While nike has delivered consumers considered products for several years, for the. Dec 01, 2018 results of nike s new customer experience distribution strategy in place for over a year in a study by euromonitor. It uses separate campaign or strategy to cap the market potential of the different segments. Nike is the master of segmentation, their segmenting market typically targets athletes, both women and men from the age. Our fy19 results prove that demand for sport performance and athletic lifestyle product is thriving, and our consumer direct offense is capturing more of that opportunity every day. Nike is going after 3 kinds of customers business insider. Nike also held the largest with a market share of 2. Thus it needs to have extensive range of products to withstand its competition. Knight was a certified public accountant with price waterhouse and coopers. Nke today reported financial results for its fiscal 2019 fourth quarter and full year ended may 31, 2019. Mba 61 marketing panagiotopoulou vasiliki vasiliki. Market share in existing and new markets and among different consumer. Adidas may currently trail behind nike, but its rich legacy and.
Nike marketing research by kathleen mcentire issuu. Under armour was not far behind, with a 112 social currency score. The nature and model of consumer involvement consumer and industrial decision making process and decision rules marketing implications of consumer behaviour study of consumer behaviour modelling an overview consumer behaviour is comparatively a new field of study which evolved just after the second world war. Nike changes its target market from teenagers to younger consumers due to intense. As of 2018, nike was the most valuable global apparel brand, with a brand value of 28 billion u. Didnt nike understand the consumer right from the start. Few markets are as tantalizing to global brand marketers as the new. Companies need to select the market segments that they want.
However, this does not mean nike does not use market segmenting to more precisely define various market segments. Bryant shoes have maintained the top position in the market for many years for. Nike shifts to directtoconsumer nikes also been investing a lot in expanding its nike direct operations. How nikes directtoconsumer plan is crushing the competition. Nike focuses on product quality and creating products that help athletes perform better. Nike manufacturing and supply chain strategies market realist. Nike shoes is already a wellknown brand through the world, with effective advertisements and word of mouth, since customers tend to share their positive views with their friends and family. The project will involve background research, problem definition, development of a pragmatic approach, and development of a questionnaire for investigating a marketing research problem facing a company.
Aug 26, 2018 nike targets middle and high segment customers of all age groups and does not set a bias for any group. Segmentation, targeting, positioning in the marketing strategy of nike nike uses psychographic segmentation variables to make its offerings more attractive to the target customers. How nike changed the consumer brand marketing universe. Summarize the success of nike, we can easily find that nike is an entity both with patience. Like most leaders in the market, nike values the consumer and the importance of providing a quality product. This 2018 retail trends deck is based on presentations and discussions from the national retail federation s annual big show conference. The company went hightech with its push into digital sports. Not only does it own 48% of the american athletic footwear market, but its share of the basketball footwear market is at a staggering 96%. Nikes target market is largely consumers ages 1545. Marketing research and consumer behaviour nike prezi. Nike asks you to accept cookies for performance, social media and advertising purposes. The pricing of nike products is set in such a way that it is easily accessible to these customer segments. Nke hosted its 2017 investor day today which provided an overview on how the company is accelerating its next phase of longterm, sustainable and profitable growth.
Nike s pricing is designed to be competitive to the other fashion shoe retailer. Fueled by the consumer direct offense, the company stated during the investor meeting that it expects to drive highsingle digit revenue growth, expanding margins and midteens earnings per share growth on average. Nike is the master of segmentation, their segmenting market typically targets athletes, both women and men from the age 15 to 35. Follow me on twitter to see my latest articles, and for commentary on hot topics in retail and the broad market. We sell our nike brand, jordan brand, hurley and converse products to thousands of retail accounts. Given nikes stated focus on international markets, the company may be succeptible to market share losses in their home market, which accounted for 45% of 2017 revenues. Flyknit has been marketed by nike as both a performance and sustainability innovation, providing advantages to the consumer and the company alike. Nike and many players are moving ahead side by side in many games.
Marketing mix of nike nike marketing mix and 4 ps of nike. Nike is shifting sales to directto consumer channels as well as realigning its. Each consumer report offers the primary research and indepth data found in our market data reports alongside expert insights, trend analysis and market forecasting. Nike utilizes psychographic segmentation to target customers based. Nke has ruled over the sports apparel universe for. Pdf this report is all about to show a marketing plan for nikes products. Aug 29, 2016 nikes social currency score was the highest among the 90 brands assessed in the report, and 20% higher than the brand average. Nikes new consumer experience distribution strategy. Apr 20, 20 nike personifies itself as a hip brand, as they are always innovating, however they are missing out on a potential opportunity to further increase their market share and expand their product. It is a seller of athletic footwear and athletic apparel in the world.
Nike is an ultimate lifestyle brand that encapsulates the. Nike personifies itself as a hip brand, as they are always innovating, however they are missing out on a potential opportunity to further increase their market share and expand their product. Mar 06, 2018 nike uses psychographic segmentation variables to make its offerings more attractive to the target customers. Nike as well as its competitors needs to keep up to date with consumer taste especially in a. Nike hopes to replicate the success they have seen through their sponsorship of the national football league. The deck highlights themes that we will see emerge within the consumer and retail market. Nikes social currency score was the highest among the 90 brands assessed in the report, and 20% higher than the brand average. Statista, value of the sportswear market in the united states from 2015 to 2025, by product. Mintels market data reports offer a quick and indepth look at a market, providing market sizes, market shares, industry insights and 5 years forecasts. Nike not only chooses the best consumer groups, they also concentrate on the maverick corporate cultures. Given nikes stated focus on international markets, the company may be succeptible to market share losses in their home market, which. Its safe to say nike s at the top of its game right now. Nike shoes create the perception that if anybody can do it, you can also do it, so pushes customers to buy shoes and start the change.
Forecast of nike s global market share in athletic footwear 20112025. There are many markets that have the disposable income to spend on. Exploring the sustainability of nike flyknit shoes. Our fy19 results prove that demand for sport performance and. Targeting is the important aspect of the marketing strategy, especially when a company is in different businesses. Consumer behavior nike shoes market research project.
Oct 17, 2019 nike shifts to directtoconsumer nikes also been investing a lot in expanding its nike direct operations. Nike has focused its marketing efforts on the digital space in recent years. Nike needed to widen the access point in its brand communication model to become relevant to wider circles of people including women and all baby boomer fitness enthusiasts. Fy19 was a defining year for nike, as we accelerated the highimpact capabilities of innovation, direct and speed that fuel our triple double. Results of nikes new customer experience distribution strategy in place for over a year in a study by euromonitor. May 04, 2020 as of 2018, nike was the most valuable global apparel brand, with a brand value of 28 billion u. Nike takes into consideration various aspects of its products as it is in a product or consumer market. Under armour was not far behind, with a 112 social currency. Nikes targeting market is active people who enjoy high quality sporting goods, especially footwear.
Summarize the success of nike, we can easily find that nike is an entity both with patience and toughness. Social media and advertising cookies of third parties are used to offer you social media functionalities and personalized ads. Consumer behavior psychological factors nike shoes market. United states market for fiscal 2017, nike brand and converse sales in the united states accounted for approximately 46% of total revenues, compared to 47% and 46% for fiscal 2016 and fiscal 2015, respectively. Nike as well as its competitors needs to keep up to date with consumer taste especially in a market. The actual role that fitness plays in peoples lives, the actual experience of really working out, doing aerobics, going on a bike ride, etc. Knight is a cofounder of the company and, except for the period from june 1983 through september 1984, served as its president from 1968 to 1990, and from june 2000 to 2004. Apr 10, 2016 most of the consumer of nikes products is mainly athletic. It uses separate campaign or strategy to cap the market potential of the different segments targeting is the important aspect of the marketing strategy, especially when a company is in different businesses.
It sells its products to retail accounts, through nike owned retail, including stores and internet sales, and through a mix of independent distributors. Nike provides features, designs, various brands, packaging along with some extra features like warranties and after sales service. Nikes new consumer experience distribution strategy hits the. Thus in a way the primary target market for the company are athletes. Keeping this in mind i have selected a new athlete shoe as my product. To succeed in social currency, brands focus on initiatives that help consumers manage their lives more effectively and efficiently. The nature and model of consumer involvement consumer and industrial decision making process and decision rules marketing implications of consumer behaviour study of consumer behaviour modelling. Nike is shifting sales to directtoconsumer channels as well as realigning its. The american manufacturer, through its marketing strategy which rests on a favorable brand image, has evolved into a large. Nike shoes is already a wellknown brand through the world. At the consumer level, the flyknit provides a lightweight and snug socklike fit, which nike.
The pricing is based on the basis of premium segment as target customers. Nike strategy how nike became successful and the leader. Forecast of nikes global market share in athletic footwear 20112025. Most of the consumer of nikes products is mainly athletic. Social media and advertising cookies of third parties are used to offer you social media functionalities and. Black consumers account for a disproportionate amount of product sales in a number of fastmoving consumer goods categories. Nike is many things a product designer, a consumer goods manufacturer, a brand. Nike, an amercian multinational corporation, established in the year 1964, is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel.
Demographic segmentation is a factor used by nike to target individuals according to their age, lifecycle stage, gender, occupation, and generation. Given nike s stated focus on international markets, the company may be succeptible to market share losses in their home market, which accounted for 45% of 2017 revenues. Nike evaluates its target market based on size, reachability, measurability and behavioral variables. Knight, a director since 1968, is chairman emeritus of nike, inc. Marketing strategy of nike nike marketing strategy. This includes nikeowned retail stores and digital platforms. We must, therefore, respond to trends and shifts in consumer preferences by adjusting the mix of existing product offerings, developing new products, styles and categories. Nikes consumer direct offense, its strategy to revive growth particularly in the north america market where sales just fell 3% in 1q2018, may be jeopardizing its long term prospects by.
What sort of marketing strategy has nike used to achieve and maintain this level of market dominance sure, the highprofile celebrity endorsements probably play a role, but for the most part. Knight is a cofounder of the company and, except for the period from june 1983 through september 1984, served as its president. Oct 27, 2017 nike s consumer direct offense, its strategy to revive growth particularly in the north america market where sales just fell 3% in 1q2018, may be jeopardizing its long term prospects by alienating. Because nike is a consumer products company, the relative popularity of various sports and fitness activities and changing design trends affect the demand for our products. After segmentation, the company needs to decide on the targeting strategy. Nike manufacturing and supply chain strategies market. And the athletes helped nike design and market the products and. According to the official website of nike the core consumer categories is action sports, basketball, football soccer, mens training, running, sportswear and womens training.