfer in the world. Nike must capitalize on that. </li></ul>
  15. 15. Suggestions Cont’d <ul><li>Demos </li></ul><ul><li>Put demo drivers in every pro shop and golf outlet. Let people get their hands on the club. </li></ul><ul><li>This not only encourages purchases but creates positive word-of-mouth and good buzz. </li></ul>
  16. 16. Conclusion <ul><li>The Nike Sasquatch SQ is a great club that has great opportunity. </li></ul><ul><li>It has a few marketing problems, but with smart changes Nike can get a large share of the market. </li></ul>