Scenario
Brand N has dominated the North American market since the 1970s. Brand U, strong in its home country, entered Spain in 2006 but remains largely unknown among young consumers—only 1% recognize it, compared to 99% for Brand N. While 43% of young Americans know Brand U, in Spain it is mostly recognized by those over 35, which poses a challenge for expanding its appeal among younger demographics. Among Spaniards familiar with Brand U, their top sports interests differ: 21% prefer soccer, followed by training (12%), swimming (9%), basketball (7%), fitness classes (6%), yoga (5%), and both cycling and paddle (4% each).
Analysis of Company U’s Target Audience in Spain
Company U’s target audience analysis in Spain reveals a strong connection with an older demographic over 35 years of age, differing from its younger audience base in other countries. To this end, the company is now repositioning its brand towards the 13 to 34 age bracket – a dominant trendsetter of the athletic wear market. It will make the brand more consistent with the dynamics and aspirations of its younger customers. In appealing even to this more youthful demographic, Company U hopes to enhance immediate sales to get brand loyalties from these people and make a lasting impression on the up-and-coming generation of consumers.
Market Segmentation Strategy for Company U in Spain
Spain has quite diverse consumer landscapes, with stores catering to all social classes, thus being relevant in using a market segmentation strategy in the case of Company U. They use psychographic segmentation based on lifestyle, attitudes, and interests, which culminates in targeting specific markets. Amongst the products for which such an approach is relevant is athletic wear. Company U targets active lifestyle enthusiasts, people conscious about their health, and youth inclined in the spirit of sport associated with fitness activities. Through such a focused approach, a company can develop marketing strategies and products or services that meet these segments’ unique needs and thus increase its brand relevance and visibility in Spain’s market.
Positioning of Company U in Comparison to Competitors
Brand awareness is one of the fundamental factors in positioning Company U against Brands A and N among competitors in the Spanish athletic wear market. Essential factors that remain include perception of quality, price, and product range. If a positioning map were to be constructed using these variables, then Brand N would be one of the market leaders with high brand awareness and perceived quality at often premium prices.
On the other hand, Brand A is mainly known for its quality and variety, which doesn’t discriminate against many customers. Brand awareness for Company U, a newcomer in Spain, is lesser. Still, it can uniquely position itself by offering high-quality products at competitive prices, which would be very attractive to consumers who value both (Figure 1). By lining up its offerings with the preferences of younger audiences, Company U could find a unique position in the market and improve its market presence in Spain, primarily distancing itself from established Brands A and N.
Understanding Young Spanish Consumers
Venturing into the young Spanish consumer base is a success for Company U. They are good fans of sports, gym classes, cycling, and most importantly, football, which means a lot of activity as well as health awareness. With their fashion choice moving towards athleisure wear combining comfort, functionality, and style, it can be used for fitness and casual wear.
Besides the above, there is a drift from brick-and-mortar stores to online shopping, driven by convenience and variety. This shift presents an opportunity for Company U to enhance its online presence and digital marketing. Company U can better its products, marketing, and sales strategies by profoundly understanding these preferences – in sports, fashion, and shopping channels – tapping into young Spanish audiences to increase brand engagement and loyalty.
Market Research Design
Company U’s market research in Spain also identifies youth sports and fitness trends and shopping preferences. This data is critical to Company U’s fine-tuning of its products, marketing, and brand positioning with this audience. Also, this is designed to measure the brand’s awareness and perception among young Spaniards, comparing it against the competitor’s Brands A and N. The results from this research will be applied to identify strategic opportunities and areas in which aspects need improvement in the Spanish market.
The primary tool for executing the research objectives is a survey. It will cover quantitative and qualitative questions to capture detailed insight into consumer behavior regarding buying frequency, factors influencing buying choices, sports preferences, and shopping channels. Hypotheses to be tested are the preference for online shopping among young Spaniards and the brand awareness gap of Company U compared to competitors. Secondary data from industry reports, market studies, and social media trends will complement the survey findings and provide an overall view of the market and consumer preferences within Spain.
Research Questionnaire
Demographics
- Age (Please select your age group):
- 13-17
- 18-24
- 25-34
- Gender:
- Male
- Female
- Prefer not to say
Location (Please select the region you reside in)
Sports and Fitness Activities
What sports or fitness activities do you regularly participate in? (Multiple choice)
- Soccer
- Fitness Classes/Gym
- Cycling
- Other (Please specify)
Athletic Wear Preferences
- On a scale of 1 to 5, how important is brand reputation in your athletic wear purchases? (1 being ‘Not important at all’ and five being ‘Extremely important’)
- What are your top three criteria when selecting athletic wear? (Please select three):
- Comfort
- Style
- Price
- Brand
- Durability
- Other (Please specify)
Shopping Habits
- How often do you purchase athletic wear? (Single choice)
- Once a month or more
- Every 2-3 months
- Twice a year
- Less than twice a year
- Describe a recent experience of purchasing athletic wear online. What did you like or dislike about it? (Open-ended)
Brand Awareness and Perception
- Are you familiar with Company U’s athletic wear? (Yes/No)
- If yes, how would you rate the quality of Company U’s products? (Scale from 1 to 5, with one being ‘Poor’ and five being ‘Excellent’)
- What improvements or changes would you like to see in Company U’s products? (Open-ended)
Survey Design for Market Research
Developed to understand in detail the preferences and behaviors of young consumers, a market research survey in Spain by Company U seeks to provide add-on insights for management at the United States headquarters. The questionnaire uses various questions: closed-ended questions for demographic data, Likert scale questions for attitudinal data on the garment category, and open-ended questions to acquire more profound insights. It will involve such survey questions as the importance of brand reputation, top criteria for picking athletic wear, and experiences of online purchases.
The survey shall be conducted through digital distribution through social media platforms and email, targeting the take-technology-up population quickly to cover as many regions as possible. Secondary sources will be consulted to supplement the primary data from the survey. These include industry reports, existing market studies, and analyses of social media trends relevant to the athletic wear market in Spain.
Population and Sample Size Calculation
The target population under this study, targeting the expansion of Company U to Spain, shall consist of Spanish individuals aged 13-34 years, which the athletic wear caters for as well. Calculating an optimal sample size is necessary to ensure an adequate representation of the sample frame. In the present research, a confidence level of 99% and a maximum error margin of 4% have been selected. To calculate the optimal sample size for the market research in Spain, with a 99% confidence level and a 4% margin of error, the simplified formula for a large population (n = (Z2 * p * (1 – p)) / e2) was used. The resulting sample size is approximately 1037 participants, providing a statistically significant representation for the study.