Comparison of Nike and Clarks: Financial Performance, Digital Strategy, Customer Experience, and Marketing Mix

This report compares Nike and Clarks on various aspects such as financial performance, digital strategy, customer experience, and marketing mix. It analyzes their sales during the COVID-19 pandemic, digital strategies, web customer experience, and social media presence. It also includes a SWOT analysis of both brands.

FBUY1003 INTRODUCTION
TO FASHION BUSINESS

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Nike..................................................................................................................................................3
Background..................................................................................................................................3
Evidence of financial performance..............................................................................................4
Digital strategy analysis...............................................................................................................4
Web customer experience analysis..............................................................................................4
Social media analysis ..................................................................................................................5
Clarks...............................................................................................................................................5
Background..................................................................................................................................5
Evidence of financial performance..............................................................................................5
Digital strategy analysis...............................................................................................................5
Web customer experience analysis..............................................................................................6
Social media analysis ..................................................................................................................6
Swot analysis of Nike and Clarks................................................................................................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Fashion business is the most growing business. It includes clothing, footwear,
accessories, cosmetics, bags etc. Nike is the multinational sport shoes and apparel company.
Clarks is the shoes company which is known for its unique designs. This report will discuss the
comparison of Nike and Clarks on the basis of financial performance in covid 19, digital and
social media strategy, customer experience, swot and marketing mix.
MAIN BODY
Nike
Background
Nike is the American multinational company. It is involved in manufacturing and
designing footwear, equipment, clothes, accessories etc. it is worldwide known for sport shoes
and clothes. Along with sport shoes it also produces various sports equipments (Thorisdottir and
Johannsdottir, 2019). It is said to be most valuable brand in sports business. This company has
given employment to many people around the globe. Their main products is the track shoes.
Evidence of financial performance
Company says that they are experiencing more sales and profits despite of covid 19.
World largest company in producing athletic gears witnesses growth in sales and company is

expected more sales in the future as well because of increase in the online shopping (Nike sales
return to growth after online shopping boom., 2021). Demand for their products are increasing
with time. Sales of Nike raised with 9%.
Digital strategy analysis
Covid 19 has pushed e-commerce industry. Nike says that more than 50% of their
business is coming from online sales only. It is because of the effective digital strategy which is
made by the company. Pandemic provide push to the digital business of Nike but it is not only
because of pandemic only but it is because of strategic decisions which is taken by the company.
With the combination of digitalization and innovation Nike is able to experienced growth in the
business. Company is also focusing on their website (Goworek and et.al., 2018).
Its website is user-friendly with easy features. Customers can easily purchase from the website
and company also provided easy payment options. Nike has also launched digital products like
watches which has also helped company in attracting more customers. Company has also started
wholesaling business which has given push to their sales. Company also closed it many
department stores because those days are gone where everything is purchased by customers
through physical stores. Nowadays customer prefer online purchase and in covid times they are
ignoring going outside.
Web customer experience analysis
Customer experience analysis is done so that company can come to know that customers
are satisfied with their products or not (Guercini and Milanesi, 2017). Nike knows how to give
good customer experience. They build relations with customers via phone application. It is the
retail strategy of the company to give good experience to customers and now it has become part
of the customers life. Website of company is easy to use and customers can easily gain access
over it. Mobile application of company gives everyday workout reminder to the customers. This
give customers the feeling that company is caring for them. This helps company in increasing
sales because existing customers retained with company and also bring new customers through
word of mouth publicity. Nike is implementing retail innovations. Under which Nike will come
with live retail stores. This will enhance customer experience who is the member of Nike plus
loyalty program.

Social media analysis
Nike has presence on all social media platforms which include Facebook, Instagram,
twitter, you tube, Pinterest etc. company has created separate pages in order to target their
audience. Company also organize social media campaign. This is all promotional activities
which is undertaken by the company (Lo and Ha-Brookshire, 2018). Company is investing good
money in improving their content. Nike post images and videos on regular basis on social media
so that customers can get information about new products or the discounts which are introduced
by the company. Company believes that content should be of good quality because that will only
help in attracting targeted audience.
Clarks
Background
Clarks is the multinational shoe manufacturing and retail company. It is the British
company and having its headquarters at England. Company is having many stores around the
world with many franchises. Company also sells their products with third party distribution.
Company manufacture all kinds of shoes which include long boots, heels, ankle boots which is
made from calf suede leather. Company have huge staff which operate their stores globally.
Evidence of financial performance
Clarks was already in the problem before covid 19 only but the pandemic has increased
their difficulties more (British footwear brand Clarks sees 20% drop in sales due to Covid-19
outbreak., 2020). Management of company declared substantial losses in the year 2020.
Company is facing issues because of multiple situations like uncertainty in global market,
reduction in footfall and increasing popularity of online shopping. Company's sales drop by 20%
because of coronavirus. Statement comes from the company that they had experienced 15-20%
less sales than the previous year.
Digital strategy analysis
Clarks are also aware with the advantage of e-commerce platforms. Company has also
invested in digital, and they are also experimenting technology at their physical store (Gupta,
2018). Its physical stores are equipped with Wi-Fi and I pads which can give customer good
shopping experience. Although Clarks is also doing their best to adopt digital technology but it is
not that effective like Nike. Website of the company need some improvements whereas Nike
website is user-friendly and easy to use unlike Clarks website.

Web customer experience analysis
Company and customer interactions via their website helpful in creating positive
customer experience and build long time strong relationship. To bring good experience to
customers company has installed I pads which give messages to the stock room to bring
particular size of the shoes but this function is operating in concept stores only. This is the
weakness of Clarks that they provide facilities to limited stores only. Whereas Nike does not do
like that. Nike ensures that they provide same facilities to online as well offline customers so
that each and every customer of company can get better shopping experience. To enhance
customer experience Clarks has also came up with mobile payments so that customers do not
have to stand in queue for making payment.
Social media analysis
Clarks also have presence on social media and company use social media platforms in
order to communicate with their customers (Muniesa and Giménez, 2020). Company give
answers to the query of customers. Company also share reviews of customers on their website or
social media pages in order to increase their sales. This ensures transparency in the content and
which builds trust within the customers. In this pandemic situation company is more active on
social media so that they cannot losses connection with their potential customers. Whereas Nike
is also very active on social media but their social media activities are more effective than
Clarks.
Swot analysis of Nike and Clarks
elements Nike Clarks
strengths Nike is the recognized brand
and have strong brand image.
Company have huge customer
base which helps company in
generating more revenue.
Company have professional
team which design athletic
shoes (Serrano, García and
Rodríguez-Peral, 2020).
Clarks is using premium
pricing strategy which helps
company in getting high
margins. Company also have
strong balance sheet which
results in company investing in
diverse projects. Company also
have good relations with
suppliers which ensure

effective supply chain.
weaknesses Nike manufacture their shoes
in different countries and have
to face poor labour conditions
in those countries. Company is
highly dependent on US
market despite of their global
presence. Lack of
diversification is their biggest
weakness.
The Biggest weakness of
company is lack of resources
as company only focus on
sustainable competitive
advantage. Company is lacking
in resources like physical
resource, financial resource,
human resource etc. company
is also not able to give
satisfaction to their customers.
opportunities Nike is already present in
many countries but still there
are possibility of sales in other
countries as well where it is
not present. Nike can launch
innovative products in the
market which are technology
based.
Globalization has opened
many opportunities for
company (Gürel and Tat,
2017). To increase their
market share company can
operate in developing
countries. Adopting advance
technology is other
opportunity.
threats The Biggest threat is covid 19.
increasing fear of coronavirus
is affecting sales of the
company. Although Nike is
dominating this industry but
there is constant fear of rival
firms. Company has also
indulges in patent disputes
which also hurt their brand
image.
Social media and e-commerce
industry has increased
competition for the company.
Covid 19 is giving constant
threat to the company.

Marketing mix of Nike and Clarks
elements Nike Clarks
product Nike has wide product
portfolio which include
athletic shoes, apparel,
accessories etc. they
manufacture products for both
men and women.
Clarks focus on providing high
quality of products. As they
use raw materials of good
quality and from trusted
suppliers (Abdel-Basset,
Mohamed and Smarandache,
2018). Company offers large
variety of shoes which helps
them in reaching towards
target markets. Their products
are available in many different
sizes.
price Company charges high price
as compare to their
competitors. The reason
behind this is their high quality
of products. So they had
adopted premium pricing
strategy.
Company has adopted hybrid
strategy in order to get
maximum value of the
products. Hybrid strategy
encourage sale as it comes
with favourable quality
perception. Premium price
gives high value and privilege
to the company. Although
pricing range from different
geographic regions.
place Nike sells their products
internationally through offline
and online channels. Company
have strong distribution
Company sells their products
from their physical stores
which is managed and
controlled by company's

network which helps company
to never go out of stock.
management. On stores
company communicate with
customers and take their
feedbacks. Company sells their
products online as well.
Company also sells their
products through supermarkets
and hypermarkets.
promotion Nike is the unique brand and
so its logo which helps in
attracting customers. Company
uses traditional method of
marketing like TV,
newspapers etc. and also
modern method of marketing
like digital marketing for
promoting their products.
Company advertise their
products through various
social media platforms as well.
They give rewards to their
customers in order to increase
the sale. Magazines are also
used for promotions.
people Human resource is the most
important asset for the
company. Company fulfil their
employee needs in order to
gain competitive analysis.
Their workforce are skilled
and experienced.
Company believes that happy
employees will build good
customer relations. They give
training to their employees so
that they develop skills and
can perform job effectively.
process Nike has outsourced their
external suppliers. Company
highly focus on marketing
which is the main reason for
company's fast growth.
Company is also involved in
For operational process
company use online portals.
Company have process to
maintain and manage quality
(Thabit and Raewf, 2018).

research and development in
order to attain more growth.
Physical evidence Physical infrastructure of the
company, their physical stores
and packaging all comprises
physical evidence.
Atmosphere of store is
pleasant which give good
customer experience.
Recommendations:
To fight from covid 19 crisis Clarks have to make strong strategy. Pandemic has
decreased sales of the company so adopting effective strategy will only help. Clarks should focus
on online sales. As it is trending and also helping company to get good sales in coronavirus
situation. Whereas Nike is doing good and witness increased sale despite pandemic but adoption
of advanced technology at right time can help company in generating more revenue.
CONCLUSION
Through this report it can be concluded that covid 19 has impacted negatively on many
businesses. Businesses are shut down because of covid 19. Nike is able to generate profits
because of their good strategies and selling products online. Clarks has faced downfall due to
coronavirus as their sales decreased. Report will show comparison of these two brands.

REFERENCES
Abdel-Basset, M., Mohamed, M. and Smarandache, F., 2018. An extension of neutrosophic
AHP–SWOT analysis for strategic planning and decision-making. Symmetry. 10(4).
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Goworek, H. and et.al., 2018. Managing sustainability in the fashion business: Challenges in
product development for clothing longevity in the UK. Journal of Business Research.
Guercini, S. and Milanesi, M., 2017. Extreme luxury fashion: business model and
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Gupta, S., 2018. Driving digital strategy: A guide to reimagining your business. Harvard
Business Press.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International Social
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Lo, C.K. and Ha-Brookshire, J. eds., 2018. Sustainability in Luxury Fashion Business. Springer.
Muniesa, R.L. and Giménez, C.G., 2020. The Importance of the Loyalty of Fashion Brands
through Digital Marketing. Journal of Spatial and Organizational Dynamics. 8(3).
pp.230-243.
Serrano, B.A.P., García, F.G. and Rodríguez-Peral, E.M., 2020. The network strategy of a
fashion brand. Revista Latina de Comunicación Social. (77). pp.33-53.
Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case
study. International Journal of Social Sciences & Educational Studies. 4(4).
Thorisdottir, T.S. and Johannsdottir, L., 2019. Sustainability within fashion business models: A
systematic literature review. Sustainability. 11(8). p.2233.
Online
British footwear brand Clarks sees 20% drop in sales due to Covid-19 outbreak., 2020. [online].
Available through: <https://in.finance.yahoo.com/news/british-footwear-brand-clarks-
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Nike sales return to growth after online shopping boom., 2021. [online]. Available through:
<https://www.ft.com/content/2f2d486d-7874-406b-8c60-05487092dd60>