Market segmentation of the Nike company

Nike’s target market for their shoes, clothes and other accessories are males and females between 18 and 35 years old. Nike’s Competitive market has expanded and dominated in the international market. Nike disburses TV ads during professional and college sports events, prime-time programs, and late-night TV programs. A financial analysis helps us compare a company’s current performance with its past performance Gives us an idea of how the entire industry is performing as well as liquidity ratios, profitability ratios, and leverage ratios will give us a good understanding of how Nike, Adidas Group, and Under Armour are performing.

The sportswear industry is dominated by Nike and Adidas, which together hold around eighty three percent of the industry’s market share in revenue (Biddnessetc). Since both have such a high demand of customers they have created multiple distribution centers in the United States and in other countries. To stay ahead of the other industries both companies concentrate on promoting and creating new and innovative products.

In this paper, we present an elaborate analysis of the marketing mix employed by Nike in its marketing strategy. The marketing mix is conducted on the basis of the concept of "marketing mix" which is usually referred to as the "4Ps" as an important means of effectively interpreting as well as translating the marketing strategy into practice as noted by Bennett (1997).A recommendation is also provided.

Today Nike Inc is the largest manufacturer of sports footwear, apparel and equipment with worldwide revenue in excess of $25 billion in 2012 under various labels including Nike, Nike Golf, Converse and Hurley. Seventy percent of the company’s value is derived from footwear and apparel sold under the main brand Nike with Nike footwear commanding a market share

that for the past three years there’s been a decrease in sales which has lead to a drop in

percentage of sales to 83.52% in 2012 from 79.79% in 2011. The declining operational efficiency of the company

During the 2011 fiscal year, Nike seemed to have a down year compared to 2010 as seen in Figure 1.1:

In 1962, Blue Ribbons Sports was established by Bill Bowerman & Philip Knight, became Nike, Inc. on May 30,1972. Nike, Inc. established the Nike swoosh logo and the “Just Do It” trademark. Nike. Inc., is one of the largest publicly traded sportswear, athletic shoes & apparel company with revenues of $19 billion in 2010 (3). NIKE, Inc. headquartered is located in Beaverton, Oregon. NIKE, Inc. sells merchandises through distributors, licensees, and subsidiaries in 120 countries globally. NIKE, Inc. has experienced generous amount of financial and marketing success since the 1960s (Wokutch, 2008). This why I chose Nike Inc., (NYSE: NKE) because of the substantial growth throughout the years.

As the brand name of Nike continue to soar, other companies in the industry; learning from the success Nike has experienced, start focusing more on brand development to keep up with the increasing levels of competition. These companies resort to brand maintenance, which has become the main target in this industry due to product differentiation made by Nike. Nike, being market-advantaged, produces an extensive range of products, through which it gains a balanced level of profits. This has influenced rival companies to initiate a new range of products in their businesses too. Previously these companies had high risks of failing in business, if their single products did not appeal to the market. Due to the impact of Nike’s business strategy, the other companies are also enlarging their product range,

     The Chicago Bulls had won their second National Basketball Association championship in 1997. Michael Jordan was the best basketball player at the time and everyone wanted to “be like Mike”. Jordan was under a contract with Nike for his Air Jordan sneakers. This was great for Nike, because it allowed the company to capitalize off of Jordan’s success. Nike’s revenue for 1997 was $9,186.5 million. This was an increase of nearly 3 billion dollars from 1996. The Chicago Bulls had completed a three – peat in 1998. Michael Jordan was still under a contract with Nike and the company was able to capitalize again with the revenue increasing by $400 million to $9, 553.1 million in 1998. In 1999, the price of Nike’s common stock had risen but its total revenues had fallen nearly 1 billion dollars from the previous year to $8, 7769. Nike’s revenues had increased to $8, 995.1 in 2000 and to $9, 488.8 in 2001. These numbers are for the fiscal year ended May 31.

One of the major contributing factor in Nike’s success is their presence in every major sports events worldwide. Nike has shown its presence in Olympics, FIFA World Cups, Cricket World Cups, Every Major Lawn Tennis Tournaments, as well as Major Cycling Events.

As people are teenagers, consumer will more likely to purchase Nike shoes. It is because young consumer likes the Nike prestige that given they feel proud and believe much in advertising promotion and use internet as the primary sources of information. The sport consumers will preferences is changing into more fashion-oriented. Then, in 90-s the woman’s consumers was dominated the athletic shoes market because of changing their lifestyle. Besides that, the buying tendencies are based on how people are located geographically. Based on the consumer’s location, Nike’s company may divide their market into countries, regions, states or

Nike invested in their brand by getting sports heroes to advertise for their brand such as Michael Jordon, Tiger Woods and the Brazilian football team. This further fuel the products appeal towards the consumers.

The company I am presenting is Nike which was founded in 1965 by the athlete Phil Knight. Nike is a well known brand which is selling its products worldwide and has 36% of the market share.

The growth in the casual market takes place in the non-performance segment. Thus Nike has to adapt to the fact that Nike can also be seen as a