Segmentation and Target Market Strategies by Nike, Inc.

Nike, Inc. is a public multinational organization based in the United States. The entity is headquartered in Washington County, Oregon with operations focusing at the apparel and accessories industry. Nike dates back to 1964 where it was initially known as Blue Ribbon Sports. Nike is engaged in development, designing and global marketing of apparel, accessories, footwear, equipments and services relating to sporting activities (Strasser, 2003). Nike is among the fortune 500 companies, having been the global supplier of apparel, sports equipments and athletic shoes and accessories. The brand employs more than forty four thousand persons globally (Carbasho, 2010). Founders of Nike are Phil Knight and Bill Bowerman. Key persons in Nike identify with Mark Parker as the Chief Executive Officer and president and Phil Knight as the chairperson. Financial year 2012 indicated revenue of more than US$24 billion.

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Nike markets its products and services under the brand name Nike, which is globally recognized in the sporting activities. Nike was imported from the Greek name that means victory, and surely, the name has paid off the efforts since it is the global leader in the recreational products and services. Subsidiary names for the Nike brand identify with Nike Pro, Nike Golf, Nike +, Nike Skateboarding, Air Jordan, Converse and Hurley International among others (Carbasho, 2010). Niketown are retail outlets associated with Nike brand, Nike is one of the greatest supporters of global athletes and teams, in which it promotes its logo identifying with ‘Swoosh’ logo and ‘Just Do It’ logo (see appendices).

Market segmentation involves subdividing target market depending on a number of aspects. The strategy has been sensitive in understanding the needs of different customers using the Nike products and services. Market segmentation in Nike has been classified according to apparels, athletic footwear, sport equipments and recreational products. Nike uses different advertising models depending on the segment in the target market. Nike has managed focusing at the segmented groups comprehensively due to markets with similar and related needs.

Market segmentation in Nike has made the organization more effective in meeting the exact wants and needs of the target market. Although costs of advertising may go up, the response of the segmented market is worth in persuading the customers in the segmented markets, in that the model will meet the needs (Carbasho, 2010). Nike has admitted that meeting the needs of the segmented markets is addressed in a more comprehensive and reliable pattern. Each different group is supplied with diverse packages that are re-shaped in accordance with the diversity of the target group.

Nike engages formal analysis in understanding the market segments, in which marketing mix has been influential in delivering the changes. While choosing market segments, Nike has focused at different groups in the target market who display similar traits. Nike has made sure that the market segments are accessible, measurable, substantial and viable (Strasser, 2003). Accessibility in the sense that the products and services offered by Nike are practical cost effective and relevant to the distribution channels; measurable aspect is critical in Nike since the company uses the strategy is allocating the marketing spend. Nike reflects aspect of substantiality in the eyes of sustainability, since each market segment must have the ability to show long lasting effects (Katz, 1995). Viability of the market segment is reflected in the eyes of product affordability and in building a competitive edge on the products and services offered by the Nike. An example is the athletic shoes targeting athletes and the Nike Air Jordan targeting at the basketball players among others.

Common bases for market segmentation in Nike identify with geographical segmentation, which reflects on the regions and the countries of operations. Demographic segmentation in Nike is based on occupation, age and a gender; Psychographic segmentation focus on interests, lifestyle and values; Behavioral segmentation focus at brand loyalty, the intended use of the products and services and the beneficiary of the products and services (Strasser, 2003).

Nike is considered a ‘green’ company in environmental conservation, in the sense that it’s climate friendly; this has been critical in positioning the brand in the target market, marketing strategy focus at the college athletic teams, celebrity athletes and global professional teams. The marketing strategy is characterized with extensive advertising, Beatles song, new media marketing, minor threat advertisement and Nike 6.0 campaign among others. Current sponsorship identifies with American Football, Baseball, Basket ball at local club teams and national teams, Cricket teams, Football clubs, Golf, Rugby unions, Tennis, Boxing and Mixed Martial Arts among others in the world (Carbasho, 2010).

Source: (, 2013)

In summary, Nike has engaged market segmentation in splitting the target market depending on consumers with similar needs, a model that has encouraged conclusive marketing mix in meeting the exact needs of the target customers in sporting. Nike brand is globally recognized and has brand loyalty over decades. Nike has made sure that the market segments are measurable, accessible, viable and substantial (Katz, 1995). Market segmentation has made Nike more effective in meeting the exact needs of the target market.



Carbasho, T. (2010). Nike (Corporations That Changed the World). Westport, Connecticut: Greenwood. (2013). Images for Nike Advertisemnets. Retrieved November 02, 2013, from

Katz, D. (1995). Just Do It: The Nike Spirit in the Corporate World. New York: Adams Media Corporation. (2013). Nike. Retrieved November 02, 2013, from

Strasser, J. B. (2003). Swoosh: Unauthorized Story of Nike and the Men Who Played There. New York: HarperBusiness.








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