03 Mar Describe your target market in detail, including information on the geographic, demographic, psychographic and behavioral factor
CH5 • Describe your target market in detail, including information on the geographic, demographic, psychographic and behavioral factors used to choose your market segment.
CH5 • Identify the needs that cause your target market to buy.
CH6 • Create a written positioning statement that identifies:
- Your organization's product/service
- Your target market – Needs that cause your target market to buy including emotional and
logical drivers – How your product solves the target market's needs
- What makes your organization different from its competition
CH4 • Include sources of secondary research that support your analysis
Nguyen 1
Khanh Nguyen
Craig Clark
MRKG 1331 Sections: 86001 and 86002
February 6, 2022
Nike SWOT Analysis
Nike Overview
Nike, Inc. is an American multinational corporation specializing in creating, producing, worldwide retailing, and selling shoes, clothing, garments, gears, accessories, and services. Its headquarters are in Portland, Oregon, near Beaverton. Phil Knight and Bill Bowerman launched the corporation on January 25, 1964. The business has developed considerably from its humble beginnings in a little town in Oregon. It has grown to become the biggest sports footwear manufacturer in the world. They began with only a pair of shoes and a t-shirt, but they have grown their range of services and goods over time.
Nike has been a leading producer of sportswear. Sports have been overly accepted across so many nations and are being used to bring people together. Nike has been producing shoes that have been reliable to athletes for too long now. Other than shoes, Nike can produce apparel not only aimed at sports but for casual and official use. The apparels can be for children, adults, women and men. As an existing brand, Nike will have the attention of the people and will not have to spend a lot on advertising and marketing.
In the 4Ps, the product will be clothes ware. They will official and casual ware for both men and women. They will also include kids. The quality of the clothes will match the name of the brand. Subsiding the price for the new products will make it easier for sales to be achieved. The cost should be favorable as the target customers vary from rich to humble members of the society. The place for production and sell will be Nike’s headquarters for a start. Beaverton, Oregon, in the United States has a higher chance of being supportive of Nikes products. Afterwards, the commodities will be available in all Nikes’ shops across the world. Promotion of the products will be done by celebrities who have a good reputation and great following.
Nike SWOT Analysis
This section provides a detailed analysis of some of the strengths, weaknesses, opportunities, and threats that Nike has or faces.
Strengths
● Nike has very strong brand awareness and recognition in apparel due to the uniqueness and the quality of products they make.
● They have a huge customer base across the world; no wonder they are available in over 170 countries worldwide.
● Nike has low manufacturing costs, which helps them maximize the output, hence generating more revenue.
● The company has in-house professionals whose work is to develop unique shoe designs.
● Nike has a wide brand portfolio such as Shox, Converse, Nike Blazers, among others, enabling them to have massive dominance in the cloth industry.
● Nike has a high market share (Brohi et al., 2016).
Weaknesses
● Poor Working Conditions in Other Countries – Nike has been singled out for criticism over the previous two decades because of its terrible working conditions.
● Because of its price sensitivity, Nike's retail business renders the company vulnerable as it sells 65 percent of its goods straight to wholesalers or retailers.
● Nike has huge pending debts.
● Dependence on the United States Market – Even after establishing a worldwide presence, Nike continues to rely on the United States for sales and earnings. Nike is embroiled in a never-ending legal battle:
● Nike's over-reliance on sportswear or lack of diversity proves to be another major undoing for Nike (Brohi et al. 6).
Opportunities
● Emerging markets such as India, China, and Brazil quickly adopt fashionable apparel and footwear.
● Innovation such as the combination of technology and sports clothes might be beneficial.
● Nike depends on various suppliers and manufacturers for supply and production. For a more efficient supply chain, the brand might purchase or make some of them.
● Nike opts to part ways with some of its biggest multi-brand retailers and wholesalers.
● Incorporation of Artificial Intelligence acquired (Brohi et al. 9).
Threats
● Tax clampdowns – Nike's net income has drastically reduced due to the huge sums it pays through taxes
● Nike faces stiff competition from their rivals such as Adidas, Under the Armor, PUMS, Kappa, among others
● Nike has recently been faced with counterfeiting issues, with the company coming up with nearly the same resemblance but of low quality, which becomes hard for buyers to distinguish (Brohi et al. 12).
Works Cited.
Brohi, Hina, et al. "Strategic Marketing Plan of Nike." (2016).
Polderman, Mickey. Responsiveness, Cost-Efficiency and Sustainability in The Global Apparel Supply Chain: Towards an Integral Approach on Manufacturing Location Decisions A Nike Inc. Case study. Diss. University of Groningen. Faculty of Economics and Business, 2020.
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Marketing Plan Strategy (PART 2)– WHO IS YOUR CUSTOMER?
Cultural Factors –
This is shifting – need to continually monitor a TOTAL MARKETING STRATEGY
Culture is the most basic cause of a person’s wants and behavior.
Subcultures are groups of people with shared value systems based on common life experiences and situations. For example, the African American market is growing in affluence and sophistication. The U.S. Hispanic market consists of more than 59 million consumers and is one of the fastest growing. Asian Americans are the most affluent U.S. demographic segment.
Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors..
Groups and Social Networks. A person’s behavior is influenced by many small groups.
Reference groups serve as direct (face-to-face interactions) or indirect points of comparison or reference in forming a person’s attitudes or behavior.
Opinion leaders are people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others.
Word-of-mouth influence is the impact of the personal words and recommendations of trusted friends, associates, and other consumers on buying behavior.
Influencer marketing involves enlisting or creating opinion leaders to serve as “brand ambassadors” who spread the word about a company’s products. Electronics purchasers is a big segment. 70% seek advice before purchasing.
Online social networks are online communities where people socialize or exchange information and opinions, YELP, Facebook, Twitter…(How credible are these?)
Family is the most important consumer buying organization in society. Do you agree? Changing Husband/Wife roles & Children Influencers
Occupation. A person’s occupation affects the goods and services bought.
Age and Life Stage. People change the goods and services they buy over their lifetimes. Tastes in food, clothes, furniture, and recreation are often age related.
Economic Situation. A person’s economic situation will affect product choice.
Lifestyle is a person’s pattern of living as expressed in his or her psychographics – VAL’s
Personality and Self-Concept.
Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one’s own environment.
The basic self-concept (self-image) premise is that people’s possessions contribute to and reflect their identities; that is, “we are what we have.”
Motivation. A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction.
Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world.
Learning describes changes in an individual’s behavior arising from experience.
Beliefs and Attitudes.
A belief is a descriptive thought that a person has about something.
Attitude describes a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea.
** Market segmentation is most effective based on consumer not producer point of view – and Dynamic Segmentation means that criteria need to change – segmentation is NOT static
Geographic Segmentation calls for dividing the market into different geographical units such as nations, regions, states, counties, cities, or even neighborhoods.
Demographic Segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.
Psychographic Segmentation divides buyers into different groups based on social class, lifestyle, interests, opinions, priorities or personality characteristics. (Examples include couch potatoes, status seekers, outdoor enthusiasts)
Requirements for Effective Segmentation
“Can we make money?” Is it lucrative – This will drive the 4 P’s!
To be useful, market segments must be:
Measurable: The size, purchasing power, and profiles of the segments can be measured
Accessible: The market segments can be effectively reached and served.
Substantial: The market segments are large or profitable enough to serve
Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.
Actionable: Effective programs can be designed for attracting and serving the segments.
Target Market, Differentiation and Positioning
Market targeting involves evaluating each market segment’s attractiveness and selecting one or more segments to enter.
A company with limited resources might serve only a few “market niches.”
Market niches are segments that major competitors overlook or ignore.
Most companies enter a new market by serving a single segment. If this proves successful, they add segments.
Market Differentiation and Positioning
Product position is the place the product occupies relative to competitors in consumers’ minds.
Positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Volvo = safe cars, Disney = wholesome entertainment, Apple = technology leader
Positioning begins with differentiation—differentiating the company’s market offering so that it gives consumers more value.
POSITIONING STATEMENT “Fill in the blanks”
WE ARE (describe firm) ____________________and WE WILL (what will be accomplished) _________
BY (how it will be achieved)
TO ACHIEVE (end benefit(s)) FOR (targeted audience) ____________________________________
