The Role of Brand in Consumer Behaviour - Case Study Example

The paper "The Role of Brand in Consumer Behaviour" is an engrossing example of a case study on marketing.

Customer Traits:

For a successful and experienced business like Nike, maintaining customer loyalty through clearly understanding the customer is the key. This is done through having a clear understanding of consumer´s geo-demographics, psychographic, and other personality traits. In a business where Nike faces direct competition from brands like Adidas, Puma, Reebok, and indirect competition from other shoe wear like Converse, Sketchers, Timberland, etc, differentiation strategy is very important. Nike has been successfully maintaining its differentiation strategy with the help of Brand Ambassadors, massive campaigning, and producing differentiated products like Nike Air Max Shoes.  

Nike´s Air Max Shoes possess a highly competitive advantage due to its differentiation strategy in bringing in a new air technology that provides comfort, long-term satisfaction along durability in the brand (Berthon et al, 2011).  

A clear customer profiling and segmentation for Nike Air Max is described below:

Customer Segment:                                                         

The idea behind Nike Air Max was to create comfortable shoes for athletes for sporting and casual users' casual wear purposes. If we go along with the tag line of ´Just Do It´, it refers to all those people who have a drive and motivation to excel in life, be it sports, and be its other aspects. But since sports are considered to be a true demonstration of one´s skills, abilities, and passion, the excellence aspect in Nike Air Max Shoes is shown by athletes (Goldmen & Pepson, 1998).

Target Market:  Target market is explained on the basis of geo-demographics (geographics and demographics), psychographics, and brand positioning:

Geographic Segmentation: Nike Air Max, like all other Nike assortments, is a global brand therefore there is no geographic boundary. With the help of franchises, company-owned outlets, exports, and online sales, Nike Air Max is available worldwide to its broad target market.  

Demographic Segmentation:

Age: The age segment includes young people, mainly including teens and youth. However, the purpose and spirit of Nike as a brand is for the people who are young at heart and have a passion to excel, the demographics in terms of age can be extended to 18 till 40 years (Rubini, 2010).

Sex: The market for Air Max includes both Males and Females.

Income Level: Nike, as compared to other snicker brands and shoes, is an expensive brand, therefore the income levels for targeted customers include middle-upper to upper-upper class.

Psychographic Segmentation:

Psychographics determines the consumer's inner, intrinsic nature and personality which are external factors and situations and here in particular, with purchasing. Some factors that apply in this case are:

Lifestyle: In terms of Nike Air Max, consumer psychology is the need to stay comfortable and enjoy the experience, be it in sports or any other field. Therefore for Nike, it is critical that it targets the customer's need for satisfaction and comfort during their experience to excel in any aspect of life.

Personality: As discussed, Nike Air Max is a brand for people young at heart and full of spirit, therefore it aims at creating such image by advertising celebrities like Rafal Nadal, Christiano Ronaldo, Ashley Cole, and Mario Balotelli.  

Considering Maslow´s hierarchy of needs with respect to personality, the target market of Nike Air Max falls in the category of ´Self Esteem´ needs and ´Self-actualization´ needs. It is when people want to be associated with Nike, due to its brand name and high-class product assortments, they also want to self-actualize by aiming to reach the zenith by excelling in their field (Fortin & Uncles, 2011).

Positioning

Positioning defines the perception of the brand into the minds of consumers. Therefore even though different marketing, branding aspects work in the background, similar positioning is formed into the minds of consumers.  On technical grounds, the positioning of Nike Air Max is based on the unique technology of storing air pockets into the shoes in order to give more comfort to the users (Neale & Fullerton, 2010). This translates into the minds of consumers as unique, techy shoes that give style, separates from others along with giving comfort and ease.  Nike Air Max has been successful at maintaining this positioning into the minds of consumers as they consider the brand as different and sporty as compared to any other brand from direct competitors like Adidas and Reebok and they treat Air Max exclusively.