Marketing Research/ Market Segmentation / Zhinwar Muneer Sherwani: 35516

MARKET SEGMENTATION OF NIKE, Inc.

ZINWAR MUNEER SHERWANI

ID:35516

When we identify our ideal customer, we start looking for market segment opportunities. A market
segment opportunity is a trend that can drive new marketing tactics or offerings. To find them, first ask
the following questions NIKE.

• What problems does NIKE solve?

Nike, Inc. is an American multinational association that is involved in the design, development,
manufacturing and worldwide marketing and sales of apparel, footwear, accessories, equipment and
services. It is the world's largest supplier of athletic shoes and apparel and a major manufacturer of sports
equipment, with revenue in excess of US$37.4 billion in its fiscal year 2020 (ending May 31, 2020). As of
2020, it employed 76,700 people worldwide. In 2020 the brand alone was valued in excess of $32 billion,
making it the most valuable brand among sports businesses. Previously in 2017, the Nike brand was
valued at $29.6 billion. Nike ranked No. 89 in the 2018 Fortune 500 list of the largest United States
corporations by total revenue.

• What problems can NIKE solve better than its competitors?

Nike spent a great deal of time, thought and money to create their “Just do it” brand and it has taken off
beyond their expectations. There are many interesting facts around how Nike has branded themselves
significantly, but the final result is, they did and it works. Shoes have a tendency to take on the cheapest
route to completion based on demand. Nike made a promise to their consumers to maintain the highest
possible quality they can. Nike is a brand that has been around for many decades, and it continues to be
an industry leader.

• What does NIKE know a lot about or excel at?

NIKE listened to athletes and designed their shoes to meet endurance, durability and performance
standards specifically. Nike did not follow the way of the other shoe brands by adding garments into their
product to meet fashion statements. Instead, they stuck to tried and true quality and maintained using
leather in their products.

• Who does NIKE and its team like to serve?

NIKE explore team sport research Lab. Nike lab, for more than 30 years, delivers proven scientific insight
which helps drive performance innovations across the Nike brand. The lab team consists of more than 40
researchers in different scientific disciplines such as biomechanics, physiology, physics, math,
kinesiology, biomedical engineering and mechanical engineering. The main objective of Nike Inc. is to
drive product innovation for athletes everywhere. Countless ideas are tested in pursuit of aiding
performance, injury risk reduction, enhancing perception and feel, and delivery of innovative products to
athletes.
 Marketing Research/ Market Segmentation / Zhinwar Muneer Sherwani: 35516

• What large segments stick out?

Demographic Geographic Psychographic Behavioral

Nike has included Nike has their stores Nike provide their Nike provides benefits
different age groups, worldwide, and they do customers variety of to the customers as they
gender and based on understand that different products that suits their provide an active
their targeted customer's country has different interest and meets their lifestyle with
financial status. Nike culture and lifestyle standards. Nike has their comfortable footwear,
has separated their habits. Nike has mission statement "To clothing, and useful
products by different launched different bring inspiration and sports equipment. Nike
age group which is products in different innovation to every also does notice that to
mainly between 15-55 countries to suit the athlete in the world" and satisfy the majority of
years old and by gender. regional customer's based on their mission people they need to
There are three types needs. For example, statement they are improve on their
categories, men during winter Nike trying their best to meet products. For example,
products, women produce sneakers and the needs of their Nike has come up with
products, and lastly the clothing that can keep customers. This allows similar pairs of shoes
kid's product, this out the cold unlike in Nike to find out what which are Nike Air
allows the customers to Singapore which only their individual Force 1 High iD and
be served better and has one season, summer. customer preferred, as Nike Air Force 1 Med
have a better shopping not all the customers iD to suit different types
experience. To fulfill the that buy Nike loves to of customers as their
needs of everyone, Nike do sports therefore own preferences are
also promotes sales, cuts psychographic different from one
the prices change to segmentation gives Nike another.
reduce the cost, or gives ideas, to produce
a discount to the different types of
product. For example, products for buyers
Nike would have sales based on their own
during the Great preference. For
Singapore Sales to example, young adults
attract more people to prefer Nike shoes is
buy as some customers mainly because it's a
may not be able to fashion lifestyle with
afford the price before high quality, and they
discount. would want to follow
the trend.

• What customer characteristics or qualities are most common?

NIKE has plans to grow the business even larger by focusing on a few key demographics. Of these
demographics, they are choosing to zero in on women, young athletes, and runners. Because of this
narrowing down of target audience, the company’s marketing primarily targets consumers are between the
 Marketing Research/ Market Segmentation / Zhinwar Muneer Sherwani: 35516

ages of 15-40. The company is also currently putting a strong emphasis on teens and tweens in order to
build long-term brand loyalty. Because NIKE is an athletic brand, it is only fitting that the biggest
consumers and customers of the brand are athletes themselves. The company uses the customer’s love of
sports to its advantage by aiming its marketing efforts to create a “feeling” that transcends the product.
This “feeling” allows customers to truly believe they are a small part of a NIKE family, creating an
attitude that fosters a lifestyle.

• What segments are currently not being served? What segments is NIKE uniquely qualified
to serve?

Benefits segmentation is considered the underlying factor where every purchase satisfies a need. Nike
focuses on “benefits sought” to segment market place. Company’s products strive to meet elite athletes’
as well as professional and casual performers’ needs. These needs that consumers looking forward to
fulfill through Nike’s products purchases are the quality, the duration, the comfort, the style, the
innovation, the price and the brand awareness. Thus, Nike segments the market in three core bases
concerning benefits, which are the Utility in order consumers to accomplish high performance, the Style
where individuals follow the fashion brand statement and the Technology bases, which gives customers
the opportunity to own innovative shoes such as Air Max. Although each type of segment defines groups
of customers with similar needs, it is ordinary implementation in marketing to combine segmentation
variables, such as geodemographic segmentation, for more effective approach in certain circumstances