Nike marketing case study. Market Segmentation 2022-11-15
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Nike is a household name and a leading brand in the world of athletic apparel and footwear. The company has a long history of successful marketing campaigns that have helped to establish it as a top player in the industry. In this case study, we will take a closer look at some of the key strategies that Nike has used to market its products and build its brand.
One of the key elements of Nike's marketing strategy is its use of celebrity endorsements. Over the years, the company has partnered with a number of high-profile athletes and sports figures to promote its products. These partnerships have helped to create a strong association between Nike and top-level performance, which is a key selling point for many consumers.
In addition to celebrity endorsements, Nike has also relied heavily on targeted advertising campaigns. The company has a reputation for creating ads that are both visually appealing and emotionally impactful. One example of this is the "Just Do It" campaign, which features powerful slogans and imagery that are designed to inspire and motivate consumers.
Another key aspect of Nike's marketing strategy is its focus on innovation. The company is constantly introducing new products and technologies that are designed to improve the performance and comfort of its athletic footwear and apparel. By consistently introducing new and innovative products, Nike is able to stay ahead of the competition and maintain its position as a market leader.
Finally, Nike has also made a concerted effort to cultivate a strong brand image and identity. The company's logo, the "swoosh," is one of the most recognizable in the world, and Nike has worked hard to build a reputation for producing high-quality, reliable products. By carefully managing its brand image and consistently delivering products that meet the needs and expectations of its customers, Nike has been able to achieve long-term success in the highly competitive world of athletic apparel and footwear.
Overall, Nike's marketing strategies have been highly effective in helping the company to build and maintain its position as a top player in the industry. By leveraging celebrity endorsements, targeted advertising campaigns, a focus on innovation, and a strong brand identity, Nike has been able to attract and retain a large and loyal customer base.
While the sameresourcescould be used to target a more generic segment witha largerbase, theseresourcesare used to target micro-segments with a smaller base. Nike naturally became the top choice for marathon runners. Nikealsofound that women spent 40% more than men on sports apparels and were willing to pay a premium for stylishapparels, especially in areas such as aerobics and walking Fisk, 2009. Ineconomics, we havelearnedthat economies of scale and productivity are ways foracompanyto makeaprofit. Technology and Marketing Flops There's no doubt we live in an increasingly technological world, and Nike has excelled at reaching various audiences with a culturally appropriate message. Limited Growth Opportunity Over-segmentationalso makes it difficult for businesses to make a profit as the growth potential is limited when the segment is too small.
Those who resonated with the anti-racism beliefs came on Nike's side. The return oninvestment, in this case,reduces as cost increases per segment. Global marketing helps create a strategy for a similar product in a different market. Marketing organisation Nike Action Plan The action plan for this firm will include specific activities that will be addressed at different stages, and the time needed at each stage. What works for one market may not work for another.
This might be one of their biggest problems which will enable them take a long time to lead Nike in terms of their market Nike. The firm should consider selling its products through subsidiaries or leading supermarkets in various countries. The political environment in the North American markets, especially in the United States and Canada has been very stable, the fact that has boosted the sales of the firm. Analysis Of Nike's International Marketing Strategy 1115 Words 5 Pages International marketing strategy is a combination of marketing principle that could be used to formulate a marketing strategy for specific products and services within one or more countries to extend or internationalise the company. While Phil Knight's dream was to one day become a great athlete, Bill Bowerman was his former coach.
Situational analysis assists in the formation of adequate knowledge about the environment in which an approach is characterised. In the long run Asian countries like China might as well take a long time to work with the company in terms of coming up with factories in china. Reebok should first come up with a line of casual but well stylish shoes designed by Calvin Klein that blend quality and style. Its brand is considered the most valuable brand in the apparel industry. Boggan, 2001 Furthermore, Nike has been using child labour in the production of its soccer balls in Pakistan. Reebok should ensure keeping up a very high level of quality and durability of its shoes. Segmentation improve Sales Messages Knowingwho we want to sell to and what products they need, the last thing to do is to sell.
If Nike cannot follow the fitness trends in the market they will face risks of losing market shares. Typically, what follows next is an executive decision on which segment to target. Did you drive any value from this case study? For example, inflation rate too high in an outsourcing country will increase the cost and reduce the profits for Nike. By including a product filtering feature in your e-commerce website, you can ensure visitors stay on your site for more extended periods. The expansion of their business will take a while to develop because they have to have strong advertising strategies until the Asians. Not only is Nike successful at marketing their products in the United States, but they have grown into a truly international company through their approach to global marketing strategies. Not all the customers can follow the changing of Nike.
This way, it will be possible to use the strengths to address the weaknesses. Market segmentation is wherebusinesses, grouptheircustomers into smallercategories, often with similar traits, needs or purchase patterns Bowen, 1998. Company strategy to endorse their product from sports celebrities in order to follow the product trend in the market. What is the relationship between market segmentation, targetmarketingand market positioning? Stick around to learn more about the genius Nike marketing strategy. Situation Analysis Case Study of Nike Company Solved By Our Experts! When planning for its future activities, the management of Nike must ensure that the firm remains ahead of the competitors. This means that the nature of the environmental forces in one market may not be similar to that of another market. Effective advertising: Understanding when, how, and why advertising works:Sage.
Marketing Case Study: Nike's Global Marketing Strategies
When analysing the external environment of this firm, it is important to appreciate the fact that Nike operates in the global market. Even in other campaigns, Nike targeted specific groups through gender equality, ageism, homosexuality, etc. For another example, such as the social changes, women are becoming more fitness-conscious and are increasingly being targeted as growth potential in the sporting apparel and footwear industries. The biggest market for Nike products consists of young people between the ages of 15 and 25, who spend 20% more with Nike than any other group. For example, Nike has partnered with the English football club Manchester United to not only penetrate the European market but also reach consumers from all markets who are interested in soccer, known outside of the United States as 'football. Fisher Printing has been phenomenal to work with, at first our company was a little hesitant, but Tom made it as easy and efficient as possible.
Case Study: The Innovative Digital Marketing Strategy of Nike
Counter Segmentation is astrategywhichbusinessescanadopt,to start identifying commonalities in the hyper-segments and start consolidating into fewer but larger segments. Even though others are likely to buy the products, Nike focuses on the athlete more than any group of individuals even though it also target on the youth. Within the basketball segment, Nike chose to focus on young athletesas their target segment. Abhiroopsur, 2009 Beyond that, the inflation had raised the costs of raw materials and transportation. You have to take a stand on something, which is ultimately I think why the Kaepernick ad worked. However, the ongoing conflicts in the Middle East, Eastern Europe and parts of Africa are affecting the sales of the firm in these regions.
Give your company the marketing edge: Penguin Books,London. So Nike change its marketing strategies and products design to become more fashion and focus on the youth consumers. Loyal fans of the brand were willing to spend a little more just to receive exclusive benefits such as priority access to exclusive products or early access to Nike sneaker launches. In selecting Basketball as a segment, Nike identified commonalities between running and basketball; both were professional sports which involvedrunning,and both demanded shoes which could help athletes perform. Furthermore, the swoosh logo is a familiar scene on the feet of renowned athletes.