Nike Marketing Plan: Analysis, Strategies, and Recommendations

This presentation provides a comprehensive analysis of Nike's marketing plan, including situational analysis, financial performance analysis, value chain analysis, and market strategies. It also offers recommendations for enhancing market growth and customer satisfaction.

Nike

Executive Summary
 Marketing plan is the primary function of the management that helps to accomplish
the competitive needs and wants of the customers.
 This plan has been based on the needs and wants of the customers and current
trend in the market.
 Present market plan has been discussed about the company situational analysis,
external or internal analysis to identify the strength & weaknesses.
 Overall, the basic purpose of the marketing plan is to explore the new possibilities
for the company that can grab for better sustainability.

Company Overview
 Nike originally known as Blue Ribbon Sports which was founded by University of
Oregon track athlete Phil Knight and his coach.
 Nike has started business by distributing Japanese Show maker. Bowerman was the
first person who made the first pair of Nike Shoes for himself.
 The first experiences was very bad people was not support and they were too tight as
well. On the other hand, Nike also acquired apparel and footwear companies in order
to expand the business activities and goals.
 Like Nike first acquisition was upscale footwear company in 1988. Besides that, Nike
also bought surf apparel company in 2003.
 Overall, it has been seen that, Nike has bee spend great journey throughout, that makes
Nike more competitive and challenging company in competitive marketing world.

Situation Analysis
 The focus of Nike is on the quality of products at a competitive cost in more range
markets to grab the customer focus.
 Nike is the biggest brand which is also very competitive organization with its
challenging approach of “Just Do It” punch line.
 In order to analysis the situational analysis of the company, SWOT analysis is the best
tool to analyse the actual company strength, weaknesses, opportunity and threats.

To be Continued
Strength
 The biggest strength of the Nike is that they outsourced their all kinds of required
material to overseas. That's why Nike do not have any manufacturing outlet of its
own. Besides, this helps Nike to more focus on the value adding activities such as
shoe design, research in new product development etc.
 Besides, Nike deal globally through it can easily approach the range of customers
and grab their attention through different promotional efforts. Nike brand is a
synonymous with quality and resilience as well as most competitive in their own
field.
 Nike getting several benefits because of the fragmentation of the market that
makes more profit and good sales volume.

To be Continued
Opportunity
 The best opportunity for the company is to expand the market in some more
countries where they get good customers and lifestyle that helpful for the company
sales.
 Besides, Nike can also get into the new product development where they can
diversify their product at different manner such as providing accessories and other
premium products apart its signature footwear segment.
Threat
 This is the fact that company having a global chain which means it also creates
international trade practices including labour strikes and creates some legal
unethical issues.
 Heavy recession is the another fall for the organisation which creates ineffective
business environment for the company. Besides, due to high or premium prices the
power of purchasing has been low by the customers.

Financial Performance Analysis
 Comprehension income is the equality of Nike Inc. during a period from
transactions and other events and circumstances from non owners sources.
 In order to analysis the financial position of the company. For that, study needs to
be going through from the company current position, benchmarking, scorecard,
financial governance etc.
 All these elements and tools helps to determine the best outcome results. In terms
of calculations and profit revenue. So that, Nike is achieving the large cap stock,
with a market capitalization of USD $85.52B.
Income Statement : Income statement is the revenue and expenses are reported on the
income statement that ensure the positive outcome and results for the better
development growth. Companies all expenses and revenues are reported in the
income statement. This reporting could be for a month, year etc. such as Nike present
income ratio has been increased by 5% in 2018.

Value Chain Analysis
 It has been analysed that since Nike using the outsourcing strategies they get minimise the
lower investment risk rather than using in sourcing strategies under that company does not
need to invest on production facility.
 Overall, this strategy or process can help company reduce the efforts on production facility. In
order to analyse the value chain analysis it consists three stages are given below:
Separate the organisation operations into primary and support activities
 In order to reduce the stress company should need to separate both primary activities and
support activities.
 Primary activities includes activities such as produce the product, create a product, deliver the
product to the customer and after sales support.
 Besides, support activities helps to promote the primary activities in order to get help from
marketing activities. Such as Nike has produced the shoe and then distribute by distribution
centres all across the globe. But in order to make sure Nike keep on tracking the product sales
by the help of POS computer systems.

Product Portfolio Analysis
 Nike is the most recognized symbol of brand which gives the great impact on the
customers minds.
 Nike acquired different several brands such as Cole Haan, Converse, Hurley, Nike
Golf, Umbro etc.
 Under which they provide luxurious items and accessories, handbags, coats, luxury
shoes, UK leading football etc.
 Nike each brand represents their own unique identity which also define the clear
meaning to the customers.
 That process or brands enhance the growth for the company development and
stability.
 This is the strength of the company brand portfolio and leverage the sales volume as
well.

External Environment analysis
Political: Political factors affect the new working style and make the best output results
and growth. Pestle analysis model with governmental influence on the remote of
macro environment of businesses. Some factors might help to the company to get the
best and effective results goals such as stable political climate in most major markers
which can be the most effective results goals. Expanding free trade policies is the
another affecting strategies that can help to recontinue the work and most effective
learning outcomes.
Economical: Nike business performance depends on the state of economies where it
sells its athletic footwear, equipments and apparel. These components of the PESTLE
analysis model identifies the economic concerns that affect the remote or macro
environment of the business. On the same side, Some factors play a significant role in
determining the Nike Performance such as economic stability of developed markets,
rapid growth of the developing markets that can also affect the company as a threat.

Competitive Analysis Porter
 Competition rivalry (Strong force): Competitive force for Nike is stronger due to
other competitors. In other terms, the main share company get the market growth
from footwear market. High aggressiveness of firms influence the company
uncertainty goals.
 Power of supplies (Weak force): Suppliers affect the Nike Business through the
availability of raw materials. This element of the five forces analysis tackles
suppliers influence on firms and the industry environment. This element of the five
forces analysis tackles suppliers influence on firms and the industry environment.
 Power of buyers (Moderate): Customer effects directly affect the company
overall performance. Low switching costs can highly affect the company overall
reputation and profitability ratio as well. The moderate availability of substitute
also connects customer to purchase the other company product or services.

Market objectives
SMART Objectives
 Specific : Objective must be specific and clear so that it can be achieve into more
productive manner. Nike planning to open their outlets in 12 key countries as
mentioned above (SMART Goals For Nike 2018 Marketing Strategies, 2018).
 Measurable : Measurable refer that objective must be fulfilled the company aims.
Like Nike research on the consumer behaviour and collect all data and their needs
and wants.
 Attainable : Nike has to research and collect data to grab the target customer
attraction helps company to get closer to the company objectives. By the help of
Nike Free RN Flyknit's variables it can be easy for Nike to attain the customer
engagement and increased sales.
 Relevance : By the help of marketing strategy it can become more easy for the
company to achieve the set objective.
 Time : Over the next 6 fiscal months this project will be completed. By the end of
the calendar year 2020.

Market Strategies
Soon Nike planning to opening the outlets in more than 12 key cities such as New york,
London, Shanghai, Beijing, Los Angeles, Tokyo, Paris and so on. Besides to attract
the buyers' attention they also bring new colours, textures into their products etc.
STP
 Segmenting : Segmenting define the target customers who will be most accurate
for the respective product or services. Such as Nike customers are Sportsman.
 Targeting : After segmentation next company will decide what are the target
strategies. Such as what criteria company should select to gain customer attraction
etc. such as Nike target for Sportswear, accessories, etc.
 Positioning : This is the phase where company starts to make marketing plans and
setting objectives for further implementation.

Recommendation
 In order to increased the market growth company should have required to adopt the
different market strategies that helps to boom the Nike market share.
 Marketing strategies can better help to reach higher customer satisfaction growth
for target market.
 Besides, that, Nike should prioritize strategies that address competition as well.

Conclusion
 As per the above report, it has been presented the whole marketing plan and their
elements towards the company growth.
 Report described value chain analysis, financial analysis, situational analysis to
measure the company actual performance.
 Besides that, report also explained about the internal or external analysis to
determine the strength and weaknesses.
 Overall, study concluded the Nike Marketing plan to enhance the new marketing
opportunities.

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To be Continued
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