The picture above represents Nike's products. - Threats of direct competition and competitors' response If the competitors response is predicted to be strong then company shouldnt strive for a positioning where competitors can easily counter attack the marketing strategy and marketing mix of the organization. The core purpose of Customer Value Driven marketing strategy is to build an engaging, right relationship with the right customer. The Nike market segmentation, targeting, and positioning will be ideal to the points discussed above outlined in simplified words. Benefits Benefits segmentation is considered the underlying factor where every purchase satisfies a need. Nike is currently ranked 23rd in the Most Admirer Company. Brand positioning and product differentiation have become increasingly critical because of the driving down of production costs in the Footwear industry and the direct access to consumers using e-commerce and other online retailing strategies. Step 1 Market Segmentation Company Analysis The Nike Company-Overview (History and Current Status) NIKE, Inc. is all about innovations and discovery by providing the products and experiences for athletes. View nike targeting and segmentation.pdf from MARKETING 2021 at Symbiosis Centre for Management and Human Resource Development. nowadays nike is one of the most famous international brands in the world with a market capitalization of more than 65.8 billion dollars and net worth of 29.6 billion dollars in 2017 and 32.4 billion dollars in 2019, nike has also been identified as the richest sports brand in 2020 and one of the most successful clothing brands around the world. - Organizations comparative strengths and weaknesses to market successfully to the target market. endobj . . Study Resources. The strategy involves dividing NIKE's market into segments that are easy to reach. Nike's marketing efforts are targeted at creating a "feeling" that transcends the product. Thus, Nike segments market in lower, upper middle and upper class, where in the last group, the company provides sports equipment in limited editions, which could be bought only from individuals with high income (Bilotti, 2011). For Nike, its market segmentation involves four categories - geographic, demographic, psychographic, and behavioral. Since the STP begins with segmentation, it becomes particularly important to identify the right segment. . Dunlop Sports Group Prince Sports Gamma Nike Adidas . Marketing choices are crucial components of a strategic marketing process. Consumers in the Footwear industry vary in their needs, wants, demands, resources, locations, access to technology, cultural differences, buying attitudes, and end use of the products and services. E. Jerome McCarthy (1960), Basic Marketing: A Managerial Approach - 4P Marketing Classification(Homewood, IL: Irwin, 1960). An overall evaluation of the companys strengths (S), weaknesses (W), opportunities (O), and threats (T). Segmentation, Targeting, Positioning - Nike Marketing Strategy Nike utilizes psychological segmentation variables to make its services more appealing to intended customers. (New York: Harper Collins Publishers, 1987). The set of tactical marketing tools product, price, place, and promotion that the firm blends to produce the response it wants in the target market. The strategic choice of target customers is critical because Nike cant serve all the customers in the Footwear industry. - Presence of appropriate collaborators to market successfully to the target market Is there sufficient infrastructure available to target certain customer segment. - Organizational technical capabilities to cater to a specific consumer segment in the Footwear industry. MARKET SEGEMENTATION: The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behavior who might require . In order to specify the flow of the marketing mix, planning and decisions are made. x |E=d239IHBBLNp!Q b@4xuuEdu2 xzUO~IUw?;Owg` l1{Lxd09dcu[@s e l*X=S@M7drpF>lr?lwQ_~*dq}c"yEK,m@\0Zda=N%trH./Khcsj+>gz ~EQ-ojU]I Nike needs to find out at what stage of the product life cycle the target segment is. The table below will provide a quick illustration of Nike's three elements for its marketing initiatives. : 03 OBJECTIVES: MARKET SEGMENTATION POSITIONING RE-POSITIONING fWhat is market segmentation? This report is all about to show a Marketing plan for Nikes products; with reference to older offerings the report shows the plan that how can Nike offer new products in the market. 8 million in 2008. Nike's market segment is sports enthusiasts (psychographic segmentation), in this case Nike determines the market segments served are sports-enthusiastic markets. For example, right before the 2014 World Cup Nike developed a video starring important Nike sponsored soccer athletes with teenage soccer players. Brands of Adidas products into range of male, female and kids. One of the most widely used consumer behavior frameworks to do consumer psychographic analysis is Adidas joins rivals such as Nike and German neighbour Puma . Nike has various brands which it sells to various segments of the market. In 2021, 39%, or $17.2 billion, came from North America, while revenue from the EMEA region totaled $11.5. Age, income, gender, ethnic background and family life cycle are all important factors of demographic segmentation. Nike has recently launched a variety of women's lines to tap into the fast . If Nike cant defend the new product / services positioning then it will be left to fend off competitive threats from new entrants. Nike can differentiate its products in the Footwear industry based on the quality of the products. Page!2!! In fact should strive to inculcate numerous features to better define and identify the target groups and segments. Nike spent more than $3.2 billion to run ads in major media from 1995 through 2012. There are few type of segmentation used by Nike such as geographic segmentation, demographic segmentation, Psychographic segmentation and behavioural segmentation. For a detailed Marketing Mix and 4P analysis of Nike please go to the Marketing Mix and 4P page of Nike. So regarding this Nike segments its market which includes: Sports or athletic oriented Active lifestyle (interest in fitness and exercise for recreation) Geographic segmentation: On the basis of this, Nike has segmentation to serve its target customers all over the world. Market segmentation is a process that consists of sectioning the target market into smaller groups that share similar characteristics, such as age, income, personality traits, behavior, interests, needs or location. According to this latest study, the 2022 development of Third-Party Replacement . Nike has classified its products according to gender and group, typically between 15 and 55 years old. Euromonitor (2020), "Consumer Cyclical Sector Analysis ", Published in 2020. Meanwhile they also have agreements with various world, soccer teams such as Manchester United, Arsenal, F.C Basel, Juventus, Inter Milan and others, The development of the business world at this time increasingly rapidly. H. Igor Ansoff (1957), Strategies for Diversification, Harvard Business Review, SeptemberOctober 1957, pp. In addition, every company strives to increase its profits and market share, at the same time. Nike needs to position its product in such a way that it creates a distinct image, provides a specific identity / reference point of the product and services in the customers mind. 3 0 obj 132134, Nancy Lee and Philip Kotler (2015), Social Marketing: Changing Behaviors for Good, 5th ed. VALS - A widely used segmentation method that classifies Americas adult population into eight distinctive subgroups: innovators, Thinkers, Achievers, Experiencers, Believers, Strivers, Makers, and Survivors. Nike also, owned a stake in Bauer Hockey between 1995 and 2008. (PDF) NIKE MARKETING PLAN NIKE MARKETING PLAN January 2018 Authors: Omar Aloulou Emna Riahi rebro University Abstract 20+ million members 135+ million publications 700k+ research projects. <> Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries, A market segment of buyers who share common needs or characteristics that the firm decides to serve. PRIZM is the geo-demographic segmentation system that combines geographic data with various demographic, consumer behaviors, and other data to help marketers identify, understand and reach their customers and prospects. not long ago nike released a wide range of women's lines to improve fast growing under the women's segment. When Segmentation Goes Wrong Christensen, Cook, and Hall (2005) found that more than 90% of products fail. 5 million in 2009, compared to $622. GEOGRAPHIC 7. 9 Global Athleisure Personal Care Market-Segmentation by Geography 9.1 North America 9.2 Europe 9.3 Asia-Pacific 9.4 Latin America 9.5 Middle East and Africa 10 Future Forecast of the Global . Beside this, the financial budget of this marketing plan has been discussed which is been forecasted by reviewing Nikes previous years revenue and marketing expenses figures. - Organizations mission, vision, and the consumer segment fit Is the targeting consistant with the vision, mission, ethos, values and strategic fit of the Nike. Nike also found that women spent 40% more than men on sports. Boston Consulting Group (1968), BCG Matrix / Growth Share Matrix, www.bcg.com, Michael R. Solomon (2014), Consumer Behavior, 11th ed. Nike ranks second with consumers ages 45 to 65, third with consumers ages 25 to 44 and fifth with consumers ages 18 to 24. (Statista, 2007). NEWS. Geographic segmentation is highly efficient for Nike in the international markets because the prospective customers have different culture, preferences, and administrative systems. Secondly, if the cost of transportation is critical cost in the value proposition delivery then it is prudent to do geographic segmentation as the costs of serving customers in different locations will be completely different. After identification of various consumer segments within the marketplace, Nike needs to target a specific market. DOCX, PDF, TXT or read online from Scribd, 0% found this document useful, Mark this document as useful, 0% found this document not useful, Mark this document as not useful, Save Nike - Market segmentation.docx For Later, PRINCIPLES AND PRACTICE OF MARKETING (MKT420), CASE STUDY: NIKE (SEGMENTATION, TARGETING, POSITIONING), Nike Inc. is a publicly traded company and sports equipment supplier based in the, United States. Brand positioning and value proposition positioning are critical to marketplace success in todays competitive marketplace. <>stream Get the sample PDF copy (including full TOC, charts and tables) of this report: . Nike addresses this segment by deploying marketing campaigns about young adults striving to be like their athlete idols. The, company was founded on January 25, 1964 with Blue Ribbon Sports, by Bill Bowerman and, Philip Knight, and officially became Nike. One faction within the market may be recognized by gender, while another may be made up of purchasers within a certain age category. Nike Geographic Segmentation. Report Attribute: Details: Base Year: 2021: Historical Year: 2018 - 2020: Forecast Year: 2022 - 2029: Segments Covered: By End-Use and Regional: Forecast Units This is done to reach out to the group of consumers more efficiently and effectively. For example everyone knows that there is an environment conscious segment in automobile industry who can pay premium prices for electric vehicles, but none of the major auto players successfully able to target that segment because there was no collaborators ecosystem. Company mainly use segmentation and psychographic segmentation, those two are helping them to increase Nike knowledge about the potential customers. - Competition in the target segment What is the level of competition in the target segment. NIKE also provides different products for the different ages specifically. Nike can use the principle of cross market segmentation defining and targeting same type of consumers in different markets, strategy in this scenario. These are strategies and techniques used for executing . Marketing segmentation strategies can be cultivated through an extensive choice of attributes found among purchasers. The term "positioning" refers to the process of selecting the marketing mix that is most suited to the target client group. Assignment 2 Segmentation and Targeting Nike: - Just Do. Horizontal differentiation is when the brand is bought by the customer based on personal preference irrespective of the price and quality features. The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships. What is market segmentation? In other words, STP is a marketing signification that associates the way to evaluate and choose a target market for specific product or service. Choosing the target market is a part of marketing strategy formulation, the other two parts being positioning and marketing mix formulation. The company is headquartered in Beaverton, close to the Portland metropolitan, area in Oregon. <> To browse Academia.edu and the wider internet faster and more securely, please take a few seconds toupgrade your browser. endobj Under its namesake brand, Nike also markets sports-inspired products for children and various competitive and recreational . SPORTS. Geographic segmentation refers to the collection and examination of information concerning the physical location of a consumer by exploring a region and its . Main Menu; by School; . Demographic segmentation The Company can segment markets into Age, Gender and Class segments. - Segment structural attractiveness - Presence of core infrastructure to market successfully to the target market. Market segmentation is becoming very familiar and essential to every marketer in the process of designing and implementing an effective target-marketing strategy. Maslow (1987), Motivation and Personality, 3rd ed. Without right targeting, the firm cannot formulate an effective strategy. 100% found this document useful, Mark this document as useful, 0% found this document not useful, Mark this document as not useful, Save Marketing (Case Study - Nike) For Later, Characteristics of market oriented organisation, Benefits and costs of implementing marketing approach, Concept of Segmentation, Targeting and Positioning, Macro and Micro Environmental Factor to Marketing Undertaken By Nike, Individual Elements of the Extended Marketing Mix, Application of the Extended Marketing Mix to Different Market Segments, Difference in consumer and organizational marketing, International market versus domestic market, is the worlds largest athletic footwear and apparel compan, I am the Operations Office of Change-A-Life Foundation. A group of consumers who respond in a similar way to a given set of marketing efforts. Nike can use psychographic segmentation to divide the potential buyers into different segments based on personality characteristics, buying patterns, consumption opinion, opinion on social issues, leisure activities, hobbies, and many other dimensions. How to set-up a corporate user experience team: key success factors, strategic positioning, and sustainable organisational implementations, Strategic Marketing Plan of Nike The Creativity and effectiveness of Interactive Digital Media on Advertising View project, Marketing Segmentation, Targeting and Positioning for Competitive Advantage, Related Cases. For demography segmentation, Nike has included different age groups, gender and based on their targeted customer's financial status. - Product Life Cycle stage It is highly relevant in the international scenario where the product life cycle is at different stages based on social, economic, regulatory, and political reasons. For example, Harley Davidson bikes are priced at a premium with fewer features than modern bikes but people buy them for the emotion they bring. Differentiating Nike value proposition from that of the competitors, thus providing a market offering to create superior customer value. The FREE sample report is available in PDF forma. Nike consistently generates more revenue from North America than any other region. of 8 NIKE MARKET SEGMENTATION By: Shrish Shandilya (19BM63005) Rakshith Kashyap (19BM63023) Nirmal Hegde (19BM63037) Kamakshi Garg (19BM63069) Lohit RB (19BM63137) Different types of market segmentation Demographic: Refers to the statistical data about a group of people Analyses data such as Age, Gender, Income, Location, Education, Ethnicity Marketing implementation is the process through which marketing strategies and plans are executed into marketing actions to accomplish strategic marketing objectives. We will write a custom Analytical Essay on Marketing Segmentation of Adidas specifically for you only $16.90 $12/page! Nike fosters an attitude, it develops a lifestyle. Market segmentation is the process through which Nike decides to segment the overall market in smaller segments and groups that have similar attributes, buying behaviour, socio economic background, etc. Course Title MARKETING 2021; Uploaded By Mega1510. The marketing mix is the way a firm design and execute a combination of product strategies, pricing strategices, distribution channel options, and promotion vehicles. %PDF-1.3 It has a distinct campaign as well as a method to maximize the marketing potential of each segment. Continuous engagement leads higher customer satisfaction rates and high net promoter score. Market Segmentation The worldwide Sports Gloves Market is categorized on Component, Deployment, Application, and Region. Segmentation is the process of separating a population into groups based on particular traits, while targeting is the process of selling items to particular groups found as a consequence of segmentation. Market Segmentation, Market Target and Market Positioning of Nike Company Introduction The company Nike was founded in 1964 by Bill Bowerman and Phil Knight who had located their headquarters near Beaverton, Oregon. The 4 Ps of Marketing Mix are product, price, place, and promotion. 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