TrackMe, Shoes

Nike’s objective with the new product, TrackMe Shoes, is to create profit and become a leader in the wearable fitness tracker industry. Primary and secondary research has shown the growth and value of the market is factored by the availability of technology-based fitness device, the increase in medical monitoring recommended (i.e. glucose levels, diabetes…) and the tracking of health and fitness activities.  This market is estimated to be valued at 18,709.2 million dollars by the end of 2016 and is expected to grow at a CAGR of 15.8 percent in terms of value over the forecast period (FMI, 2017). Research has shown how innovation has been at Nikes core focus which keeps it ahead of the competition such as Arion and Under Armor pushing for growth and expansion in the US since the US is Nikes core market. By targeting the appropriate audiences (demographics, psychographics, etc.) through primary and secondary research Nike can make decisions that will further support the objectives.

Health and fitness continue to power through todays trends as consumers become more aware and accountable for their health. Health issues, such as obesity, diabetes, cancer, blood pressure and other ailments such as body ache, asthma and the like, are increasing rapidly in developed countries such as the U.S.. Wearable fitness trackers enable end users to track their fitness parameters and analyze & record their activities, calories burned, heart rate, etc., which is driving the demand for wearable fitness trackers in North America. Possible implications include the actual use of consumer wearables within a clinical population remaining limited. Many wearable fitness devices are still in the early stages of development, have not been approved for medical use, and have so far been explored predominantly within an academic research rather than a real-world context.

Wearable fitness devices such as TrackMe Shoes raise additional questions concerning the impact on users’ health and well-being. Currently, wearables exist within a “grey area” regarding user safety. Legal trouble could come from people that may become over-reliant on automated systems that provide a false sense of security or fuel a self-driven misdiagnosis (NCBI, 2019). Nike will need to market TrackMe Shoes without giving consumers false pretenses about what the device should be used for. Devices that are marketed under the premise that they will help improve general health and fitness can cause legal issues for Nike or consumers (NCBI, 2019).

Nike has many financial resources that help prevent many limitations smaller companies and other competitors may face. A limitation Nike may face when marketing would be due to the fail of Nikes first wearable device product, FuelBand. This can create hesitations from consumers in trusting the product enough to create value.

Resources

Piwek, L., Ellis, D. A., Andrews, S., & Joinson, A. (2016, February 2). The Rise of Consumer Health Wearables: Promises and Barriers. Retrieved February 16, 2020, from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4737495/

Wearable Fitness Trackers Market. (n.d.). Retrieved February 16, 2020, from https://www.futuremarketinsights.com/reports/wearable-fitness-trackers-market