Nike multinational company is known all over the world. The company produces quality and innovative sportswear and equipment. Nike has become successful because of its highly successful marketing strategies. The marketing strategies involve market segmentation, targeting, and positioning.
Market Segmentation of Nike
All customers do not behave in the same manner. They have unique preferences and needs. Therefore, the entire market has to be segmented to identify the segment that is most appealing and has the most opportunities. Proper segmentation is the best way to ensure advertising, marketing, and business success.
In the case of Nike, not all people prefer the same sports equipment. For instance, trendy sports shoes do not appeal to elderly people. This is why Nike groups the entire market according to the different needs. Nike has come up with segments based on these four categories- demographic, geographic, behavioral, and psychographic variables.
Nike has used the demographic variable because it is quite easy to evaluate these characteristics in people. The characteristics include people's gender, age, and financial levels. Nike has then classified its products based on these characteristics. For instance, there are shoes made for children and those made for mature people. The age group that Nike sells to is between 11 and 55 years.
In the analysis of the financial levels of people, Nike has made shoes of different prices. People of different incomes can buy according to the price levels. Furthermore, the company sets up discount offers, promotions, and subsidized prices in some outlets and areas. Nike puts up these discounts on certain specified dates or special occasions. The discounted prices are aimed at appealing to the huge customer base to purchase Nike products. The customers who cannot afford to buy at normal prices have a chance to buy the products at discounted lower prices.
Nike has focused on the geographical element by ensuring that there are numerous physical stores around the world. The major towns in different parts of the world have highly stocked Nike products. This makes it easier for the customers to get Nike products. Furthermore, Nike understands that people of different areas have different cultures and behaviors. Therefore, there are different Nike products for the different countries catering to the different needs.
The promotional techniques used by Nike differ because of the geographic element. For instance, in England, the promotional Nike commercials focus on football and rugby, while in the United States, the commercials focus on baseball and soccer. In India, the Nike commercials center around promoting cricket sportswear and equipment. Nike has segmented the the market completely and mainly focuses on the urban areas.
Nike uses psychographic segmentation to focus on customers according to activities, their personalities, lifestyle, and overall interests. In terms of their activities. Nike focuses on the people who enjoy engaging in sports. The company is passionate about sports, and it makes products suitable for sports lovers. The company also endorses athletes and people who love fashion. This creates a unique connection, and as a result, it attracts people to buy its products. This is a sport-centric marketing strategy.
Nike uses psychographic segmentation to build loyalty among the sporting community. The entire mission statement of Nike states that the company "aims to bring innovation and inspiration to every athlete in the world.". Nike has promoted campaigns such as "Run with me" to appeal to athletes and make them loyal to the brand.
Nike uses behavioral segmentation by giving different beneficial sportswear and equipment. This involves the designing of products that offer comfort for players and clothing that is quite innovative and attractive. Everyone buying Nike products feels like a complete athlete. This increases customer engagement and promotes a positive impact on the purchasing behavior of people.
Targeting of Nike
Targeting involves careful selection of the market segment that is most profitable. Nike first targets all three categories – Males, females, and children aged between 11 and 55 years. Nike designs its products to target men who love to go to the gym, run, train, play games, and perform general lifestyle exercises. For women, Nike targets those who love to engage in exercises like yoga and those who love fashionable sportswear. For children, Nike has designed products that target young athletes. Nike products come in numerous colors and appearances, and they offer satisfaction, pleasure, and enjoyment.
Positioning of Nike
Nike has set up a strategic positioning in today's market. Positioning is all about strategically placing a company in the market to ensure that it is competitive. Nike has positioned itself as a market leader in the sportswear market and the sports equipment industry. The company produces premium, high quality and highly innovative sportswear and equipment.
Nike has designed a specific logo to showcase its brand image. The swoosh logo is given the logo "Just Do It" to connect with the achievement of prominent athletes. This has built a significant feeling among athletes and customers who want to be associated with success. This has made the company unique among its competitors. Furthermore, Nike products have been positioned as trendy outfits. This has made the company to be associated with fashion and lifestyle. People now have the conviction that Nike offers the best option when it comes to fashionable sportswear and equipment.
Nike segmentation, targeting and positioning is illustrated in table below.
11-55 years old
Males, females and children
Sports fan and enthusiasts
High income individuals
Ideal choice fir sports products
A strong brand connection with prominent and successful athletes
Interests and opinions
Loyalty of customers
Frequency of buying
Let's take a look at Nike's Segmentation, Targeting, and Positioning mind map.
Nike has grown in the market to become a sure leader in the sportswear market. The company excels because it has set up very innovative segmentation, targeting, and positioning in the market. Nike has segmented the market according to demographic, psychographic, and behavioral variables. Demographic segmentation focuses on people of 11-55 years, sports fans, men, women, and children, and the high-income section. In geographic segmentation, Nike is sold in urban areas on the international market. For psychographic segmentation, Nike focuses on the personality, lifestyle, activities, interests, and opinions of people. Behavioral segmentation involves building customer loyalty. Nike has positioned itself as the ultimate leader in producing sportswear and equipment.
Nike has implemented segmentation, targeting, and positioning and acquired huge success. Nike has segmented the market and now produces products that are suited for the different market segments. There are numerous Nike products to suit the different customers. Nike has targeted the people who love sports, the athletes, and the people who love fashionable wear. The multinational company has positioned itself as the best producer of sportswear and equipment.
The STP strategy is so informative as it analyzes the marketing strategy used by the multinational company, Nike. Nike focuses on innovative and quality sportswear and equipment. You can download the full report below.
Download the PDF report
It is highly recommended to use the PDF Agile software when you want to make PDF documents. The software is easy to use, highly reliable, and easily affordable option. Use the software for all your PDF needs.
SEGMENTATION, TARGETING AND POSITIONING STRATEGY OF NIKE & BUYING DECISION ANALYSIS
Market Segmentation, Market Target, and Market Positioning of Nike Company
Nike Market Segmentation, Targeting, and Positioning
Nike target Market Analysis – Demographic Segmentation Marketing Goals