The brand’s percentage contribution to Nike’s top line has come down over the last five years. The company may be able to address the first problem through outsourcing products. Thus, Nike segments market in lower, upper middle and upper class, where in the last group, the company provides sports equipment in limited editions, which could be bought only from individuals with high income (Bilotti, 2011). It accounted for 15.8% of Nike’s total revenues in Q1 of fiscal 2020. According to Nike, conversion from licensees to a direct distribution model had a minimal impact on Converse’s fiscal 2019 revenues. This would benefit consumer discretionary companies like Nike, especially considering the boom in sports and sports marketing in China. The secondary market would be wheelchair users who are confined to their seats. In this article, we will deep dive into the topic of Market Research Techniques. Their annual athletic footwear sales total $90 million. The company went high-tech with its push into digital sports and e-commerce. The company also targets basketball fans with a campaign involving player Kobe Bryant. Nike specifically targets sports viewers, with initiatives correlated with the Sochi Winter Games, the Super Bowl in New York City, the Prefontaine Classic in Eugene, Oregon, and the World Cup in … Nike consolidates Asia (ex-China) Pacific and Latin America as one reporting segment. The secondary market of an organization is referred as the target market that it is aiming to focus in the future period of time (Lutz, 2015). As with Nike’s other target markets, its products are seen as a premium brand in this region also. Nike’s Air Jordan brand of basketball sneakers generated over $3.14 billion in the fiscal year ending May 2019, up 10% from the previous year. Being present in footwear, sports equipment, clothing and many others Nike uses differ… Historically, its first and fourth quarters have been relatively stronger in terms of sales. The target market is composed of men and women, 18-40 years of age, with mid-range incomes. It includes casual apparel and footwear products, which are sporty but not necessarily high performance. Five years ago, Greater China’s contribution to Nike’s revenues was in the single digits. The company’s operations are spread around the world. Its sales are seasonal and dependent on geography. But Nike’s disruptive approach to advertising dates back 30 years. In 2017, Nike changed its reportable operating segments. Market Penetration. The marketing strategy of Nike rested completely upon a product image which is favorable and allowed it to develop into one of the best multinational companies after a while.. Nike’s favorable product icon has been kept optimistic because of the strong relation with the company logo that is quite distinct and unique as well as the product slogan that has been utilized in commercials … The market for apparel has many players and is also highly competitive. Target Market Of McDonald’s. Meanwhile, Nike faces some challenges in its target markets. Thus their pricing strategy is to provide value at high cost with maximum profitability. Brazil, the largest economy in Latin America, is another of Nike’s key target markets. Target market based on Psychographic segmentation. Their average twelve-month price target is $155.03, predicting that the stock has a possible upside of 10.24%. Youth Fashion is also a huge target market due to trends and the 'cool' thing to wear, with a huge variety of styles and sports shoes and the option to customize your own shoes, the demand is sky-high. Nike target audience Since it began in 1964, Nike has quickly emerged as one of the most valuable and recognisable brands in the athletic marketplace. Nike has diff… This makes the target audience a more specific subset of a target market. Nike is the leading sports footwear and apparel company in the world. 2-1 Discussion: Qualitative Research and Secondary Data I have selected Nike corporation. Nike’s target market is largely consumers ages 15–45. Secondary Target Market: While Under Armour’s primary target market focuses on the youth, student male and female athlete and fitness groups, professional athletes are a secondary target market. This segment reported an EBIT margin of 24.9% in Q1 of fiscal 2020. In comparison, Nike’s major competitor in the US market, Under Armour, NKE, UA, and VFC are part of the Vanguard Total Stock Market ETF, Nike’s North American segment grew at a compound average growth rate (or CAGR) of 1.5% from fiscal 2017 to fiscal 2019. In a recent business overview, Nike lists serving athletes as one of its key goals for innovation. Furthermore, if the US-China trade war worsens, US brands like Nike could face backlash in China. In 2017 alone the company generated $34 billion dollars in revenue, the largest portion of which was earned in North America.. Much of Nike’s success can be attributed to skillful marketing and sponsorship deals with the biggest names in professional … On the basis of age, Nike targets a variety of age groups from young adolescent to middle-aged adults. Nike dominates the global sportswear market — and data shows it has strong pull with both existing customers and potential customers. 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