Nike Breakdown free essay sample

A. Segmentation Criteria Demographic: The age range of Nike is from infant to elderly. Their primary range would be the primary active/buying years from 18-45. However they design products for babies as well as youth, and many senior citizens still wear nike sweat suits, so its really wide open. Nike certainly does not target one gender intentionally harder then another. They do a good job of reaching out to both sexes very effectively. The average income attracted to nike would be middle class or higher. It is not an extremely expensive product, but in its industry is considered upper end. Since the brand is associated with athletics level of education is irrelevant. The two races most heavily targeted by Nike are Caucasian and african american. Nike is predominately associated with certain sports. Those sports tend to have a racial stereotype of athlete that excels at it. For example basketball. Nike uses many african american spokes people most famously Michael Jordan, and certainly targets african american athletes. We will write a custom essay sample on Nike Breakdown or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page However, Tiger woods, another nike endorser isn’t Caucasian yet still is targeting them primarily in his campaign. Family’s as opposed to childless or single living households are definitely the target. The more potential athletes in house the better. Chances are also that if one family members choices nike so will another. Therefore, family’s especially in communities are an important segment. Size of target market *******Target market Geographic: Nike is definitely geographically segmented. Sports, their primary vendor, are certainly regionalized. Basketball tends to be bigger in urban communities. Therefore, Nikes basketball products would definitely be segmented towards urban, city based, living communities. Nike’s golf line however would do horribly in that market and would certainly be targeted in upper class suburban regions of the country. Golfing products would also not likely be targeted in some of the colder northern parts of the country. Nike’s surf/beach/aquatic based products would definitely be targeting the coasts more than the mid inland of the country. Psychographic: Nike certainly has a psychographic segmentation to its marketing. Nike has managed to create the attitude of cool and cutting edge. Their product is associated with being either the â€Å"newest†, â€Å"coolest†, or â€Å"best†. They are endorsed by some of the best professionals at each of their sports giving them credibility causing an instant social acceptance. It has its own culture associated with its symbol. They make their customers feel like the best or strive for the best. They make their customers cool, or accepted. Behavioral: Benefit segmentation; Nike offers the benefit of competitive advantage. Its used by the best. Tested by the best. It is the best. If there was any way of a product to give you an edge nike would do it. Anyone seeking even the chance of an edge in competition or experience would choose nike. Usage rate segmentation; Nike would not need this form of segmentation. Non users have a high chance of choosing nike because of its instant association with credibility and quality. Light users wouldn’t apply as much. Heavy users would certainly choose nike because they would want to invest in a high end product for something thats that important to them. Occasion segmentation; They do segment casual wear vs practice wear vs game-time wear. The user looking for an attractive look, or comfort would chose more the casual wear. An amateur or someone who trains would target practice wear. The more professional or high intensity user would need the game-time more official merchandise. Target Market Profile Typical Member is a 18 year old Senior at All Star High School. He is an african american basketball player. Its the off season and an average day for Typical. Typical starts most days with an early morning jog. On that jog Typical always wears his Nike running shoes. Although Typical isn’t a morning person, when he laces up his nikes his body knows its time to wake up. Typical then usually showers and dresses for work. Typical loads up his nike gym bag with his gym cloths. He grabs his nike gym bag and brief case and heads to work. Typical finishes his work day and heads for the gym. Once at the gym Typical puts on his Nike shorts and shirt, and again his Nike shoes. Typical then finishes his workout and heads back home for dinner. Rotating with the gym is an adult soccer league, and coaching for youth football. In both cases the same Nike bag is brought and filled with appropriate Nike attire. This product fits my lifestyle because I want to be the best. I want to always look my best and show confidence. I want to look like I’m the real deal but I also want to perform like it. Nike works for me because it gives me a slight edge in quality, it looks good to the eye, and shows people that I don’t mess around. This product is high involvement. I see the swoosh every time I use the product. I use so many different Nike products, and so scattered throughout the day, I definitely use alot of Nike. Nike is certainly an item I specifically go out and purchase. The positioning strategy of Nike is Product class. Nike is a high quality higher priced product. It is considered top of the line in it’s industry. Their position is the class of their brand. Nike’s â€Å"Just Do It† is a shade of the company’s confidence and assurance in telling their customers that it shouldnt even be a choice between them and competitors. Their use of celebrity endorsements and innovative attractive ads are all aimed at highlighting Nike’s strength, strength of brand. They are a powerful name and command respect for both their quality and commitment to their products. D. The major problems with Nike is the economy. They are in an industry in which most goods being offered are luxury and not necessity. When the economy is tanking people can’t afford to spend as much on material, not as important goods. Therefore, a company such as Nike that positions itself as being an upper end product is in danger of being wounded. Nike because of it’s reputation and quality also means expensive. When people have more to spend they can worry more about quality. When the choice between a cheaper competitor of Nike or Nike themselves is given in good times people wouldn’t dare go with the knock off or inferior product. When times are tough however, people quickly stop worrying as much about image and quality versus price. As good as their advertising is, it won’t be enough to make people spend money they simply do not have. The major opportunities for Nike are branching into other industries. Nike could make a push into the sports food or drink industry. Nike could also attempt to create a casual clothing line. Because â€Å"cool† is so closely linked to Nike they could venture into any new apparel arena and have instant credibility. With expanding television channels, and internet webcasts, Nike could completely bridge their brand into 24 hour media outlets. Nike could begin producing programing itself.