Product Differentiation at Nike

Ways Nike Differentiates Its Products

The athletic apparel market is one that is competitive and highly dynamic.  Products must be distinct, bleeding edge and top-of-line for any firm to have a chance at grabbing a hold of any competitive advantage more less sustaining one.  Nike, being the world leader in this market, takes these customer perceptions to heart and continually produces products that separate itself from the pack.

The product differentiation attributes that Nike pays great attention to are the uncanny product features and the timing of introducing their products to market.  Creating new technologies in material and designs that are continually updated to reflect consumer preferences create a niche that others try to copy but never can sustain Nike's pace.  Plus Nike always seems to be ahead of the curve in introducing their newest products just as the market begins to crave them.  New products like the recently released Flyknit shoes that blend a new knitted pattern of yarn and fabric into a lightweight, breathable running shoe just as soon as summer starts creeping into the public's psyche is a good example.

Another big part of Nike's product differentiation strategy is its relationships with its customers.  Being the worldwide leader of athletic textiles for the better part of half century has given Nike a sort of "high ground" in the market.  Customers feel that Nike's reputation in athletics is somewhat superior over all others and by default pick their products more often than not just because of this.  Also Nike is well known for their great marketing techniques with many of the world's most well known athletes serving as spokes models, witty ads and commercials, and the "Just Do It" slogan that is synonymous with the brand.  Additionally, Nike reaches out to the consumers with product customization offerings to further offer a different product experience as well; i.e. the NikeID brands of clothing, equipment and footwear that allow customers to modify the colors, materials and even monogram their products however they see fit. 

Not to be overlooked, Nike engages in many linkages with other firms and has a diverse product mix.  The Nike brand is seen around the world through the linkages they have with most every sport on the planet.  The Nike Swoosh is on everything from NCAA college footballs to Olympic sports uniforms pushing the brand out there into every sport's athletes' or wannabe athletes' brains.  Nike even cross links with non-athletic companies to implement new avenues for their consumer, for instance with the Nike+ run tracking software made in conjunction with Apple's iPod and iPhone.  As one can imagine, more often than not Nike will not only be on one "part" of those performing athletes, but more likely that person will be outfitted in a complete Nike product mix from head to toe.  Consumers will find that they like one product from Nike, say shoes, and then see another offering, like sunglasses, and automatically correlate the former's high performance to the latter rather than pursue an unknown brand.

     

                                            Nike ID                                                                                    Nike+

Nike most definitely has a sustained competitive advantage with these strategies in place and will continue to be an innovative market leader as long as they continue to utilize them.