Nike also owned Bauer Hockey later renamed Nike Bauer between 1995 and 2008, and previously. Market segmentation Market segmentation is very crucial in consumer markets like those of footwear. To obtain the particular market firstly a marketer has to prepare a market research, after which he segments the market, and then targets a single segment or series of segments, and finally positions within the segment s. In order to get a better grasp of these concepts I will use Nike as an example. The leading customer segment, of course, is that of athletes, for whom the main line of Nike products are targeted. But it is essential to choose the advantages properly before diving into all of them. The Adidas as an organization faces a dilemma to target the both markets simultaneously with a single product.
If you have a body, you are an athlete. Venture into new distribution channels especially in international markets Different pricing strategy so as to open up a new market segments. The comfortable boots that enhance the performance are expensive but the price is not usually a concern since the top players are well-paid or supported by sponsorships from clubs or the manufacturer. He then changed the company´s name from J. An example is the athletic shoes targeting athletes and the Nike Air Jordan targeting at the basketball players among others. Nike markets its products under its own brand as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding, Team Starter, and subsidiaries including Cole Haan, Hurley International, Umbro and Converse.
Though disciplined operating management, the company still continues to target long range mid teen earnings per share growth. Nike targets these consumers by agreements between Nike and athletic teams, college's athletic teams etc for product sponsorship and eventual promotion to the members of these teams. Nike addresses this segment by deploying marketing campaigns about young adults striving to be like their athlete idol's. Nike tells its customers, if you are determined to fight for, you will excel, to conquer all. Page 3 Nike history …. Goyat, 2012 Works Cited Belzer, J. Athletic shoe, Bill Bowerman, Cole Haan 912 Words 3 Pages Nike's mission statement is simple: To bring inspiration and innovation to every athlete in the world.
Although it is primarily targeted towards the athletes, the brand is looked upon more as youth fashion at reasonable costs. The market segments that Nike can mainly differentiate are high, medium and low end customers with varying income levels. Market Segmentation To cater to the different consumer groups, any business must divide its targeted market into smaller units with specific needs or preferences, who may need to be served with unique products or marketing mixes. Now Nike follows the global fashion trends and is well known and popular in the. Even the online sales, which are not mediated through the shop floor, are strategically allied with logistics providers. Starbucks additionally utilizes geographic division. According to Philip Kotler, a product should be judged according to its core value, the actual value and the augmented value.
Lifestyle descriptors are often categorized as activities, interests, and opinions. Hamaleinko, 2010 As everyone knows that time and resources are the most important things wasting them on things that seem disinteresting to your business would not be suitable. Besides, it was observed that the majority of the respondents consist of professional from various fields like engineers, software professionals, working executive etc. But there are low-cost and easy-to-understand methods, too. Businesses with a good plan for segmentation, targeting and positioning have already conquered half the battle of marketing and reaching out to their potential customers.
A good case in point is the activities… 2001 Words 9 Pages 3. Demographic segmentation in Nike is based on occupation, age and a gender; Psychographic segmentation focus on interests, lifestyle and values; Behavioral segmentation focus at brand loyalty, the intended use of the products and services and the beneficiary of the products and services Strasser, 2003. Others constitute designers and athletes etc. Retrieved November 02, 2013, from Google. Andre Agassi, Athletic shoe, Bill Bowerman 1182 Words 4 Pages sheer volume of trade, interaction and risk give what we now label as 'globalization' a peculiar force. Particularly through its web site, Nike tries to customize its products in order to increase customer loyalty. Starbucks is found all around, particularly… 1530 Words 7 Pages Company Introduction, Market Segmentation, and Product Positioning Student: William David Wilson Professor: Dr.
The major realization has been the fact that major investments in marketing are not essential to achieve the desired outcomes. The importance of segmentation is to understand the customer needs and wants, right product, in the right place at the right price with the right promotion. They have known for a fact that brands like them who can feel the choices and bring the right products to the market have a better probability of convincing the investors. Upon Graduating, Knight felt that high performance running shoes could be produced in. However, marketing today is more that an advertisement for goods and services in an attempt to attract new business.
This way the right value proposition is delivered to each business segment. Demographic Segmentation is based on variables such as age, sex, family size, family life cycle, income, occupation, education, religion and nationality. The use of this new media has become very imperative and important for Pakistani companies as well, marketers and entrepreneurs also understand the importance of this media in Pakistan also. Therefore, market segmentation is an essential element in marketing strategy and have impact on the various aspects in organisations Weinstein, 2004. The company was founded in 1962 as Blue Ribbon Sports by Bill Bower man and Philip Knight, and officially became Nike, Inc.
It is a strategy that involves dividing a larger market into subsets of consumers who have common needs and applications for the goods and services offered in the market. The company takes its name from Nike, the Greek goddess of victory. Nike is the leading maker of athletic shoes, equipment and apparel. Nike has adopted a code of conduct for ethical practices but it continues to outsource production to local companies in other countries that openly flout such norms. Nike and Precision Cast parts are the only Fortune 500 companies headquartered in the state of Oregon. They do a good job of reaching out to both sexes very effectively.
Nike produces a wide range of sports equipments such as running shoes, sportswear, football, basketball, tennis, golf, etc. Also, high-tech image has always been associated with Nike products Innovation The Nike brands always associate with. Nike uses different advertising models depending on the segment in the target market. They were able to appeal to the global athlete by using the same idea of surpassing limits. Nike has successfully moved their brand to be ubiquitous in nature, which has something for everyone and has slowly shifted from a product focus to attitude focus.