Consumer Behavior and Big Idea Concept for the Nike Fuel Band - Essay Example

?Consumer behavior and big idea concept for the Nike Fuel Band First section: Consumer behavior The people who wear the Nike Fuel Band are people whocare about fitness. They also depend heavily on technology as their information source. Staying active is a challenging feat, especially when one does not have something to motivate them. Wearers of the band form Nike are thus well-informed persons who know the implications of living an active lifestyle but may not always do what is required. They need an extra nudge to get them going. The band may also act as a visible reminder of their commitment to living a healthy lifestyle (Wortham, 2012). Buyers of the product want to understand their habits more effectively, so that they can improve. Shame is one of the factors that propel buyers to make use of the device once they purchase it. If no activity is registered, the band will have a dull red dot with no other signal. Therefore, users will feel guilty about not doing enough to activate the sensors in the machine. On the other hand, one may also assume that these consumers are driven by attainment of short term goals. They want to feel good about themselves and the efforts that they have put into self improvement. It is for this reason that the band sends congratulatory messages to those persons who have attained their daily goals. Buyers of the product are also believers of scientific techniques. This device will collect data on the consumer’s fitness activities throughout the day through a combination of their movements and plyometrics. Essentially, one would not buy such a band if one did not believe in the power of science to find information about something and then build it to become a more informative insight. These are also people who are well-informed about fitness processes. Many of them know the intricacies of calorie counting as well as the implications of exercise intensity (Dent, 2012). Users of the device also operate under the same psyche as video game users. In just the same way that players are induced to play through accumulation of points and achievement of certain levels, Nike Fuel Band users are subjected to the same process. Exercise enthusiasts can accumulate points and get to certain level. When they get rewards for their behavior change, these individuals will be induced to make a habit out of the gadget. Usually, the rewards come in the form of a dancing alien. While the latter may seems like an insignificant and intangible item, it is the meaning of that reward that counts. These types of consumers also long for approval from other people. Perhaps another revolutionary thing about the product is its ability to link consumers with other users though social networks. It allows persons with similar goals to share their accomplishments and thus boost each other’s morale. Such buyers relish complements from their peers. They also care about what people think regarding them. Conversely, one may look at this behavior from a different angle. Persons who purchase the band in order to connect with friends may be perceived as friendly and sociable creatures. The device could simply be a new way of spending time with their counterparts and sharing with them. They may be looking for different points of contact with each other. Buyers of the product are tech-savvy, which explains why a person will need to use a range of other technology platforms to reap its full benefits. For instance, it depends on Bluetooth technology in order to use an application which will calculate the person’s activity rate. Additionally, consumers with ipads and ipods may also use the device in order to enjoy tracking via their applications (Nike, 2013). The product is sold for substantially more than other similar devices in the market. It goes for $150 yet a competing product is sold at $60. Regardless, of these differences, the bands were sold out during the launch. Clearly, these consumers do not focus much on price. They are more interested in the value that they can derive from the product. Purchasers have realized that they can enjoy additional benefits from the Nike Fuel Band in comparison with other activity tracking devices. These individuals are not likely to respond to excessive selling. Marketing messages are inundating the consumer market even in the health and fitness segment. Therefore, buyers only react to messages that are more inclusive and trustworthy. Social media is a great way to sell to this category because it relies on assertions by other friends. A person is likely to believe a message if it comes from a friend than a distant organization. The Nike Fuel Band consumer is one who believes in action rather than mere rhetoric. Therefore, it is for this reason that marketing efforts have been doing the same. It is likely that buyers of the product also care about branding. These individuals tend to support platforms that have a solid reputation. Some of them include Fitbit and Jawbone’s Up. However, these competitors are small in size and do not have the reputation that this organization has. The history of Nike in sports apparel makes it ideal for such brand-savvy buyers. Consumers probably want a product that is created by an institution they can work with. They know that future developments will arise concerning the product. Therefore, they are looking for something that will grow and develop. Only a reputable business is able to achieve these goals. Most of the competitors are not sports organizations; they are technological firms. Furthermore, a number of them are just starting up so it not possible to know how far they will remain in operation (Greene, 2013). Consumers who buy this product are also individuals who are open to new ideas on technology use. The organization is working with developers who may create applications on future use of the Nike Fuel Band. Some ideas include using points from the band to raise funds for charitable activities. These are persons who have an open mind and are willing to step into uncharted territory. Second section: Competitive insights Several factors have made the product more competitive than other tracking devices in the market. The company appears to have understood these behavioral issues and has incorporating it into its sales. The Nike Fuel Band is not just a product; it is an opportunity to earn something. Consumers like the idea of working towards certain goals. They are ambitious and would appreciate a platform that rewards them. This device elicited enthusiastic reviews during their presales on eBay because of that quality (Ptashnick, 2013). Consumers have gone digital even in their social encounters. Nike is aware of this trend and has set trends on how firms can connect with buyers using social media. The company is thus selling the idea of an emotional connection. The device does not just help people keep track of their fitness activities; it also helps them connect with friends on different levels. Several technology ecosystems already feed the Nike Fuel Band. Consumers have all these options to connect with their respective contacts. The extent to which initial buyers responded to the first launch affected how well the band did subsequently. The promotion campaign was so clear that it elicited sufficient response from initial buyers to cause others to do the same. The company generated enough hype to elicit interest from potential buyers. Shoppers bought into the idea of earning points for doing something with their bodies. Third section: concept “big idea” is offering in promotions and adverts Nike is greatly interested in shifting attention from traditional marketing to digital platforms. The organization did not simply carry the same strategy it applied in traditional forms to this platform. In other words, marketers were not trying to sell a product in as direct a manner as possible. Their big idea is to spark conversations between buyers and other buyers as well as the company and its consumers. The company created a campaign on You Tube and social media that was designed to elicit conversations about the product in the exercise community. One such example was the campaign called “Make it Count”. It was directed by filmmaker Casey Neistat who went on a one and half week long expedition. He wore the Nike Fuel Band and was accompanied by a series of his friends. The director filmed his adventure using a camcorder where the individuals climbed, biked and ran in different parts of the world. Twitter and YouTube recorded unprecedented responses from enthusiasts. It elicited 8 million views on the channels (Munnarriz, 2012). Users got in on the action and made comments about what was recorded. A number of them also gave their input about the band. Different people learnt about how to use the products from the campaigning efforts. They also got ideas on how to improve their fitness level by seeing the kind of activities that others are engage in. In fact, the latter campaign was so successful that other online companies borrowed the concept. Dazed Digital is a music organization that mimicked Nike’s approach. It allows viewers to engage with them by making their own music videos. This trend of experimenting and discovering new things was derived from the sports company’s approach. Fourth section: Recommended big idea The company currently focuses on sending down-to-earth messages to exercise enthusiasts. However, Nike has previously experimented with other traditional platforms. It has used celebrity endorsements to build enthusiasm around the product. The firm has already established that digital marketing is the way to go. However, it can merge celebrity endorsements from pro athletes with digital interventions. The organization needs to identify the most popular sporting categories in social media. Thereafter, it should get top athletes to wear the band and share their accomplishments. Fans can then compare and show off to their friends how they accomplished similar goals to their favorite celebrities. This will inject some excitement into the sale of the product. References Dent, M. (2012, January 20). Nike unveils fuel band, its 24/7 fitness monitoring Jawbone Up rival. Wired UK. Retrieved from http://www.wired.co.uk/news/archive/2012-01/20/nike-plus-fuelband Greene, J. (2013). How fuelband fuels Nike’s bold tech ambitions. CNET. Retrieved from http://news.cnet.com/8301-10797_3-57590277-235/how-fuelband-fuels-nikes-bold-tech-ambitions/ Munnarriz, R. (2012). Fans get exercised over fuel bands. Daily Finance. Retrieved from http://www.dailyfinance.com/2012/01/26/just-fuel-it-nike-fans-get-exercised-over-fuelbands/ Nike (2013, November 6). Nile+Fuelband. Retrieved from http://www.nike.com/us/en_us/c/nikeplus-fuelband Ptashnick, V. (2012). Nike + Fuelband for sale in Canada, but its not for everyone. The Toronto Star. Retrieved from http://www.thestar.com/life/technology/2012/10/31/nike_fuelband_for_sale_in_canada_but_its_not_for_everyone.html Wortham, J. (2012). It’s hard to stay friends with a digital exercise monitor. The New York Times, BU3. 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