Question

Identifying the Customer and Problem for NIKE

Describe a primary decision maker in your target segment: who they are, what they like, how they make buying decisions. Describe the primary problem(s) your organization, product or service will help them solve.

Factors Influencing Customer Decisions

Provide a brief profile of your target segment using at least three of the following categories:

• Geographic characteristics: e.g., location, region, population size or climate.
• Personal and demographic characteristics: e.g., age, gender, family size, family life stage, income, personality.
• Social and Psychological characteristics: e.g., culture, social class, lifestyle, motivation, attitudes, reference groups, beliefs.
• Situational characteristics: e.g., buying situation, level of involvement, market offerings, frequency of use, brand loyalty.
• B2B/organizational buying considerations: e.g., individual factors, organizational factors, business environment factors, types of complexity

Answer 1

The NIKE is an American company that deals in appeals, sportswear, and sports-related item like accessories, shoes, bags, etc. NIKE shares a big share of the market with his goodwill and the best quality product at economical cost for both customers and the company. To identify the customer much strategic decision is been taken from time to time to be in trend. Demographic segmentation is the most used for targeting customers especially based on the age which lies between 15-40 years as sportsperson lies in this age, the other factor is gender mostly 55% men and 45% female ( according to the survey). The main problem of this brand is a tough competition, competition is really high with Adidas, Steve Maidan, Puma. Reebok, etc. Some other issues are because of so many options available and fashion trends NIKE apparels are not in profit and even struggling.

The primary decision maker are mostly sportsperson who will be interested in sports-related items, an athlete from the age between 15-40 years. They share a niche market. Every sports person and athlete wants a cost-effective, reliable and most important comfortable accessories, shoes, and apparel while playing. If the company focuses on customer needs and requirements there research is always on how to satisfy their customers. So the NIKE is trying to achieve either by survey and feedback method, active customer care service. The buying decisions are based on brand loyalty, references or company tie-ups with the company. The main problem is competition, so to satisfy the customer and retain them should be the priority of the company. If the customer is happy the company can get progress and growth. Many similar products almost at the same price are available in the market so to capture the mind of the customer, the company needs to win their heart by providing best service and that is done by the comfortable products and as per customer requirements.

There are many factors influencing customer decision taste and preference, the income of the customers, brand loyalty, sponsorship, social references, the availability of the product, demand, and supply, outlet location, attitude towards the product and the company. Sometimes the approach of the company influence customer mind, therefore, some meaningful and intentional advertisement is done to convenience and attract customers.

To target customer, these categories are researched for better and efficient results-

Geographic characteristics- The NIKE strategy is to target people interested in sports and athletes so in many different countries like the U.S, Australia, U.A.E, Europe and many other countries are approached according to their regions, that is which country is more interested in which sports like the United States are interested in football and baseball so the strategy of product launching to the advertisement all are planned accordingly.

Demographic characteristics- This is one of the most important factor of the company to target customer especially based on age and gender, as sports person lie between 15-40 years and teens for their product. Even advertisement played by the company gives a message of footballers playing with teenagers to influence them for sports and the product. Without discrimination male and female products have huge variety although the male is being noticed to be the higher purchaser. The cost-effective product is another strategy to change the customers' mind and influence them so the income matters and the personality to retain the loyal customer is important.

Social and psychological characteristic-The company is trying to boost and motivate its customers, attract them through enthusiasm and sportive approach that if they will wear NIKE products they will be unbeatable so the psychological purpose is being tried to make a mindset of the customer. The second thing the people wearing them looks fit and fine, healthy so the customer tries to get the feel of it. The social factor is related to the celebrities doing its commercial ads to promote the brand, to influence a customer to follow their lifestyle by using this product, so the reference group creates a belief with positive word of mouth to use the product and increase the life status.

The company is implementing strategy and tactics to attract customer, it has a huge market share although it has some big competitive market. The NIKE is a brand with a clear vision of serving people, they not only produce a product that is good and comfortable to the customer but its processing and all activities are according to environmental concern.

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