Nike Target Market
Nike mission statement is all about bringing innovation and making products more
sustainably to every athlete in the world. Unlocking a new paradigm in which athletic performance, factory worker empowerment, and business growth. The company developed different sectors including a chemist, biomechanists, physiologist, materials developers, coders, and planetary astrophysicist.
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Shoes, sports equipment, apparel, and accessory, including bats, balls, eyewear, and electronic devices. Nike product line generates the most revenue is the footwear sector amounted to about 9.32 billion U.S. dollars in 2018. (Statista, 2007). The key brands including those that specialize in playing basketball, soccer, football, baseball, tennis and running shoes. It generates most of its annual sales through footwear, with help from massive franchises like the Jordan brand. Nike product line generates the least revenue is the equipment sector according to the Nike timeline revenue from 2009 to 2018.
The product needs to phase out because the company is committed to goal zero discharge of hazardous chemicals in their supply chain in the year 2020. Nike will continue working with brands, materials suppliers and chemical industry to achieve this goal. This innovative solution for transparency in chemical management disclosure. The company eliminating hazardous within their supply chain plan is critical to driving progress in the company.
The product will change internationally because it has a vast number of international employees. It follows the international human right rules and influences. Nike evolves by working with new employees overseas and they will continue to grow economically. Nike President & CEO Mark Parker is committed to maintaining a work ethic that involves unlawful discrimination that adds sex-based harassment, sexual orientation, gender identities, gender expression, race, and religion. Nike is always providing a healthy work environment.
Nike company in the U.S target market are the biggest player in athletic clothing and footwear. Nike rapid growth has been due to maintaining a competitive advantage by going after women’s customers. Adopting new market strategies to compete in the markets. Since 2005, the company’s annual sales & profit have been increasing. CEO Mark Parker is expanding women’s apparel, sports bras, and tights.
The international target market is women’s campaign, as part of its ongoing attempt to make training and running apparel for women outpaced the men apparel. The company is planning to gain more popularity and business in its women’s line by releasing new couture-style collection items like skirts and lace-trimmed jerseys.
These target markets are growing with its campaign women in their 20s and 30s are driving the athleisure trend in which customers buy them legging intent of working out in the gym or running errands. Nike goal is to increase the popularity of their women’s clothing line. Having a steady growth in Nike but also, they are still in the growth phase.
The pricing strategy for the U.S and international markets are the customer value-based because Nike has always been a global leader of the athletic sports industry and has an extreme ability to research and development new products according to the market need. The company has all the needed facilities from manufacturing plant to delivering locations which directly allowed them to persuade new markets by initiating new product into the market. They also are capable of using days capabilities to dominate most of the markets.
Nike used value proposition more for more because Nike in the world provides various varieties of designs and product development giving prestige to the buyer. Nike contains a strong reputation for developing new products, this makes strong and hard for competitors to come up. It also provides the great agreement of separating the products and services that remain the customers and coming again and again for getting the enhanced products that its competitors. For example, Nike Fuel Band is an activity tracker that can be worn on the wrist and can be tracked using iPhone. The device tracks physical activity, daily, steps, and burned calories amount of its users. Integrate the wristband details into Nike + to set user’s fitness goal, to check their progress and compare themselves to other parts of the group. Therefore, these devices are used to track all kinds of movements or activities of people using it.
Products: Nike is offering a wide range of products of sport and focuses on providing quality and a wide variety of all type of sports. Nike’s product includes Shoes, Jerseys, Apparel, Equipment’s, and Accessories. Place: Nike sells its products through a large number of outlets worldwide. They also sell through independent distributors and other networks worldwide. Price: Nike is using value-based pricing strategy. Nike’s price is designed to meet its competitors and also concentrates on premium segment customers. Promotion: Personal Selling, Direct Marketing activities, Advertising, Sales promotions, Public relations, Mobile marketing, Social media, and Digital marketing.
Strength- Globally recognized the brand and have international sales, have a competitive edge, offer a variety of products with good style and high quality. I chose this because is its low-cost manufacturing outside of the U.S through independent contract manufacturers. Weakness- Products are highly priced and outsourced. It has a very limited product line mainly consisting of sports shoes, equipment, and apparel. Opportunities- Intention of providing healthy lifestyle, it has emerging market worldwide and advancement in technology and style. This also has an opportunity to extend its product to attract more customers including those who are non-sport person. Threats- Has to face healthy competition, there are fake Nike products damaging the brand image. Because of the sales generation outside the U.S.
Nike two biggest competitors are Adidas and Under Armor. Adidas has a most established market in European countries. Adidas targets particularly younger and more athletic segments of the Europe and ratio is much more reasonable and it pays a higher dividend than Nike. But doesn’t boast the same level of high-end athletes like Nike. Under Armor, revenue has been significant starting in the American football market selling base layer. It tends to appeal to young market segment and prices its products at a premium for its perceived quality innovative material. The company will also continue to enter a new market to enter the outdoor performance apparel market to compete with Nike. But it lacks a personal fitness device like Nike.
Nike is involved in charity foundation such as the Nike Community Impact fund, Nike School Innovation fund and Nike School Innovation for children. Bringing positive change to the societies and overall chain. Athletes, like Rory Mcllroy, raise awareness and funds for kids impacted by Cancer at the Irish Open. On December 2013, the Nike Foundation and Bill & Melinda Gates partnership to launch a new initiative to reduce HIV infections in adolescent girls and young women. 80 percent of adolescent girls and young women are affected by HIV/AIDS in 2013. Nike Foundation & Gates Foundation working together will provide interventions that addressed HIV risk and ensure that girls have an opportunity to live a safe life.