ANALYSIS ON NIKE

AND NIKE AIR JORDANS

[STUDENT NAME]
[STUDENT NUMBER]
Question 1: Customer Segmentation (Answer should include completed template, PLUS a sentence or two to
answer Part 1b)
a. Utilizing the Template provided by the professor, entitled, Segmentation Variables Template, for the
specific product or product category you have chosen, on what basis do you think your company
segments its customers?

Bases for Sub-Bases Explanation/Description

Segmentation
Geographic Region of the country or Nike Air Jordans markets to various regions
world, climate, population all over the world, but sales primarily come
density? from North America.
Demographic Age Segmentation: Age Teenage to middle-aged individuals aged
group/ generation? 15–45-year-old.
Gender Segmentation: Traditional segmentation given the different
Traditional or Modern? physical characteristics of different genders.
Income Segmentation: Average to Higher Income bracket.
Low, middle or high
income?
Psychographic Personality Segmentation: Sports enthusiast, athletes, and athlete
Traits, attitudes, and fanatics.
habits?
Motives Segmentation: Emotional
Emotional or rational?
Lifestyle Segmentation: Engages in fitness and athletic activities
Socioeconomic such as sports competition, casual training,
characteristics, beliefs, or gym activities.
how they spend their time?
Benefit What benefits do they seek Comfort, confidence, and technology.
Segmentation to gain from the product?
Usage-Rate Former, potential, first Regular users who use the product daily.
Segmentation time, light or irregular,
medium or heavy user?

b. Summarize who you believe the primary target market is for this product?

Nike Air Jordans typically cater to young and middle-aged individuals that are generally active athletes
or fit the sports enthusiast label particularly in basketball. They are into fitness, casual sports players, or
competitive athletes. Air Jordan customers cater to fanatics of a specific team or player that endorses it, like
Michael Jordan.
Question 2: Consumer Buying Decision

a. What cultural, social, individual, and psychological factors are impacting the consumer’s purchase
decision for your product? Explain why and how these factors impact the consumer’s decision. These
factors are summarized in Exhibit 6.3 and throughout chapter 6.

Nike is the #1 sports apparel brand in the market worldwide, and Air Jordans is one the major
contributors to its growth (Statistica, 2021). Some social factors that affect the consumer behavior for Air
Jordans is its reference groups and the status attached to the brand. Nike’s endorsers are the top athletes for
their brand. Most athletes in a particular sport look up these endorsers. Thus, owning it would give the
feeling of being similar to these professional athletes. Given this strategy of Nike to use renowned athletes,
and the overall ranking of the company, there is a high status attached to owning a Nike (IvyPanda, 2021).
In Air Jordans, the case is the same, this category of Nike Sportswear started with Michal Jordan, known to
be one of the best basketball players in the history of basketball. This reputation of Michael Jordan is
attached to each, and every Nike Air Jordan footwear Nike sells.

Psychological factors of Air Jordans include benefits and perception. Nike is a company that sells not
only a product but also a narrative. With its tagline “Just do It” Nike has done a great job in empowering its
consumers and making them feel athleticism through their products. As a result, more consumers are
encouraged to buy. Air Jordans is no different, but it is particularly favored by basketball players who wish
to emulate Michael Jordans in their performance. Finally, individual factors include age and lifestyle. The
body has its prime from teenage to middle age years, this is the optimum time for athletically inclined
individuals to participate and sport. Thus, people and athletes within this age bracket are more compelled to
buy Air Jordans. In particular, school varsities. Lifestyle is also a factor because individuals interested in
fitness are more likely to know about and use Nike.
Question 3: Customer Relationship Management (CRM) (
a. Your company will want to ensure customers remain loyal and are engaged with the product and
company. As discussed in class, building a strong relationship and trust with consumers are important
factors to building loyalty. What does your company do to build customer relationships, strengthen
customer engagement, and trust and keep customers loyal?

Nike is able to sell by sharing an empowering narrative that caters to a wide range of consumers but how
does Nike manage to sustain these customers? Nike is able to ensure customer loyalty by understanding
their need and preferences, as well as empowering them. Nike does this by utilizing a Customer
Relationship Management (CRM) technology in its division Nike Digital Sport launched in 2012, and
Nike+.

Nike Digital Sport, otherwise known as NDS, is a digital tracking technology that Nike users can use for
their fitness activities. It is powered by NikeFuel that measures all-day movement of an individual.
Nike+ on the other hand, is a general used fitness app. While customers use these tools, Nike is able to
receive valuable consumer data that allows them to analyze and understand the problem of their
customers. (Rao, 2012) With this Nike likewise empowers their users about fitness strategies and
improve consumer experience (Cendrowski, 2012) If you access Nike’s website you will be able to
access a live chat with a customer service agent that will address your concerns immediately real time.

Moreover, Nike is largely active on social media (Pride, 2022) and leverages its power well. Out of all
sportswear brands in the market, Nike is the most active in digital marketing and receives the highest
social engagement. The company is able to maintain the attention of audiences and customers through
frequently coming up with engaging contents and posts on social media.
References

Cendrowski, S. (2014, June 16). Fortune. Retrieved from Nike's New Marketing Mojo:
https://fortune.com/2012/02/13/nikes-new-marketing-mojo/
Oberoi, M. (2020, November 20). Nike’s Target Markets: Everything You Need to Know. Retrieved from Taylor Wells:
https://marketrealist.com/2019/10/nikes-target-markets-everything-you-need-to-know/
Rao, A. (2012). IBS Center for Management Research. Retrieved from Digital Marketing at Nike: From Communication
to Dialogue.
Smith, P. (2021, November 1). Nike's North American revenue 2009-2021, by segment. Retrieved from Statistita:
https://www.statista.com/statistics/241706/nikes-us-sales-by-product-category-since-2007/
Start.io. (2021, December 16). Nike Target Market Analysis – Demographic Segmentation Marketing Goals. Retrieved
from Start.io: https://www.start.io/blog/nike-target-market-analysis/
What You Can Learn from Nike Branding Strategy. (2022, February 28). Retrieved from Rival IQ:
https://www.rivaliq.com/blog/nike-branding-strategy/