Ch. 8 - Segmenting and Targeting Markets

Nike - Market Segmentation

Nike has been around for quite a while now actually dating all the way back to 1964 when it was one known as "Blue Ribbon Sports". Nike's initial target market started out as a side gig for Phil Knight and Bill Bowerman as they went around college to college selling running shoes to local track runners with their unique waffle iron design which was initially done by Bill Bowerman which he used to make with his wife's waffle iron. In time, Nike sprung into much bigger developing shoes for all sorts of sports from baseball to tennis, basketball, soccer, and even golf. Nike understood they had to tackle all sports to be the dominant brand in athletic sportswear which Nike has well done so. Nike's biggest sport would have to be basketball, whichever way you look at its where Nike build most of its popularity. Although, they do gain some credit for tennis and running but basketball is Nike's key sport. 

Nike's Basketball Introduction

When Nike jumped into basketball it was just another brand-making basketball shoe in competition with Adidas and converse, who was a great seller back in the days; Nike now owns converse. Nike signed Michael Jordan in 1984, releasing “The Air Jordan” which was banned by the NBA bringing in a huge amount of publicity. Michael Jordan was fined $5,000 for every game he wore the shoes which Nike paid for.

Air Jordan banned Ones the insole on the left shoe says "On September 15 1985 Nike created a revolutionary new basket ball shoe"The right shoe says "On October 18th 1985 they were thrown out of the game"

Nike now offers many basketball sneakers targeted at young teens with Nike's extensive reputation among the young generation. Nike manages to sell out of the good old Air Jordan's every month, kids buy these sneakers month after month after month and Nike continues to retro Jordan sneakers as long as they can. Nike recently released a special line of sneakers which Nike has recently started to do as tradition.

Nike joins Doernbecher Children's Hospital in order to release special sneakers designed by kids from the Doernbecher Hospital who survived an illness. Every year Nike includes a special Jordan Doernbecher shoe which is highly sought after. One of the most wanted shoe of the pack time and time again. Nike charges a little extra for these shoes but Nike donates 100% of the profits to Doernbecher Children's Hospital. These shoes are only released in Nike Stores only that means no Foot Lockers, No Modells, etc. This year only 16 Nike Store's received shipments of these shoes and as you would guess These shoes sold out but this time for a good cause.