Marketing Strategies for Nike, Inc

This document discusses the marketing strategies and competitive advantage of Nike, Inc. It includes an analysis of Nike's environmental and PESTEL factors, evaluation of current marketing strategy, and analysis of competitive advantage and unique selling proposition. It also outlines the features and benefits of Nike's new products.

MARKETING
STRATEGY

INTRODUCTION
Marketing strategies are made in an organization to achieve the success and profit by
doing the advertisements and marketing of the products and services. The marketing strategies
for every organization and brand is different from each other and the ultimate goal of making the
marketing strategies is to make the unique identity of the goods and services of the organization.
The marketing strategies are made to highlight the features and offerings of the products which
will be useful for the customers. The another objective do making marketing strategies is to
generate the need and utility of the product in the mind of the customers.
Nike, Inc is an American multinational organization which produces the shoes, sports
appraisals, accessories, equipments and the services. The organization's major production is done
in producing the footwear for both men and women. The organization was founded on 25
January 1964. The headquarter of the Nike, Inc is located in the Washington Country, Oregon,
US.
MAIN BODY
PART 1
1. Environmental Analysis of Nike
SWOT Analysis of Nike, Inc
 Strength
The strength of the organization was their strong brand image which was made because of the
best quality products. The swish symbol made under the name of brand made ist unique image in
the eyes of the customers. The organization was having a strong customer base by which they
were earning a huge profit in the market (Friedmann, E., 2018).
 Weakness
The weakness of the organization was that the labours working in the manufacturing department
were not paid up with the enough salaries which were demanded by them. This reduced the work
efficiency among the workers which effected the production of goods and services in the
organization. The retailers of the organization were having a strong hold because products and
services of Nike, Inc were directly sold to the retailers (Koo, and et.al., 2016).
 Opportunities
The opportunities for the Nike, Inc were that the organization was producing the innovative
products which meeting the changing taste and preferences of the customers. The use of latest

technologies in the manufacturing of the products and services were making the product's image
very unique. The emerging markets of the Nike were giving a good opportunities to the business.
 Threats
The threats of the organization was to make the budget for doing the advertisements and
promotions of the products and services. The currency of foreign exchange which were
continuously fluctuating in the economy.
PESTEL ANALYSIS OF NIKE
 Political
The political factors which effected the business were the stability in the government policies
and laws which made the business successful in the market. The free trade policies were
expanding at high rate because of the support of the government.
 Economic
The economies of the Nike was stable as compared with their competitors in the market. The
organization was having the rapid growth in the developing markets of the country.
 Social
The social factors effecting the organization were the increase in the wealth of the individual
customers because of the developments made in the countries. The attitude towards the leisure
was very positive in the economy.
 Technological
The technologies used in the Nike were obsolescence very rapidly in the market and the the use
of mobile technologies such as mobile apps made the jump in the sale of the products of the
organization.
 Environmental
The environmental laws were expanding at a huge level by the government of the US and the
Nike was strictly following all the laws and policies which were made for the manufacturing
companies to save the environment. The climate change also effected the business of the Nike
(Wilken, and et.al., 2015).
 Legal
The legal factors which effected the organization were the improvement in both employment
laws and customers was in which they were having the opportunities to file complaints against
the organization.

2. Evaluation of current marketing strategy/position of Nike, Inc
The evaluation of marketing strategies and position of Nike are as follows:
Marketing Strategies followed by the Nike were as follows:
 Planning of the strategies which has to be innovated and which are already existing in the
market.
 Managing the staff of the organization so that they work in efficient manner.
 Offline interaction was done by the organization by the customers who visit the stores of
Nike and the new schemes and technologies were explained to them.
 The use of social media was also done. The customers were purchasing the products
directly from the customers.
The positioning of the Nike in the market was as follows:
 The slogan of “just do it” by the Nike made their customers more motivated towards
maintaining their health and fitness.
 The position of the organization was maintaining at good rank because of the applying
attitudes and styles of the consumers who were consuming the products of the
organization.
 The position of the products were also maintained because of the premium quality of the
products and the creating value of the products in the eyes of the customers.
 The design of the products were also contributing in making the good position of the
products.
3. Analysis of the organizations competitive advantage and USP
Brand effectiveness of Nike according to the current market performance
The brand effectiveness of Nike is leading in the shoe manufacturing organizations of the
world according to their current market position. The reason behind this is the use of latest
technologies and innovations in production of the products of organization. The effectiveness of
the Nike is shown by the best quality products offered by them to their customers.
Market Growth of the Nike by the Sales of their Products
The direct customer business done by the Nike has made a great growth in the business of
the organization. The growth was made because the involvement of retailers was removed from
the business of Nike and the products were directly sold to the customers at low prices. The
commission earned by the retailers or the amount paid to the supply chain managers in supplying

the products was removed which caused reduction in the prices of the Nike's products. By this
the customers who were having low incomes were also able to purchase the products and
services of the Nike. As the sales of the products and services increased, the growth in the
market took place. The Nike, Inc was earning high amount of revenue as compared with their
competitors in the market. The organization was having many techniques which were making the
unique identity of the products so that the sales of the products grows with time. The product
price mix of the organization was making a growth in the market. The customers were getting
the best products at the minimum price possible and the customers who were having the higher
income and who prefer only premium products were able to purchase a large units of the
products in their one time shopping. The input cost incurred in doing the production of the
products were reduced which has caused an increase in the production of per unit the products.
As the cost was of production was not high, and the sales of the products were very high the
Nike was earning a big amount of revenue which has made their growth in the market. The
revenue earned by the organization was used in making the promotional and marketing strategies
which attracted many customers towards the purchase of the products.
Market Share of Nike
The market share of the Nike was 2.8 % in the year 2017 which made an increase in the
value of the US dollars by the growth of 28 billion. The shareholders of the Nike were earning a
profit in the market because of the success of the business. As the profits and revenues earned by
the organization in the market were very high so the shareholders and investors were feeling free
to invest their money in the business of the Nike, Inc. The market share of the Nike was divided
majorly into the 10 shareholders who were continuously investing their capital in the
organization by purchasing their shares(Doukas, and et.al., 2016).
Sales Trends of Nike
The organization was focusing on increasing the sales by keeping the cost of production
low and using all the technologies and latest machines in use for the production of the products.
The organization was having the trend in their sales according to the last 5 years (2015-2020) has
been increased from 9.12%.
4. Analysis of the organizations competitive advantage and USP
Competitive Advantage of Nike
 Loyalty of Customers

The loyalty of the customers were made by because of the best quality of the products offered to
them. The organization's brand image and the positive reviews received from their daily
customers made the customers loyalty more strong.
 Customer Service
The customer services provided by the Nike to their customers in the form of exchange and
replacing of defective goods and products. The business strategies used by the organization was
to provide many sports related gifts at the time of Olympics to their customers so that they
receive complete satisfaction form their purchase (Kiráľová, A., 2019).
 Product Range
The organization was offering a large range of products which were making strong customer
base. The Nike was having all those products which the customer wishes to purchase the features
which they want in those products were present in the product.
 Global Presence
The global presence of the products of the organization were making a huge sale of the products
of the Nike in the world. There are 1180 stores of Nike in the world where all the products and
services produced by the organization were available to their customers. The organization was
having the external suppliers who were doing spreading the business of the Nike across the
world.
USP of Nike
 The organization was focusing on the performance of peak athletics who were taking part
in the sports activities.
 The organization was targeting the young generation who are more involved in the sports
activities so that they can use the products of the company.
 The Nike distributed their products to the cricket player and the Olympic player who
were representing their countries on then national television. By this the name of the
brand was highlighted on the minds of the customers.
 The Nike also used many promotional strategies by sponsoring the TV shows and the
matches across the world so that the customer's believe in the products of the company
increases.
 The Nike was doing a direct interaction with their customers without the interference of
any third party which made the communication among the customers and the

organization more effective. The selling of the goods and products directly to the
customers made an unique identity of the organization.
 The digital marketing of the Nike and the online services provided by the organization
was making the customer's more comfortable in purchasing the products online.
PART 2
1. Product rationale and specification of Nike, Inc
The rationale for the introduction of a new product to the
range in Nike.
The organization is already having a large product range in which they were earning a
huge profit but the major product segment in which the organization was dealing is the shoes
produced for the men and women. The organization was giving a large product range in the
shoes produced by them. The shoes produced for the men were having the sober colours and
those colours which were preferred by majority of the men in the world. The product range in
this particular segments which the customers were getting the boots for the stickers, mid fielders,
sneakers and the defenders. All these products were available in all the sizes and colours so that
the customers can easily use these products. The product range given by the organization was
giving many choices to their customers and the level of comfort received to the customers by the
use of the poordu8cts made their loyalty towards the brand. The organization was also giving a
large range of differentiated products in the women shoes (Post, and et.al., 2019). In this the
organization was providing a huge variety of shoes to their female customers so that they get
more and more motivated to do play sports and become active in the activities other than their
households. The organization was giving a many opportunities and chances to their loyal female
customers so that they get motivated to play the games and get involved in those activities which
can make them fit and provide them with good health and fitness. For doing this the organization
was producing shoes in those colours which can attract the female customers towards them and
the on every packet of the product sold, some motivational quotes were written so that the female
customers encourage themselves in performing the sports activities.
2. Outline the features / benefits of the new product.
The features and benefits of new products can be as follows:
 The shoes must have some small space to pass air form the feet.

 The shoes must have an appropriate shape and comfortable size so that the customers do
not face any kind of trouble in wearing the shoes.
 The shoes will have the symbol of Nike in the front of the shoes so that the people can
easily recognize the brand just by looking at the shoe which is wear by the customer.
 The new products can give a variety and change in the taste and preferences of the
customers so that they can go for a new change.
 The feedbacks received from the customers regarding the changes to be made in the
shoes has helped a lot in making the innovations made in the organization. The
organization took this initiative to renovate their existing products according to the needs
and wants of the customer's.
 The quality of the shoes made after the renovation is more high and the raw material used
in the production of the shoes are Eco friendly. The organization was using the solid
rubber in the production of the shoes so that they do not get damage quickly.
 The new feature added by the Nike was that the shoes were having very light weight as
compared with the shoes they were producing earlier in the market. The light weight
shoes gives many benefits to the consumers.
 For the running purpose, these shoes are the best because the player does not feel any
weight on their legs while running on the ground. This can make them run more fast and
remain active on the play ground.
 The shoes made after the addition of new features were preventing the feet6s fr5om
getting injured. The material by which the shoes were produced by the producer were
having the hard coating in the outer part of the products while the inner part of the shoes
was very soft and comfortable in wearing purpose.
 The Nike was producing those shoes also which were not made for the purpose of sports
or for the gaming purpose. The shoes produced by the Nike were made according to the
daily use so that the customers can wear it for their daily purpose.
 The another benefit given by the renovations made in the shoes of the Nike was its
flexibility and ability to get bend from every side of the shoes (Varadarajan, R., 2018).
The organization was getting many positive reviews after doing this renovation in the
shoes by their customers.

3. STP of the Nike, Inc
The Nike targeted the following segments of their customers:
 The Nike majorly targeted the athletics and the sports person who will require the
products of the company. The organization did this because the players needs different
wear which other than their normal cloths and foot wares.
 The material used in the sports apparel is way different from the other cloths materials.
The cloths produced by the Nike and the shoes produced by the Nike were having the that
material which are long lasting and they do not stick in the body of the players.
 The Nike also targeted the young college students who prefer the funky and those shoes
which give the sporty look. As the organization was producing the products according to
youth so the products were getting high in demand by the college students(Chaney, and
et.al., 2019.).
 The segmentation of the Nike was done in two forms and they were the psychographic
segmentation and the demographic segmentation. In the psychographic segmentation, the
organization was targeting the customers of all age groups across the world who wanted
an athletic lifestyle for themselves.
 In the demographic segmentation the Nike was targeting the customers of both middle
and high income who can afford the premium products of the Nike easily. This was done
because the organization knowns that their products will be affordable only by those
customers who have a good earning.
 The positioning of the organization was a at a good number because of the good quality
and long lasting nature of the products of the organization.
 As the products of Nike were used by the sports men and women, the market always
remained in demand because it became a centre of attraction for the customers.
Marketing Objectives and goals of Nike
 To increase the profit margin by 3-4% in every product line of the products which will
increase the sales growth by at least 10% every year.
 To make the better communication in the market.
 To produce best quality products in the lowest cost possible.
 To apply marketing strategies will be extend the produ8ct line of the products and
services.(Baena, V., 2019)

Marketing Mix of the Nike
 Product
The products of the Nike were having the value based and premium pricing strategies in the
market for their customers. The organization was keeping the prices according those people who
believe more in quality of the products rather than its prices.
 Place
The places where the organization was doing their business successfully were in the countries
where sports related activities were promoted a lot. The organizations was having many retail
stores and strong online market where they were ruling the hearts of the customers.
 Promotion
The promotions of the products and services were done by the doing the advertising, direct
marketing, personal selling, public relations and sales promotions. The promotions of the
products were done by both online and offline ways. There was an direct communication
between the customers and sellers of the Nike. This made an increase in the sales of the products
because the customers can directly communicate with the sellers. (Rundh, B., 2016)
 Price
The prices of the products of the Nike were having the value based and prim um products by
which they were targeting those customers who were having good source of income and do
believe in spending money for the quality products.
CONCLUSION
The report can be concluded by mentioning all the marketing strategies and ideas used in
the organization for increasing the sales of the products. The organization was using the
marketing mix in which all the factors which showed the different pricing and promotional
strategies by the Nike. The organization was also using the STP in which the segmentation,
targeting and the positioning of the products were done in the Nike. The Nike had innovated
their products and services by making many technological change and the innovations in the
existing products of the organization. The changes made in the products of the Nike had given
many benefits to the customers who were using it. The organization was having many strength,
weaknesses, opportunities and threats which were effecting the business of the organization. The
organization was effected by many political, legal, economic, environmental, social and
technological factors which impacted on the sales of the products and services.

REFERENCES
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