Thursday, January 21, 2010

STP Process



Michael Jordan is one of the most recognizable athletes of our generation. Winning multiple dunk contests during the 80's catapulted him into superstardom. Winning multiple MVP's, six NBA championships and being a member of the 1992 Dream Team only cemented his legacy as the greatest of all time. Kids and adults alike wanted to be like Mike during his prime years and years after his retirement, many still do. This is evident because his Air Jordan shoe line, under Nike, is still going strong 25 years after the release of the Air Jordan 1. In 2009 the 24th addition to his signature shoe line was released, dubbed the Air Jordan 2009. Along with yearly releases, the Air Jordan line brings back certain signature shoes from the previous years, called retros, and sells them to the public. Just last month one of the most coveted styles was "retroed" and was a massive success. They were the Air Jordan XI "SpaceJams," which retailed for $175 yet still sold out in many stores. Air Jordan and Nike's marketing strategy is unmatched in the athletic shoe industry. How else can they charge $175 for a pair of retros that originally came out in 1995, selling out within a few hours under these economic conditions?


Jordan Brand's STP Process



  • Segmentation:


  • Jordan Brand definitely identified their segments correctly. Ranging from young children, stylish and fashion concious teenagers/adults, athletes that demand and require high-performance products and even the budget oriented consumers.

  • Targeting:


  • Air Jordan has a wide array of products that caters to its different segments. Its most popular product, the retros, is its most profitable because it captures the highest amount of segment population (stylish and fashion concious teenagers/adults) and high profit margin per shoe sold. As a sneakerhead and Jordan fan myself, this is apparent because the quality of materials used in retro releases are sub-par compared to the newer Air Jordan releases. Therefore it can be concluded that it costs Nike/Jordan Brand less to manufacture retros than newer signature releases such as the Air Jordan 2009. Also this segment is highly loyal, they are more likely to purchase more retros from Jordan Brand. I know several people that continually purchase retros throughout the year (I was one of them because I had to set my priorities). Jordan brand caters to its "athletic" segment by manufacturing and releasing high-quality signature shoes (Air Jordan 2009, Jordan CP3 III, Jordan Melo M6) that are designed for performance. The Team Jordan line are shoes that are produced for the budget oriented consumer. They are usually priced lower than the retros and the shoes from the signature line.

  • Positioning:


  • Air Jordans are positioned very highly in its target consumer minds. It features high-priced products that are stylish and deemed as premium. It differentiates its products from its competitors (Adidas and Reebok) through different and stylish designs and high-performance products.



    Jose Jacinto

    Section E

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