Marketing of Nike in China

Running head: MARKETING OF NIKE IN CHINA
Marketing of Nike in China
Name of the Student
Name of the University
Author note

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MARKETING OF NIKE IN CHINA
Part 1:
Executive Summary:
The study shows that the market conditions are so dynamic that even the top leading
companies have to strengthen their marketing strategies. The paper further shows that companies
holding top positions do not hold equal positions in every host market. This is evident from the
marketing performance of Nike in China. The company undoubtedly holds the top position in the
global sportswear industry but its position is challenged by modern innovative marketing
strategies like experiential marketing outlets by its competitors like Adidas. This necessitated
Nike to carry out a marketing audit in order to measure the effectiveness of its marketing
strategies in supporting to retain its position in China. It can also be pointed that emerging
markets like China have become so profitable that the companies aim to operate in their markets
profitably. Thus, it is clear that Nike cannot afford to lose Chinese market and should form
strategies in order to sustain its position in the market.

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MARKETING OF NIKE IN CHINA
Table of Contents
Part 1:...........................................................................................................................................1
Executive Summary:....................................................................................................................1
Introduction:................................................................................................................................3
Environment analysis (PEST) of China:......................................................................................4
Political:...........................................................................................................................................4
Economic and social:...................................................................................................................5
Technological:.............................................................................................................................6
Evaluation of current marketing strategy/performance:..............................................................7
Analysis of the Nike’s competitive advantage and USP:............................................................7
Part 2:...........................................................................................................................................7
Marketing strategies, marketing....................................................................................................13
Conclusion.....................................................................................................................................15
Bibliography (References):........................................................................................................16

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MARKETING OF NIKE IN CHINA
Introduction:
Marketing of sporting footwear has become so competitive with both international and
local companies competing to maintain their market position as well as upgrade their positions in
the future that even the top brands in the market have to restructure their respective market
positions. According to the international magazine, the Forbes, commanding a brand value of $
15,000,000,000, Nike based in the United States of America holds a whopping 38 percent share
of the sportswear market internationally1. The same report shows that the German company,
Adidas and Reebok, based in the United States are closing onto the second and third positions
respectively. The Forbes magazine in another article shows that lack of efficient stock
management and weak sales strategy has resulted in low profit of Nike in China. The article on
the Forbes Magazine further reports that the cut throat competitors of Nike like Adidas are
launching concept stores in China to enhance the customer experience, a strategy which is
predicted to boost the sales for the latter companies2. The strategy in other words if successful
would result in weakening the position of Nike in the Chinese market. Moreover, weakening
sales and lack of management of inventory of Nike in China clearly point out that the leading
sportswear company requires forming powerful marketing strategy to retain its position in
China3. These three articles from the Forbes would form the perfect ground for the study. The
aim of the study would be evaluation of the current marketing strategy of Nike with respect to
China.
1 "Forbes.Com". Forbes.Com, 2018, https://www.forbes.com/pictures/mlm45jemm/1-nike/#41be0433314e.
Accessed 30 Dec 2018.
2 "Forbes.Com". Forbes.Com, 2018, https://www.forbes.com/sites/greatspeculations/2014/03/04/nike-faces-tough-
competition-in-europe-and-china/#2bbb26df6e79. Accessed 30 Dec 2018.
3 "Forbes.Com". Forbes.Com, 2018, https://www.forbes.com/sites/deborahweinswig/2018/09/17/millennials-a-pro-
sports-government-and-large-sports-events-drive-the-china-sportswear-market/#4f231e6d796c. Accessed 30 Dec
2018.