NIKE’S BRAND

HOW THEY EXECUTE THE 4 P'S STRATEGIES AND STP (SEGMENTATION,

TARGETING & POSITIONING) (SEGMENTATION, TARGETING & POSITIONING)

Rosemarie T. Dechilla

International Business Management

Professor: Sameer Rawjee

July 14,2023
Table of Contents

Nike’s Marketing Mix 4P’s----------------------------------------------------------------------------- 1

Product Mix-------------------------------------------------------------------------------1

Place Mix----------------------------------------------------------------------------------1

Promotion Mix---------------------------------------------------------------------------1

Price Mix --------------------------------------------------------------------------------2

Nike’s Marketing STP (SEGMENTATION, TARGETING & POSITIONING) ---------2

Segmentation-------------------------------------------------------------------------------2

Targeting-----------------------------------------------------------------------------------2-3

Positioning----------------------------------------------------------------------------------3

Reference-----------------------------------------------------------------------------------------------------4
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THE 4 P'S STRATEGIES

Nike Inc. is a global leader in the athletic footwear, apparel, and sports equipment

industry, known for its effective marketing mix, which includes the 4Ps: product, place,

promotion, and price.

Nike's product strategy is centered on creating high-quality sports and leisure items, with

a particular emphasis on shoes built for professional basketball players. The firm sells its

products to a diverse spectrum of clients across the world, catering to both sports and

recreational pursuits. Nike's product mix is constantly evolving to react to shifting market trends

and client preferences, delivering a varied range of items under trademarks such as Air Jordan

and Converse.

Nike's distribution strategy, also known as place, is extensive and strategically place,

selling its products through various channels, including retail stores, online stores, and Nike town

retail outlets. Retail stores play a significant role in Nike's distribution strategy, as they are

strategically located and easily accessible. Nike town retail outlets provide greater control over

retail sales processes and market intelligence, but Nike has limited control over the distribution

and sale of its products at other retail outlets.

In terms of promotion, Nike heavily relies on effective marketing communications to

maintain a strong brand image and attract customers. Advertising is a key component of Nike's

promotional mix, featuring high-profile celebrity endorsers, personal selling, direct marketing,

sales promotions, and public relations. These promotional activities contribute to creating a

strong brand identity and market presence for Nike.

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Lastly, Nike's pricing strategies include a value-based pricing strategy, which considers

consumer perception of the value of its products. The company determines maximum prices

based on customer willingness to pay for its sports shoes, apparel, and equipment. Nike also

adopts a premium pricing strategy, positioning its products as higher in quality and value

compared to competing brands.

In conclusion, Nike's marketing mix plays a crucial role in its growth and

competitiveness. By focusing on product, place, promotion, and price, Nike maintains a strong

brand identity and market presence.

STP (SEGMENTATION, TARGETING & POSITIONING)

Nike effectively executes the STP (Segmentation, Targeting, and Positioning) process

through various marketing strategies and initiatives.

Nike employs market segmentation to divide its target market into manageable and

accessible groups, based on demographics, geographics, psychographics, and behaviors. The

company categorizes its target market into different age groups, genders, and financial statuses,

catering to a wide range of customers from 15 to 55 years old. Nike also considers the diverse

lifestyle habits, cultural preferences, and sports interests of customers in different countries,

tailoring its product offerings and promotional campaigns accordingly.

Psychographic segmentation allows Nike to understand the needs, interests, preferences,

and values of its customers, offering a wide selection of products that cater to the unique

lifestyles, personalities, activities, opinions, and interests of its target market. Behavioral

segmentation analyzes customer behaviors, such as purchase frequency and loyalty, to provide

benefits and fulfill their specific needs. Nike focuses on three core consumer categories: men,

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women, and children, producing and selling a diverse selection of goods customized to each

segment's unique sports and lifestyle requirements.

Nike's success is dependent on positioning, since the firm has carefully positioned itself

as a global leader in sports equipment, emphasizing its dedication to innovation and top quality.

Nike's iconic swoosh logo, "Just Do It" slogan, and promotional initiatives highlight the

achievements of prominent athletes contribute to its positioning as a victorious and ambitious

brand.

In conclusion, Nike's STP process effectively executes its market segmentation,

positioning it as a leader in sports equipment, innovation, and fashion. By continuously adapting

its marketing mix to market trends, Nike maintains its position as a dominant player in the

athletic footwear, apparel, and sports equipment industry.

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References:

EdrawMind. (n.d.). Nike Market Segmentation, Targeting, and Positioning. Retrieved from

https://www.edrawmind.com/article/nike-market-segmentation-targeting-and-positioning.html

Gregory, L. (2023, June 21). Nike's Marketing Mix (4P) Analysis. Retrieved from

https://panmore.com/nike-inc-marketing-mix-4ps-product-place-promotion-price-analysis

The Keep It Simple. (2022, October 25). Nike Brand Positioning. Retrieved from

https://www.thekeepitsimple.com/nike-brand-positioning/

IvyPanda. (n.d.). Nike Inc.’s Marketing Strategy and Management. Retrieved from

https://ivypanda.com/essays/nike-incs-marketing-strategy-and-management/