Characteristics of the Target Market
The target market for Grip Golf Glove market is highly influenced by demographic characteristics. One of the characteristics of its market is the increased population size that is interested in golf. This increase has been linked with the high number of children that were born between 1946 and 1964. The increased number of childbirths at that time is the result of the current mature people who understand golf.
Most of the people within this age are now at their peak earning point in life. They have money to spend for leisure. In fact, researches show that most of the employees in their 50s spend most of their money set aside for leisure in golf and golf equipments.
O’Hara (2011, p. 11) affirms that expectations of the market are also dynamic since there are many people to consider when making changes in a brand before releasing it to the market. It is also worth noting that the population is in employment. Hence, it has an increased purchasing power.
The second characteristic of the golf market is that it consists of people from all parts of the United States. Lim and Patterson (2008, p.115) argue that, although golf was a preserve for those who lived in the eastern and northern parts of the nation, it has now spread to the west and south.
The employed and the retired population therefore shifted to the west and south in order to enjoy a good leisure time throughout the year. The market for golf and golf equipment has consequently shifted to the south and west.
Lim and Patterson (2008, p. 115) affirm that the demand for golf and golf equipments including gloves, shoes, balls, bags, and other items has therefore become high in the west and south. Investors in golf and golf equipments should therefore shift their attention to these places.
The other characteristic of the golf market in the United States is that it has been on the decline. The declining trend in golf courses has been attributed to the economic recession that hit the United States and other nations since 2007. The recession has significantly reduced the spendable income on the side of the government and the citizenry.
Prices of items have also shifted and the interest rate in banks has hiked. This makes it difficult for citizens to borrow money some of which is spent in golf as leisure. This situation has affected the golf market. For instance Won, Sunhwan, and Kleiber (2009, p. 5) argue that, by 2008, the number of golf courses reduced to 16,000.
It is therefore worth noting that the purchasing power for golf equipment has reduced with the increase in the number of golf courses because of the economic recession. Reduction in purchasing power will translate to low demand for golf equipments.
However, golf has become a popular source of leisure for all. Unlike in the latter years when golf was a game for senior citizens and the old, it is currently a game for all ages. The Key Points of Difference of the 3M Greptile Grip Golf Glove when compared to Competitors’ Products such as FootJoy and Bionic.
There are various points of difference in the products of Greptile Grip Golf Glove in comparison with products from its competitors such as FootJoy and Bionic. The major difference between 3M and others is that it focuses on key areas such as durability of the item, technological adaptability, price, value, and comfort. These factors are put in place in complete consideration of the need for enhanced gripping.
The company has gone a step further to adopt these factors in the development of the premium Greptile Grip Golf Glove. The company rated this product as of the highest quality since it was made of Cabretta leather. This product was also launched in Europe and Japan. The price of the Greptile Grip Golf Glove was $16.95 on the lower side and $19.95 on the upper side.
On the other side, its competitors have also launched their products. For example, Bionic launched two gloves: the Classic and the Pro. These products were priced at $24.95 and 39.95 respectively. In comparison with 3M, the price of the glove in Bionic was high. Hence, the customers would still prefer the products from 3M. An orthopaedic hand surgeon created the Classic and the pro glove.
The aim of involving a specialist was to exaggerate the professional appeal on the minds of golfers and other customers. However, this strategy could not have overcome the initiative of linking technology, comfort, durability, value, and price by 3M. On the other hand, another company, FootJoy comes up with a competing glove: Pure Touch Limited, which is also regarded as “tailor cut”.
The glove was priced at $28 and $18 for precision fit and Sci-Flex designs correspondingly. These prices were still beyond the price that had been set in the Market by 3M. Fullerton and Merz (2008, p. 90) posit that price is an integral component in sports marketing. In fact, price is a powerful tool that determines the ability of the customer to buy an item with a certain value.
Englis and Solomon (1995, p. 13) are for the opinion that comfort and durability of the product come after the customer has gained the ability to purchase the product, which is highly dictated by price value. An item may be of good quality and comfort, but the customer may not acquire it due to his or her income.
In comparison with substitute products, 3M’s golf products have also been affected by the economic recession. As other substitute products make changes in price, 3M has also made alterations on its pricing and value. The attention in marketing golf products has now shifted and narrowed down to the price factor.
Fullerton and Merz (2008, p. 90) argue that the financial slump mentioned above has resulted in drastic measures to control prices and to retain customers in sports and sports product. 3M has had to control its prices due to the low prices offered by retailers of the substitute products that customers prefer. For example, FootJoy, Calloway, and Titleist even offer single gloves at reduced prices.
How the Greptile Grip Golf Glove Meets the Criteria for New Products
Every innovation in 3M must meet the three new products’ criteria, which include offering a superior value to the consumer, being a trademarked and patentable technology, and altering competition basis through the creation of differences. The product of 3M meets these requirements through various ways. To begin with, there is a lab for testing the viability of the product and its impact on consumers.
This strategy ensures that the company will only release products that it has confidence in based on their quality. Secondly, the company tests any complaints from the market in its lab to verify the claims and hence adjust them accordingly.
Thirdly, the company is also able to meet the criteria through changing of price, enhancing the benefits of products to consumers, and through advertising. Englis and Solomon (1995, p.13) reveal that the idea of scrutinising of a product is important to ensure quality and comfort of the customer. 3M evenly scrutinises every product or strategy for originality before it is adopted.
3M’s Special Promotion and Distribution Problems
3M is likely to face various problems in the market due to its lack of previous foundation in the market. Such problems are likely to be in distribution and special promotion. The first challenge is to establish a customer base. Initiating a customer base from a market with other established marketers is challenging. 3M will therefore be required to do rigorous sales promotion, which must be preceded by advertising.
It is challenging to advertise due to the high cost. However, advertising is a basic step for every business. Personal selling will also enhance reliability and dependability of the product in the market. Customers do not buy products that they do not know. The other problem is realising the areas where the products are highly required. Distribution of products involves establishing depots and retailers.
In some instances, it involves the use of sales persons to distribute them to customers. It is therefore important for the distributor to know the trends in the market and the dynamics of distribution. For instance, during some periods of the year, the demand of the products goes down in some areas as it rises in others due to adverse weather conditions.
3M will therefore face the challenge of establishing proper, clear, and effective distribution lines in the United States and other parts of the world. The greatest challenge will be venturing into areas where other competitors have already established their markets. According to O’Hara (2011, p. 10), it is challenging to develop a large market share from an already established market by the competitor.
3M’s Choice among Demand-, Cost-, Profit-, & Competition-Oriented Pricing Strategy
Since 3M is a new market entrant there is a great need to establish a good customer base for itself before even thinking of making huge profits. 3M should develop its prices following the competition-oriented pricing strategy following various reasons such as the increase in the number of companies that are targeting the same market that 3M aims to appeal.
This case would therefore mean that the market that 3M will appeal most to consumers is likely to have an advantage over others. 3M should therefore begin by evaluating the level of competition that is posed by its competitors before making a decision to alter its prices, quality of products, packaging, and other factors that appeal to customers.
It is worth researching on the strongholds of every competitor and strategies that the competitors use in such areas. O’Hara (2011, p. 11) affirm that research will enable 3M to come up with a better and more appealing brand that will enable it gain a larger market share from such areas. When a company is developing, it has to major on creating a customer base that it can sustain.
Since other companies in the competition are able to retain such customers, 3M should evaluate the viability of better methods and their ability to sustain customers. The other reason why 3M should adopt competition-oriented pricing is the increase in the number of retail outlets that sell similar and substitute products at low prices. The price of the products is likely to be inhibitive to customers.
Although 3M may have high-quality products, it may supply the product in areas where demand is high, or manufacture products that just meet its production cost to make huge profits. Customers may be prohibited from buying such products by the price.
According to Englis and Solomon (1995, p. 13), customers do price comparison before purchasing them. If the prices of Greptile Grip Golf Glove are high at 3M, customers will shift their attention to the other providers or purchase the same products from the retail outlets.
The process of considering the best price point should involve evaluation of various functions. 3M should consider prices that the competitors have placed in the market. As a new entrant to the market, 3M has to compete favourably with other players in the market. The price for the Greptile Grip Golf Glove should not be prohibitive to the market. In fact, it should be below that of its competitors since it is new.
The impact of the global recession should also be considered in pricing to make customers believe that the company and the product have come to their aid in the right time. The price should also be able to meet the technological threshold of the current times. It should be modern and adoptable to modern technology.
However, Won, Sunhwan, and Kleiber (2009, p. 12) argue that pricing should not lead to reduction in the quality of golf products. The product quality should be used as a unique identifier of 3M. In fact, the price should remain at the current range of $16.95 to $19.95 since other competitors are also within the range and that consumers will be comfortable to purchase.
Reference List
Englis, G., & Solomon, R. (1995). To Be and Not to Be: Lifestyle Imagery, Reference Groups, and The Clustering of America. Journal of Advertising, 24(1), 13-28.
Fullerton, S., & Merz, R. (2008). The Four Domains of Sports Marketing: A Conceptual Framework. Sport Marketing Quarterly, 17(2), 90-108.
Lim, C., & Patterson, I. (2008). Sport Tourism on the Islands: The Impact of an International Mega Golf Event. Journal of Sport & Tourism, 13(2), 115-133.
O’Hara, K. (2011). Building a Brand. Smart Business Atlanta, 9(1), 10-14.
Won, D., Sunhwan, H., & Kleiber, D. (2009). How Do Golfers Choose a Course? A Conjoint Analysis of Influencing Factors. Journal of Park & Recreation Administration, 27(2), 1-16.