Partnership with Gyms - Assignment Example

Partnership with Gyms Introduction: Mercedes is one of the largest automobile manufacturers in the world; McLaren is another. Although both companies produce outstanding vehicles, they are in no way unique in the automobile industry. But when, a few years back these two manufacturers combined forces, history was changed. Together, they launched the Mercedes McLaren SLR, the world's fastest automatic saloon car on the planet. Imagine what Nike and Apple Inc., two of the world's most successful companies in their own industries, have created, by combining their forces. Over the past few years people's perception of their health status has been constantly improving, resulting in a change in their attitude towards fitness and nutrition. An increasing score of people is always on the lookout for effective health-related products. Nike iPod sport kit enables the iPod to play any music that motivates the person to perform exercise in accordance with his/her physical condition. It is a perfect device for a health-conscious person who loves listening to music while working out, and who doesn't these days. So far we have been quite successful in following our mission, which is to provide the health-conscious individual with an entertaining exercise experience. Since our product is at the earliest stage of the product life cycle, informing the consumer about the practical benefits of the Nike iPod Sport Kit is critical. Hence, in order to increase the sales of the sport kit, it is mandatory to form a partnership with the gyms, which would hopefully be beneficial for all three companies. Need for Partnership: The two chief causes behind the need for this partnership are as follows: 1. As gyms pose the most dangerous threat to the sales of the Nike iPod sport kit, it would be wise to partner with them in order to get decent market publicity. Hence, Nike and Apple would be able to avail the opportunity of selling not only this device but also other products, to gym members and at the gym stores. On the other hand, gyms would also receive numerous benefits from this partnership. Originally unknown gyms partnering with Nike iPod would eventually, be known to be sponsored by Nike and Apple. They would be using these huge brand names in order to attract as many new members as possible. Furthermore, it would also be easier to maneuver the regular costumers of Nike and Apple, to gain memberships at their gyms. 2. There also needs to be a change in the consumers of Nike iPod sport kit. As males are the chief consumers of this product, the aim of this partnership is to convince females into buying this product. Young females of age 22 - 35 years of age are the secondary targets, as they already are members of various gyms. The primary targets are middle or upper class workingwomen, especially those involved in the corporate industry. Use of the product by corporate women would increase its exposure throughout the business industry, resulting in an instant acknowledgement of the innovative technology applied by Nike and Apple Inc. The popularity of this product would also give rise to the sales of other goods manufactured by these companies. A demand for these brand names would further rise in the common market. Advantages of Partnership: For Customers People exercising outside would be able to constantly monitor and regulate their physical state. They can avail the facilities of the gym even when it is not accessible to them for some reason. Holidays or early closing of the gym would not stop people from healthy monitored exercise. High accuracy of the device and its easy operation surpasses the gym equipment in usage. The technology of motivating the user by the choice of songs keeps him running everyday. For the Company The partnership increases exposure of the device to all regular exercisers working out in gyms. The ipod Nano gains further recognition in its quest to maintain its leadership in mp3 players. The best place to explain operation of the device is a gym as it can be practically demonstrated. Exercisers are normally more interested in health related products as compared to other targets. Potential Candidates for Partnership: With the help of the gym locator on the website gympost.com, ten gyms were found in a 10 mile radius from 4400 University Dr., Fairfax, VA, 22030. Two of them, Lifetime Gym and Gold Gym, are considered to be the best options as they are built on a larger area, hold more members than any of the others, and are the most highly rated gyms around the community. Attaining Costumers: Aggressive activities like practical demonstrations at big supermarkets with short indoor running tracks, and sale of the device at the local stores of gyms would heavily attract buyers. Offering about 30% discount on the sport kit for every new member of the gym will definitely drive people towards buying the product. In addition, sponsoring sprint races and awarding prizes amongst members of the gym would increase the market exposure as well as sales of the device, as exercisers strive for perfect performance when in competition. Moreover, as the chief targets for this merger are females, Nike and Apple Inc. should offer this sport kit in pure feminine colors like hot pink, purple and other fluorescent shades. Conclusion: It is clear from the preceding discussion that partnership with gyms is beneficial to all three, Nike, iPod and the gyms. Nike and Apple would receive rapid market exposure and increase in sales. The open publicity would not only help in the marketing of the Sport Kit device but also other products manufactured by these two companies. Moreover, a rapid spread of Nike and Apple products throughout a new market, that is gym stores, would also deteriorate the efforts of upcoming competitors maintaining them at a long distance behind these two franchises. Regarding the need to widen the customer base of the Sport Kit, the chief aim of this partnership is to attract corporate workingwomen, spreading this advanced technology throughout the business industry. This would result in a big boom in the demand for Nike and Apple products in the market. To achieve these benefits, it is crucial to convince corporate women into buying this product, either through discounts or various other compelling features. References 1. Guffey, M. E. (2006). Essentials of Business Communication. South-Western College Pub; 7 edition. Read More