Strategic Marketing Management of Nike: Market Segmentation and Key Marketing Strategies

Strategic Marketing Management
Nike
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STRATEGIC MARKETING 1
Table of Contents
Introduction................................................................................................................................2
Market Segmentation.............................................................................................................3
Marketing Segmentation strategy of Nike.............................................................................4
Demographic Variables......................................................................................................4
Geographic Variables.........................................................................................................5
Behaviouristic Variable......................................................................................................6
Psychographic Variable.....................................................................................................6
Key Marketing Strategy of Nike............................................................................................7
Marketing mix of Nike.......................................................................................................7
Market segment of Sports Shoes..........................................................................................10
Competitive analysis of Global Market...............................................................................10
Conclusion................................................................................................................................12
References................................................................................................................................14
Appendix..................................................................................................................................17
Appendix 1...........................................................................................................................17
Appendix 2...........................................................................................................................17

STRATEGIC MARKETING 2
Introduction
Strategic marketing management executes the mission of the company with the help of
concentrated procedure in order to receive maximum results from the existing executed
marketing plan (Varadarajan, 2010). It involves classification of the target market or
customers. This type of management might support in identifying other opportunities for
marketing. A strategic and strong marketing plan might be created by this management style
(Hill & Jones, 2011). Most prominently, it supports company in transforming planned
strategies into reality. The report is being prepared in order to analyze the strategic marketing
management strategies of Nike Company with the help of case study. It will provide the
discussion of the complete case and the segmentation strategy of Nike for its sports shoes
brand. Along with this, it will highlight the marketing strategies of Nike which are
implemented by the company in the market to increase the awareness among people and
market share. Further, segmentation strategy of the sports shoes in the whole market will be
explained along with competitive analysis for the international or global market.
Nike is famous Multinational Corporation of America which is involved in the expansion,
creation, and designing of the global marketing and trading of equipment, footwear, services,
apparel, and accessories (Mahdi, Abbas & Mazar, 2015). Headquarter of the company is in
Beaverton, Oregon. The company is known as the largest supplier of the athletic apparel and
shoes in the world and one of the key manufacturers of equipment of sports. In 1964, it was
established as Blue Ribbon Sports, by Phil Knight, and Bill Bowerman. The name of the
company changed to Nike in 1971 which was taken from the Goddess of Victory of Greek.
The marketing of Nike's products is performed under the own brand along with Nike Golf,
Air Force 1, Nike Pro, Nike Stake boarding, Air Max, Nike+, Nike Dunk, Nike Blazer, Air
Jordan, Foamposite (Nike, 2018).

STRATEGIC MARKETING 3
The mission of the company is to increase the human potential by creating products more
sustainably, by making diverse and creative international team worldwide and by a positive
influence on the society where they operate.
The case study of Nike talks about its gradual growth in the market and its success that has
made it one of the top brands of sportswear. Marketing campaigns of Nike have always
presented talented athletes. For instance, runner Steve Prefontaine was the first spokesperson
for the company, had a bold attitude that was well-matched with the spirit of Nike. The first
advertising campaign of Nike was of worth $20 million with the tagline "Just Do It". Mostly
company targets young and talented athletes who can effectively represent the brand. One of
the big breaks for Nike was in 2008 in the Olympics in which it gives strong competition to
Adidas.
Market Segmentation
Market segmentation is said to be a procedure of distributing a wide-ranging customer market
or business market, generally involving potential and existing consumers depending on few
types of common characteristics (McDonald, 2012). While dividing the market or
segmenting, experts generally search for shared characteristics like common interests, similar
demographic profiles, and similar lifestyle and shared needs. The aim of segmentation is to
recognize high-income segment which involves those segments that are profitable and have
the potential for growth such that they can be chosen for special attention (Wedel &
Kamakura, 2012). Some of the basis of the market segmentation is:
Gender- The marketers of the company separates the market into very small segments
depending on the gender. Both women and men possess diverse interests and choices;
therefore there is a requirement of segmentation (Weinstein, 2013).