An Overview of Segmentation, Targeting and Positioning Strategy and the Marketing

Activities of Nike, Adidas, Puma and Reebok.

 Table of Contents

1.0 Introduction ................................................................................................................................... 3

1.1 Nike, Adidas, Puma and Reebok Sportswear Brands ................................................................... 3
2.0 Segmentation, Targeting and Positioning and their roles. ............................................................ 4
2.1 Comparison and Differences of the STP strategy of Nike, Adidas, Puma and Reebok brands. ... 5
2.2 Needs and Wants derived from the buyers and their Buying Decision ........................................ 6
2.3 Primary Target Market of Nike, Adidas, Puma and Reebok Brands and Its Market Segmentation
Variables ............................................................................................................................................. 7
2.4 A perceptual map of Brand Positioning of Nike, Adidas, Puma and Reebok............................... 8
3.1 Importance and role of the marketing mix tools ........................................................................... 9
3.2 Comparison of the 4 Nike, Adidas, Puma and Reebok brands in terms of Product, Price and
Place. ................................................................................................................................................... 9
4.0. Conclusion ................................................................................................................................. 10
5.0 References ................................................................................................................................... 11
1.0 Introduction
In 1962, Nike originally known as Blue Ribbon Sports entered the sport market in USA
focusing on providing the ultimate sportswear for the athletes. This company produces high
quality sport materials for the personified individuals and was planned to manufacture
innovative designed apparels, shoes Nike Golf, Nike Pro, Nike+, Air Jordan, and Nike
Skateboarding including Hurley International, Cole Haan, Umbro and Converse subsidiaries
even watches for the all sportspersons in the world by the founder Philip Knight.
Nonetheless, Adidas is running several brand line extensions under the products of.
Furthermore, Puma has the vision of “Pyramid of Influence”, so these products and its several
brands are not for all. Thus Reebok has segmented, targeted and positioned every single
brands and products in its own spiritual way of the Marketing strategy. The structure of the
study is based on the STP strategies used by the Nike, Adidas, Puma and Reebok brands
are critically reflected by the author

1.1 Nike, Adidas, Puma and Reebok Sportswear Brands

In 1985, Nike had signed up with the famous rookie basketball player Micheal Jordan as a
spokesperson. Jordan was the first comer of the basketball game and he turns his performance
at the optimum level after signing with the Nike. At the very first year Nike has gained more
than 100 million US Dollars by this product and its brands. (Lancaster and Massingham
2010)
As a marketing executive ofNike the author has reviewedhere about the marketing activities
employed by Nike, Adidas, Puma and Reebok products and it associated brands. In this
section the Author has evaluated about the 4 Nike, Adidas, Puma and Reebok Sportswear
Shoes Brands. (Lancaster and Massingham 2010)
These are:
i. Nike MELO M11
ii. Adidas CP3.VIII
iii. Puma Super.Fly 3
iv. Reebok AJ XX9
2.0 Segmentation, Targeting and Positioning and their roles.
Marketers’ start from market segmentation of which they want to add value offerings for the
customers. Market Segmentation is process of the dividing the markets into the distinct
groups of the people or buyers on the basis of the different needs, characteristics and
consumer behaviours. (Dewan & Sudarshan, 2010) However, in this process, marketers
creates several market segments to justify which market segment could bring a lot of profit
and satisfaction. In order to that they target one or more segments to run the business or
marketing plan by analysing all the market segments and its growth and profitability.
Afterwards, by analysing the customers’ behaviour, preferences, buying pattern and residuals,
marketers position their products up to the optimum level which might satisfy them and build
long term profitable customer relationship and establishes brands in the heart of the
customers. (Dewan & Sudarshan, 2010)
2.1 Comparison and Differences of the STP strategy of Nike, Adidas, Puma and
Reebok brands.
Here is the details about how Nike, Adidas, Puma and Reebok has segmented, targeted and
positioned of four Jordan sportswear brands.
Marketing Nike MELO M11 Adidas CP3.VIII Puma Super Fly 3 Reebok AJ XX9
Strategies

Market Segmented for Segmented for the Designed and Lightweight

Segmentation everyday fast moving players Manufactured for Shoes for Jumps.
practicing in the especially for the hyper jump in a Suitable for the
basketball courts. attacking players. basketball field. average classes of
Suitable for pro basketball
players. players.

Market Fresher, New Leading Basketball Often targeted to Average players

Targeting Teams and Clubs. Players. midfielders of the and teams.
teams want to
score from the
distance
shooting.

Market Energy Webbing fit Explosive power Webbing fit

Positioning optimization. System. of jumping. System.
Advanced Cutting-edge Rim, bounce on Webbed straps.
compression. technology. the boards. Superior
High strung fibres Introduction of Adding of the lift Lockdown for
flex. FlightPlate system. on every jump easy standing.
Superior Energy shots. Wight reduction
responsiveness. optimization. Upper and lower technology.
Superior added Upper and lower moulded collar Upper and lower
support. moulded collar for for enhanced moulded collar
Superior enhanced ankle ankle support. for enhanced
lockdown. support. ankle support.
Energy
Conserving.
Upper and lower
moulded collar for
enhanced ankle
support.

Source: (Dewan & Sudarshan, 2010)

2.2 Needs and Wants derived from the buyers and their Buying Decision
Nike, Adidas, Puma and Reebok are the best brands for the basketball players around the
world. Though its sphere is not lucrative in Asia. Moreover, the buyers are only limited to
Central Europe and United States. Needs are feeling deprivation of something and it is the
fundamental part of human make up. According to this playing basketball is the general need
of the all players in United States and Central Europe and wants are the requirements of the
good materials and instruments for doing so. In an order to that buying these peripherals are
the demands of the basketball players where they can have the motivation of the great players
of NBA and the rest of the world. Here in the following these are the basic motivators for
specifically basketball players which can be very influential for them to buy the new products
of the Nike, Adidas, Puma and Reebok brands. (Glynn and Woodside 2012)
Buying Decisions Motivators and Market Offerings (Glynn and Woodside 2012):
i. Products: Offering superior sportswear which have very much energy conserving,
optimization with advanced compression and high strung fibres flex design. Superior
responsiveness with added support for ankles. Introducing Flight Plate
systemtechnology with webbing fit System and straps. Wight reduction technology is
also added for superior performance.
ii. Services: Official one year warranty with an opportunity to meet famous NBA
players.
iii. Information: All information is detailed on the Nike, Adidas, Puma and Reebok
Website.
2.3 Primary Target Market of Nike, Adidas, Puma and Reebok Brands and Its Market
Segmentation Variables
Primary target market is paramount to draw the effective Marketing Strategies specifically to
meet the necessity of the people. Nike, Adidas, Puma and Reebok has targeted primarily the
basketball players by offering exquisite sportswear for fresher, new teams and basketball
clubs and basketball players. It is evident that Market Segmentation of Nike, Adidas, Puma
and Reebok are planned for everyday practicing in the basketball court, segmented for the
fast moving players especially for the attacking players segmented for hyper jumping in a
basketball field. (Glynn and Woodside 2012)
Primary Target Market of 4 Nike, Adidas, Puma and Reebok Brands:
1. Nike MELO M11: Primary target is basically Fresher also targeted for New Teams
and Clubs.
2. Adidas CP3.VIII: Primary target ispro basketball players.
3. Puma Super Fly 3:Primarily targeted to world class midfielders of the teams want to
score from the distance shooting
4. Reebok AJ XX9: Targeted for regular players and teams.

Market Segmentation Variables for Nike, Adidas, Puma and Reebok:

These variables are identified by the author which were selected for the market segmentation
of Nike, Adidas, Puma and Reebok (Glynn and Woodside 2012):
i. Regular Practice.
ii. Fast moving and attacking players.
iii. Ease of jumping
iv. Short Players
v. Running Balance
vi. Reduction of Weight
vii. Durability
Market Segmentation is created by the marketers observing the basic needs and wants of the
people. Observing the desire and expectations of the basketball players, Nike, Adidas, Puma
and Reebok have segmented their sportswear market by dint of the durable products used for
the regular practicing in the basketball court yard for this reason Nike has segmented for
everyday practicing in the basketball courts and launched Nike MELO M11. (Aaker and
McLoughlin 2009)
Sometimes fast moving and attacking players slip on the court and that is reason for this Nike
has segmented for the especially for the attacking players and invented Adidas CP3.VIII.
Jumping is needed to hit the best score which is why Puma Super. Fly 3 was designed and
manufactured for hyper jumping in a basketball field and this brand is suitable for pro
players. Sportswear with many feature are not lightweight. To get the competitive advantage,
another market segmentation is created for the average quality basketball players. Therefore,
marketers innovated lightweight Reebok AJ XX9.

2.4 A perceptual map of Brand Positioning of Nike, Adidas, Puma and Reebok

(Source: Author’s own constructed)

It is evident that Nike is the market leader and Adidas is in the 2nd position in terms of high quality
products and high prices. Puma is reducing their product prices to beat the Adidas. Lastly, Reebok has
their product quality but it is sufficient to beat the competitors. (Little and Marandi 2003)
3.1 Importance and role of the marketing mix tools
Different brands and their different marketing mix strategies are seen in the different
companies. Marketers need to initiate marketing mix strategies more tactically which will
both satisfy the customers and the company itself. Marketing mixes should be properly
articulated, defined and executed in terms of its four major mixing tools stated as pricing,
promoting, Placing and product developing and maintaining. (Jayachandran 2004)
Marketing mixes should be used by relating the differentiation strategies in taking mind of
the marketers. Marketers would not have to be forgotten about his main differentiations of the
products. They should focus to use their product quality, features and specification in their
promotional campaigns to make their products popular to their target customers. Therefore,
when pricing and promoting a product, social acceptability, ethics and social responsibilities
are should be concerned in before planning both traditional and non-traditional promotional
campaign by the marketers. It is not mandatory to use all the types of both several direct or
indirect channels rather marketers should use their utmost effort the capture their target
customers to select the suitable distribution strategy by which they can attract their desired
customers in a very effective and efficient way. (Little and Marandi 2003)

3.2 Comparison of the 4 Nike, Adidas, Puma and Reebok brands in terms of Product,
Price and Place.

In order to compare the marketing mix of the products of Nike, Adidas, Puma and Reebok, a
comparative analysis of the product, price and place is needed to evaluate the marketing mix
strategy of Nike, Adidas, Puma and Reebok more accurately. (Zimmerman and Blythe 2013)
Here, 4Ps for each brand is described as following:

Product:
Nike MELO M11: Energy optimization, advanced compression, superior responsiveness and
added support. Adidas CP3.VIII: Superior lockdown and energy Conserving and cutting-
edge technology. Puma Super. Fly 3: Introduction of Flight Plate system, explosive power
of jumping and rim, bounce on the boards. Reebok AJ XX9: Lockdown for easy standing
and weight reduction technology. Each of these products qualities are unique to the others in
terms of both features and specifications of the sportswear.
Price:
Nike MELO M11: Range= 95- 270£, Adidas CP3.VIII: 75-260£, Puma Super. Fly 3: 45-
160£ and Reebok AJ XX9: 35-110£. The main pricing strategies are international pricing and
product line pricing are used in these brands. Market penetration pricing strategy is used for
these new brands of Nike, Adidas, Puma and Reebok. Here, these pricing are fixed for
maintaining the differences between the products design, features and specifications.
Place:
Nike, Adidas, Puma and Reebok all occupies almost same selective retail distribution strategy
as a distribution network besides they use online distribution methods by their own websites:
Official Nike, Adidas, Puma and Reebok Website.
Promotion:
Nike and Adidas more emphasises on their television ads, Puma and Reebok give
importance more on their print adverts.

4.0. Conclusion
At the end it can be said that marketing mix start from market segmentation of which they
want to add value offerings for the customers in which marketers creates several market
segments to enter which market segment could bring a lot of profit and satisfaction. In order
to that they target one or more segments. Nike, Adidas, Puma and Reebok are world class
sportswear brands have been developed their every crucial processes of market segmentation,
targeting, positioning and marketing mix strategies more thoughtfully than other sportswear
competitors.
5.0 References
Lancaster, G. and Massingham, L. (2010) "Essentials of Marketing Management", Routledge,
Business & Economics, page: 52-53.

Dewan and Sudarshan (2010) "International Marketing Management", Discovery Publishing

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Puma, (2010), “Puma Marketing and global competittions”, available at

http://www.puma.com/branding/report [Accessed 9th June, 2015]
Glynn, Mark S. and Woodside Arch G. (2012), "Business-to-business Marketing
Management: Strategies, Cases and Solutions", Emerald Group Publishing, Business &
Economics, page: 55.

Glowik, M. and Smyczek, S. (2011), "International Marketing Management: Strategies,

Concepts and Cases in Europe", Oldenbourg Verlag, Business & Economics, page: 25.

Adidas, (2009), “Adidas marketing essentials and successes”, available at

http://www.adidas.com/branding/report [Accessed 11th June, 2015]
A. Aaker, D. and McLoughlin, D. (2009), "Strategic Market Management: Global
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Jayachandran, S. (2004), "Marketing Management", Excel Books India, Marketing, page: 22.

Little, E. and Marandi, E. (2003), "Relationship Marketing Management", Cengage Learning

EMEA, Business & Economics, pages: 36.

Alan Zimmerman, A. and Blythe, J. (2013), "Business to Business Marketing Management:

A Global Perspective", Routledge, Business & Economics, page: 52.
Nike, (2013), “Nike Branding and Opportunities”, available at
th
http://www.nike.com/branding/report [Accessed 12 June, 2015]