Market Segmentation of the Nike Company

grocery Seg handstation of the Nike CompanyDemographicSegmentationDemography sectionalisation they hold age, race, family income, and education level, among divergents. Besides, it was observed that the majority of the respondents consist of professional from various handle like engineers, softw atomic get along 18 professionals, working executive etc. who effective frame 38% of our database. While 36% were students from various fields. Others constitute designers and athletes etc. the march on study is carried on the buying behavior of the above mentioned categories of consumer, which shows that our consumer is well meliorate and is very well informed about the product. (http//www.scribd.com/doc/34735893/A-Summer-Training-Report-on-Nike)Further more than, in the peck conducted a direct relation between the income level and the spending content was observed. Also it was found that students were spending in the range of $1000 -$ 3000 as comp bed to the working class profes sionals who were ready to spend between $ 3000 $ 6000, since they have higher(prenominal) spending power because of higher income levels.(http//www.scribd.com/doc/34735893/A-Summer-Training-Report-on-Nike)Geodemographic SegmentationThe second sectionalisation atomic number 18 focuses on geodemographics and proximity. The premise behind geodemographics is that people who are comparable in income, culture, and perspectives naturally gravitate toward one another. Once these people cue to their neighborhoods, they become even more alike and share similar consumer behaviors. When a store asks for your zip code when you make a purchase, its using geodemographics as a segmentation technique.Furthermore, the characteristic if the consumer is depends on their income. For example, the Nike Shoes has been done an depth psychology the respondent of buying for the Nike home is RMB597 for average of the total.(App.1)Personality TraitsPersonality traits are people often do not identify these traits because they are moderate or not consciously recognize. For example, some of the consumer can accept untried thing and some perceive less risk in hard new thing.LifestyleA third base of segmentation is psychographics. Psychographics are lifestyle and personality descriptors. There is a relationship between lifestyle and consumer behavior, so people with similar lifestyles buy similar products. Lifestyle descriptors are often categorized as activities, interests, and opinions.The brand is fiercely defended by its owners whom real conceive that Nike is not a dash brand but a shoes for sport lifestyle consumer that mean mostly people who mobile in sport such as football player or basketball player would purchase it. Meanwhile there was also consumers that die hard Nike just want to build confident or make other feel they wearing a branded shoes but not ordinary shoes but not for sport purpose. For youth, they think Nike shoes is a personal manner lifestyle and they we ar it just to follow fashion trend. For example, since Michael Jordan wear Nike shoes, consumer will follow him step as a fashion trend.(App.3)Benefits segmentationBenefits sought represent consumer needs and important for positioning.(App.4)Critiral for Effective Targeting distinctiveNike have been divide the market into separate segments on the basis of series that relevant to the characteristic such as demographics have age, gender, family life regular recurrence and others.(App.2)Besides, they stigma in different identifiable such as men sports caterpillar tread shoes and women sport ladder shoes. Nike target on different type of segment that to fulfill customers need. (App.6)SufficiencyNike is a worthwhile target, they target on the needs and they undertake probability survey to whose finding toil to the total market. They will have clearance stock or forwarding by on or sell on shops. (App.7)StabilityNike marketers pick out to target consumer segment that are relative ly stable in demographic factors are likely growth larger time.(App.2)Besides, consumer can buy through online or any shopping complex. That was easy for consumer to purchase anywhere. (App.8)AccessibilityNike has been handiness in any market segmentation through advertisement.(App.9)Profitability segmentationOverall the past two years (App.5)SalesGroup gross gross revenue decreased by 8% and amounted to $572.5 million in 2009, compared to $622.8 million in 2008. The decrease in sales matched the Companys expectations and was due to the recession of all sales markets as realized as part of the financial and economic crisis which started at the end of 2008. The recession mentioned lead to conservative inventory policy adopt by most Companys customers which also contributed to the decrease in sales.Gross all overtureThe gross profit in 2009 amounted to $103.7 million (18.1% from sales), compared to $105.7 million in 2008 (17.0% of sales). The improvement in gross margin in 2009 compared to 2008 was due to efficiency locomote taken by the Company and the implementation of the restructuring plan which was declared by the Company at the end of 2008 and was achieved despite the decrease in sales.A global slowdown inretailsales and consumption, has hit Nike hard. In fiscal 2009 (ending May 31, 2009), Nikes revenue grew only 3% to $19.2 billion, with net income dropping 21% to $1.5 billion, and the company expects lower revenues in the first half of 2010. contempt the overall struggles in 2009, Nike posted two unbowed quarters from Q3 2010 to Q1 2011. In Q2 2011, the company posted a profit of $457 million, up 22% from the like quarter of the previous year. Revenues hit $4.8 billion, up 10 percent over the same period last year. Analysts point to the trend of four straight strong quarters as a sign that the company and perhaps the financial world is finally beginning to rebound from the recession. However, company analysts believe that Nike will struggle a gainst the challenges of a larger economy for the rest of the fiscal year, which it plans to combat through a selective rise of prices.Consumer EnvironmentAs consumer can see, Nike have been promise to improve their shoes in newspaper in long time. When 2009, Nike haven been improve in their shoes thats wawl Newton Running. Its developed a whole range of shoes that encourages running on your midfoot/forefoot, a technique and position that helps keep you running more efficiently, injury-free and faster. According to Nike, cushioning and support are needed in dictate to avoid injuries but, at the same time, all the cushioning and support that late running shoes provide are making our foots muscles lazy. Therefore the ingenuous is created as a check outingshoe, with which to run a limited number of miles amid your normal running schedule in order to specially train the muscles that are not activated while running with normal running shoes. Furthermore