The Market Segmentation Of Nike Catalyst Essay

Skey says, “They clearly have a strong and emotional brand for young people.” Her quote benefits the idea of the use of emotional connections with their audience in the advertisements Nike uses. Leonard states in the Shoes, Diplomas, And The American Dream article that “Nike does have a message to market. The company is selling high-school and college athletes the prospect of not just a career but a future.” It is also stated in the article that people are “Willing to invest – to bet on – the future because of the seductive allure of the American dream” (Leonard). The products Nike sells can assist in the success of an athlete due to the use of the product. If a runner was to use crappy shoes, they may lack in their abilities due to the poor quality of the shoes. Another point is that if one is successful with a Nike product, they would stay with that product or upgrade when a better quality of the product by the same company, Nike, comes out. When success is found within one company, a customer is more likely to stay within the company product

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.

The aim of this paper is to use the “Nike - The art of selling air.” case study and concepts from strategic marketing theory to identify marketing challenges and how those challenges could be best addressed using marketing principles. The paper will:

Nike’s main strategy revolves around product branding. Their brand compromises of a swoosh logo which is accompanied by a message of “just do it”. The logo was imprinted on all of their products with the message developed to express the individuality of their target group. The branding was further promoted by Nike’s relentless approach on the quality of their product as demonstrated when considering overseas business opportunities, quality must not be compromised in order to do so. This ensures consumer satisfaction and loyalty towards Nike.

Understanding customer needs will help Nike to define new market opportunities and drive innovation and revenue growth in every aspect of its organisation. The most basic concept underlying marketing is that of human needs. Human needs are states of felt deprivation (Kotler and Armstrong, 2006). Customer logic is derived from evaluation of a company and its product based upon customer needs, customer benefits, and product features. For branded athletic shoes, Nike has to understand customer needs on a global level as the products are sold

| Weaknesses: * Pays extra payment for new flavor. * More expensive to produce than other sports drinks. * Deciding the segment to target. * How to position the product in the mind of its potential consumers

Brands use different strategies to create competitive advantages to beat with their rivals. Some companies use “Overall Cost Leadership” to increase profit by reducing costs and increase market share by lowering price. Some companies use “Focus Strategies” to select a group of market and tailor its strategy to serve that group. The others use “Product Differentiation” as a strategy to obtain a premium price by making unique products. Nike, with its differentiation strategy, the company is continuing to separate its self from the competitors by using its superior technology and innovation. This paper mainly discusses on the company’s product differentiation and analysis how the company using this strategy to build its brand image and become a market leader in sportswear industry. A brief discuss about Nike competitive advantage which related to its broad differentiation aspect and the company product life cycle are also presented on this paper.

Gatorade has emerged as the global leader in sports nutrition beverages by continually managing their brand to signify high energy, athletic excellence combine with one of the most efficient new product development and introduced processes in the beverage industry. As a result of being able to consistently synchronize these many components of their business so well, Gatorade today holds a 75% market share in the sports nutrition market globally today. Gatorade is owned by PepsiCo, which has made it possible for the company to sell in 80 countries today. Gatorade relies heavily on the PepsiCo distribution and retail network globally. Gatorades' revolutionary approach to managing branding for beverages has served to increase the total market size for this product category globally (Huang, Sarigöllü, 2012). Despite the continued widespread adoption of Gatorade as a healthy energy drink, the company has encountered resistance to its brand and the ingredients used for creating the many variations of Gatorade energy drinks (Tallon, 2009). Despite these setbacks the Gatorade brand continues to experience exceptional growth and stability over time.

In order for Nike Go to be successful in the sports and energy drinks market,

Through market research, Nike found the most impressionable consumers were these Football Obsessed Teens. Generally, these teens were around 17 years in age, Nike’s target age. Nike felt that the “17-year-od consumers were more independent, more driven in their football goals, could choose their own brand, buy their own products and form brand loyalty.” However, Nike recognized that this change would require an adjustment in their marketing efforts. Primarily, these consumers were not just “aspirational” but rather “inspirational,” a type of consumer that will want the tools to become the best possible player.

Before the Internet era, Nike had already established itself. It had done well though TV ads and celebrities getting on board like Bo Jackson. However, when the new era came, it changed everything for Nike. They needed to be able to change with the new era. If millions of people use Facebook, IG, and Twitter, Nike needed to expose themselves in those areas as well. Therefore, they became more up-to-date, and gained more attention that way with the millennial crowd. This allowed Nike to become more holistic in the modern world. This new community created insane amounts of data, which Nike used to track behaviors, creates online groups of Nike fans, and builds meaningful relationships between the brand and its customers. Nike adopted a range of digital exercises such as a strong emphasis on storytelling, being an authentic brand, understanding and communication with customers on their terms, being extraordinary and shareable, and allowing complete customization.

Nike must cater to a large portion of the new generation that demands the latest trends and styles. Nike should take into account the changing US demographics due to the rising proportion of Hispanics, Asians, and African Americans. These groups have different preferences that Nike should be able to satisfy. Nike should identify the next generation of loyal customers and provide for their needs.

One of Nike’s main opportunities is product development. Developing their product range makes them more competitive and because products tend to go out of fashion quickly, Nike must introduce new products relatively fast because consumer demand the newest and latest products. Increase in internet shopping will no doubt reduce the cost and improve prices making them even more competitive.

Nike, Inc. has been the world’s leading innovator and provider in athletic footwear, apparel, equipment and accessories for 50 years. Their mission has been to bring inspiration and innovation to every athlete in the world; if you have a body, you are an athlete. Arguably one of the most innovative companies in the world, Nike has built its brand into an iconic world-class powerhouse that continues to dominate the market with no signs of slowing up. Nike’s marketing and advertising have been breakthrough, aspirational, and legendary over the years, featuring high-profile athletes and heroes.

Report on the Case Study Nike This report has been produced to provide an insight into the consumer decision-making process, buyer behaviour factors that consumers of Nike are influenced by. The report also details recommendations based on the findings. 2.0 Summary = =