Fundamental of Marketing: Nike

This report discusses Nike's marketing plan for its new product, Heating Boots. It includes the company's mission and vision, marketing audit, objectives, and market mix. The report also outlines an Integrated Marketing Communications plan to promote the product.

Running Head: MARKETING 1
Fundamental of Marketing: Nike
Student Name: Dousien Kumar BAPPOO
Student Number: U3191460
Unit Number: 9958
Word Count: 2186
Due Date: 30 March 2018

MARKETING 2
Table of Contents
Introduction.................................................................................................................................................3
Section 1: Company description, Mission and Vision..................................................................................3
Section 2: Marketing Audit..........................................................................................................................4
Current Marketing Objective and Strategies:..........................................................................................4
External Environmental Analysis.................................................................................................................5
PESTLE Analysis........................................................................................................................................5
Section 3: Marketing Objectives..................................................................................................................6
Section 4: Marketing Plan............................................................................................................................7
Customer Segments and target market...................................................................................................7
Market Positioning..................................................................................................................................7
Market Mix for Selected Products...........................................................................................................8
IMC Plan..................................................................................................................................................9
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10

MARKETING 3
Introduction
In today’s business environment, each and every business organization needs to create marketing
plan to stay competitive in the industry. When they introduce anything new then they need to
take the assistance of tis marketing plan to bring new products and services to marketplace. This
report includes different marketing aspects about the Nike Organization that was chosen in the
previous assessments. Nike is one of the most popular brands that offer a variety of sports shoes
and products. The company is planning to diversify its product range with the introduction of
new product i.e. Heating Boots. This report includes the mission and vision of Nike
Organization. Moreover, marketing audit is conducted by the use of different marketing tools. At
the end, a high level marketing plan is prepared in context to new product of Nike Organization.
Section 1: Company description, Mission and Vision
Nike is a well-established company that was founded in United States of America in the year
1969. The organization is engaged in designing, manufacturing and developing the footwear,
equipment, accessories and services. The major products of Nike are to provide athletic
footwear, shoes and equipment (Deng, 2009). The organization is operating its business in
various countries such as Japan, China, Europe, India, New Zealand and other emerging markets.
The mission statement of this company has developed over the time to accurately show the
position of business position. The mission statement of Nike is to “bring innovation and
inspiration to each and every person in the world”. The mission statement of the company
indicates the strategic objective of reaching out to the sport shoes and equipment (Dawes, 2009).
This CSR’s vision statement of the company is “to assist Nike and its customers to prosper in a
sustainable economy where profit, people and planet are balanced. Now, the organization needs
to create and publish a formal vision statement to inform investors and employees about what the
business purposes to be in the future in context to the international market for sports shoes and
equipment (Datta, Ailawadi, & van Heerde, 2013).
To attain its mission and vision, Nike is implementing effective strategies and it is going to
introduce a new product i.e. Heating Boots.

MARKETING 4
Section 2: Marketing Audit
Current Marketing Objective and Strategies:
The current marketing objective of Nike is to focus on offering higher quality products on low
prices so that it can gain a significant market share in the industry (Ambat, et al, 2017). To attain
this marketing objective, the organization has adopted effective marketing strategies which are
given below:
Product:
Currently, Nike is focusing on sports and athletic shoes and apparel. The products of the
company are designed in the factories which are situated nearby the raw material deposits so that
they can reduce the costs of production (Chowdhury, 2013). Its current products are focused on
Soccer, Tennis, Football, Basketball and other athletic uses.
Price:
Nike has created its pricing strategy to compete with other brands like Adidas and to offer
affordable and quality shoes to the customers.
Place:
To distribute its products to the final customers, Nike has established more than 20,000 stores all
over the world. It provides its products through auxiliaries, licensees and individual (Cwinkler,
2013).
Promotion:
Promotion is the most important part of company’s marketing strategy. It uses different types of
online media to promote its products. It includes online ads, commercials and its own website. It
is also using brand endorsements to promote its products all over the world.
External Environmental Analysis
PESTLE Analysis
Political Factors

MARKETING 5
In most of the major markets, stable political conditions offer various opportunities for Nike to
grow its business. In addition to this, free trade policies assist the organization in better market
penetration in foreign markets. Enhancing government assistance for infrastructure in developing
nations provides Nike various opportunities to expand its operations in these markets.
Economic Factors
There are some developed markets like; United States which are stable that provide Nike a stable
growth in these nations. In the high developing nations, the company may have opportunities to
enhance its operations. But these markets are threatening Nike by increasing costs of labor. For
example, economy of China has threatened the performance of Nike Company (Jain, & Haley
2009).
Social Factors
Today, the people are adopting healthy life style and they prefer to buy the sports shoes and
apparel for their Gym and exercise activities. It has improved the business of Nike significantly.
Considering the needs of people, this company can implement new product development
strategies to fulfill the needs leisure activities products.
Technological Factors
The competitors of Nike are making investment in research and development activities. Through
this, they are adopting new and modern technology that has threatened the performance of Nike
in global business environment. Nike can use updated technology to make advancement in its
products and services.
Legal Factors
The company needs to comply with different laws and regulations in different countries. It
creates a complexity for the organization. Changes in the employment laws have increased the
cost of labor for Nike. This factor offers Nike an opportunity to implement higher standards of
employment and labor (Westwood, 2016).
Environmental Factors

MARKETING 6
The organization is already engaged in environmental sustainability and corporate social
responsibility. By using these programs, the company can attract the people towards its products
and services.
Section 3: Marketing Objectives
By looking at the above analysis, it can be analyzed that Nike should establish a new marketing
objective for future growth. Till now, Nike is operating its business by focusing on the
sportswear and sports shoes (Deng, 2009). Under its new marketing objectives, the company will
introduce a new product in the market i.e. Heating Boots. The company will establish some
marketing objectives for its new products:
 To develop its customer base by the targeting new audiences for heating boots.
 To gain a significant profit margin in the first year of introduction of heating boots.
 To become more popular and trendy with heating boots that will serve the needs of every
customer in the market.
The company will introduce a new product in the market i.e. Heating Boots for travellers and
other people (Sorrel, 2009).
Ansoff Matrix
Under Ansoff Matrix, the company will focus on two major strategic directions:
Product Development
From the beginning of its operations, Nike is using product development strategy. The company
is continuously introducing new products to compete with rivals. Now also, the company should
develop its product range by including Heating Boots for all groups like women, men and
children. With this product, the major objective of the Nike will be to keep the feet of people
warm in cool environment. So, it will target both senior citizen and young generation as well. In
this way, it should add new products to its product portfolio so that it can grab the attention of
more customers (Huang, & Sarigöllü, 2014).
Diversification

MARKETING 7
Diversification is one of the most important options that Nike can choose for its new marketing
objective. The organization will offer its new products in new and emerging markets so that it
can enhance its brand presence all over the world. However, it will be risky for the company but
it will be good if it works.
Thus, the above strategies will assist the organization in approaching the mission and vision of
Nike. It will help the organization to bring innovation for each and every person in the world.
Section 4: Marketing Plan
Customer Segments and target market
Under this, Nike will identify its targeted customer by the use of different segmentation
characteristics. Different characteristics of customers are stated below:
Demographic
Under this segmentation, Nike will target the customers on the basis of age, gender and income
of people. For its Heating Boots, the company will primarily target the customers between the
age of 10 and 60. It will manufacture the Heating Boots by targeting both male and females. The
customers will be the people who will be able to give worth prices for its new and quality
products (Lu, Liu, & Rahman, 2017).
Geographic
The organization will use geographic segmentation to market Heating Boots in nations, cities,
regions and populations in different manner. For instance, it will focus on tourists in Europe and
Norway. In the winter season, the temperature of both places remains slightly above freezing.
Thus, the company will primarily emphasize on the tourist places which are the coolest.
Psychographic
Under this segmentation, the company targets the people with specific personalities, interest and
lifestyles. For its new products, the organization will target the people travels to the cool places
for leisure activities. It will supply the Heating Boots during the winter season in America
(Sorrel, 2009).

MARKETING 8
Behavioral
Under behavioral segmentation, Nike will consider the benefits sought and customer loyalty. The
benefit expectations of company’s new product are that Nike’s products can make the people’s
feet warn in the cold environment and winter season. The company seeks to create customer
loyalty through its new products.
Market Positioning
With this new product, Nike will position itself as a premium brand that is going to introduce
new and innovative product for the mass population i.e. Heating Boots. It will manufacture this
product in an effective way which will fulfill the needs of niche market. The color and brand
logo will entice the targeted audiences to purchase this product with the creativeness and
confidence. It will create an effective positioning statement that will create a positive image in
the mind of customers. Nike will offer Heating Boots which will keep the customers feet warm
during their outdoor and leisure activities. In this way, the company will use functional
positioning under which it will fulfill the needs or demands of leisure travellers (Peteraf,
Gamble, & Thompson, 2014).
Market Mix for Selected Products
For its new products, the company will implement new marketing strategies, which are stated
below:
Product
As mentioned above, Nike is going to introduce its Heating Boots in the market. It will be an
innovative and creative product in the footwear industry. The organization will incorporate
updated technology in Heating Boots. There will be electric blanket in the boots which will be
operating with battery system (Sorrel, 2009). This product will be able to fulfill the needs and
demands of customers for heating their foot so that they can enjoy their trip in cold atmosphere.
The product will definitely assist the Nike in attaining its mission and vision.
Price
Because of its exclusive style, design and advertising, Nike utilizes both competitive and
skimming pricing. In the beginning, it will use skimmed pricing strategy (Gordon, 2012). As it is

MARKETING 9
an innovative product in global footwear industry so company will give offers and discounts on
purchasing of two pair of Heating Boots.
Place
Nike will offer its new products i.e. Heating Boots through retail outlets. In addition to this it will
open its own stores which will sell its new products. By establishing extensive distribution
channels, Nike will make efforts to approach more customers (Lu, Liu, & Rahman, 2017).
Promotion
The company will use effective advertising and promotion strategies. It will use both offline and
online media for promoting its products. Moreover, it will partner with the tourist agencies so
that they can make the people aware about this new product. When the customers will contact
these agencies, they can buy the Heating Boots for their trip to cool places (Westwood, 2016).
IMC Plan
In addition to above marketing strategies, the Nike will create an Integrated Marketing
Communications (IMC) plan to communicate its brand message to the targeted customers. The
company wants to state that “we consider the health needs of our customers at the center of what
we do.” To advertise its Heating Boots, the company will use different media channels which are
discussed below:
Media Channel Benefits
Social Media Nike can promote its new products on social
media platforms such as Facebook Instagram
Twitter as most of the people are active on
internet.
Television Television is the easily approachable media that
can cover mass population. It is cost effective
mode of advertising (Fine, 2017).
Print media Nike can post the ads in newspaper and
magazines which are read by the people who
are not using social media sites. This is an

MARKETING 10
effective way through which company can
approach most of the leisure travellers.
Events and sponsorships Events and sponsorships are the most effective
way to reach the sports lovers and travellers all
over the world (Keller, 2010).
This IMC plan will assist Nike in approaching a large population all over the world and company
can promote its products effectively. Under this IMC plan, the organization will focus on the
actions where Heating Boots spread the awareness of the significance of heating blanket in
cooling environment and winter season.
Conclusion
From the above analysis, it can be concluded that Nike is a leading player in the sportswear
industry. The company is using effective strategies to market its products among targeted
population. The above report includes different marketing aspects about the Nike Organization.
The above report concludes that company can increase its customer’s base and market share by
introducing this new products range of Heating Boots.

MARKETING 11

MARKETING 12
References
Ambat, L. M. C., Cabagnot, T. R., Flores, D. J. C., & Tiong, R. C. F. (2017). A Study on
Designing a Marketing Plan for a Start-Up Business in the Philippines. In Ascendens Asia
Journal of Multidisciplinary Research Conference Proceedings, 1(2).
Chowdhury, P. P. (2013). Key strategies and issues of positioning: A review of past studies.
American Academic & Scholarly Research Journal, 5(1).
Cwinkler. (2013). Nike vs. Adidas: Competitive Advantage, Retrieved from
https://storify.com/cwinkler/nike-vs-adidas-competitive-advantage.
Datta, H., Ailawadi, K. L., & van Heerde, H. J. (2017). How Well Does Consumer-Based Brand
Equity Align with Sales-Based Brand Equity and Marketing-Mix Response?. Journal of
Marketing, 81(3).
Dawes, J. (2009). "Brand Loyalty in the UK Sportswear Market." International Journal of
Market Research, 51 (1).
Deng, T. (2009). “Just Done It”--- Nike’s New Advertising Plan Facing Global Economic
Crisis . International Journal of Business and Management , 4(3).
Fine, S. H. (2017). Introduction to social marketing. In Marketing the Public Sector (pp. 1-12).
UK: Routledge.
Gordon, R. (2012) Re-thinking and re-tooling the social marketing mix. Australasian Marketing
Journal (AMJ), 20(2).
Harry, W. (2012). "Nike loses England rugby shirt deal to Canterbury". Telegraph. London.
Huang, R., & Sarigöllü, E. (2014). How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-
132). New York: Springer.
Jain, S. C., & Haley, G. T. (2009). Marketing planning and strategy. US: South-Western
Publishing Company.

MARKETING 13
Keller, K. L. (2010). Brand equity management in a multichannel, multimedia retail
environment. Journal of Interactive Marketing, 24(2).
Lu, X., Liu, H. W., & Rahman, M. (2017). The impact of corporate social responsibility on
customer loyalty: a case of Nike and Adidas in China. Strategic Change.
Peteraf, M., Gamble, J., & Thompson Jr, A. (2014). Essentials of strategic management: The
quest for competitive advantage. US: McGraw-Hill Education.
Sorrel, C. (2009). E-chargeable, Self-Heating Boots Keep Toes Toasty, retrieved from
https://www.wired.com/2009/10/rechargeable-self-heating-boots-keep-toes-toasty/.
Westwood, J. (2016). How to write a marketing plan. UK: Kogan Page Publishers.