Marketing Strategy and Plan for Nike VaporMax

This report analyzes the marketing strategy and plan for Nike VaporMax, including background, target market, product classification, pricing strategy, promotion strategy, and placement of the product. It also provides recommendations to improve the success of the product.

Running head:
Marketing Strategy and Plan
Name of the Student
Name of the University
Author Note

1MARKETING STRATEGY AND PLAN
Contents
Executive Summary:..................................................................................................................4
Introduction:...............................................................................................................................4
-Purpose:................................................................................................................................4
-Authorization:.......................................................................................................................4
-Limitations:...........................................................................................................................5
-Scope:....................................................................................................................................5
Background:...............................................................................................................................5
-The product:..........................................................................................................................5
-The Manufacturer:................................................................................................................5
-Availability:..........................................................................................................................6
-Strength:................................................................................................................................6
-Weakness:.............................................................................................................................6
-Opportunity:..........................................................................................................................7
-Threat:...................................................................................................................................7
Target Market:............................................................................................................................7
-The Main market:..................................................................................................................7
-The Typical consumer:.........................................................................................................7
Product:......................................................................................................................................8
-Three layers of the product:..................................................................................................8
-Product Classification:..........................................................................................................8
-Product Lifecycle:.................................................................................................................9

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-Brand positioning:.................................................................................................................9
Price:........................................................................................................................................10
-Price of the product:............................................................................................................10
-Comparison with other products:........................................................................................10
-Pricing Strategy/psychological pricing technique:.............................................................10
-Two factors affecting the price of the product:...................................................................10
Promotion:................................................................................................................................10
-Advertisement:....................................................................................................................10
-The main promotion message.............................................................................................11
-Execution strategy...............................................................................................................11
-Advertising objective and its relation to the execution strategy.........................................11
-Additional promotional elements:......................................................................................11
-Push or pull strategy...........................................................................................................12
Placement:................................................................................................................................12
-Direct or indirect channels..................................................................................................12
-Distribution intensity and its suitability..............................................................................12
-Type of retail outlet for the product....................................................................................13
Two Innovative Recommendations:........................................................................................13
-Recommendation #1...........................................................................................................13
-Recommendation #2...........................................................................................................13
Conclusion:..............................................................................................................................13

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References:...............................................................................................................................15

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Executive Summary:
Nike is one of the leading global brands in sportswear and sports accessories. Its
market in sports shoes is especially a significant one. On 2017, Nike introduced a new shoe
line called the Vapormax, which was an improvement over its existing product line such as
Nike Air. The product aims to provide a better comfort, better support and ultra light weight
which can significantly help to improve the performance of the user. The aim of the report is
to analyze the marketing strategies of the shoe and to understand how Nike was able to
successfully introduce the new line of shoes in the market and incorporate successful
marketing strategies to ensure better marketing of the product. Through the analysis it could
be identified that the innovative design of the shoe along with the technological advances and
premium quality materials have helped to make the product top of the shelf and premium
quality that is meant for sports professionals and athletes. The brand have successfully
solidified the position of the company as the market leader and therefore ensured the success
of the product. It can be forecasted that VaporMax would do well in the future market and be
able to withstand its competition for quite some time to come.

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Introduction:
-Purpose:
The purpose of this report is to analyze the marketing strategy and plan for the Nike
VaporMaxtm and to provide a background and analysis of the manufacturer, product, target
market, pricing strategy, promotion strategy, and placement of the product and develop
recommendations to improve the success of the product (Ormsby, 2018).
-Authorization:
Authorization would be sought for from the company for the analysis of the product.
-Limitations:
The study would be based on the resources available on the internet regarding Nike
and its product to identify the innovation strategies and features of the product, its marketing
campaign and its pricing and promotional strategies. Therefore, the analysis would be limited
to the resources available online, subjected to the accuracy of the details available on the
official websites (Bull et al., 2016). Additionally, a time constraint is also applicable.
-Scope:
SWOT analysis would be done on the product to find its strengths, weaknesses,
opportunity and threats. The products life cycle, classification, three layers and position
would be discussed. One advertisement would be selected for the product and its execution
strategy would be analyzed. Additionally, the placement of the product would be discussed
for its suitability in the market. The recommendations would be proposed based on such
understanding (Bull et al., 2016).
Background:

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-The product:
Nike Air VaporMax Flyknit Running Shoes provides a lightweight and bouncy
feeling for its users. The product is top of the shelf product that was launched in 2017, and
features some of the top footwear innovations developed by Nike. The shoe is designed to be
ultra light and super comfortable (Nike.com, 2018; Childs & Jin, 2018).
-The Manufacturer:
Nike Inc is a multinational company whose headquarters is located in Washington
County, Oregon, USA and was founded in 1964. It is one of the leading manufacturers of
sportswear, sports accessories, sports equipments and apparels. As of 2017, the global
revenue for Nike was around 36.4 billion USD and a net income of 1.93 billion USD. It holds
about 26% of the market for sports footwear, and is ahead of its competitors Nike and
Addidas. The company is one of the leaders in the market in sportswear and is considered as
one of the most valuable apparel brand as of 2018 (news.nike.com, 2018; Childs & Jin,
2018).
-Availability:
The shoe can be purchased from the Nike online store and retail stores in Australia
(nike.com, 2018).
-Strength:
The strengths of the product lies in the innovative features and technologies of the
product, which includes Nike Flywear (which creates target stretching areas for the shoe to
support adaptive performance), Nike Flyknit Upper (which provides a lightweight support),
Outsole (which provides maximum traction using integrated TPU lugs), Integrated Rubber
Pods (which is placed in areas of high impact to increase the durability of the shoe) and

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VaporMax technology (which provides air cushioning for best performance) (Seamarks 2017;
Christensen et al. 2014). The shoe also provides true size for the owners, it comes in various
color options to suit the user, has a good midsole buoyancy and support, has a better airflow
and is very light (nike.com 2018).
-Weakness:
Significant weakness of the product includes the high end price, the flyknit design not
being as durable according to customer expectations and pricing, durability of the shoe
tongue, durability of the air cushion, and insufficient underfoot protection (DeAlmeida,
2017).
-Opportunity:
The design of the shoe still has some scope for further development; these include
increasing the durability and sturdiness of the flyknit, shoe tongue and the air cushion. The
underfoot protection can also be improved so that the wearers do not feel what they are
stepping on to. The price of the shoe can also be reduced to make it more competitive with
other brands and increase the customer’s sense of the value for money (Pandey 2017).
-Threat:
Threats to the market for Nike VaporMax include its competitors such as Adidas
Ultra Boost which provides very similar features for its owners as VaporMax. Other threat is
from the fake imitations of Nike shoes that affects the brand value and market of Nike. Other
competitors for Nike includes: Reebok, Puma, Converse, Fila apart from Adidas.( Brohi et al.
2016)
Target Market:

8MARKETING STRATEGY AND PLAN
-The Main market:
The main market of Nike is in the sector of sports and athletic footwear and
accessories. Nike VaporMax specifically aims towards the sports industry sector where there
is a need for high quality and high performance shoes and footwear that can maximize the
performance of the athletes on the field (nike.com 2018).
-The Typical consumer:
The typical consumers for the product are the athletes and sports professionals who
need state of the art footwear to support the optimal performance. The market also includes
non professionals and enthusiasts of sports. Additionally, the products also focus on
individuals who engage in running and jogging activities and fitness exercises (Mahdi et al.
2015).
Product:
-Three layers of the product:
The Core Benefits that was intended for the shoe includes ultra light, exceptionally
comfortable, improved support and better airflow. Also the product aims to support best
performance for the athletes meeting their footwear needs (Cast et al. 2016).
The Actual Product however has few shortcomings, such as the durability of the flyknit,
shoe tongue and the air cushion. According to users, the shoe does not have sufficient
underfoot protection.
Augmented Product specifications include a good after sales service and warranty services
that provide support to the customers after the purchase of the products. Nike also provides
delivery of the products to the customer’s home (Spivack 2015).

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(Charter 2017)
-Product Classification:
Nike VaporMax is both a Shopping Good as well as a Specialty Product. The
Specialty Product category can be attributed to the strong brand identity, and special focus of
the product on sports performers providing special features to enhance their comfort and
performance. The Shopping Good category can be attributed to the high price, quality and
value of the product, which requires most customers to have a detailed consideration before
purchasing it, comparing it with other Brands and products to understand if the show is the
most suitable for them. This shoe is not intended to be bought compulsively or without a
prior consideration (Vaneeckhaute et al. 2017; Burns et al. 2014).
-Product Lifecycle:
Birth: This is the stage where the product would be designed and manufactured and
marketed. It marks the beginning of the life cycle of the product.
Growth: This is the stage where the product actually hits the market through the distribution
channels, thereby leading to the growth in the market of the product.
Maturity: This is the stage where the customer purchases the product and thus the products
actually mature to address the brand’s objectives.
Decline: This stage marks the reduction in the use of the product due to wear and tear, and
signifies the completion of the life cycle.
Revival: This is an additional stage, where the value of the product can be revitalized through
reselling of the used product at a lesser price.
-Brand positioning:

10MARKETING STRATEGY AND PLAN
The brand positioning of the product includes the main attributes that are featured in
the VaporMax shoes, which includes its state of the art design and crafting, top quality
materials, durability of the shoe, high reliability of its performance (comfort and support) as
well as the pricing of the shoe. The high end price implies the focus market of sports
professionals and athletes, the high quality of the shoe places the product at the top of the
shelf category. Both these attributes helps to brand the product to be superior to its
competitors (Kozinets 2017).
Price:
-Price of the product:
VaporMax is priced from AUD 190 to AUD 225 (store.nike.com 2018).
-Comparison with other products:
Price for Adidas UltraBoost: AUD 260 (adidas.com.au 2018).
Price for Converse All Stars: AUD 130 (converse.com.au 2018)
-Pricing Strategy/psychological pricing technique:
The brand utilizes a premium pricing strategy to support the premium quality and
brand image of VaporMax. The VaporMax shoes start from AUD 190 which can
psychologically attract the customers in a better way though its odd price (Flynn 2015;
store.nike.com 2018).
-Two factors affecting the price of the product:
The two main factors that are affecting the price of the product are quality and the
main market of the product. The high quality materials and innovative technology implies a

11MARKETING STRATEGY AND PLAN
greater cost of production, while the target market of sports professionals also result in the
higher marking price, showing its exclusive nature (Flynn 2015).
Promotion:
-Advertisement:
The advertisement (added in the appendix) was posted on The Guardian on July 22nd,
2018. The advertisement introduces the readers to a new lighting technology used in Nike
VaporMax and Vaporlight shoes for the elite competitive market (theguardian.com, 2018).
-The main promotion message
The main promotional message given in the advertisement was the new technology
that introduces lights to the shoe to attract an elite and trendy customers, and boasts of its
technological advances in footwear. The article mentions that the shoe lives up to the hype it
created regarding this new technology and gives superior performance, and asks whether
such technology should be allowed in sports (theguardian.com, 2018).
-Execution strategy
The execution strategy for the advertisement really seemed to be effective. The
advertisement takes the point of view of a critique, suggesting that the technology used by the
brand being too ahead of its time, thereby implying that it was indeed a top of the line quality,
thereby adding to the publicity of the shoe (Aguirre et al. 2015).
-Advertising objective and its relation to the execution strategy
The objective of the advertisement was to support the hype around the brand, and
improve its market, which it was able to do successfully by supporting two important facts.
Firstly the advertisement mentioned that the product was able to live up to the expectations

12MARKETING STRATEGY AND PLAN
and secondly the product was too good to be used in the sports arena due to its high
technology. Both of these aspects have been utilized in the execution of the advertisement
(Kingsnorth 2016).
-Additional promotional elements:
Additional promotional elements utilized in the advertisement include the highlight on
the quality of the product, the superior designing of the shoe that makes it top notch. The
advertisement also highlights the story of the Olympic Athlete Kara Goucher who missed the
Olympics qualifiers due to shoe technology, thus implying that a better technology in sports
shoes could have prevented such a mishap (Angell and Kraemer 2017).
-Push or pull strategy
The advertisement was intended as a pull strategy to attract new customers to the
product. The strategy focused on customers who are serious about the technology in the shoe
design and on the performance of the product (Parnellet al. 2017; Sethi et al. 2018).
Placement:
-Direct or indirect channels
The VaporMax are available both online as well as retail stores. Thus it uses both
direct as well as indirect channels for the marketing of the products. Direct marketing is done
through the official websites, advertising campaigns and retail merchandising. The
organization also indirectly markets the products through its corporate social responsibility
strategies such as holding sports events and through sponsorship of sports persona such as
Michael Jordan (Park et al. 2018; Salari and Backman 2017; Abdallah 2015).
-Distribution intensity and its suitability

13MARKETING STRATEGY AND PLAN
The distribution of the product is extensive as it involves online stores, retail stores
and sports shops that sell the Nike VaporMax shoes apart from the company’s official site
and company owner stores. Nike has a global network of vendors and outlets where the
product is easily available thereby suggesting a very intense distribution system. It is also
very suitable method considering the costs of marketing and the hype that was developed for
the product (Park et al. 2018).
-Type of retail outlet for the product
The company utilizes both retail stores and online stores to sell the product. The retail
sources can allow the company to utilize retail partners for selling the products through
channel intermediates. The online stores help the customer to buy directly from the
company’s website thereby reducing the expense of the intermediate channels (Jacobs 2015).
Two Innovative Recommendations:
-Recommendation #1
The first recommendation that can be provided for the product is the inclusion of lace-
less shoe design which can help athletes with disabilities (such as cerebral palsy) to wear the
shoe more easily. The design can also prevent tangling of the laces and changing of the laces.
This can also make the shoe more comfortable to wear.
-Recommendation #2
The shoe can also have an inbuilt microprocessor chip, powered by a battery that
recharges from the force and kinetic energy of the shoe. Similar technologies have been
implemented in several sports watches that charge it automatically. The microprocessor chip
can process information such as the speed and distance covered, which can be linked

14MARKETING STRATEGY AND PLAN
wirelessly to a computer and help the athletes to monitor their own performances (Ellis
2017).
Conclusion:
NikeVaporMax is a top of the shelf sports shoe that is extremely lightweight, sturdy
and comfortable, and provides a state of the art design and technology in footwear. The
product represents Nike as a global leader in sportswear, and is supported by excellent
marketing of the product. Even though the product has many competitors, VaporMax stands
ahead of other shoes in terms of its price and quality. The materials used in the product are
also of very high quality, and it ensures better durability and comfort for the user. Proprietary
technologies such as Flyknit, Nike Outsole, Integrated Rubber Pods and Vapor Max ensure
that the shoe is not only lightweight and comfortable, but also provides adequate support.
However, the product still has scope for further improvement in terms of the durability of the
flyknit design, shoe tongue and air cushions. The product still has managed to overcome its
competitions in spite of such limitations, showing that the marketing of the product has been
largely successful. The product mainly aims towards the sports market and the target
customers mainly being athletes and sports personnel. The brand is well positioned in the
market, and through sponsorships to famous sportsman like Michael Jordan has ensures
success of the product in the market. Overall, Vapormax proved to be a viable product for
Nike and helped to further its brand image and brand value in the current market.

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Appendix: The Advertisement

20MARKETING STRATEGY AND PLAN