Nike's sporty community embodies the stylish athletic individual. The brand is known for being minimal, trendy, and iconic. Their basic yet classic designs, paired with collaborations from other designers such as Jaquemus, attract a high calibre of men and women whose identities reflect confidence and enthusiasm. Nike primarily targets a western audience, more precisely an American audience. As of 2022, there are 1299 Nike stores and brand factories worldwide, with 553 of them in the United States (Statista 2022).
Nike had a good concept about who they intended their target audience to be. The brand is able to target and approach both sides of the demographic using the same strategy because it has a target audience of both male and female between the ages of 11 and 55 but put a greater emphasis on teens to cultivate long-term customers (Wells, 2022). While one segment of the market is very young, Nike can develop brand loyalty while also instilling a message in them while creating campaigns. Nike ideally wants to target the middle of the demographic since they are the ones who can raise awareness by protesting The Black Lives Matter movement. Seven-in-ten U.S. teens say they at least somewhat support the Black Lives Matter movement, including 31% of teenagers who strongly support it (Hurst, 2022).
According to Nike's chief marketing officer, "the key to excellent branding is developing an emotional connection between the company and customers." (Hoffman, 2022) Nike's goal has always been to make "people believe that even their most audacious dreams are possible". The majority of Nike's advertisements do not openly focus on a product; the Nike target audience responds most effectively to emotive advertising. This strategy contributes to the creation of a brand image that meets the aspirations of Nike customers, thereby improving brand loyalty, engagement, and sales.
According to surveys, Generation Z has four basic behaviours, all of which are linked to one element: the pursuit of the truth. Because this generation values individual expression and avoids labels, Nike campaigns are perfectly tailored to this population. Generation Z makes decisions and interacts with institutions in an analytical and pragmatic manner. That is why Gen Z is indeed the "True Gen." Such behaviours shape how Gen Z perceives consumption and their interactions with brands. (Francis and Hoefel, 2018). According to Vizard (2018), Nike has achieved favourable buzz and influence from an audience of younger customers, those who are more left wing, and those from the BAME community by including Kaepernick in its campaign. According to a poll, these individuals are also more likely to be Nike consumers.
Nike should be aware of three implications for this generation: consumption as a means of access rather than possession, consumption as a statement of individual identity, and consumption as an ethical concern. This generational transition, when combined with technological improvements, is altering the consumer scene in a way that cuts across all socioeconomic levels and extends beyond Generation Z, infiltrating the entire demographic pyramid (Francis and Hoefel, 2018). The opportunities that are currently available to Nike are both transformative and daunting. And so, Nike must consider how they give value to customers, rebalance scale and mass production versus customisation, and, more than ever, implement what they preach across the company.
Even though Nike is a multinational business, it is heavily reliant on the North American market because the majority of their sales are made by selling footwear to wholesale customers in North America, and in 2022 they sold over $12 million worth of footwear to the US market alone (Statista, 2022). Even while this is beneficial to the company as a whole, the US demographic is extremely impacted and opinionated by political movements, which is why consumers throughout America began burning their Nike footwear in protest of Colin Kaepernick's Nike short film.
Young, dynamic and motivational are three words that can be used to sum up the majority of Nike’s target audience, or at least the target audience Nike wants. With this comes benefits of an influential consumer base, however Nike is limited due to the differing political and social opinions of their audience, causing a divide between the audiences.
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References
1. Hoffman, G (2022) ‘Emotion by Design: Creative Leadership Principles from the Genius of Nike’s Marketing and Branding’ Publishers Weekly, 269(4), pp. 46.
2. Francis, T, Hoefel, F. (2018) ''True Gen': Generation Z and its implications for companies', McKinsey & Company. Available at: https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies (Accessed: 20 November 2022).
3.Hurst, K. (2022) 'U.S. teens are more likely than adults to support the Black Lives Matter movement' Pew Research Center. Available at: https://www.pewresearch.org/fact-tank/2022/06/15/u-s-teens-are-more-likely-than-adults-to-support-the-black-lives-matter-movement/ (Accessed: 23 November 2022).
4. Statista (2022) Number of Nike Stores globally 2009-2022. Available at: https://www.statista.com/statistics/250287/total-number-of-nike-retail-stores-worldwide/ (Accessed: 19 November 2022).
5. Statista (2022) Nike's North American revenue from the fiscal years of 2009 to 2022, by segment. Available at: https://www.statista.com/statistics/241706/nikes-us-sales-by-product-category-since-2007/ (Accessed: 20 November 2022).
6. Vizard, S. (2018) 'Consumers split over impact of Nike's Colin Kaepernick campaign', Marketing Week, 12 September. Available at: https://www.marketingweek.com/consumers-split-over-impact-of-nikes-colin-kaepernick-campaign/ (Accessed: 21 November 2022).
6. Wells, T. (2022) 'What Businesses Can Learn From Nike’s Positioning Segmentation and Targeting in Marketing'Taylor Wells. Available at: https://taylorwells.com.au/positioning-segmentation-and-targeting-in-marketing/ (Accessed: 22 November 2022).
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