Nike – Market Segmentation Essay
Nike – Market Segmentation
Nike has been around for quite a while now actually dating all the way back to 1964 when it was one known ass “Blue Ribbon Sports”. Nike’s initial target market started out as a side gig for Phil Knight and Bill Bowerman as they went around college to college selling running shoes to local track runners with their unique waffle iron design which was initially done by Bill Bowerman which he used to make with his wife’s waffle iron.
In time Nike sprung in to a much more bigger developing shoes for all sorts of sports from baseball to tennis, basketball, soccer, and even golf. Nike understood they had to tackle all sports to be the dominant brand in athletic sportswear which Nike has well done so. Nike’s big sport by all means has to be basketball which ever way you look it its where Nike builds its popularity although they do gain some credit for tennis and running but basketball by all means is Nike’s key sport.
Nike Business Marketing 101
Nikestore.com is a major asset to Nike’s portion of sales anything Nike you are interested in Nikestore.com has got you covered from the everyday walking or running shoe right down to the on field cleats. This of course not limiting itself to our everyday t-shirts, comfy pants, or just a plain old pair of socks.
Now of course ill mention is where Nike Inc. holds the advantage against its competitors – weekly if not monthly release which gather in a rather large amount of demand or “hype” as sneaker-heads call it. Nikestore.com has its own twitter handler which goes by @nikestore on twitter – this aside of Nike’s other several twitter such as separate twitter handler for its several location such as @NikeNYC, @21Mercer, Etc… – @nikestore has a very reputable amount of “followers”, @nikestore has 561,361 followers mind you this amount increases on a daily basis and this is also not including the people who dont have twitter accounts yet still visit the @nikestore page.
Nike’s approach to this twitter phenomena is that Nike Inc. knows how to approach and penetrate the young market via the internet – Nike already understands the prestige exclusivity that their products carry -now taking this into a matter of applying the penetration to the internet market Nike releases popular sneakers via twitter link only, so your only chance at getting a pair of sneakers is via twitter? not necessarily but take in to account with the demand via the retail chains does anyone really want to wake up early on a Saturday morning take the trip to the store to not have the slightest chance at buying a reputable sneaker which probably might be sold out due to the amount of kids already lined up in front of the store? chances are no one really wants to wake up that early on a Saturday morning.
Nikestore.com has taken this in to their measures so Nike now does this simple method wake up a little earlier than 8am – which is the usual time that Nike releases its products via twitter link – hop on the computer, head to twitter.com/nikestore click wait for the link then click on it purchase, from there you either got them or they sold out on you. Simple solution instead of having to travel to the retail store you know have bought your product or not but guess what? now you get hop right back in to bed or stay up its really your choice.
Nikestore.com Home Page
Nikestore.com Product Assortment
Nike Inc. Reaches the Market
Nike has been very successful over time one would say a very well developed and managed brand. Nike saves money due to the fact that Nike Inc. do not make their own shoes instead Nike hires factories in other countries to make their products there for Nike saving by having the products made elsewhere and having to pay less, Nike also benefits of this because now Nike becomes the designer/developer of their shoes and the distributor.
Nike also acts as in weird way as the Manufacturer and the intermediary – due to the fact that Nike makes the product – and uses a strategic alliance with retailers such as Finishline, Footlocker, and Eastbay.com by supplying them with Nike products to be sold to the consumers. Therefore Nike reaching the public from many different retail chains.
Nike also ensures trust of their consumers with the use of warranties on all their products. Nike gives a certain amount of time to return products, although if the product is in new condition Nike allows you to return the products at any time, also Nike allows you to purchase a product anywhere else such as Footlocker, Finishline, and any other place you cant think of the Nike warranty applies – where Nike will reimburse you with a Nike gift card. Nike also provides a contact number where you can call and speak to a representative and if your feeling a little shy you can go to nikestore.com and chat with a representative where they will help you with all your needs.
Nike is also well known for the presentable designs with their products – Nike does no less with the presentation of their stores which are designed to look like sport facilities which never fail to impress, always keeping their customers impressed and wanting more.
Nike’s brief history goes back to 1964 when it was first founded by Phil Knight and Bill Bowerman at the University of Oregon. The company started of as distributors for a company called Onitsuka Tiger mostly known today as the popular name brand ASICS. Phil Knight and Bill Bowerman would go to track meets and sell sneakers out of Phil Knight’s car.
Eventually Bill Bowerman developed his own sneakers with the “Waffle Design” which was made by using an actual waffle iron, Bowerman first used this to make a pair of sneakers for Otis Davis. The name Nike comes from the Greek goddess who represented victory. Nike got their famous swoosh from a contest that was held and the initial price paid for the swoosh was $35 although the winner was much more awarded after Nike grew larger. Now Nike remains the largest sneaker provider in the world.
Nike’s Mission statement is To bring inspiration and innovation to every ATHLETE in the world. “If you have a body, you are an ATHLETE.” – Bill Bowerman. Nike focuses on the group of people who play casually, religiously, or even once in a while, Nike states that anyone is an athlete therefore they’re products are for anyone to use not just for the super athletic professionals. Posted 31st August 2012 by Delvis Nunez