Nike Company: Background, Targeting Strategy And Market Insights

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Nike Company: Background, Targeting Strategy And Market Insights

Nike is an American worldwide clothing company that was found in 1964 in the city of Oregon in the united states of America by Phil knight and Bill Bowerman. Nowadays Nike is one of the most famous international brands in the world with a market capitalization of more than 65.8 billion dollars and net worth of 29.6 billion dollars in 2017 and 32.4 billion dollars In 2019, Nike has also been identified as the richest sports brand in 2020 and one of the most successful clothing brands around the world. and with more than 80 branches in the United Arab Emirates, Nike has been the most successful sports brand here in the UAE.

Company’s background

With selling around 900 million shirts and 850 shoes in a year, Nike have managed to overcome any competitor in the sports market that threatens its market such as ( Puma, Adidas, and New balance), and also one the most important things that made Nike more famous and popular worldwide is that they have sponsored many celebrities like ( Cristiano Ronaldo, Lebron James, Roger Federer etc.…) In fact, Nike has worked with the famous footballer (Cristiano Ronaldo) since 2003 with a deal worth as much as $1 billion dollars. Nike doesn’t only sponsor famous celebrities but in fact they sponsor some sports teams in different sport such as; Fc Barcelona, Chelsea, and Paris-saint Germain in football, while in basketball they sponsor big teams like; Los angles Lakers, Miami heat, and Chicago Bulls. But Nike has a big disadvantage which is the high prices on most of their items, for example a Nike Jordan shoes is at least 400 DHS here in the UAE and also a normal football or basketball jersey doesn’t get under 300 Dirhams, this reason made the customers see Nike as a place that they buy from once a month or even once a year.

Home country detail

Nike is one of the most popular brands worldwide In general, and they have a lot of customers around the world and also a huge amount of celebrities that they sponsor, but there are some countries that Nike is not sold in such as; Indonesia , Iran, and Vietnam. The reason behind not selling Nike in those countries is because they don’t have the policy from the company to open it in their country or maybe they have some political problems with USA such as; Iran, but that doesn’t mean that Nike is not popular in the Middle east, In fact the branches of Nike in the middle east is more than the branches in the whole continent of Africa, Nike has also a lot of Muslims customers around the world and especially in the middle east, so to satisfy these customers they have made some Muslim traditional outfits to sell in the branches that are available in the middle east such as; hijab, and swimming outfit for the Muslim women who loves sports and also loves to wear Nike products. Nike has also done a lot of charitable volunteers to many poor countries in Africa.

Segmentation and targeting strategy

As we said Nike is so popular in the middle east countries, here in the united Arab emirates 14 main branches that are available in famous places such as; the Dubai mall, midriff city center and also in Festival city mall, these are the most popular places for Nike in the UAE , Nike has created its branches in the most popular places in the UAE and most the visited ones, which is a smart way to attract costumers from inside and outside the UAE, another targeting strategy that Nike uses is that they use a lot of advertisements in all social media applications to attract the costumers and they also have online websites for the people that Nike is too far from their homes.

Marketing Mix

Nike has always put the 4p’s (price, product, place, promotion) under consideration, In fact Nike company is based on these things, the most important thing that Nike focuses on is the quality of their product, because Nike is not a normal company that have cheap quality items with high prices, so it should focus more about its quality. The second thing that Nike cares about is their prices which counts as a disadvantage for company because most of their items are so expensive to the level that the “Mag self-lacing trainers” which is a Nike shoes is worth 200,000$ and they also have different sneakers from the famous celebrity (Kanye west) which are called the Yeezy that are worth more than 1,000$. Nike also care about the place of its market, As we see in most of the countries and especially in the United Arab emirates, Nike shops are always in the most attracted places from the visitors such as; the Dubai Mall, Festival city and city walk . even in the United states of America, Nike shops are in the main places which are the central park and the times square. Nike have good way to promote their company. They use sales promotions for motivating the new customers by giving some additional benefits like; the savings the customers can make by purchasing when a discount or a special offer is applied.

How the company develop market insights?

Nike is a company that uses both primary and secondary data to get the customers opinions about their company, for example Nike collect some information to see which branch in the UAE that is not selling many items as the other branches, which will force them to close it and open it in a place that attract customers and visitors inside and outside the UAE, for example the Nike branch that was located at Sharjah was closed because it wasn’t selling the amount that was expected to be, so they opened it near the terminal 3 airport and made the store larger and they also included some new items to satisfy customers and the residents inside the UAE. Nike has also a customer feedback section in their online stores so that the customer can give his opinion about the product he bought from them, which is also a smart move from the company to satisfy this customer so he would buy again from Nike.

Price

When it comes to price Nike is somehow average in selling their items just like the other sport markets, for example Nike sell some items that are rare with a high quality in high prices and they sell their normal colored shirt in an average price, but there are some items that the company overrate their prices such as; the Yeezy shoes that is worth 2,000 Dirhams and also some items that are above 1,000 Dirhams such as; normal football and basketball jerseys.

Place

When It comes to place Nike is one of the markets that have many branches, especially here in the UAE, Nike have approximately 2 or more branches in every city in the UAE, but the most branches are available in Dubai since it is the most famous city in the country with the biggest amount of tourists.

Nike can be considered both (B2B and B2C), for example a company called (Sun and Sand sports) buy many products from most of the sport market in the Middle east and one of them is Nike, which counts as business to business.

Nike is one of the biggest markets in the UAE, it has over 80 branches in all cities, Nike knows how much its popular in the middle east and especially in the United Arab emirates, so to satisfy these Arab customers Nike has added some familiar and famous Arab costumes to its market such as; the hijab which is an Islamic outfit for the women, Nike is company that doesn’t discriminate between their customers, which is a reason why the company is successful.

Conclusion

After doing this amazing research, I have learned a lot about Nike and its markets around the world. And I also understood most of the details inside this huge company, and how much its popular in the middle east and worldwide, and also who were the celebrities to get sponsored by this company such as; Cristiano Ronaldo and Lebron James, and the most important thing that made me like this company even more is that it satisfies every customer they deal with and also including Muslim costumes in their stores which is a great move by them, Nike is a very successful company from the past till Nowadays.

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