Market Analysis: Marketing Analysis Summary Of Nike

Market Analysis Summary
Market Segmentation
Market segmentation is a crucial step to addressing a market need. This involves breaking large markets into segments that can be reached more effectively. There are different ways to segment markets, these are: Geographic segmentation, demographic segmentation, psychographic segmentation, and behavioral segmentation. Geographic segmentation involves splitting the market according to regions, countries, states, etc. Demographic segmentation consists of subdividing the market according to an individual 's age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation. Psychographic segmentation is composed of an individual, social class, lifestyle, and personality.

In this type of market Nike must target individuals who enjoy playing sports. Playing and talking about sports shapes these individuals personalities and lifestyles.
Nike 's Mission Statement: "To bring inspiration and innovation to every athlete* in the world."
-Bill Bowerman
Nike also uses the Mission statement as psychographic segmentation to target individuals. Behavioral segmentation

With behavioral segmentation, companies seek loyalty. When customer develops loyal behaviors towards a specific company the company becomes more stable and gains an important customer base. In order to improve a customer’s loyalty, Nike must focus on behavioral segmentation. In such competitive market like the one Nike participates in, it is important to gain consumer loyalty. By providing consumers with quality products and product differentiation consumers can identify, consumer loyalty can be developed.

Target Market Strategy of Nike
Nike Company’s lays a lot of strategies to aim their immediate users, athletes and all sportsmen. These targeting techniques include product sponsorship by professional and well known athletic team, college sports team as well as celebrity

• Competition is fierce at all levels in within the industry, especially among the leaders. This creates a sense of security for the companies that have been able to create a niche.
• Cost cutting due to restructuring of operations will give many companies the chance to price products more competitively.
• One area in the industry that is ever changing is research and development. The strong departments will surely capitalize on the trends of tomorrow if their efforts are successful.
• Increasing financial recovery in overseas markets proves to be an area of expansion for the athletic footwear and apparel industry.
• E-tailing, or customer-designed internet merchandise, is threatening the traditional distribution channels, thus eliminating the "middle-man" distributors and allowing for increasing profitability.
Threats
• The industry has reached a level of maturity. While style and technology in athletic apparel and footwear has reached a leveling-off point, the important aspect now is for companies to differentiate their lines.
• Inflation is looming over the U.S. economy, which may spark a cutback in consumer spending.
• Consumers are becoming savvier and may lean towards discounted