Marketing Mix of Nike and Reebok

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TOPIC- Marketing Mix of Nike and Reebok
Introduction
The essay throws light in understanding and analyzing the comparative analysis of the
marketing mix of the two major international brands of sports industry accessories named
Reebok and Nike.
Reebok is one of the international brands which deal with equipment for the sports
industry. Reebok accounts for more than 10% of the sales of Adidas and the global share is
around $245 billion which has been able to mark their position second after Nike. The trend of
sales has been moderate in case of Reebok wherein in 2016, it was 1770 million Euros and in the
year 2019, the sales have been around 1748 million Euros. It predicts that the company is going
at a moderate pace in comparison to other competitors (Reebok.com, 2020).
Nike is considered to be one of the pioneers in the marketing of the different
development and manufacturing of the footwear and other sports accessories. In the last three to
four years, Nike has been able to rise up to 6% in the sales of the footwear and apparels in
different parts of the world. Between the year 2011 to 2019, the sales of Nike have been around
27.4% which is all time high in comparison to the other competitors present such as Puma or
Reebok (Nike.com 2020).
Findings
Product
In case of Nike, it is capable of offering the different range of products including apparel,
equipment and shoes. The core products of Nike include the high quality sports shoes for the

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different sports enthusiasts. For instance- It has special kind of shoes for cricket that is 30%
lighter than the rival companies. Moreover, the actual product category of Nike includes the
sports apparels from 1979 and the apparels are very comfortable and the material is of high
quality (Thieu et al. 2017). Lastly, the augmented product and service offered by Nike includes
the different exchanges being done on the different products at any time within thirty days from
the date of purchase.
On the other hand, in case of Reebok, the apparels have been always the main or the
actual product from which they started. The fabrics and technology blend provides the customers
with utmost comfort (Roberts, Kayande and Stremersch 2019). In addition, the footwear is the
actual product which is being sold by Reebok under different brand names such as Reetone,
Reegym, Reetrain and ReeZig. The shoes are specially designed to make the muscles harder and
it is liked and preferred by the different sports enthusiasts.
In addition, currently, Nike has been designing along with selling products that have
capability for connecting with iPod nano which has been the other major prospect of the
company in comparison to Reebok. There is another sub brand of Nike which is NikEid for
customizing and designing the products as per the choice of the customers and it has been helpful
for them in attracting large number of audiences (Nugroho and Irena 2017).
Price Comparative Pricing of Nike and Reebok
Particulars 2016 2017 2018 2019
Nike $700 $775 $1000 $1500
Reebok $250 $450 $475 $550

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In case of Reebok, the company has followed the standard pricing policy wherein during
the introduction of any new product, they try to keep the pricing low and as the demand of the
product begins, they raise the shift to the regular policy of pricing. It shows that the company has
always followed the price skimming strategy (Mujiyanti et al. 2019).
On the contrary, Nike includes the Value Based Pricing for facilitating the high level of
growth and success in comparison to the other competitors present in the market. Nike tries to
measure the value provided by the customers on the products which are bought by them and
through the respective strategy, Nike ensures to retain maximum buyer’s surplus in an effective
manner (Hisrich and Ramadani 2017). For instance- Nike makes Air Max for adults and
children, however, prices for both are drastically different.
Place
In case of Nike, the shoes are being carried by the multi-brand stores as well as exclusive
Nike stores which are present across the globe. Nike has been highly successful to nearly 20000
retail accounts in the United States of America and in almost two hundred countries in the entire
globe. Moreover, it has been noted that in the international markets, Nike mainly uses three
major channels for selling wide variety of products to customers who includes retailers, Nike
online stores, and online sale through e-commerce such as Amazon or eBay and exclusive offline
stores of Nike (Garabinovic and Nikitovic 2017). Nike has been successful in creating
manufacturing units in almost each and every country for helping them in reducing the cost of
logistics and receiving efficiency in distribution.