INDIVIDUAL ASSIGNMENT

MKT 201

Consumer behavior

Instructor: Tran dieu thuy

Nguyen Quang Anh | FPT University | Marketing Major | March 18, 2021
 TABLE OF CONTENTS
I.Introduction

1.Short profile about Nike

2.Target customer and target market

II.Body part

1.Definition of culture and related factors

2.Definition of consumer behaviour

3.Culture of Viet Nam

4.Consumer behaviour in purchasing Nike’s in Viet Nam

5.Analyse the impact of culture on consumer behaviour in Viet Nam

III.Conclusion

IV.References

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 I.Introduction
1.Short profile about

Nike is the world’s number one global supplier of sports shoes, apparel and
gear.Founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman
and Phil Knight, then officially as Nike on May 30, 1971.It employs more
than 44,000 people worldwide and in 2014 the brand alone was valued as $19
billion (€17,5 billion), making it the most valuable brand between sports
businesses.Founded by Bill Bowerman and Phil Knight on January 25 1964, as
Blue Ribbon Sports, the company became officially Nike, Inc. on May 30 1971.
The company was named after the Greek goddess of victory, Nike.

Apart from its own brand, Nike market its products under Nike Pro,
Nike+, Nike Golf, Nike Blazers, Air Jordan, Air Max and other as well as
subsidiaries including brands  Jordan, Hurley Int. and Converse.

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Nike sponsors many high-profile athletes and sports teams around the
world, with the highly recognized trademarks of “Just Do It” and the
Swoosh logo.

2.Target customer and target market

Customers segmentation is a factor used by Nike to target individuals

according to their age, life-cycle stage, gender, occupation, and generation.
Although with apparel and sports the market can be broad, for the most
part Nike primarily targets consumers who are between the ages of 15-40.
The company caters to both men and women athletes equally, and is
placing an increasing focus on tweens and teens to build long-term brand
loyalty. Nike addresses this segment by deploying marketing campaigns
about young adults striving to be like their athlete idols. For example, right
before the 2014 World Cup Nike developed a video starring important Nike
sponsored soccer athletes with teenage soccer players. Nike has recently
launched a variety of women’s lines to tap into the fast growing women’s
segment. Currently only 20% of Nike’s revenues are based on sales of
products targeted at women, but this number is expected to grow
significantly in the coming years. Nike does not target consumers based on
race, ethnicity, religion or social class. However, given the high-price of the
company’s products, it does use the income and education as targeting
variables.

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Nike's target audience is for people who regularly exercise and for those
who ill wear for fashion trend as it goes well with modern-day clothing.
Nike has classified their target customers mainly into three product groups,
men's products, women's products and kid's products. For men's products,
they have twelve different categories for shoes that consist of lifestyle,
running, gym & training, football, American football, basketball, tennis,
golf, crickets, baseball & softball, skateboarding, and athletics. For women
products, unlike men's products, Nike provide different options for women
as Nike understands that women don't really play American football
therefore they replace it with yoga. For kids' product, Nike mainly target on
young athlete like how their mission statements states bring inspirations to
every athlete. Besides these, Nike provides their customers with variety of
colors for the shoes so that their targeted customers can find the pair of
shoes that suits them the best. Moreover, people in the society are
achieving healthy lifestyle, they start to exercise more and eat healthy,
people tend to jog or do sports nowadays. Nike notices the change and
produce items that satisfied the needs of their customer, for example, they
produce more comfortable clothing and footwear that able to give
customers an enjoyable exercise experience would prefer the items sold in
Nike.

II.BODY PART

1.Definition of culture and related factors

Culture includes abstract ideas such as values and ethics and material
objects like cars and clothing. It is the shared meaning of our rituals, norms,
and traditions among members of a society or organization. The effects of
culture on consumer behavior can be so powerful that it’s sometimes
difficult to grasp the importance and relevance of culture.

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Nike Inc.’s organizational culture supports business resilience and
capability. Organizational culture is the combination of traditions, habits,
values, and behavioral expectations among employees. Nike’s workers are
given a set of instructions, rules and expectations on how to do their jobs,
with consideration for their relations with customers and other employees.
This approach ensures that the company maintains its corporate culture,
which partly contributes to the success of the business. As one of the giants
in the global athletic shoe, apparel and equipment market, Nike Inc.
continues its policies and strategies to promote an organizational culture
that reinforces business resilience and competence.

2.Definition of customer behaviour.

Consumer behavior is the study of how individual customers, groups or

organizations select, buy, use, and dispose ideas, goods, and services to
satisfy their needs and wants. It refers to the actions of the consumers in
the marketplace and the underlying motives for those actions.

The pre- and post-purchase decision-making process of a customer, which

gives consumers a better understanding of their lives, products and services
to help change their lives for the better.Marketers expect that by
understanding what causes the consumers to buy particular goods and
services, they will be able to determine-which products are needed in the
marketplace, which are obsolete, and how best to present the goods to the
consumers.

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3.Culture of Vietnam.

Vietnam is a South East Asia country.Vietnam has gone through countless

historical periods associated with specific development stages of the
cultural identity, special customs and habits of Vietnamese costumes in
each period, creating its very own mark, especially the woman's outfit.But
nowadays, Vietnam is developing rapidly so traditional costumes are
gradually disappearing and replaced by new costumes and styles from
different brands around the world.Nike is also the most popular brand in
Vietnam.

4.Consumer behaviour in purchasing Nike’s in Viet Nam.

In an integrated and developing economy, the need for people to work

vigorously and continuously move to integrate with modern life is
increasingly high. Since then, the needs of entertainment and sports are
also focused on to protect and improve health. launched a variety of sports
shoes with good quality, beautiful designs, and prices suitable for the
average and fair income of Vietnamese people.

Nowadays, young people are increasingly active and always like to try new
trends in many fields. Especially in the fashion field, the combination of
clothes with sneaker shoes has been daring and diversely applied by young
people. Here are some of the current dress styles that will make you
fascinated and extremely excited. Especially with dynamic young people
who are always searching, exploring and always want to try with different
new styles. That is why many unique fashion trends have emerged.
However, not all fashion styles are well received and can survive a strong
fashion trend that always has the rule of elimination every day.

5.Analyse the impact of culture on consumer behaviour in Viet Nam.

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- The concept of belief: this culture is not just limited to the traditions and
customs, it also includes consumers’ thinking style, likes, dislike, language,
customs, tools, feelings, and attitudes. The consumer also has different
beliefs that he projects on to his choices when purchasing a product.

-A Look at Consumer Behavior:Consumer behavior principally relies upon

cultural elements that involve equal and united operating systems, tools,
norms, unstated assumptions and values, as well as standards for believing,
perceiving, communicating, and evaluating.

On the other hand, Vietnamese consumers with unstable income will tend
to use the brand's products but fake products.Counterfeiting famous
brands will make that brand lose customers, make users misunderstand,
turn away from the brand and the reputation of the brand will also
decrease a few parts.Fake products goods are often cheaper than the real
ones, that is also the reason why people rush to buy fake goods, making
genuine products with quality, with clear sources of slump, decline in
revenue.

IV.CONCLUSION
In summary, understanding consumer behavior is one of the key factors in
a product's success.Besides, culture has the influence on people awareness
and consumer behavior. Consumers will likely choose products from
famous brands which have popularity among buyers. Knowing the influence
of culture to consumer behavior, marketers can increase acceptance
towards culture where the product was made as well as encourage
consumers to believe quality of product.

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For Vietnamese users, Nike is gradually gaining trust and prioritizing the
selection of products. Currently, compared to the cultural development and
relatively stable income of users, Nike will be favored in the land. Because
of its durability, quality and price, I personally think Nike will thrive here in
the future.

REFERENCE
1.NIKE, Inc. - Company Profile, Information, Business Description, History, Background Information
on NIKE, Inc.

https://www.referenceforbusiness.com/history2/99/NIKE-Inc.html

2.Nike Inc. Organizational Culture Characteristics: An Analysis

http://panmore.com/nike-inc-organizational-culture-characteristics-analysis

3.https://marketrealist.com/2019/10/nikes-target-markets-everything-you-need-to-know

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