Nike and adidas are under armours main competitors, and act as its main threat. Market segmentation, market target and market positioning. Segmentation and target market paper nike introduction nike, inc. The main nike brand is most targeted towards athletes, selling related products such as. Nike is a major publicly traded sportswear, footwear and equipment supplier based in the us which was founded in 1962 originally know as blue ribbon sports. This is because 17 years are players that are more independent and are therefore more able to choose their own brands. The history of nikes marketing strategy is interesting in itself. The just do it campaign helped nike to increase its market share. Market segmentation, market target and market positioning of nike. One of the best known models is the four ps, which helps you define your marketing options in terms of product, place, price and promotion. Targeting is the important aspect of the marketing strategy, especially when a company is in different businesses. Nike is the worlds largest supplier of athletic shoes and apparel and a major manufacturer of sports equipment. Exclusive report 50 pages on marketing strategy of nike can be downloaded here.
Nike produces a wide range of sports equipments such as running shoes. Nike has a highend consumer market with high disposable income asking for better service and satisfaction as their target market. Nike specialises in sports wear such as trainers, tracksuits, bags etc. Nike targets women marketing communications zabanga. Nike is the largest seller of athletic footwear and apparel in. It is essential that nike provide products to our consumers that are innovative, inspiring, and safe. Nike hasbeen involved in number of ecofriendly and social drives to show its concernstowards the well being of the social and individual personality. Nov 05, 2014 market segmentation major consumer market comprises of sportspersons 6. However, the industry has been stagnant for years, and nike, along with its com petitors, is looking for new growth opportunities and areas where the company can gain market share and attract firsttime customers. How nikes marketing strategies helped it become a global. Nike targets middle and high segment customers of all age groups and does not set a bias for any group.
Nike, an amercian multinational corporation, established in the year 1964, is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services. Get an answer for what is the projected target market of nike. Therefore, this study focuses on a target market, generation y, which uses the theory of reasoned action as a theoretical framework of this study. And the athletes helped nike design and market the products and brand that changed. The marketing mix helps you define the marketing elements for successfully positioning your market offer. The company nike was founded in 1964 by bill bowerman and phil knight who had located their headquarters near beaverton, oregon. I worked at nike for a couple of years though it was back in 2000, so take that for what its worth and the answer is that it varies wildly by silo. Nike is the largest seller of athletic footwear and athletic apparel in the world acclaimed. How do the elements of the website reflect nikes target market.
A target marketing strategy is focused on the customers needs and wants. Currently, nike and adidas are dominating the market for athletic footwear, leaving little room for under armour van riper, 20. Constant innovation has been the byword for nikes success. It uses separate campaign or strategy to cap the market potential of the different segments. According to the companys business overview, nike brands each have distinct target audiences. Mar 06, 2018 nike uses psychographic segmentation variables to make its offerings more attractive to the target customers. Nike targets women marketing communications zabanga marketing. Young athletes can be the target market of nike in the future.
Marketing strategy of nike nike marketing strategy. The pricing of nike products is set in such a way that it is easily accessible to these customer segments. Target market nikes target market would be a consumer 1835 years of age that is physically active. Our category teams are completely focused on their target consumers. May 12, 2012 nike hasbeen involved in number of ecofriendly and social drives to show its concernstowards the well being of the social and individual personality. How to apply the nike marketing strategy to your own brand. Mar 16, 2017 etf investors seeking to add exposure to nike can consider the spdr consumer discretionary select sector etf, which invests 3.
The elements of the website is targeting those whose perform or engaging with all sports activities. Nikes consumer direct offense hinges on 12 key cities strategy where demographics show its best prospects, active, young highearning customers live. However, the industry has been stagnant for years, and nike, along with its com petitors, is looking for new growth opportunities and areas where the company can. Nike is the world leader in the manufacturing of sportswear and gear with more than 47 market shares across the global nike. The american manufacturer, through its marketing strategy which rests on a favorable brand image, has evolved into a large. Nike has been known to use ambush marketing strategy for a long time now. However, this does not mean nike does not use market segmenting to more precisely define various market segments. This is extremely because of the usefulness that goes along with the items. Nike target market strategy nike is a major publicly traded sportswear, footwear and equipment supplier based in the us which was founded in 1962 originally know as blue ribbon sports. In a recent business overview, nike lists serving athletes as one of its key goals for innovation. By having fit and athletics people on their website wearing their brand products, it encourage consumer, in buying their product even more. If anyone wants to be athletic, then theyre going to receive at least one marketing target no matter what their racial profile, economic status, or. Oregon runner phil knight, thought they could do a better job of designing and.
In fiscal 2019, the womens training segment grew faster than the. Nike also held the largest with a market share of 2. The first aspect of nikes strategy is to find its target market for a. It uses separate campaign or strategy to cap the market potential of the different segments targeting is the important aspect of the marketing strategy, especially when a company is in different businesses.
Nike is unique in the fact that they have a very general targeted demographic segment. Target market nikes target market would be a years of age that. The target for air jordans is not the same as their target for yoga gear. Demographic segmentation is a factor used by nike to target individuals according to their age, lifecycle stage, gender, occupation, and generation. Our principal business activity is the design, development and worldwide marketing and selling of athletic footwear, apparel, equipment, accessories and services. Based on the current client product service offering 1 setup a balanced decision shall be taken how the tobe target market should look like. The marketing strategy of nike invests a lot in commercials and product promotion. Nike has positioned itself in the mind of its target customers as a leader in sports goods.
Segmentation, targeting, positioning in the marketing strategy of nike nike uses psychographic segmentation variables to make its offerings more attractive to the target customers. Thus they have high margins but this can be justifiable due to its advertising and research costs. Nike improved their products over the years by making their products. To get more information or amend your preferences, press the more information button or visit cookie settings at the bottom. Nike products correspond with my selfimage in many regards purchase intention it is very likely that i would purchase nike products 0. May 04, 2020 as of 2018, nike was the most valuable global apparel brand, with a brand value of 28 billion u. Your audience is on the internet because theyre looking for answers to questions.
Market segmentation is the process of dividing a target market into smaller, more defined categories. How nikes marketing strategies helped it become a global brand. Nike s primary target audience for its products is athletes. This company is one of the major suppliers for the worlds sports shoes and one of the major manufacturers of sports equipment. And whoever likes sport, whoever likes challenge is a target market for nike. To then conclude, we will present the marketing mix of nike and will go over the. Nike often gives foot locker early releases, exclusives, and other perks in exchange for preferred placement, as its relationship gives it access to foot lockers 3,500 stores nationwide, an. Nike to stay out in front with biggest data of all. The marketing strategy of nike rested completely upon a product image which is favorable and allowed it to develop into one of the best multinational companies after a while nikes favorable product icon has been kept optimistic because of the strong relation with the company logo that is quite distinct and unique as well as the product slogan that has been utilized in commercials for a.
See how you can leverage market segmentation by learning. The meaning ascribed to this term in section 162m of the code. As of 2018, nike was the most valuable global apparel brand, with a brand value of 28 billion u. After segmentation, the company needs to decide on the targeting strategy.
This case study analyses the everevolving marketing strategies adopted by nike to become a global brand founded in. What attitudes do consumers have towards nike that leads to. Jun 19, 2017 nike s consumer direct offense hinges on 12 key cities strategy where demographics show its best prospects, active, young highearning customers live. No matter who you are, if you think you can challenge someone, then you can do it. Nike s target market is largely consumers ages 1545. A basic set of attributes for the definition of the target market has to.
Top 10 of newsweeks 2010 green rankings maplecroft recognized as a leader in climate change tops climate counts list in. Social media and advertising cookies of third parties are used to offer you social media functionalities and personalized ads. It includes casual apparel and footwear products, which. For nike, their targeted customers are athletes and mostly young adults. Social media and advertising cookies of third parties are used to offer you social media functionalities and personalised ads. With nikes celebrity endorsements such as tiger woods and lebron james representing this group. The period of time for which company performance is measured for purposes of a target award. Nikes target segment needs are durable shoes that are designed with athletes needs in mind.
With this being said nikes products appeal to all ages, and this allows them to have immense market share throughout the globe. Nike asks you to accept cookies for performance, social media and advertising purposes. Aug 10, 2015 north american sales for nike are still 2. Their target market is women, men, and kids because nike believes if you have a body, you are an athlete. Nike is the world leader in the manufacturing of sportswear and gear with more than 47 market shares across the global, 2011. Women are an important part of nikes target market. Target markets of adidas, nike and puma the social grabber. A comparative analysis of strategies and business models of nike. In 1973, brs signed its first endorsement pact with ilie nastase, a professional athlete and atp tennis star. Dec 08, 2014 segmentation and target market paper nike introduction.
As a result nike has been awarded various prestigious awards, like. Thus their pricing strategy is to provide value at high cost with maximum profitability. The brands product line looks at the premium target market. Nike has become a household name throughout the world as its brand has increased in popularity and scope. Using different types of market segmentation allows you to target customers based on unique characteristics, create more effective marketing campaigns, and find opportunities in your market. By having fit and athletics people on their website wearing their brand products, it encourage consumer, in buying their product even. Market segmentation sportsmen are the majority consumers of nikes products. Demographic segmentation is a factor used by nike to target individuals according. Aug 26, 2018 nike targets middle and high segment customers of all age groups and does not set a bias for any group. After the 2006 world cup companies started to shift from years old customers to 17 years old. Maybe you will lose, but if you do it many times, you will win eventually. Etf investors seeking to add exposure to nike can consider the spdr consumer discretionary select sector etf, which invests 3. Yes, in this case the shift in target market to 17 years old is a very wise move.
Companies need to select the market segments that they want. Do you think the shift of the target market to 17 ye. Nike learnt this the hard way in the mid1980s when it lost out on the lucrative aerobics market to reebok. Remote work advice from the largest allremote company.
What you probably want to know at this point is how to apply these lessons to your own work. It includes casual apparel and footwear products, which are sporty but not necessarily. This helps fulfill nikes responsibilities to the public, enhances our competitive position in the marketplace, and retains the confidence of our customers. The company went hightech with its push into digital sports. This is why advertising agencies and other entities who can do the job help businesses to reach a wider audience. Nike dates back to 1964 where it was initially known as blue ribbon sports. Hence, a prerequisite for the development of this customercentric strategy is the specification of the target markets. Nikes target market is largely consumers ages 1545. The sporty, active young people are the main target of the commercial. Mba 61 marketing panagiotopoulou vasiliki vasiliki. Since then, it has worked hard to ensure that never happens again. Nike lauren putbrese introduction this study examines nike.