nike target market

This company was founded in 1962 by Bill Bower man and Phil knight as Blue Ribbon Support and later on it became Nike in 1978 (Partlow, 2003). However, being a celebrity brand does not come easy and you needto do a lot of marketing and branding before you achieve the position of your customer���s most favorite. Product and usage-based positioning are used by Nike to create the image in mind of the consumers. • Value the laborers, stake holders and other communities in the implementation of every strategy and decision. Nike uses the following tools to promote its brand: Tool 1: Advertising Advertising, according to Kotler and Armstrong (2010), is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Target Market Target market is a process where the company evaluates all the market segments and then chooses one or more segments which the company thinks is profitable, and then it enters that market segment. Let's stay in touch :), Your email address will not be published. Nike's targeting market is active people who enjoy high quality sporting goods, especially footwear. Nike has huge range in its target market. Nike have classified their target customers mainly into three product groups, men products, women products and kid’s products. • The mission is to exceed from all leading athletic companies and make it widely available across the globe. Nike changes its target market from teenagers to younger consumers due to intense competition with Adidas and Reebok and also to expand its target market. • It is famous for its development and research which is depicted in their wide range of new products with new designs. http://www.soccerpro.com/Nike-Air-Zoom-Control-II-FS-Indoor-Soccer-Shoes-c439/. The company’s profile grew quickly and soon it gained a renowned position in the market. Outsourced Manufacturing Units: Nike receives footwear from more than 140 factories located in 13 countries across the globe. Nike also held the largest market share of the global apparel market. … •Nike has its individual stores and also available at major malls and departmental stores selling shoes all over the globe. He did not surrender, he does not find any excuses and he wants to change his life and find his greatness. New York Times. The sporty, active young people are the main target of the commercial. Instead, Nike targeted the core, frequent, highly committed aerobics/fitness enthusiast for whom the activity was an important part of life (Figure 1). What distinguishes Nike from other shoe brands is that it taps into the power of influencer marketing the smart way. London: Blogs.guardian.co.uk. NIKE, Inc. (NKE) is the world’s leading sports footwear and apparel company. Customers of Nike ranges from individual customers to companies. This strategy has made this company to gain maximum number of customers and profit. Nike uses psychographic segmentation variables to make its offerings more attractive to the target customers. It uses separate campaign or strategy to cap the market potential of the different segments. The swoosh logo of Nike was firstly used in 1971, registered in U.S trademark office in 1974 and first product sold with Nike was a soccer (Marina, 2008). March 6, 2018 By Hitesh Bhasin Tagged With: Strategic Marketing Articles, Founded in 1967 Nike has emerged as the most preferred footwear company for the athletes. • To meet the requirement of all type of customers (male, female, old and Young). Your email address will not be published. Nike���s #Breaking2 campaign, which saw it attempt to break the two-hour barrier for running a full marathon, could be a glimpse into the future of sports marketing as brands look to make product launches into must-watch events. • Reebok has 16% share in the market with revenue of $1.28 billion, • Adidas has 6% share in market with revenue of $ 500 million, • Converse has3% share in market with revenue of $ 280 million, • New Balance has 3% share in market with revenue of $ 260 million. Who … • Promote the sustainable development of product design and novelty. • The production facilities are located close to the raw material to have low labor prices. http://www.soccerpro.com/Nike-Air-Zoom-Control-II-FS-Indoor-Soccer-Shoes-c439/. Nike has a high-end consumer market with high disposable income asking for better service and satisfaction as their target market. Like Nike, The Economist studied millennials in several target locations. Nike competes with the company like Lululemon, Puma, Adidas, V.F Corp., athletic UNIQLO and many others. 2020 Targets Performance Summary NIKE is a brand of Innovation, Growth and Purpose. Their average twelve-month price target is $141.44, predicting that the stock has a possible upside of 1.95%. • The company has designed its pricing structure in a way to make it competitive to other shoe sellers. • Encourage the environment friendly and pollution free development by reducing the emission and waste minimizing activities with the help of various projects sponsored by WWF and other organizations. "Olympics: How does Nike feel about conspiracy theories? The major threat to Nike is the imitation that goes hand in hand in various markets which are affecting its revenues and businesses. Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, Marketing Strategy of Nike – Nike Marketing Strategy,                                                                 Â, 3 objectives of competitive analysis and how it helps in strategy. POSITIONING: Positioning is the final step in the S-T-P planning approach; Segmentation→ Targeting → Positioning; a core framework for developing marketing plans and setting objectives Although large in number these consumers would not be the most fruitful for Nike to target initially as they are likely to be more 'loyal' to Reebok the 'safer', mass-market choice. Marketing Strategy of Nike. It controls more than 47% of athletic shoe market with sale of U.S dollar 3.7 Billion. It is supplying its high quality products in more than 100 countries with its major target areas including United States, Europe, Asia Pacific, and the Americas. • Todd, L. A.; Sitthichok, T. P.; Mottus, K.; Mihlan, G.; Wing, S. (2008), "Health Survey of Workers Exposed to Mixed Solvent and Ergonomic Hazards in Footwear and Equipment Factory Workers in Thailand", Annals of Occupational Hygiene 52 (3): 195–205. http://condor.depaul.edu/aalmaney/StrategicAnalysisofNike.htm. Nike is one of the pioneers of the manufacturing outsourcing strategy. However, over the period of time, it extended its product line to apparels and accessories like clothing, socks, digital devices, eyewear, and equipment for sports. Being present in footwear, sports equipment, clothing and many others Nike uses differentiated targeting strategy. Required fields are marked *. An excellent business depends upon an excellent marketing strategy. • The company does not have its own retailers therefore retailers are price sensitive. • The company will now focus on providing quality products on low prices to have greater share in the market. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world.  Nike have strong product portfolio as being present in various interrelated business segments is helping the company in retaining its customers and provide a bundled, Nike distributes its products worldwide through different, Nike is the well-known brand globally and its association with the various sports, athletic footwear and sports equipment industry are highly competitive due to the presence of a large number of local and, Business segments in which Nike operates has a large number of local & national players. This site uses Akismet to reduce spam. It consists of rockers and rappers, artists and thinkers, entrepreneurs, athletes and other individuals – and not just professionals, but regular people, too. 2011-15 and revenue of $ 30,601 million.                                                                                      Â. Nike uses psychographic segmentation variables to make its offerings more attractive to the target customers. NIKE brands. • The company has used electronic media (commercials, official website of Nike and newspapers) to promote their brand. (adsbygoogle = window.adsbygoogle || []).push({}); Designed by Elegant Themes | Powered by WordPress. Nike is unique in the fact that they have a very general targeted demographic segment. Men are targeted more often than women with training products as Nike sees a 2-1 spending ratio between the genders. Nike has achieved compounded annual growth rate (CAGR) of 11% for the period of 5 years i.e. Thus they have high margins but this can be justifiable due to ��� stories; Marketing. By the end of 2009 the company   generated revenue of 19.2 billion U.S dollars with operational income of 1.87 billion U.S dollars. There are 697 Nike brand factory stores, 106 inline stores and 99 converse stores and 29 Hurley stores globally. • To encourage the development of designs allowing the young people to cash the maximum benefits from exercising. Home. So in order to see closer their positioning tactics we need to look upon the 5 main components of positioning strategy. They have wide range of different products each targeting and appealing a specific group of people. Hoop It Up) for the marketing of brand. Nike has plans to grow the business even larger by focusing on a few key demographics. • Nike’s foremost focus is athletic footwear and apparels designed for sports and every day usage with the brand name. Nike did not run it during the Super Bowl or the World Series. Nike is unique in the fact that they have a very general targeted demographic segment –their stated target market is “all athletes”. Nike targets these consumers by agreements between Nike and athletic teams, colleges athletic teams1 etc for product sponsorship and eventual promotion to the members of these teams. Nike has subsidiaries such as Converse, Hurley and Jordan for driving growth with the help of the different brands. Above mentioned are the few potential market segments that Nike chooses to target for driving their business strategy, sales and marketing activities. "Nike Drafts An All Star". The brand���s product line looks at the premium target market. • To maintain its quality and make it easily available at every marketable place. Meaningful story – They’re selling more than a product; they’re selling aspiration. The collaboration between Nike and Nordstrom is an example of how Nike wants to target women in the future. • They have more than 20,000 retailers in United States and also in other 200 countries. These concentrated on strategies encompass product sponsorship via professional and widely recognized athletic team, university sports team in addition to celebrity athletes. Their average twelve-month price target is $137.33, predicting that the stock has a possible upside of 0.85%. How to Become a Virtual Assistant and Work Remotely? NIKE purchased Converse in 2003. Nike is aware of the conditions that affect the workforce, communities, products, supply chains and people, from rising fuel prices, population growth, climate change and reduction in the availability of natural resources. Despite all of these emphasis points, Nike is still only ranked #5 as a brand with consumers in the core 18-24 age demographic. Nike has huge range in its target market. Why? Nike didn’t build its … One of the main targets of Nike are a segment of people who are called Peackoks called by the Garrison group. They aim to meet the requirements of people of all ages belonging to varying categories. The Washington Post. Plus, continued innovation and product quality are keys to success. The demand graph is shaped by variables such as the change in the fashion, technology, taste and preferences of the customers. Nike dates back to 1964 where it was initially known as Blue Ribbon Sports. The activewear market is getting crowded – Nike, Adidas, Reebok, and Puma are all trying to branch out from the primary athletic wear consumer to an activewear or lifestyle consumer creating intense competition Possible slowdown of consumer spending in the U.S. and Europe http://602communications.com/Dig deep inside Nike branding campaigns and you'll discover a very simple archetype story. Moreover, we Your email address will not be published. • The company has invested 1 billion in the past two years for community stores. Learn how your comment data is processed. (In fact, they used Zoomph to track the social media conversations of ���globally curious��� millennials.) Nike is the well-known brand globally and its association with the various sports events such as Cricket world cup, FIFA cup, Olympics and many others has helped the company in creating high TOMA (top of mind awareness) and brand pull. The high price target for NKE is $174.00 and the low price target for NKE is $96.00. These include manufacturing superior products, maintaining the integrity of the global brand and innovating in the area of product design. You can follow me on Facebook. SWOT analysis – Here is the SWOT analysis of Nike. Â, Mission- “To bring inspiration and innovation to every athlete in the world”. Let’s discuss one of the following target market characters. Runners. • It promises to provide the high quality products at reasonable prices. Outsourcing of the manufacturing helps the company in keeping its operational cost low and at the same time focus its competencies on sales and marketing activities to drive the sales. In the video, we see that an overweight guy is running towards the camera. Nike receives footwear from more than 140 factories located in 13 countries across the globe. We are going to look at the brand Nike with different angles and find out the secrets of the genius of marketing. Bonus fact. What Nike sold was an idea and it was an idea that everyone and anyone could get behind. • The company has its production units, customer services and operational units in all over the World. Known for its great quality athletic products, Nike is famous globally and holds a very large market share, close to half in US. Moreover the sale of these products also depends on the Olympic as growth has been observed in the sale of products in the Olympic season. • Guarantee the availability of all kinds of products at all leading stores and markets. The high price target for NKE is $165.00 and the low price target for NKE is $96.00. Factors such as quality, performance, reliability, competitive pricing, connect with the consumer plays the critical role for the companies operating in this business. To do so Nike focuses on creating premium consumer experiences on product innovation, brand leadership and elevated retail presence. Nike has managed focusing at the segmented groups comprehensively due to markets with similar and related needs. Target market is a process where the company evaluates all the market segments and then chooses one or more segments which the company thinks is profitable, and then it enters that market segment. Nike is targeting further geographic expansion and farther marketing penetration in … In 1980 the company gained more than 50% share in the global market. NIKE’s high-performance athletic gear is mostly targeted at professional athletes. For driving their business strategy, sales and marketing activities at major malls and departmental stores shoes... 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