Nike, one of the most famous brands in the sporting businesses, valued at 19 billion USD as of 2014. But how do they do it? Nike is one of the leading companies when it comes to manufacturing and development of sports apparel, accessories and equipment. The brand has been racking up extremely high sales and has an unbelievably huge customer base around the world.
Recently Nike came up with a catchy music number called the Da Da Ding that includes Deepika Padukone, an Indian film star along with several Indian women and female athletes. The video shows the women working out and going through their daily grind or fitness regimes. It was made as a motivational video for women of India who are a bit laid back when it comes to fitness. Along with the video, Nike also introduced their training club for women called the NTC that operates on weekends. It is a free of cost initiative by Nike to promote fitness for women and is held at various venues. Clubbed with the NTC, the company has also launched the Nike Running Club in India where in running enthusiasts come together and get involved in running drills and get guidance from some top coaches. All these things have somehow led to an increasing need of taking fitness seriously within the people and have indirectly built a higher need for Nike goods that equip the athletes as they participate in these sessions. Nike has always partnered for such projects and has managed to be successful in getting the people to engage in various activities which have proved to be an additional advantage for the brand in some way or the other.
The factors affecting the Consumer Behaviour
Cultural Factors – Culture and society is an extremely important part that influences a consumer’s behaviour. Companies have to make sure that the product they manufacture will be accepted by certain societies that are targeted at for being the consumers. For example, Nike operates all over the world. When it comes to producing fitness apparel for women, the choice of clothing differs from country to country. In India, women wouldn’t prefer clothing that is more revealing in contrary to the women in the West. Accordingly, Nike makes sure that the designing of goods is done by considering the region and place. Also, when it comes to certain sport equipment, Nike has to classify their production according to the cultural and sporting backgrounds. In the USA, Nike is a top brand for football spikes but they wouldn’t supply the same ones in India because of the non-existence of the sport in the country. It will be vice-versa when it comes to cricketing goods.
Social Factors – The first thing that comes to mind when you talk about social factors will be family. The lifestyle of a family is highly responsible for the arousal of need and purchase of a particular product. A parent passes on the legacy to their child. If we see our parents buy certain products of a certain brand, we are most likely to follow the trend. If a certain member from a family is loyal to a brand and look to use the same brand for their kids, there will be brand recognition and recall for the child when he/she grows up and they will tend to consume the similar product. In addition to this, certain reference and membership groups aid in producing a need. For instance, as mentioned earlier, Nike has set up various clubs for the people. In these places, the attendants are instructed to promote the company’s products to the people which will ultimately lead to the consumer getting influenced to buy a certain product of that brand.
Personal Factors – Age, lifestyle, personal choices, economic situation etc. are the personal factors that could affect consumer behaviour. Nike fulfils the needs of individuals of every age group. Alongside that, they have products ranging from a low price to a high price depending on quality which makes the goods available from people of all economic backgrounds. The discounts and coupons given by Nike aid in promoting purchase. Nike also has options of customised boots and clothes which could interest the consumer and eventually lead to a purchase.
Physiological Factors – A company needs to constantly make efforts to motivate their potential customers into making a purchase. For this, they need to make sure their company’s name is always in the light as to form brand recognition. With a humongous amount of advertisements, Nike fulfils this criterion. Maximum customer satisfaction and great after-sales service is what makes Nike so elite. This leads to a positive image of the brand in the consumer’s mind and promotes further consumption. Psychological Factors are the ones which affect the consumer’s behaviour on a very large basis and Nike excels in providing the perfect services.
In conclusion, you could say that Nike has been involved in putting constant efforts to arouse a need for their products and promote purchase which has eventually led to the success of the company.
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Nike News, (2016). Da Da Ding. Nike, Inc. http://news.nike.com/news/da-da-ding [Accessed on: 30th July 2016].
Perreau, F., (2015). The 5 stages of Consumer Buying Decision Process. The Consumer Factor. http://theconsumerfactor.com/en/5-stages-consumer-buying-decision-process/ [Accessed on: 29th July 2016].
Shah, A., (2010). Factors Affecting Consumer Behavior. Ezine Articles. http://ezinearticles.com/?Factors-Affecting-Consumer-Behavior&id=4602848 [Accessed on: 30th July 2016].
IIFL, (2016). Nike launches Nike Run Club in Mumbai. Indian Infoline. http://www.indiainfoline.com/article/news-sector-retail/nike-launches-nike-run-club-in-mumbai-113092902430_1.html [Accessed on 29th July 2016].