Target Market of Nike - Essay Example

Case Study of NIKE Table of Contents Introduction 3 Discussion 3 Explanation of target market of NIKE 3 Clarify the different bases for segmentation of consumer markets and business markets 4 Identify six different products and describe the customer segment being targeted. (Two of the products need to be from the business to business market). For each product, explain how and why the customers are targeted 6 Conclusion 7 References 8 Introduction Nike Inc is recognised as one of the most popular sportswear producing brand, operating successfully in the entire globe. This is mainly due to its vision to offer exclusive range of fashionable sportswear at a competitive price in order to amplify its brand image. Discussion Explanation of target market of NIKE Nike Inc mainly targets the young and energetic sports lovers of a country with age group ranging within 15- 45 years. Not only this, it also targets its products mainly to the fashionable and trendy youths of the country with premium life style so as to position its product as a premium one. This might enhance its dominance and power in the market among others and may amplify its reputation as well. Apart from this, Nike Inc tries to develop exclusive products with innovative features after analysing the changing psychology and intention of the customers. It is done to offer the fitness-centric athletes (both male and female) the best possible performance in their sports thereby amplifying its competitiveness in the market. Along with this, such a strategy might enhance the satisfaction rate of the customers as well as customer retention ratio (Mathews, 2002, 467-488). Other than this, Nike Inc always tries to present its target customer, high quality of products at an effective price, in order to enhance its market share and demand. Due to which, inspite of high price or premium brand, the level of loyalty and range of customers is extremely high of Nike Inc among many others such as Adidas, Reebok and Puma. Thus, it might be clearly stated that, the target market of Nike Inc is quite large as maximum extent of the individual or sports lovers crave for its products among others. The entire credit for such an image goes to its internal marketing department that implements innovative technologies and designs within its products (Guillén & García-Canal, 2012, pp. 656-675). Clarify the different bases for segmentation of consumer markets and business markets In order to position its products in this competitive market among other brands such as Reebok, Puma and Adidas, it offers high concentration over the concepts of geographic, demographic, economic, psychographic and behavioural segmentation (Luo & Tung 2007, pp. 481-496). Geographic segmentation- the products of Nike Inc is use in the entire globe by both men and women at the time of various sports such as football, soccer, basketball, golf, running and many others. Demographic segmentation- the products of Nike Inc might be used by energetic and fitness centric sports lovers (both male and female) of varying age groups and income groups. Apart from this, the young kids might also use the products of Nike Inc at the time of their pre-school or inert-school sports activities. Economic segmentation- the products are segmented to the individual with medium to high life style and income groups. By doing so, a wide range of customers might be attracted towards the brand thereby amplifying its prosperity and image in the market among others (Li, 2007, pp. 296-318). Psychographic segmentation- the products mainly targets the sports-centric as well as inspirational or motivational athletes so as to enhance their performance and efficiency in the games (Nike Inc, 2013). Behavioural segmentation- in order to amplify the demand of the products of Nike Inc, the requirements and demands of the customers are to be analysed by the organization. After doing so, the organization of Nike Inc designed products based on utilities such as outdoor, baseball, football, tennis and many others. Apart from this, the products are also designed on the basis of styles such as cleats and spikes, flip-flops and many others. In addition, Nike Inc designs its products offering high concentration on technology such as air max, Nike Shox, Nike free and many others. This helped the organization to amplify its market share and portfolio in the market among other rival players (Kim, 2010). Similarly in case of business market segmentation, demographic, economic and behavioural segmentation concepts are offered more concentration in order to enhance its reputation and equity in the market. Demographic segmentation- due to its extremely inventive technologies and style, it is preferred by both male and female individual of all age groups and varying cultures. This enhanced its profitability and brand value (Nike Inc, 2012). Economic segmentation- due to effective pricing strategy, it is purchased by maximum extent of the fit-centric individual (Beall, 2010, pp. 112-121). Behavioural segmentation- due to its high utility ratio and style, it’s range of sale is quite high among other rival players. Due to these strategies, the rate of total sale and profitability of the products of Nike Inc is extremely high among other existing contenders (Khanna & Palepu, 2006, pp. 60-69). Identify six different products and describe the customer segment being targeted. (Two of the products need to be from the business to business market). For each product, explain how and why the customers are targeted Sports apparels- in order to market the products of sports apparels, the organization of Nike Inc mainly target the sports-centric and energetic customers. Along with this, in order to fascinate and enhance its range of customers, it designs the products in a very trendy and classy way. This is because; it might help the organization to enhance its brand image and profitability in the market among other rival players such as Puma, Reebok and others. Sports shoes- these products are also targeted to the sports lovers so as to enhance their inner inspiration and motivation. Moreover, in order to enhance its market share and demand, it tries to implement varied types of inventive technologies such as air max, Nike Shox. This easily fulfilled the changing demands of the customers (Child & Rodrigues. 2005, pp. 381-410) . Casual shoes- these products are designed in an extremely trendy and fashionable way so as to target the fashion-conscious individual of this age. This also helped the organization to enhance its demand in the market (Bradley, 2007, pp. 223-233). Sportswear- these products mainly targets the sports individual. However, in order to enhance its position, Nike Inc tried to present sportswear of varied colours and styles (Drummond & Ensor, 2006, pp. 342-356). Authentic Nike team products for corporate wear- such type of products are designed keeping in mind, the culture of the organization or brand. These products are targeted the executives or staffs of the organization so as to present a unique feeling among all. By doing so, the level of inspiration of the employees might get enhanced thereby amplifying their rate of performance (ESOMAR, 2008, pp. 434-445). Customized designed shoes- these types of products are mainly targeted or designed for a specific organization or function (promotional campaign) in order to present a feeling of distinctiveness among others. By doing so, the rate of demand of the products of Nike Inc might get enhanced among others (Businesswire, 2010). Conclusion Conclusively, it might be stated that with the help of these strategies, the Nike Inc amplified its portfolio and market share. References Businesswire. (2010). Nike Outlines Global Strategy for Creating a More Sustainable Business. [Online] Available at: http://www.businesswire.com/news/home/20100122005661/en/Nike-Outlines-Global-Strategy-Creating-Sustainable-Business [Accessed on 7th February, 2014]. Beall, A, E. 2010. Strategic Market Research: A Guide to Conducting Research to solve problems. Boston: Harvard Business School Press. Bradley, N. 2007. Marketing Research: Tools & Techniques. New York: McGraw-Hill. Child, J. & S. B. Rodrigues. 2005. "The Internationalization of Chinese Firms: A Case for Theoretical Extension?" Management and Organization Review 1(3): 381-410. Contractor, F. J. 2013. “Punching above their weight”: The sources of competitive advantage for emerging market multinationals. International Journal of Emerging Markets 8(4): 304-328. Drummond, G. & Ensor, J. 2006. Introduction to Marketing Concepts. New York: Cengage Learning. ESOMAR. 2008. Market Research Handbook. London: Sage. Guillén, M. F., & García-Canal, E. 2012. Execution as Strategy. Harvard Business Review 90(10). Khanna, T. & Palepu, K. 2006. Emerging giants. Harvard Business Review, 84(10), pp. 60-69. Li, P. P. 2007. "Toward an integrated theory of multinational evolution: The evidence of Chinese multinational enterprises as latecomers." Journal of International Management 13(3): 296-318. Luo, Y. & R. L. Tung 2007. "International expansion of emerging market enterprises: A springboard perspective." Journal of International Business Studies 38(4): 481-498. Mathews, J. A. 2002. Competitive advantages of the latecomer firm: A resource-based account of industrial catch-up strategies. Asia Pacific Journal of Management. 19 (4), 467-488. Kim, J. (2010). Nike Introduces 2015 Global Growth Strategy. [Online] Available at: http://sneakernews.com/2010/05/06/nike-introduces-2015-global-growth-strategy/ [Accessed on 7th February, 2014]. Nike Inc. (2013). NIKE, Inc. Introduces 2015 Global Growth Strategy. [Online] Available at: http://nikeinc.com/news/nike-inc-introduces-2015-global-growth-strategy [Accessed on 7th February, 2014]. Nike Inc. (2012). Our Sustainability Strategy. [Online] Available at: http://www.nikeresponsibility.com/report/content/chapter/our-sustainability-strategy [Accessed on 7th February, 2014]. Read More