They also sell their products through independent distributors all around the world. Geographic Geographic is simple, yet powerful segmentation basis. The government of any country must enforce economic policies that will benefit the growth of industries and businesses in that particular country. Nike delivers innovative products, experiences and services to inspire athletes. Since consumers in the footwear industry are price conscious and the market is highly competitive, companies are striving to provide the best possible deals to the consumers. Nike shoes produce solid waste. This was based on growth expectations across its portfolio, which includes NIKE Brand, Cole Haan, Converse, Hurley, Jordan Brand, NIKE Golf, and Umbro. According to Mintel, 20%of the U.S. athletic market is controlled by Nike. Along with the decelerated sales labor cost and raw materials prices are increasing, which in turn will affect the profit margin of the company. This political unrest in the production countries may affect Nike. BEAVERTON, Ore. (March 20, 2009) – NIKE, Inc. (NYSE:NKE) announced its plan today to reorganize its Nike Brand into a new model consisting of six geographies with reduced management layers and an increased focus on core category business areas, driving … facts. "Nike's revenue worldwide from 2017 to 2020, by region (in million U.S. NIKE, Inc. is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. Join Facebook to connect with Renée Catherine Bartlett and others you may know. Geographic Geographic is simple, yet powerful segmentation basis. Nike in North America Most of Nike’s (NKE) incremental revenue was recorded in its North America market, Nike’s largest geographical segment. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Nike Inc 's Annual Sales by Country and Region in May 31. Nike also recorded comps store growth of 17% and higher e-commerce sales. Although owners may deny that Nike is a fashion brand but many people think otherwise. 1st Jan 1970 There are different ways to segment markets, these are: Geographic segmentation, demographic segmentation, psychographic segmentation, and behavioral segmentation. Nike is a global brand with strong brand recognition. However in March 2009, Nike announced its plan to reorganize its global business in order to bring goods closer to the markets and in turn consumers as well as to reduce management overlap. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. As Nike stated on February 10th, this organizational change is part of a wider company restructuring that may result in an overall reduction of up to 4% of the company’s workforce. The former message of Nike has been used since 1989, when it was first introduced and the latter was developed by Bill Bowerman when Nike first started. Nike’s largest markets are North America followed by Western Europe and China. We often market footwear, apparel and accessories in “collections” of similar design or for specific purposes. Product development is in its own an opportunity for Nike. (billed annually). Contents:Letter to Our Shareholders, page 1• Operations Review, pages 2-3 • Financial Highlights, page 4 • 2001 Annual Report on Form 10-K, Insert • Corporate Information, inside back cover therightfocus Stage Stores, Inc. (Nasdaq: STGS) is a Houston, Texas-based regional specialty Nike derived ~44% of its revenue from North America in 1H15. Are you interested in testing our corporate solutions? VAT Registration No: 842417633. The largest of these by weight is cured rubber used in shoes soling. Nike does not have any control over the political and legal environment in that country. Nike now is focusing on targeting more on women and Generation Y. Please authenticate by going to "My account" → "Administration". There are also an increasing number of women consumers in the market due to changing lifestyle and trends. According to Mark Parker, Nike Inc. President and CEO, Nike has competitive advantages in its portfolio with innovative, compelling products that are distinct and relevant to consumers. It also is targeted towards customers who are interested in athletics. ", Nike, Nike's revenue worldwide from 2017 to 2020, by region (in million U.S. dollars) Statista, https://www.statista.com/statistics/241692/nikes-sales-by-region-since-2007/ (last visited December 19, 2020), Nike's revenue worldwide from 2017 to 2020, by region, Retail sales of the global apparel and footwear market 2017-2030, Size of the global sports market in 2018 and 2023, by product category, Sports market share worldwide in 2018, by country, Global sales of the top performance apparel, accessories, and footwear companies 2019, Global sales growth forecast of top athletic wear companies 2020, Global market shares of the leading apparel brands in 2017, Global gross profit of Nike from 2014 to 2020, Domestic sales share of Nike worldwide from 2016 to 2020, Global revenue of Nike from 2016 to 2020, by sales channel, Global revenue share of Nike in 2020, by product type, Global revenue of Nike from 2016 to 2020, by product category, Nike's revenue worldwide 2017-2020, by region, Nike's North American revenue 2009-2020, by segment, Nike's revenue in EMEA 2016-2020, by segment, Nike's revenue in Greater China 2009-2020, by segment, Nike's revenue in Asia Pacific & Latin America from 2016 to 2020, by segment, Number of Nike's retail stores in the U.S. 2009-2020, Number of Nike's non-U.S. retail stores 2009-2020, Nike's marketing expenses worldwide from 2014 to 2020, The adidas Group's net sales worldwide from 2000 to 2019, Global share of adidas retail sales in 2019, by region, Share of adidas' net sales worldwide in 2019, by product type, Share of Puma's sales worldwide in 2019, by region, Share of Puma's consolidated sales worldwide in 2019, by product category, Under Armour's net revenue worldwide 2008-2019, Under Armour's net sales share worldwide in 2019, by region, Nike's quarterly revenue worldwide from 2017 to 2020, Gross profit margin percentage of Nike worldwide from 2014 to 2020, Nike's revenue in Western Europe 2009-2017, by segment, Nike's revenue in Central and Eastern Europe 2009-2017, by segment, Nike's revenue in Japan 2009-2017, by segment, Nike's DTC revenue share worldwide 2011-2015, Global revenue of Nike from 2017 to 2020, by customer segment, Nike's revenue in emerging markets 2009-2017, by segment, Nike's carbon footprint of products 2015-2019, Media perception of Nike in the Netherlands 2020, by characteristic, Impact of Kaepernick campaign on U.S. consumers' purchase decision of Nike products, Market share of the global leading brand apparel companies 2016, Net sales share of Urban Outfitters worldwide in 2020, by product category, Global net sales share of Levi Strauss in 2019, by brand, Retail sales of the global jacket and coats market 2012-2021, Merchandise revenue share of Cabela's worldwide 2013-2016, by product category, Nike's revenue worldwide from 2017 to 2020, by region (in million U.S. dollars), Find your information in our database containing over 20,000 reports, Tools and Tutorials explained in our Media Centre, operated more than 1,000 retail stores worldwide in 2020. Nike has around 48,000 retail outlets of which around 18,000 are in the U.S. alone. Another weakness of Nike is the negative image portrayed by reduced working conditions in the overseas factories. Its famous logo ‘SWOOSH’ can be recognized instantly by anyone. New, Everything you need to know about the industry development, Find studies from all around the internet. Revenue of the cosmetic industry in the U.S. Value of the leading 10 textile exporters worldwide, Vegetable oils: global consumption by oil type 2013/14 to 2019/2020, Cocoa bean production worldwide 2018/19 & 2019/20, by country, World coffee per capita consumption: major consumer countries, Cosmetics Industry in the U.S. - Statistics & Facts, Research expert covering agriculture & FMCG, Profit from additional features with an Employee Account. Another strength of Nike is its extensive distribution lines. Blog. NIKE apparel and accessories are designed to complement our athletic footwear products, feature the same trademarks and are sold through the same marketing and distribution channels. (Kotler et al 2010, p277) After evaluating different segments, Adidas adopts market coverage strategy which is differentiated marketing. This feature is limited to our corporate solutions. Along with footwear the company also markets sports apparel and accessories, along with sports inspired apparel and athletic bags. The Sports Footwear Market will grow by $ 10.23 bn during 2020-2024 For example – In a diverse and multi lingual country like India, global companies like Vodafone, Nike, Adidas have to come up with different marketing strategyfor different regions within the same country. Nowadays people are more brand conscious. Please do not hesitate to contact me. 2015, Central & Eastern Europe, Greater China, Japan, North America, Other, Total, Western Europe Sales - CSIMarket “Hurley continues to outperform everyone in its market; Cole Haan has tremendous opportunity for growth; and Converse, nearly a $1 billion business, has developed strategies to double its revenue by 2015.”- (Mark Parker, President and CEO of Nike Inc.). Nike Inc 's Annual Sales by Country and Region in May 31. Nike also lays heavy emphasis on Differentiation. Nike’s main competition comes from Adidas and Reebok along with many small companies such as New Balance, K-Swiss, etc. In the fiscal year 2020, Vietnam produced 50%, China produced 22%, and Indonesia produced 24% of total Nike’s footwear. Our academic experts are ready and waiting to assist with any writing project you may have. Nike's revenue worldwide from 2017 to 2020, by region (in million U.S. dollars) [Graph]. Nike segments its markets on the basis of age, gender, geographic locations, psychographic, benefits sought, and usage. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Please create an employee account to be able to mark statistics as favorites. Both goals extend NIKE Inc.’s long term financial model of high single-digit revenue growth, mid-teens earnings per share growth and expanding returns on capital. New, Figures and insights about the advertising and media world, Industry Outlook There a many different aspects to consider when deciding on how to market a product and who to market a product to. Statista. Currently Nike is focusing more on Generation Y market and women. Also having a large product portfolio gives Nike an advantage since customers can choose from a wide variety of products. Nike employees engineered a creative way to keep it out of landfills and convert it into more outsoles, called REGRIND, and are available to public. NIKE, Inc. is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. Outside of North America, Western Europe is the largest geographic demographic for this brand. How many global employees Nike has 2009-2020, Value of the leading global apparel brands 2020. Also the amount of time and resources in maintaining each of its product line is very high. Nike has different advertisements for men and w… Apart from that the consumers also have a choice to design their own shoes on the official Nike website where they can choose the design, color, features, etc. The company offers footwear for football, basketball, soccer, baseball, tennis, golf, walking, sport-inspired casual shoes, kids’ shoes and other athletic and recreational purposes. This company is one of the major suppliers for the world’s sports shoes and one of the major manufacturers of sports equipment. Profit from additional features by authenticating your Admin account. This means that a company derives 80 percent of its sales from 20 percent of its consumers who always purchase the product of that particular company or brand. Table of Contents NIKE, INC. Nike. Accessed December 19, 2020. https://www.statista.com/statistics/241692/nikes-sales-by-region-since-2007/, Nike. Nike Inc. specializes in footwear, apparel, equipment and accessory products for men, women and children. Do you have a 2:1 degree or higher? It also offers products to many different people who have different tastes, interests and needs. The company's headquarters are located near Beaverton, Oregon. *You can also browse our support articles here >. "Nike's Revenue Worldwide from 2017 to 2020, by Region (in Million U.S. Dollars). No plagiarism, guaranteed! Until 2009 Nike’s geographical markets consisted of United States, Asia-Pacific, Americas and an area comprising of Europe, Middle East and Africa. Nike makes every attempt to reduce the impact of each of its products on the environment throughout its Product Life Cycle from design to manufacturing, and ultimate disposal. Study for free with our range of university lectures! Preferences of young consumers are changing. Nike continually strives to innovate and develop its products. Nike's Greater China and Europe, Middle East & Africa segments were the only geographic segments that grew revenue in Q1 FY 2021 amid the pandemic. Disclaimer: This work has been submitted by a university student. Why your go-to-market strategy should be industry focused; Dec. 1, 2020. For Nike, their targeted customers are athletes and mostly young adults. It uses separate campaign or strategy to cap the market potential of the different segments.Targeting is the important aspect of the marketing strategy, especially when a company is in different businesses. Nike segments its markets on the basis of age, gender, geographic locations, psychographic, benefits sought, and usage. for their shoe. Most of Nike’s (NKE) incremental revenue was recorded in its North America market, Nike’s largest geographical segment. Market targeting Market targeting is evaluating different market segments, a company must look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources. ANNUAL REPORT ON FORM 10-K Table of Contents Page PART I 1 ITEM 1. Business 1 General 1 Products 1 Sales and Marketing 2 United States Market 2 International Markets 2 Significant Customer 3 Orders 3 Product Research, Design and Development 3 Then you will be able to mark statistics as favourites and use personal statistics alerts. While using geographic segmentation, the company might launch different products for that particular market or might also use different marketing strategy to attract the said geography. Due to this cost and profit margins are not stable over long periods. Products are mostly sold through its retail stores, independent distributors, franchisees, licensees and also through e-commerce. Following this plan Nike then decided to develop its market share in North America, Western Europe, Eastern/Central Europe, Greater China, Japan and Emerging Markets. This creates opportunities as people may think the product could become unfashionable before it wears out, i.e., consumer may think that they need to replace it. Reflective Sportswear Market: Geographic Landscape By geography, North America is going to have a lucrative growth during the forecast period. July 24, 2020. Nike's market penetration and geographic expansion strategy are predicated upon building consumer-based brand equity (CBBE) and utilizing specific tactics to diffuse it across unreached demographic and psychographic sets. This means it doesn’t have any expenses that may arise out of maintenance of any of the above. This means that companies are trying to cut down costs from every perspective. Since expenses are low, Nike is able to enjoy profits. On May 5th, 2010 Nike revealed its Global Growth Strategy to achieve sustainable, long-term growth across its global portfolio of brands and businesses. This involves breaking large markets into segments that can be reached more effectively. This is the reason why Nike strives to be different from its competitors. The company’s operations are divided into segments based on regional markets. This may lead to bad publicity of the company as a whole and may affect the sales as people nowadays want companies that are socially reliable. This report aims to present the marketing plan of the leader of sportswear innovation, Nike. “With our acquisition of Umbro, NIKE has extended its position as the biggest football Company in the world,” Parker said. Registered Data Controller No: Z1821391. The company Nike was founded in 1964 by Bill Bowerman and Phil Knight who had located their headquarters near Beaverton, Oregon. Also Nike has started aggressive marketing towards women by creating Nike Goddess stored and introducing women’s yoga shoes in an attempt to appeal health conscious women. This restricts the amount of entrants in the market. Marketing The biggest threat for Nike is the economic downturn which will result in the slowdown in purchases. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. However, this is no problem for Nike as it is the number one sports brand in the world. Chart. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. High level of competition with Adidas and Reebok is also a threat to Nike as these companies have almost the same product range and target markets. One of the opportunities for Nike is its ability to penetrate a new market. You can view samples of our professional work here. While the south is passionate abo… Nike derived ~44% of its … Since Nike outsources its manufacturing to other manufacturers, it doesn’t have any capital tied up in machinery or equipment, which results in fewer expenses. There a many different aspects to consider when deciding on how to market a product and who to market a product to. In 2020, Nike's North American revenue amounted to about 14.48 billion U.S. dollars. The introduction of Nike+iPod sports kit in the year 2008. and over 1 Mio. This is why Steve Prefontaine and Nike were a tremendous tandem in the early years of Nike's existence. On the basis of benefits sought, Nike provides shoes, apparel and equipment for an extensive variety of sports all over the world. Dec. 2, 2020. Reference this. Nike also faces a problem with the labor and factory conditions in the factories located in the Asian countries. The market segments that Nike can mainly differentiate are high, medium and low end customers with varying income levels. Renée Catherine Bartlett is on Facebook. Behavioristic Variable Targeting based on this attribute is the genius of Nike. Nike has different advertisements for men and women of every race and nationality separately. Since Nike is a fashion brand and fashions keep changing. With a revenue target of $27 billion by the year 2015, Nike outlined each and every category of their product line – from Nike SB to Women’s Training – and hoped to reach that goal through a consumer-focused strategy. The second aspect that we need to consider is that revenue growth in North America, which is Nike’s biggest geographical market, has sagged. By 1984 Nike had supplanted Adidas as the number one selling running shoe company in America. Also teams of any sport, any size, and anywhere in the world are targeted by Nike. Nike is trying to maintain these customers who are brand loyal towards Nike by constantly bringing about product innovation. Though disciplined operating management, the company still continues to target long range mid teen earnings per share growth. Nike, Inc. is a sportswear and equipment supplier based in the United States that was founded in January 1964. No single distribution outlet outside of Nike’s retail outlets accounted for more than 10% of their overall revenues, proving the level of demographic diversification this brand has. Nike is exposed to the international nature of trade. Each regional division’s managers optimize operations in the regional sports shoes, apparel and equipment market. On the basis of age, Nike targets a variety of age groups from young adolescent to middle-aged adults. This timeline shows Nike's revenue worldwide from 2009 to 2020, by region. Nike segments market based on world and country region, city and popularity density in different way. Corporate solution including all features. Browse and purchase history, social media postings and data related to demographic, psychographic and geographic makeup all fuel … Nike’s target market for its shoes, clothes and other accessories are males and females between the age of 13 and 35 years. This message clearly defines Nike’s image which is a positive and self-confident nature. Until 2009 Nike’s geographical markets consisted of United States, Asia-Pacific, Americas and an area comprising of Europe, Middle East and Africa. The US policies have fortunately enables NIKE to grow and market its products. Nike delivered 24% currency-neutral revenue growth in Greater China, led by NIKE Direct, with digital commerce up over 60%. Please contact us to get started with full access to dossiers, forecasts, studies and international data. Nike’s aim is to push its products in countries that apply to certain sports, which are popular in that particular country. Overview and forecasts on trending topics, Key figures and rankings about brands and companies, Consumer insights and preferences in various industries, Detailed information about political and social topics, All key figures about regions and countries, Everything you need to know about Consumer Goods, Identify market potentials of the digital future, Technology Market Outlook Browse this series on Market Realist: Part 1 - Nike in 2015: An Earnings Smash, a Widening Moat, and Record Highs. Please log in to access our additional functions, *Duration: 12 months, billed annually, single license, The ideal entry-level account for individual users. The history of NIKE is a true American success story. This in turn will affect the growth of Nike. Until 2009 Nike's geographical markets contains USA, Asia-Pacific, Americas and an area comprising of European countries, Midsection East and Africa. Although Nike has a large product portfolio, its income is still profoundly dependent on its share of footwear market. $39 per month* Nike promotes products that ooze with style, attitude and self-confidence. They now want fashion-oriented products for leisure activity instead of sports activities. China is another key market for Nike. All work is written to order. Principles Of Marketing. […] Nike also operates a ‘futures’ option wherein the retailer can order up to 6 months in advance. CBBE is built exclusively through recall, relevance, and esteem (Keller 1993). Since Nike outsources its manufacturing to other countries, it doesn’t have any capital tied up in machinery, equipment or factories. The support accorded to Nike by the US government, particularly in the general macroeconomic stability, low-interest rates, stable currency conditions and the international competitiveness of the tax system, form the foundation critical to Nike’s growth. Then you can access your favorite statistics via the star in the header. Along with these Nike also offers performance equipments which include bags, socks, sport balls, eyewear, electronic devices, bats, gloves, golf clubs, and other equipments designed for sports activities under the brand name NIKE. While Nike occasionally focuses on Nike's market penetration and geographic expansion strategy are predicated upon building consumer-based brand equity (CBBE) and utilizing specific tactics to diffuse it across unreached demographic and psychographic sets. Nike is targeting further geographic expansion and farther marketing penetration in all regions. Nike acquired Converse to provide for the increasing demand from Generation Y for retro and classical footwear. Its famous ‘SWOOSH’ is instantly recognizable. The company also expects to generate over $12 billion of cumulative free cash flow from operations through 2015. Part 2 - How Was Nike’s 4Q15 and 2014 Sales Performance in North America? 2015, Central & Eastern Europe, Greater China, Japan, North America, Other, Total, Western Europe Sales - CSIMarket For example, Products relating to Rugby are advertised more frequently in Europe when compared to U.S., as Rugby is popular in Europe than in U.S. Nike promotes a positive and confidant attitude and targets people who want to attain that attitude. Europe, Asia, North and Latin America are the main markets in which Nike sells its products, which makes it a truly global organisation. This can be seen from the fact that Nike has a website where consumers can design their shoes according to their requirements and tastes. In these geographies Nike’s marketing efforts are largely focused on urban areas with high market densities. Semi-Autonomous Geographic Divisions. Market segmentation of the Nike company Demographic Segmentation Demography segmentation they include age, race, family income, and education level, among others.Besides, it was observed that the majority of the respondents consist of professional from various fields like engineers, software professionals, … Nike segments market based on world and country region, city and popularity density in different way. Other operations are in Argentina, Brazil, India, Italy, and Mexico. People today are more brand conscious where they prefer to buy products which have brand value associated with them. There is a theory known as the ’80/20 principle’ (Czinkota et al., 2000, pg 200). This is not an example of the work produced by our Essay Writing Service. CBBE is built exclusively through recall, relevance, and esteem (Keller 1993). Nike is aware of the conditions that affect the workforce, communities, products, supply chains and people, from rising fuel prices, population growth, climate change and reduction in the availability of natural resources. This message is clear in Nike’s tagline ‘Just Do It’ or ‘If you have a body, you are an athlete’ which is shown in many advertisements of Nike. This gives Nike an advantage over its competitors as its name and logo is recognized globally. Nike always adopts latest technology for its product manufacturing and development. The rise and fall of governments’ results in change in policies relating to tariff on import and export, foreign direct investment, etc. Prezi Video + Unsplash: Access over two million images to tell your story through video Due to Nike’s huge brand awareness, its competitors have to put in more effort to sell their products and also new entrants in the industry should have huge amount of capital to invest in advertising to create brand awareness and to become a significant if not a major player. You only have access to basic statistics. Low Manufacturing Cost – Most of Nike’s footwear is manufactured in foreign countries. In the first part, we will begin by covering the history o f the company and w e will go over an in-depth Being present in footwear, sports equipment, clothing and many others Nike uses differentiated targeting strategy.Produc… To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! In, Nike. On the basis of usage, Nike is trying to maintain the constancy of purchases being made. Research and Development has always been Nike’s strong point as can be seen from its ever evolving and innovative product range. Other brands of Nike Inc. also continue to increase their contribution to the company’s overall growth strategy. Nike’s main production faculties lie in the Asian countries where political unrest prevails. A few years ago, a marketing campaign for the state of Texas used as its tag line the phrase, “Texas: It’s Like a Whole Different Country.” While the tongue-in-cheek point of the statement was the diverse nature of this state and its imposing breadth and scope, it also has an interesting second definition. Changing Exchange Rates also pose a threat to Nike as it deals internationally, i.e., it buys and sells in different currencies. Hence, this poses a threat to Nike. Nike uses psychographic segmentation variables to make its offerings more attractive to the target customers. Update, Insights into the world's most important technology markets, Advertising & Media Outlook