Weekly Assignment Of Marketing & Market Economics

Prepared By : Keyur Patel

Introduction
The case study “ROLLERBLADE: ON TOP OF THE MARKET” cater the great material of examples of subject “Marketing and Market Economics”. It shows that how any product gets its popularity due to the psychological impact of human being. And how any product penetrates into the market with the help of celebrities. It also shows that how any renowned company like ROLLERBLADE find the opportunity in to the market. How any company compete with its competitor with same products. It shows the product penetration into the each and every demographic segment of market. Like the in-line skate got its popularity in Americans due to the celebrities like Madonna and J.F.K.. After that many others celebrities also follows the same sports. Which put the psychological impact on the people of the America? At the initial level the sports accepted by the people just for the fun but down the time the sports gets its position with new concept “The Health Exercise” in another segment of market which is accepted by the elder people. This life cycle of product left the opportunity behind it for the manufacturer of skating. Which was early recognised by the ROLLERBLADE? The company had engaged in the analysis of market. Company started to digging the data from market like what are the changes occurred in the customer buying style and how the product build up its value into the mind of each and every segment of market. Down the time new manufacturer of same product also entered into the market. Which put a great influence upon the leaders? But the size of market was increased day by day. By the data what company got from the market they started to modify the product. And make the product according to customer’s need. During the time company had covered the entire market with 80 to 100 % market shares. But after the new comers company like K2 the market shares of the ROLLERBLADE decrease up to 40%. This decline put the pressure on the company for examination of market closely.

Here are some of the data which company got from the market.
Increase in demand of in-line skate:

Market shares of Rollerblade:

Impact of New Company in industries:

Demographic Segment of in-line Skate:

Psychographic segment of in-line skate:

Geographic Segment of In-line skate:

Q -1) using the four categories of buying behaviour, describe the first time purchase of in-line skates and a fourth time purchase of in-line skates. How?
Consumer behaviour refers to the mental and emotional process and the observable behaviour of consumers during searching, purchasing and post consumption of a product or service.

Consumer behaviour involves how people buy, what they buy, when they buy and why they buy. It blends the elements from psychology, sociology, and economics. It also tries to assess the influence on the consumer from group such as family, friends and society in general. Factor affecting consumer buying behaviour Consumer buying behaviour is influenced by major three factors: 1) Social factor 2) Psychological factor 3) Personal factor

Consumer Buying Decisions Process

Problem Recognition
Purchase decision making process begins when a buyer becomes aware of an unsatisfied Need or problem. This is the vital stage in buying decision process, because without recognizing the need or want, an individual would not seek to buy goods or service. There are several situations that can cause problem recognition, these include: · Depletion of stock · Dissatisfaction with goods in stock · Environmental Changes · Change in Financial Situation · Marketer Initiated Activities

Information Search
After the consumer has recognized the need, he / she will try to find the means to solve that need. First he will recall how he used to solve such kind of a problem in the past, this is called nominal decision making. Secondly, a consumer will try to solve the problem by asking a friend or goes to the market to seek advice for which product will best serve his need, this is called limited decision making. Sources of information include: · Personal sources · Commercial Sources · Public sources · Personal experience

Alternatives evaluation
Consumers’ evaluates criteria refer to various dimension; features, characteristics and benefits that a consumer desires to solve a certain problem. Product features and its benefit is

what influence consumer to prefer that particular product. The consumer will decide which product to buy from a set of alternative products depending on each unique feature that the product offers and the benefit he / she can get out of that feature.

Purchase Action
This stage involves selection of brand and the retail outlet to purchase such a product. Retail outlet image and its location are important. Consumer usually prefers a nearby retail outlet for minor shopping and they can willingly go to a far away store when they purchase items which are of higher values and which involve higher sensitive purchase decision. After selecting where to buy and what to buy, the consumer completes the final step of transaction by either cash or credit.

Post-purchase Actions
Consumer favorable post-purchase evaluation leads to satisfaction. Satisfaction with the purchase is basically a function of the initial performance level expectation and perceived performance relative to those expectations. Consumer tends to evaluate their wisdom on the purchase of that particular product. This can result to consumer experiencing post purchase dissatisfaction. If the consumer’s perceived performance level is below expectation and fail to meet satisfaction this will eventually cause dissatisfaction, and so the brand and/ or the outlet will not be considered by the consumer in the future purchases. This might cause the consumer to initiate complaint behaviour and spread negative word-of-mouth concerning that particular product.

First time Purchase of in-line skates:
Problem Recognition: According to case study it is important that who is going to buy first time the in-line skate. If they are kids or teen than they are influenced by some external factors like celebrities, group of people like friends groups. And if they are adult than need would be rise due to some health purpose. Information Search: Here if the kids or teens are going to buy the skates than they will search the information with the help of their friend or they collected information through the internet or by visiting the stores. And if the adult person are going to buy the skates than they will ask to their fitness tutors first or ask to their doctors or to their friends.

Alternatives evaluation: Here the kids and teens are find the alternatives of skates according to it look and colours. Because this segment is more attracted towards the product because of its look and colours. And also toward the various shapes of skates. They try to be different from other skaters. But the other segment which is adult not concentrates much towards the colours and shapes and look. They will firs find out which one is comfortable for him/her. Because this kind of segment buy the skates for health exercises. Purchase Action: This step of buying behaviour depends on the three aspects 1) Value of Product 2) Availability of product 3) Brand. Like before purchasing the consumer will find out the value of product if it is affordable for him then only he will purchase the product. And second factor is Availability of product. Like consumer will find the nearest outlet for buy the product. And third one is branding consumer also look at the brand before purchasing. Here if kids and teens are consumer than they don’t look at for value and availability they only look for the brand. But if adults are the consumer than they look all three aspects.

Fourth Time Purchase of in-line Skates:
Problem Recognition: Here the customer purchasing the product forth time. So need must be arising due to the product get old which customers have. Or the new product must come with some additional features and functions. Information Search: Though the customer already uses the product so customer will not spend their time for searching the information. They just find out that what are the new features are include into the product. Like in in-line skate customer will find out that what company provide extra with new product. Its body material, shape which will more comfortable to the customer or powerful breaks which were not present in previous product. Alternative Evolution: Here customer knows the product. He will compare the new features with previous one. For example if ROLLERBLADE introduce new fibre body skates in to the market than customer will compare that either new one is comfortable or old one? Which contain less weight? What are the changes in quality of wheel? Customer will also see that according to him need is the right product for him or not? Might be product contain some extra features which will not get fit for the adult customer. So again its depend on the segment of customer. Like kids and teens already have in-line skates but company introduce

new skates into the market than this segment will buy new product without any comparison. But if actual need is there than the consumer will decide which product to buy from a set of alternative products depending on each unique feature that the product offers and the benefit he / she can get out of that feature. Purchase Action: Here fourth time purchase action will depend on the previous purchase. If customer is satisfied with brand which he purchased previous than customer will purchase same brand again. It also depend on the value and availability of product. Like for Example if customer previously purchase ROLLERBLADE skates and satisfied with its product than he will purchase the same brand again. But if he is not satisfied with the brand than he will switch to another brand like K2, ADDIDAS, NIKE.

Q -2) How Might the entry of Reebok and Nike affect Rollerblades position in the inline skating industry? How could Rollerblade respond to the marketing efforts of these competitors by proper market segmentation?

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