The aim of this assignment is to determine the factors driving demand for NIKE. speculation on the values of various elasticities and finally forecast of future sales of NIKE which is mainly focused all over the world.
Factors that Drive Nikes demand:
price conscience consumers, and constant changing market trends and fads have all been attributing factors in how a manufacturer responds. Highly focused brand includes Nike, Adidas, and Reebok, they target a precise market. Price is related to Product, through the characteristics of the brand, it's packaging and overall image. People are buying into an ideal, not just the item. Consumers believe that there is a link between quality of a product and the price. Consumers question what they are getting for their money. Brand Management, customer awareness and loyalty, is directly linked to the price, therefore maintenance of the relationship between brand images; quality and price have to be consistent (Johnson, G & Scholes J 2004).
Substitution is the quiet common in the society.consumers sometimes tend to shift to other brands, may be because of high price or low quality or lost faith in theusing product or by attraction of complements of the other products.A lower price on a good causes people to buy more of that good instead of alternative goods.Likewise, increasing the price of a good would drive people to buy more of the substitute goods instead of good with the increased price.If the price of Nike shoes increases, people will start to buy Adidas and Reebok instead, substituting away from Nike
Number of potential customers:
Customers are a major portion of the micro environment. Without customers, there would be no business. For example, Nike is always looking and researching ways to improve their most popular running shoe, the Shox. They even provide a program on the Internet where you can create your own running shoe by being able to choose...