Question

1. Review the Nike’s marketing strategy. You must include the company’s target market, possible market segmentation, and market share related to its competitors. Additionally, you should examine the current and expected future economic conditions to evaluate whether the company is properly positioned for growth.

Answer 1

Nike is a company that is most preferred by athletes for the footwear that they produce, other products of Nike includes accessories and apparels for sports and fitness. For the span of five years, i.e. from 2011-2015, it saw a compounded annual growth rate of 11%. The target market of the company is mainly all the athletes and if we go by the age group other than the athletes, its the people who are in the age group of 11-45, maximum being the teens. It has a very general target market which consists of all people involved in some kind of sports and the one who are into fitness.It makes use of the targeting strategies that are differentiated. Nike mostly uses the segmentation that is psychographic which are by the personality, lifestyle, interests, activities, opinions,etc, of the customers and attracts them by making offers that are eye-catching and holding fun campaigns, especially for the youth. The market share of Nike is very large, when compared to its competitors. Different commodities have different market share, for example the primary commodity of the company, which is the footwear segement, comprises of 51.88% of the market share, the apparel segment comprises 25.14% and other equipments comprises 14.53% of the market share.The overall market share of the company is approximately 44.32% and has the highest share when compared to its competitors.

The Company has seen a healthy growth rate, year after year. Nike has seen a 7% growth compared to the revenue in the year 2018, and a growth of 11% when seen on a currency neutral basis. The current share price of Nike is 72.33 Dollars, which is seen to have a steady growth. The past years' growth rates of the company have been notable.With a good reputation and the good quality commodities that the company provides, it is expected that the company will keep growing in a steady rate, though initially it might see a decline in growth due to currency headwinds. Overall, the company is expected to grow by a good rate, in the future.