How to Build Brand Loyalty in a Niche Market

The blogosphere is a-buzz today with talk about Nike's new Air Native N7 -- a sneaker specially designed for Native American feet, which are wider and taller than the average foot. The N7 is expected to accomplish quite a bit. Not only will the shoe combat obesity and diabetes (all profits from the anticipated 10,000 sales will be reinvested in tribal healthcare); it will also support Nike's ongoing outreach efforts in the Native American community. This here is the beauty of the N7.

In the book "Nike Culture: The Sign of the Swoosh," authors Robert Goldman and Stephen Papson explore how Nike's advertising builds "on the globalization of sports culture, at the same time that it contributes to the globalization of commodity culture." The authors go on to point out how specializing for niche markets is integral to maintaining a competitive edge in an industry defined by shrinking product life cycles and rapid commoditization.

Nike's done that with the Native American market. As we noted in an earlier blog, it's not necessarily a bad thing to introduce a product that appeals to only 1 percent of the population, since 1 percent of 300 million is 3 million customers. While Nike is focusing on the goodwill component of their Native American outreach, the company must be aware that the market represents 1.5 percent of the US population.

There's certainly room for profit there, especially if the N7 helps build stronger brand allegiance. And it seems that's just what Nike has in mind. Sam McCracken, manager of Nike's Native American Business division, commented last year on the N7:

"The new shoe is just another added value that we'll bring to the marketplace for these communities. It's another access point to this brand...If you go into these communities and look at what they're wearing, you'll see a tremendous amount of brand loyalty around what we're doing."