The rise and fall of governments’ results in change in policies relating to tariff on import and export, foreign direct investment, etc. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. Revenue of the cosmetic industry in the U.S. Value of the leading 10 textile exporters worldwide, Vegetable oils: global consumption by oil type 2013/14 to 2019/2020, Cocoa bean production worldwide 2018/19 & 2019/20, by country, World coffee per capita consumption: major consumer countries, Cosmetics Industry in the U.S. - Statistics & Facts, Research expert covering agriculture & FMCG, Profit from additional features with an Employee Account. All work is written to order. $39 per month* Market segmentation of the Nike company 3635 Words | 15 Pages. Nike segments market based on world and country region, city and popularity density in different way. This gives Nike an advantage over its competitors as its name and logo is recognized globally. Greater China revenues grew 19.4% year-over-year to $1.4 billion in 1H15. Nike uses psychographic segmentation variables to make its offerings more attractive to the target customers. Nike segments its markets on the basis of age, gender, geographic locations, psychographic, benefits sought, and usage. There a many different aspects to consider when deciding on how to market a product and who to market a product to. It also offers products to many different people who have different tastes, interests and needs. Europe, Asia, North and Latin America are the main markets in which Nike sells its products, which makes it a truly global organisation. NIKE, Inc. is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. Nike's revenue worldwide from 2017 to 2020, by region (in million U.S. dollars) [Graph]. While using geographic segmentation, the company might launch different products for that particular market or might also use different marketing strategy to attract the said geography. Blog. Hence, this poses a threat to Nike. Nike's Greater China and Europe, Middle East & Africa segments were the only geographic segments that grew revenue in Q1 FY 2021 amid the pandemic. On the basis of usage, Nike is trying to maintain the constancy of purchases being made. However in March 2009, Nike announced its plan to reorganize its global business in order to bring goods closer to the markets and in turn consumers as well as to reduce management overlap. Along with the decelerated sales labor cost and raw materials prices are increasing, which in turn will affect the profit margin of the company. Apart from that the consumers also have a choice to design their own shoes on the official Nike website where they can choose the design, color, features, etc. The message that Nike spreads to every customer segment is simple. The US policies have fortunately enables NIKE to grow and market its products. Dollars). Nike makes every attempt to reduce the impact of each of its products on the environment throughout its Product Life Cycle from design to manufacturing, and ultimate disposal. Until 2009 Nike’s geographical markets consisted of United States, Asia-Pacific, Americas and an area comprising of Europe, Middle East and Africa. Nike’s target market for its shoes, clothes and other accessories are males and females between the age of 13 and 35 years. Nike is a global brand with strong brand recognition. In the fiscal year 2020, Vietnam produced 50%, China produced 22%, and Indonesia produced 24% of total Nike’s footwear. How many global employees Nike has 2009-2020, Value of the leading global apparel brands 2020. Due to the diversified product range, Nike is unable to focus on one main product. In these geographies Nike’s marketing efforts are largely focused on urban areas with high market densities. In the first part, we will begin by covering the history o f the company and w e will go over an in-depth “With our acquisition of Umbro, NIKE has extended its position as the biggest football Company in the world,” Parker said. Nike is aware of the conditions that affect the workforce, communities, products, supply chains and people, from rising fuel prices, population growth, climate change and reduction in the availability of natural resources. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Nike’s main production faculties lie in the Asian countries where political unrest prevails. Overview and forecasts on trending topics, Key figures and rankings about brands and companies, Consumer insights and preferences in various industries, Detailed information about political and social topics, All key figures about regions and countries, Everything you need to know about Consumer Goods, Identify market potentials of the digital future, Technology Market Outlook Nike is targeting further geographic expansion and farther marketing penetration in all regions. There are different ways to segment markets, these are: Geographic segmentation, demographic segmentation, psychographic segmentation, and behavioral segmentation. For example, Products relating to Rugby are advertised more frequently in Europe when compared to U.S., as Rugby is popular in Europe than in U.S. Nike promotes a positive and confidant attitude and targets people who want to attain that attitude. On the basis of benefits sought, Nike provides shoes, apparel and equipment for an extensive variety of sports all over the world. Why your go-to-market strategy should be industry focused; Dec. 1, 2020. For Nike, their targeted customers are athletes and mostly young adults. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Most of Nike’s (NKE) incremental revenue was recorded in its North America market, Nike’s largest geographical segment. As Nike stated on February 10th, this organizational change is part of a wider company restructuring that may result in an overall reduction of up to 4% of the company’s workforce. Although Nike has a large product portfolio, its income is still profoundly dependent on its share of footwear market. Are you interested in testing our corporate solutions? ", Nike, Nike's revenue worldwide from 2017 to 2020, by region (in million U.S. dollars) Statista, https://www.statista.com/statistics/241692/nikes-sales-by-region-since-2007/ (last visited December 19, 2020), Nike's revenue worldwide from 2017 to 2020, by region, Retail sales of the global apparel and footwear market 2017-2030, Size of the global sports market in 2018 and 2023, by product category, Sports market share worldwide in 2018, by country, Global sales of the top performance apparel, accessories, and footwear companies 2019, Global sales growth forecast of top athletic wear companies 2020, Global market shares of the leading apparel brands in 2017, Global gross profit of Nike from 2014 to 2020, Domestic sales share of Nike worldwide from 2016 to 2020, Global revenue of Nike from 2016 to 2020, by sales channel, Global revenue share of Nike in 2020, by product type, Global revenue of Nike from 2016 to 2020, by product category, Nike's revenue worldwide 2017-2020, by region, Nike's North American revenue 2009-2020, by segment, Nike's revenue in EMEA 2016-2020, by segment, Nike's revenue in Greater China 2009-2020, by segment, Nike's revenue in Asia Pacific & Latin America from 2016 to 2020, by segment, Number of Nike's retail stores in the U.S. 2009-2020, Number of Nike's non-U.S. retail stores 2009-2020, Nike's marketing expenses worldwide from 2014 to 2020, The adidas Group's net sales worldwide from 2000 to 2019, Global share of adidas retail sales in 2019, by region, Share of adidas' net sales worldwide in 2019, by product type, Share of Puma's sales worldwide in 2019, by region, Share of Puma's consolidated sales worldwide in 2019, by product category, Under Armour's net revenue worldwide 2008-2019, Under Armour's net sales share worldwide in 2019, by region, Nike's quarterly revenue worldwide from 2017 to 2020, Gross profit margin percentage of Nike worldwide from 2014 to 2020, Nike's revenue in Western Europe 2009-2017, by segment, Nike's revenue in Central and Eastern Europe 2009-2017, by segment, Nike's revenue in Japan 2009-2017, by segment, Nike's DTC revenue share worldwide 2011-2015, Global revenue of Nike from 2017 to 2020, by customer segment, Nike's revenue in emerging markets 2009-2017, by segment, Nike's carbon footprint of products 2015-2019, Media perception of Nike in the Netherlands 2020, by characteristic, Impact of Kaepernick campaign on U.S. consumers' purchase decision of Nike products, Market share of the global leading brand apparel companies 2016, Net sales share of Urban Outfitters worldwide in 2020, by product category, Global net sales share of Levi Strauss in 2019, by brand, Retail sales of the global jacket and coats market 2012-2021, Merchandise revenue share of Cabela's worldwide 2013-2016, by product category, Nike's revenue worldwide from 2017 to 2020, by region (in million U.S. dollars), Find your information in our database containing over 20,000 reports, Tools and Tutorials explained in our Media Centre, operated more than 1,000 retail stores worldwide in 2020. Corporate solution including all features. However, this is no problem for Nike as it is the number one sports brand in the world. Due to Nike’s huge brand awareness, its competitors have to put in more effort to sell their products and also new entrants in the industry should have huge amount of capital to invest in advertising to create brand awareness and to become a significant if not a major player. Along with these Nike also offers performance equipments which include bags, socks, sport balls, eyewear, electronic devices, bats, gloves, golf clubs, and other equipments designed for sports activities under the brand name NIKE. CBBE is built exclusively through recall, relevance, and esteem (Keller 1993). They now want fashion-oriented products for leisure activity instead of sports activities. While the south is passionate abo… We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Browse this series on Market Realist: Part 1 - Nike in 2015: An Earnings Smash, a Widening Moat, and Record Highs. Nike has different advertisements for men and women of every race and nationality separately. The company also expects to generate over $12 billion of cumulative free cash flow from operations through 2015. The government of any country must enforce economic policies that will benefit the growth of industries and businesses in that particular country. Profit from additional features by authenticating your Admin account. Marketing Nike … This message is clear in Nike’s tagline ‘Just Do It’ or ‘If you have a body, you are an athlete’ which is shown in many advertisements of Nike. This company is one of the major suppliers for the world’s sports shoes and one of the major manufacturers of sports equipment. Research and Development has always been Nike’s strong point as can be seen from its ever evolving and innovative product range. On the basis of age, Nike targets a variety of age groups from young adolescent to middle-aged adults. Since expenses are low, Nike is able to enjoy profits. Nike's market penetration and geographic expansion strategy are predicated upon building consumer-based brand equity (CBBE) and utilizing specific tactics to diffuse it across unreached demographic and psychographic sets. Nike begins by establishing a leading position in athletic shoes in the target market. Please contact us to get started with full access to dossiers, forecasts, studies and international data. Market targeting Market targeting is evaluating different market segments, a company must look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources. Outside of North America, Western Europe is the largest geographic demographic for this brand. Nike acquired Converse to provide for the increasing demand from Generation Y for retro and classical footwear. Nike also faces a problem with the labor and factory conditions in the factories located in the Asian countries. The largest of these by weight is cured rubber used in shoes soling. NIKE apparel and accessories are designed to complement our athletic footwear products, feature the same trademarks and are sold through the same marketing and distribution channels. Chart. Segmentation is central to data-enabled marketing and each segment has its own points in community of interest interaction. This may lead to bad publicity of the company as a whole and may affect the sales as people nowadays want companies that are socially reliable. The company's headquarters are located near Beaverton, Oregon. This means it doesn’t have any expenses that may arise out of maintenance of any of the above. Also teams of any sport, any size, and anywhere in the world are targeted by Nike. Please authenticate by going to "My account" → "Administration". Nike segments market based on world and country region, city and popularity density in different way. This was based on growth expectations across its portfolio, which includes NIKE Brand, Cole Haan, Converse, Hurley, Jordan Brand, NIKE Golf, and Umbro. Nike now is focusing on targeting more on women and Generation Y. Nike also operates a ‘futures’ option wherein the retailer can order up to 6 months in advance. Nike Inc 's Annual Sales by Country and Region in May 31. China is another key market for Nike. Another weakness of Nike is the negative image portrayed by reduced working conditions in the overseas factories. Nike’s geographic market consists of major markets throughout the globe. Then you can access your favorite statistics via the star in the header. Nike employees engineered a creative way to keep it out of landfills and convert it into more outsoles, called REGRIND, and are available to public. With a revenue target of $27 billion by the year 2015, Nike outlined each and every category of their product line – from Nike SB to Women’s Training – and hoped to reach that goal through a consumer-focused strategy. Table of Contents NIKE, INC. North American sales for Nike are still 2.5x greater than the next closest market, which is Western Europe. The former message of Nike has been used since 1989, when it was first introduced and the latter was developed by Bill Bowerman when Nike first started. Prezi Video + Unsplash: Access over two million images to tell your story through video Since Nike outsources its manufacturing to other countries, it doesn’t have any capital tied up in machinery, equipment or factories. The company offers footwear for football, basketball, soccer, baseball, tennis, golf, walking, sport-inspired casual shoes, kids’ shoes and other athletic and recreational purposes. Preferences of young consumers are changing. Started as a small re-seller of an obscure Japanese running shoe (which later became Asics) line in a small shop in Santa Monica, NIKE has grown exponentially over the years into one of the world's most recognizable (and profitable) brands. It uses separate campaign or strategy to cap the market potential of the different segments.Targeting is the important aspect of the marketing strategy, especially when a company is in different businesses. Study for free with our range of university lectures! 1st Jan 1970 Geographic Geographic is simple, yet powerful segmentation basis. We're here to answer any questions you have about our services. This restricts the amount of entrants in the market. New, Figures and insights about the advertising and media world, Industry Outlook Reflective Sportswear Market: Geographic Landscape By geography, North America is going to have a lucrative growth during the forecast period. (Kotler et al 2010, p277) After evaluating different segments, Adidas adopts market coverage strategy which is differentiated marketing. Please create an employee account to be able to mark statistics as favorites. No plagiarism, guaranteed! In, Nike. Disclaimer: This work has been submitted by a university student. NIKE, Inc. is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. There is a theory known as the ’80/20 principle’ (Czinkota et al., 2000, pg 200). Nike’s target market for its shoes, clothes and other accessories are males and females between the age of 13 and 35 years. Other operations are in Argentina, Brazil, India, Italy, and Mexico. Nike delivers innovative products, experiences and services to inspire athletes. Since consumers in the footwear industry are price conscious and the market is highly competitive, companies are striving to provide the best possible deals to the consumers. This is not an example of the work produced by our Essay Writing Service. This report aims to present the marketing plan of the leader of sportswear innovation, Nike. Nike is unique in the fact that they have a very general targeted demographic segment. Until 2009 Nike’s geographical markets consisted of United States, Asia-Pacific, Americas and an area comprising of Europe, Middle East and Africa. The history of NIKE is a true American success story. Nike promotes products that ooze with style, attitude and self-confidence. BEAVERTON, Ore. (March 20, 2009) – NIKE, Inc. (NYSE:NKE) announced its plan today to reorganize its Nike Brand into a new model consisting of six geographies with reduced management layers and an increased focus on core category business areas, driving … This feature is limited to our corporate solutions. Nike derived ~44% of its revenue from North America in 1H15. By 1984 Nike had supplanted Adidas as the number one selling running shoe company in America. Market segmentation of the Nike company Demographic Segmentation Demography segmentation they include age, race, family income, and education level, among others.Besides, it was observed that the majority of the respondents consist of professional from various fields like engineers, software professionals, … This timeline shows Nike's revenue worldwide from 2009 to 2020, by region. Nike infested their market with bright colors, new styles, and technology information pertaining to their products. Low Manufacturing Cost – Most of Nike’s footwear is manufactured in foreign countries. You only have access to basic statistics. ANNUAL REPORT ON FORM 10-K Table of Contents Page PART I 1 ITEM 1. 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