Marketing Communication of Nike: IMC Planning and Situational Analysis

This report discusses the marketing communication of Nike, including IMC planning, situational analysis, SWOT analysis, and marketing mix. It analyzes the internal and external environment of the company for sustainability.

Running head: MARKETING
MARKETING
Name of the Student
Name of the University
Author Note

1MARKETING
Executive Summary
In this report the marketing communication of Nike is discussed. Nike is a brand which
develops the IMC planning to analyse the internal and external environment of the company.
Nike is selling its products online to expand its business globally to many potential
customers. The IMC plan includes the SWOT analysis which determines the strength,
weakness, opportunity and threat for analysing the future of the company. The pest analysis
helps to analyse the external environment and determine possible approaches for expansion
of its products and to introduce new product line. The situational analysis helps to determine
the problems faced by Nike in the competitive world. The purpose of the study is to analyse
the internal and external environment for sustainability of the firm.

2MARKETING
Table of Contents
Introduction................................................................................................................................3
IMC plan....................................................................................................................................3
IMC planning process................................................................................................................4
Environmental Analysis.............................................................................................................5
SWOT Analysis of Nike............................................................................................................7
Marketing mix of Nike...............................................................................................................8
Internal and External Analysis.................................................................................................10
Conclusion................................................................................................................................15
References................................................................................................................................16

3MARKETING
Introduction
Marketing communication are the techniques that are used by the organisation or
individuals to promote others for promotional information about the products, brands and
services. The marketing experts develops the design for various types of persuasive
communication either directly or indirectly to the targeted customers. The marketers uses
effective tools for marketing communication to create brand awareness for the potential
customers (Bibby, 2015). In this report, the design of market communication objectives and
channel for Nike product is designed. As a Marketing Communication Executive, IMC
planning and situational analysis for Nike is developed. The strategic plan for promotional
budget and promotional mix to succeed in effective communication for the product.
IMC plan
Integrated marketing communication plays prior role in interpreting message to the
end-users through several channels to attract customers in an effective manner. The IMC
planning helps the organisation to implement effective communication that can provide with
the potential of the business to get better results by advertising and conducing campaigns
(Blakeman, 2018). This also helps in minimizing cost of marketing of a product.

4MARKETING
IMC planning process
Reviewing of marketing plan
Analysing the situation for all promotional programs
Analysing the communication process
Determining the budget
Developing the integrated marketing communication
program
Adverti
sing
Direct
Marke
ting
Sales
prom
otion
Public
Relati
on
Perso
nal
selling
Adver
tising
Objec
tives
Direct
marke
ting
objec
tives
Sales
promoti
on
objectiv
es
PR
objec
tives
Perso
nal
selling
objec
tives
Message
Strategy
Direct
Marke
ting
Strateg
y
Sales
Promoti
on
Strategy
PR
Strate
gy
Personal
selling
strategy
Media
Strategy
Integrating and implementing the strategy for marketing
communication
Monitor, evaluate, and control the integrated marketing communications
program

5MARKETING
Step 1. Review of Marketing Plan:
It is used to determine the company’s current position in the global market before
developing a promotional programme. The marketing plan is the written document which
shows the company’s overall marketing strategy and programme that helps to determine the
product line. The details of the situational analysis of Nike which shows an internal
marketing audit and an external analysis of the competition and the factors affecting the
business environment. Nike is a leading apparel company and sports footwear (Brohi, et al.,
2016). Athletes are its target market and it sells shoes, sports equipment and clothes. In past
five years, manufacturing of sports and athlete goods has tremendously slowed down
according to the growth rate in sports segment. But Nike’s demand in sports goods has
increased over the period. Customers are more health conscious, this increases the demand
for various athlete equipment’s. Nike has strong brand awareness strategy among consumers
to gain more market share. It has vertically integrated operations such as manufacturing,
marketing, designing and retailing process. This vertical approach is to examine the trend of
consumer and to introduce newest technology (Copley, 2014). It is widely expanding and it
has projected more than 65 billion in 2018. Customers like to purchase athletic footwear,
exercise equipment, athletic apparel, and many more but these are the recreational
transformation. Most Nike’s products are sold online and its distribution channel has highest
growth in market share (Duncan, 2013). Many consumers like to shop in stores rather than
online.
Environmental Analysis
PEST Analysis of Nike
Political:
 Nike’s internal procedure is hampered by employee laws and worker rights.

6MARKETING
 The government policies helps in the growth of Nike.
 Nike handles its legal issues which affects the production.
 Nike takes the help of foreign countries and government to make the products.
Economic:
 Nike provides employability when there is high growth of economy.
 Due to company’s economic slowdown customers can be affected and this also
lessens the confidence of customers for the products.
 Nike can have risks of exchange rates, interest rates and currency.
 Increase in material prices and other labour cost for improving the living standards
can also affect the product sale of Nike.
 Many countries sponsors Nike.
Social:
 Customers are being more loyal for the brand and they are more conscious about the
brand which benefits Nike.
 Customers are more health conscious and participating in sports has increased the
demand of Nike’s sports products.
 Increase in the market share of female customers also benefit Nike.
 Nike can expand its product range by diversely considering demand and preference of
customer.
Technology:
 New technology affects Nike as it is used in the process of making specific products.
 The unique design of Nike can be made through new technologies.
 It facilitates with online channels for shopping in new digital trends.

7MARKETING

8MARKETING
SWOT Analysis of Nike
Strength Weakness
Nike is world- wide famous and top in shoe
categories
Nike has joint venture in the era of
innovation with Apple’s IPod
Nike has strong distribution channel with
strong position in the market
Nike has access for designing shoes online
for the customers to innovate shoe design
Nike has diversified the products worldwide
It usually conducts campaigns to endorse its
products
Nike’s main sale is footwear
Nike has faced many obstacles in past and
violations which say they provided minimal
wage to their workers
Work environment is very poor
Nike has bad reputation to some extent
It sales its products in high price as
compared to its competitors
Opportunity Threat
It can expands its product line by adding
sport’s wear, jewellery and sunglasses
Nike brand can also expand its business
internationally
Nike can sponsor many market events such
as FIFA or Olympics
Nike can have the possibility to grow its
women athletes’ segmentation
Nike can also introduce fashion brands
Nike can have a threat of economic
recession and the level of fluctuation in
currency can result in loss
Nike has higher competition who develops
high quality products
Nike has price sensitivity

9MARKETING
Marketing mix of Nike
Nike has established its brand image and has strong marketing mix. Nike believes in
pull strategy. It has seized against big competitors such as adidas and reebok.
Product
Nike offers various products such as apparel, equipment and shoes with wide variety
range. These are top selling products of Nike. Nike focuses on sports products in clothing or
equipment segments. Nike produce running shoes, and offers athletics, tennis, basketball,
hockey, baseball, soccer and lacrosse products which includes sports products (Đurić and
Trajkovic, 2016). Nike Air Jordan XX3, introduced basketball shoe proposing high
performance rating which is designed for aiming the market environment. Nike offers other
sports products such as skateboarding, wrestling, golf, baseball, football, tennis, cheerleading,
and sells shoes for racing and outdoor sports (Henninger, 2017). NIKEiD is a sub brand
which benefits the customer to design the footwear of their own choice.
Pricing
The product price is affected by the types of products. Nike has the pricing strategy
which has competitive objective comparing to other retail shoe. The pricing of products is
determined by analysing target customers. Nike brands have a high premium. Pricing strategy
uses the vertical integration where the participants from different channel levels take role to
control cost and have a great impact on pricing of product (Kerr, and Patti, 2015). Nike has
made the brand so popular that many customers may buy the product paying more money for
quality products. Nike uses cost based or value based pricing other than competitors which
offers low price. The target customers of Nike are niche market and have power to handle the

10MARKETING
product with the financial capability (Kuang-Jung, 2015). This encourages the customer to
buy more products of Nike. The customers of Nike specifies what they can pay for the
services they have been provided with. The services of Nike is compared with other
competitors for quality to check the prices are fairly charged or not.
Place
Nike shoes are sold by many multi brand stores and in exclusive Nike stores on a
global basis. Nike has 20,000 retail stores and sells the products in more than 200 countries in
the international market. The international market, subsidies, license, and independent
distributors sells the products of Nike (Luu, 2016). The main target of Nike is to expand its
business by opening more stores and franchise to reach all potential customers. This approach
is to expand maximum buyers. In the international market, Nike has independent distributors,
subsidiaries and licenses who sells the product of Nike. Nike has outsourcing strategy to
reduce the cost of products with developing countries in Asia, China and Vietnam (Matović,
2015). Nike is focusing on online advertising, so it is spending more money on online
advertisement and less on advertising media. Nike has a unique distribution strategy for its
products:
Nike town shop: Nike products are served internationally to the customers.
NIKEid: It provides online facility for the customers where they can design their own shoes
as per their requirement.
Retail stores: The retail stores serves high demand products for the target customers.
Flagship stores: Nike has a contractual deal with many retail stores that has a flagship label
which has a high volume of Nike’s products to serve the customers.
Promotion

11MARKETING
The marketing communication mix is developed by Nike to attract new customers and
establishes a balance between existing and new customers. This promotional mix is one of
the strength of Nike. Nike has expanded its offers globally to increase brand image and attract
more customers (McFadden, 2017). The print advertisement usually provides strong message
to the customers. Nike has its promotional activities by using a popular athlete to promote its
products. The advertisement of products helps to influence more customers and increases the
expectations for the shoes. The promotion of Nike uses celebrities, billboards, commercials to
target more customers and to aware them about the brand or offers it presents (Nguyen,
2013). Nike needs promotional intellectuals who can help to encourage new product into the
market. Nike can also use the maxi environment to create brand awareness. Nike has
formulated marketing strategy for online ecosystem (Orasmäe, 2017). Nike is planning to cut
for print advertisement and television and increases more promotional activities online or in
social media. The brand image, trademark, Nike’s name makes Nike the most recognized
brands in the global market. Nike has high revenue generation as it has brand power and
sponsorship from other companies.
Step 2. Promotional Programme Situational Analysis:
Internal and External Analysis
Internal Factors External Factors
Promotional assessment of several
activities of firm and its capabilities
Promotional department of the organisation
Checking firm’s capabilities to develop
promotional programmes (Orazi, 2017).
Customer Analysis
Determining target market or analysing
demographic factors
Determining the decision holder, and
influencer to buy a product

12MARKETING
Determining the role and advertisement
functions of promotional facilitators
Promotional review of previous
programmes and its outcome
Objectives of previous programmes are
reviewed
Allocation activities are reviewed
Promotional mix strategies are reviewed
Results of promotional programmes are
reviewed
Brand Image and promotional
implications are assessed
Strengths and weakness of products and
services are assessed
Analysing the strength and weakness of
product and service
Analysing the benefits of products and
services (Vollero, 2019).
Analysing the unique selling point
Packing of products are assessed
Comparison of products with competitors
for better results
Determining how the purchase decision is
made and their roles
Customer demand and needs are analysed
Approaching for Customer loyalty
Social factors that influence the customer to
purchase
Seasonal factors or any geographical factors
which attracts the customer more in number
(Tafesse, 2017).
Studying customer lifestyle to influence
them and analysing the perceived behaviour
or targeted customer
Competitive Analysis
Analysing direct and indirect competitors
Analysing the current position of the firm in
the market
Competitors’ ad budget is determined so as
to know the strength of competitors
(Thorson, and Moore, 2013).
Environmental Analysis
Determining current trends and future
developments which can have a positive
effect on promotional programmes

13MARKETING

14MARKETING
Step 3. Analysis of Communication Process:
The communication process of Nike is by campaigning and advertising their products to the
target market. Nike communicates effectively with the customers by various sources and
channel factors such as online sources (Svahn, 2016). Nike has created awareness about the
product and has created brand image globally.
Step 4. Budget Determination:
Budget determination is a process which determines the promotional cost and allocation of
funds.
Period Ending May 31, 2018 May 31, 2017 May 31, 2016
Total Revenue 35,800,000 28,930,000 25,567,000
Cost of Revenue 16,789,000 17,346,000 18,758,000
Net income
applicable
To common shares
7,469,000 6,873,000 6,743,000
The net revenue of Nike in the year 2018 has increased to 36 B as compared to 2017
and 2016, 28.9B and 25.5B respectively. So the total income has increased to 7.5B, this can
be forecasted that Nike can increase the expense in marketing for more increment in market
share and can expand the business globally.
From the above data, 2019 budget plan can be forecasted:
May 31, 2018 May 31, 2019
Total revenue 35,800,000 40,000,000
Market expense 36% 40%

15MARKETING
- Marketing
communication
- Marketing channels 10% 12%
- Marketing research 10% 11%
Total expense % of sales 56% 63%
From the above table, the strategy stated an increment of 10% in sales. It is forecasted
that in the year 2019 the increment in sales may be 10-12%. So an increase of sales margin in
marketing expenses by 7% in 2019.
Step 5. Developing the Integrated Marketing Communications Programme:
At this stage, decisions are made based on roles and importance of all the functions.
The promotional mix strategy is made for Nike to set the objective related to the budget.
Decisions are mainly made for the promotional activities and procedures to evaluate
systematic performance for any changes (Stanković, 2014).
Nike uses this promotional mix or known as marketing communication mix to
implement an effective communication with the targeted customers. Nike uses different
communication procedures for promotional activities (Ots and Nyilasy, 2015). To establish a
systematic maintenance of marketing communication mix, Nike develops a strategic
combination of public relation, direct marketing, personal selling, sales promotion and
advertising. This strategic combination helps the firm to promote their products and to
strengthen the brand image (Roux, and Van der Waldt, 2016). It uses the media such as
magazines, television, newspaper, radio and many more.

16MARKETING
Advertising
To set advertising objective
Determine advertisement budget
Develop strategies for conveying message to the customer
Sales promotion
Stratify the objective of sales promotion
Determine promotional budget
Develop strategies for sales promotion
Personal selling
The objective for the personal selling is to be set.
Determine the budget
Develop an effective responsibility and set selling roles
Direct marketing
The objective of direct marketing is to be set
Determine the budget of direct marketing
Develop the strategies for direct marketing
Public relation
The objective for establishing public relation is to be set
Determine the budget for PR
Develop the functions of PR
Step 6. Mentoring, Evaluation and Control:
This stage helps to determine the objective to meet integrated marketing
communication through promotional programme. This stage helps the managers with
feedbacks regarding effective promotional programme (Shin, 2013). By mentoring,

17MARKETING
evaluating and controlling the functions helps to draw SWOT analysis for strategic
development and further promotional plan.
Conclusion
The report concludes that Nike has designed the objectives of marketing
communication and has online channel as well as distributors to sell the products. The IMC
plan for Nike has been developed to have a situational analysis to determine the strength and
weakness of the firm to eradicate the weakness and threats that may appear due to many
misleading strategies. By understanding the objective of marketing communication for
effective flow of product and determining the promotional activities, it makes the firm more
competent to achieve competitive advantage in global market. Strategic plan, promotional
mix, promotional budget and implementing the control mechanisms helps Nike to establish a
strong potential to sell its products for long run aspect.

18MARKETING
References
Bibby, D.N., 2015. The Role of Brand Identity in the Implementation of Integrated Marketing
Communications (IMC) by Advertising Agencies (Doctoral dissertation, Auckland University
of Technology).
Blakeman, R., 2018. Integrated marketing communication: creative strategy from idea to
implementation. Rowman & Littlefield.
Brohi, H., Prithiani, J., Abbas, Z., Bhutto, A. and Chawla, S., 2016. Strategic Marketing Plan
of Nike.
Copley, P., 2014. Marketing communications management: analysis, planning,
implementation. SAGE.
Duncan, T. and Caywood, C., 2013. Marketing Communication. Integrated Communication:
Synergy of Persuasive Voices, p.13.
Đurić, S. and Trajkovic, S., 2016. Communicating with target market environment. Journal
of Process Management. New Technologies, 4(3), pp.30-38.
Henninger, C.E., Alevizou, P.J. and Oates, C.J., 2017. IMC, social media and UK fashion
micro-organisations. European Journal of Marketing, 51(3), pp.668-691.
Kerr, G. and Patti, C., 2015. Strategic IMC: From abstract concept to marketing management
tool. Journal of Marketing Communications, 21(5), pp.317-339.
Kuang-Jung, C., Mei-Liang, C., Chu-Mei, L. and Chien-Jung, H., 2015. Integrated marketing
communication, collaborative marketing, and global brand building in Taiwan. International
Journal of Organizational Innovation, 7(4).

19MARKETING
Luu, T.V., 2016. Integrated Marketing and Corporate Communications Strategies-Case Siida
Inari.
Matović, V., Knežević, M. and Papić-Brankov, T., 2015. The necessity to adjust traditional
integrated marketing communications tools and techniques to new global
trends. Ekonomika, 61(4), pp.141-154.
McFadden, T., 2017. Integrated Marketing Communication as Epideictic Rhetoric and Its
Implications for Ethical Branding.
Nguyen, H.Q., 2013. Marketing communications plan for RelationshipGames.
Orasmäe, A., 2017. Integrated Marketing Communication.
Orazi, D.C., Spry, A., Theilacker, M.N. and Vredenburg, J., 2017. A multi-stakeholder IMC
framework for networked brand identity. European Journal of Marketing, 51(3), pp.551-571.
Ots, M. and Nyilasy, G., 2015. Integrated marketing communications (IMC): Why does it
fail?: An analysis of practitioner mental models exposes barriers of IMC
implementation. Journal of Advertising Research, 55(2), pp.132-145.
Roux, A.T. and Van der Waldt, D.L.R., 2016. Toward a model to enhance synergy of out-of-
home advertising media integration strategies. Journal of Promotion Management, 22(3),
pp.386-402.
Shin, K.Y., 2013. The executor of integrated marketing communications strategy: Marcom
manager’s working model. Springer Science & Business Media.
Stanković, J., Brkljač, M. and Nikolić, S.T., 2014. Strategic integrated marketing
communications: Domination or equality of elements?. Anali Ekonomskog fakulteta u
Subotici, (32), pp.205-218.

20MARKETING
Svahn, M., Wahlund, R., Denward, M., Rademaker, C. and Nilsson, P., 2016. A model for
evaluating converging media for advertising purposes. In Media Convergence Handbook-
Vol. 2(pp. 355-373). Springer, Berlin, Heidelberg.
Tafesse, W. and Kitchen, P.J., 2017. IMC–an integrative review. International Journal of
Advertising, 36(2), pp.210-226.
Thorson, E. and Moore, J., 2013. The Concept, Process, and Evolution of Integrated
Marketing Communication. In Integrated Communication (pp. 23-44). Psychology Press.
Vollero, A., Schultz, D.E. and Siano, A., 2019. IMC in digitally-empowering contexts: the
emerging role of negotiated brands. International Journal of Advertising, 38(3), pp.428-449.