Sales and Negotiation Skills of Nike

This document discusses the sales and negotiation skills applied by Nike in the market. It includes an analysis of the external environment using PESTLE and SWOT analysis. The document also explores the marketing mix and provides recommendations for Nike to improve its performance.

Business skills and
negotiation

Table of Contents
INTRODUCTION...........................................................................................................................3
2.0 PESTEL and SWOT analysis...............................................................................................3
SWOT analysis...........................................................................................................................4
3.0 Discussion and Analysis of Marketing Mix......................................................................4
4.0 Sales and Negotiation skills applied by your chosen company:.....................................10
5.0 Conclusion and Recommendation:.................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Nike was founded in 1967 and it has become the most popular athletic footwear brand.
However, over time, it expanded its product range to include garments and accessories such as
socks, digital gadgets, glasses, and exercise equipment. Nike had a compound annual growth rate
(CAGR) of 11% during a five-year period, from 2011 to 2015, with revenue of $ 30,601 million.
Nike gets its shoes from more than 140 manufacturers in 13 countries across the world.
Manufacturing outsourcing allows the firm to keep its operating costs low while focusing its
skills on sales and marketing efforts to increase sales.
2.0 PESTEL and SWOT analysis
PESTEL Analysis
Factor Impact
Political  Trump
Administration TPP
Deal.
 Conflict with China.
 High taxes.
 Low profit.
 Limited import/export.
Economic  High interest rates.  Unable to establish new
projects.
Social  The trend of healthy
lifestyle.
 Impact of Lockdown.
 Support TO THE
AFRICAN-
AMERICAN
COMMUNITY
 Increasing sales.
 Decreasing sales.
 Empathy of more people.
Technological  Technology
Adoption
 Robotic technology
 Growing the company.
 Customers' brand loyalty
grows.
 More profit.
Environmental  Recyclable products

Legal  Protest against child
labour.
 Sexual harassment.
 Negative publicity
Strengths
 Strong Brand Recognition.
 Large Client Base.
 Iconic Partnerships.
 Side Brands .
 Low Manufacturing Cost .
 Professionals who work in-
house.
 Black Community Support.
Weaknesses
 Poor Labour Conditions in Foreign
Countries.
 Pending debts.
 Lack of Diversification.
 Sexual Abuse
Opportunities
 Artificial Intelligence (AI)
 Innovative Goods
 Cutting ties with big
retailers
Threats
 Economic Uncertainty
 Marketing Budget Pressure
 Increased competitive pressure
SWOT analysis
3.0 Discussion and Analysis of Marketing Mix
Marketing
Tactical Tools
Current Strategy (based on each P)
applied by your chosen company (add
some related theories/concepts to
underpin your understanding when
Your evaluation/argument on the
effectiveness of each marketing tool
currently applied by your chosen
company

needed)
Product Product is the element of marketing
mix in which there is organisational
output available for the customers.
These are known as product mix. In
context of success of Nike, product
mix has played an essential role
(Burton and Chadwick, 2018). Nike is
a manufacturer of shoes and this
company is manufacturing different
products also including sports
equipments, apparels and clothes. It
also incorporates new technology into
product line that depends upon
strategy and growth of Nike.
This is an organisation which is
slowly introducing some of
additional products of sports also.
There is a proper kit for cricket and it
also offers running shoes and tennis
shoes. This company also provides
shorts, shorts and related products.
These products are also available
under the brands of this company
including converse, air Jordan and
Hurley.
Price In context of Nike, the pricing
strategy is used for applying tea
maximum profit and gaining target
share of global market. The pricing
strategy and product of Nike includes
investment which are associated with
policy of premium quality products.
For settling price in points ranges,
nikes considering the current market
conditions. There are different pricing
strategies which are used by this
company and it consists of premium
pricing strategy, value based pricing
strategy (Cluley, 2020). Nike also
uses consumers view of value for the
There is correlation between social
cultural and economic development
of the manufacturing climate. That is
why Nike has successfully exploited
the pricing strategy and increased
revenue. It has also developed high
reputation for promotion of its goods
and products.

product and by using value based
pricing strategy this company is able
to develop a good competitiveness
position within market. The interest of
this company is assessed on the basis
of average cost for clothes, athlete
shoes and appliances that customers
are prepared for paying. For
respecting the customers, high prices
are also a part for premium selling
policy. Main focus of this is upon
premium branding approach which is
involved in recognising Nike products
used for high quality and value
relative to rival products. The use of
advertisement featuring famous actors
is also used by Nike for emphasising
as a luxury brand. This sales of Nike
in 2014 was raised and revenue was
increased.
Promotion Promotion off Nike includes
marketing communication makes as
well as strategies used for connecting
the target customers. Nike uses an
effective marketing approach in order
to retain a positive brand identity
(Eyada, 2020). It is strength found
within Nike that it is using different
advertising tactics for connecting
products with target customers and
persuading them for purchasing the
Direct marketing is considered as
direct communication in which this
organisation promotes goods to
different number of people. It also
provides some discounts and deals
for deep promotional strategy of
Nike. It is also involved in
partnership with leading suppliers for
effectively managing businesses and
products within international sporting
goods.

goods. Promotions of Nike are
organised according to the importence
and management. This company uses
direct marketing sales promotions
also. It also uses public relation
advertising which provides it one of
the greatest path to attract customers.
The promotional activities of Nike are
very important and this company is
relying upon advertising in context of
prominent supporters including sports
teams and athletes. This company is
using the personal sales method in
which sales person encourages
customers for purchasing the products
offered by the company. This
company hires talented and qualified
people who can sell products to
customers easily.
Place Place element of marketing mix
includes the identification of places
where product of this company are
sold, assessed and distributed. Nike is
involved in marketing the sporting
shoes, equipment and accessories
across the world by using range of
different shops. These products are
provided in major retail stores. There
are different distributors who are
providing the equipment and shoes to
The company provide access for
different industry and consumer
information for providing corporate
strategic management. It is also
involved in managing the selling and
distribution of products by the use of
retail outlets and online shops. This
company has limited control over
distribution and the selling of goods
by the retail outlets.

local and regional stores. Nike sports
shoes, equipment and clothes are
provided to customers on online basis
also.
People People: in Nike, people have been
working under sales team which is
playing a vital role for marketing
efforts (Herbert, 2020). These people
are trained for persuasive techniques
and showing respect for business
customers. This company is having
people who are working in customer
service department and these are hired
on contract basis.
There is proper training provided to
these people and it is supported by
improving quality of final product
offered to the customers.
Process Process involved in Nike includes that
products are available for customers
at retail stores. There are different
systems which are installed where
retailers can notify inventory levels.
It provides different products orders
from production to replenishment of
stock. There is also assurance for
products which are available for
customers whenever required.
Physical
evidence
Nike is selling products in distinct
colour packaging which is available
on retail shelves (Hunt, 2018). These
are placed on special shelves and
provided by the company in different
colours and design.
It is helpful in making the customers
to locate shelves in which there is
busy retail store.
Marketing Tactical Tools Recommendations to each P
Product It is recommended to Nike that it should introduce more sports

accessories in it’s product line.
Price This company can use discounts and offers for different
products.
Promotion Promotional strategies that can be used by Nike includes social
media marketing and influencers.
Place It is recommended for Nike that it should involve in increasing
the number of shops across the world.
People It is recommended for Nike to undergo training for Salesforce,
customer service and purchasing people as these are playing a
vital role within delivering value to customers. It provides
incentive for Salesforce by bonus in order to meet targets and
through commissions for sales developed (NIKE, 2018). There
is need for hiring people who are showing respect towards
customers and are committed for company.
Process It is recommended for Nike to use computers for handling the
operations in order to increase efficiency and complete then in
a time line. It is also recommended to this company for
innovating and improving the processes for cost efficiency.
Physical evidence It is recommended to Nike that physical evidence strategy
must be useful for collecting feedbacks from customers in
context of packaging and improving the opportunities. There is
also need for storing the products and providing shopper
friendly environment as well as ambiance (Zhang, 2018).
There is also requirement for encouraging customers and
purchasing the products.
4.0 Sales and Negotiation skills applied by your chosen company:
In order to analyse situation of whole market it was essential for me to perform several
external environment related assessments. I preferred to formulate PESTLE analysis for

analysing the external environment related factors for better understanding whole market.
PESTLE analysis helped me in understanding whole market in a well organised manner and also
helped me in formulation of crucial strategy for new business. In order to analyse different
strengths and weaknesses of my newly started business it was essential for me to conduct SWOT
analysis. I took help of my senior and experienced people to formulate an effective SWOT
analysis. SWOT analysis also helped me in understanding different opportunities and threats
which were available at the marketplace for the business. In era of stiff competition between
several companies it is essential to perform a precise SWOT analysis in order to increase
efficiency and revenue of the business. For the newly started business it was essential for me to
perform effective market related analysis in order to attract large number of customers. In
organisational development there is a crucial role played by marketing mix analysis as it helps in
achieving sales related targets for the business. I took help of professional marketing
management to analyse the whole situation of market in order to start a precise new business
with efficiency. In order to develop effective approach at the marketplace it was essential for me
to understand major aspects of marketing. I formulated several sales targets and also developed a
comprehensive approach by the help of seniors to take help related to marketing operations. I
was successful in understanding major elements of marketing with help of marketing mix
analysis. I decided to analyse different factors which directly or indirectly impact on marketing
related factors related to a newly established business.
5.0 Conclusion and Recommendation:
It is concluded from the above discussion, it is evaluated that a company can increase efficiency
and performance by conducting a pre-market analysis (Stoeva,2017). It includes SWOT,
PESTLE and marketing mix for analysing different factors that are involved in maximising
business performance. Strategies are developed in such a manner that they are able to maximise
profit and sales.
There are following points recommended for Nike –
 It should invest more in promotional activities so that customer base can be increased.
 It is recommended for Nike that it should hire talented and skilled employees.

REFERENCES
Books and Journals
Burton, N. and Chadwick, S., 2018. Ambush marketing is dead, long live ambush marketing: A
redefinition and typology of an increasingly prevalent phenomenon. Journal of
Advertising Research, 58(3), pp.282-296.
Cluley, R., 2020. Book Review: Advertising Revolution: The Story of a Song, from Beatles Hit
to Nike Slogan.
Eyada, B., 2020. Brand Activism,“the Relation and Impact on Consumer Perception: A Case
Study on Nike Advertising”. International Journal of Marketing Studies, 12(4).
Herbert, N., 2020. " Woke-Washing" a Brand: An Analysis of Socially Progressive Marketing by
Nike on Twitter and the User Response to it.
Hunt, J., 2018. University of Nike: How corporate cash bought American higher education.
Melville House Publishing.
NIKE, B.I., 2018. SOCIAL MEDIA MARKETING IN FASHION.
Stoeva, M., 2017. Emotional Branding Online: Case study: Nike.
Zhang, J., 2018, August. Strategy of sports brand network marketing on the basis of brand image
promotion. In 2018 International Conference on Management, Economics, Education
and Social Sciences (MEESS 2018) (pp. 37-42). Atlantis Press.
Online
Nike marketing mix.2018.[Online].Available through:http://panmore.com/nike-inc-marketing-
mix-4ps-product-place-promotion-price-analysis