Nike, the company behind the famous swoosh logo and the classic “Just do it” ad campaign, has long been a major force in marketing athletic footwear, clothing, and equipment. It targets professionals and other consumers with innovative shoes and apparel for running, basketball, soccer, tennis, skateboarding, football, and lacrosse, among other sports. In recent years, the Oregon-based company’s annual sales have increased beyond $30 billion as it progresses toward its 2022 goal of achieving annual sales of $50 billion. In this high-stakes race, Nike must also stay ahead of Adidas, Puma, and other competitors seeking to capture a higher share of the market for athletic footwear.

Careful targeting is a key element in Nike’s strategy for marketing shoes. Consider the company’s Zoom Vapor fly 4%, a high-performance sneaker designed to help marathon runners speed ahead through 26.2 miles. This special shoe incorporates lightweight foam for effective cushioning and a shaped carbon-fiber insert for putting spring in every step, mile after mile. Nike invested heavily in developing and testing the advanced components of this product, which it promotes as being capable of boosting a racer’s efficiency by as much as four percent.

Questions for Discussion

1. When Nike segments the market for athletic shoes, what types of variables is it using? Why are these variables appropriate

2. Is Nike using a differentiated, an undifferentiated, or a concentrated strategy for targeting buyers of athletic shoes? Explain your answer

3. How should Nike assess competitors that market to the segment of consumers who buy high-performance running shoes such as the Zoom Vaporfly