Targeting And Positioning Of Nike Air Max Marketing Essay

During the visit of Nick Athanasakos-Vice President in charge of global sourcing and manufacturing of Nike to Vietnam at 25 December 2011, he said “The Us group Nike has affirmed Vietnam as its key production base” and “Vietnam plays an extremely important role in Nike’s manufacturing market”.

Although Nike focuses on more about labor cost and manufacture in Vietnam, Vietnamese footwear market is not considered as an attractive and best seller of Nike. Vietnamese likes football and plays sports more and more but the percentage is not nearly high, so it creates an image in the producer’s mind that it’s not a suitable market to invest a lot of advertisings and attract more Vietnamese consumer to Nike.

So base on the survey has done for student from 18 to 25 years old in Kent International College, a lot of things can be found out about their buying behavior and the image of Nike in their mind by answering questionnaires to analyze their purchasing habit, income, interest in sport shoes, etc. All analysis will be in the body part of research paper which talks about not only Nike Woman Air Max Running shoes, but also running shoes industry,especially the positioning of Nike in the customer’s mind which can analyze the marketing mix of Nike. With that information, Nike will get more knowledge about Vietnamese market and consumer to have a suitable advertising and campaigns to maximum profit in Vietnamese market.

Segmentation, targeting and positioning of Nike Woman Air Max 2012:

Segmentation:

Nowadays, when carrying out business plan or business activities, almost companies do segmentation for products before those products launch out market. Segmentation market includes four forms: geographic, demographic and psychographic segmentation and behavior segmentation.

Geographic segmentation

The running shoes segmentation focuses on big cities like in Viet Nam; there are HCMC, Ha Noi Capital, Da Nag city, etc. People live in big cities tend to play sports than rural people and they are more willing to pay more for sport shoes, that can be observed by purchasing habit in different areas. Nike and other brands target people who usually play sport and tend to use sport shoes in 2 biggest cities, that’s Ho Chi Minh and Ha Noi where famous brand name showroms are available the most. It is very hard to find a Nike showroom in rural area or small cities because people there have to work on farm instead of doing exercise, this point can be observed by travelling and focus in interview. Rural people prefer domestic product such as Bitis, Asia,etc with cheap price although it is not dedicated for running or walking. This information is from focus interview which has been done during researching.

Demographic segmentation

In this segmentation, the business base on income, sex, carrier, age, etc. to segmented right market for products. Famous brand name is as Nike, Adidas, Reebok, etc. when company give out one product, this product has been availed for whose. Adidas brand gives out Adidas running clima tempest shoes, but it has one for men and one for women with medium income. In contrast, Nike Air Max running shoes has various productlines for both men and woman during years, that can be seen in Nike website supported in the reference, and Nike also targets on high income level. Also New Balance decide to aim at people that have high income and for man than woman. Puma product creates to supply for customer with also high income but lack of shoes for woman. Nike, Adidas, Puma products often focus on specially the youth from 15 to 28 but different brand name has different pricing strategy based on their level income of the consumer.

Psychographic segmentation

Lifestyles, social class, personanlity are factors that the businesses must base on when do psychographic segmentation. New balance is also product for sport, this brand name aim at people who like durability and quality than design and performance. Adidas aim at people that are simple, fresh and dynamic. Nike focuses on the modern lifestyle, unique, audacious dare to express, colorful style and of course love sport style.

Behavior Segmentation

The business will divide the customer into diffrerence groups to relied on differences knowledge, behavior, and thinking of the customer. Such athletes also have absolute brand loyalty as they are often sponsored by the company and given all the shoes for free. The very best athletes such as Michael Jordan and Tiger Woods have even had their own signature models designed with everything from sole to colour and pattern. Women’s segment offers long-term potential of Nike air max+ 2012 – the women’s sport market is one of the most attractive segments in the sporting goods industry, with women accounting for more than a third of total spending on athletic footwear. Nike air max+ 2012 have create a safety and comfortable shoes for users can feel satisfied when they pay for our service.

Targeting:

DEMOGRAPHIC SEGMENTATION

Gender :

As you know, the AIR MAX generation target on both male and female. But in our assignment, of course we just focus on female demand with soft texture, light-weight leather. The women will be protected while they moving with smooth ride. Nike also supply so many colors for women choice.

Age :

Following the manufactory, AIR MAX aims to people from teenagers to adult (15-35). And in our survey, it shows that People who choose this product from 18-25 (90%). Teenagers and adult like it because maybe they play the sport a lots, maybe they need it in their active life.

PSYCHOGRAPHIC SEGMENTATION

Who like sport ( air max 2012 aim to running, walking ) :

Nowadays many people love sport. They are also interested in sport’s fashion and spend a lot of money for this. It is different with other products, The new version AIR MAX 2012 was made with soft texture, light-weight leather. It also can make sure that you will have smooth and safe ride. All of this special structure is just suitable to people who enjoy running and walking. That why it is just aim to running and walking.

People do not really like sport but interested in comfortable product :

Besides the people who are like sport, some people do not really like sport but they are still like to use sport’s fashion (sport clothes and shoes sport…). They care how they looks , they may be colorful people, that why you can see NIKE AIR MAX supply so many colors for customer’s demand. However, people also can use sport clothes and sport shoes for daily activities because it makes they feel comfortable.

What make the purchase decision : ( Behavior )

The research show that there are many elements to make the purchase decision of customer; Demand, ads, celebrities, comments from family or friend… But the most significant affection comes from family and friend.

91% of women in survey say that they make a purchase decision from consultation of family or friend. In our survey, 23 of 30 women also said that they find recommendation before buying sport shoes comes from their parent and friend.

The survey also show that before making purchase 7 of 10 do the research, but only 35% of this buy on impulse seldom.

Positioning:

Nike positioning in consumer’s minds

When talking about sport shoes, everybody think first about Nike. Nike has become one of the famous brands in more than two decades. In our research, 90% of those surveyed said the first thing when talking about Nike sport product line is expensive to attach with good quality. 85% of the customer said that the general Nike product line and Nike women air max in particular make them feel at Nike product to have differences, dynamics, and personalities. Harmonious combination of color makes the youth when they wear it. 65 % of women using Nike really like product by style and high tech (combination between Nike with IPod). 90% of women using product satisfy with their choosing when spending more money to buy product.

Some comments show the satisfation of customer about Nike Women Air Max 2012.

Clare Zoe from Figaro, Puerto Rico August 27, 2012

She said that: “Great Shoes, for standing for long hours, I have 3 of them, because they simply are very extremely comfortable”. She rated this product 5/5.

Mscourney 19 From Naveda September 11, 2012

She said that: “These are my second pair of Air Max and I LOVE them! I blew out my other pair working out. I am on my feet all day long running around with little kids. I attempted to wear another tennis shoe to work while waiting for my new ones to arrive. My feet were killing me everyday until I got my new pair! I would HIGHLY recommend these shoes. ” and she also rate 5/5 for Nike Air max 2012.

SusanaG Correia ,Utrecht, The Netherlands.

She said : “I run half-marathons and marathons for years, and since 2010 I buy every 6 month a pair of nike air max +. I was injuried for 9 months before I start using them, and they make me feel real secure because they gave me all the stability I look for (I run about 42 kms per week).! Also the colours are also beautiful. Thank you Nike!”

Nike Woman Air Max 2012 quickly exceeds other products to have first position in top 3 new products in 2012.

Positioning map

Positioning strategy

To be successful today, The Nike has very effort at designing product and have a stategy carefully to confirm own positioning. The marketing strategies that are Nike had used to promotion product and brand name.

Nike has invited representatives of photos for your publication. Michael Jordan was the first superstar basketballs that have all the elements that Nike want to show as a style of audacious, independent and unique. Nike has really been successful when inviting Michael Jordan, he contributed to help Nike growing up to now.

In 1992, Nike established ” Nike Town” on North Michigan Avenue at Chicago. In the branding strategy, this strategy is the most unique. A land is about 70,000 m2, there is a building with 3 floors, it divided 18 booths displaying the entire Nike branded products. “Nike Town” is place that attracted the most travel in Chicago

Not stopping at basketballs, Nike also developed in others sport, and add on products line to spend for women. Nike sponsors Tiger Woods where many brands wish to contract with it. Although the contract with Woods is one of the most expensive advertising contracts, but Nike is enjoying advertising dollar from other sponsors.

Moreover, Nike also invited more other famous atheles to represent for different kinds of Nike products.

Nike builds online communities to share experiences customers exercise. Thus, the company constantly tightening relations with the user. Nike take advantage of marketing to attract customers and they were successful

Marketing strategy:

Marketing mix:

Every cooperation needs marketing mix including 4Ps: product, price, promotion and place for the first marketing analyze. And Nike also wants to maximum their profitable through using effective 4Ps.

Product:

Different sport wear market segments are met by Nike products and Nike Woman Air Max 2012 tends to satisfy girls with really nice design and good quality. Through the survey in Kent, the pie chart below will explain more what the girls expect to have sport shoes:

From the pie chart, 47 percent girl want to have a sport shoes including all functions like well design, durability, good protection,etc that Nike Woman Air Max 2012 can meet their satisfaction. The positioning of Nike woman running shoes in the industry is very high compare to other brands because of product differentiation. Nike uses Max Air for woman running shoes to provide maximum impact protection during repetitive landings. Not only that, shoes with Max air feature has less midsole material and large volume airbags for lighter weight and maximum cushioning. It is the featured technology that Nike uses for Woman Air Max to become differentiation. The full-length segmented max Air unit offers maximum impact protection and smooth transition. Colorful and well design is also voted very high because of its eyes catching. With those product differentiation strategy, Nike Woman Air Max 2012 has more competitor advantages in the running shoes industry.

Price:

Nike Woman Air Max started with the price $170 but at the moment its just $101.97. With that price, 18 girls among 30 girls in the survey agree to willing to buy a sport shoes with nice price and good quality. It means that Nike woman Air Max 201 can suit for their taste with that price and also the quality they need.

In general, Nike’s products compete with other competitors not only high quality but also high price. It’s their pricing strategy that the high price point will attract more consumers who consider that high price always accompany with high quality, so that they are willing to pay more. So in the positioning map, Nike’s product can take the place with high price and high quality which create more competive advantage. But it doesn’t satisfy the consumer sometimes because in the survey among 30 girls in Kent, there are 11 girls who give the reason why they don’t want to choose Nike sport shoes because of high price.

Place:

Nike tries to delivery the product through some of distribution outlets like: retail, online shopping, distributors and factory outlets. To Vietnamese consumer, retail and factory outlet are more popular than the others. Established in Vietnam nearly 20 years, now Nike stores appear a lot in shopping center and some stores are located in main streets. But when female students in Kent are aked about how easy they can find Nike stores, there are 17 answers which are not easy to find and just buy it only in shopping centers. It means that Nike is still lack of distribution for consumers who wants more convenient stores to buy.

Promotion:

Nike’s brand image is considered to represent one of the most recogniazable in the world, that can be seen how much Nike has paid for advertising and promotion. But in Vietnam, specially female student in Kent, 83,3% girls said that they don’t usually receive advertisement from Nike. And one among reasons why some of them don’t choose Nike because of shorgtage promotion and ads.

19 girls in Kent agree that they like to buy sport shoes during sales time, especially in summer because that the time they wear sport shoes the most. The chart below will show that how much discount 30 female students want to get sport shoes duirng sales time:

Targeting in woman shoes is very nice to expend share for Nike, but Nike should understand more the interest of girl in buying habit in sales time to have attractive and suitable promotion for Nike Woman Air Max 2012 to maximum the profitable.

Conclusion:

Woman running shoes segmentation has a potential for Nike to expand more product lines and build up the Nike image with high quality. So everything has been done in the research just to understand more consumer behavior and the positioning of Nike which are very necessary for Nike to create suitable and various advertising and promotion to atttract more female consumer to build up more the image positioning of Nike in the future . Those consumer migh not only build up the loyalty to Nike woman Air Max 2012, to Nike Brand, but also “word of mouth” will be used if Nike can please them with interesting promotion and services to maximum the profitable.