Academic Master


Market Position and Segmentation


Marketing is a significant concept used to grow businesses. And therefore, this paper presents an analysis of an industry and a company on the marketing tools explored successful in the industry. It presents the analysis of the market segment and segmentation, target market of the company and the trend on the targeted market. In order to present a comprehensive report, it includes the positioning maps and the recommendation on how the company can improve its market share and performance in the dominant market, and a brief background of the company and the industry to provide knowledge on the performance of industry and the company as well.


The footwear industry has experienced tremendous growth within the last two decades. The industry has realized growth in sales within several firms registering improve performance. It has turned into AU 80 billion industry and therefore, creating employment opportunity for many young people worldwide. Tae-Soo (2013, p. 25) illustrated that the footwear industry is dominated by Adidas, Nike and Puma which are some of the oldest players in the industry. The footwear industry is always dominated by firms with innovative ideas which can change the market perspective through invention of new products which fit the cultural demand of customers. The major players like Puma, Nike, and Adidas have experienced a lot of change in the industry and growth as well over the last decade. This shows that the industry has been growth and industrial stakeholders are registering growth in profit, market share and revenue.

The competition is very stiff as well since there are several firms offering similar products and therefore, the survival of a company depends on its market strategy and its brand.

However, Nike is one of the major footwear companies which manufacture and sales sportswear worldwide. The company has a history of success and has been making profit from the industry. Though Nike had experienced challenges before, the company has had a growth and continues to realize growth in business across the world. Nike has a strong financial performance and a larger market share. Nike leads in the manufacturing and supplier of sportswear such as footwear, clothes, caps and also watches for various sporting activities. The business model of Nike is to put a lot of emphasis on its core competence which is to design, develop and marketing of its product to the global market.


Segmentation is a wider process of dividing the business market or consumers based on their preference, age, gender and culture. It helps in identifying the needs of a specific target to provide the services which the target need. Nike focus on athletics and other sports and it is the main market target and therefore, the market segmentation of Nike is youthful people aged between 17 to 45 years who are actively involved in sporting activities. It is also focus on both male and female and income as well. And therefore, the first segment market is corporate ready to spend huge amount in sportswear. It also focuses on middle income earners and upper income earners since the prices of Nike products are fairly affordable which gives the company a competitive advantage over its competitors in the market.

No/S Segment Market Description
1 Sex Male and female
2 Age bracket 17 years to 45 years
3 Income Middle and upper income earners
4 Organizations Corporate and companies
5 Culture Design based on regional culture

Table 1: Segment Target demographic

Target Market

The target market for Nike is the free runs. The market for free runs has been growing in the last years. Therefore, Nike is targeting women who practice or exercise in the morning and evening to lose weight and also to keep fit. Research has indicated that the number of women who run both in the morning and evening have grown by 45% in Australia and 55% in the United States and 41% in the United Kingdom. These two regions are the dominant market for Nike and since the demand of free runs are increasing in these three regions. Nike should put focus to utilize the untapped business growth potential (Carter, David, & Priest, 2016, p. 23). The market target is already passionate about running and building and therefore, there is already market for sneakers for free runs. A survey has also shown that besides sneakers for women, the rate at which men exercise has also increased and therefore, Nike enters into free runs sneakers is likely to tap into a huge market which is likely to grow its market share in the footwear industry.

Nike should also focus on manufacturing and distribution of baseball and rugby wears which the company has not been too focused about. The sporting activities of baseball and rugby are growing faster and investing in the activities will increase the revenue for the company.

No/S Market Description
1 Women demand for sneakers 45%
2 Men demand 35%
3 Kids under the age of 18 years 15%
4 Older people 10%

Table 2: Target market

Graph 1: target Market for Nike with its free runs Sneakers

Positioning Map

Positioning map is the process of differentiating the product of the company with what is already being offered by other competitors to the market. Sneakers for free run are unique footwear which Nike launched recently and it is differently from what being offered by competitors to the market. The sneaker is highly innovators and ready to run. It is light and durable compared to others which are already in the market (Mongay, 2014). The test conducted by the Quality Assurance department revealed that sneakers for free runs can last longer than what competitors are offering the market and therefore, it is high likely to create a market itch within the first six months. The sneakers are of high quality and prices are also affordable since the price is based on the market and the quality of the product.

The products are of high quality and high price since they last longer than what it is in the market and it is durable. The sneakers are technological designed to last for a longer time and provide runners with the comfort which they need.


Figure 1: Positioning map for Nike Sneakers

  1. Recommendation

It is recommended for the Nike to focus on free runs as its new target market. Studies have established that many women are doing exercise and they need sneakers which are light and durable and therefore, focusing on the free run would give the company advantage in the market hence increase its market shares and revenue. A research conducted illustrated that besides sneakers being used by women for free runs in the morning hours and evening they are also used in several physical fitness centers across the country and therefore, venturing into the market would be a great advantage for Nike. It will increase its market share, profit and also and overall revenue.


Carter, S., David, S., & Priest, J. 2016. Consumer Behaviour . Edinburgh : Pearson.

Mongay, J. 2014. Strategic Marketing. A literature review on definitions, concepts and

boundaries. Autonomous University of Barcelona, SBS Swiss Business School , 2-37.

Ozanian, M. 2010. Nike’s New Business Model. , 2-13.

Tae-Soo, J. 2013. Athletic Footwear Warfare:Surviving in an Oligopoly . Research Fellow

Samsung Economic Research Institute , 2-10.



Image result

Source: Nike Financial Report 2017/2018

  1. Audit report



Calculate Your Order

Standard price





Dragons Characteristics

Species are groups of living organisms in which individuals have the same characteristics and are capable of exchanging genes and interbreeding. Dragon has been chosen

Read More »
Pop-up Message