Customer Satisfaction And Customer Industry -Myassignmenthelp.Com

Question: Discuss About The Customer Satisfaction And Customer Industry? Answer: Introduction Customer perceived value for a particular organization is an important factor that is related to the marketing plans. The value of a particular product or an organization is mainly based on the ways by which the products satisfy the needs of the customers. Customers are a major part of the marketing plans and activities of the organization and they are able to decide the value of the organization. Extensive research is conducted by the companies so that they can understand the needs and desires of the customers and design their products accordingly (Arslanagic-Kalajdzic and Zabkar 2015). Value proposition is the comparison between the benefits offered by the products of the company and the amount of money paid by the customers. The companies tend to use different advertising techniques so that they can enhance the value of the brand and create place for the brand in the market. The marketing messages are delivered by the organization for fulfilling various objectives and with the hel p of various media (Bowen and Chen McCain 2015). This report will be based on the analysis of the value proposition Adidas and comparison of the value propositions with those of Nike which is the closest competitor of the company. The perception of the customers towards the brand will also be analysed and new values will be proposed. Perceived values of the sports shoes Benefits of Sports shoes Sacrifices of buying sports shoes Convenience or availability The wide range of products are suitable to satisfy the needs of the customers. Considerable amount of outlets in the countries. Easy to use for all types of customers who are concerned about fitness. Monetary The costs related to the purchase of the sports shoes. The costs incurred to travel to the stores of the companies. Monetary The prices of the shoes are affordable for a varied range of customers. Reward schemes and discounts provided to the customers. Effort The time required to visit the stores and choose from the various products. Understanding self needs and then purchasing the suitable product (Bricci, Fragata and Antunes 2016). Quality The products of the sports shoe companies are certified by various quality standards. The brand value of the companies help in determining quality. Health Stress related to the inability of purchasing the desired shoes due to heavy crowd. The problems that can occur from the bad quality or harmful products. Social Social status is related to the association of big brands like Adidas. Increase of self-esteem of the buyers who purchase products of big brands. Social The stigma related to the purchase of the cheaper items of the same quality. Opportunities The unavailability of opportunity to buy products with have high demands (Cosso-Silva et al. 2016). Adidas is a multinational organization which was founded in the year 1924 and the headquarters of the company is located in Herzogenaurach, Germany. The company mainly operates in the designing of shoes, accessories and clothes. Adidas is considered to be the largest sportswear manufacturing company in Europe and it holds the second position in the world. The belief among the customers of Adidas is that the meaning of the term is all day I dream about sports, however, the actual meaning of the word according to the company is different and it is adopted from the name of the founder, Adolf Dassler. The brand perception of the sports shoes division of Adidas is related to its concept of cutting edge soccer (Adidas-group.com 2018). The company mainly focusses on the field to improve the brand and strengthen its position. An important feature of Adidas is that they produce the most lightweight material which is used for the manufacture of footwear products. The innovative benefits of Adidas are the lethal spins that are manufactured for the soccer cleats. The major difference or benefit that Adidas holds in the market is the perception of the brand in the market. Adidas had attached a tiny chip in their TECHFIT compression top which was able to capture the data like, distance, speed, heart rate, field position and acceleration. This was then used by the coaches so that they can improve the performance of the players in the field (Bricci, Fragata and Antunes 2016). The Means-end Model is used for the value proposition analysis of Adidas Extrinsic Attributes: Attractive advertisements and holds the first position in Europe. Intrinsic Attributes: Attractive packing, recyclable packing and eco-friendly This model can be used to relate the quality, price and value of the products manufactured by Adidas. The model permits the companies to correlate the concepts related to perceived quality, perceived value and price from the perspective of the customers. Intrinsic Attributes: High Quality, affordable prices, customers get value for money Objective Price Price High level Abstractions Perceived Quality Perceived Value Purchase Perceived Monetary Price Perceived Sacrifice Perceived Nonmonetary Price The attributes of the company related to the pricing strategy and the customer value are analysed with the help of this model. The value of the products of a company are decided by the customers based on the intrinsic and the extrinsic attributes. The major driving factor of the customers for purchasing Adidas sports shoes can be divided into extrinsic attributes which include, the positioning of the brand in the market, the advertisement policies. The intrinsic values of the other hand consist of the quality of the shoes, the features provided, the packaging (Chen 2015). The extrinsic attributes of Adidas are related to the second position of the brand in the whole world in terms of its sales. The advertisement policies of Adidas are also quite effective for the company so that it can attract the customers towards the brand. The collaboration of Adidas with rapper Kanye West has been able to elevate the perception of the brand in the market. The intrinsic attributes of the brand are related to the quality of the sports shoes manufactured by the company. The innovative products of Adidas are important intrinsic attributes of the company. The different products of the company include, 3D printed soles. Sneakers manufactured from recycled plastic, leather uppers and many more. The intrinsic attributes of Adidas are quite strong and this will improve the perception of the brand in the industry (Cosso-Silva et al. 2016). Comparison of the value proposition of Adidas and Nike The core values of Adidas are related to the principles of conduct and the ethics that guide the shape of the company and govern the ways by which the company conducts with the other companies in the business world. The core values of Adidas are derived from the mission statement of the company. The core value of Adidas states that they are a global organization and are environmentally and socially responsible to embrace diversity and creativity. The creative and diverse nature of the company will help in providing financial benefits to the shareholders and the employees. The four major parts of the core values of Adidas include, performance, passion, diversity and integrity. Diversity has been a major part of the value proposition of Adidas and they aim to deliver a wide range of products to the customers (Floh et al. 2014). The extrinsic factors of Adidas which include the advertising policies are a major point of difference with its biggest competitor Nike. The association of the company with celebrities were able to provide them the position of the top-selling shoe company in the world. The flagship product of the company named Adidas Superstar was launched in the market with low price and this enabled Adidas to attract investors and customers who were a part of the Team Nike (Xu, Peak and Prybutok 2015). Adidas has gained huge popularity in the market as it is being increasingly used by the soccer players in Europe and they have become an athletic brand. The stock prices of the company have also risen in the recent times and the stocks of Nike have suffered. The growth of Adidas in the core market areas has made the company much more favourable for the investors as compared to Nike (Kang, Alejandro and Groza 2015). However, the other products of Nike have helped the company in holding its position in the market. The latest and most recognised launch of Nike in the recent times is the Air Jordan Space Jam 11 which is supposed to be Nikes biggest launch. Many products manufactured by the Nike company include the classic converse, Air Force 1 low and Chuck Taylor All-Star Low. Nike still remains in the top position in the shoe manufacturing industry in spite of the growth of their biggest competitor Adidas. The competitive position of Nike is the highest in North America where they hold 50.8% of the total market share and Adidas holds 7.4% even after its improvement (Kaura, Durga Prasad and Sharma 2015). Nike has also been able to maintain a lead based on their revenues as the annual sales of the company amounts to 32.4 billion dollars and the revenue of Adidas amounts to 20.6 billion dollars. Nike has a high level of understanding related to the change in the market dynamics in the digital arena and the changing ways of shopping done by the customers. Nike is therefore taking much lesser time as compared to the other companies for bringing new products into the market and this helps them in retaining the position as the market leader. The other strategy of Nike to maintain its competitive position is related to the increase in the growth of the number of outlets and e-commerce operations. As Adidas has been dominating the soccer market, Nike has been a major player in the basketball market. This is the main reason why the success and growth of Adidas in the industry did not affect the growth rate of Nike (Nike.com 2018). The reason behind the success of Nike in the basketball business are the sponsorships that they have of the English and the Brazilian National teams. Basketball has been the base of Nikes success from its inception and they continue to make significant growth in the market with the help of this factor. The integrity of the Air Jordan sneakers was lost many days ago, however, these shoes are still in demand and the customers spend huge amount of time during the purchase of these products (Zakaria et al. 2014). The debt position of Nike is also better as compared to Adidas and the company generates cash flow which much higher as compared to that of Adidas. Nike is also cheaper than Adidas from the point of view of the investors. The recent success of Adidas is mainly related to the changes in the fashion choices of the customers and the increasing popularity of the lifestyle related products. Adidas has however gained a lot in the recent times due to the ways by which the analysts have downgraded Nike in the recent times (Kim et al. 2015). The major risk that is being faced by Adidas due to its reliance on the fashion products is the restriction towards the growth of the company. The durability of Adidas and the power of pricing mainly relied on the sponsorships that were provided to the sportspeople and not fashion stars. This change of reliance of Adidas on fashion products from sports related products can affect the future sales of the company (Kumar and Reinartz 2016). Nike and Adidas have been popular names in the sportswear and streetwear products and they have also been biggest competitors of each other for many years. The two companies have been fighting the battle to become the more superior brand in the market. The two organizations have made huge contributions in the sneaker and sportswear market by introducing many new and innovative products. Both Nike and Adidas have been many significant partnerships in their lifetime. Adidas has made many collaborations in the last two years and they are relying heavily of the young fans of the streetwear fashion. The company has taken the hep of social media pages like Instagram to reach the young people (McMurrian and Matulich 2016). The various collaborations that have been made by Adidas in the recent times are with Raf Simons, Palace Skateboards, Kanye West. The open partnerships created by Adidas have helped in the improvement of the position of the brand and has created a positive image in the industry. Adidas has been increasing the ties with many famous Japanese names like, White Mountaineering, kolor, Yohji Yamamoto (Zhang et al. 2016). On the other hand, Nike has always tried to make ties with the sportsperson or athletes. The company also uses the inputs provided by these athletes so to create the innovative products for the customers. Nike enlists partners and the partnership is much deeper as compared to normal collaboration. The designer of their famous product UNDERCOVER was Jun Takashi who was a member of the running crew in Tokyo (Nikhashemi et al. 2016). The performance collection of Nike was clubbed together with fashion-friendly colour blocking technology. Nike has been on the topmost position in the industry for a more than a decade now and this was a result of their collaborations with the various athletes. Nike is selective about their choice of partnerships and this has proved to be helpful for the company. The impact of the selective partnership policies of Nike is much more as compared to the huge number of collaborations that have been made by Adidas. Nike strives to create new products and opens new avenues for the improvement of revenue and sales (Prez and Del Bosque 2015). Benchmarking of the value propositions This comparison shows that although Adidas has many more collaborations as compared to that of Nike, the latter has been able to create more value with the help of their selective collaboration techniques. Creation of new values for Adidas The mission and marketing strategy model can be used for the creation of new values for Adidas. This will help in the alignment of the new values with the expected value of the customers (Piyathasanan et al. 2015). MISSION STATEMENT MARKET STRATEGY MARKETING PROGRAMMES OBJECTIVES NEW MISSION STATEMENT To provide new and improved products to the customers which are mainly related to sports. To maintain the sports based and athletic image of the company. NEW OBJECTIVES To add more products to their range along with the present products. To develop relationship with the customers and understanding their needs. NEW MARKET STRATEGY To increase the reach and availability of their products. To become more selective towards the choice of collaborations. NEW MARKET PROGRAMMES Maintain the affordable prices of the products and try to improve the debt position of the company. Maintain the durability of the products that are supplied in the market. The new value propositions of Adidas are mainly related to the improvements that can be made in the current operations of the company to match with its biggest competitor Nike. The new value propositions are linked to the maintaining of the image of the company related to sports which has changed recently due to their reliance on the fashion products. Adidas will increase their reach and availability in the market. Adidas will try to improve its debt position in the market so that the cash flows are more than the costs. Adidas will maintain the customer relationship policies that it has established with the help of social media. Adidas will become much more selective in collaboration and try to take inputs from their partners regarding their operations and the product designs. Adidas will improve the pricing policies of their products so that they can fulfil the needs and the demands of the customers easily. Adidas will be more committed towards their environmental responsibilities and try to use sustainable and recyclable raw materials for the manufacture of raw materials. Adidas will improve their customer services by providing training to the employees. Adidas will improve their work culture so that the employees have the right balance between their work and personal lives (Prasertchuwong 2018). Adidas will not only aim the young population by their products and offering, they will increase the product range to cater needs of the customers of all the age groups. Nike and Adidas are the two major players in the sports shoes industry and they are the biggest competitors from the inception of both the companies. Nike has been the leader in the market for many years and the value propositions of Adidas need to be improved so that they can attain the topmost position in the market. The implementation of the new value propositions that have been defined above will help Adidas to create a new market position and gain more customers for the company. The management of Adidas needs to monitor the implementation process so that Adidas can be successful in its endeavour (Prebensen, Kim and Uysal 2016). Implementation plan of new value proposition for Adidas The implementation plan for new value proposition of Adidas will involve the improvement of the marketing programmes and the marketing strategies formulated by the organization. Marketing strategy Marketing programme Marketplace of customers The offered value . Product policies Pricing policies Place or distribution Promotions or marketing The major factors related to the changed value propositions of Adidas are the to cater to the needs and desires of the customers. The promotional activities of Adidas need to be improved by making collaborations with the athletes and sportspersons and take inputs from them regarding the products. The product range can be increased by recruiting more professionals in the production units and increasing their efficiency by providing adequate training (Rahi 2016). Marketing plan for Adidas The 4 Ps of marketing can be used for creating the marketing plan for Adidas. Product Adidas can add new products to its range which will cater the needs of the sports people along with the fashion conscious youth. The customer base of the company will increase in the process. Price Competitive pricing of the products is important for the improvement of sales of the company. This will help Adidas to cater to the needs of the customers of all age groups (Scherer, Wnderlich and Von Wangenheim 2015). Place The availability of Adidas is quite high, however they need to increase their outlets and e-commerce presence so that the reach of the products can also increase. Promotion The promotional activities of Adidas have been aggressive in nature and has been making noise in the market. However, the advertisements did not have much effect on the target audience. Adidas needs to make collaborations with sports persons mainly and take inputs from them regarding the design of the products (So, Danaher and Gupta 2015). Conclusion The value perceptions of the consumers have immense effect on the sales of the company and the products that they offer. The report was based on the analysis of the value perception of two strong organizations and biggest players in the market, Nike and Adidas. The value perception of Adidas is analysed and then compared to the value perception of Nike. The analysis has shown that Nike has maintained the topmost position in the marketing in spite of the improvement made by Adidas in the recent time. This was possible due to the unique value proposition of Nike and the effective advertisement policies as well. The report can be concluded by stating that the position of Adidas in the market can be improved by changing the value propositions of the company and further increasing the range of products. The changes in advertisement policies are also necessary for the improvement of the sales and revenue of Adidas. The service provided to the customers also has an effect on the value of th e company as perceived by them. This will help the company in improving its position in the market. References Adidas-group.com (2018). [online] Available at: https://www.adidas-group.com/en/ [Accessed 7 Mar. 2018]. Arslanagic-Kalajdzic, M. and Zabkar, V., 2015. 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