...University of Iowa Tippie College of Business 03 April, 2016 Nike Segments Consumers by Athletes and Non-Athletes In a time when most things are no longer in simple black and white, Nike remains binary by segmenting its consumers into two distinct, opposite categories: athletes and non-athletes. While these segments are particularly broad, there’s a reason for it: it would be impractical to target the two groups in the same way. To successfully reach the company’s target markets, Nike employs differentiated marketing strategies. Athletes are mainly targeted with one of Nike’s major marketing strategies: the “hero athlete” (Kalb). The company pairs up with prominent athletes to endorse their brand. Athletes will then wish to be affiliated with these sports figures, so they will go out and buy Nike footwear to accomplish this. Contrastingly, in order to successfully target the non-athletes, Nike employs ad campaigns to inspire and motivate them to continue working hard. Around the London Olympics in 2012, Nike launched a new campaign with ordinary people enjoying themselves in their respective niches. The campaign was titled “Find Your Greatness,” and it included slogans such as, “Greatness doesn’t need a stadium.” This appealed to everyday citizens, because if someone else just like them can enjoy doing something that makes them feel great, then they can, too (Alexander). Athlete Consumer Segment The athlete segment is comprised of athletes that participate in all sports at...
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...1.0. Introduction Nikes goal is ‘to bring inspiration and innovation to every athlete around the world’. Therefore, has continuously been putting our efforts to inspire people all around the globe to get fit and become the best athlete they can be. This Report will represent a number of facts and statistics regarding Nike and the sports industry. As the demand for technology and new innovations of products increases, it is Nikes duty to meet the needs and wants of their customers. Nikes mission with this report is to identify what their customers wants, what is missing in the market and how Nike can motivate and encourage everyone to become ‘the best athlete they can be’. This investigation will be carried out over the duration of one year before Nike releases a new product into the market. 2.0 Environmental Scan 2.1. Nikes Organisation In order to fully understand what Nikes customers want, Nike must first consider their strengths and weakness of the company. It is important to minimize the weakness and maximise the strengths and advantages of NIKE. Another aspect that Nike needs to consider is the opportunity and the threat that Nike is facing. (Appendix A for full table) (Nike Facts (SWOT) Strengths analysis, 2008, Randy Peterman, Reference 2) Nike main strength is its ‘Swoosh’ logo. This logo is recognisable in at least 160 countries worldwide. With the growing demand in technology Nike has the opportunity to expand their market and response to this demand...
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...Director Nike, UK Subject: A study of changes in the Sportswear market in India in the past decade with focus on footwear sector. Analysis and suggestion about the marketing techniques that need to be implemented for the launch of a new product. The study also includes formulating a Pricing strategy and various promotional measures to be opted by Nike. In today's competitive market, companies always try to introduce different types of products and creative marketing approaches so as to showcase the uniqueness in their products and to survive in the dynamic marketing environments. Nike, the American multinational company is a leading manufacturer and supplier of sportswear, apparel, accessories and services and holds the top spot in supplying athletic shoes and apparel throughout the world. The company, today is among the most valued brands. (Skoloda, 2010) The product is due to be launched in India, which holds the top spot in terms of being among the fastest growing economies in Asia and is the most preferred markets for multinational companies. Indian economy is growing at 8.8%, which is among the best in Asia. (Nobrega & Sinha, 2008) Changes in the Sportswear market over the last decade: As Isaac Asimov once said “The only constant is Change” so is it. The current markets are ever changing. Philip Kotler & John Caslione (2009) state that “Turbulence is the new normal”. Companies introducing new products or investing into markets do not just...
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...Under Armour is on track to take on Nike; at least in the Sports apparel segment of the market. In 2013 Under Armour had a 14.7 percent share of the US market for sports apparel, compared to Nike’s 27 percent share. Even though Nike is ahead, Under Armour is fast encroaching on this segment that Nike currently dominates, the numbers bare witness to this. Under Armour has been increasing its share of the market for sports apparel consistently. In 2013 it was 14.7 percent, in 2012 it was 12.7 percent, and in 2011 it was 11.1 percent. This increase shows that Under Armour has something that consumers are looking for in this market. I’m not concluding that Under Armour is going to crush all of Nike’s businesses, what I do see happening is Under Armour slowly encroaching on a segment that Nike currently dominates, and if their percentage share of this market segment continues to rise, then it might give Nike a run for it’s money. Also Under Armour has been able to create a niche market for itself with their synthetic performance wear, the company already controls 60 percent of this market. This is big considering, Nike and Adidas have both tried to enter this market, and Under Armour has held its position. Whether or not Under Armour can take on Nike on overall revenue and profitability is unlikely, at least in the short term. Nike is just too global of a company, and is an established force within the athletic footwear and apparel market. In 2013 Nike made $16 Billion globally just...
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...Nike Air Got U KiCks Joshua Gayle Strayer University Instructor Melody Kelley Marketing Management March 13, 2011 Identify the marketing segment for the product and explain why this segment was selected; The product is a called (Nike Air Got U KiCks) and is a branch off from the Nike Air Jordan Brand line. The segment was selected because the product fits the need in the market. The product is targeted to specific identifiable groups of individuals, families, firms, or organizations, sharing one or more characteristics or needs in an otherwise homogenous market. Market segments generally respond in a predictable manner to a marketing or promotion offer. Nike is a major sportswear and equipment supplier based in the United States, and is the world's leading supplier of athletic shoes and apparel. Nike markets its products under its own brand as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding and subsidiaries including Cole Haan, Hurley International, Umbro and Converse. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high profile athletes and sports teams around the world, with the highly recognized trademarks of "Just do it" and the Swoosh logo. Nike Air Got U KiCks has been chosen to be launched because of its design and its marketability. The product design is based on convenience, because of the concept. The concept is model around several different...
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...heavy competition to be a market leader in developing economies, there are quite a few issues to be noted. a. Losing market share in China – Li Ning. It is worth noting that Nike does not have a Chinese online website store to facilitate customers to come online and learn/buy Nike’s products. b. Price sensitivity – Developing markets are generally price sensitive markets. Nike’s premium and high quality brand image doesn’t sync with the expectations of the customer. In other words, the differentiation strategy might not bring as good results as it had brought in the USA. 3. Significant reliance on IT and sophistication in managing supply chains. Nike is heavily dependent on information technology systems across our supply chain, including product design, production, forecasting, ordering, manufacturing, transportation, sales, and distribution. Nike’s ability to effectively manage and maintain our because the product design and innovation forms the backbone of the company. Nike success 1. The key reasons for the success of Nike are associated with its global brand promotion. Due to its extensive advertising campaigns the Nike’s brand is known in almost every household worldwide. 2. Nike (now, called the unofficial sponsor!) has generated the most buzz online in the lead up to the World Cup. Much greater than Adidas, it’s arch-rival and official sponsor. Coca Cola, Sony, Visa and other FIFA partners are lagging far behind. 3. Nike shoes and other accessories...
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...Market segmenting is the process of dividing the market into dissimilar, distinctive groups of people who have similar needs to be satisfied, alike wants and behavior, or who might want same products & services. The process of segmentation is supposed to be performed by each company being interested in creating and successfully implementing marketing mix, which implies product development, placement, promotion and choice of appropriate pricing strategy. Markets can be divided depending on a number of wide-ranging criteria. Variables that are commonly used for segmentation are geographic (region, country size, climate etc.), demographic (age, gender, family size, religion, language etc.), psychographic (personality, life style, attitude etc.), behavioral (benefit sought, brand loyalty, decision making unit etc.), and technographic (motivation, usage patterns, standard of living etc.) ones. Successful segmentation requires the following: segments have to consist of members that are similar to each other; segments have to be distinctively different from each other; segments have to be computable and sizeable; segments have to be reachable and actionable; target segment has to be big enough to be financially valuable. It is important to mention that the process of segmentation is different from that of targeting, which means choosing among the segments those that are worth addressing. Target markets are those segments of the general market that the company chooses to promote its...
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...Executive Summary NIKE is the world's leading sports clothing and footwear designer, marketer and distributor. The company is established 45 years ago and it produces and sells high quality sports clothing, footwear, equipment and accessories for a range of sports, fitness activities and leisure mainly. NIKE is a multinational company, which runs and develops its business activities globally and sells its products in more than 160 countries according to NIKE Corporate Website. NIKE owes its success and best performance on the global market to the high quality and innovative products that it produces and to its strong USP, brand positioning and direct to consumer channels. Related to the impressive performance and identified strong growth opportunities for the NIKE Brand portfolio the company objective is to achieve a revenue of $ 24 -25 billion for fiscal 2015 stated in report for 2011, which is more than the target of 23 $ billion announced in 2010. (www.nikeinc.com, 2011 ) Nike faces strong competition from the German sportswear maker Adidas and Puma globally. (Datamonitor Plc., 2011 ) Identifying market opportunities and key marketing strategies helps the company to achieve its marketing objectives – profit. Analyses on the Bulgarian market reveals a demand for sportswear and footwear among professional sports players and all the amateurs involved in range of sports and fitness activities and people who wear sports clothing and snickers for leisure , can...
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...Nike Marketing Analysis 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 brand to attract customers to their stores. Nike gained a high level of publicity and increased its appeal to both men and women when it signed famous athletes like Michael Jordan and Venus Williams (Etzel, Walker, and Stanton). Further exposure was gained when Nike promoted its brand near major events, giving the impression that it partly sponsored the events. It also increased its sales promotion through the sponsorship of sporting events and collegiate teams. It gained exposure in extreme sports through cooperative advertising when it partnered with a skateboard manufacturer for the purpose of developing skate shoes (Etzel, Walker, and Stanton). Public relations were negatively affected by allegations...
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...the Nike Swoosh is recognized around the world. This is the result of more than 40 years of work and innovation. It signed the first athletes to wear its shoes in 1973. Early on, Nike realized the importance of associating athletes with its products. The partnerships help relate the excellence of the athlete with the perception of the brand. Through focus groups and surveys, Nike discovered the pyramid influence, which shows that the mass market can be influenced by the preferences of a small group of top athletes. After it realized this effect, Nike began to spend millions on celebrity endorsements. The association with the athlete also helps dimensionalize the company and what it believes in. With Nike, this was, and remains, extremely important. It wants to convey a message that the company’s goal is to bring innovation to every athlete in the world. Nike also uses the athletes to design new products by attempting to meet their individual goals. Explaining Nike’s strategy of celebrity endorsements, Trevor Edwards, vice president of U.S. Brand Management, says that the sports figures, such as Ronaldo, Michael Jordan, and Tiger Woods, who have endorsed Nike brands, all have represented excellence in some way. Nevertheless, the athletes also have a personal side, such as their drive to win or their ability to remain humble. All these qualities speak something about the Nike brand; this not only benefits the brand, but also helps to define what the Nike brand...
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...target market for Johnnie Walker is Upper-Middle classed men. Johnnie Walker has been focusing and producing red, blue, black, and gold label blended Scotch whisky. Johnnie walker uses psychological target segmentation to further identify its market. Using class, women and success as goals for the seduction of average whiskey consumers. 2- Positioning: A kick-start to Johnnie Walker's recent success stems from the decision to more clearly define its positioning target. The brand was one of the first alcoholic beverages to dig deep into customer insights resulting in its “Keep on Walking” campaign and a new direction for the brand. That direction was built around the idea that men continually face challenges in the journey of life and that the journey is as important as the destination. The initiative tapped into an emerging sense that success was not marked by status, but rather personal development. 3- Opinion: In my opinion, Johnnie walker is the most known brand regarding the whiskey industry. As for their marketing strategy, I believe it is really creative and innovative; it reaches to all the people as a motivation to keep on going. The prices are more than fair, since there are many different labels to suit everyone’s needs and their promises are worth the money!! Brand 2: Nestle 1- Targeting segmentation: Market segmentation reveals the firm’s market opportunities. Then the firm sort market targeting by evaluating the many types market segments and deciding...
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...from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student's Signature: Brizaida Ribalta, Jessica Halsey and Shereen Hijazi ***************************************************************** Instructor's Grade on Assignment: Instructor's Comments: Table of Contents Executive Summary 4 Company Description 6 The Origin of Nike, Inc. 6 Today’s Nike 7 Mission and Goals 8 Core competencies 10 Situation Analysis 11 Macro-Level External Environmental Factors 11 Competitive Environmental factors 12 SWOT Analysis 15 Competitors 16 Reebok 16 Adidas 17 Puma 17 Target Market 19 Segmentation 19 Target Marketing 19 Marketing Mix 20 Product Strategy 20 Distribution Strategy 21 Promotion Strategy 21 Pricing Strategy 24 Customer Relationship Management 24 Budget and Monitoring 26 Summary and Conclusions 28 List of References 30 EXECUTIVE SUMMARY Nike is a leader in sportswear providing high quality innovative products. Our mission is to continue pushing boundaries with innovation thinking and product development. We create products for...
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...NIKE, Inc NIKE, Inc. (NYSE: NKE) is an American multinational corporation giant who sells high quality footwear, apparel, and equipment accessories and service. HISTORICAL EQUITY PERFORMANCE: Nike has always been riding the wave and moved from strength to strength. If we look at the trading charts, obviously, there have been decline periods with Stock Market falls but that has been few and far between. Upon close observation, the only lull period in this century the stock has seen would be between 2000-2002 and the year 2005, except that there has been terrific performance of the company on the stock exchange. Mr. Mark Parker, Nike’s President and CEO said in a statement that "Fiscal year 2015 is off to a strong start. Our connection to consumers and ability to innovate, combined with our powerful global portfolio, is a complete offense; Nike has never been better positioned to realize our tremendous growth potential." (cnbc, 2014) After many years of stellar growth, the indication has been coming from the management that there is a bump up from the Football World Cup. As the company reported its first result after World Cup, the company indicated that it has found new growth pillars and they would be able to bank on that. Results in nearly all segments and geographies improved. Credit Suisse (CS) upgraded the stock and increased the price targets to $100. (Market watch, 2014) It's taking so much market share from competitors that Adidas's CEO even had to defend his company...
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...ADVANCED MARKETING STRATEGY 362MKT Example on Nike Dr. Eric Chu 362Mkt‐2012 Example Company Background • NIKE, Inc. is the world’s leading innovator in athletic footwear, apparel, equipment and accessories. The mission of Nike is to bring inspiration and innovation to every athlete in the world. 362Mkt‐2012 Example Product Market • Garment Industry – The garment industry consists of different categories of wearing apparels that serve both beauty, comfortable and body protection. – Product categories could involve men wear, kids wear, sports wear, ladies, … 362Mkt‐2012 Example Market Audit (1) • External Environment – By STEEPLE • Social factor: people are more concern with health, fashion and beauty. Diverse segments are emerging in the garment industry. (Opportunity) • Technology: different material by nano technology could help to build more comfortable garment for consumer market. Different material available lead to better design for manufacturers. (Opportunity) • Legal: pirated products costs a lot of money for litigations in the industry. (Threat) 362Mkt‐2012 Example Market Audit (2) • External Environment – By 5‐forces • Supplier: supplier marketing in the garment industry are mainly small low costs manufacturers in the area and many suppliers are available. Suppliers bargaining power to the industry is low. (Opportunity) • Buyer: Information transparency increase and there are lot more competitive products for customers to choose...
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...growth and it sustainability in the market. A brand’s essential mission is to contribute to the consumer’s happiness and to boost sales. Our contemporary society is characterized by hyper-consumption (Lipovetsky, 2007). The individual is no longer seduced by objects and their discovery; on the contrary, he is attracted by the intimate consumption of products, by a personalized type of happiness and by a value communication of brand .To analyze brand strategies, it is important to analyze the external and internal environment affecting the organization by studying the trends in the market, strengths, weaknesses and core capabilities of any organization. Increasing competition has made it mandatory to focus on customer retention(Hong and John,2010)An organization’s success depends on its strategy decisions and to be successful, it is important to implement out of the box strategies. This report examines the sportswear industry and its major players’ marketing activities and strategies within a competitive environment, which will then lead to a strategic brand direction for a brand. Favorable trends have been observed in the sportswear industry, creating great opportunities for brands to capitalize on. The sector is observed to be highly profitable in the upcoming years with fast catching trends. It is a highly competitive market with majors players such as, Nike and Adidas leading the sector. Other...
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