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Situational Analysis and Market Research for The Nike Sustainable Yoga Collection

The Yoga mats are fabricated mats that are used in aiding the practice of Yoga to avoid feet and hand slipping during the practice. They are used both for Yoga Studios and at home during the practice. Yoga is among the most effective ways of maintaining body health and keeping the right mind.

Situational Analysis

The Yoga mats are made of various materials and comes in different types to offer comfort while practicing Yoga and serves as an important accessory for yoga practitioners globally. The rise in health consciousness and the prevalence of obesity among Yoga practitioners have been the major factor that has driven the growth of Yoga market (Lewis, 2008). Obesity has been linked with a number of health disorders or issues such as hypertension, diabetes, and cardiac arrest. People tend to practice Yoga as it has several effects such as reducing weight, improving blood circulation, and reducing stress. Therefore, it is essential to continually support the growth of the Yoga mat market (Jason, 2014). Arguably, manufacturers have focused on improving the manufacturing of Yoga mats that are more convenient with enhanced comfort and with different material selection depending on the consumer demands.

Demographics

The Yoga mat market is defined by the end-user, material, region, and distribution channel. On the basis of the end-user, it is evident that the household owners have had a significant share in the global Yoga mat market while the yoga fitness clubs are expected to increase in number in the near future. Yoga practices have been categorized into psychosocial status, socio-demographics, as well as health and well-being (Park, Braun, and Siegel, 2015). Characterizing the Yoga practitioners in terms of sociodemographic, emotional well-being, and psychological factors are essential in developing yoga interventions and tailoring the products to varying groups, thus suggesting future research directions. Yoga practice is greater among women than to men. The Male Yoga practitioners have been considered to be about 60 percent less likely to be married or have partners (Park, Braun, and Siegel, 2015). The categories in the Yoga experience levels include beginners, brand new, intermediate, and advanced yoga practitioners.

Considerably, most of the Yoga practitioners exercise Yoga either at home or in Yoga Studios. There are new trends on the rise for Yoga practitioners with more demand for experimental settings and the incorporation of health and wellness in the Yoga events and classes. With reference to age, a greater number of middle-aged practitioners. For instance, among the United States Yoga practitioners, 26 percent are under 30, while 23 percent are aged between 40-49, 20 percent aged between 50-64 years, while 4 percent are aged 65 years and above (Park, Braun, and Siegel, 2015). Yoga use has related to high socioeconomic status and has been linked with psychological factors such as mindfulness and coping. Yoga practitioners have also related to health behaviors with most of the Yoga practitioners focusing on health and well-being.

Pricing

Manufacturers are being exposed to risks resulting from price changes in raw materials. There has been inconsistent pricing of the recyclable and natural materials in the manufacture of yoga mats. Ideally, the changes in the pricing of raw materials have considerably influenced the profit margins of the Yoga mats. The pricing of the Yoga mat has incorporated the cost of raw materials, transportation, and production costs. Considerably, the cost of recycled materials is falling since there has been an increase in sustainable products in the market. The price of the matt being produced is usually worth about £30.

The price is competitive and undercuts the prices of other manufacturers. The thermoplastic elastomer needed for a yoga mat is 0.5kg. The current price of a thermoplastic elastomer for 10,000 kg is £660. For this much material, 330 mats can be produced, given any errors, £660/300= £2.20 per mat. Production costs will be around £10 per mat given labor and machine costs. Considerably, the cost of the supply chain might be influenced by the current pandemic, Covid-19. Relatively, while pricing, the retailer costs have to be incorporated in order to ensure effective pricing and to remain competitive in the market.

SWOT Analysis

Strengths

Brand awareness: Nike is among the leading companies in apparel sales, with most consumers having greater brand awareness, which could bridge the competency gap in the market.

Global presence– Nike has a wide and strong supplier base, which will enable meet the consumer demands efficiently with reduced operational costs.

Product sustainability– Most of the Yoga practitioners are aware of the benefits of sustainable and environmentally friendly Yoga mats. Therefore, most consumers are shifting toward the use of sustainable Yoga mats.

Research and development– Nike has a strong research and development team that has fostered the use of more sustainable materials such as natural and recyclable materials. This has made the company popular and has attracted more customer attention.

Full control of production- Nike has full control of its product, which improves product quality.

Weaknesses

Consumer demographics– Since most of the Yoga practitioners are female, there may be a misunderstanding that the product is only focusing on female consumers as their target market.

Opportunities

Market Growth- Yoga has massively grown over the years with more passionate Yogis globally. The facts show that it has many benefits, and with the spending on yoga products increasing, it shows a growth in the Yoga practice. Yoga mat sales have continued to grow due to the rising awareness of Yoga in the world.

Distribution and advertising opportunities- Through the online and physical presence, there are increased opportunities to reach the consumers. The online portals have ensured reasonable and discounted prices for the mats, which has intensified the demand.

Supply chain opportunities- Nike has an effective supply chain system that maintains the supply of raw materials and the distribution of products to the market.

Product development- Yoga enthusiasts are focusing on spending on comfortable, healthy, and environmentally friendly products. There is a growing demand for sustainable and eco-friendly Yoga accessories such as Yoga mat due to increased market growth for Yoga practitioners globally.

Threats

Competition– Due to the increased demand for Yoga accessories, multinational and small firms have increased their production leading to high competition in the market for Yoga accessories. There is a possibility that the competitors can have similar products due to the increased demand for sustainable products by the consumers.

Competitor

There is a high competition in the manufacture of sustainable Yoga mat since most the Yoga mat manufacturers are shifting their investment towards lightweight and eco-friendly Yoga mat. Through the use of thermal plastic elastomer as alternatives of PVC, they have offered eco-friendly and biodegradable solutions (Advantage Environment, 2013). The main competitors in sustainable Yoga mat are TALA and Adidas. TALA is a female fashion retailer that deals with upcycled clothes. The brand aims at creating ethically produced products that are 100% upcycled. On the other hand, Adidas is a global retailer in apparel and accessories. Adidas has worked consistently over the years to become a sustainable brand with wide ambitions, such as phasing out the use of virgin plastics and increase the use of recycled clothes to extend their sustainability efforts in the world of sustainable practices. Considerably, the leading yoga mat manufacturers are joining for collaborative product development with the aim of developing high-quality yoga mats (Parsley, 2018). The Yoga mat manufacturers have increasingly integrated customer co-creation concept in their production to offer new prototypes that fulfill the demands of the consumers.

Market Research

Size, Growth, and Trends

The Yoga market mat has been valued at $13.3 billion in 2018 and is forecasted to reach $23.2 billion by 2026, which registers growth in the Yoga mat market (Statista, 2020). Considerably, there has been an increase in the volume of consumption of Yoga mat. For instance, in the United States, there are more than twenty million Yoga exercises (Cartwright, 2020). There are more than 300 million Yoga practitioners in the world, with 36 million Americans practicing Yoga. The number of Yoga practitioners at the age of 50 have tripled over the years with stress relief and flexibility being the most popular reasons for practicing Yoga. With the development of countries, there is a growth in the Yoga market with United States recording more than 6,000 Yoga studios (Grate, 2019).

Figure 1: How Popular is Yoga; source, (Grate, 2019)

The graph above indicates how popular is Yoga and the increase in the number of people that are concern with the practice of Yoga (Figure 1). The Yoga market, up to 2018, was worth over £875 million. With the increased levels of interest in Yoga, it is evident that there will be a clear expansion of Yoga practices, thus considerable market growth.

The latest trend in the Yoga mat market is the increased focus on the use of sustainable raw materials. Most of the Yoga mat manufacturers are focusing on recyclable and natural raw materials for the Yoga mat to prevent a negative impact on the environment. The Yoga online shopping and go green industries will continue to grow with reference to the information and statistics that are available. Green businesses are considering becoming popular with a high growth rate annually. Online shopping, on the other hand, is growing tremendously, with the industry expected to double due to the increased number of internet users. As the industries continue to thrive, the Yoga accessories and supplies will continue to be in high demand. Therefore, the market for Yoga products is expected to grow as people become more aware of sustainable and ecofriendly Yoga mats and their availability online.

 

 

References

Advantage Environment. (2013). ‘Thermoplastic elastomers – flexible and recyclable,’ [Online] Available at http://advantage-environment.com/buildings/thermoplastic-elastomers-flexible-and-recyclable/

Cartwright, T. (2020) ‘Yoga Practice in the UK.’ [PDF] BMJ Open. Available at: https://bmjopen.bmj.com/content/bmjopen/10/1/e031848.full.pdf

Grate, R. EventBrite. (2019) ‘Yoga Statistics: Surprising Data on the Growth of Yoga [Infographic]’ [Online] Available at https://www.eventbrite.com/blog/yoga-statistics-demographics-market-growth-trends-ds00/

Jason, H. (2014). Sustainable yoga apparel. Available at: https://www.theseus.fi/handle/10024/71437

Lewis, C. S. (2008). Life changes and wellness: Meaning and motivation in the ‘yoga market.’ Sport in Society11(5), 535-545. Available at: https://www.tandfonline.com/doi/abs/10.1080/17430430802196538

Park, C. L., Braun, T., & Siegel, T. (2015). Who practices yoga? A systematic review of demographic, health-related, and psychosocial factors associated with yoga practice. Journal of behavioral medicine38(3), 460-471. Available at: https://www.researchgate.net/publication/271599510_Who_practices_yoga_A_systematic_review_of_demographic_health-related_and_psychosocial_factors_associated_with_yoga_practice

Parsley, A. Emerald Insight. (2018). ‘Sustainability and Company attractiveness’ [Online] Available at https://www.emerald.com/insight/content/doi/10.1108/SAMPJ-03-2017-0032/full/html

Statista. (2020) ‘Estimated Growth of Wellness and Fitness Market, 2015-2020’. [Online] Available at https://www-statista-com.ezproxy.lancs.ac.uk/statistics/641365/uk-estimated-growth-of-wellness-and-fitness-market-by-category/

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Situational Analysis and Market Research for The Nike Sustainable Yoga Collection . (2022, July 13). Essay Writing . Retrieved September 29, 2022, from https://www.essay-writing.com/samples/situational-analysis-and-market-research/
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Situational Analysis and Market Research for The Nike Sustainable Yoga Collection . [online]. Available at: <https://www.essay-writing.com/samples/situational-analysis-and-market-research/> [Accessed 29 Sep. 2022].
Situational Analysis and Market Research for The Nike Sustainable Yoga Collection [Internet]. Essay Writing . 2022 Jul 13 [cited 2022 Sep 29]. Available from: https://www.essay-writing.com/samples/situational-analysis-and-market-research/
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