Introduction of NIKE

Shashank Gupta
P.G.D.M. (2019-21)
Section- B
Marketing
Assignment
Introduction of NIKE
NIKE is an American Multinational Corporation that is engaged in the
design, development, manufacturing and sales of footwear, apparel,
equipment, accessories, and services. The companies headquartered near
Beaverton, Oregon, in the Portland metropolitan area. It is the world’s
largest supplier of athletic shoes and apparel. The company was founded
on January 25, 1964, as Blue Ribbon Sports by Bill Bowerman and Phil
Knight, and officially became Nike, Inc. on May 30, 1971.
Product Mix of Nike
Nike has proven itself a popular brand and has created a niches by selling
products such as apparels, footwear and various types of sports equipment. It
focuses on basketball, soccer, running, athletics, combat sports, baseball and eye
wear. Company also sells shoes for outdoor activities like golf, tennis, cycling and
recreational uses.
Footwear Apparel Equipment National Team
 Running Shoes  Headwear  Bats Gear
 Football Shoes  Tops/T-shirts  Hockey sticks  Jerseys for
 Tennis Shoes  Hoodies  Balls Cricket Team,
 Sneakers  Track Suits  Bags Hockey Team,
 Slippers  Jersey  Watches/ Bands and Football
 Shorts Team etc.
 Socks
STP of Nike
Segmenting:
Nike is an industry that is famous for making products like, athletic footwear,
apparel, and sports equipment. So the market for Nike is segmented for those
customers who want to be an athlete or want to be fit whether the consumer is
children, teens or adults. Segmentation of the market can be done according to
demographic, geographic, psychographic and behavioral.
 Demographic: Nike targets individuals according to
Ages
their gender, age, income and life cycle stage. Nike Children(1-10y)
targets the customers between 11-45 years old and Teens (11-18y)
mainly to the teenage customers for building long- Adults(19-45)
term customers.
Gender is also the factor that Nike uses to attract
customers. By knowing a high audience of males, Nike invested for
approaching female consumers as well. Income is also can be the main factor
because Nike products are consumed by middle-class or upper class-
customers only.
 Geographic: In the world, there are different countries and regions where
different sports are played and Nike is a sports equipment manufacturer, so
Nike segmented the market according to region, countries or urban cities and
promotes different campaign or advertisement in different regions to attract
their customers like in India Nike promotes cricket equipment, in South
America and Europe for soccer.
 Psychographic: Nike targeted customers according to lifestyle, personality,
activities, and interests. Nike targeted to those customers who are having
some interest or passionate for sports, by applying sports-centric strategy,
motivating, inspiring through campaign and advertisements and who are
fashion trendy or brand conscious.
 Behavioral: Nike gives various, innovative and quality products and athletic
feeling, by which customers get benefits and purchase product more
frequently. Nike gives the opportunity to their customers to give usage rates
or reviews and get to know about the customer’s attitude towards their
products.
Targeting:
Targeting is the second step, where the company identified the market and
evaluate the target market based on measurable, substantial, accessible,
differentiable and actionable.
 Nike measures the size, purchasing power and characteristics of segments and
targets professional athletes and sporty individuals.
 Nike sells all its products in showrooms as well as online or other sports shops
that are easily reachable and accessible.
 Nike is differentiable and identifiable because it gives the benefit to consumers
to customize their own footwear.
 Nike spends so much money by sponsoring great athletes and sports persons
for the advertisement to attract customers.
Positioning:
Nike has made the perception as the market leader of sports equipment in the
mind of the customers. Nike sponsors the sports and equipment to cricket team,
hockey team and football team of India.
 Nike brings inspiration and innovation to every athlete.
 Nike shifted from product focus to attitude focus.
 Nike has its famous campaign “BLEED BLUE” in India.
Product Life Cycle of Nike
The product life cycle is the four main stages through which products move:
introduction, growth, maturity and decline. Below is the product life cycle for Nike
shoes.
1) Introduction: When new Nike shoes are being released, there is a lot of television
advertisements, posters, billboards and more. They build up awareness to create
a desire and demand for the shoes that is at the highest just as the shoes are
being released.
2) Growth: At this stage sales start to increase as the market has accepted the
product. As more and more customers buy this product, the price increases.
However, the customers are still willing to pay the price because of the brand
they are getting.
3) Maturity: In the maturity stage sales reach their peak. The shoes then begin to
stay on shelves or in stock for long periods of time as the demand is not as high
as it was when they were first introduced.
4) Decline: As the shoes remain on the shelves they become ‘old news’ because new
shoes are now being released, removing all the hype from this shoe and placing
it on the newest shoe that is being released. At this stage the shoe has reached
its capacity.
2007 2008 2009 2010

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Shashank Gupta

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