Marketing Management for Nike

Marketing
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Marketing 1
Content s
Introduction......................................................................................................................................3
Overview of the company................................................................................................................4
Current market position...................................................................................................................5
Market segmentation...................................................................................................................5
Targeting strategy........................................................................................................................5
Positioning...................................................................................................................................6
Customer-based equity model.........................................................................................................6
Marketing objectives.......................................................................................................................8
Target segments...............................................................................................................................9
Three Target segments.................................................................................................................9
McKinsey’s strategic three-year horizon...................................................................................10
Marketing mix...............................................................................................................................12
Product strategy.........................................................................................................................12
Price strategy.............................................................................................................................14
Place/Distribution strategy.........................................................................................................14
Promotion strategy.....................................................................................................................15
Conclusion.....................................................................................................................................17
References......................................................................................................................................18
Appendix........................................................................................................................................21

Marketing 2
Appendix 1.................................................................................................................................21
Appendix 2.................................................................................................................................22
Appendix 3.................................................................................................................................22

Marketing 3
Introduction
The aim of the report is to explore the concepts of the marketing manager for the selected
company. The company that has been selected for the analysis is Nike, which is a multination
company that is engaged in designing, developing and manufacturing of footwear, apparel,
equipment, accessories, and services. The marketing consultant has prepared a report that
includes the five major aspects of marketing management.

Marketing 4
Overview of the company
Nike is well known American Multination Corporation that indulges in designing, production,
marketing with the trades of footwear, accessories, equipment, apparel, and services. The
company was originated by Bill Bowerman and Phil Knight as Blue Ribbon Sports in the year
1964. This has been found that in 2014, the Nike brand was appreciated at $19 billion due to
which it is considered as the most valuable brands among the sports-related businesses (Nike,
2018). In addition to this, the company implement the acquisition strategy that reduce the
competition, enhance the brand value and deals with the competition. This has been witnessed
that the company has acquired footwear companies like Cole Haan, Umbro, and many others.
However, the company sold Umbro in 2012 and Cole Haan in 2013, along with this company has
a subsidiary of Hurley international. The company is considered as the world's largest dealers of
athletic shoes and apparel with a dominant producer of sports equipment.

Marketing 5
Current market position
The examination of the current market position of one of the Nike products is done with the help
of different marketing models and concepts. The product whose market position is examined is
footwear that majorly includes shoes that are offered by Nike.
Market segmentation
Segmentation is the process that helps the company in dividing mass markets into different
groups with identical and diverse wants (Chernev, 2018). Nike makes use of segmentation to
determine the customers that are valuable for the company. These customers are those to whom
the company likes to offer the products. (Refer Appendix 2)
 Psychographic segmentation: - This segmentation divides the market because of people,
lifestyles, social and personal characteristics (David, 2011). Nike segments the people
with different age group who maintain the athletic lifestyle. In addition to this, people
who prefer athletic wear in the world are also segmented.
 Demographic Segmentation: - Demographic segmentation is based on the variables,
which include age, income, family, size, and many others. The footwear prices that are
offered by Nike are generally high and middle. This is the reason it targets people with a
medium and high-income group with all age groups. The age group that is majorly
segmented by the customers starts with 18 years and goes 55 years and more.
Targeting strategy
Once Nike brand segments its customers then it decided the target audience on which they want
to focus the most. Nike brand makes use of multi-segment strategy, in which the company