Scribd
Upload
39 views

Segmentation Case Study

Uploaded by

em2547160
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
39 views

Segmentation Case Study

Uploaded by

em2547160
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Lecture 3 Case Study

Nike in the Global Sportswear Market

Nike, one of the world’s leading sportswear brands, has built a strong global presence by
understanding its diverse customer base and applying targeted strategies. Since its founding in
1964, Nike has evolved from a small athletic shoe company to a powerhouse in the sportswear
and lifestyle market, known for its innovation, brand identity, and emotional connections with
consumers. To maintain its competitive advantage, Nike carefully segments its market and
evaluates the potential of each segment before tailoring its offerings accordingly.

Nike uses a mix to capture different customer segments. Nike primarily targets younger
consumers aged 15 to 40, focusing on individuals who are passionate about sports, fitness, and
an active lifestyle. Nike appeals to those who value high performance, quality, and innovation, as
well as those who are inspired by athletic achievements and self-expression. Nike customizes its
products and marketing strategies according to regional preferences, with a strong emphasis on
urban areas, where sports culture and fashion trends are highly influential. Nike segments
customers focusing on heavy users such as professional athletes, regular gym-goers, and fitness
enthusiasts, as well as more casual users who buy Nike products for style and everyday comfort.

"The Aspiring Athlete" represents younger consumers who may not be professional athletes but
aspire to live an active lifestyle and look up to famous athletes for inspiration. "The Fitness
Enthusiast" consists of individuals who prioritize physical health and wellness, often using
Nike’s products to enhance their performance. "The Urban Fashionista" represents consumers
who are drawn to Nike for its trendy and fashionable products, using Nike apparel and footwear
as lifestyle statements.

Nike uses data from customer purchase histories, social media interactions, and feedback to
understand the size and behavior of each segment. Nike aims to serve large segments that justify
the high cost of research, design, and promotion. This is why Nike focuses on large markets like
North America, Europe, and Asia, where sports and fitness culture have significant influence.
Nike’s extensive retail presence, e-commerce platform, and social media outreach, allow it to
reach target segments in various countries effectively. Each segment is different in its specific
needs, preferences, and Nike responds to this through its marketing strategies. For example,
Nike’s running shoes appeal strongly to fitness enthusiasts, while its lifestyle sneakers attract
more fashion-conscious consumers. Finally, Nike focuses on segments where it can execute
effective marketing and operational strategies, such as through athlete endorsements, sports
sponsorships, and community initiatives.

Nike evaluates the attractiveness of its segments, which is crucial in a competitive industry like
sportswear. Competition for Nike is intense, with brands like Adidas, Puma, and Under Armour
competing for market share. This rivalry pushes Nike to innovate constantly, focusing on
differentiation through product design, technology, and collaborations with designers. The
sportswear industry requires high investment in branding, technology, and distribution networks.
Nike leverages this barrier by maintaining its brand loyalty and capitalizing on its advanced
R&D capabilities. Nike’s costs are impacted by suppliers, especially with global supply chains

Dr. Rana Shaaban


and fluctuating material prices; thus, Nike invests in long-term relationships with suppliers to
secure reliable sources. Customers have access to a wide range of alternatives. To address this,
Nike creates strong brand loyalty through athlete endorsements, quality products, and
community-building efforts. Finally, consumers have alternative choices in lifestyle brands and
athletic wear. Nike counters this threat by blending performance and style, appealing to
consumers who value both function and fashion.

Nike appeals to its diverse customer base, focusing on specific consumer needs within each
segment. For example, Nike targets the "Aspiring Athlete" by sponsoring prominent athletes and
teams, making these icons role models who inspire younger consumers. The "Fitness Enthusiast"
is targeted through innovative, high-performance gear such as the Nike Flyknit series and Dri-
FIT apparel, designed to enhance athletic performance. Meanwhile, the "Urban Fashionista" is
attracted through collaborations with high-profile designers and celebrities, creating limited-
edition lines that blend street style with sportswear.

Nike’s approach enables it to establish a unique position in each segment, allowing the brand to
appeal to both athletes seeking functionality and lifestyle customers looking for trendy,
comfortable apparel. Additionally, Nike integrates digital channels, such as its mobile app and
online store, to personalize experiences and enhance convenience for tech-savvy consumers,
reinforcing loyalty across all segments.

Questions:
Discuss Nike’s segmentation categories and variables.
What are Nike’s customer personas?
What criteria does Nike use to evaluate its segments?
Discuss the 5 forces of porter and explain their importance in evaluating the Nike’s segments.
What type of targeting strategy does Nike follow?

Dr. Rana Shaaban

You might also like