Nike acquired Converse in 2003. Meanwhile, Nike faces some challenges in its target markets. Prezi Video + Unsplash: Access over two million images to tell your story through video Nike's Cost of Goods Sold for the three months ended in Aug. 2020 was $5,853 Mil. The Greater China segment should benefit from the Chinese government’s efforts to increase consumer spending. Firstly, Nike’s sales in the region have increased sharply. However, given the high-price of the company’s products, it does use the income and education as targeting variables. In 2020, Nike's … Analysis for Starbucks 8 3.2 PEST Analysis for Starbucks 10 3.21 Political 10 3.22 Economic 10 3.23 Social 11 3.24 Technological 11 4.0 E_MARKETING PLAN 14 4.1 E-Marketing Strategic Planning 14 4.11 Segmentation 14 4.12 Targeting 15 4.13 Differentiation 15 4.14 Positioning 16 4.2 Objectives 18 4.3 E-marketing Strategy 18 4.4 E … Europe, Middle East, and Africa (or EMEA), North America is Nike’s largest segment, accounting for 40.3% of total revenues in Q1 of fiscal 2020, down from 41.7% in Q1 of fiscal 2019. For geographic segmentation, Nike have their stores worldwide, and they do understand that different country has different culture and lifestyle habits. Demography segmentation they include age, race, family income, and education level, among others. The company went high-tech with its push into digital sports and e-commerce. In 2017, Nike changed its reportable operating segments. In comparison, its consolidated revenues increased at a CAGR of 4.4% over this period. Product expansion in areas like more concentration in sunglasses, sportswear etc. As with Nike’s other target markets, its products are seen as a premium brand in this region also. Nike has launched different products in different country to suit the regional customer’s needs. It is ranked among the top companies for climate-friendly companies, 10. This Marketing tutorial provides explanation of geographic segmentation with examples In fiscal 2019, the Women’s Training segment grew faster than the Men’s Training segment. The Nike company faced allegations of labor and wage laws with employees, poor working conditions etc, 2. Read full article. Between fiscal 2017 and fiscal 2019, the region’s revenues increased at a CAGR of 7.2%. Brazil, the largest economy in Latin America, is another of Nike’s key target markets. The segment is the smallest geographical region for Nike and accounted for 12.6% of its Q1 of fiscal 2020 revenues. However, in fiscal 2018, the Men’s Training segment grew at a faster rate. Nike does not target consumers based on race, ethnicity, religion or social class. Nike's Total Inventories for the quarter that ended in Aug. 2020 was $7,036 Mil. Nike (NKE) is the world’s leading sports footwear and apparel company. Phalguni Soni. As we noted previously, China is one of Nike’s key target markets due to its strong growth and high margins. From its status as an export- and investment-led economy, China has been trying to steer its economy toward a consumption-driven economy. You May Look At The Company Websites. Apparel, Sports Equipment and Accessories, Nike shoes that are made for professional athletes across sports worldwide, Men, women and children from urban upper-middle and upper class, Nike offers high quality sports products at a high price which gives satisfaction and comfort. Nike acknowledged the evolution of the North American retail market as consumers shift toward online sales. As a key target market for Nike, Greater China’s sales have been growing at a brisk pace. It has been reviewed & published by the MBA Skool Team. Converse’s target market focuses on consumers of casual sneakers, accessories, and apparel. NIKE’s athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes. Nike has focused its marketing efforts on the digital space in recent years. Meanwhile, Latin America has reported subdued growth over the last five years. Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Women are an important part of Nike’s target market. The following commercial is a very popular one and has millions of views. For example, between fiscal 2017 and fiscal 2020, Nike’s Greater China revenues increased at a CAGR of 13.6%. The APLA segment’s EBIT margin was 25.3% in Q1 of fiscal 2020. According to Nike, conversion from licensees to a direct distribution model had a minimal impact on Converse’s fiscal 2019 revenues. The segment’s revenue growth has stalled over the last few years. As of 2020, Nike is one of the leading brands in the lifestyle and retail sector. ET How? who effective form 38% of our database. Nike’s Jordan collection, named after basketball superstar Michael Jordan, is also a premium-label brand targeted at athletes. A growing middle class has made China an attractive target market for foreign brands. ... By far, however, 2020 has been a milestone year for the ETF. Here are the weaknesses in the Nike SWOT Analysis: 1. Nike’s fiscal year ends on May 3. The region’s percentage contribution to Nike’s top line has increased for two reasons. NIKE Brandy Gentry Consumer Segment BRINGING INSPIRATION AND INNOVATION TO EVERY ATHLETE* IN THE WORLD. Nike's revenue worldwide 2017-2020, by region Published by M. Shahbandeh, Nov 23, 2020 This timeline shows Nike's revenue worldwide from 2009 to 2020, by region. which gives high profit, 2. However, the company discontinued support for wearable devices last year, including Nike+ SportWatch GPS and Nike+ FuelBand. It has major markets in USA, A sia -pacific Europe, Africa but it has The company introduced the Nike+ running sensor in collaboration with Apple (AAPL). The US economy is also largely driven by its consumer sector. In order to clearly understand what kind of people are the real target of Nike, we should look upon their commercial examples and here is their first one. Dec 02, 2020 (AmericaNewsHour) -- The market is growing … Geographic Variables: Nike uses geographic segmentation to market nations, regions, cities, and population density differently. Strong topline growth and high margins make Greater China Nike’s key target market. Geographic segmentation: On the basis of this, Nike has segmentation to serve its target customers all over the world. This would benefit consumer discretionary companies like Nike, especially considering the boom in sports and sports marketing in China. Nike primarily targets consumers who are between 18-40 years of age. It accounted for 15.8% of Nike’s total revenues in Q1 of fiscal 2020. It has launched many other products in collaboration with companies e.g. As of 2020, Nike is one of the leading brands in the lifestyle and retail sector. Plus, Nike is facing strong competition from companies like Under Armour (UA) and Lululemon Athletica (LULU). While the south is passionate abo… In Greater China, economic growth has slowed down. In comparison, Nike’s major competitor in the US market, Under Armour, NKE, UA, and VFC are part of the Vanguard Total Stock Market ETF, Nike’s North American segment grew at a compound average growth rate (or CAGR) of 1.5% from fiscal 2017 to fiscal 2019. This article has been researched & authored by the Content & Research Team. Quizzes test your expertise in business and Skill tests evaluate your management traits. These high-performance lines are targeted at athletes. The company’s operations are spread around the world. The brand’s product line focuses on the premium target market. Nike’s Air Jordan brand of basketball sneakers generated over $3.14 billion in the fiscal year ending May 2019, up 10% from the previous year. The MarketWatch News Department was not involved in the creation of this content. In total, the global market share for Nike is expected to be over 27% by 2020. For example – In a diverse and multi lingual country like India, global companies like Vodafone, Nike, Adidas have to come up with different marketing strategyfor different regions within the same country. The table below lists the SWOT (Strengths, Weaknesses, Opportunities, Threats), top Nike competitors and includes Nike target market, segmentation, positioning & Unique Selling Proposition (USP). However, in 2017, the company realigned its reporting structure. In Nike SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. In the video, we see that an overweight guy is running towards the camera. Its sales are seasonal and dependent on geography. Nike segments market based on world and country region, ci ty and popularity density in different way. It has been constantly been involved sponsorship of sports events and teams across various sports, 12. Notably, Converse has been losing ground in North America to brands like Vans. However, it is one of the company’s more profitable segments, with an EBIT (earnings before interest and taxes) margin of 25.6% in the, providing the customer with premium, must-have products as well as a premium experience, transforming the marketplace and expanding its direct-to-consumer footprint. Dec. 2, 2020. We’ll also look at how these key target markets have performed over the last couple of years. Geographic Geographic is simple, yet powerful segmentation basis. Nike Inc. specializes in footwear, apparel, equipment and accessory products for men, women and children. While 36% were students from various fields. Nike is the leading sports footwear and apparel company in the world. ; Nike's designers are not afraid of being bold – as evidenced by their “green grass” golf shoes that hit the market in January 2019: It has been recognized many times by fortune magazines on “100 best companies to work for”, 3. Technavio has been monitoring the sports footwear market and the growth is expected to decline by USD 10.23 billion during 2020-2024. Greater China: In terms of growth, Greater China is Nike’s key target market. We place considerable emphasis on high quality construction and innovative design for men, women and children. Five years ago, Greater China’s contribution to Nike’s revenues was in the single digits. The companies are not associated with MBA Skool in any way. Following are the Opportunities in Nike SWOT Analysis: 1. Nike's revenue in Asia Pacific & Latin America from 2016 to 2020, by segment Nike's ad spend in the U.S. 1.47bn USD Greater China is Nike’s key target market, FedEx Executive Richard Smith Owes Much of His Wealth to His Father, How GoDaddy Became the Go-To Domain Registrar on the Internet. However, it also sees some stabilization in that domain now. Net income rose 11.0% … In this article, we’ll look at Nike’s target markets. Research Needs Surveys Focus Groups Polls Interviews Questionnaires. Effective business relationship-building is done by the company globally which has help its brand equity, 6. Geographic segmentation is a process of grouping customers based on where they live. Historically, its first and fourth quarters have been relatively stronger in terms of sales. The BrandGuide section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2800 brands from over 20 industry sectors. EMEA: Previously, Nike reported Western Europe and Central and Eastern Europe as separate segments. Hurley’s target market is action sports such as surfing and skateboarding. Nike is already the category leader in most markets it operates in. the further study is carried on the buying behavior of the above mentioned categories of consumer, which shows t… To add to that, some of the countries in the region, especially Argentina, have faced currency devaluations. It reported an EBIT margin of 21.9% in the quarter. March 17, 2015, 6:05 PM. In the United States, economic growth rates have tapered down. The brand names and other brand information used in the BrandGuide section are properties of their respective companies. Nike associates itself with leading international sports teams, players and events, 11. Nike has four geographical reporting segments: Apart from these geographical segments, Nike also reports two other operating segments—Global Brands Division and Converse. Here’s how they’re going to be able to do it. The content on MBA Skool has been created for educational & academic purpose only. Why your go-to-market strategy should be industry focused; Dec. 1, 2020. Greater China revenues grew 19.4% year-over-year to $1.4 billion in 1H15. Adaption of new techniques and innovation by other brands. Along with these Nike also offers performance equipments which include bags, socks, sport balls… Nike consolidates Asia (ex-China) Pacific and Latin America as one reporting segment. Nike’s high-performance athletic gear is mostly targeted at professional athletes. This segment reported an EBIT margin of 24.9% in Q1 of fiscal 2020. Nike's Inventory Turnover for the quarter that ended in Aug. 2020 was 0.83. Constant competition means limited market share growth for the company. Consumer spending should be a crucial growth driver in China going forward. Nike has been one of the biggest brand names always. Nike also developed various product lines endorsed by athletes such as LeBron James. Notably, China is a key target market for several luxury brands. The Global Menswear Market will grow by USD 153.87 bn during 2020-2024. Nike purchased Converse in 2003. It includes casual apparel and footwear products, which are sporty but not necessarily high performance. As it is an international brand currency fluctuations of countries affects the business of Nike, 3. SWOT analysis of Nike analyses the brand/company with its strengths, weaknesses, opportunities & threats. Furthermore, if the US-China trade war worsens, US brands like Nike could face backlash in China. Nike is listed among 50 most innovative corporate companies worldover, 4. Under Armour was focused on the male athlete demographic and… Under Armour was founded in 1996 by Kevin Plank. The Converse brand comprised 5.2% of Nike’s revenues in Q1 of fiscal 2020. Below are the Strengths in the SWOT Analysis of Nike: 1. This article covers the various aspects of Nike. Blog. The company offers footwear for football, basketball, soccer, baseball, tennis, golf, walking, sport-inspired casual shoes, kids’ shoes and other athletic and recreational purposes. The product was a hit among college and NFL athletes and the company began to grow. Nike has been one of the biggest brand names always. The threats in the SWOT Analysis of Nike are as mentioned: 1. He did not surrender, he does not find any excuses and he wants to change his life and find his greatness. We’ll look at these opportunities and their potential later in this article. Starbucks E-Marketing 7567 Words | 31 Pages. Nike uses psychographic segmentation variables to make its offerings more attractive to the target customers. Others constitute designers and athletes etc. The segment’s revenues have increased at a CAGR of 3.5% between fiscal 2017 and fiscal 2019. Nike categorizes its revenues by geography, with the exception of its separate unit, Converse. It also launched the Nike+ FuelBand. Young athletes also form part of Nike’s target market. Being present in footwear, sports equipment, clothing and many others Nike uses differentiated targeting strategy.Produc… Nike segments market based on world and country region, city and popularity density in different way. Nike consolidates Asia (ex-China) Pacific and Latin America as one reporting segment. Furthermore, Greater China is a high-margin market for Nike. Nike’s target market is largely consumers ages 15–45. SWOT Analysis is a proven management framework which enables a brand like Nike to benchmark its business & performance as compared to the competitors and industry. Now, it reports Europe, Middle East, and Africa as a consolidated business segment. The report offers an up … China is another key market for Nike. The company is currently strategizing on how to widen the gap with its nearest competitors or increase the degree of separation. 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. This is higher than what the company achieves in its developed markets. Nike’s operations consist of the design, development, marketing, and sales of athletic footwear, apparel, and equipment. Press Release Smartphones Market 2020 with Geographic Segmentation, Statistical Forecast and Competitive Landscape Report to 2024 Published: Sept. 15, 2020 at 1:47 a.m. The United Kingdom, France, Germany, Austria, and Switzerland are Nike’s key target markets in Europe. Nike differentiates by making innovative products which has global recognition, 5. North America is Nike’s largest market. Enhance brand visibility by opening sports academies across the world for nurturing talent, 4. The brand’s percentage contribution to Nike’s top line has come down over the last five years. With an eye toward ensuring future growth, young athletes are also a big part of Nike’s sales strategies, especially in categories such as soccer, basketball, and running. We’ll also look at the risks and opportunities that Nike faces in its target markets. Fake imitations and replicas often cause a problem for a brand like Nike, 4. ... Market Segmentation Geographic Demographic Psychographic ... Consumer Segment Males Females Ages 20-45 Active. Who Owns Electronic Arts and How Has the Company Grown? MBA Skool is a Knowledge Resource for Management Students & Professionals. The brand’s margins have come down over the last five years. Last year, Converse incurred higher administrative expenses due to higher marketing expenses and investment in digital business. The second aspect that we need to consider is that revenue growth in North America, which is Nike’s biggest geographical market, has sagged. launched music player, Nike watches etc, 7. The goal is to equip teens under the age of 20 with athletic apparel, especially in … Companies segment their target market geographically when needed to focus on a specific area. Nike delivers innovative products, experiences and services to inspire athletes. Footwear market is so competitive, major competition from other brands, 2. Exclusive shops all over the world apart from availability through multi-brand retail stores, 9. Nike also recorded comps store growth of 17% and higher e-commerce sales. As of 2019, Nike has over 5 billion dollars revenue through shoes, apparels, merchandise etc. Along with footwear the company also markets sports apparel and accessories, along with sports inspired apparel and athletic bags. Analyzing the Prospects of Nike’s Geographic Segments. Besides, it was observed that the majority of the respondents consist of professional from various fields like engineers, software professionals, working executive etc. Nike posted net income of $1.5 billion on $10.6 billion of revenue during Q1 of its 2021 fiscal year , ended August 31, 2020. Question: Market Segmentation Market Targeting Market Positioning Products Perform A Narrative Of How The Strategic Marketing Elements Above Are Implemented In The Marketing Of Car Manufacturer, *****BMW*****, Using The Above List. In Q1 of fiscal 2020, the segment’s EBIT margin was almost 40%. 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. Nike can tap the online opportunities to reach out to as many customers as possible. Nike can open their stores in tier 2 cities in emerging economies as well, 3. Please Write Under Each Of The Headings Provided Below In Order To Obtain Maximum Points. August 16, 2020 August 14, 2020 Johny Clinton Leave a Comment on Swimwear Market Assessing Major Growth Opportunities, Segmentation and Growth|Gap Inc, Nike Inc, Adidas AG Swimwear Market report provide the COVID19 Outbreak Impact Analysis of key factors influencing the growth of the market size (Production, Value and Consumption). In this article, we’ll look at Nike’s key target markets. Geographic is simple, yet powerful segmentation basis. Nike is the world’s leading brand for sports shoes and apparel having a a global presence, 2. Who is the segment of people th… Nike’s innovations, products, and services seek to develop athletic potential, according to the company. With respect to the Chinese economy, the contribution of the consumer sector is much lower compared to India and South Korea. Nike is a leading top of the mind brand with excellent innovative advertising and branding, 8. References NIKE • Oeroi, M. (2020, July 25). As a result, Greater China’s percentage contribution to Nike’s top line has increased significantly. Plank was looking to provide athletes with a garment that would wick away sweat and “wouldn't get gross” (Baer, 2015). The table below lists the SWOT (Strengths, Weaknesses, Opportunities, Threats), top Nike competitors and includes Nike target market, segmentation, positioning & Unique Selling Proposition (USP). Browse marketing analysis of more brands and companies similar to Nike. The EMEA segment accounted for 26.0% of Nike’s revenues in the first quarter of fiscal 2020. Nike has several star celebrity brand ambassadors from various sports like football, golf, cricket, NBA etc. Similar analysis has also been done for the competitors of the company belonging to the same category, sector or industry. 5.2 % of Nike, 4 under Each of the company achieves in its developed markets accessory products men... 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