Nike Market Segmentation - Case Study Example

Nike market segmentation Market segmentation is a very important tool in marketing because it will ensure that more sales are achieved. Consumer markets of footwear are very competitive and considering mass marketing to market a brand like Nike can have negative effect on ROI in regards to advertisement. The market segment of Nike cut across factors such as geographic, demographic and psychographic. Geographically Nike has been able to spread its market across 160 states around the globe. Demographically Nike has also taken into consideration factors such as age and income of the potential buyers of its products. Finally the market segment of psychographic with factors such as attitudes and lifestyle can be considered as the major market segment of Nike’s strategy. It is with no doubts that many people are sports enthusiast especially football which is estimated to have over one billion fans. It is for this purpose that Nike has embarked to invest heavily on athletic superstars to market their products. In 2013 when Cristiano Ronaldo won the Ballon d’Or, which suggests that he is the best football player in the world. Nike didn’t lose the opportunity to invite over 250 journalists around the globe with an aim of making these journalists see Ronaldo’s new Nike shoes which will in turn boost the attitudes of potential customers. Bill Bowerman who is one of Nike co-founders once said that anybody who has a body is an athlete. In order for Nike to effectively reach the different market segments it has there numerous products that have been created. Nike’s product line include shoes in sports such as basketball, dance, action sport, soccer, golf, tennis, volleyball, track and field, training shoes and even cheerleading. Though Nike is so much branded as sportswear, most youth will purchase it for fashion purposes. The following is Nike’s footwear products and the manner in which they are market using market segmentation. Nikes Trash Talk Shoe This type of shoe has been manufactured to target male ranging from 25-35 years of age. It is also very convenient for basketball and any person who is conscious about the environment. With today’s sentiments and mobilization from non-profit organization and the governments on the importance to conserve the environment this shoe has achieved this purpose. The athletic shoe is eco-friendly as it is manufactured from scraps of leather and artificial materials and attached to recycled rubber sole. With the campaign of let’s go “green” many individuals are looking forward to all the possible ways to preserve the environment. This is a psychographic aspect of segmenting the market which is influenced by attitudes and lifestyle of conserving the environment. The promotional method that was used to reach this market segment was by the use of basketball player Steve Nash who wore them in the 2008 NBA all-star game; it was also featured in television commercials such as ESPN. Nike’s Air Jordan The main objective of these sneakers was to optimize the performance of basketball. This footwear is suited and targets male who are aged between 17-18 years. Basketball is also a sport that has many players and enthusiast fans, any serious basketball player or fan will definitely purchase this type of shoe. The ideology created to the wearer of this shoe is the fact one will improve on his game. The marketing of this shoe is associated with top NBA players, which will make any basketball diehard fan or player want to purchase this shoe. The shoes are flashy the reason as to why youths who are obsessed with lifestyle will desire to have them. Nike LunarMax This type of shoe product targets women who are between the age of 25 and 35 and jog or run outside regularly. The product itself is light weighted to ensure comfort and support while one is on the running track. The aspect of color has not been ruled out due to the fact that women are very fond of colors. While promoting this product Nike emphasize that it is suitable for athletic women who wish to live a healthy lifestyle. For this reason most of the advertisements are made in women’s magazines such as Runners World and Cooking Light as well as on television during the women shows such as ‘The Biggest Loser’ Nike Jr Mercurial Victory TF (10c-cy) Soccer Cleat The market segment for this Nike product is for parents who have daughters between the ages of 5-12 years. This soccer cleat is very efficient for lawn field indoors as it is made of elastic leather which will give a good feel of the ball. It also comes with appeasing colors that will look cute on the kid’s especially young girls. The mode of advertisement that is used to ensure that this market segment of young girls who are enthusiast about soccer is through children’s TV shows. Internet technology is with no doubt changing the face of business, for this fact market segmentation is also adapting to the technological changes caused by the internet. Through the use of the internet a potential customer can visit the Nike website and order a particular shoe customized within his taste. This feature allows the customer to choose the color, design and even impede his/her name on an Air Jordan shoe. The market research that the Nike Company uses to survey the market is very effective for the purpose of reaching the target market. The influence that sports personalities have on their fans is very vast that any fan will like to be associated with his/her favorite sports personality. Each target group that is segmented uses different type of mass media. The advertisement that is held about Nike’s shoes on the television and the endorsement it has make the company reach a wide market. The advertising mechanism put in place are so enticing that the segmented market will want to but the footwear. Reaching the target market can be agreed upon as a very challenging pursuance and this has made Nike to use all forms of advertisement such as billboard, top notch magazines, internet and E-commerce which enhances globalization. The manner in which potential customers can identify themselves with a brand is very critical in matters relating to market segmentation. A particular market segment should be in a position to identify them with a particular brand as this will increase brand loyalty. Another benefit of brand identification and market segmentation is the ability to cope with competition from other manufacturer who produces similar brand. If for instance, a football club like Manchester United can identify itself with Nike, why not Manchester United’s fans. It be thus said that within the target market of Nike there are three segments. From Nike Incorporation there are different levels of athletes which it stratifies as compete, train and express. Compete is a level that can be associated with professional athletes. These athletes can be from college level or professionals who are so much concerned in competing. The other level of segment can be described as train, which means is for the athlete who are continuously training. Final the level of express can be described as those athletes that are concerned with lifestyle. These are the group of people who are so much concerned with the athletic culture. Due to the marketing strategies that nike has put in place especially market segmentation it is the sole reason that it is very successful. The quality of Nike’s products cannot be compromised, the reason why many sports superstars agree to be endorsed by Nike. Works Cited Nike, referenced 28 October. 2014. < http://www.nike.com/nikeos/p/nike/en_US/?sitesrc=usns&ref> Nike Biz, referenced 28 October. 2014. < http://www.nikebiz.com> Nike Store, referenced 28 October 2014.2010. < http://store.nike.com/us/en_us/?&sitesrc=uslp> Read More