Introduction
Nike is a large international manufacturer of quality clothing, and one of the key products sold by the company is sneakers. Every year, Nike produces thousands of pairs of sneakers and sells them through its network of stores. At the same time, as it was discovered in the previous part of the marketing plan, the company has an opportunity in the sphere of eCommerce. Specifically, Nike can expand its online presence and sell larger volumes of its sneakers using the Internet. According to research, the number of eCommerce sales around the world has been steadily growing over the past years (Chevalier, 2022). Thus, Nike has a chance to increase its efforts to enter the sphere of eCommerce by offering its unique sneakers. The current paper will focus on outlining several important aspects of the company’s marketing strategy, namely, segmenting, targeting, positioning, and differentiation.
Segmenting and Targeting
The high-end sneakers Nike sells are particularly popular among younger people and generally those who follow the most recent fashion trends. As a result, it is reasonable to utilize two segmentation strategies in the current marketing plan, namely, the demographic and psychographic ones. The demographic segmentation will target males aged between 16 and 35 with a medium income. Such an approach is supported by statistical evidence, which shows that the men’s segment generates the largest share of the company’s revenue (Bose, 2018). In terms of psychographic segmentation, the company needs to target people interested in fashion who value street-style clothing and footwear. Research demonstrates that Nike’s consumers are considerably fashion-minded, which indicates that the company needs to structure its marketing accordingly (Tighe, 2021). Moreover, Nike is the key brand to the sneakerhead culture, a community of people who enjoy collecting various iconic sneakers. Thus, the segmentation approach clearly shows that the key target market for Nike is young people who are conscious of the most recent fashion trends and how to have a specific lifestyle.
Marketing Strategy
The marketing strategy of Nike will rely on the four Ps of marketing: product, price, promotion, and place. As mentioned above, the main product which will be sold by Nike will be the company’s iconic sneakers. The diverse selection of sneakers the brand offers will be sufficient to target all the previously outlined market segments. For instance, Nike’s exclusive versions of the brand’s sneakers will be particularly in demand among the sneakerhead community members. The competitive advantage of Nike’s sneakers is their unique design which is produced only by the company. Additionally, all sneakers of the brand have the brand’s logo on them, which further makes the company’s products stand out.
Price is another essential element of the company’s marketing strategy. The average price for Nike sneakers is about $120, yet it varies depending on the particular type of product. For instance, exclusive sneaker models are more expensive because they have a collectible value. Nevertheless, the affordable price of Nike’s sneakers is its competitive advantage, allowing the targeted market segment, medium-income individuals, to purchase the product without facing financial problems.
Nike’s main promotion strategy should be based on collaboration with celebrities and notable personalities, including athletes, artists, and actors. Influencers who have large audiences provide the brand with a competitive advantage in the realm of promotion. Essentially, when fans of these personalities see them wearing Nike shoes, they may also want to purchase a pair. Thus, the company can draw consumers’ attention and encourage them to buy its sneakers.
Finally, as mentioned above, the company needs to explore the eCommerce segment more, and therefore the place aspect of its marketing strategy should be the Internet. The online store of the company should become its main competitive advantage which can be achieved through the sale of exclusive sneakers there. Essentially, the company must make its eCommerce store a place where consumers can go to get the latest sneaker models in different price segments.
Positioning
Customers have to perceive Nike’s sneakers as fashionable and quality products, allowing them to be trendy. The benefits offered by Nike will include iconic designs and affordable pricing. Additionally, the company needs to create a loyalty program to encourage customers to purchase more products by offering them discounts. The sale strategy of the company should be based on both business-to-business and business-to-consumer markets. Specifically, Nike can sell its ordinary sneakers both through partner stores and on its own eCommerce platform. At the same time, the exclusive models offered by Nike should be sold only in its official Internet store to attract more clients.
Differentiation
The differentiation strategy of Nike must rely on a unique product, namely, the iconic sneakers. As mentioned above, even the most conventional Nike sneakers possess the unique qualities of the brand, including the logo. Thus, by purchasing the most affordable sneakers, consumers still experience the sense of owning a part of the Nike’s legacy. As a result, the uniqueness of Nike’s sneakers muse become the driving force of its differentiation strategy.
Conclusion
Nike is one of the most notable sneaker brands which needs to embrace a marketing strategy based on the sale of its products through its online store. Nike’s differentiation approach must rest on offering its unique sneakers to younger fashion-conscious consumers. There are several sources of a competitive advantage that the brand can utilize. Specifically, Nike should collaborate with celebrities and influencers as part of its promotion strategy and has to focus on offering both conventional and exclusive sneaker models to consumers.
References
Bose, M. (2018). Social media marketing in fashion brands in Nike. International Journal of Emerging Technologies and Innovative Research, 5(12), 153–160.
Chevalier, S. (2022). Retail e-commerce sales worldwide from 2014 to 2025. Statista.
Tighe, D. (2021). Nike’s wholesale revenue worldwide from 2017 to 2021, by customer segment. Statista.