Nike Marketing Strategy
Nike Marketing Strategy
Bill Bowerman and Phil Knight were the two important founders who established the company in 1964. Blue Ribbon Sports that was mainly an organisation dealing in shoes import from the Japan’s region have inspired the brand name Nike Inc. Currently the organisation possesses over 30% of total market share with around 22000 retail outlets that are running successfully all over the world. In various countries, Nike is considered the top brand selling the items such as sports kit, clothes and accessories (Nike, 2018). Nike has its main importance on satisfying the needs of the sportsmen all over the world by serving them the top quality of apparel, equipment and accessories. Nike has a enormous brand recognition within the marketplace of athletic shoes and clothing. Currently it is the first leading company in the market having marketing strategies that are vital and strong enough to assist the organisation to maintain itself and become the leader of the market among other competitors in the market. The strategy of marketing followed by Nike help it to compete with the brands like Adidas, Puma, Reebok and others(Nike, 2018). With the help of clever marketing mix, the organisation has developed the strategy of sound marketing along with some other significant strategies company's brand for achieving sustainability in the market for the long term and to attain the successful position within the market. Through analysing marketing mix in this assignment of marketing strategy that is the eight Ps of marketing, it is revealed the right approach of the organisation towards its business.
The assignment of Nike case study is related Marketing Strategy aiming to perform the marketing audit of company's marketing strategy through analysis of its marketing mix. It will act as a support for the company in the distribution of its product all over the regions and to various age groups. The analysis of the marketing strategy describes the people’s need and about the environment of the company(Fullerton & Merz, 2008). This assignment of the Marketing Strategy has also helped in evaluating the Nike’s difference by its major and tough competitors.
Evaluating marketing strategy and recommendations
Analysis of the Marketing Mix of Nike Inc
Product: Nike provides large variety of products to their buyers all over the world that are produced for all types of consumers belonging to any age groups. It consists of a sports kit, clothing, accessories and shoes. However, the company’s important product is their running shoes that are on the top position of the list. The organisation also provides products that are related to athletics, which comprises of ice hockey, baseball, lacrosse, basketball, soccer, tennis and other outdoor games (Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016). Nike also offers its consumers with tailored and customized products, shoes and shorts according to their demands and needs, particularly for cricket. Initially, the company presented its shoes made in 1987 that included Nike SB shoes, Nike Air Jordan and others. In 2008, the company promoted a shoe particularly serve for the basketball. The player’s performance was supported by the design of the shoe. Nike also manufactures products for other games such as tennis, football, volleyball, golf, wrestling, aquatic, cheerleading and skateboarding (Fullerton & Merz, 2008). For the purpose of recreational activities and outdoor activities, they even provide developed products. Thus, the main product of the Nike that is its shoes is considered as one of 8Ps of the marketing mix of Nike. Nike has recently innovated one more product that is special cricket shoes which is thirty per cent lighter. It consists of the Air Zoom Yorker and Nike Air Max. Each product manufactured and provided by the organisation encourages better performance. Advanced Technology and innovations have been used by Nike to manufacture its product. By using high technology, the organisation has added the tracker of the performance that is radio equipment, which connects the shoe wearer to iPod Nano. Hence, it represents that Nike and Apple work together in order to produce better and improved quality products (Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016).
Price: The product of Nike is priced as per its features. The company’s pricing strategy is extremely competitive and is totally based on the target customers. The pricing strategy used by the company that still works is very high. The organisation targets the market segments and the customers that could afford high priced products. Shoppers are agreed with payment of high price for purchasing products having best quality from a successful organisation such as Nike. In addition, it is famous as value-based pricing or the cost-based pricing helps it to provide better service to the customers. Certain competitive brands also charged same type of price and does not charge low price for their products sold by them in the market. Nike has established and improved the base of its customers such as the niche customers that are able to afford the costly commodities. Instead of the premium price of products, customers prefer buying products of Nike to maintain status in society (Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016).
Place: The Company has its special and exclusive store. Moreover, some other reputed multi brand stores consist of various branded shoes along with that they also promote the shoes of Nike. There are above 20,000 outlets that only sell the products manufactured by Nike in approximately above 200 countries all over the world(Fullerton & Merz, 2008). The products of Nike are also sold in international market in some of the licensed and independent stores. The further plan of Nike is to promote their products in many other stores that will be started in various other countries, as well as to open more operational unit for increasing the level of production. The main aim of the company behind starting more operational units and stores is to increase their customers from every possible region as well as to expand their business and improve their customer base (Fullerton & Merz, 2008).
The company's stores play a very important role in the process of effective marketing. While buying the commodities from Nike's store, the customer gains the experience through which they generate the idea of the products to be manufactured in future. Various things are there that contribute to the company's benefit, such as shoe products of steel showmanship and decor products. The company uses the Coach's strategy of China for the reduction of its high cost in order to capture total international market. It keeps on expanding its comparison among several developing countries such as Vietnam and Asia. Nike has successfully expanded base of the consumer through online trading. The cost of advertising through online media is less than compared to that of traditional advertising hence, it becomes very easy for the company to sell its commodity at a lesser cost within the nations that are developing and extend its market.
The company promotes its special and products at few distribution stores such as town shop of Nike that is developed in few of the main countries, where the organisation with particular and specially customized products is serving consumers. Flagship stores are the next kind of stores that makes a contract with several retail stores and does the promotion of the products label by flagship where the products of Nike are offered to the buyers in large quantity (Mathisen & Musante, 2010). The third kind of store is Niked that is a particular kind of stores running online to fulfil the needs of the customers across the world. The next store is the company’s large retail discount store where the commodity is provided by big retail stores as well as discounts are offered for the purpose of expansion of the market and to increase their customers all over the world (Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016).
Promotion: Nike’s promotional activities are highly efficient and effective as the focus of the company is not only on its present customers but also to acquire new customers per day. The promotional marketing mix of the company works sufficiently to manage both the things and is a significant strength of Nike (Mahdi, Abbas, Mazar, & George, 2015). It has offered various sets of commodities that are sufficient for approx every type of environmental conditions (Tong & Hawley, 2009). The company uses print advertising that is considered to be the simplest channels for the promotion of the products as well as to deliver messages to the large number of audiences. To promote its products in the national and international market, the company takes the help of celebrity athletes that are unknown who can popularize its product all over the world. Nike's advertisement and promotions are subtle, and the medium of advertising increases the level of publicity and marketing as compared to the consumer's expectations. The celebrities and Billboards advertisement play a vital role in informing the consumers as well as local people about the brand as well as several offers and discounts offered by the brand (Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016).
Nike is using the strategy of brand awareness for the promotion of its products. Various other channels are available for the purpose of marketing of products like online ecosystems. The another important source of marketing and promotion of brand is through sponsoring several recognized programs that has a large number of viewers(Mathisen & Musante, 2010). Nike sponsored various numbers of programs and campaigns for the promotion of its brand. Nike has established its successful brand image through the several famous programs such as hook it up and west invitational or some other important events and the company also uses the brand’s name as well as trademark to promote those events. The brand name of the company itself is sufficient to generate high revenues (Anttonen, 2015).
People: People are regarded as the direct route and main reason for the formation of an enterprise. They are directly associated with a brand. To increase the demand for the commodity the company sets the target to increase the number of customers. Nike does a lot of investment in development and research for its workers and for those particular audiences who are related with company and company’s product. These individuals in delivering supreme and high-class service are supporting the company. The company uses high force for recruiting and hiring most talented candidates in its section of operational segments. The skilled and experienced professionals effectively train the candidates effectively so as they might be able to serve the company with their full efforts (Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016). The employees must have strong faith on the products of Nike while offering it to the consumers. These candidates act as a feedback channel for the organisation by giving them the additional feedback about the product and the company.
Process: Process denotes provision of service that works to get sufficient balance amidst standardization and customization. Particular attention and special mention is needed to every processes that are under the company’s several service positions. Service providers also have to clearly define their process to assure the company about the punctuality of the delivery to the consumers. Nike provides its customers the facility to avail unique and customised experiences of using it product by giving them the facility to choose their areas, which can fit to their preferences (Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016).
Physical Evidence: All the products and services that are offered by the company are the physical components for which consumers are paying a large amount. Such as Nike’s store might offer its customers with a proper and complete athletic makeover look(Anttonen, 2015). Company often provide their customers with printed material to ascertain physical evidence of different procedure of the organisation. The place’s location is also significantly affected where products o service is delivered. The user achieves great experience in case of availability of beauty as well as comfort in that location (Edelman, 2010). Hence, Nike s excessively focused over its look and rakes care of the outlets possessed by it for attracting customers successfully and providing them with great experiences (Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016). For fresh customers it is the most surprising thing could catch attention of customers for purchase of Nike’s products. Hence, it increases opportunities of sales and profits of the organisation.
For promotion of product and for enhancing awareness of brand for customers, Nike possess certain effective business partnerships along with collaborations that supports the company’s global presence. Grabit, LLamasoft, Bluesign technologies, IKEA and others are some key partners associated with the organisation that enhances global presence along with the base of customers (Nike, 2018).
Competency: Adidas and Reebok are the two main competitors of Nike. These brands offer the products that are similar to products being offered by Nike and thus both brands give tough competition to the company. The products manufactured by Adidas and Reebok has improved and evolved with time as well as their share in market is also very strong (Mahdi, Abbas, Mazar, & George, 2015). However, the products of Nike hold distinct and unique features. Other two brands are required to improve more attentiveness for their commodities but Nike is previously very conscious about its products hence, the company is effectively managing the risk of competition in the market (Mathisen & Musante, 2010).
Contemporary issues effect over Nike along with its marketing strategy
Various contemporary issues connected to community, social media, technology, environment and corporate social responsibility (CSR) that effect the marketing strategy of Nike. Some negative implications are there that might damage the successful running marketing strategy of the company. While improving the promotion and advertising strategies or marketing the commodities, it should make sure of not having any contemporary issues like exploitation of social paradigms(Mathisen & Musante, 2010). It must be associated with ethical implications along with CSR’s complete focus. Nike has collaborated and associated with various non-profit organisations and NGOs to perform CSR activities to make its presence renowned in the market. Nike has collaborated with some of the big platforms such as Ellen MacArthur Foundation, Girls Inc. Mentor, Sustainable Apparel Coalition (SAC), Peace Players International and Better Cotton Initiative (Nike, 2017). Hence, the company does not get involved in creating any kind of contemporary issues.
Recommendations on Evaluating Marketing Strategies for Nike: Based on the analysis of marketing strategies and marketing mix following points are recommended to Nike along with its marketing strategy:
Assessment of the needs of the customer base: Through the evaluation of the requirements of the customers, the company has recognised that the consumers can effectively purchase and reach out through the internet. The company can create attractive blogs for branding its product and to sustain its position in the market. It is very important for the company to understand the needs for the specified products as well as several requirements of the consumers in future (Tong & Hawley, 2009). To improve the base of the customers the company needs to know about the goals and aims of its possible consumers, and also needs to understand their problems about the products. Through online mediums and website, the organisation can give their customers adequate solution according to their various needs(Park & Kincade, 2010). According to the present situation, number of ways has been recognised by people, which can help them to be in shape and remain fit. Huge web resources can be used by Nike to position its brand in all over the world. The company successfully achieve its goals and visions by supporting its possible customers in achieving their goals (Anttonen, 2015).
Assessment of various mediums for reaching the customers: By using digital marketing and several other aspects of marketing the company should focus on increasing the number of consumers and to make the user base more broader. At present digital marketing is considered as an important tool used by several platforms to improve the awareness of the brand and to promote the company along with its product (Smith, 2012). Some of those channels are social networking and social media. The main purpose of using these efforts or marketing is to make sure that Nike has all the products needed by the customers and they can easily get its product (Laukkanen, 2017).
Promoting content according to the needs of the customers: In order to reach a big part of audience as well as possible customer base the company is required to have innovative effect on the customers (Shank & Lyberger, 2014). To create and promote content through which the customer’s requirement can be addressed the company should use various mediums like print collateral medium, social media, video channels and blocks. The famous brands like Nike must keep on checking the requirements and needs of the possible customers through wide keyword research and through the survey elements (Anttonen, 2015).
Sponsorships: Sports athletes have been paid a huge amount for advertising, selling and promoting the company’s product. It is considered as the most potential and effective marketing strategy that is used for the promotion and advertisement of the product by the company (Smith, 2012). When a public figure or a famous celebrity associates with name of the brand it is easy for company to motivate and influence the customers to buy its product. Thus, it is effective in increasing the sales. The company should stress on using more important personalities that can be more effective for Nike’s marketing tool (Fullerton & Merz, 2008).
Innovation: Innovating products is the next main marketing strategy that might be used by Nike. Nike is considered to be top athletic brand so they should do more investment in research and development to bring creativity in its products (Shank & Lyberger, 2014). Innovative products offered by the company helps to attract the existing customer’s attention and attention of possible customers. The company is required to improve its focus on customer’s requirement and expand its company in the global market (Laukkanen, 2017).
Word of mouth with a specific purpose: Nike’s product is easily identifiable and approachable. Hence, the products of Nike improve extensive marketing strategy of word of mouth. The company towards the choices and emotions of the consumers should pay higher attention as it helps the consumers to express themselves to the organisation directly. Seeing or developing relation of buyer with the company’s product influence customer to do promotion through word of mouth (Anttonen, 2015).
Pricing Options: The price of the Nike’s product is always kept High or Supreme but customers are eager to pay for the company’s product. The quality of the brand provided to its buyers is the main reason after this (Smith, 2012). But the company is required to manage it prices according to the preferences, needs and background of the consumer groups. Such as the company must keep the price of kid’s sport shoes lower as compared to the price of shoes for women and men as it may help to drive the attention of more customers to increase the sales of shoes (Fullerton & Merz, 2008).
Emotional Branding: The assignment of Marketing Strategy describes the need of making the branding strategy of Nike by the company more powerful. The powerful branding strategy helps the company to inspire the customers all over the world (Pearson, 2013). The company must use small story based strategy of emotional advertising or emotional branding. By using the strategy of emotional branding, Nike can extend its reach to customers all over the world (Tong & Hawley, 2009). The powerful and best marketing strategy is story telling through which the organisation show the customers that how its product can help them in their work and day to day life. This helps the company in gaining the customers loyalty at top level and it also improves the communication in between the company and buyers (Shank & Lyberger, 2014).
From evaluating and analysing the above assignment of Marketing Strategy, it might end with the conclusion that Nike is considered as the leading brands in the apparel, accessories sector and sports tools. The main emphasis of the company is to satisfy the needs of the athletes all over the world by offering them the top quality of apparel, accessories and the sport kits. Through analysing the marketing strategies if the company it has been recognized that, the organisation is paying sufficient emphasis over all the marketing mix’s 8Ps. However, as it has been advised in recommendation the brand is required to do some improvements in the strategy followed by the company. By implementing the recommendation within the marketing strategies as advised in the assignment of marketing strategy, Nike can improve its customer base and gain more market share all over the world. Hence it is assured that the company has huge potential to maintain its position in the market with its sufficient focus over CSR activities and effective strategies along with doing more unique experiences with its commodity in comparison to its another competitors. The assignments of Marketing strategy are prepared by our experts of marketing management assignment help belonging to top universities that let us to give you a reliable help on assignments.
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