NIKE, Inc. (NKE) is the world’s leading sports footwear and apparel company. Nike did not run it during the Super Bowl or the World Series. Let’s discuss one of the following target market characters. Thus their pricing strategy is to provide value at high cost with maximum profitability. What Nike sold was an idea and it was an idea that everyone and anyone could get behind. Plus, continued innovation and product quality are keys to success. North American sales for Nike are still 2.5x greater than the next closest market, which is Western Europe. Nike receives footwear from more than 140 factories located in 13 countries across the globe. Their average twelve-month price target is $137.33, predicting that the stock has a possible upside of 0.85%. Nike didn’t build its … The Washington Post. • The prices of the products are variable depending on the type and the size for example a comfortable and good pair of shoes would cost from 70 to 150 dollars. They aim to meet the requirements of people of all ages belonging to varying categories. Like Nike, The Economist studied millennials in several target locations. • It promises to provide the high quality products at reasonable prices. You can follow me on Facebook. "Olympics: How does Nike feel about conspiracy theories? • Promote the sustainable development of product design and novelty. 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. • 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. Much of Nike's innovation efforts are focused in the running category, according to Parker. target markets and market segment’ s needs, Nike has made these products available under a number of the company’s brands, including Air Jordan, Hurley , and Converse. Who is the segment of p… • Guarantee the availability of all kinds of products at all leading stores and markets. • The company does not have its own retailers therefore retailers are price sensitive. Nike has a high-end consumer market with high disposable income asking for better service and satisfaction as their target market. • Many well known athletes have also worked for the advertisement of brand like Brazilian Soccer Team (especially Ronaldo). Our mission is to bring inspiration and innovation to every athlete* in the world. Men are targeted more often than women with training products as Nike sees a 2-1 spending ratio between the genders. Nike is also a global brand, and it would use both sociographic and psychographic data to determine target markets in foreign countries and then tailor marketing programs to appeal to their specific interests. The Nike brand and its offering are Stars in the BCG matrix while Converse, Hurley and Jordan are the question mark in the BCG matrix due to their presence in the limited countries. efficiently achieve its goals. 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. 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. 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. • Its swoosh logo make it recognizable in all over the world. • It is famous for its development and research which is depicted in their wide range of new products with new designs. Marketing mix – Here is the Marketing mix of Nike. The major threat to Nike is the imitation that goes hand in hand in various, Marketing Strategy of Nikon - Nikon Marketing Strategy, Marketing strategy of Dell - Dell marketing strategy, Marketing strategy of Aquaguard - Aquaguard marketing strategy, Marketing Strategy of Apple Inc - Apple Marketing Strategy, Marketing strategy of BMW - BMW marketing strategy, Marketing Strategy of Dettol - Dettol Marketing strategy, Marketing strategy of Indigo Airlines - Indigo Marketing strategy, Marketing strategy of KFC - KFC Marketing strategy, Marketing Strategy of Alibaba - Alibaba Marketing Strategy, Marketing Strategy of Axa - Axa Marketing Strategy, Marketing Strategy of Baidu - Baidu Marketing Strategy. Soccerpro.com. In the video, we see that an overweight guy is running towards the camera. So in order to see closer their positioning tactics we need to look upon the 5 main components of positioning strategy. Market Target . Outsourced Manufacturing Units: Nike receives footwear from more than 140 factories located in 13 countries across the globe. Nike is unique in the fact that they have a very general targeted demographic segment. That foe? • All sizes are not present in every design of shoes. 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. Nike has huge range in its target market. Market segmentation is the selection of groups of people who will be most receptive to a product. 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. • To encourage the development of designs allowing the young people to cash the maximum benefits from exercising. I love writing about the latest in marketing & advertising. Read how Nike wants to attract more women in the future. Nike has managed focusing at the segmented groups comprehensively due to markets with similar and related needs. Their average twelve-month price target is $141.44, predicting that the stock has a possible upside of 1.95%. Moreover, we 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. The Nike Swoosh (not tick) is based on the goddess Nike's wings (It makes more sense when you look at the image below). The company is the biggest player in the athletic apparel market, with $28 billion in annual sales. stories; Marketing. NIKE purchased Converse in 2003. Market Target Nike’s target audience are for people who regularly exercise and for those who will wear for fashion trend as it goes well with the modern-day clothing. Hoop It Up) for the marketing of brand. Nike lays numerous techniques to aim their on the spot customers, athletes and all sportsmen. Nike’s audience is versatile. Market segmentation in Nike has made the organization more effective in meeting the exact wants and needs of the target market. However, this does not mean Nike does not use market segmenting to more precisely define various market segments. NIKE’s high-performance athletic gear is mostly targeted at professional athletes. • Its products are globally available in all leading marketing places of World. 2020 Targets Performance Summary NIKE is a brand of Innovation, Growth and Purpose. The positioning strategy was ‘The lightest shoe in the market that would last in longer-distance running at a price lower than the German brands in the market’. Being present in footwear, sports equipment, clothing and many others Nike uses differentiated targeting strategy.Produc… Brand Finance names Nike 2019's most valuable fashion brand in the world. Nike is the overall leader in the $15.6 billion market for athletic shoes and apparel in the United States. Other Customers • In 2011, Nike operated a total of 756 retail stores throughout the entire world. Nike uses this old-as-time structure differently than most by focusing on an internal foe rather than an external enemy. Nike also held the largest market share of the global apparel market. Like Nike, The Economist studied millennials in several target locations. •Nike has its individual stores and also available at major malls and departmental stores selling shoes all over the globe. http://condor.depaul.edu/aalmaney/StrategicAnalysisofNike.htm. http://www.soccerpro.com/Nike-Air-Zoom-Control-II-FS-Indoor-Soccer-Shoes-c439/. Nike uses psychographic segmentation variables to make its offerings more attractive to the target customers. Nike has subsidiaries such as Converse, Hurley and Jordan for driving growth with the help of the different brands. (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. 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 brands. In 1980 the company gained more than 50% share in the global market. Adidas target market falls within the 20- to a 29-year-old age group who are athletes or are passionate about sports and this segment is considered as the strongest consumer market. The demand graph is shaped by variables such as the change in the fashion, technology, taste and preferences of the customers. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. They aim to meet the requirements of people of all ages belonging to varying categories. Retrieved on March 16, 2011. • Partlow, Joshua (2003). They ran it during the Oscars. By looking at social media audiences discussing the campaign, and Nike’s conversation overall, we can go further than the surveys to showcase how brilliant the marketing move truly is. Nike targets customers from different age groups and middle / upper-middle or upper-income social groups. This strategy has made this company to gain maximum number of customers and profit. Then, with the help of experiential agency Sense, they launched ���edgy��� activations that addressed topical issues by location. • Maintain the leading position in the market by supplying quality products and innovative designs and attract maximum number of customer belonging to all ages and lifestyle. Let's stay in touch :), Your email address will not be published. London: Blogs.guardian.co.uk. 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. However there are seasonal variations in some products like spring apparel, the back to school season and Christmas holiday season (Fass, 2000). 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 • The Brands swoosh logo and image played an important role in its advertisement. NIKE (NYSE:NKE) Price Target and Consensus Rating 34 Wall Street analysts have issued ratings and price targets for NIKE in the last 12 months. We are going to look at the brand Nike with different angles and find out the secrets of the genius of marketing. The company initially operated as supplier for the Japanese shoe maker. An excellent business depends upon an excellent marketing strategy. Targeting is the important aspect of the marketing strategy, especially when a company is in different businesses. 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 Note: The above content is part of the following book. DEMOGRAPHIC MARKETING is the way to TARGET your marketing. Emerging markets account for $0.15 of every $1 in revenue that Nike earns. • Nike’s foremost focus is athletic footwear and apparels designed for sports and every day usage with the brand name. Nike is targeting further geographic expansion and farther marketing penetration in … (In fact, they used Zoomph to track the social media conversations of ���globally curious��� millennials.) The following commercial is a very popular one and has millions of views. The high price target for NKE is $174.00 and the low price target for NKE is $96.00. Nike distributes its products worldwide through different channels such as resellers, supermarkets, e-commerce sites, retailers, licensees and company-owned outlets. • The companies also sell its products through individuals, auxiliaries and licensees. Segmentation, targeting, positioning in the Marketing strategy of Nike –, Competitive advantage in the Marketing strategy of Nike –, BCG Matrix in the Marketing strategy of Nike –, Distribution strategy in the Marketing strategy of Nike –, Brand equity in the Marketing strategy of Nike –, Competitive analysis in the Marketing strategy of Nike –, Market analysis in the Marketing strategy of Nike –, Customer analysis in the Marketing strategy of Nike –. In 2020, the Nike brand was valued at approximately 34.8 billion U.S. dollars, which was an increase of over two billion U.S. dollars from 2019. Segmentation and Target Market Paper (Nike) Introduction Nike, Inc. is a public multinational organization based in the United States; the headquarters are in Washington County, Oregon with operations of the company focusing at the apparel and accessories industry. • New product offerings under the name of brand include sport balls, timepieces, eyewear, skates, bats, and other equipment designed for sports activities. Instead, Nike targeted the core, frequent, highly committed aerobics/fitness enthusiast for whom the activity was an important part of life (Figure 1). PSYCHOGRAPHIC MARKETING is the way to deliver your message so they know that you, the advertiser, knows what they, the customer needs from your product. 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 is unique in the fact that they have a very general targeted demographic segment –their stated target market is “all athletes”. 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