Critical Analysis of international Organisation - Nike

Report with critical analysis of how the
international organisation “NIKE” , trough its
integrated marketing communication programme
, is a market.

Table of Contents
INTRODUCTION...........................................................................................................................1
a. Analyse the organisation’s range of products and an analysis of the specific product and
profiling of the target market......................................................................................................1
b. Strategic marketing communication plan to market the product in the UK and evaluate how
all the elements of Communication Process...............................................................................5
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing communication refer as the way to used by organisation to transfer or
communicate content about the goods and the brands they sale, either immediately or indirectly
to the desired buyers with purpose to convince them to purchase. Marketing communication use
different channel and tools of merchandising in order to attract large number of consumer such
as promotion, personalized merchandising, sales promotion, public relations and direct
marketing. Such channels are mainly focus on their way of business communicates a message to
desired market place. Marketing communication are such method and technique which an
organisation or the business individual use to convey promotional messages about the products
and services. Experts and specialist of marketing communication are design and develop
different types of persuasive communication and deliver it to the target people (Luxton, Reid and
Mavondo, 2015). The report is based on Nike which is an American multinational corporation
which is engaged in the design, development, production and worldwide marketing and sales of
footwear, equipment and other related services. It is the world's largest supplier of athletic shoes
and apparel and main manufacturer of sports techniques or equipments. The main purpose of this
assignment is to analyse the company description and its product range which analyse specific
product in the target market place.
a. Analyse the organisation’s range of products and an analysis of the specific product and
profiling of the target market
Nike is an American multinational organisation which are design, manufacture, develop
and sale its variety of products in the large market place. Its products are footwear, apparel,
auxiliary and work. The company headquarter is situated near Beaverton, Oregon, in the Portland
metropolitan area. It is the worldwide big provider of gymnastic shoes and apparel and they are
mainly producer of sport techniques. In he year of 2012, it engaged more than 44,000 employees
in all over the world. In 2014, the brand was valued at 19 billion and they are developing
valuable brand among sports businesses. Nike try to expand their business and diversified with
its product line through number of acquisition (Fill and Turnbull, 2016). They are operate and
regulate their companies in six geographic segments such as North America, Western Europe,
Central and Eastern Europe, Greater China, Japan and other emerging market places. Nike sale
its variety of products through their retail stores and internet websites and through mix of
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independent distributors. Along with this, they are distribute their products to wholesale
customers and directly to the consumers or users. Nike is one of the world's top sports and fitness
companies and it has a legacy which dates back in the year of 1962 when they first arrived on the
scene under the name of Blue Ribbon sports. In current time period, Nike is mainly popular and
famous for their top of the line sports apparel and athletic shoes. The company has developed
and created by selling goods such as apparels, footwear and different types of sports equipments.
They are mainly focus on basketball, soccer, combat sports, basketball and eye wear firm. They
are also sell shoes for outdoor activities such as golf, tennis, recreational uses and cycling. Nike
is the company which brands have been worn and touted by some of the world's most famous
and popular athletic and celebrities who are promote their products among customers.
Nike is the major privately celebrated listed brand athletic wear and instrumentality
provider is based in the United Kingdom. It is the global starring provider shoes and apparel
company and producer of sports equipments with income in excess of 18.6 billion dollar. The
company mainly focus on offering Brand product in nine categories such as running, NIKE
Basketball, Jordan Brand, Football, Men's Training, Women's Training. Nike's athletic footwear
commodity which are planned principally for particular athletic use, although a large percentage
of the goods are aged for casual or leisure purposes (Karjaluoto, Mustonen and Ulkuniemi,
2015). These are variety of products which are offered by respective company in order to
increase attention of large number of buyers in improved way. In this, they are sale Jordan Brand
shoes which are mainly purchased by those customers who are participating in physical fitness
and sports on regular basis. They are normally looking for great attribute sports shoe which has
the presentation needed to assistance them in their selected field of action. They are target 21-25
age group people who are involved in football games and fitness activity. Target market is a brief
statement of the kind of commodity which they want to sell in the large market area. A target
market profiling identifying the characteristics of the product which are most likely to purchase
by them. They are target buyers on the basis of age, gender, location, income level and education
to build the visibility. Most of the customers are attracted towards Jordan Brand shoes because
they are very flexible, comfortable and help in protecting injuries such as blisters and calluses.
Marketing tool and techniques are very significant in enlarge business growth and
enhancement. In an organisation advertisement are very much important that are differ from
organisation to organisation and deliver right kind of message to people. Along with this, those
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customers who are go to the gym and some fitness class on daily basis and also take part in
organised sports. They are mainly curious in well known brands which are offering high attribute
based shoes to them. It can be analysed that nowadays most of the people love sport shoes so
company are offer them variety of Jordan Brand shoes which fulfil their needs and demand. This
is different with other products in which they are made with texture is hard and comfortable
(Štefko, Kiráľová and Mudrík, 2015). Nike main aim is to target people from teenagers to adults
which involves 15-35. They are conduct surveys for analysing and examining customers needs
and wants regarding specific goods and services. With the help of different marketing channels,
they can easily target large number of customers through social media, Facebook, Instagram,
YouTube and many more. They are offer such shoes which are light in weight and these are
durable despite provides exceptional comfort and flexibility.
Nike are target such customers who are interested in their current supplying product like
Jordan Brand shoes. They are mainly attract users who are interested to buy their innovative
goods and services in the large market place. By this, they can enhancing their company
goodwill and reputation in all over the market area (Mihaela, 2015). Marketing is play an
important role while selling variety of goods and services like sports in the market for gaining
high income and profitability. It is one of the most important reason for attracting more buyers
towards Jordan Brand shoes because large number of people are active in games, football and
basketball activities. Nike offering different type of goods and services so that they can easily
attract large number of customers.
Marketing communication tools or promotional mix are refer as the lend of several
promotional tools and methods which can be utilised by the business to make, maintain and
enhancing the demand of goods and facilities. Nike use promotional mix and marketing
communication mix which assist in interacting and communicating with target customers in the
international athletic, footwear, clothing and equipment business. In addition to this, respective
organisation usage merchandising communications to boost its enterprise operations and
functions and its products, which considering the dynamics of the target market areas. In this, the
marketing communication mix is also called publicity which correspond the promotion elements
of the marketing mix (Andreasen, 2018). The respective company use various types of
communication channels for promoting their merchandise and services. An organisation's
marketing communicating mix can be easily observe in the market in the form of advertisement
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and other main activities. This will assist in attracting large number of people towards firm
innovative goods and services in better manner. Promotional mix is that theory which assist
organisation in advance various kind of commodity and services among customers in the market
place.
In order to develop and maintain its marketing communication mix, Nike Inc. applies a
strategical collection of personal selling, advertising, sales promotion, public relation and direct
marketing. This aggregation allows firm in order to boost its goods and strengthens its brand
name picture and goodwill. These are described as under:
 Advertising – In this, Nike's main goal is to achieve with target customers with sizeable
accomplished consequence. Successful advertisement are promote brand to the
customers. Such type of advertisement are assist in make improvement in buyers point of
view regarding company and its goods. Nike use celebrities to correspond and attract
ideal customers of its commodity. An organisation's advertisement are present highly
famous personality such as professional athletes. As a effect, such customers are being
motivated to purchase and use such type of goods. There are various features of
advertising such as provide information, paid communication, non personal presentation,
target oriented and so more. Along with this, advertising has different characteristics
which involves different tools which help in promoting products through use of media
such as social media, Facebook, Instagram and so more (Hambrick and Kang, 2015)..
Advertisement is an effective method which help them in attracting domestic as well as
international customers towards desired goods and services. It is the best way to interact
and communicate with the potential buyers. Advertising assist to informs the customers
about brand availability in the market place and there are variety of products which are
used by them. It is helpful for increasing business growth and success and it is sell more
products and services to existing buyers. This will assist in enhancing profitability and
income level of the company.
 Public relation – Nike Inc. usage public relations in the marketing communications. In
this, an organisation implement public relations as a manner of identifying societal
problems which are connected to their enterprise operations or functions. The respective
company applies this method of public relations by sponsoring sports events and similar
activities. Along with this, they are use such activities to interact with target customers
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regarding their business services. Nike's personal relation efforts typically happen in the
stores. Store personnel are trained in order to provide support to buyers. Such
organisation are anticipated to knowing more about the organization goods and to
convince consumers to purchase such goods (Shankar, 2016). This strategy helps in make
customers awareness of good about products so they are purchase from the firm. Thus,
Nike's selling communication mix usage individualized relation method which assist in
creating and developing better customer experience and make effective customer relation
while promoting organisation's goods. Personal relation assist company in developing
strong relation with their customers so that they can analyse their needs and wants in
better manner. It is an effective tool for Nike because this will help them in making
relation with their new as well as existing customers who are purchase more products
from an organisation. Public relation is an important method which assist company in
increasing their power, developing good relationship with their key people and managing
reputation or goodwill. Sometime, public relation is being confused while conducting
marketing and it is importance for enhancing sales volume and gain attention of
customers.
 Sponsorship – It is an instrument of encouraging an event, activity, individual and
organisation business or through the supplying of merchandise and services. An
individual or group of people who are providing support to an organisation in investing
capital, arrange events and organised it properly. It is refer as advertising which seeks to
establish a deeper association and combination between an advertiser and a publisher
often involving coordinating beyond the banner placement (Šramová, 2015). Sponsorship
is also known as one of the powerful marketing tools and method which are used by Nike
in order to promote their Jordan Brand shoes and others in the large market place. This
will help company in building and developing awareness among ideal customers
regarding appropriate goods and services. Nike spent around 1.5 billion in organising
events such as Sochi, Russia Olympic games where large number of people are come for
enjoy the game. It is another major method of promoting Nike's goods and services
among large number of customers or people. It is helpful in increasing brand awareness
of an organisation as a whole and to provides attractive content for a wide range of
products and services. It is the business relationship between a provider of funds,
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resources or services and an individual, organisation so they are offers in return of some
rights and associations that can be used for commercial advantages.
 Direct marketing - For Nike, advertising is not an effective method because this will
not help in increasing sales of specific products in the large market place. With this
method they does not easily promote their new type of goods and services in the target
markets. In this, company approach an individual who are sale their products to the
customers. Nike's mainly use advertisement method in the marketing communication mix
which help in establishing powerful social relation with target buyers and encourage them
to buying the firm's merchandise. advertising approval to Nike's competitiveness through
customer loyalty. Direct marketing is not suitable method for the company because they
does not promote products and services in the large market place without taking
permission of different retailers or sellers.
It can be analysed that nowadays most of the people love sport shoes so company are
offer them variety of Jordan Brand shoes which fulfil their needs and demand. With the help of
different marketing channels, they can easy to mark large amount of customers through social
media, Facebook, Instagram, YouTube and many more. Along with this, there are various
marketing communication tools which help them in gaining attention of large number of
customers such as advertising, public relation and sponsorship which help in increase number of
buyers.
b. Strategic marketing communication plan to market the product in the UK and evaluate how all
the elements of Communication Process
`Marketing plan describes the action which participating in reaching with particular
merchandising goals and objectives within given time period. A market plan begins with the
determination of particular needs and how an organisation can easily fulfil its demand and wants
in better manner. The plan includes deep analysis of current market situation and condition
which includes sales prediction, improvement of schemes, project of financial needs.
Strategic marketing plan:
Executive summary – The marketing communication plan defines the activity which
help company in reaching with desired customers through use of different channels. Such as
social media, advertising, personal relation and sponsorship. This will assist in developing and
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making effective relation with their customers by offering them potential goods and services in
the market place (Gulbahar and Yildirim, 2015).
Business initiatives – The business initiatives element of marketing plan assist in
reaching with desired goals and target of an organisation. The company need to take top position
in the large market place where they can easily gain attention of customers towards appropriate
goods and services.
Target market – Nike mainly target those people whose age is between 21-35 and such
who are able to purchase different type of products and services.
Market strategy – Nike sale online products which are gain attention of large number of
domestic as well as international customers. They are use psychographic segmentation to target
customers and it is use separate campaigns or strategy which capture the whole market potential
of different segments.
Marketing channels – They are use various channels which help them in reaching with
desired goods and services. Nike use advertisement, sales promotion, personal selling and public
relation method of communication which assist them in promoting their products.
Marketing Communication Plan:
Overview of company – Nike is one of the leading sports footwear and apparel
company. The main Nike brand is mostly targeted towards the athletes, selling various goods
such as shoes, sporting equipments and clothes. They are mainly manufacture industry which are
expected to slow down growth as per the modest growth in the sports participation rate.
Vision – The vision of Nike is “To bring inspiration and innovation to every athletic in
the world”.
Mission – The Nike main mission is “To drive us to do everything possible in order to
expand human potential. They are develop and create groundbreaking sport innovation by
devising our merchandise more preserve, by building a originative and different worldwide team
and make a optimistic effect in communities where they live or work.
Objectives – The main objective of Nike is to communicate with their desired customers
and attract them towards purchasing various products and services. They are target customers
who are interested to buying their company's goods and services (Duffett, 2017). Another
objective of Nike is to make profits for its shareholders and attract large number of customers
towards desired products and services.
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Implementation – In an organisation, they are execute such strategy which help them in
analysing company's strengths and weaknesses through which they can easily positioned their
product in the market. They are expand their business in international areas when they are
communicate and interact with their customers. For gaining success, it is required for an
organisation is to analyse whole market place to determine various customers needs as per this
they are develop products and services.
Stages situational analysis:
Current position – Nike is positioned as a premium brand, selling well designed and very costly
products. The Nike's effective marketing mix program which support the brand positioning in the
target market place. The product is considered as highly effective and comfortable to the athletes.
Theories: SWOT analysis is the marketing theory which assist analysing Nike strength,
weakness, opportunities and threats in better manner.
Strengths:
 Strong Brand awareness – Nike is one of the famous brands in the global area as its
name alone memorable, simple to articulate and specific in quality. Nike has captured
approximately 31% of the worldwide acrobatic wearable market place.
 Huge customer base – Nike has million of customers in all over the world so they are
fulfil all needs and wants of their customers by providing them required goods and
services (Royo-Vela and Hünermund, 2016).
Weakness:
 Poor labour condition in international countries – In the previous years, Nike has
mainly targeted regarding poor worker conditions. Such issues are directly affect on
business operations and its functions and reduce productivity of an organisation.
 Outsourced manufacturing – The low cost associated with manufacturing products
abroad, there are indeed downsides to doing so (Chaffey and Ellis-Chadwick, 2019).
Manufacturing abroad requires to set up dedicated manufacturing operating in specific
nation. Nike has selected to do the latter which means that their goods are not always top
quality.
Opportunities:
 Emerging markets – Nike already has a existence and existence in numerous of
international market and nations. There is still plenty of possibility for Nike. They are
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effort to spread out their business work in some other nations such as India, China and
Brazil.
 Innovative products – Nike has produced many merchandise, there is still a lot of
initiate. Nike has spread its achieving with application in association with physical fitness
and wellbeing. They are develop wearable technology which monitor physical activities.
Threats:
 Increased competitive pressure – Nike is overlooking the athletic business, rivalry and
new emergent brand which is still expected danger to an organisation. With the higher
competition ratio (Siedlecki and Depaoli, 2016). Nike has to spend more money and
capital while conducting marketing and advertising the products among customers.
 Marketing budget pressure – There are various competitors which are create issues in
front of respective organisation. Companies such as Under Amor and Adidas are
spending lot of money on merchandising and advertisement campaigns which increasing
pressure on Nike.
Creating the plan – Nike is planning for advertising and marketing their products and
services among customers in order to reach with higher goals and targets. They are analysing the
summary and determine the objective of the firm which should be achieved in better manner.
Impact of political and legal factor - While company expand their business operations
so political factor directly impact on their activities which are performed by them in order to
reach with potential goals. Every company has different rules and regulation which required to
be followed by an organisation who are enter in the market place. They need to follow all legal
rules and norms which help them in smoothly run of business operations and its functions.
Marketing communication strategy refers to strategy that avail by a company or an
individual to accomplish huge market share by communicate and deliver right kind of knowledge
and information. In that strategy includes messages that have to communicate, their source of
transmission and target segment from whom to deliver (Taiminen and Karjaluoto, 2015).
Marketing communication strategy is almost similar to public relations that are very much
essential to reach at large no. of consumers by using online and offline channels. In case of Nike
which is an American multinational corporation which manufactures footwear's, apparel and
accessories. They using various kinds of promotional tools to reach at large no. of consumer
base.
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Advertisement and promotions:
Nike to reach at large no. of consumer base use vast advertising by using website, its
latest products and services should be reach at their target consumers. Its official website and it
has seven billion visitors every month and its website designed according to taste and preference.
It cover pages and websites authentic, connected with people and diversified in sports wear. To
connect at global level by sending emails and newsletters that give important information about
latest news and releasing of their products. They use advertisement and promotions by avail
celebrities before their consumers in their products. Consumers see celebrities by using or
purchasing products of Nike (Porcu, Del Barrio-Garcia and Kitchen, 2017). When they use
celebrity figures in advertising campaign, then sales of their products rises and they can be
effectively promotes their products. They to reach at large no. of consumers Nike intensely
strengthened its market and products over social networking sites from several years which helps
in grab attention of large no. of foreign buyers. Its emotional branding technique in promotional
strategy by using story of a hero. Its marketing strategy is old yet effective all time and
provoking customer loyalty in entire system and working.
Nike's personal selling:
Their personal selling efforts are very much important to enlarge business opportunities
and grab attention of large no. of consumers. In case of Nike they use personalized selling of
their products and services that enables in selecting right kind of Nike's product. It majorly focus
on sports section of shoes that helps in move smoothly and give brand royalty. It helps in giving
positive consumer experience and they feel happy while taking buying decision. It is mostly use
by most brand recognizable organisation when brand is popular in domestic market and it also
helps in bring a great image in international market too. So personal selling is an great marketing
tool to enlarge business opportunities and enhancement (Killian and McManus, 2015).
Direct marketing:
Nike in their marketing communication strategy uses direct marketing for promote
products and services in marketplace. To introduce and to reach at large no. of consumer base
organisation use sales people approach to segment a particular market. In case of Nike they
publish and advertise their sports products in universities and colleges. So there main focus on
establish a strong relationship with consumers and motivate to purchase their products and
services. For example in case of Nike to reach at large no. of consumer base they frequently
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exposed to schools, colleges and universities to deploy loyalty level of consumers. Direct
marketing is sales through direct to consumers to motivate and enhance sales by making strong
relationship with consumers.
Sales promotion:
In case of Nike they use sales promotion to enlarge business opportunities by giving
special offers to their target market (Killian and McManus, 2015). They use sales promotion to
communicate with consumers by giving additional benefits such as discounts offers so that
instant sales can be enhanced.
Public relations at Nike:
Nike to communicate with consumer uses public relations in their marketing
communication plan. To reach at large consumer base organisation use social issues that link to
business. For an example organisation experience about social pressure to sweet shops and by
implementing technology of green integration in business. They use corporate social
responsibility and stakeholder management approach which helps in building distinctive image
in marketplace.
Communication process:
Sender – The person intends to transfer and convey he messages with the intention of
passing data and information and ideas to others which is known as sender or communicator. For
Nike manager need to inform their subordinates about the information of new products.
From that it has been understand that organisation use public relations to deliver right
kind of knowledge and information to their stakeholders. It sponsors sports events and other
activities to reach at current with potential consumer base. These all elements of communication
process helps in global market place to reach at large no. of consumers by widening scope of
business for acquire profit (Killian and McManus, 2015). So all these promotional tools are very
much important for organisational growth and enhancement by analysing taste and preferences
of consumers. It has been observed that to remain always competitive in marketplace
organisation have to grab attention of their consumers by bring innovation in their works and
procedures. On other hand advertising is one of best marketing tool for Nike to reach at large no.
of consumers and enlarge business in positive way.
On the basis of above represented study, it can be suggested that marketing play an
crucial function in selling and purchasing various types of products to their desired customers.
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Nike need to adopt effective marketing communication tool which can help in attracting large
number of customised towards their goods and services. They need to adopt various methods and
method which help them in gaining higher financial gain and net income. Marketing
communication tools or promotional mix are refer as the lend of several promotional tools and
methods which can be used by the business to create, maintain and enhancing the demand of
goods and services. Nike are target such customers who are interested in their current supplying
product like Jordan Brand shoes. They are mainly attract users who are consenting to buy their
innovative goods and services in the market place.
CONCLUSION
Marketing is an important tool that helps in connect with people by various ways so that
large market share should be capture. While deal in global marketplace organisation have to use
distinctive marketing tools and techniques that can be possible by observing taste and
preferences of consumers in proper way. To bring product in right manner and deliver to their
segment market organisation taste and preferences acknowledgement is very much obligatory.
To reach at large no. of consumer base organisation have to select best marketing and
communication tool that should be selected according to reach of target market.
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