Digital Marketing Strategies and Factors Effecting Customer Knowledge, Sales and the Profit

This report discusses the marketing strategies of Nike, the transformation into digital marketing, and the role of marketing research. It also explores the factors affecting customer knowledge, sales, and profit. Subject: M.sc. (Tech) General Studies, Course Code: HSS F377: Design Project

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Design Project Report
On
Digital Marketing Strategies and Factors Effecting
Customer Knowledge,
Sales and the Profit
By
Rohit Mandar (2016D2PS0988P)
Discipline: M.sc. (Tech) General Studies
HSS F377: Design Project
Submitted to:
Dr. Sangeeta Sharma
Associate Professor,
Department of Humanities & Social Sciences,
BITS PILANI - Pilani campus
BIRLA INSTITUTE OF TECHNOLOGY &
SCIENCE, PILANI
NOVEMBER 2019

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Table Of Contents:-
SR No. Topics Page No.
1 Abstract 4
2 Introduction 5
3 Objectives 5
4 Methodology 5
5 Nike Strategies 1990’s 6-9
SWOT Analysis 1990’s 9-11
6 Nike Digaital Planning Strategies 12-14
Nike SOSTAC 15-22
7 Conclusion 23-24
8 References 25

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ACKNOWLEDGEMENTS
I would like to express my gratitude towards S.K.Chaudhary sir (HOD dept. of Humanities &
Social Sciences) for giving me an opportunity to undergo a project in department of Humanities
& Social Sciences.
I am highly indebted to Dr. Sangeeta Sharma madam for their guidance and constant supervision
as well as for providing necessary information regarding the project & also for their support in
completing the project and for giving me such attention and time.
My thanks and appreciations also go to my institution in developing the project and people who
have willingly helped me out. I have taken efforts in this project. However, it would not have
been possible without the kind support and help of many individuals and institution. I would like
to extend my sincere thanks to all of them.
-Rohit Mandar
2016D2PS0988

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Abstract
The rise in popularity of technology into marketing strategy directs attention to the need for an
in-depth review of digital marketing strategies. It has played a vital role in making one as a
successful brand. This paper informs about the marketing strategies of NIKE earlier and its
transformation into digital and also tools of marketing with various models involving the
beginning from unawareness to the post-purchase of a brand. Also, it highlights the role that
marketing research plays, market plan (ICCDVTM@P) and the SOSTAC model of digital
marketing.
In this report, I performed a detailed description of how to engage customers, what motivates
them to come online and why do we lose customers.

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CHAPTER ONE
INTRODUCTION
Digital marketing is ofter referred as ‘online marketing’, ‘internet marketing’ or ‘web
marketing’. The term digital marketing has developed a fame over time. The way in which
digital marketing has grown after the 2000s has changed the way brands and businesses make
use of technology and digital marketing for their marketing purpose.
Digital marketing extends beyond internet or web marketing including channels that do not
require the use of the Internet. It includes mobile phones (SMS), social media marketing, display
advertising and many other forms of digital media.
Digital marketing is a strategy that provides an individual or organization the ability to reach
clients by establishing innovative practices, combining technology with traditional marketing
strategies.
Digital marketing is a two-way communication process which helps to get feedback faster and
also allow manufacturers to improve the products, there is an interaction level between consumer
and buyer so that their won’t be any furture complications and what so ever the issue can be
solved in the shortest time spam also the prices online are less as compared to traditional
marketing and it is also an simple and direct way to calculate ROI.
Objectives or expected learning outcome
The study is focused on digital marketing strategies and aimed to learn the marketing tools and
market plans for making one as a successful brand. The fundamental aim is to find the
effectiveness of digital marketing over traditional marketing.
The study also touches upon customer satisfaction, their knowledge and how they get affected
and convinced by others.
Methodology
The project aims to compare the advantages of digital marketing over traditional marketing that
affects the growth and image of a brand. The qualitative research is used to understand the
customer need, create improvement for a product, brand, and services, understand the idea,
approach behind marketing e.t.c. quantitative research is used for comparison and adopted case
study methodology. Exploratory work must be done to determine the nature of the variation in
the situation. Through content analysis and data collection, I focused to aim an initial
understanding of the type of content written and generated from data.

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CHAPTER TWO
EARLY STRATEGIES
NIKE COMPANY ANALYSIS
“In the face of today’s challenges—from climate change to inequality to how we unleash the
potential of the next generation—I believe we need our boldest dreams yet”
[Mark parker, chairman, president and CEO of Nike, purpose.nike.com, 2019]
Nike Inc. an American sportswear company, headquartered in Beaverton, Oregon, It was
founded in 1964 as Blue Ribbon Sports by Bill Bowerman. After opened its first retail outlet in
1966 and launched the Nike brand shoe in 1972. In 1978 the company was renamed as Nike, Inc.
And it was made public two years later. In the 21st century, it had stores and distributors in over
170 countries and its logo, a curved check mark called the "swoosh", was recognized throughout
the world.
The 1980s were noticeable by the signing of Michael Jordan as a product spokesperson, revenues
in excess of $1 billion leads to the formation of Nike International Ltd., and " Just Do It"
campaign. Nike additionally enlarged its product to incorporate specialty attire for a variety of
sports. In 1990, Nike surpassed the $2 billion mark in consolidated revenue with
5300 employees worldwide. In addition, we tend to open the NIKE world campus in
Beaverton, Oregon.
In 2018 Nike is ranked as 5th by UNIVERSUM, 2nd for happiest companies to work for by
Career Bliss. In 2017 ranked 12th in the world’s most admired companies by Fortune, 9th for
most admired employers for millennials by Mornig Consult, best team culture in 2017 also in
2016 ranked as most innovative companies by Boston Consulting Group, best place to work by
Glassdoor. Celebrity endorsements by such athletes as Michael Jordan, Mia Hamm, Roger
Federer, and Tiger Woods is the major part of Nike’s success that it was owed. The NikeTown
chain stores 1990, paid honor to these and other company spokespersons while offering
consumers a full range of Nike products.
Current Status
Today nike. Inc. has widespread arrangement of its offerings, which are available throughout the
world. It had an revenue of 39.117 Billion by the end of financial year of 2019 which is 74%
more as comapred to 2005 which is 13.74 Billion. It has also created about $4772 million of
combined free income from operations as of may 2019. (BSE, 2019)

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Nike strives to expand its brand through adopting development technique by obtaining of
Umbro, Nike has expanded its position as the greatest football maker company in the market.
(Nike News, 2019) Also it has obtained a strong name or title in the market of running basketball
and football categores in North America and central and Eastern Europe.
NIKE MARKETING STRATEGIES
The mission at Nike is to be a company that exceeds all others in the athletic industry. They have
maintained their position by providing quality footwear, clothes, and equipment to consumers of
all age groups and lifestyles. They promise to make their products easily available across the
world through the use of retail outlets, mail order, and the company web site. Nike’s
administration thinks that “our success lies in the hands of our teammates, customers,
shareholders and the communities in which we operate”. Nike undertakes to keep this in mind
with the execution of every decision within their company.
The main vision of Nike is to remain the leader in its industry. They will continue to produce the
quality products which they have provided in the past. Most prominently, they will continue to
meet the varying needs of their customers, through product innovation.
Any large brand like Nike follows strategies in order to become the world’s leading designer,
marketer and distributor of athletic footwear, apparel, and accessories. One of its strategies is to
mark a continuous focus on innovation, and emphasis on the research and development
department. Which is giving their best to produce footwear, apparel and athletic equipment that
reduce or eliminate the chances of injury, helps to improve athletic performance and maximize

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comfort and enjoyment. (dermesropia, 2004). According to Nike, innovation is at the heart of its
business growth strategy. The second strategy is Nike’s premium pricing strategy (best cost
provider strategy) which targets the customers who develop a special kind of familiarity with the
product that leads to the development of loyalty.
At the same time, Nike pays a visible concern towards a broad differentiation strategy. Based on
which, it produces its products for athletics in three ways. Firstly, it manufactures for three
different segments of people: men, women, and children. Secondly, it differentiates its products
by offering a variety of accessories and apparel like shoes, gym bags, gloves, and skates. Thirdly,
Nike has the licensees to manufacture and sell Nike brand products aside from athletic like
school supplies, electronic media devices, and timepieces.
Apart from these Nike follows market segmentation strategy, which assists Nike in the
advertisements of its products by entering into the sponsorship agreements with celebrity
athletes, and professional teams. In 1982 Nike came live for the first time on national television
ads during the broadcast of the New York Marathon. Also, Nike hires the famous basketball
players, some of the popular football scorers and golf superstars to make an emphasizing
campaign for its products around the world. (bizjournals.com, 2015)
Sales and Income Trends (1990-99)
Revenues in the fiscal year ended May 31, 1999, declined by 8% over the prior year to $8.777
billion. As illustrated in the graph below, this marked the first time since 1994 that revenues have
declined. Regardless of this year's decline, Nike Inc. achieved 300% revenue growth over a 10-
year period, rising from 1990 sales of $2.235 billion.
Fig:- 1 : Obtained from Nike, Inc. 1999 Annual Repor
Although revenues declined in 1999, net income increased by 13% over the prior year. As the
graph below illustrates, net income has been volatile in the latter half of the 90's. Sharp decreases
in 1998 and 1999 net income were due to restructuring charges. If these charges had not been
incurred, income would have been flat for both years. Efficiency in cost control and inventory

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management has allowed net income to increase while revenues decreased in 1999. Note that the
largest growth rate was 43% in 1997 over the prior year with net income of $795.8 million.
Fig:- 2 Obtained from Nike, Inc. 1999 Annual Report
SWOT ANALYSIS
Personal SWOT analysis is a huge tool to assess yourself to be able to plan your career. If done
properly, an individual SWOT analysis will permit you to develop a substantial action program
that makes it possible for you to accomplish your expert targets.
Opportunities
The most important part of a SWOT analysis is the way how we utilize the information that
shows up out of it. A Nike Inc In The 1990s SWOT analysis makes it possible to figure out
which locations to focus their power and resources. It is a part of the planning for a social change
process and will not provide a tactical strategy if used by itself.
Often when we start a service, getting the correct SWOT analysis template is vital. It's extremely
helpful when a company wishes to expand itself in brand-new ventures. No matter what kind of
organization one is, if it is service or government-run, a chart can be a useful technique to show
employees, in addition to supervisors, where the margins must be.
As stated by the creators of the procedure, SWOT essentially tells you what's favorable and
unfavorable about a company or a specific proposal or category. In extreme circumstances, you
may have to do a segment-by-segment SWOT and after that feed this up into the larger one.
SWOT truly isn't the only evaluation technique you may utilize. He or she can be used for total
organization strategy sessions, but it can likewise be utilized for a particular section like
marketing, production, or sales. Appropriately, he or she can be a powerful aid for senior-level

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management to establish a suitable method for business. If you want to find more information
about the SWOT of Coca Soda, you remain in the ideal place.
Weaknesses
Business typically discovers it has competitive strengths that have not been totally made use of
before. Additionally, it may use distinct products compared to other retailers. After completing
the Nike Inc In The 1990s SWOT analysis, it must be able to configure its overall position in the
marketplace. It mainly operates in the US and Canada. NIKE has small service systems to serve
the international communities. Or a retail business may identify a chance to purchase a more
compact merchant to enhance market share by methods of a SWOT analysis.
The company serves lots of folks worldwide through the world wide web. A service or system
could have a strength in a location like client’s help but might have a weak point or deficiency in
that area too. It uses loan facilities that would bring in greater interest rates in the future. The
many portions of SWOT analysis shouldn't be seen in seclusion. The SWOT analysis is essential
to give direction to the approaching stages of the change practice.
Nike Inc In The 1990s SWOT analysis may be used at an organizational and individual levels. It
may also be utilized in pre-crisis planning and preventive crisis management. It can be utilized
effectively to construct organizational or individual method. A SWOT analysis is an ideal
method to really focus your promotion techniques in manner ins which will drive optimum small
business increase and earnings. It offers an action plan if we put in the time to use it.
Strengths
When we finish our Nike Inc In The 1990s SWOT analysis, we must think about some
suggestions and strategies depending on the results. Before we start the SWOT analysis we want
to do a little bit of study for the understanding of the company and market. SWOT analysis is
typically utilized in part of the tactical planning for the product or assistance. Using the precise
same SWOT Analysis on the labor force is actually rather helpful in keeping business
competitive.
THREATS
A part of manufacturing components is sourced from foreign countries. International operations
are exposed to fluctuations in exchange rates. The purchase and sale of goods are contracted in
different currencies that are not stable over long periods. Such kind of exposure might result in a
loss for manufacturing or selling. The trade market for sportswear and footwear is extremely
competitive. Reebok and Adidas control a lion’s share of the Indian market. The acquiring of
Reebok by Adidas will earn the Adidas group significant competitive advantages across the

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world. The market trend is witnessed by increasing the cost of production inputs and labor costs
supplemented by a highly price-sensitive consumer base. Increasing price rises in the Indian
Economy may spark a cut in consumer spending.
STRENGTH
 Technological skills
 Leading brands
 Channels of distibution
 Relationship with customer
 Quality product
 Scale of operation
 Techniques of management
WEAKNESS
 Lack of technical skills
 Brand weakness
 Poor distibution system
 Poor customer relationship
 Unreliable product
 Small scale
 Insufficient management
OPPORTUNITIES
 Changing customer tastes
 Technological advancements
 Change in government policies
 Lower personal taxes
 Change in population age
 New distibution channels
THREATS
 Changing customer base
 Technological advances
 Change in government policies
 Tax increase
 Change in population age
 Closing of geographic market

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CHAPTER THREE
NEW STRATEGIES
Mission: Nike’s mission is to reach every athlete not only by bringing them inspiration and
innovation but also by providing them a mindset of winners. “To bring inspiration and
innovation to every athlete in the world”, If you have a body, you are an athlete (Nike, 2018).
The “Just Do It” slogan could also be perceived as an inspirational goal, a goal that is attainable
if you wear Nike products. Innovation is also one of the components that the firm works on the
most, aiming to provide athletes with new technological innovations, innovations that are
implemented in Nike’s products. “We dare to design the future of sport”.
Vision Statement: - “NIKE goal is to continue his legacy of modern thinking, weather to
develop products that help athletes of all level of talent to reach their potential or to create
business opportunities that separate NIKE from the competition and provide value to their
shareholders”.
Customer motivations to come online
6c’s Model by Dave Chaffey 2004
Fig-3 6c’s Model by Dave Chaffey 2004

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1. Content:- ‘Right content’ including more detailed product or service information or value-
adding content ‘Right context’ of content for the site visit ‘Right media’ including interactive
services and tools and video
2. Customisation:- Personalisation of content or products to individuals or groups
3. Community:- Customer forums such as for troubleshooting or exchanging tips
4. Convenience:- 24/7 availability Turnaround time After sales service Refund Guarantee
5. Cost Reduction:- Informed perception of lower-cost - no middle man Online exclusive pricing
6. Choice:- Broader range of products / services Additional methods of payment Flexible delivery
including ‘on-demand’ options for digital content Ease of return
Customers expectation
 Service
 Convinence
 Delivery speed
 Price
 Choice
 Safe & secure
Fears of customers
 Security
 Privacy
 Cyber stalkers
 Fake mails
 Hate mails
 Information overload
Digital Planing Model
RACE Digital Marketing Planning Framework
Presented by smartinsight.com

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Situation Analysis
Market Overview
Nike incorporation is the worlds leading sports footwear company. It mostly targeted towards the
athletes, selling related products such as shoes, sporting equipment’s and clothes. Over the past
five years the Athlete and sporting goods manufacturing industry has expected to slow growth
according to the modest growth in the sports participation rate. In the next five years to 2020 end
user will becomes more health conscious, which will improve demand for sports equipment’s.
This industry is highly uneven and characterized by the high level of competition.
While the top players of the athlete industry are expected to comprise less 20.0% of total
industry revenue in 2015 like one of the players is Nike which uses strong brand awareness
among consumers to gain market share. Nike is using vertical operations which includes the
marketing, manufacturing, designing and retailing processes to examine the consumer trends and
to implement new technologies. (Market Research Report, 2015)
In today’s world market of sports, the product is increasing and this market is highly growing in
the U.S. as compared to other countries and it has been expected more than 63 billion in the U.S
in 2014. Consumers purchase various types of products such as athletic footwear, licensed
apparel, exercise equipment but they are not included in recreational shipping. Many of the
products like sports equipment are subscribed through online channels over the internet and have
the highest growth in market share of distribution channels. Across the globe Nike and Adidas
have the maximum profits as well as market leaders in sports goods industry and manufacturing
with 27.8 and 20 billion U.S dollars respectively. (Sporting Goods Industry Statistics & Facts,
2014)
Market Trends and Evolution
Nike’s advertising strategy of using professional athletes to increasing demand was through word
of mouth and also provides good publicity. Nike changes its target market from teenagers to
younger consumers due to intense competition with Adidas and Reebok and also to expand its
target market.
During the time of downturn, customers were willing to pay on the brand because Nike has
superior quality, style, and trustworthiness. Nike succeeded in generating more profit from its
competitors because of its Slogan “Just Do It”. (Deng, 2009)
It introduces digital sports and e-commerce in recent years due to changes in technology trends.
They introduce the Nike+ running sensor in collaboration with Apple Inc. and others like fuel
brands personalize the hi-tech experience for the customers. (Soni, 2014)
Nike launches its products from time to time through innovative advertisements, celebrity
endorsements, successful association and event sponsorships. The company still faces many
challenges in these changing trends and its sale is also falling in the shoes category and increased

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competition. After these chanllenges though it is trying its best to create a good position in the
market and make products according to trends (Aid, 2005).
Consumer Behavior
Nike products are already well-known brands throughout the world, with effective
advertisements and word of mouth, since consumers tend to share their positive feedback with
their friends and family. After buying Nike, consumers learn and experience the quality which
they were expecting. Consumers buy products that are comfortable, make them feel good and
also look cool in it and Nike satisfies them all.
The public feels that Nike over charge its consumers and makes its profits but they should
decrease the prices which can attract the consumers to buy its products. Nowadays, everyone
wants the products which are comfortable to wear, protect their feet and keep away from injury,
without higher quality shoes it can harm our feet and cause injured. Consumers can be influenced
by three perspectives: cultural, social and personal factors. (Consumer behavior in relation to
premium products, 2015).
Young sportspersons can be the target audience for Nike in the future. With its brand, it has the a
powerful position to influence young people by launching the digital platform for engaging the
consumers to join it so that it may improve the relationship with consumers (Kearney, 2009)
To find out the needs and wants of the consumers is a must for a company to creates the a good
relationship. As Nike has done this by providing the good customer service and even when
customer face any type of problem so they can send email to the Nike for gettinf rid of their
problem-related purchasing, Nike would solve their problems within working days and
customers can solve their problems with help of websites and sending them emails. So this has
made positive image of Nike in consumers minds which might increase purchasing decisions and
behavior toward the products. (The consumer decicion process of Nike, 2015).
STRENGTH
 It is a global brand and no.1 shoe maker
 Nike has the joint venture with Apple’s
IPod in continued innovation
 It has strong distribution channels
 It has strong position over its minimal
long term debt
 Has innovative shoe design which
enable consumer to design their own
shoe online
 It has diversified products worldwide
Has strong marketing campaigns and
endorses different products
 Have different segments as baseball,
WEAKNESS
 Its sales highly depend on the footwear
segment
 It has violations in history and they
provide minimal wage rate to its
workers
 Has poor conditions in work places
 It is having bad reputation
 Has higher price compared to its
competitors as Adidas

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golf and footwear etc.
Opportunity
 It can develop products such as sport’s
wear, sunglasses and jewelry
 Its brand can also developed
internationally
 It can support different market events
globally as (the Olympics, FIFA)
 It may have expansion in larger brand
recognition in market
 It can have growing segmentation of
women Athletes’
 It can increase demand and introduce
fashion brand image in market
Threats
 Economic recession and fluctuations
in the currency can lead Nike to losses
 Higher competition as competitors are
becoming more aggressive and
creating
 high quality products
 Sensitivity to price
 Maintaining reputation of eco-friendly
OBJECTIVES
 To increase the 3-4% profitability in each of its product lines (i.e. increasing sales growth by
10% annually)
 To Increase marketing communication tactics
 To produce quality and low cost products
 To meet the demands and requirements of target market (sneakers for young and old age
consumers)
 To make sustainable development of product worldwide(increasing the market share in middle
east)
 To apply continuous marketing strategies to broaden its product range (increasing aerobic
products)
SRTATAGEIS
A. Market Segmentation has following segmentation to create consumers groups to target:
Demographics segmentation: Nike has segmented an age and gender group i.e. it has such
products that serve male and female that has an age range of 15-55 or those who are fitness
freak.
Psychographics and behavioral segmentation: Nike has this segmentation to answer that why
customers need their products and what is the customer interest and purchasing habits. So
regarding this Nike segments its audiance which includes:
• Sports or athletic oriented people
• Active lifestyle(interest in fitness and exercise for recreation) audiance

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Geographic segmentation: On the basis of this, Nike has segmentation to serve its target
customers all over the world. It has major markets in USA, Asia-pacific Europe, Africa but it has
a continuous objective to cater markets in other countries as well like North-America, China,
Japan, and Middle-East etc. (Nike Inc, 2016)
B. Targeting
As for market segmentation, Nike has niche market to serve i.e. its focus and target are athletes
or sportspersons segment and provides them required products as footwear and apparels, which
have quite specific and unique features as compared to normal footwear products. Following are
the some target strategies of Nike: Its target strategies include aggressive marketing to make
aware its target consumers about its product and even Nike make its target customers enable to
get their preferred products through customization process as own signature shoe is offered to
athlete that is it enabled Michael Jordan to have his name Jordan shoes.
Apart from these targeting strategies it includes sponsorship of its products through sports team
or celebrities. It has an objective of styling their product through psychological tactics on target
market by linking accomplishment with apparel that is products are viewed as a victory when
sponsorship is done by athlete celebrities (Marketing strategy of Nike).
C. Market Positioning
Nike has well-positioned itself in the mind of its target consumers as a leader in sports
merchandises. It has made such goods that satisfy its niche market with all merchandises
associated with sports. Its slogan ‘Just do it’ has made an appeal to the target audience to
purchase the product with a sense of motivation and confidence and which has made it a major
competitor in sports manufacturing.
Its positioning statement is ‘For every serious athlete Nike provides perfect shoe or sports
products that gives confidence for every sport activity’ It has following positioning strategies:
• Enhancing athletic lifestyle or fantasy in consumers mind
• Appealing style and attitude
• Positions itself as premium brand with well-designed products
• Appealing quality level and valuable products

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Marketing Mix strategy
A company’s marketing mix refers to the strategies and tactics applied to execute the marketing
plan, with focus on products, place, promotion, and price (the 4Ps).
Nike has the leading role in marketing and has strongest marketing mix. In particular it depends
on Pull strategy; it has established it’s seizing against the big competitors like Reebok and
Adidas.
Product
Nike offers a wide range of products including shoes, apparel and equipment. Currently these are
top selling product categories, all these products clothing and equipment specialized for sports
products (Marketing mix of Nike). The first product of Nike is running shoes. Apart from this, it
offers currently in athletics, baseball, ice hockey, tennis, soccer, lacrosse, basketball products and
has wide range of sports products such as cricket shoes, shirts, and shorts.
Nike NYX and Nike SB shoes offered for the first time in 1987. In 2008, Nike Air Jordan XX3,
basketball shoe was introduced with the high performance, designed for the environment (4P of
Nike). Nike also offers products for tennis, golf, skateboarding, associat on football, baseball,
football, cycling, volleyball, wrestling, cheerleading, activities, and sells shoes for racing and
other sports and outdoor activities as recreational uses. Recent products: Nike has recently intro-
duced cricket shoes are designed to be lighter 30% than its rivals i.e. Air Zoom Yorker and Nike
Air Max designed for the latest addit on to its line skate Nike 6.0. Nike recently shoe tracks the
performance of a corridor on the radio device that connects to the iPod Nano to produce the Nike
+ Apple inc. with the team, while the product generates useful statistics and enables the users to
get value from product (4P of N ke).
Beside this, NIKEID is a sub brand which allows the customers to design their customized Nike
footwear through offering a select on of shoes, what customers want; different colors and fabrics;
they can choose whatever area of the shoes they want. This customization allows customers to
create different designs in large quantities. Customers do not have to design shoes themselves
but have designs that customers can buy a select on of pre made designs. NIKEID’s
customization process and offers are available in Nike’s website (NikeiD).
Pricing
The type of products to be marketed will affect the price of a product. Nike’s pricing strategy is
considered to be competitive than other retailer shoe. The pricing is based on the basis of target
customers as a premium segment. Nike brand commands a high premium. Pricing strategy
makeuse of vertical integration in which they participants at differing channel levels or take role
in operations level more than one channels to control cost and impact product pricing
(Marketing mix of Nike) Nike has become so well known that most people will pay more dollar
for quality products for this product. That is why Nike uses Cost Based/Value Based Pricing
other than its competitors which offer low prices. The target customers of Nike are those who are

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niche and have almost have the financial capability of the product, such as the use of expensive
clothes is a status symbol. This makes the customer want to continue to buy the product of Nike.
Without a high equity brand, like Nike, however, this would not be possible rise in prices
(Blogspot).
Pricing strategy currently used by Nike is like, it may continue to use it. Nike's current customer
currently specify what they would be willing to pay the cost of the product to ensure the quality
and service they receive from Nike. On the basis of the services offered by Nike, to find that
they can compare the quality at a reasonable price from competitor service and prices are fairly
charged (Nike Marketing Plan)
Place/Distribution
Nike shoes are conceded by other multi brand stores and exclusive Nike stores worldwide. Nike
has about 20,000 retail accounts in the US and sells its products in about 200 countries
worldwide. In the international market, independent distributors, licenses and subsidies sell Nike
products. The company has manufacturing facilities worldwide and in Asia, customer service
and other operational units (Nike Marketing Mix). Nike long term plans to open more stores and
franchise to reach target customers and to expand the maximum buyers.
In Nike Town store, shops sell sheep showmanship interested enough to do whatever. Nike town
stores can take the entire city blocks and customers can feel like future or ented. These include
basic shoe stores made during each boasting chandeliers Nike product imaginable. Nike town
product offers a complete experience. This store has all the products, but will not stay there again
create a memorable experience for the customer to bring back again (Nike 4PS).
In the international market, Nike has independent distributors, licenses and subsidaries which sell
its products. To reduce the cost of Nike’s products, it has outsourcing strategy with China, from
developing countries in Asia, such as Vietnam. And to do more business online because Nike
tradition is as spending on online advertising as compared to advertising media, ecommerce and
online marketing contributions are planned to expanded appropriate channels (Nike Marketing
Plan).
Nike has some specific distribution outlets and use them for distributon of its products, following
are the major ones:
• Nike town shop: in big cities of countries, Nike’s outlets are there to serve customers with
products.
• Flagship stores: Nike has contracted with retail stores that has label of flagship of Nike which
serve with high volume of Nike’s products to consumers
• Nike d: it is a Nike’s online store that is website which serves the customers of all over the
world with customization services.

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• Big retail discount stores: The big stores of country also serve with some high demand Nike
products for the target customers.
All these have availability of Nike’s products; consumers who want Nike’s products can get
required products from these distributon methods of Nike.
Promotion
The market ng communications mix is effectve because Nike attracts new customers and creates
balance between keeping existing customers (nike marketing commun cations mix). This is one
of the strengths of Nike. Nike has introduced its offers to almost any environment known to man
and is extremely sensitive. Print advertisement in general, simple but send a strong message.
There is virtually no advertising that appears on their price and Nike are almost always-uses a
popular athlete to promote its product. The Advertisement exceeds the expectations of everyone
wth these shoes and they are able to demonstrate on the rise for consumers (nike 4p).
Promot on of Nike is best; Nike uses Commercials, celebrities or billboards as ways to make its
target customer aware about its offers. But Nike needs other ways for promote on as to
encourage more new products. Then it may use the max environment and can create brand
awareness. Marketing implication is that Nike is a marketing strategy for online ecosystem. This
means that Nike is preparing to cut for television and print advertising, and increasing to the
social media (Nike Marketing Plan).
Nike also sponsors events such as Hoop it Up and The Golden West invitational. Nike’s brand
images, the Nike name and the trademark swoosh; make it one of the most recognizable brands
in the world. Nike’s brand power is one reason for its high revenues and makes other companies
to get sponsorship from it. Nike runs advertising n newspapers and has benefit of creating
strategic alliances.

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Implementat on, Control and Contingency Plan
Implementation of marketing plan
Nike can ensure its correct marketing plan through controll ng procedures of top management
and with proper guidance to all departments of organization. The objectives of Nike can be
correctively achieved by proper check and balance of company’s market share, profit, sales,
budget and continuous analysis of all departments of company so that marketing plan could
implemented and could meet with targets.
Also through proper setting of milestones, budget and department select on to work on objectives
of marketing communication, channels and research then the marketing plan would be executed
initimely basis and with fewer errors.
Contingency plan
If all the set standards and controlling procedures wouldn’t meet with marketing plan execut on
then alternative plan would be there to set the marketing plan, the alternative plan include the
backhouse resources in terms of extra budget plan, remedy for new designs and communication
ways, redefine or redesign marketing plan and strateges.
Figure:- NIKE Annual Report 2018
Nikes annual sales report which shows that after it came to the digital platform it has drastically
improved its sale.

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Conclusion
After going through the existing model and strategies of digital marketing, I founded that Nike
has established its market using tradition strategies successfully but with change in trend,
technologies are getting improved day by day. Looking at its competitors Nike also came out
with digital plans which help them to retain it possition in the market.
Looking at the data collected and analysied, we found certain fears also benefits of consumers
for their online behaviour.
This model suggests that there are four major factors such as customer communication,
marketing audits, planning, and strategy which highly affect behavior and sales. All stated
factors compromises of one major component cost while all factors together lead to brand loyalty
or improve the relationship with consumers. Also, there are sub-parts of each factor which we
need to look at. Here interaction tells about the relation in consumer and seller which can
influence decision making while analysis is for the company purpose where it can check its week
area and can come up with strategies that can sizzle the audience. Under planning we have two
components as reach which describe the reach of the product to improvise the target audience
later. In the strategy column, there is competitivness among other groups which is a must for any
firm to have a check on its competitor and lastly to check whether the goals set in the beginning
were achieved or not.

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The following is the model which suggest the improvements that can lead to better growth and
sales.

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References
Strategic Analysis of Nike, Inc. by A.J. Almaney, Ph.D., March 14,2000
NIKE Revenue 2006-2019 | NIKE Annual report
Nike Inc In The 1990s C SWOT Analysis by Casescholer
Market Plan of Nike by Dr. Rizwan Raheem, 2016
Marketing Plan NIKE Inc. published by Omar Trimeche, 2018-19
NIKE Annual Report 2016, 2017, & 2018