The creation of a digital strategy for nike

Running head: CREATION OF A DIGITAL STRATEGY FOR NIKE COMPANY
Creation of a Digital Strategy for Nike Company
Name of the Student
Student ID
Course Title
Word Count: 2021

1CREATION OF A DIGITAL STRATEGY FOR NIKE COMPANY
Table of Contents
1. Introduction....................................................................................................................2
2. Discussion on the Digital Strategy.................................................................................2
2.1 SWOT Analysis of the Online Marketplace in which Nike operates........................2
2.2 E-Commerce Goals of Nike for the next year of online trading...............................3
2.3 Digital Marketing methods.......................................................................................3
2.4 E-Commerce Website Enhancements.....................................................................4
2.5 KPIs for the next 12 months of online trading..........................................................5
2.6 Customer Journey Map............................................................................................5
3. Conclusion.....................................................................................................................8
References.........................................................................................................................9

2CREATION OF A DIGITAL STRATEGY FOR NIKE COMPANY
1. Introduction
In the given report, the discussion is focused on the S&P Company, which is
Nike. The company is considered as one of the most leading kind of sports apparel
brand, which has made huge success in the online marketplace. In relation to
propagating in the competitive market, the use of a proper and enhanced digital strategy
would need to be formed (Nike.com 2020). Apart from setting themselves in the offline
marketplace, Nike has also developed a wide range of mobile applications, which
further enhances the shopping experience of customers.
The following parts of the report, the discussion would be focused on the new
kind of digital strategies that could be formed by Nike to progress in the growing
competitive market. Hence, a SWOT analysis of the online marketplace set by Nike has
been formed. The e-commerce goals of the company would also be set accordingly.
There are a wide range of digital marketing methods, which should be emphasized by
the company. Hence, the KPIs would also be set based on which Nike would be able to
maintain them according for the next future of marketing and business.
2. Discussion on the Digital Strategy
2.1 SWOT Analysis of the Online Marketplace in which Nike operates
The SWOT analysis of Nike, which is being faced by them for conducting their
business on the online marketplace are being discussed as follows:
1. Strengths: The internal strengths possessed by Nike are:
 The company is defined as the most recognizable brand and offers unique
products for their customers (Gürel and Tat 2017). With a strong awareness
capability of the brand, Nike has been able to capture 31% of the global and
competitive footwear market.
 The company has a large customer base. These customers continuously
followed the trends that are posed by Nike. They also ensure that customer
feedback is generated at each product based on which they would be able to
understand the areas of improvement.
 The company has formed collaborations with Michael Jordan, which has been
beneficial for the sales of the company (Brohi et al. 2016).
 The company has excellent form of marketing campaigns based on which they
are able to propel themselves towards customers.
2. Weaknesses: The weaknesses within the company are:
 In foreign countries, the conditions of labour are considered to be extremely poor
in form. These include low labour wages, child labour and terrible conditions of
working.
 Although the income statements of Nike have been prosperous, the company
has still been facing different kind of financial threats.

3CREATION OF A DIGITAL STRATEGY FOR NIKE COMPANY
 Nike heavily depends on the U.S market in terms of revenue and sales (Santos
and Laczniak 2015). Despite of the reputation of Nike in the international market,
the company entirely depends on U.S for substantial growth and sales.
3. Opportunities: The opportunities that lay ahead of Nike are:
 There are plenty of innovative opportunities for Nike in the global market such as
China, India and Brazil and which would help them in flourishing.
 Innovative products such as wearable technologies in association with health and
fitness could be brought in within the market.
 The production and supply of the products by Nike would be primarily be
independent of manufacturers (Zhang 2018). Hence, they could make use of the
manufacturers for streamlining of the supply chain.
4. Threats: The treats that might be faced by the company are:
 There have been major form of competitive pressure by Nike based on which
they should dominate over the athletic industry (Nalven et al. 2019).
 Different other companies such as Adidas and Under Armour are majorly
focusing on innovative advertising and marketing campaigns, which majorly
creates competitive pressure on Nike.
2.2 E-Commerce Goals of Nike for the next year of online trading
Based on online trading in the global marketplace, the primary goal of Nike is to
focus on digital marketing strategies and methods to bring in better competition for the
company in the online marketplace.
The objectives that would be set by the company and which would need to be
achieved by the company are discussed as follows:
 To map the present strategies of marketing and analyse them
 Planning for a new form of digital marketing strategy, which would help them in
benefiting in the growing marketplace
 To drive better results and aim towards delivering quality products for satisfying
their customers
2.3 Digital Marketing methods
The digital marketing methods that are being developed by Nike are primarily
supported with the help of brilliant form of effective advertisements. The company not
only aims for selling of the products through their online platforms but also aim towards
attracting their customers while maintaining brand loyalty (Nusser, Mahle and Pätzmann
2015). The digital marketing methods that should be employed by Nike for attracting
new customers to their e-commerce website are being discussed as follows:
1. Developing innovative tagline and meaningful stories – The online
campaigns established by Nike are considered as highly effective in nature. They
primarily focus on the creation of meaningful stories that would enrich their content and
draw the attention of more number of customers. A careful form of crafting of
advertisements would be considered to be highly necessary for evoking particular kind

4CREATION OF A DIGITAL STRATEGY FOR NIKE COMPANY
of feelings and making a meaningful sense to their products (Shirisha 2018). One such
example of this strategy, is that Nike would call their customers as ‘hero’. Although,
customers would not be a hero, but the meaningful sense of the advertisement added
with the quality of products could make a customer feel themselves to be valued.
2. Preparing efficient distribution strategy – The company should develop
strategies in such a manner that customers would spread the competency of the brand
from their mouth. Thus, Nike should create digital strategies in such a manner that
people would convey their message by sharing them to other people (Armenteras,
Paech and Politiek 2017). The distribution strategy of the company should be made in
such a manner that customers would be able to distribute their strategies worldwide.
3. Targeting proper mission and strategy – In order to propagate in the online
market and reach to more customers, Nike primarily makes use of campaigns and
targeting strategies to remain at the top of the competitive marketplace. Cutting-edge
technologies as Hyperadapt are being used by them to prepare targeting strategies
(Borić et al. 2016). With the help of digital marketing strategies, the company should be
able to strategize the launch of innovative products, which would make them come
closer and engage with a broad number of customers.
2.4 E-Commerce Website Enhancements
The e-commerce website possessed by Nike can be considered as the major
asset of the organization in order to target their customers and help themselves towards
deriving the rich experience. The certain enhancements that could be brought in by Nike
within their present e-commerce website are discussed as follows:
1. Since customers in the recent times have approached smart techniques to
search for their desired products, hence the company should also develop smart
strategies for helping their customers in getting access to their desired contents.
Implementation of a search functionality within the website would be helpful for the
visitor in typing in their desired product details (Yang, Gong and Chen 2018). Moreover,
the company could also use autocomplete and instant search feature within their search
box, which would ease the customers in searching for their favourite products.
2. A single page checkout feature should be supported within the website. This
would improve the conversion rate as compared to the longer process of checkout of
products. With the help of a one page checkout, the website would reduce the chance
of abandoned carts. Missing of any potential order would mean a huge loss of money
towards the business.
3. Customers should not face any form of accessibility issue while the website
would be viewed by them. The used fonts, the colour contrast and accessibility and
viewing on different devices is a must concern that needs to be considered greatly.
Users must not face any kind of problem while accessing the website content while
making use in different devices (Grange, Benbasat and Burton-Jones 2018). Hence,
website developers should take into consideration these major aspects while designing
the website in a professional manner.

5CREATION OF A DIGITAL STRATEGY FOR NIKE COMPANY
4. Slow loading of websites is one of the major problem being faced by
customers. This often leads to frustration in customers and they avoid waiting for a long
time. Thus, they move to other websites (Prihatini and Hidayatullah 2019). Speed and
responsiveness of websites mostly matters in websites and hence Nike should focus on
optimizing their business website, which would be highly important for them to gain the
attention of customers.
2.5 KPIs for the next 12 months of online trading
The KPIs that needs to be adopted by Nike in setting their company in the online
marketplace for the next 12 months of online trading are discussed as follows:
1. Website Traffic – The generation of more traffic towards the website would
help the company in raining higher pay for the website. This should be the primary goal
of the company. The traffic would not only lead towards purchases but it would also
raise a general awareness of the international brand (Maltz, Bi and Bateman 2018). A
vast knowledge of the source from which the traffic is mostly being generated would
also help the company in deciding of the next level of strategies to target the majority of
the customers.
2. Conversion rate – This is considered as one of the most important KPI that
should be majorly be considered by most of the e-commerce stores. The rate is defined
as the percentage at which the visitors of the website would be converted into prime
customers (Ge, Liu and Ma 2016). A high rate of conversion for the customers would
help Nike in understanding the fact that they have been helpful for convincing their
customers for purchasing their services and products.
3. Bounce rate – This rate determines the percentage of visitors who would
leave the e-commerce website after arrival from a referral source. This KPI would be
applied to every visitor who would leave the website without making any single
purchase from the website. A higher number of bounce rates would help in determining
the fact that the majority of visitors are not able to find engaging content, which had
been desired by them.
4. Time to purchase – The Nike e-commerce website should possess this KPI,
which helps them to track the time to purchase. The chosen metric would help the
company in understanding the time taken for a visitor towards the site to change
themselves into actual customers of the website (Nastišin 2016). Having a strong
knowledge over the average time to purchase would help Nike for making smart
decisions in terms of marketing for their products.
2.6 Customer Journey Map
A customer journey is defined as a story based on understanding of users, their
behaviours while they would visit a certain website. This story would also help the
company in understanding ways in which they would be able to improve the trip so that
customers would continuously return to the website.
In order to lead in the highly competitive market, Nike would propose a certain
customer journey map that should be focused upon implementation of the same within

6CREATION OF A DIGITAL STRATEGY FOR NIKE COMPANY
their business strategy. The different aspects that should be considered by Nike within
their customer journey map includes:
1. A timeline is defined as the stages within the funnel. The certain stages of the
funnel are consideration, awareness, retention and conversion. These aspects needs to
be greatly considered within the timeline of the customer journey map.
2. Nike should consider the every touch point that affects the business
profitability. These include website pages, engaging advertisements, emails and social
media channels, which are mostly browsed by customers.
3. The company should also have a clear picture of the customer behaviour that
would change at each stage of the timeline. They would also need to understand in
detail about the steps of progression and the ways in which they would detail the key
steps towards the journey while a customer would make a purchase.
4. Understanding of the customer pain points is a major concern that needs to be
discussed and analysed by the company. The company should research whether a
customer feels frustrated or is satisfied with the service they would have received.
5. A proper reference should be made towards the buyer personas. These
include psychographic and demographics data. Since each buyer would move across
different paths of the journey, hence distinct buyer persona should be created.

7CREATION OF A DIGITAL STRATEGY FOR NIKE COMPANY
Depiction of the Customer Journey Map
(Figure 1: The Customer Journey Map diagram)
(Source: Created by author)

8CREATION OF A DIGITAL STRATEGY FOR NIKE COMPANY
3. Conclusion
The above discussion within the report focuses on the major form of impacts that
could be made by Nike in defining a new form of digital strategy. Thus, in the initial
phase, the report focuses on the SWOT analysis and understanding the present
position in the marketplace based on which new strategies could be accordingly formed.
The nest part of the discussion focuses on the e-commerce goals that needs to be set
by the company for online trading. Digital Marketing methods are one of the primary
areas that should be highly focused on by Nike in order to compete within the
marketplace. Hence, different methods have been proposed in the discussion, which
would prove worth for the company. However, the company should also focus on the
enhancement of their e-commerce website, which would also lead to higher customer
attention. The final part of discussion in the paper puts emphasis on the KPIs and
customer journey map, which would help the company in understanding the most
specific aspects in which the company could majorly put their focus. Based on
implementing the above discussed strategies, it would be highly essential and helpful
for Nike to progress in the online marketplace and lead themselves in the extremely
competitive marketplace.

9CREATION OF A DIGITAL STRATEGY FOR NIKE COMPANY
References
Armenteras, J., Paech, R. and Politiek, I., 2017. Influencer Marketing's Effects on B2C
Brand Image: A Case Study of Nike. LBMG Strategic Brand Management-Masters
Paper Series.
Borić, S., Stanisavljev, S., Kavalić, M., Vlahović, M. and Tobolka, E., 2016. Analysis of
digital marketing and branding for the purpose of understanding the consumers in digital
age.
Brohi, H., Prithiani, J., Abbas, Z., Bhutto, A. and Chawla, S., 2016. Strategic Marketing
Plan of Nike.
Ge, T., Liu, Z. and Ma, L., 2016. The Impact of E-Commerce on the Clothing Retailers:
Studies on Chinese Companies. In Handbook of Research on Global Fashion
Management and Merchandising (pp. 593-621). IGI Global.
Grange, C., Benbasat, I. and Burton-Jones, A., 2018. A network-based
conceptualization of social commerce and social commerce value. Computers in
Human Behavior, p.105855.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of
International Social Research, 10(51).
Maltz, E., Bi, H.H. and Bateman, M., 2018. Benchmarking sustainability performance:
the next step in building sustainable business models. Journal of Public Affairs, 18(3),
p.e1606.
Nalven, A., Stauffer, G., Obiano, O. and Agarwal, S., 2019. Future of Sports: Impact of
Wearable Technology: Case Study on Nike’s Wearable Technologies.
Nastišin, Ľ., 2016. Biggest and most successful brands on Facebook in the light of
analysis.
Nike.com. 2020. [online] Available at: <https://www.nike.com/> [Accessed 14 April
2020].
Nusser, S., Mahle, I. and Pätzmann, J.U., 2015. How Social Commerce Communication
can support Brand Loyalty: An Analysis of Nike‘s Efforts in Facebook Community
Management. Markenbrand, (4/2015), pp.48-57.
Prihatini, Y.O. and Hidayatullah, T., 2019, November. Building Sports Equipment among
Students through Media as a Trend. In IOP Conference Series: Materials Science and
Engineering (Vol. 662, No. 3, p. 032069). IOP Publishing.
Santos, N. and Laczniak, G., 2015. Marketing to the poor: A SWOT analysis of the
Market Construction Model for engaging impoverished market segments. Social
Business, 5(2).

10CREATION OF A DIGITAL STRATEGY FOR NIKE COMPANY
Shirisha, M., 2018. Digital Marketing Importance in the New Era. International Journal of
Engineering Technology Science and Research, 5(1).
Yang, Y., Gong, Y. and Chen, X., 2018, October. Query Tracking for E-commerce
Conversational Search: A Machine Comprehension Perspective. In Proceedings of the
27th ACM International Conference on Information and Knowledge Management (pp.
1755-1758).
Zhang, J., 2018, August. Strategy of Sports Brand Network Marketing on the Basis of
Brand Image Promotion. In 2018 International Conference on Management, Economics,
Education and Social Sciences (MEESS 2018). Atlantis Press.