The Market Analysis of NIKE Report

Running head: MARKETING STRATEGY AND PLAN
Marketing Strategy and Plan
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1MARKETING STRATEY AND PLAN
Executive Summary
This current report focuses on the market analysis of NIKE. This is an U.S based organization
that offers athletic products and accessories. However, their shoes are unique with other
organization that provides comfortable to the customers. On the other hand, their sales revenue
generation is high in the global market and they have high market share in the global footwear
industry. The main target market is athletes. In the year 2017 their net profit is 12.34% that
ensures their high growth in the global market. However, this organization has achieved a
valuable position the footwear industry and established a good customer relationship.

2MARKETING STRATEY AND PLAN
Contents
Introduction......................................................................................................................................3
Marketing Goals and Objectives.....................................................................................................4
Sales Objectives...........................................................................................................................4
Profit objectives...........................................................................................................................4
Pricing objectives.........................................................................................................................5
Product objectives........................................................................................................................5
Market Research..............................................................................................................................6
Analysis of Target Customers and Competitors..............................................................................9
Target customers of Nike.............................................................................................................9
Competitors of Nike..................................................................................................................10
7P’s of Marketing..........................................................................................................................12
Financial Information....................................................................................................................14
Conclusion.....................................................................................................................................16
References......................................................................................................................................17

3MARKETING STRATEY AND PLAN
Introduction
Nike is an American company which is engaged in the manufacturing, development,
design, sales and marketing of apparel, footwear, accessories, various equipments and services.
The company tried to focus on the culture of invention. Nike manufactures products and services
for the athletes. The company has various ranges of sports equipments. Recently, the company
has introduced cricket shoes and it is trying to develop and expand in this segment. Nike also has
a wide collection of sports products and assortments. The company has also collaborated with
Apple Inc to produce Nike+ product. The company has it’s headquarter in Washington. It is a
global leader in sports and other assorted sports product. The company has expanded its business
and diversified its product line through various kinds of acquisitions such as Converse Inc, Cole
Haan, Canstar Sports and many more. The company also sells sports technology accessories such
as high altitude wrist compasses, portable heart monitors and many more. The success of the
company is owed to endorsements by different athletes such as Roger Federer, Michael Jordan,
Mia Hamm, Tiger Wood. The chainstore of NikeTown was opened in the (Nike, 2017). The
company has expected 80% of the growth from certain cities such as Mexico, Barcelona, Paris,
Milan and Seoul. This paper will highlight the sales and growth of the company. The target
customers and the competitors of Nike alongwith the 7Ps of marketing are discussed in the
paper. Nike has also conducted research and development to identify the various changes in the
development of new product, redesign and improve the existing products and adjust according to
the preference of the customers.

4MARKETING STRATEY AND PLAN
Marketing Goals and Objectives
Sales Objectives
 Nike is putting greater emphasis on the consumers directly to improve the sales
and growth. This includes selling the product in the Nike stores or selling them in
the online stores.
 The company has tried to achieve 9% CAGR on the basis of revenue earned by
the company in the recent years. Nike has targeted to achieve the $8 billion sales
by 2017 in comparison to $4.3 billion sales in 2013.
 The company has targeted to increase its sales from the stores. The company is
trying to add $20 billion in the next five year period (Nike's Revenue, 2017).
 The company has targeted the women and this is regarded as one of the massive
business opportunity.
Nike wanted to expanded its business on two core items i.e. tights and sports bras. It has also
planned to debut a new technology in the footwear section by the end of 2017. The growth of
Nike implies that athleisure is the main trend of the company and this will help in the expansion
of its business. The company is also trying to focus on international sales especially from the
BRIC country (CNBC, 2017).
Profit objectives
The brand value is the most powerful asset of Nike. According to the data of 2015 the
revenue generation of NIKE was $1 billion. The recent profit strategy is to double this profit by
2017. However, this organization aims to increase their fiscal property by $23 at the end of
2017. Gross profit margin refers to revenue percentage that is used to cover the business

5MARKETING STRATEY AND PLAN
operations and other expenditure. In the context of NIKE their gross profit margin was 45.97%
in the year 2015. In the year 2016 it has increased to 46.24%. However, in the year 2017 it is
decreased by 44.58%. On the other hand, operating profit margin of NIKE was 13.64, which has
improved in the year 2016 that was 13.91%. On the other hand, this is deteriorated in the year
2017. Net profit margin is the vital part of the profit margin that indicates the net profitability of
the company. In order to calculate the net profit net income needs to divide by revenue. In the
year 2015 net profit of Nike was 10.7% and in the year of 2016 it increased to 11.61% and by
2017 it is improved to 12.34%. This ensures the significant growth of NIKE (Stock-analysis-
on.net, 2017).
Pricing objectives
 To introduce the new pricing strategy to enhance the sale
 To use high pricing strategy to gain profit
 To understand the customer value to set the pricing stratgey
An organization sets their pricing strategy in order to obtain their particular objectives
(Kireyev, Kumar & Ofek, 2017). In the year 2014 NIKE has introduced a new pricing strategy to
enhance their sales in the global market. This organization has conducted a market analysis in
order to identify the brand value of that is given by the customers. However, this organization
follows the premium strategy and has introduced a high pricing strategy in the year 2014. They
have raised their price by 4% to 5% per year. Rising price ensures the long-term advantages in
footwear industry. This pricing strategy is helpful for such organization to gain profit from the
U.S. NIKE has a good understanding about the customer value. This is suitable for the company
growth and statistical data shows that their athletic footwear sales sale is increased by $168 in
every year (News.nike.com, 2017).