Nike Inc Market Segmentation Company
In every company, a report plays a crucial component of the company since it gives essential information on the progress of the company. Being the Marketing manager it was my responsibility to write a report on the company and present it to the Managing director as authorized. Nike is one of the leading companies that concentrate in the design, marketing, and distribution of athletic equipment, accessories, footwear, equipment, and other accessories for a wide variety of sports and fitness activities. Nike is headquartered in Beaverton, Oregon. Primarily, Nike conducts its operational activities in Europe, America, Africa, the Middle East, and Asia Pacific. The Company distributes its products through its own retail stores, licensees, and other distribution outlets across 190 countries across the globe (NIKE, Inc. 2013). As at May 31, 2012, the employment capacity of the company stood at 44,000 people.
There is the relationship between a company and individuals. Nike Inc. recognizes the fact that the company and individuals are related in one-way or another. The company uses various strategies to inspire corporate personality to be innovative (Hill 2010). The Nike Inc. is recognizes the corporate personality and rewards them in various ways.
Nike Inc. has tremendous culture that is all-inclusive. The company has a creative and open culture that is inclusion and harnesses diversity so as to ignite innovation and inspire ideas. The culture of the company focuses on three main foundational priorities. These include fundamentals, empower inclusive cultures, and inspire ideas so as to ignite innovation. The Nike Inc. culture is rooted in inclusion, diversity and innovation (NIKE, Inc. 2013). The products of Nike Inc. are used by everyone in the globe since everyone is an athlete. Therefore, the culture of the company is then focused on being inclusive in nature. The employees and the outstanding teams of the company come from diverse regions of the world. The employees have developed an environment that embraces diversity and innovation.
Nike Inc. is one of the world leading innovators in athletics apparel, footwear, accessories, as well as equipment. Its mission is aimed at encouraging everyone to be an athlete. Therefore, the mission of Nike Inc. is to bring innovation and inspiration to every athlete ion the entire world. It asserts that everyone who has a body is a potential athlete. This implies that everyone in the world according to Nike Inc. is an athlete.
Nike Inc. is well known for transforming the corporate social responsibility to be SB&I (sustainable business innovation). The vision of Nike Inc. is to drive the global economy into sustainability. This means that the company vision is to enable the consumers and the company to be part of the global sustainable economy (Schultz 2007). Nike vision is to be part of ensuring that the people, profit and planet is always balanced, through mobilization of key constituents, integrating sustainability, and being innovative.
Nike Inc. is a global company that serves many people. Hence, it has various strategies that ensure that everything within the company’s mission and vision is achieved. Innovation is the core focus in the business growth strategy of the company. The company strategy is to create the best products and services that cuts across the globe. The company also employs the determination and philosophy of driving change (Lussier 2009). The corporate responsibility in the market place forms the pillar of associating with customers in the world. The company’s model is to improve the environmental, labour and social impacts. The company has unveiled a crucial strategy as well as key initiatives of achieving long-term growth and sustainability in the globe. The company’s model strategy is to increase its revenue, and satisfy its consumers.
For Nike Inc., segmentation entails a strategy aimed at reaching all the potential customers. Nike has existed for many years dating back to the year 1964. Nike initial target market began in the time of Bill Bowerman and Phil Knight when they went to college selling running shoes. During this error the market segmentation was at its initial stage and only the known market was the track running shoes. The market segmentation took another stage since the company realized that for it to be dominant it must market products that every player required. These include all dominant sports such as soccer, athletics, basketball, golf, tennis, as well as baseball. The market segmentation of Nike Company has been divided into three main segmentations, namely demographic segmentation, geo-demographic segmentation, behavioural, psychographic, as well as profitability segmentation.
Products and Services in the Segmented Markets
Nike Inc. is one of the leading companies in the design, marketing, and distribution of athletic footwear, accessories, equipment, and apparel for a wide range of fitness and sports activities. The markets are segmented in a manner that all the products are included in the marketplace. The major products and services provided by the company can be categorized into different product and service segments. These include products, footwear, equipment, and brands (Cendrowski 2012). The first segment is the product segment and it is composed of accessories and apparels. The footwear category is composed of items such as casual and athletic footwear. The equipment category is comprised of items such as bags, sport balls, socks, eyewear, electronic devices, gloves, bats, golf clubs, and protective equipment. The brand category comprises of renowned brands such as Nike, Cole Haan, Converse, Nike, Chuck Taylor, One Star, All Star, Star Chevron, Hurley, Jack Purcell, and Umbro.
Distribution in Segmented Market
Nike Inc. has a major distribution strategy that depends on the segmented markets. Its segmentation is based on the products service and the country. Nike operates under six major operating business segments that are categorized according to geographical locations. These operating divisions and segmented markets are Western Europe, North America, Emerging Markets, Japan, Greater China, Eastern, and Central Europe. Equally, the company’s products are divided into four product categories that consist of footwear, equipment, apparel, and other. The footwear product line produces products designed to capture specific athletic activities such as soccer, training, basketball, and running (Ferrell 2013). These products consist of shoes specifically designed for particular sporting activities. Casual and leisure shoes are also produced under this product line. The company has various distribution stores in the world, and uses advertisement to inform its customers on the availability of its products.
Features of Segmentation
Nike Inc. market segmentation has various features that give the marketers the information on the potential customers. One of the feature of Nike Inc market segments is the accessibility factor. Market segments to be focused by the company should be accessible in terms of economy and geography. In order to ensure that the products and services of the company are accessible, the company must choose the best marketing strategy. The communication process in these segments must correspond to relevant demands of the consumer in the segment stated.
The profitability is also another feature of market segments. It is worth noting that the company must have a large market segment that is worth focusing on. The main aim of market segments if to be considerate on issues marketing techniques in segment. Nike Inc. aims at making profits by making reasonable market segmentation.
Market responsiveness is also another feature of market segmentation. The market segments made by Nike Inc. should respond to the services and products of the company. The success of the company is based on whether the company meets its needs and the needs of the consumer.
Nike Inc. has a well-known brand in the world. As a matter of fact, the company sells and markets its products under its brand name. Since the year 2009, the company recognizes its brand as a model that consist six various geographies. Nike branding entails various sports and a category, which include athletics training, basketball, and running, sportswear, and action sports. The company uses various bards to market its product (Imlay 2006). One of the well knows branding of Nike is “Just do it”. This has become a successful branding for Nike Inc. for many years. The branding of Nike Inc. has undergone a lot of changes, all with the aim of making it cut across all the markets.
In most cases, many organizations are not in a position to segment both the industrial and consumer markets in a successful manner. Perhaps, Nike Inc in some occasions has failed to segment its markets successfully due to various reasons. One of the important concepts in marketing and business is the customer and market segmentation. One of the reasons for failure to segment is the issue of scope of segmentation. In this case, it is difficult for the company to identify specific extend in which the market is to be segmented.
The marketer issues are also another challenge that the company faces in making its segmentations. The marketers find it difficult to forecast ion the way to segment its marketing strategy. In the beginning, the company is used to traditional ways of segmenting the market, but has the business grows the marketers become confused since the entire practice of segmentation is flawed, and the maximum potential of the company’s sales is not achieved. The greater benefits that the company would have achieved remain untapped due to improper segmentation of markets by the marketer.
Another reason for the failure to segment the market is the ever-changing behaviours of the consumers. Perhaps, consumers in most cases segment themselves in one way or another. Therefore, it becomes difficult for the stakeholders responsible for market segmentation to get the right way that the customers segment themselves. Consumers segment themselves so as to belong to the same group as the others; the emerging segments may be challenging for the companies marketers.
The segmentation may not be successfully because of the fact that it may ignore potential audience and customers. It is worth noting that leaving certain consumer potential audience will prevent the company from reaching its potential level. The brand of Nike Inc. may probably have permanent association with specific consumers, especially when social class, lifestyle and race dominate the decision of segmentation. This may deter other potential consumers from using the product. For example, some Nike Inc. products target the youth living the old in the marketing segmentation.
Several products and services of Nike Inc. are used and purchased by many audiences. These suggest that the market segmentation should be related in one way or another. Therefore, it is difficult to group together the variables required to develop related characteristics. The variation of market segmentation becomes complex to obtain the characteristics of consumers.
Overcoming Segmentation Failures
The segmentation failures are in a position of affecting the success of the company. The challenge that prevents successful implementation of segmentations process must be focused on. One of the ways to overcome the segmentation failures is through tremendous research. Consumers are important in the business and understanding their demands is essential. Research will provide insights on how the markets should be segmented successfully. It is through research that the marketers will understand the consumers changing behaviours and the trends of the market.
Accessing the markets beyond its boundaries will also help in overcoming the segmentation failures. The accessibility of market is will help in choosing the proper variables to use in segmenting certain markets, develop a segmentation profile, and validate the emerging segments. Re-segmentation of markets will also help the marketers to include the customers who might have been left in the previous segmentation process. It is also crucial to decide of the targeting strategy based on statics before any market segmentation is carried out. In this case, the identification process based on data and statistics will be a roadmap for Nike Inc. in deciding how and which segments should be targeted for segmentation.
Internal Shareholders in Segmented Markets
The segmentation of markets puts into consideration the internal stakeholders of the Nike Inc. Certainly, Nike takes pride in focusing on ethical issues in the company, and working towards being one of the ethical companies in the world. Nike places very much responsibility on the external and internal stakeholders at the top important issues. The company expands its resources, time, and money in ensuring that the external and internal stakeholders are satisfied and ethical duty is also carried out (Chung, 2013). In the segmentation process, Nike Inc. view both external and internal stakeholders as very important components to company’s sustainability and success. Internal stakeholders are very important to Nike Inc. One of the most important internal stakeholders is the employee. Just like every company, Nike depends greatly on the employees. The Nike Inc. is not makeup of one manager, or an advertisement, or a celebrity, it is made of the people of Nike. It is the people who are important since it drives the company towards its goals and objectives.
The company ensures that the employees are satisfied in one-way or another. The code of ethics of Nike Inc. is to provide safe working environment, healthy working place, as well as promoting the wellbeing of employees. The code of ethics of Nike Inc. is clear evidence on how the employees are important internal stakeholders (Locke 2007). The employees determine production and the entire progress of the company. It is the human resource ion the company that ensure that the machines and other tools of production. The managers and the entire management team treat employees with respect, and grant them the right to freedom and privacy.
External Shareholders in Segmented Markets
Nike Inc. is one of the known companies in the world that has various external stakeholders due to the services they offer. The company has two important external stakeholders that should be recognized in the segmentation process; they include the community and environment. The company focuses on minimizing its impacts on the environment. The company has entered with partnership with the World Wildlife Fund in order to preserve the wildlife. It is an alliance that focuses on saving the climate savers with global corporation. The company is also committed in ensuring that the environment is sustained so as the future generation will use it (Lewis 2010). The company focuses on supporting the utilization of new energy. It has been recognized for many years for being part of the leading team on issues of climate change and global warming. In fact, Nike Inc. creates awareness on impacts of climate change based on the segmentation of markets due to variation of regions, and the impacts of greenhouse gases emission.
In addition, Nike is also committed to the entire community in the local and national view. Nike believes that sport brings changes in society and influences the entire life of people. Nike through sports has touched the lives of many people. Sports are a component of community empowerment and ensure that people in the world reach their potentials. Nike through sports believes that sport eliminates racism, builds leadership, resolves conflict, and enhances skills among the youth (Schultz 2007). When sports are used positively it becomes a powerful tool to bring the community together. The community being an external stakeholder makes Nike committed to it since it makes part of its customers. The company supports the community by being part of the initiative to reduce HIV/AIDS problem in Africa. For example, the company uses the slogan being cool to know your status. In addition, the company advocate for safe sex among sexual partners. Nike Inc. uses its resources to maintain its internal and external stakeholders.
Nike Inc. is one of the biggest companies in the world. Its mission and mission has always been the basis of its operations. The market segmentation has always played a crucial role in the success of the company. The market segmentation has always put the company ahead of its competitors. This is because all of its potential customers are served accordingly based on their segment. The market segmentation of Nike Company has been divided into three main segmentations, namely demographic segmentation, geo-demographic segmentation, behavioral, psychographic, as well as profitability segmentation. Under these segments the consumers from all parts of the world have a chance to access the products of Nike Inc. The strategies of Nike Inc. on issues of market segmentation will always give them competitive advantage in the market place.