NIke International Marketing Strategy - PDF

International Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Evaluate how some drivers of globalisation can help NIKE expand in this new market. .3
2. Analyse the nature of the global environment....................................................................4
3. Identify and justify one specific target market within the UK that the NIKE should target
immediately............................................................................................................................5
4. One type of global International Strategy method that NIKE should use to grow in global
markets...................................................................................................................................5
5. International Market Entry strategy is more appropriate for NIKE to enter and grow in the
UK market..............................................................................................................................6
CONCLUSION ...............................................................................................................................7
REFRENCES...................................................................................................................................8
.........................................................................................................................................................9

INTRODUCTION
International marketing is the application of marketing principles to satisfied the varied
needs and wants of different people who resist across the national borders. In simple term it can
be said that, marketing activities which are undertaken in more than one nation is known as
international and global marketing (Akaka, Vargo, and Lusch, 2013). This report is based on
NIKE which is Apparel, Accessories and sports equipment company. It is founded in 1964 on
25th January by Bill Bowerman and Phil Knight. Respective organisation is US multinational
fashion brand which is now entering in the market of UK with new product. This assignment is
going to throw light on some drivers of globalisation as well as analyse the nature of global
environment. Moreover, it will identify specific target market for NIKE and several other factors
related to business expansion.
MAIN BODY
1. Evaluate how some drivers of globalisation can help NIKE expand in this new market
Globalisation is the procedure which initiate by the organisation to develop
internationally or start operation on an international market. It is an integration between the
companies, people and governments. Government policies are designed to open the economics
both domestically and internationally to assist the development and improvised the living
standard of the people. In social term, globalisation represent the interaction among global
publication, the exchange of ideas and values among different cultures (Berthon and et.al., 2012).
However theses polices are created an international market that has benefited multinational
corporation evaluating worldwide to detriment among different businesses culture etc.. There are
some drivers of globalisation which help them in entering in market of UK with new product i.e.,
smart watch or fitness tracker. Technological Drivers – This is the factor which make globalisation easy for people,
goods and ideas for moving all over the world. For instance, advancement is
transportation, telecommunication and automation result in easy entering for NIKE in the
market of UK with smart watch. Because through transportation export and import will
be easy and telephone communication help in transferring information and data easily.
 Cost Drivers – Cost is the term which vary from nation to nation and NIKE can take
advantage of this factor (Hakansson, 2015). Other cost drivers to globalization are the

opportunity to build global scale economies and the high product development costs
nowadays. But respective organisation is offering affordable price to their existing as
well as potential customers in market area.
(Source: Unisex smart watch, 2018)
Illustration 1: Unisex smart watch

2. Analyse the nature of the global environment
There are several factors which affect decision of business expansion same as NIKE also.
These are customer’s trends, social and cultural conventions that is affecting international
marketing decision of every company. NIKE is Entering in the market of United Kingdom with
their new product smart watches or fitness tracker and all these same factors are also affecting
their business. Explanation of these are as follows: - Customers Trends – People are becoming more health conscious now a days and
preferring smart watches because it measures their steps, water level, heart beats and so
on. As per the data of 2016-17, Sales of smartwatches increase, up to 23% on 2016, with
an estimated 1.96 million devices sold in 2017. It means that, sales of smart watches or
fitness trackers enhanced by 16% in the same duration with an approximation 1.99
million devices sold-out in 2017 (sales of fitness bands and smartwatches, 2018). Social – Every country population have different lifestyle, buying and purchasing habit,
attitude towards health and product quality etc. It is the responsibility of NIKE to produce
smart watches or fitness trackers by keeping all these factors in mind. Now a day’s
people are more aware about health mostly youngsters this will result in increasing sales
of NIKE smart watches. As well as brand expansion will be successful for the respective
organisation if the manufacture product after keeping in mind all the social factors related
to United Kingdom. In UK, several changes are taking place in working environment also
1.5 million people currently work from home full time, while 4.2 million work from
home sometimes (UK Social Impact Trends, 2018). This is affecting health and result in
increasing demand for NIKE new product.
 Cultural – This is the term which is the combination of language, education, religion,
rituals and many more. All these factors result in buying habits of individual, lifestyle,
consumptions and many more (Lee and Carter, 2011). But culture is changing and
peoples are adopting different lifestyles as well as becoming more conscious about their
health. Such modifying culture will result in increasing demand of NIKE smart watches.
3. Identify and justify one specific target market within the UK that the NIKE should target
immediately
A target market is a group of customer includes (individual, households or organisation)
potential buyers for which business positions it products and services (Meissner, 2012). The

target market specially consists of customer who reveals same belongingness are considered to
be most profitable segments. In other words target market include those specific customers to
whom products and services are position by the company. NIKE can target their market on the
basis of demography and psychographic segmentation, usage of product,brand preference as well
as decision making process. There are mainly four type of target marketing :-
Age Target marketing – A product is targeted to a specific age group to vigorous the
marketing efforts and generate interest within the particular age group for the product. Because
there are several products manufactured by the company as per the age group of customers.
Income-sensitive marketing – Income-sensitive marketing attempt to target small
business product or services of a particular income group and economic status.
Gender-specific marketing – In this company target particular gender or specific group
within the gender (Paliwoda and Thomas, 2013). there are some but which is manufactured for
specific gender.
Geographic target marketing – It is the particular area within the country which have
variety of products needs. Sometimes company target market on the basis of their geographical
areas.
Thus, there are several types of target marketing but NIKE is targeting 20 to 30 age group
people with affordable amount of smart watches within United kingdom. Because mainly
youngsters are getting more health conscious so they will purchase product of same organisation
easily. Because product offering by them is suitable for the health conscious person and they are
mainly youngsters.
4. One type of global International Strategy method that NIKE should use to grow in global
markets.
Global international strategy is the tool or technique which is utilised by the enterprise
when they want to compete or expand in the global market (Papadopoulos and Heslop, 2014). In
simple term it can be said that, this is a strategy which firm pursue while wish to expand
internationally. This is a plan which is developed or designed by the company for doing business
beyond its boundaries. NIKE is also doing expansion in United Kingdom with their new product
i.e., smart watch. For growth and generating revenue there is requirement of proper global
international strategy for NIKE. There are several types such as multi-domestic, global and

transnational strategy but for the same association Transnational is best. Description of this are
as follows :-
Transnational Strategy – It is the strategy in which single organisation operates in
different nation with same brand name as well as price and quality of products. companies tries
to balance the desire for efficiency with the need to adjust to local needs and wants within
several nations (Vincent and et.al., 2011). For Instance, NIKE is the multinational brand which
rely on the same name and offer similar products all around the world. They are offering same
goods to each and every country along with its price also. Most important part of this strategy is
that NIKE is not doing discrimination in their offering from one country to another.
5. International Market Entry strategy is more appropriate for NIKE to enter and grow in the UK
market.
There are various reasons because of that business look for expansion or entering in new
market. For this process there are several strategies through which NIKE can enter into the
market of UK with their new product smart watches. Explanation of these are as follows : -
Franchising – It is the method of business expansion in which An authority or license
generated by the government or an organization to individual groups enabling them to sell the
goods and services and actively take part in the organisation controls. In other word Franchise is
a business relationship where the owner authorises with another party to use their brand,
products, business process and in return adequate consideration for the same. This is the easiest
way for entering in new market and it will result in growth after sometime.
Direct Exporting – It is a new way to enter in foreign markets by producing the product
in the home country and shipping it over new countries (Zhou,Wu and Barnes, 2012). This
strategy is the perfect for the new developing countries who does not have enough funds to take
risk. The firms can hire distributors or agents who can take care of exporting and promoting the
new product in the market.
Licensing - It is a contractual agreement, where firm provides proprietary assets to a
foreign company in exchange of royalty. Due to complex rules and regulation or high
transportation cost it may be possible the company may not be able to export goods. Evenly it
diminishes the risk of the company and have to share their proprietary secrets with outsider. This
market strategy is appropriate for those companies who does not want to commit international
expansion.

Above mention are the methods through which NIKE can enter into the market of United
Kingdom with their new product i.e., smart watch. Out of all these Franchising is the best
international market entering strategy for the respective organisation. Because in this option
there is no requirement of huge amount for expansion. As well as easiest way through which any
enterprise can enter in new market with their latest goods or services.
(Source: Smart Watch, 2018)
Illustration 2: Smart watch

 Demographic Segmentation- The main motive of Nike is to bring inspiration and
innovation to every athlete in the world. Now they are coming up with smart watches in
the UK market. Primarily targeting youngsters who desire to look athletic and
fashionable as well as health conscious. Mainly socio-economic classes are targeted to
increase their market share and remain competitive in the market scenario.
 Geographic Segmentation- Nike's geographic segmentation consist major markets
through out the global markets. It segment its product according to the age, gender,
occupation and generation etc.. On the basic of sought Nike is coming up with new
product that is smart watches for youngsters, students, professional workers. Emphasising
more on style, socio-economic class people.
 Psychographic Segmentation- Psychographic Segmentation of Nike is to target
customer based on the life style, personality, activities and interest. Nike is coming up
with smart watches for youngsters in UK market. Associating with the lifestyle as well as
suits to their personality by creating unique feeling to have smart watch.
 Behaviouristic Segmentation- Nike seeks to build customer royalty. By providing
consumer with greater product quality that suits their personality, status as well creating
unique feeling. According to the behaviour aspect of the youngsters, professional workers
Nike is coming up with new smart watches.
CONCLUSION
From the above assignment it has been concluded that international marketing is that
process in which company do promotion as well as advertisement of their goods and services at
global level. NIKE is entering in the market of United Kingdom with their new product smart
watch they chosen franchising as the mode for entering in market. For an organisation target
market is important and same company is targeting youngsters because they are more health
conscious. Apart from this, while doing business at global level several factors give wide impact
on the operations of NIKE such as culture, social and customers trends. There is requirement of
proper global international strategy so that company can take better place in new market or grow
at global level.

REFRENCES
Books and Journal
Akaka, M. A., Vargo, S. L., & Lusch, R. F. (2013). The complexity of context: A service
ecosystems approach for international marketing. Journal of Marketing Research. 21(4),
1-20.
Berthon, P. R. & et.al., (2012). Marketing meets Web 2.0, social media, and creative consumers:
Implications for international marketing strategy. Business horizons. 55(3). 261-271.
Hakansson, H. (2015). Industrial Technological Development (Routledge Revivals): A Network
Approach. Routledge.
Lee, K., & Carter, S. (2011). Global marketing management. Strategic Direction. 27(1).
Meissner, H. G. (2012). Strategic international marketing. Springer Science & Business Media.
Paliwoda, S., & Thomas, M. (2013). International marketing. Routledge.
Papadopoulos, N., & Heslop, L. A. (2014). Product-country images: Impact and role in
international marketing. Routledge.
Vincent, S. M. & et.al., (2011). U.S. Patent No. 7,927,253. Washington, DC: U.S. Patent and
Trademark Office.
Zhou, L., Wu, A., & Barnes, B. R. (2012). The effects of early internationalization on
performance outcomes in young international ventures: the mediating role of marketing
capabilities. Journal of International Marketing. 20(4). 25-45.
Online
sales of fitness bands and smartwatches, 2018. [Online].Available
Through<http://www.mintel.com/press-centre/technology-press-centre/sales-of-fitness-
bands-and-smartwatches-approach-four-million-devices>
UK Social Impact Trends, 2018. [Online].Available
Through<https://www.tbd.community/en/a/key-uk-social-impact-trends-2017>
Unisex smart watch, 2018.[Online]. Available
Through<https://www.indiamart.com/proddetail/y1-smart-watch-15037741812.html>