The use of demographic segmentation is the most evident strategy in both Nike and Adidas. These companies have applied age as one of the demographics in their marketing (Quinn, & Dibb, 2010). Both companies market their products to the young generation, with a significant proportion of their sales taking place.
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How does Nike segment their market?
Demographic segmentation is a factor used by Nike to target individuals according to their age, life-cycle stage, gender, occupation, and generation. Although with apparel and sports the market can be broad, for the most part Nike primarily targets consumers who are between the ages of 15-40.
How does Adidas segment their market?
The main targeted market for Adidas is the urban youths and adults, usually between 13-40, with competitions to lifestyle. In addition to that, Adidas targets both genders and almost all the social class, less the lower class.
What are key segments in Nike market?
Nike customer segments comprise four categories which are demographic, geographic, psychographic, and behavioral market segmentation. For demography segmentation, Nike has included different age groups, gender and based on their targeted customer’s financial status.
How is Adidas marketing strategy different from Nike?
Nike strategies focus on design innovation and marketing, whereas Adidas strategies focus on reducing the production cost and time, expand its market, enhance attractiveness in terms of sports shoes and equipment.
What is Nike marketing strategy?
Nike relies heavily on advertisements to promote their products, especially those featuring high-profile athletes and celebrities. Additionally, Nike makes use of sales promotion strategies like discount codes to entice potential customers to buy their products.
How does Nike use benefit segmentation?
Nike offers a wide range of products to a variety of target audiences. It needs to use benefit segmentation to develop different marketing campaigns that appeal to each group of customers. The most notable example we can pull from Nike is its ads featuring tennis superstar, Serena Williams.
How does Adidas target their audience?
Adidas uses differentiated targeting strategy to target young adults, adults as well as children who have passion for fitness & sports. Although it targets customers in the age group of 13-40 years but majority of its customers are of 15-30 years of age who hail from upper middle class or the luxury class of customers.
What marketing strategy does Adidas use?
The brand works to create excitement and enthusiasm around the world of sports on a personal and relatable level. They use multiple outlets, including social and retail, to converse with their customers. Likewise, Adidas strives to be everywhere its target audience is to deliver a unified and unique experience for all.
What is Adidas behavioral segmentation?
Also aiming at people who want value for money. Behavioural segmentation. Divides buyers into groups based on knowledge, attitudes, uses or response to a project. Adidas mainly target athletes, gym regulars, sports enthusiasts, brand freak’s and image seekers.
What are key segments within this market?
There are four key types of market segmentation that you should be aware of, which include demographic, geographic, psychographic, and behavioral segmentations. It’s important to understand what these four segmentations are if you want your company to garner lasting success.
How do you segment a market?
The following five steps can be used to segment a market:
- Define the market you are interested in.
- Create market segment using a segmentation technique.
- Create segment profiles.
- Evaluate each segment profile.
- Select your target market.
What are Nike’s markets and how is Nike positioned in these markets?
Nike is positioned as a premium-brand, selling well-designed and very expensive products. As same time Nike tries to lure customers with a marketing strategy centering on a brand image which is attained by distinctive logo and the advertising logo: “Just do it”.
Why is Nike more successful than Adidas?
Nike has a higher global revenue than its main competitors, Adidas and Puma, put together. North America is a key market for Nike, as close to half of its global revenue is generated there each year.
Why is Adidas Nike’s biggest competitor?
Adidas offers a large range of products including sports shoes, apparel and equipment. Adidas is the largest sportswear manufacturer in Europe and the second largest in the world after Nike. It is the biggest competitor of Nike. Like Nike, Adidas has also outsourced its entire production to external suppliers.
Nike controls more than 25% of the global athletic footwear market. Although the shoe market is not limited in size and new players can enter every month, Nike’s scale still creates a huge competitive moat. adidas is huge too as it outpaces small- and middle-sized companies.
What targeting strategy does Nike use?
Nike’s target market includes a demographic of those aged 11-45 but put a greater emphasis on teens to cultivate long-term customers. Their psychographic segment includes active, fashionable individuals that consider physical activity as part of their lifestyle.
Why is Nike marketing so successful?
Every brand needs what marketer’s call “noticing power.” Nike is successful because they have their iconic catchphrase and celebrity endorsements. This power has the ability to grab people’s attention, make the product stand out, and rise above the competition.
How does Nike use direct marketing?
Nike also uses direct marketing to promote new products to the target market by utilizing salespeople to approach sports organizations in colleges to establish stronger relations and motivate them to buy its products.
What is Nike’s psychographic segmentation?
Psychographic Nike utilizes psychographic segmentation to target customers based on lifestyle, personality, activities and interests. Specifically, Nike aims to active individuals who take pleasure in sports, gym regularly, are athletes and passionate with sports, which tend to be part of their life.
How do companies use market segmentation?
According to Investopedia, market segmentation involves “aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action.” In other words, it involves looking at your entire pool of potential customers and grouping (or segmenting) them based on similarities.