Answer To: course, you will select a Fortune 500 company from a list provided and then select a consumer market...
Tanmoy answered on Jun 29 2022
PowerPoint Presentation
NIKE CONSUMER SEGMENT
Presented By: Mekel Zapico
Market Research - Nike
Nike will launch its Nike Air Force 1’07 Next Nature sports shoes targeted towards the consumers
Selected Consumer Segment
Nike serves the 11 to 55 years old consumer market
Targets middle-aged consumers with disposable income
Younger audience
Why this segment is worth pursuing
Future Growth
Edifice long term brand loyalists
Will serve both male and female consumers
The company which I have chosen is Nike and it will be able to serve the consumer segment within the age group of 11 to 15 years. Further, Nike will be able to tap the middle aged consumers who have a disposable or high income. These are especially the consumers working in major IT companies, Banking and financial institutions, businessman and sports athletes. It will also be the younger customers who will be engaged in building loyalty.
The reason due to which this segment is worth pursuing is that it will help in the future growth of Nike through innovation. It will also help to build long-term brand loyalty with the customers and enhance the brand. Finally, it will be able to serve both the male and female customers by addressing the behavioral segmentation and edifice brand loyalty and affinity with the consumers. This can be done by personalized email and social media campaigns (Start.in, 2021).
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Market Research - Nike
Identify and qualify the research sources for obtaining information on consumer behavior
Behavioural – It’s the customer based transaction based on the interactions with Nike
Demographic Lifestyle – Its based on the household composition and interests
Motivational – It is what drives the customer and their relationship with Nike
Attitudinal – Based on consumer’s opinion and their reactions
Aspirational – The way the consumers view their association with the brand
The research sources which can be used for identifying and qualification of information on the consumer behavior are as follows:
Behavioural – It’s the customer based transaction based on the interactions with Nike. This is generally done by the store manager with the customers during the visit in the store according to their taste and preferences.
Demographic Lifestyle – Its based on the household composition and interests. It helps to identify the manner in which the people lives, the way they purchases, their location along with their age, income and occupation (Ryan, 2022).
Motivational – It is what drives the customer and their relationship with Nike. Identification of the product or specific element which drives the customers to purchase the product.
Attitudinal – Based on consumer’s opinion and their reactions. It is mainly based on the opinions and feedbacks received from the customers with respect to the product. The customers also shares their opinion on the stores, the customer marketing programs and the reason behind them.
Aspirational – The way the consumers view their association with the brand. It’s a way to recognize the way the customers are attracted towards Nike. This can be through loyalty programs, discounts and offers etc.
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Market Research - Nike
Analyze the characteristics of Nike’s consumer segment
The characteristics of Nike’s consumer segmentation can be segregated into four categories which are as follows:
Demographic: Through demographic segmentation it target the audiences generally between the age group of 11 and 15 to 55 years. The Nike apparels are aimed towards men, women and the kids. The sports enthusiasts are also a part of this target along with the high income groups having high amount of disposable income.
Geographic: According to the geographic segmentation, Nike targets the urban areas and the international countries both developed and developing nations for selling their products.
Psychographic: The psychographic of Nike is based on the customer lifestyle, the personality i.e., sports athletes, college students, IT professionals etc. Then it will be the activities which the individuals do. Nike also takes into consideration the opinions of the customers in the form of feedback and finally incorporating their interests and preferences which attracts them to purchase Nike products.
Behavioral: Further, it’s the frequency of purchase of Nike products which helps in evaluating the number of times the customer visits the store to purchase a Nike product. Finally, it’s the customer loyalty which helps in identifying how much the customers are attracted to Nike brand (E Draw Mind, 2022).
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Segmentation
Various Segmentation Strategies
Demographic Variables: Targets the customers as per age, income, gender, occupation, life-cycle stage and generation
Geographic Variables: Segmentation of Nike as per country, states, cities and according to the population density
Behavioristic Variables: Targeting based on the Nike attributes is the feature to realize how the consumers feels of the product
Psychographic Variables: It helps to target individuals with specific lifestyles and sports personalities
Nike uses various segmentation strategies for targeting the customers in the shoes and apparel segment:
Demographic Variables: Targets the customers as per age, income, gender, occupation, life-cycle stage and generation. These strategies are about the young adults who strives to be like sports idols they prefers the most. In the FIFA World Cup, Nike generally advertises its products with soccer athletes who are of teenage.
Geographic Variables: Segmentation of Nike as per country, states, cities and according to the population density. In US, Nike usually advertises its products with football and baseball games. They uses various advertisements along with marketing programs with respect to the football and baseball products by selecting the athletes who are associated with the games. Nike uses soccer stars for marketing the Nike products. In India, they uses the cricketers and rugby players for advertising in Australia and New Zealand.
Behavioristic Variables: Targeting based on the Nike attributes is the feature to realize how the consumers feels of the product. The advertise by communicating a message that if one is an athlete, then how does this make the person feel after wearing the product. Further, Nike provides its customer innovative products, various choices which are of unique qualities.
Psychographic Variables: It helps to target individuals with specific lifestyles and sports personalities. Nike must target the individuals who like sports. The target customers may be professional players, simply watching sports or discussing on the sports topic which shapes the personalities and lifestyle of the consumers. They organize various events such as Run with me, Sport improvement clinics, various contests on the social media platforms and endorsement with the athletics and non-athletics. This way they are able to create a community and a feeling of belongingness with the Nike family (My Mission, 2021).
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Segmentation
Choose the Segmentation Strategy for creating market segment
Segmentation Strategy – Behavioural segmentation
Quite new in the digital age
Based on information collected by company
The usage pattern, price sensitivity, loyalty toward the brand and the benefits
The best segmentation strategy which I will choose for creating a market segment is the Behavioral segmentation. This type of segmentation is very new in the digital world and helps in collecting the customer information based on the data reports, the survey forms and the trends of the market in the shoe industry.
Further, Nike will use various patterns, the price sensitivity with respect to the product. They will also emphasize on the brand loyalty and the various benefits which can be delivered to the customers for launching the brand and enhancing the sales. The customers on the other hand wants the best brand which can be available at the best price. Also, the behavioral segmentation will predict the items and services...