Company Background
Running shoes are the only protective equipment runners have to safeguard themselves from injury. Running shoes not only provide substantial midsole foot cushioning but also offer arch support, help prevent injuries, and can promote improved athletic performance. On proposes several categories of running shoes, made for each customer’s unique and specific needs. As such, road running shoes are created to “run easy on asphalt and conquer concrete… [and] … to handle hard surfaces” (On, n.d.-a, para. 1). The lightweight trail running shoes utilize a superior grip and cushioning, making it easier for people to cover long distances (On, n.d.-c).
The unique features of On’s running shoes product comprise the application of CloudTec for maximum comfort and energy, as well as lightweight and enhanced support. Moreover, CleanCloud technology is used to convert carbon emissions into materials for the described running shoes (On, n.d.-a). The product is shipped to over 50 locations worldwide, and transaction tracking details are provided. The company pays shipping expenses and customs fees, while guaranteeing refunds (On, n.d.-b). Thus, running shoes are a high-quality product for multiple running enthusiasts and professionals.
The company that produces the described running shoes has a short yet eventful history. As the firm claims, “On was born in the Swiss Alps with one goal: to revolutionize the sensation of running. It’s all based on one radical idea. Soft landings followed by explosive take-offs” (On, 2022). On currently has offices in the United States, Japan, Australia, and Brazil, complementing its European headquarters in Zurich. Global technological and design awards have been given to On for its products. Thus, despite being a relatively new company, On has already become a popular brand in many countries worldwide.
Product Life Cycle and Promotion Strategy
A product life cycle (PLC) is a crucial phenomenon in the field of marketing that companies extensively use. A product life cycle refers to the period of time that lasts from the launch of a product when it enters the market to its discontinuation of production and removal from the shelves. Moreover, there are several important stages involved in every product’s life cycle. Essentially, the first step is introducing the product to the consumer, which is followed by its growth in demand (Kalvani, 2021).
Next comes maturity, characterized by the emergence of competitors and market saturation, which ultimately leads to a decline marked by a decrease in demand. When applying the PLC to the running shoes from On, it is possible to state that the current product is in the growth stage. The company is still gaining its share of the market as more people discover the brand’s running shoes. Since the product utilizes innovative solutions, it has few competitors, which facilitates growth in demand for the shoes in question.
The information about the product being in its growth stage should directly affect the promotion of the running shoes. The growth stage no longer makes it relevant to use marketing to get consumers to try the product. Instead, the goal of promotion should focus on encouraging people to stick with the product and prefer it over other alternatives. Thus, the most effective promotional tool at this stage is active advertising, which highlights the advantages of On’s running shoes by comparing them to other shoes on the market.
Factors Affecting Demand and Marketing
Many factors can shift demand, and consumer tastes and preferences are among the most significant of them. Consumer tastes and preferences refer to the current trends that consumers follow. Thus, whenever certain trends change, consumer tastes shift, making numerous products irrelevant. For instance, in the footwear industry, Ugg boots were a popular product in the 2000s; however, as consumers’ tastes shifted, their popularity quickly declined (Bobb, 2017). The company needs to capitalize on current consumer preferences for an active lifestyle and promote running shoes as the ultimate footwear for exercise.
The demographic is another major factor that can shift the demand and leave a product without customers. The demographic factor refers to different age groups among consumers. For instance, due to the lower birth rate, the population of advanced economies is largely aging; therefore, a decline in certain services, such as education, can be expected since there are fewer younger people. The demographic factor can help the company create promotional content that reflects demographic changes by utilizing images and videos that market the shoes to the older generation.
The economic factor is also extremely important for promoting the current product. The economic factor refers to the welfare of the population, based on aspects such as unemployment levels and consumer confidence. The rise in the number of affluent individuals has increased the demand for luxury goods. The company can capitalize on this economic trend in its marketing by creating content that portrays running shoes as a lifestyle choice for affluent individuals who appreciate high-quality products. The company can target affluent consumers in its promotional materials to generate more sales.
The natural factor plays a major role in the demand dynamics and affects it to a considerable extent. The natural factor refers to the aspects concerning the environment and ecology. Climate change has significantly impacted demand, as it has compelled many people to switch to purchasing eco-friendly products made sustainably and in accordance with environmental standards (He et al., 2019). The company can promote the running shoes as a sustainable product, as their manufacturing process does not contribute to climate change. Alternatively, the company can openly outline its commitment to zero-emissions production.
The technological factor has been one of the most crucial over the past decades. The technological factor refers to advancements in technology and science that generate innovation. For instance, the widespread use of the Internet has increased the demand for social media and similar platforms where people can communicate. The company, therefore, needs to promote the product online on various websites, such as Instagram, to attract the attention of Internet users. For example, the company can make certain famous social media personalities its ambassadors.
The political and legal factors remain among the most significant elements that can substantially impact demand. They refer to the laws and policies adopted by countries or specific events concerning the nation’s political system. For instance, President Trump introduced protectionist tariffs on foreign goods, which increased the demand for local products (“Trade wars,” 2019). Since On is a Swiss company, it must consider that in some countries, it will need to compete against companies protected by local laws. Thus, the company must understand that in some countries, its shoes may cost more than local alternatives due to tariffs, and it needs to promote them as a premium product.
The social and cultural factors are key to understanding how demand works in many situations. Essentially, the social/cultural factor refers to the influence of society on the market. For instance, the recent trend for more diversity has increased the demand for products from brands that openly demonstrate their commitment to equality (Layton et al., 2018). Thus, On should feature models of different ethnic and religious backgrounds in its promotional materials to attract the attention of clients to satisfy their demands.
Any sphere implies having a variety of competitors, who all aspire to become leaders in their industries and capture as many customers as possible. The force of competitors refers to companies that can cause a significant change in demand due to various actions, including the introduction of low-cost alternatives. For example, Nike, one of On’s key competitors, is continuously innovating and utilizing new materials in its products. As a result, Nike may discover a new, innovative solution for running shoes, which will lead to a change in demand and encourage more people to purchase the company’s products. Therefore, the company must be prepared for such a situation and guide it to write a promotion that covers all the advantages of its running shoes.
Substitute products are partially similar to the factor of competitors. At the same time, the substitute products factor refers to goods that can potentially replace other products by providing consumers with certain advantages. Yet, running shoes are a product that other types of shoes cannot replace since they possess unique qualities. Therefore, the factor of substitute products is not pertinent to the current case of On’s shoes.
The running shoes sold by On are a technologically advanced product that is currently in its growth stage. To succeed, On needs to ensure that its running shoes take into consideration all of the potential demand shift factors. One of the key factors currently affecting demand in the footwear sector is climate change and sustainability issues; therefore, the company needs to make its products eco-friendly to attract more clients.
References
Bobb, B. (2017). The Ugg boot craze of the early 2000s, as remembered by Vogue. Vogue.
He, B., Shao, Y., Wang, S., Gu, Z., &, Bai, K. (2019). Product environmental footprints assessment for product life cycle. Journal of Cleaner Production, 233(1), 446–460.
Kalvani, R., Sharaai A., &, Abdullahi, I. (2021). Social consideration in product life cycle for product social sustainability. Sustainability, 13(20), 11292–11295.
Layton, A., Robinson, A., &, Tucker, I. (2018). Economics for today (6th ed.). Cengage.
On. (2022). About. Web.
On. (n.d.-a). Road running shoes.
On. (n.d.-b). Shipping, tracking and delivery.
On. (n.d.-c). Trail running shoes.
Trade wars, Trump tariffs and protectionism explained. (2019). BBC.