Case Study- Nike
1. Discuss how Nike's growth can be attributed to its targeting of diverse market global segments. In the 1960’s Nike was only making running shoes. At this point in time not many people knew of Nike or the Nike swoosh. In order to increase brand awareness, they started paying athletes to wear their shoes. However, very soon Nike learnt that in order to be a global brand they needed to appeal to different market segments, not just athletes. Hence, they then decided to tap more markets. In order to d so, they discovered 3 very distinctive market segments that they could attract.
The highest on the pyramid were the Ultimate/Performance Athletes. These included big names in the fields of running sports. They are the people who join sports to be athletes. The second in line are those people who are not necessarily athletes, however, the activities they carry out are athletic in nature. Lastly, the third tier of the pyramid included those people who are influenced by the culture of sport. Nike decided to target these segments using what they call the Pyramid of influence. They believed that the activities of the small percentage of people in the first layer of the pyramid had a great impact on the larger number of people in the third layer. The first layer included all top sports persons, such as Michael Jordan and Tiger Woods. Nike learnt early in time that the largest layer of the pyramid and their attitude towards Nike as a brand could largely be affected by how the Ultimate Athletes behave towards Nike. This is the reason why Nike starting running a lot of endorsements that features these sports celebrities in it. Nike chose the celebrities depending on their individual personalities because what the brand and celebrity had a strong association. Nike planned its marketing strategies in advance and therefore benefited from it. Nike’s shoes being endorsed by some of the leading sports figures played a huge role in the growth of Nike’s...
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