Market Segmentation Nike Essays

Segmentation Targetting and Positioning of Nike

2257 WordsNov 10th, 201210 Pages

Nike, Inc .is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered in the Portland metropolitan area of Oregon, near Beaverton. It is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment with revenue in excess of US$24.1 billion in its fiscal year 2012 (Ending May 2012).Nike and Precision Cast parts are the only Fortune 500 companies headquartered in the state of Oregon. The company was founded in 1962 as Blue Ribbon Sports by Bill Bower man and Philip Knight, and officially became Nike, Inc. in 1978. The company takes its name from Nike, the Greek goddess of victory. Nike markets its products under its own brand as…show more content…

Now NIKE became official kit sponsor for BCCI Indian Cricket Team. By paying Rs.196 Crores (Rs. 1.6 Bn) to BCCI, NIKE wrested the rights to become the kit sponsor up to 2011.The first "Just Do It" cricket ad also made its appearance during the Champions Trophy."

1. Licensing
2. Franchising
3. Own Subsidiary

Market Segments:-
Market segmentation is the selection of groups of people who will be most receptive to a product. The most frequent methods of segmenting include demographic variables such as age, sex, race, income, occupation, education, and household status. Nike's segmenting market typically target's athletes, both women and male generally from the ages 15 to 35. Nike's targeting market is active people who enjoy high quality sporting goods, especially footwear. To do so Nike focuses on creating premium consumer experiences on product innovation, brand leadership and elevated retail presence. Nike is targeting further geographic expansion and farther marketing penetration in all regions. Though disciplined operating management, the company still continues to target long range mid teen earnings per share growth. The market segments that Nike can mainly differentiate are high, medium and low end customers with varying income levels. Thus, Nike needs to segment on various fronts such as economic, demographic, geographical

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Nike: Maintaining a Promotional Edge
Nike’s initial product advertising strategy of using professional athletes for raising demand through word-of-mouth provided good publicity. However, its selective-demand advertising was mainly focused on high-priced shoes for traditional sports, and ignored newly developed market segments such as aerobics and extreme sports, and new trends such as brown shoes and casual footwear (Etzel, Walker, and Stanton).
Nike launched a successful advertising campaign around its "Just Do It" catch phrase and "swoosh" logo. Nike increased its visibility through vertical cooperative advertising; expanding its product line to include apparel, equipment, and accessories, which led retailers to use the Nike…show more content…

Women and teenage consumers have not been targeted by Nike, but the focus has been on active males. The competition has been quicker to react to these changing trends, and have increased their market share in many segments that Nike is not involved in. The competition’s market share increased in size with the different market segments. Nike continued to release high-performance and high-priced shoes in a market that was more willing to purchase low-priced casual shoes
(Etzel, Walker, and Stanton).
The allegations that most of Nike’s shoes were manufactured in third world sweatshops were a public relations crisis. Nike’s image and supply chain faced many challenges, and it was in the company’s best interest to quickly correct the matter. The
Internet has added a new element to the supply chain by allowing consumers to customize their shoe purchases online. Furthermore, the product line expanded to include apparel, equipment, and accessories. This allowed Nike to serve different markets and the changing tastes of consumers while limiting the costs of liquidating their old inventories for new ones. It also allows it to compete with faster-moving companies that serve niche markets.
Nike situated itself with traditional sports and athletes that appeal to an older demographic. By not signing athletes from the booming extreme sports industry and other celebrities that appeal to a younger demographic, Nike lost more


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