Market Segmentation, Market Target And Market Positioning Of Nike Company - Essay Example

Nike provides services that enhance the brand and improves the general customer experience. With the headquarters in Oregon, Nike has a synchronized management system in all its outlets to ensure reliability from the customers. With the brand name symbolizing the Greek goddess that represents victory, the products have enjoyed a wide reception both locally and internationally. The three key forces used by Nike are bound to change in the future as the market trends are highly turbulent. The efforts by competitors like Adidas will additionally change the market and create new gaps for the industries to fill.

The major trends that affect marketing may include economic factors and undercutting by competitors. Unique Features of Nike’s Core Marketing Strategy The marketing strategy for Nike revolves around the achievement of its market goals. Nike is particular about market growth, and it has laid strategies that elevate the brand above its competitors. Using brand ambassadors is a major strategy that has won multiple consumers to the brand. The strategy of a pyramid influence has successfully introduced customers to the products and services, and it makes the company highly reputable.

 Using athletes to promote the brand is a marketing strategy that has materialized into sales and overall acceptability. This strategy is effective, primarily when Nike uses popular athletes. These personalities are highly influential as their participation translates to numerous purchases across the outlets. The “pyramid influence” is risky as it relies on the profile of athletes to build and develop a product. It means that when an Athlete fails to perform in their capacity, this lowers the preference for the products that the athlete presents.

Another setback is that when brand ambassadors are involved in a scandal, the market fails to disconnect the athlete from the products that they present. It is recommended that Nike should divert is strategies to accommodate various mechanisms that are more reliable and permanent. How Does Nike Deal with the Competition? Being a competitor against Nike, Adidas has to evaluate the shortcomings of Nike and maximize on these shortcomings to elevate the brand. Adidas is a highly-competitive brand that provides the market with a variety of juicy products.

Using technology and innovation would enable Adidas to overtake Nike and increase its customer base. Adidas must investigate on the styles that are highly preferable among the segments and produce them. Nike’s main competitor, Adidas, is three times smaller than Nike, and this gap in the market presence challenges Adidas to modify their brands. The modification will enable Adidas to register growth and profitability on implementation. This positioning inspires Adidas to listen to the customers and create stylish products that are more affordable than Nike’s.

This strategy will meet the needs of trendy customers who have a smaller budget but have unique tastes in sports apparel. Adidas can increase its presence in major outlets that consume the products to enhance a strong relationship with the consumers. These strategies will elevate Adidas and secure a larger market share in preferred outlets. The performance-based yoga and fitness outfits are significant products by the company, and the company seeks to evaluate the competitive forces counter-acting the performance of the products.

The marketing analysis for Nike is an evaluation of the company’s relationship with the macro environment. By considering the implications of its relationship, Nike will enhance its positioning by maximizing on its strengths and opportunities for maximum profitability. Nike has strengths that lie in its high-quality products that its consumers look for the sports apparel by Nike are waterproof, and this feature keeps water from touching the body. The membrane technology gives the wearers comfort as it drains water easily and keeps the fabric from soaking.

When customers wear products from Nike, they are more confident as the apparel from Nike keeps bad odors away by fighting bacteria externally. Another strength enjoyed by Nike is its ability to market its products through different avenues. Apart from the multiple chain stores for sports apparel, Nike has an active e-commerce structure that coordinates marketing forces locally and internationally. Weaknesses are part of Lululemon Athletica business environments as the company is limited to specified suppliers who provide the materials for its sophisticated fabric.

Third-party suppliers often fluctuate or cause delays, and this reduces the quality of its products. The fact that that are little or no alternative suppliers of a similar caliber makes the company weaker. Preservation of quality lies in the hands of its suppliers, and the factors of production rely solely on rare manufacturers. Products made by Nike have opportunities that include the chance to expand to new territories through e-commerce. The compounded annual growth rates for the organization reveals that online sales account for over thirty percent of its total sales.

The global sportswear industry has been experiencing tremendous growth in its customers, and this is a sign that Nike has the ability to thrive in new markets. The demand for quality athletic apparel has been rising steadily, and this gives Nike the opportunity to devise new strategies that will overtake new markets and secure a large market share. There are threats that Nike has to deal with. The threats include stiff competition from companies such as Nike and Adidas. The competitors are determined to penetrate the fabric technologies, and their breakthrough spells through for Nike.

When competing brands develop innovations in fabric innovations, Nike will be obliged to change its business model to maintain its positioning in the market. The sports apparel market is difficult to penetrate with the challenges associated with product modification hindering Nike from achieving recognition for new products. Any disruptions from the suppliers would lead to business closure for global sports apparel producers.