1.

TARGET MARKET

Nike’s target audience is for people who regularly exercise and for those who will
wear for fashion trend as it goes well with modern-day clothing. Nike has
classified their target customers mainly into three product groups, men's products,
women's products and kid’s products. For men's products, they have twelve
different categories for shoes that consist of lifestyle, running, gym & training,
football, American football, basketball, tennis, golf, crickets, baseball & softball,
skateboarding, and athletics. For women products, unlike men’s products, Nike
provide different options for women as Nike understands that women don’t really
play American football therefore they replace it with yoga. For kids’ product, Nike
mainly target on young athlete like how their mission statements states bring
inspirations to every athlete. Besides these, Nike provides their customers with
variety of colors for the shoes so that their targeted customers can find the pair of
shoes that suits them the best.

2. PRICE

The company uses Value-based pricing strategy and Premium pricing strategy for
its customer base and normally targets upper middle class and high-end customers.

Nike uses a value-based pricing strategy in order to set its prices according to the
consumer perceptions about the value of the company’s products. Nike focuses on
delivering the highest quality products at the right price to ensure the best
customer experience whereas the other companies use the idea to sell products at
the cheapest rate as it will generate more sales. This strategy ascertains how
much maximum price consumers are eager to pay for the company’s
products such as sports apparel, sports shoes and equipment. This pricing
strategy worked for Nike as it came to know about its product’s value
amongst the customers and the company started to get profits and prices of its
merchandise started to rise.
In relation, the premium pricing strategy involves high prices, based on a
premium branding strategy that establishes Nike products as higher in quality
and value than competing products. The company’s use of advertisements
involving high-profile celebrity endorsers is indicative of such emphasis on
premium branding. In 2014, the business successfully increased its selling
prices and generated higher sales and revenues. This trend continues, as the
company enjoys increasing sales revenues while gradually increasing its prices.
The business adjusts its price ranges according to such changes.