Marketing and Service Management

This study material discusses the marketing mix of Nike in India, including product, price, place, and promotion strategies. It also includes a PESTLE analysis of Nike in India, considering political, economic, social, and technological factors. The material provides insights into the footwear industry in India and Nike's competitive advantage.

Running Head: MANAGEMENT 0
MARKETING AND SERVICE MANAGEMENT

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Table of Contents
Introduction...........................................................................................................................................2
Marketing mix of Nike India..................................................................................................................3
PESTLE analysis of Nike India.................................................................................................................5
Conclusion.............................................................................................................................................9
References...........................................................................................................................................10

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Introduction
In India, footwear industry is one of the growing industries. It is also ruled by “casual
footwear market” that has the capability to make up nearly two-thirds of the total footwear
retail market. The market is also attractive for international players as it provides benefits like
abundant war materials, low cost of production and huge domestic consumption market. The
market is also very price sensitive and it been growing over the year. It has various players
like Nike, Reebok, and Puma. Nike is an American conglomerate that is engaged in design,
manufacturing, development, selling, and marketing of footwear, accessories, apparel,
equipment as well as services (Soni and Kodali, 2011). Nike is one of the biggest
manufacturer as well as supplier of sportswear, athletic shoes and innovative manufacturer of
sports equipment (Richelieu and Desbordes, 2013). By making its presence worldwide, Nike
tends to market is own brand as well as Nike Pro, Nike Golf, Air Max, Air Jordan, Nike
Dunk and Foamposite. Nike also offers the products for Tennis, baseball, cycling, wrestling
and volleyball. Due to the huge dedication of Nike for regular innovation, Nike is able to
sustain its competitive advantage within the footwear marketplace and athletic apparel. Using
innovation ideas in its production process, it is able to become the global champion in the
athletic wear industry of India.
The company was founded in 1964 and in 1971 they got the name “Nike” from the Greek
god of victory. Nike Rapidly increased its market share in the US and by 1980 they had 50%.
Later on, the company has only expanded into the world’s leading athletic brands. Moreover,
the company also diversified into other product portfolios such as selling of clothes, and
offering gear for all types of stores including Lacrosse, Baseball and fencing. Currently, Nike
is operating in 160 countries where their products are sold through about nearly 22,000 retail
accounts globally (fashion-schools.org, 2016).
In the first section of the report, discussion is carried on the marketing mix of Nike in India
that outlines its product, place, price and promotion. Afterwards, A PESTLE analysis of Nike
in India is presented by doing proper research with include various external factors relating to
political scenario, technological trends, socio-cultural impacts, economic aspects and legal
factors having significant impact on the internal competitiveness of firm. In last, a conclusion
is being drawn that summarizes whole of report in brief.

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Marketing mix of Nike India
Nike Inc.’s marketing mix facilitates the organisation international development based on
high-quality products, various distribution places, marketing-focused promotion, and
relatively high prices. The company also believes on its marketing mix to maximise its profit
and growth. Their marketing mix is the amalgamation of tactics and strategies an organisation
adapt to implement its marketing plan in extent with produce, price, place and promotion
(Zott and Amit, 2010). It also addresses the main considerations in the organisation targets
markets around the globe.
Product
In India, Nike offers various products such as apparel, shoes, as well as equipment. All these
products in marketing mix give emphasis on the variety of goods and quality for the
enthusiast of sports. It is one of the market leader in the industry of sportswear. It also able to
get the maximum amount of revenue through selling of sports shoes. By the selling of various
kinds of products, it also makes the special type of shoe for each of the category of sports.
For example- it also has distinctive quality of shoe for the cricket that is around 30% lighter
as compared to its rivals. Due to the changing time, it is not designing as well as selling the
smart and innovative products that are having the capability of connecting to iPod. In
addition to this, NIKEid is also sub innovative brand of the Nike that allows all the customers
to design as well as modify the features of its desired products (Childs and Jin, 2018). This
feature also helps it by attracting a huge number of customers. It also customizes the features
of the desired products according to the requirement. In addition to this, it also offers the new
service of the personal trainer to all the customers for the several categories of sports.
Since the year 2005, it has been the official kit sponsor for the cricket team of India. Nike has
also launched the official website in India with the name Nike.com. This website offers a
varied range of products by including the services such as colour choices, exclusive products
and Nike iD in India. Customers of India now have the access to full collection of products
across categories of football, running, tennis, young athletes, Nike sportswear, women’s
training, basketball, men’s training and Jordan. In the year 2019, Nike has unveiled the BB
Basketball shoe that other footwear industry usually do not offer. The essential aspect is that

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it makes connection with the adapt app of Nike for smartphones (Choi, Lee, and Yoo, 2017).
This also uses the advanced power system of lacing in order to control the fit of shoe.
Price
In India, Nike is the market leader in sports equipment as well as sportswear that employs the
value-based strategy of pricing for facilitating the growth in profit as well as sales of the
company. Using this strategy, Nike is able to measure the value that customers are ready to
pay for each of its products. By this strategy, it also ensures to hold the full surplus of buyers.
The adoption of this strategy has also benefitted the company regularly in increasing its
profits over the past five years. The pricing has also carried out in order to target the
customers of the premium segment. Through this strategy, company also satisfies to the niche
market yet it maintains the loyal customer base by charging premium price for the value-
added products (Dhanapala, 2015). In this way, from the Nike strategy of pricing, it can be
understood that being a market leader, is an essential hand in order to control the prices.
Place
Nike uses several channels in order to sell a wide variety of product to the consumers. These
channels include the Nike online store, retailers, exclusive offline store as well as online
selling with the help of E-commerce. Retailers are the most important places where all the
products of Nike are being sold. In almost every country, it has various manufacturing units
that help it in minimising the logistics costs. It also gets enhanced efficiency in the process of
distribution. The total number of stores across India also poses great competition to Reebok,
Adidas as well as its rival brands. In India, Nike also uses E-commerce websites such as
Amazon and Flipkart for the sake of selling its products (Distelhorst, Hainmueller and Locke,
2016). Through this, Nike gets to highlight it’s almost each of the product that helps it in
reaching out to millions of users all over the internet. The exclusive stores of Nike are
common in almost all the cities and suburb in the country. This also covers the place strategy
of marketing mix of Nike. It is also founded that Nike is the biggest footwear company in
India. Nike India has also decided to restructure its several outlets of strong business division
along with the detailed segment of the customers in family, Bazaar, city, as well as shops. It
is effectively serving in all the areas of India by putting strong emphasis on research and
development. Across all the places of India, Nike has around 15 contract manufacturers that
are located in Tamil Nadu, Karnataka, Madhya Pradesh, Andhra Pradesh, Uttar Pradesh,

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Uttrakhand, Maharashtra, and Haryana (Distelhorst, Hainmueller and Locke, 2016). In all
these places, it has outsourced the manufacturing of its apparel, and footwear.
Promotion
In India, Nike is known for its strong marketing activities and strong branding. This is
because all the promotional strategy in the marketing mix of Nike is extremely aggressive,
comprehensive as well as make use of all the media and tools of marketing. In India, Nike
carries out its promotion through the online campaign over Instagram, YouTube, and
Facebook that helps it in reaching out to the millions of the fans. Nike also engages the
sports stars as its brand ambassadors in order to make a great impact on the mind of
customer’s through various promotional campaigns and various advertisements. Nike also
grabs several opportunities to project its brand by sponsoring it to several marathons, and
International events like NBS basketball championship. In addition to this, Nike also spends
huge amount to show its presence over the kits in several football clubs. By doing this, it
employs great coverage of media through electronic, social, and print media for promoting its
brand image using pull and push strategies. For promoting its brand, it also provides timely
discount as well as bulk discount through its online and offline stores that help in attracting
the millions of customers each day.
Mega cricket campaign has been recently launched by Nike with the name Bleed Blue Pledge
that shown the passion, pride, and fearless soul of the entire Indian cricket (Ghosh, Ghosh
and Ghosh, 2016). In this way, leading companies such as Nike is effectively involving the
customers.
PESTLE analysis of Nike India
Despite being one of the effective and biggest sports apparel and accessory organisations in
existence, Nike has to keep a high guard in its extremely competitive market. With the help
of Pestle analysis, the company future scope, standings and potential growth can be evaluated
in respect with their external business environment having significant impact on their internal
capabilities (Aithal, 2017).

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Political factors
Political factors are especially significant to the backend of an organisation where most of
political changes impact on company production of goods as well as its profitability. India
government had featured the dominance of local brands as well as local apparel production
within the nation in order to develop the apparel industry of India. This policy has led to the
increment in resistance towards the entry of outside brands into the country. Several rules
also stated that operation or functioning of various foreign brands into the country requires
the agreement with Indian partner. In late 1990, linearization of the economy of India and
overcome all the restrictions of International foreign brand has been removed (Kaura, 2018).
This move or favourable approach has helped Nike in a greater way to expand its wings in
India by establishing fully owned and independent subsidiaries for increasing its presence in
the market. Besides this, elections every five years do not impact Nike too much as it does
not get impacted. In addition to this, minimum wages, stable currency, hygienic working
conditions are also some aspect that Nike is required to adhere to. It is also one such reason
that most of the players are shifting their base of manufacturing to India through the
retainment of research & development at their home country.
Economic factors
All the economic factors put the major impact on the operations as well as sales of Nike. Nike
sells well-respected medium range products and thus the company are less exposed to
economic factors in comparison with others. The purchasing power of customers, inflation
rate also affects the revenue. It is also founded that world economy has suffered a huge
recession in the last few years. It is also founded that growth in the sports industry of India
has also got a huge growth in recent years. Due to this, India sports industry has also become
the fastest growing industry all over the world. In addition, the revenue of sports form
advertisement has reached to the 7300 Crore as per the Sportz power and GroupM (Mathur,
2019). From the report recently, it is also founded the sports industry of India can become the
$10 billion industry in the next 6 or 7 years. It also offers a positive aspect to Nike for
growing and expand it more wings in the Indian market.

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Social Factors
In today competitive business environment, public relations plays an important role and a
good social status means a lot for modern business enterprises. The young generation of India
is taking rapid professionalism and involvement in sports. It has led to the success of
marketing campaigns in India. Due to this, fitness and exercise clubs are also getting huge
attention and reputation in India. This upsurges the quality sports equipment and apparel
prospects of development and growth. In addition to this, Indian people also taking keen
interest in sportswear that is regularly increasing the revenue of Nike. India has rapidly
caught with the global trend for fitness (Mishra, 2017). Due to the changing lifestyles,
growing wealth of country and rise in urbanisation, it is adding several positive aspects for
the Nike India (Sarulatha and Sasirekha, 2017). From the report, it is come to know that by
the year 2020, increment of around 12 per cent is expected to reach. All such positive aspects
can lead to huge growth in Nike.
Additionally, due to the problem of obesity, Indian government has also taken the initiative
for fitness. Government of India has also announced the 21st June as Internal Yoga day.
Besides this, India Rio De Janeiro Olympic medal also push the people for fitness.
Technological factors
Any company can attain the ability to innovate with following trends technological trends in
the industry and proactively adopt with it. It is true that technological factor such as social
media can affect the business in a great way. In India, Nike has been contributing well
through the effective adoption of social media strategies. For example- on Facebook, Nike
has more than the 27 million followers that can be seen as the reflection of huge popularity. It
has opened various channels for engaging and accessing the customers. In addition, Nike 360
air max is proved to be the example of innovation in the country. The proper investment in
research and development also assist Nike in bringing innovation (Rashid and Byun, 2018).
Advantages of the design, economies of innovation, differentiation, and segmentation have
led to the various development in Nike India. Nike in India also takes various advantages
from its strong international presence and leadership status. Besides this, sportswear firms of
India like Nike are using newer technology to turn the trash into apparels, and shoes. The new
innovative shoe of Nike has suggested that the batteries in the shoe which gear train, power

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the motor and also makes connectivity with the LEDs, phone with the last 14 days (Mathur,
2019).
Environmental factors
These factors are ever-growing importance in today’s scenario. Moreover, sustainability is a
major part of corporate responsibility. In India, Nike maintains a positive relationship with
the green. In India, Nike has also collaborated with the magic bus in order to develop life
skills and building the awareness of children’s through sports. Girleffect.org is also one such
foundation that is managed by Nike foundation. These initiatives have empowered around
1000 girls. In India, previously there was no such law that forces the companies to spend
money on the activities of CSR. However, at the end of year 2013, Indian government made
the rule that each company is required to spend at least 2% of their profit in the activities of
CSR (Singh, Singh and Sharma, 2016). In India, Nike spends lot of amount on the CSR
activities. Besides this, Nike also spends around ten million worldwide for improving the
supply chain. Nike is also quite worried about the carbon footprint, as well as regarding how
its brand affects the environment. In the recent year, it has reduced the carbon footprints by
doing investment in innovative operations and products. Nike has set the target to reach the
100% renewable energy for itself by the year 2025.
In the innovative manufacturing model, Nike has kept the workers as well as their voice at
top. It has also set the code of conduct for all its suppliers. Nike as an innovative company
reuses the waste material in order to create value. Recently, the waste material left is used in
making the Nike shoes for tennis courts, Nike shoes and athletic tracks (Sharma, 2017).
Legal factors
The Indian government for sports industry makes several rules and regulations. Government
has been putting pressure on the sportswear to reduce pollution and adhere to the guidelines
of corporate social responsibilities. Nike across different regions of India is now making
various efforts to use less plastic and use new technologies. By adhering with the laws of
Indian government, almost all the products of Nike is made up of the recycled material. In the
year 2015, news came that stated that Nike was facing the struggle over intellectual property,
copyright, and brand reputation (Shukla, 2019). As per the laws, Nike India has also fired
around 20 per cent of the employees as a part of their downsizing exercise. Due to their

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negative impact on the organization and government policies, it makes the decision to fire
those employees.
Conclusion
In the limelight of above discussion, it can be concluded that Nike has been growing well in
India. Sports industry of India is also growing quite well that requires huge respect. Due to
the support of government also, Nike is able to maintain the remarkable growth in India. Due
to adoption of strong CSR, Nike has been strongly committed to making the improvement in
the quality of life for people. It also effectively reduces waste as well as improves efficiency.
By ensuring the wide range of products with better quality, it effectively serving the different
regions of India. It has been founded that the increasing concern of Indian people in
sportswear will also lead to the various improvement in Nike. In recent time, it is making
several changes in its products as per the changing demand of customer and technology.
In addition, there are more followers with Nike on its social media than all of its competition
and is able to target particular audiences with the help of multiple pages, such as Nike
Women or Nike Football. The company also extends a greater length for its corporate social
responsibility with raising sustainable practices and also enhancing physical activity and
innovation.

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