Week 1

    This week we learned the essential components of marketing and why it is important in the business world. Professor Spotts asked us what our first thought is when we hear the word "marketing." I instantly said advertising. As someone who has never taken a marketing class before, that is immediately what I think of. In reality, there is so much more to learn about marketing. According to AMA, the official definition of marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for society.
         
      After reading the chapters in our textbook, I learned key terms that were necessary for success in this class, but I didn't truly apply the marketing terminology until we watched a video clip from Shark Tank about Kalyx Technologies. Kalyx Technologies presented to the sharks their innovation of a new sports bra that had special configuration in which it provided the level of support a woman needs based on their extremity of activity, and also gave a stylish spin with zero pain. The founder of the company discussed how she is a former professional golfer, and has always experienced poor and painful sources of support during her athletic career. Sports bras are huge in the market, and have lots of competition. Nike, Champion, Under Armour, and Adidas are companies that have developed a reputation in the market for high quality products designed for consumers. Additionally, lingerie stores such as PINK and Aerie have jumped onto the bandwagon for providing women with new technologies of sports bras.

     Robert Herjavec, a shark on the show Shark Tank, simply said to the founder, "How in the world are you going to compete?" All of these big name brands have already established themselves as functional and reasonably priced, so how is Kalyx going to make people want to buy their product instead of Nike or Under Armour? In other words, Robert wants this company to explain what type of competitive advantage they have over other brands and companies. Competitive advantage is defined as a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition. There are various types of competitive advantage. For instance, cost is something that frequently sets products and companies apart from one another. If a company has a high quality product and a low cost compared to competitors, then they will have the cost competitive advantage. Kalyx Technologies did not mention the prices of their product, especially since they did not even have sales yet, so cost was not what set them apart from other companies. Niche competitive advantage is the advantage achieved by a firm when they seek to target and effectively serve a small segment of the market. Because the sports bra is an existing product on the market, Kalyx Technologies' main goal should be market penetration. They want to make their brand superior to others but they first need to do that by introducing their own name into the market, and then explain why they are different or better than their competitors.

     Kalyx Technologies is considered to have a niche competitive advantage because they address an issue seen by multiple women around the country, and target that specific part of the market for their business. This is their competitive advantage, but is it strong enough? According to the elements of value pyramid, Kalyx Technologies would have functional value because it avoids hassles for women utilizing sports bras. Due to the pain and support issues that other sports bras cause on women, it is seen as a problem that they want to address, but is not seen as a catastrophic for most people. Most women believe that the sports bras present in the market now might not be perfect, but they get the job done. Why pay more the reinvent your closet when it isn't life threatening if you do not have a more supportive or painless bra. Personally, I have already spent so much money on sports bras. These are not cheap, and I would really need to be in a lot of pain or  have a lot of problems with the ones I own now to switch over to a completely new brand.

     Some people may want to address this issue, as Kalyx Technologies does, but it is not a primary concern for most women. It would be seen as a luxury to improve from a bra that already serves its purpose, so many people might not buy the product. There is not a huge need for this product, although it would be convenient. That is why it is ranked so low on the elements of value pyramid.

     The best idea for Kalyx Technologies is to start small. Market penetration begins with a smaller scale business to see if consumers see this as a useful product, if it is worthwhile, and if the company will make enough sales to even function as a business. In my opinion, I feel like it is a complete waste of time to come onto Shark Tank to show your product when you have not even sold it or started a small business with the product yet. Kalyx Technologies does have dedication, commitment, and a niche competitive advantage, but honestly I do not think that will be enough for them to compete among Nike, Under Armour, Adidas or even lingerie stores due to their lack of sales and experimentation of having this product out on the market. Without introducing the products to consumers, it is too soon to tell if they will be successful, regardless if they have certain values that their competitors lack.