Marketing Management CIA 3

NIKE MARKET ANALYSIS (STP) & MARKETING MIX

The understanding of mass marketing and the same actions among all consumers, the
recognition of the needs of customer groups has contributed to the understanding that for
optimum revenue opportunities, it has to be segmented. All sports, in fact, differentiating
between fans ,a sports business, for example, such as Nike, could not market extreme sporting
center’s for elderly people.

SEGMENTATION
There are six interactive bases for market segmentation in the normal manner, Demographic
factors, psychographic profile, style of conduct, Geographical variables, socioeconomic
variables and benefits. While Nike has a general "all athletes" goal segment, it also precisely
defines various other market segments.

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Demographic:
Nike's most frequently used strategy is demographic segmentation since the characteristics are
easy to define and quantify, are accessible from multiple outlets, such as the count of the
government population, and are correlated with sports attitudes such as attending a game or
watching sports. Nike targets individuals according to their gender, age and life cycle level,
based on demographic segmentation. The first and most important thing to say is that in order
to create long-term loyal buyers, Nike targets customers from 11-45 years of age, with greater
weight for teenagers. For example, Nike created an advertising campaign in 2014 before the
World Cup that glorified great football athletes playing football with teenagers, encouraging
them to become like their idols. In addition, gender is another critical element used by Nike to
target its audience. Despite the fact that its male buying audience is bigger, Nike has recently
invested heavily in women. In particular, by introducing a range of female sports lines, Nike has
developed a strategic approach to targeting women, with sales projected to rise dramatically in
the coming years.

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It must be emphasised that in order to group customers, Nike does not segment the industry
based on ethnic context, including ethnicity, race and religion.

Psychographic:
To target consumers based on lifestyle, attitude, behaviours and desires, Nike uses
psychographic segmentation. Specifically, Nike is targeted at active people who enjoy sports,
daily gymnastics, athletes and Sports, which tend to be part of their lives, are passionate. Nike
is doing something outstanding. Associates the lifestyle of individuals with their habits, desires
and actions, producing a particular feeling" and buying related goods as a result. Nike promotes
a sports-centric approach that motivates, encourages and emotionally bonds all athletes with
its goods. Statement by Nike "To bring" "To every athlete in the world, inspiration and
innovation," not to mention "Run with me," inspires all kinds of athletes to loyally pursue the
business with the feeling that they belong to the same team. Nike is targeting an audience that
enjoys apparel, apart from the sports customers. There are groups of individuals who are
passionate about the labels and purchase the goods of the business only to follow fashion
trends. Such people are persuaded that the products of Nike are not ordinary athletic shoes but
a lifestyle of fashion.

Behavioral:
Nike focuses, on the one hand, on the way its goods make customers feel. "The company
clearly follows the path "If you have a body, you are anathlete" and If you are an athlete, the
goods of Nike make you feel athletic.
Nike, on the other hand, builds the commitment of consumers by supplying them with exclusive
quality as well as new and creative items to select in order to buy products from the brand

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more frequently. Additionally, Nike It offers its consumers the ability to share their experiences
with their friends and family, including internet review items that spread to social networks and
have an immense impact on consumer buying behaviour.

Geographic:
Geography is a basic but powerful basis for segmentation. Nike segments markets in different
ways based on the area, city and popularity density of the world and country. In particular, Nike
supports numerous campaigns in the United States of America. As sports distinguish by country,
also cities, America, in Europe, in Asia, in Australia and in Africa. All the ads in the United States
for example, are about football and baseball, while advertising in Europe refer to soccer. The
segmentation of towns and their supporters in New Delhi, the capital of India, while in England
and Sidney for rugby, Nike promotes equipment for cricket. North America as well as Western
Europe and China are the main market places based on Nike's figures, where the company
segments more the market concentrating on metropolitan areas with purchase densities. Nike
does not segment the market based on climatic conditions even though the company is
ecologically consciousness.

Socioeconomic:
Income, education and jobs are generally interrelated due to the fact that individuals with a
higher level of education enjoy higher wages as well as the most appropriate status. Thus, Nike
markets in the lower upper middle and upper class groups, where the company offers sports
equipment in the last category. Limited editions on the other hand, can only be obtained from
high-income individuals.

Benefits:
The segmentation of benefits is regarded as the underlying factor where each A need is fulfilled
by purchase. In segmenting the market place, Nike focuses on "benefits sought." The company's
goods seek to fulfil the requirements of elite athletes as well as experienced and casual
performers. Quality, length, comfort, style, creativity, price and brand recognition are the
criteria that customers are looking forward to fulfilling through Nike's product purchases. Nike
thus divides the market into three main benefits bases, which are the utility in order to reach
high levels of customers. efficiency, the Style where individuals adopt the fashion brand
statement and the Technology bases, which offers consumers the ability to own revolutionary
shoes such as Air Max. Although each type of segment identifies groups of customers with
similar criteria, combining segmentation variables is ordinary implementation in marketing, For
a more productive solution in such situations, such as geodemographic segmentation.

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TARGETING
Target marketing is the next step in the segmentation process, in which the organization
systematically selects the segments that will allow its objectives to be accomplished most
effectively and efficiently. Based on scale, reachability, measurability and behavioral factors,
Nike assesses its target market. Nike has in particular, a niche market to serve. The group
targets professional athletes and sporty people who provide them with innovative and
advanced goods. In addition, all items are available, including online, with the unique chance
for Nike customers to make their own custom-made shoes that make the company more
recognizable and remarkable to other footwear companies in terms of distinction. It should be
remembered that through sponsoring great athletes with incredible accomplishments and wins,
Nike also targets the marketplace through psychological strategies. This approach closely
connects the goods of the company with victory. Sustainable engineering is the catalyst for
revolutionizing the company's way of doing business and manufacturing its sports equipment,
for sure. For that purpose, in tandem with the marketing mix that the company creates, Nike
introduces aggressive marketing tactics to make the brands of its target customer company
more known, enhancing its individuality and exclusivity.

POSITIONING
Positioning is the final phase of the STP concerning business decisions. Nike has widely
positioned its brand as the sports apparel industry leader, offering high quality and
groundbreaking technology. In addition, Nike has persuaded its customers that through the
swooshhh, it is an innovative and victorious business together with the slogan "Just Do It" as
well as through the promotional activities that associate the brand of Nike with prominent
athletes' magnificent achievements. It must be underlined that Nike has changed from product
focus to mindset over the years. Nike "speaks" through special & momentous emotions in the
hearts of athletes, which makes the brand remarkable compared to others. Nike, above all, has
developed its position in fashion, where the products of the company define a lifestyle for such
people. Positioning, as it seems, is based on the perception or reputation that Nike extends and
retains with regard to its sports equipment. With this in mind, the company develops
perceptual maps through marketing research techniques in order to interpret its products
position in relation to competition.

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 MARKETING MIX

Nike's Marketing Mix analyses the brand/company that encompasses 4Ps (Product, Price,
Location, Promotion) and describes Nike's marketing strategy. As of 2020, a variety of
marketing initiatives, such as product/service innovation, marketing investment, customer
engagement, etc., have allowed the company to expand.
For example, the company specializes in shoes that are designed to satisfy the needs of
professional basketball, football and other sports athletes. However, these products are
marketed to all consumers all over the world, for athletic, leisure and fashion activities. This
marketing is done on the basis of Nike’s vision statement, “ to remain the most authentic,
connected and distinctive brand”,  and mission statement, which happens to be, “to bring
inspiration and innovation to every athlete in the world”. 

PRODUCT
Nike sells a wide range of products, including sneakers, clothes, and appliances. The brands in
Nike's marketing mix concentrate on premium quality and a wide range of merchandise for
sports fans. It is the world leader in the sportswear industry and receives the highest sales from
the selling of athletic shoes. It provides a wide range of items, including special styles of
sneakers, for any genre of sports. It has unique quality cricket shoes that are 30% lighter than
its rivals. Nike has responded to changing times by creating and marketing smart devices that
have the potential to attach to iPod nano, putting together products from Apple Inc and Nike to
calculate the success of a sportsman. In addition to this, NIKEid is a revolutionary Nike sub-
brand that enables its customers to develop and configure the specifications of their preferred
products according to their preferences, which draws a broader audience. Nike also offers new
service of personal trainer to its consumers for various types of sports.

PRICE
Nike is an industry leader in sportswear and athletic equipment and uses a value-based pricing
approach as well as a premium pricing strategy to promote the company's rise in revenue and
earnings. By using the value-based pricing approach, Nike measures the value that the
consumer is willing to pay for each product. Now this value is used to assess the actual price
that the consumer can pay for Nike's sneakers, clothes or sporting equipment. This strategy has
largely helped the company from continuously growing its earnings over the last 5 years. The

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price is made to the customers in the luxury market. By this approach the company caters to
the niche market while retaining its loyal consumer base by paying high rates for its value-
added goods. 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.

PLACE

Nike uses three channels to market a broad range of goods to its consumers:
1. Retailer
2. Nike Online Stores
3. Nike's exclusive offline stores
4. Online purchases via e-commerce

In America, Nike has more than 200,000 stores and is present in more than 150 countries
around the world. Nike has production units in almost every country to cut shipping costs and
increase delivery performance. The density of stores around the city is so high in India that Nike
is a big competitor to Adidas, Reebok and its competing brands. Nike uses e-commerce portals,
such as flipkart, amazon, to market its goods. Through this Nike is able to showcase nearly any
product that hits millions of people over the internet. Nike's exclusive shops are very popular in
almost every city and suburb of the world, catering to the needs of customers of a particular
geography. However, the company has limited control on the distribution and sale of its
products via other retail outlets, like Walmart or Stadium Goods . 

PROMOTION

Nike is known for its successful branding and marketing efforts. This is because Nike's
marketing campaign is highly detailed, proactive and uses both marketing resources and media.
Nike carries out extensive advertisements through online campaigns on YouTube, Instagram,
and Facebook, reaching out to millions of its followers. Nike engages sporting icons as their
brand ambassadors, for example Odell Beckham Jr, from the NFL team Cleveland Browns,
having a major impression on the customer's mind through a range of ads and promotions. Nike
also uses the opportunity to showcase the name by sponsoring marathons, international
competitions such as the NBA basketball championship. The company’s direct marketing
activities involve direct communications with colleges, local sports teams, and other
organizations, for example University of Kentucky’s Basketball team. Nike pays a large amount
of money to show its presence over the soccer clubs. Nike corporation's swoosh logo and
photographs play a vital role in promoting the brand. It employs a high degree of media
attention across electronic, web and print media, encouraging the smart use of push and pull

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approach of its brand picture for its customers. Bulk discounts, timely discounts from online
and offline retailers draw millions of customers every day and attract mass interest to greater
purchases.

CONCLUSION
In conclusion, Nike uses the promotional tools in a manner that its rivals do not. Their
marketing mix is constantly evolving, still focused on the consumer, and creating a unique
bond. As a result, the products will always have a premium value, which means that its
marketing mix guarantees that the business thrives. They have created a strong brand that
encourages people to become loyal customers.