highly segmented by age and circulates 18-30 and that age group is often very in touch with social issue and have the ability and willingness to purchase $100+ shoes. Besides social values, Nike heavily targets those who live an active lifestyle. The average runner Nike targets travel about 6-15 miles a week and will typically purchase new shoes every 6-9 months. However, Nike does not limit itself to just athletic individuals as the current market has expanded beyond just performance-based products. The apparel industry is always shifting between trends swaying the market and emergence of “Athleisure” wear, a combination of athletic and leisurewear has made it apparent. To continue its success Nike has to innovate too and stay ahead and outperform the market in serving this new market. Competitors like Lululemon have capitalized on this versatile market and are challenging Nike for their position in this segment of the apparel market. The value added to a consumer must be significant to inspire a purchase. When consumers seek 5
Nike products, they want a combination of performance, comfort, and style regardless of the activity they are involved in customers want the freedom to be versatile. Product Review Nike’s “Joyride” model has many new features that differentiate it from previous releases and distinguish it as a premier running shoe. The new “Joyride” model encompasses a new unique “Thermal Plastic Elastomer” technology which is comprised of thousands of foam beads in the sole for increased comfort and performance. The Thermal Plastic Elastomer is packed around the shoe to respond to each customer's unique step increasing shock absorption making them more responsive and comfortable than other shoes on the market. Nike’s unique orthopedic in-sole which molds to fit the foot of the user. Features Nike’s signature breathable “Flyknit” technology along the upper. 6
Competitive Review The apparel market is heavily dominated by the brands position as many consumers have strong brand loyalty as their clothes are often a sign of status. While Nike does have the number one position it is not guaranteed as there are several competing firms hovering around Nike seeking to take its position. Nike’s main competitors are currently Adidas and Under Armor, but more recently upcoming Chinese brands like Li-Ning and Anta have many significant strides to close the gap between them and Nike. With the unpredictable nature of the market even though Nike maintains nearly 50% of the market they cannot relax and become myopic. Adidas Between the years of 2010 to 2012 is a German-based company Adidas had less than impressive sales in the US compared to the giant Nike and began losing market share. With their headquarters in Europe, they have a different position surrounding themselves with a more soccer oriented brand vision that did not port over to the American market as well as they had 7
hoped. With their European and American marketing strategies differing Adidas positioned itself as a multinational corporation that put stress on their organization limiting their ability to grow.
You've reached the end of your free preview.
Want to read all 21 pages?
- Winter '11
- Marketing, Athletic shoe, Nike, Inc., Nike Inc