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Running Head: MARKETING 1
MARKETING 2
Marketing
Students name
Institutional affiliation
Description of the company
XY is a new shoe company in the United States, and it has been aggressive in producing, marketing, and distributing light women’s athletic shoes. The owner of the company noted that they are high cases of obesity in the United States. Based on various medical reports is that doctors are advocating for body exercises which include jogging and running. Due to such reasons, the XY Company owner becomes proactive and starts designing light athletic shoes, particularly targeting women suffering from obesity. The company has been active in marketing its product in Florida since the state has a higher number of obesity cases than many other states in the united.
Recently, the company has acquired a large market share, mainly due to the pandemic. To keep the body fit and mitigate the advanced effect of the COVID-19: the healthcare sector has advised its citizens in the United States to take part in body exercise to improve body immunity. People suffering from obesity have a higher chance of death in contracting the virus than people with normal BMI. However, the company faces a substantial financial crisis since it depends on loans rending institutions in the country. Lacks of enough resources make the company market its product just within the Florida state. Production of a variety of products and investing n other parts of the country is the company’s long-term goal.
Market volume
Based on the current research, companies that major sports shoes can generate an annual income of over twelve billion US dollars. Based on 2020 statistics, sports shoes generated fourteen billion in the United States (Fernandes, Gama, Dourado & Souto, 2019). Based on the XY Company is clear that the company was proactive in identifying the large market. The market will still increase; more obese people, particularly women, are still purchasing sports shoes as doctors recommend embracing body exercises.
Market value
Market value is also known as Open Market Valuation (OMV); it is the total value of return if companies in a particular field were to saturate through the provision of products based on the needs of customers. According to Fortune Business Insight is the sports foot wearing market is still unexploited. Based on 2020 statistics is the market value was 102.76 billion USD in 2019. From the researchers’ point of view, XY Company has a great chance of utilizing the marketing strategy and maximizing its profit from unexploited markets.
Market need
Most of the people in Florida and others in the United States are aggressive in fighting and reducing the chance of contractive preventive, chronic illnesses, and diseases. The needs of the market are to purchase products that will reduce conditions such as obesity. The rate of obesity in Florida is 30.7 %, and the obesity rate in the national average is 30.9%; it is an indication people who are advised to participate in body exercise is almost distributed evenly across all states (Liu, Wu, Ng, Zauber, Nguyen, Song & Cao, 2019). Based on XY Company, this is a gap in the market. Therefore, society’s need is to acquire more sports shoes to enable them to participate in morning walking and jogging. Women are the most vulnerable people who have Diabetes. Therefore, are more likely to buy sports shoes than other population.
Competition
XY Company faces stiff competition in the United States market from major show producers such as Nike and Adidas. The companies are a threat to XY Company since they have a considerable market share in the country. The large market shares, particularly in the athletic industry, and due to this reason, the competitors can benefit from the advantages of the economics of scale. Therefore, Adidas and Nike can minimize production costs and sell their products at a relatively low price, thus attracting and retaining more customers. XY Company is selling its products at a relatively high price since its cost is still very high. In the future, the company should be proactive in devising measures to market its product to other states and probably attract more customers and maximize the profit.
Regulation
XY Company is regulated by the Shoes and Footwear Regulations in the United States. The certificate of the regulation based on the Occupational Safety and Health (Act OSH Act) has enabled the company to attract more obese women to buy its products (Kerin, 2016). Certification based on the (OSH act) assures the people of Florida that the company is producing shoes that are safe for human health. Based on the 29 CFR 1910, samples of the company’s product have been tested and safe. The company has labeled its company and product as (XY brand) to indicate that it is protected from brand infringement.
Conclusion
XY Company is an infant industry struggling to cope with stiff competition from giant companies such as Adidas and Nike, who have been in the industry for years. The main challenge of XY Company is the financial crisis. Most of its financial resources are debt from rending institutions. Although the company is profit-oriented, it has an excellent strategy to assist people suffering from obesity. Therefore, healthcare institutions under the Florida States and federal should support the company financially to enable the company to achieve its goals that will play a significant role in controlling obesity in the USA.
References
Fernandes, M., Gama, M., Dourado, F., & Souto, A. P. (2019). Development of novel bacterial cellulose composites for the textile and shoe industry. Microbial biotechnology, 12(4), 650-661.
Kerin, T. (2016). The evolution of process safety standards and legislation following landmark eventswhat have we learnt?. Process Safety Progress, 35(2), 165-170.
Liu, P. H., Wu, K., Ng, K., Zauber, A. G., Nguyen, L. H., Song, M., & Cao, Y. (2019). Association of obesity with risk of early-onset colorectal cancer among women. JAMA oncology, 5(1), 37-44.
