Nike Target Markets

The target market for the headscarves consists of Muslim women. In general, the product will appeal mostly to those aged 12-40, as that is the prime demographic for athletic wear, and as well that demographic may be more liberal with respect to things like exercise. It is important to note that there are significant differences between types of Muslims, so there is no one universal headscarf style that will appeal to all groups, or even be acceptable to all groups. A variety of designs will be needed in order to meet the needs of the target market. The target market is otherwise the same as for Nike's regular client base. This means younger, fairly well-educated, in the case of Muslims more liberal, and with a reasonable income that allows them to purchase Nike's premium-priced products.

The market is a niche market. In the United States, there are approximately 1.9 million Muslims, or around 950,000 Muslim women (CIA World Factbook, 2015). In the UK, 2.8 million; in Canada 1.1 million. In the EU, there are approximately 10.2 million, including those in the UK. If women are 50% of these populations, there are 6.6 million Muslim women. The market is arguably bigger in Muslim majority countries, in particular ones that are more liberal such as Malaysia or Turkey. Thus the market is fairly scattered around the world, and generally small. But this is also a market that is not very well served, and there are opportunities with respect to sponsorship of Muslim female athletes, many of whom participate in high profile events such as the Olympic games.

It should also be investigated in the same production facilities can be used to make similar garments that appeal to non-Muslims. For example, head coverings also have a functional role in that they can keep hair out of women's eyes, and they can defend against adverse weather as well. Test marketing...

The company makes a number of niche products for smaller sports, and has traditionally targeted its marketing where niche products are concerned. The budget is not expected to be large, but Nike will need to communicate the existence of the product in a way that allows it to reach the target market (Harb, 2013). The use of niche sponsorship is effective means of reaching niche markets, who usually know their own heroes, even if the mainstream audience does not. Nike should find the right sponsorship targets, from Olympic teams preferably, to use to help bring this product to the masses.
The marketing mix will also involve pricing. This should be in line with Nike's usual premium pricing strategy. The company relies on premium pricing to support its extensive marketing efforts and its research and development. The premium brand image tends to be something that Nike pursues across all of its product lines, and the headscarves should not be any different.

The distribution will be in two ways. Because this is a niche product, there might not be much demand for the product in partner stores, but Nike can sell the product in its own stores. This is especially true in areas with high concentrations of Muslims in the West, and in the giant malls of Dubai, Abu Dhabi, Istanbul, Kuala Lumpur and Jakarta. The company can find space in its stores as a means of promoting the new innovation. There are two other potential channels as well. One is through stores that sell clothing to Muslims. These are niche stores outside of the normal distribution channels for Nike, but they represent an interesting possibility. The other option is…