Nike and Fashionable Shoes

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to broaden her line beyond Nike is that many other companies have entered the running shoe market—with many different designs and styles. And many customers purchase running shoes with no intention of ever running in them. In fact, one study suggested that 80 percent of consumer buy sneakers just for looks. Running shoes are the new casual shoe. Prices have dropped. And many producers are emphasizing fashion over function.

Still another problem that worries Tamara is wether she really wants to help pioneer a specialty walking shoe market. Those people who accept the need for quality walking shoes seem to be satisfied with running shoes—or hiking boots. Selling a whole new walking shoe concept will require a lot of expensive introductory promotion. And, if it is successful, lower priced version will probably enter the market and be sold in most sporting goods store—as well as large shoe stores. So the larger margins currently available will erode as the size of the specialty walking shoe market becomes clearer. The basic question bothering Tamara are: Is there really a specialty walking shoe market? If so, how big is it? To get a better idea of how people feel about specialty walking shoes, she started asking some of her present customers how they felt about special shoes for walking. The following are representatives responses:

“What? I can walk in my running shoes!”

“I might be interested if I could really notice the difference, but I think my running shoes will work fine.”

“No, my running shoes walk good.”

To get a better feel how noncustomers felt, she talked to some friends and neighbours and a few people in a nearby shopping mall. Typical responses were:

“My regular shoes are fine for walking.”

“I really don’t do much walking and don’t see any need for such things.”

“I might be interested if you could explain to me why they were better than my present running shoes, which I got at WalMart.”

“My hiking boots work pretty well, but I’d be willing to hear how your are better.”

“I do a lot of walking and might be really interested if they were a lot better than the running shoes I’m using now.”

“I’m always interested in looking at new products!”

Evaluate Tamara Lang’s present strategy. Evaluate the alternative strategies she is considering. What should she do? Why?

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