Executive Summary
The customer persona is a young female athletic customer who lives in the suburbs and has a moderate income. She is highly active and prioritizes the functionality and performance of her shoes when working out while also valuing the aesthetic and style of the shoes. In conducting a marketing mix analysis of Nike’s shoe products, it is identified that the company effectively addresses the needs of the customer persona through its product offering, which includes a wide range of performance-based and stylish shoes for various athletic activities. Nike also effectively uses pricing strategies, such as offering sales and discounts, to appeal to its target market. The company’s strong branding and presence in the athletic apparel industry also help to establish its credibility and attract customers.
However, some gaps in Nike’s marketing mix could be addressed to meet the customer persona’s needs better. The following report will describe a data-driven customer persona in detail, conduct a marketing mix analysis of Nike’s shoe products, and provide justified marketing mix recommendations based on analyzing the current marketing mix and identifying gaps. Ethical considerations, particularly in communication strategies, will also be included where necessary.
Introduction
The following report aims to understand the target market segment for Nike’s shoe products and evaluate the current marketing mix’s effectiveness in addressing this customer persona’s needs. The report will focus on a young female athletic customer living in the suburbs with a moderate income who prioritizes the functionality and performance of her shoes when working out and also values the aesthetic and style of the shoes. The importance of this report lies in its ability to provide valuable insights into the needs and preferences of this customer persona and identify potential areas for improvement in the marketing mix of Nike’s shoe products.
Target Market Persona
Focus on Persona
The use of young female athletic customers as the target market for Nike’s shoes is due to various reasons and the importance they hold in the market (Jansen et al., 2021). The customer persona represents a significant portion of Nike’s target market segment as it consists of young females who are highly active and prioritize both the functionality and style of their athletic shoes. The customer persona is also relevant because they have a moderate income, which suggests that they are more likely to be price-sensitive and prioritize value for money when purchasing athletic shoes (Jansen et al., 2021). By understanding the features and benefits that are most important to this customer persona, Nike can ensure that their products are designed to meet the needs of this group and effectively communicate the value of those features to potential customers.
Semi-Fictional Character
Jenny is a 25-year-old woman who is highly active and values a healthy lifestyle.
Day in a Life
Jenny regularly engages in various fitness activities, including running, yoga, and weight training. She is also an avid runner and participates in local and half marathons. She is also highly engaged with social media, particularly TikTok and Facebook, where she follows various fitness influencers and brands.
Demographic and Behavioural Information
Jenny is a college-educated woman with a moderate income of $75000 per annum with few expenditures. Jenny places a strong emphasis on comfort, durability, and performance when it comes to choosing her athletic shoes. She is willing to spend more money on high-quality sneakers to support her active lifestyle. She engages in running, gym workouts, and other physical exercises that require comfortable and functional shoes.
Information Search Process
She frequently researches and reads reviews online before making a purchase and values the opinions of other fitness enthusiasts. She enjoys learning about new product releases and participating in fitness challenges and events. She purchases products based on reviews, market analysis, and infographics of the shoes from the company and her peers.
Type of Experience Desired
As someone who is highly active and values the performance and functionality of her shoes, Jenny is likely looking for a shoe that will support and enhance her physical activity with value for the aesthetic and style of the shoes, indicating a desire for a visually appealing and fashionable shoe that complements her style.
Marketing Analysis and Evaluation
The market mix, also known as the 7Ps, is a marketing strategy tool that helps businesses analyze and optimize their product, price, promotion, place, people, process, and physical evidence (Brohi et al., 2016). In this analysis, we will examine how Nike has implemented the 7Ps in its shoe marketing strategy for an average consumer like Jenny.
Product
The product refers to Nike’s shoes for sports and activities like running, basketball, soccer, and training. These shoes are designed with the latest technologies to provide comfort, support, and performance for the user (Zhu, 2022). The company employs critical technologies in its design to ensure comfort in the athletic element of Nike’s shoes. They include Nike Air cushioning, flywire cables, and zoom air units. The Nike Air cushioning is a lightweight, responsive system that helps absorb shock and provide a smooth, comfortable ride. The Flywire cables are thin cables that wrap around the foot and provide a secure, custom fit, while the zoom air units are thin, low-profile cushions that provide a responsive, springy feel. Jenny as an athletic customer can significantly benefit from Nike’s shoes as a product. Nike’s shoes provide her with the comfort, durability, and performance she needs when engaging in various athletic activities.
In addition to the shoes’ functional aspects, Nike also strongly emphasizes their products’ design and aesthetics. They collaborate with high-profile designers and fashion brands to create fashionable, trendy products (Zhu, 2022). The aesthetic of Nike’s shoe products is meant to appeal to a wide range of customers and help the brand stand out in the competitive athletic shoe market. Nike’s shoe products are known for their clean, modern, and stylish designs, which may appeal to customers who value fashion and want to make a statement with their footwear. For Jenny, the aesthetic value of her training shoes is crucial as she appreciates the need to look appealing even during her routine exercises.
Price
The price of Nike’s shoes is determined by several factors, including the materials and technologies used in the shoe, the cost of production, and the target market (Shah, 2017). Nike uses a premium pricing strategy for some more technologically advanced shoes, such as the Nike Air Max 270. The shoes are priced depending on the technology and the design employed in creating the shoes. Nike also offers a range of shoe products at different price points to appeal to a broader customer base. For example, they may offer an essential running shoe at a lower price point while offering a more advanced, high-end running shoe at a higher price point. This allows customers to choose a shoe that fits their budget and performance needs. For Jenny spending high on high-quality sneakers is fine as long as the shoes support her lifestyle. She may spend more on the shoes as she understands their benefits and how they affect her routine activities.
Nike may also adjust the price of their shoe products based on market demand and competition. If a particular shoe is in high demand and there is little competition in the market, Nike may increase the price to maximize profits. On the other hand, if there is much competition or a low demand for a shoe, Nike may lower the price to remain competitive and stimulate demand (Brohi et al., 2016). The prices depend on promotions and discounts to drive sales and increase customer loyalty. These promotions could include discounts for bulk purchases, loyalty program discounts, and seasonal sales. Jenny, a frequent customer of Nike running shoes, may benefit from this pricing strategy as she may receive discounts from seasonal sales and promotions (Brohi et al., 2016). The loyalty program, which awards points as she purchases the shoes, may greatly benefit her as she can get a discount on her subsequent purchases.
Promotion
Promotion refers to how a company communicates and markets its products to its target customers. For Nike’s shoe products, promotion is crucial in attracting and retaining customers.
Advertising and public relations: Nike runs television commercials, print ads, and online ads to promote its products. These ads often feature sponsored athletes or influencers wearing and demonstrating the shoes. Nike uses television and commercials to increase awareness and promote their products’ sales (Joseph, 2020). The adverts are geared towards showcasing the benefits and aesthetics and promoting their shoe products’ brand. Nike also uses public relations tactics such as press releases, media appearances, and partnerships with non-profit organizations to enhance its brand image and reputation (Joseph, 2020). Jenny reads reviews and researches on the internet and other media before purchasing any of her athletic shoes. Through such, Nike can ensure Jenny is updated with the information she seeks before deciding on her next pair of sneakers.
Social media: Nike has a strong presence on social media platforms, particularly Instagram and TikTok, where they showcase their products through influencer partnerships and sponsored content. They also use social media to run promotions and contests to engage with their followers (Chen et al., 2022). For instance, Nike creates common challenges where contestants compete through various challenges to win Nike gift hampers. The content posted and Nike sponsors challenges, increasing awareness of their products and promotions, which generally drives their sales (Backaler, 2018). Jenny, a social media follower, usually faces such challenges and follows their activities and the brand. Through social media marketing, Nike can target her personally as she follows them and their sponsored content.
Sponsored events and athletes: Nike sponsors several sporting events and teams, as well as individual athletes like LeBron James and Serena Williams, who serve as brand ambassadors and help promote the products through endorsements and sponsored content (Backaler, 2018). As a fan of such athletes, Jenny follows them and listens to their advice on what shoe to purchase. As an athlete who participates in local marathons and half marathons, Nike could target Jenny through their sponsored events. Nike could sponsor such marathons where consumers like Jenny and others could be targeted.
Place
Nike shoes are available for purchase at Nike stores, sporting goods stores, department stores, and online through Nike’s website and other e-commerce platforms. This comprehensive distribution network makes it easy for customers to access Nike’s products. Nike has several physical retail and wholesale stores worldwide where customers can browse and purchase their products in person (Joseph, 2020). Physical locations where Nike shoes are sold include Nike stores, sporting goods stores, and department stores. These stores often have a wide selection of shoes and knowledgeable staff who can assist customers in finding the right shoes for their needs (Joseph, 2020). These locations allow customers to see and try on the shoes before making a purchase. Jenny, a suburban customer, can benefit from these stores in her neighborhood where she can conveniently purchase her shoes and inquire from the staff about their products.
Nike shoes are also available online through Nike’s website and other e-commerce platforms like Amazon, Zalando, and J.D. Sports. This allows customers to shop from the convenience of their own homes and have the shoes delivered to them. Nike’s online shopping experience is user-friendly and convenient, with features such as free shipping and easy returns (Zhu, 2022). Jenny can benefit from purchasing these shoes online as there are reviews and feedback about the quality, performance, and experience that fellow customers have encountered while using the product.
Physical Evidence
Design and appearance and packaging of the shoes: Nike uses a variety of design elements to create a visually appealing and functional product, such as color, branding, and performance-enhancing technologies (Chang, 2014). Consumers may also be able to identify the materials used to make the shoes, such as leather or synthetic, which could also be considered physical evidence. Nike’s packaging is designed to protect the shoes during shipping and enhance the unboxing experience for the customer (Chang, 2014). Through proper packaging, the shoes are protected and delivered to Jenny without damage, saving on the cost of warranty and improving the loyalty of its customers. Jenny, who focuses on the quality of her athletic shoes, is hugely attracted to purchasing Nike shoes due to their appearance. She is willing to spend more but get the high-quality, attractive shoes she needs for her activities. Nike shoe branding has been consistent and easily identified by consumers like Jenny.
Design and appearance of retail stores: Nike has an iconic design that emphasizes the company’s brand identity. The store design is modern and dynamic, featuring bold colors and Nike’s signature Swoosh logo. Customers can easily find their favorite products because the well-organized store displays the Nike brand (Shah, 2017). The store also features interactive elements that help customers experience the brand. For example, Jenny can try on shoes, watch product demonstrations, and get advice from Nike experts. All of these elements create an enjoyable customer experience that reinforces customer loyalty.
People
Nike employs a diverse team of employees at their retail stores and corporate offices, as well as the sponsored athletes and influencers who promote the products and serve as brand ambassadors. Nike has a diverse team of employees at their corporate offices and retail stores. These employees are responsible for various tasks related to producing, promoting, and selling Nike’s shoe products (Brohi et al., 2016). The employees at Nike’s retail stores are responsible for providing customer service, helping customers find the right products, and answering any questions or concerns they may have. Jenny as a customer, usually encounters employees at retail stores who provide her with all the information she needs before purchasing. Her loyalty to the brand depends on the information, reviews, and how the employees respond to her.
Nike sponsors high-profile athletes, such as LeBron James and Serena Williams, who serve as brand ambassadors and help promote the products through endorsements and sponsored content (Backaler, 2018). Nike also partners with influencers on social media platforms, such as Instagram and TikTok, to showcase their products through sponsored content. These individuals serve as role models and sources of inspiration for customers and help to raise awareness and interest in Nike’s products. Jenny follows these athletes and other fitness enthusiasts who provide insights and reviews into various Nike products. The reviews, recommendations, and information she receives from them usually influence her purchasing decision.
Process
Online shopping and personalized recommendation: Nike’s website is user-friendly and convenient, with features such as free shipping and easy returns. Nike’s online shopping experience includes personalized product recommendations based on the customer’s past purchases and browsing history (Brohi et al., 2016). This can help customers discover new products they may be interested in and make the shopping experience more convenient. Jenny can browse and purchase products from the comfort of their own home and have the option to have the products shipped directly to them or a Nike store for pickup. Jenny can easily access Nike products from their website and other eCommerce like Amazon, Zalando, etc., where the products are available for ease of purchase.
In-store shopping: Nike stores offer a wide selection of products and knowledgeable staff who can assist customers in finding the right shoes for their needs (Zhu, 2022). In-store shopping provides a wide selection of shoe products, including various sizes, styles, and colors, where Jenny can browse and compare different options in person. Jenny can visit her nearby Nike store, access the shoes, and inquire about the products from the staff.
Customer service and after-sale: Nike provides several customer service options, including phone support, email support, and live chat. Jenny can also reach out to Nike through social media platforms such as Twitter and Facebook for assistance. For after-sale elements, Nike offers a warranty program for certain products that covers defects in materials and craft (Zhu, 2022). Jenny can submit a claim if their shoes develop a problem covered by the warranty. Nike also has a ” Reuse-A-Shoe ” program that collects worn-out shoes and recycles them into materials used in playgrounds, tracks, and other athletic surfaces.
Recommendations
Product: Offer a range of high-performance, functional athletic shoes designed specifically for the activities Jenny engages in (e.g., running, cross-training). These shoes should also have a stylish and visually appealing design to appeal to this customer’s sense of style.
Price: Based on Jenny’s moderate-income level, it may be appropriate to offer a range of prices for different shoe models, with some lower-priced options and higher-priced options for those willing to pay more for additional features and technology. It may also be helpful to offer sales or discounts at certain times of the year to make the products more accessible to Jenny.
Place: To reach this customer, it would be essential to have a robust online presence and brick-and-mortar stores in suburban areas where Jenny is likely to shop. Partnering with local gyms or fitness studios is also an excellent way to get the product in front of Jenny.
Promotion: When it comes to communication strategies, it would be essential to consider ethical considerations such as avoiding using unrealistic or overly-idealized body images in advertising. Instead, focus on highlighting the functionality and performance of the shoes and featuring real customers or athletes using the products. Social media could be a particularly effective channel for reaching Jenny, as well as targeted email marketing and advertising in fitness or lifestyle publications. In-store events or product demonstrations could also promote the products to Jenny.
People: It would be essential to have knowledgeable and friendly sales staff available in stores to assist Jenny and answer any questions they may have about the products. It would also be helpful to have trained fit specialists on staff who can help Jenny find the right shoe for their specific needs and activities. Featuring real customers or athletes using the products in marketing materials could be a way to show Jenny that the products are being used and trusted by others like them.
Physical evidence: To appeal to this Jenny’s sense of style, it would be essential to have visually appealing product displays and packaging. The store should also have a clean, modern, and welcoming atmosphere.
Process: To make the shopping experience as convenient as possible for Jenny, offering online shopping options and in-store pickup or home delivery would be helpful. Nike should have a smooth and efficient in-store and online checkout process.
Conclusion
The data-driven customer persona chosen to represent the target market segment of Nike’s shoe products is a young female in a suburban area with a moderate-income level which is highly active and prioritizes both the functionality and performance of her shoes when working out and the aesthetic and style of the shoes. The marketing mix analysis of Nike’s shoe products reveals that it effectively addresses the needs of the customer persona. However, some gaps need to be filled to meet the customer persona’s needs better. These gaps can be addressed by making strategic changes to the marketing mix, such as increasing the communication strategies with the target customer to ensure that the product is delivered to them effectively. Additionally, ethical considerations should be taken into account when proposing any changes to the marketing mix.
References
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