MG412 - Principles of Marketing: Nike Brand Extension Report

This report provides a comprehensive overview of Nike's brand extension into the business suit market. It begins with an introduction to brand extension, emphasizing its importance in a competitive business environment. The report then analyzes Nike, detailing its history, market position, and revenue. The core of the report focuses on the proposed Nike Business Suits, including target market (working professionals aged 30-44), product features, and positioning as a premium brand. Marketing strategies are discussed, including the use of Nike's existing supply chain and digital marketing tactics like content marketing and SEO. A PESTLE analysis is included, examining political, economic, social, technological, legal, and environmental factors. Marketing tactics, such as Ansoff's Grid and product diversification, are explored. The report also conducts a competitor analysis and presents a visual image of the brand extension products. The conclusion highlights the potential success of the brand extension, given Nike's strong brand image and unique positioning. References to relevant academic sources are also provided.

BRAND EXTENSION
An overview

INTRODUCTION
 The competition within the
business world has increased
because of the number of choices
that are available to the customers
(Barnes and White 2017).
 Organizations in order to mitigate
this competition are trying to
create a unique brand image of
their own (Goedertier et al. 2015)
 Brand extension is another option
which is being used by many
organizations

BRAND AND BRAND
EXTENSION
 As opined by Huang, Jia and Wyer
Jr. (2017),brand can be defined as
the perception of a customer or
individual regarding the products or
services offered by an organization.
 This experience distinguishes one
organization from another
 The process of brand extension is
being used by organizations to use
their existing brand name or image
or patents for the launch of new
products or services so as to boost
their sales (Goedertier et al. 2015).

NIKE
 The American multinational organization Nike
was founded by Bill Bowerman and Phil
Knight in 1964 and especially in the designing,
manufacturing, development as well as the
marketing of sports footwear, apparels,
accessories and others (Nike.com 2019.
 The organization is currently operational in
more than 170 different nations of the world
and holds monopoly in the sports footwear
manufacturing industry (Nike.com 2019).
 The gross revenue generated by the
organization in 2017 was $29.6 billion and
was ranked at the 89th largest organization of
the world in terms of the revenue generated by
it (Nike.com 2019).

NIKE BUSINESS SUITS
 These suits will designed for the
working class individuals especially
the business professionals
 The suits will be made for both men
and women
 This is important because of the fact
that there are very few organizations
which make business suits for
women
 The suits will be made from natural
cotton rather than the synthetic
polymers or cotton

TARGET MARKET
 The product Nike Business Suits will be
specifically designed keeping into perspective
the requirement of the working business class
men and women.
 The suits will be available for individuals
belonging to all ages however the main target
market of the product will be the individuals
in the age bracket of 30-44 years of age
because of the fact that the individuals in this
age group are working professionals.
 The product will position itself as one of the
most premier brands and for this the brand
through the use of the premium pricing policy
will ensure the fact that they are delivering the
best quality products to the customers.

TARGET MARKET (CONT…)
 This new product will be using
the supply chain system of the
organization Nike itself
 For the purpose of promotion,
communication and marketing
the communication, digital
marketing strategies like
content marketing, SEO and
others and promotional
strategies followed by Nike
will be used (Nike.com 2019).

PESTLE ANALYSIS

MARKETING TACTICS
 Nike taking the help of Ansoff’s
Grid is going to follow the strategy
of product diversification so as to
gain success in the new business
market.
 Unlike the athletic cloths of the
organisation which are made from
polymers and others, these suits
will be made from cotton and other
similar materials.
 For packing these suits special
large envelops made from
recyclable plastic will be used.

COMPETITOR ANALYSIS

VISUAL IMAGE OF BRAND
EXTENSION PRODUCTS

CONCLUSION
 I personally believe that the brand
extension of the organization Nike will
be a successful because it has all the
necessary attributes that it takes to make
a brand success as becomes evident
from the competitor analysis.
 The positive brand image of Nike can
be used by it to gain success in the
business suits manufacturing industry.
 The unique brand positioning of Nike
and also the fact that it will offer
business suits to both men and women
are likely to make this brand extension a
success.