Nike's Communication Strategy and Competition

This document discusses Nike's current communication strategy and evaluates its success. It also explores the competition's communication strategy and provides suggestions to improve Nike's communication strategy.

NIKE

Contents
Question 1:.......................................................................................................................................1
Question 2:.......................................................................................................................................1
Question 3:.......................................................................................................................................2
References........................................................................................................................................3

Question 1:
What is Nikes current communication strategy? Has it been successful?
Nike works on using the promotional mixture for communicating with the different target
customers. The success of the company depends mainly on creating a balance between attracting
the new customers and keeping the existing ones. They have been working on:
a. Advertising Nike Products: Nike has been able to reach large population of target
customers successful for promoting its brand among the customers. The company spends
a high cost on the advertisement, but effective achieves a net benefit in the financial
performance.
b. Nike Personal selling: This includes the persuasion of the consumers to buy the products.
The positive customer experience enhances because of trained assistance and persuasion
from the sales personnel (Araujo, Caldwell & DeFanti, 2018).
c. Direct Marketing and Sales Promotion: The company uses them for giving additional
benefits to the customers, where they can save more by purchasing the discounted
products.
Question 2:
What is the competition’s communication strategy?
The competition’s communication strategy of Nike includes the cost leadership and
differentiation strategy. Here, the company is able to sustain the competitive advantage based on
the costs. It helps in maximizing the profitability or reducing the selling prices. Nike reduced
costs and the selling prices help the company to regain its competitiveness (Dupire & M’Zali,

2018). The company has been integrating the cutting-edge designs for its shoes so that it can
stand out differently in the market. The market penetration includes the company growth by
increasing the revenue sales in the market, where the company needs to focus on the marketing
development and facilitating the company growth by targeting the different new markets and the
market segments effectively. Nike generic compeititve strategy of differentiation, helps the
company to enter the new markets.
Question 3:
What suggestions would you provide to improve Nikes communication strategy?
It is recommended that Nike should maintain the authentic tone at the time of posting or
interacting with the consumers. The communication that is directly done with the followers has
to be flexible and soft. A better possibility to improve the strategy is to create the buyer persona
with generalized characterized that build a picture of the larger market and helps Nike to
understand the core customer groups (Lee, Yoo & Kim, 2016). Nike should work on providing
relevant content before getting it published. The focus has to be on the quality engagement over
the quantity where the focus should be to directly talk to the customers. The transparency and
openness can be a huge asset for the company with social media marketing. The marketing needs
to be done in the unique manner on a digital platform where the consumers are encouraged to ask
the tough questions (Zhang, 2018). The sharing of the great posts by the other industry leaders is
always beneficial for keeping the content attractive. A better approach could be depicted through
leveraging the consumer generated content where the brands should work on improving their
products and messaging as they continue to influence and take ownership of the favorite brands.

References
Araujo, D., Caldwell, H., & DeFanti, M. (2018). Nike's Utilization of Brand Strategy to Increase
Global Competitiveness. In Competition Forum (Vol. 16, No. 1, pp. 109-115). American
Society for Competitiveness.
Dupire, M., & M’Zali, B. (2018). CSR strategies in response to competitive pressures. Journal
of Business Ethics, 148(3), 603-623.
Lee, S., Yoo, S., & Kim, D. (2016). When is servitization a profitable competitive
strategy?. International Journal of Production Economics, 173, 43-53.
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). Atlantis Press.