Analyzing Global Marketing and Communication of Nike Air Max Shoes

This report provides a comprehensive analysis of Nike's global marketing and communication strategies for its Air Max shoes. It explores the concept of global, local, and glocal marketing, emphasizing the importance of adapting strategies to diverse markets. The report delves into Nike's approach to product development, promotion, and pricing, highlighting the significance of emotional branding and value-based pricing. It examines how Nike utilizes digital platforms and social media to reach customers worldwide, focusing on segmentation based on lifestyle and personality. The report also discusses the company's focus on quality, innovation, and strategic alliances to capture international markets. Finally, the report considers the need for a tailored approach to the marketing mix elements of promotion and price at the global, local, and glocal levels, as well as the importance of customer segmentation. This report is valuable for students seeking to understand global marketing strategies in the context of a leading brand.

GLOBAL MARKETING
AND COMMUNICATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1...................................................................................................................................................1
2...................................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The success and operations of a business unit is completely based on the manner in which
it promotes its products and services to the market. There are various aspects of an organization
which are directly proportional to the marketing activities which are carried out by the
management of the company. Marketing can be termed as a broad umbrella which encompasses
the activities of advertising, networking, public relations, sales and promotions. This is the
medium through which the public is introduced to the product and appraised with the knowledge
in regards to the said product or service. The present study shall focus on the manner in which
Nike shall market its Air Max Shoes at the global. Local and glocal level.
1.
Global marketing is a holistic and a broad concept which finds a special importance for
the products which have universal demands. It can be characterized as a lot more than just
marketing the product at an international level. In essence, the process of global marketing
involves planning the development and introduction of a product, producing the ascertained
product, and finally promoting it in the global market. To capture the international market Nike
has been focusing on the quality of the products as well as the maximum level of innovation
which it can introduce in its products. In accordance to the Oxford University Press the
marketing strategy of Nike truly works on a worldwide scale. While marketing the Air Max
Shoes it shall be completely considerate of the distinctions, similarities and the opportunities
which exist in such a broad and diversified market (Jobber and Ellis-Chadwick, 2012). Another
important consideration which the company takes into account while marketing at the global
level is that geographical, social and cultural factors. It is understood by the market that what is
acceptable to one market may not be preferred by the other market, hence, it develops different
strategies for promotion of the same product in different markets. The brand has been promoting
Air Max Shoes throughout the national borders on the basis of emotional branding and
marketing. Instead of adopting a direct marketing policy the company has been specifically
catering to the personal aspirations of the customers, in place of merely selling the product. Nike
has been utilizing the value based strategy for pricing of their products, which has constantly
ensured escalation in its sales and profit levels. It makes use of vertical integration in pricing in
pursuance to which they participate at different levels of operations so as to control the cost and
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positively influence the pricing of each of the products. Hence the pricing strategy is ascertained
on the basis of the regions and the economy of the nation.
Nike being an American company primarily concentrates on locating the product of Air
Max Shoes in accessible stores for its local market (Armstrong and et. al., 2014). In addition it
can also pursue the option of strategic alliance with some local entities which make the product
available to the local market at the larger level. Advertising through the means of newspaper and
other similar means can prove to be an additional benefit which the company can realize.
Sponsoring local events and taking assistance from some famous athletes, serving as the brand
ambassadors, shall prove to be another means of promotion in the market. It has been realized
that the brand has developed a highly loyal customer base, which has made the brand a huge
success in the local as well as the global market. The pricing strategy is completely based to beat
the other competitors in the shoe retailer industry of the USA. Since, the company has been
focusing on the high premium customers, the pricing strategy shall also be formulated on the
basis of premium segments.
Nike in its initiative for glocalizing its brand has taken assistance from the digital
platform. This state that business strongly focuses on local and global level where large number
of opportunities exist. Further, products are developed keeping in view expectations of people
present in the local market along with international one. Targeting both type of market and on
the basis of same undertaking segmentation criteria provides fruitful results for the organization
in terms of high market share along with the profitability level. Presence of appropriate strategies
at both local and global level has allowed Nike to become worldwide famous and its strength to
operate in the market has enhanced through this. The brand shall promote the product of Air
Max Shoes on the social media to reach the maximum people and also instantly realize the
reaction of the potential customers on the glocal level. In the year 1987 the brand introduced a
television advertisement for promotion of a product with a Beatles song in it (The Glocal
Strategy Of Global Brands, 2016). In a similar manner the brand can publish an advertisement
in the form of a video on the social media for promoting the Air Max Shoes at the glocal level. It
is interesting to note that the mentioned advertisement was a revolutionary soundtrack from
Beatles for an y brand, and moreover it was for the first time that the band was seen in any
television ad. Hence, in the similar manner the brand shall develop an interesting advertisement
highlighting the importance and innovation of the Air Max Shoes and specifically reflecting the
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manner in which it shall cater to the specific requirements of the customers all over the universe.
Though in the local market the company has been pricing its product at a very nominal level, it
shall restructure the pricing strategy at the international level. The brand shall develop a different
pricing level for every region it wishes to launch its product of Air Max shoes, on the basis of
economy and preferences in the local market.
2.
Nike as a brand carries out all the operations on wider basis and is indulged into practices
of serving large number of customers in the market. Further, the selected product named airmax
is quite unique and innovative where it allows business to focus on desired needs of the target
market. Moreover, this range is quite unique and possess capability to influence large number of
customers in the market. Airmax as a range has been newly launched in the market by company
so as to serve large number of customers (Khan, 2014). Moreover, the key attributes in this shoe
is unique which other brands are not offering in the market.
Airmax as a product has been introduced for both men and women. Further, in case of
this product target market of business is young people, adults and sports person. All these three
categories are important for company and at global level they need to be targeted in effective
manner for obtaining market opportunities. In this product target consumer of organization does
not differs from one country to another. Business has strongly developed this product as per
basic need of sports person, adults and youngsters. Main target market will be athletes and
organization will be directly benefited by satisfying needs of the sports person. This shoe is
considered to be most effective from point view of sports person and can be purchased for
running purpose easily (Talwar and Ali, 2013). Nike air max shoe has been designed from
advanced technology and is quite innovative. This product delivers quality of cushioning and
possesses capability to attract large number of customers. This target market is most appropriate
for the business as sports person and athletes prefer to purchase this type of product and it
matches with their requirement. Further, their purchasing power is quite high and due to this
reason Nike has set higher prices for this product. Apart from this, target market of business does
not differs from country wise as in every type of market athletes can be targeted and product has
been developed on the basis of their requirement. Generally it has been identified that athletes
prefer to purchase shoes which are convenient for them and this is one of the main reason behind
introduction of this product. This product will surely support organization in gaining competitive
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edge where desired goals and objectives can be accomplished easily (Peattie and Peattie, 2011.).
Apart from this, it will support business in enhancing its market share.
On the other hand, segmentation criteria undertaken is also appropriate where
psychographic segmentation has been undertaken where target market is divided on the basis of
their lifestyle, personality etc (Jobber and Ellis-Chadwick, 2012). Generally athletes prefer to
purchase items on the basis of their personality and due to this the present segmentation criteria
is appropriate for the business. Business has segmented its customers on the basis of their
lifestyle, personality so that their purchase behaviour can be influenced easily (Wood, 2012).
Further, it has been witnessed that lifestyle of target market changes rapidly and due to this
reason business has introduced this product in the market for obtaining large number of benefits.
Other segmentation criteria such as demographic, geographic etc. are not at all acceptable in case
of Nike as business is not offering this type of product which required such type of criteria.
Therefore, with the help of this it can be stated that segmentation criteria undertaken by business
is appropriate.
CONCLUSION
It can be inferred from the above findings that Nike is required to adopt a different
approach while dealing with the marketing mix of Promotion and Price at the global, local and
glocal level. It is important for the company to understand that the company has been operating
at a large scale and is catering to the needs and expectations of various customers which are
required to be segmented. Hence, in order to reach out to maximum people for promotion of Air
Max Shoes, segmentation of the customer base can be considered to be imperative.
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REFERENCES
Books and Journals
Armstrong, G. and et. al., 2014. Principles of marketing. Pearson Australia.
Jobber, D. and Ellis-Chadwick, F., 2012. Principles and practice of marketing (No. 7th).
McGraw-Hill Higher Education.
Khan, M. T., 2014. The concept of marketing mix and its elements (a conceptual review
paper). International Journal of Information, Business and Management. 6(2). p.95.
Peattie, K. and Peattie, S., 2011. The social marketing mix–A critical review. The sage handbook
of social marketing. pp.152-166.
Wood, M., 2012. Marketing social marketing. Journal of Social Marketing. 2(2). pp.94-102.
Online
Talwar, V and Ali, H., Principles of marketing, 2013. [PDF]. Available through:
<http://www.londoninternational.ac.uk/sites/default/files/programme_resources/lse/
lse_pdf/subject_guides/mn3141_ch1-4.pdf>. [Accessed on 4th October 2016].
The Glocal Strategy Of Global Brands, 2016. [PDF]. Avail;able through:
<ftp://ftp.repec.org/opt/ReDIF/RePEc/blg/journl/538dumitrescu%26vinerean.pdf>.
[Accessed on 4th November 2016].
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