Design Project Report on Digital Marketing Strategies of Nike Analysis

This design project report, submitted by Rohit Mandar, provides a detailed analysis of Nike's digital marketing strategies. The report begins with an abstract and introduction to digital marketing, highlighting its evolution and importance. It outlines the objectives and methodology used, including qualitative and quantitative research with a case study approach. The core of the report focuses on Nike's early marketing strategies, including its history, mission, and vision. It examines Nike's marketing strategies from the 1990s, including product innovation, premium pricing, market segmentation, and celebrity endorsements. The report includes a SWOT analysis of Nike in the 1990s, assessing its strengths, weaknesses, opportunities, and threats. It further delves into Nike's digital planning strategies, including the SOSTAC model, to understand how Nike engages customers, what motivates them, and why customers may be lost. The report concludes with references, providing a comprehensive overview of Nike's digital marketing journey and its impact on customer knowledge, sales, and profit.

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Design Project Report
On
Digital Marketing Strategies and Factors Effecting
Customer Knowledge,
Sales and the Profit
By
Rohit Mandar (2016D2PS0988P)
Discipline: M.sc. (Tech) General Studies
HSS F377: Design Project
Submitted to:
Dr. Sangeeta Sharma
Associate Professor,
Department of Humanities & Social Sciences,
BITS PILANI - Pilani campus
BIRLA INSTITUTE OF TECHNOLOGY &
SCIENCE, PILANI
NOVEMBER 2019

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Table Of Contents:-
SR No. Topics Page No.
1 Abstract 4
2 Introduction 5
3 Objectives 5
4 Methodology 5
5 Nike Strategies 1990’s 6-9
SWOT Analysis 1990’s 9-11
6 Nike Digaital Planning Strategies 12-14
Nike SOSTAC 15-22
7 Conclusion 23-24
8 References 25

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ACKNOWLEDGEMENTS
I would like to express my gratitude towards S.K.Chaudhary sir (HOD dept. of Humanities &
Social Sciences) for giving me an opportunity to undergo a project in department of Humanities
& Social Sciences.
I am highly indebted to Dr. Sangeeta Sharma madam for their guidance and constant supervision
as well as for providing necessary information regarding the project & also for their support in
completing the project and for giving me such attention and time.
My thanks and appreciations also go to my institution in developing the project and people who
have willingly helped me out. I have taken efforts in this project. However, it would not have
been possible without the kind support and help of many individuals and institution. I would like
to extend my sincere thanks to all of them.
-Rohit Mandar
2016D2PS0988

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Abstract
The rise in popularity of technology into marketing strategy directs attention to the need for an
in-depth review of digital marketing strategies. It has played a vital role in making one as a
successful brand. This paper informs about the marketing strategies of NIKE earlier and its
transformation into digital and also tools of marketing with various models involving the
beginning from unawareness to the post-purchase of a brand. Also, it highlights the role that
marketing research plays, market plan (ICCDVTM@P) and the SOSTAC model of digital
marketing.
In this report, I performed a detailed description of how to engage customers, what motivates
them to come online and why do we lose customers.

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CHAPTER ONE
INTRODUCTION
Digital marketing is ofter referred as ‘online marketing’, ‘internet marketing’ or ‘web
marketing’. The term digital marketing has developed a fame over time. The way in which
digital marketing has grown after the 2000s has changed the way brands and businesses make
use of technology and digital marketing for their marketing purpose.
Digital marketing extends beyond internet or web marketing including channels that do not
require the use of the Internet. It includes mobile phones (SMS), social media marketing, display
advertising and many other forms of digital media.
Digital marketing is a strategy that provides an individual or organization the ability to reach
clients by establishing innovative practices, combining technology with traditional marketing
strategies.
Digital marketing is a two-way communication process which helps to get feedback faster and
also allow manufacturers to improve the products, there is an interaction level between consumer
and buyer so that their won’t be any furture complications and what so ever the issue can be
solved in the shortest time spam also the prices online are less as compared to traditional
marketing and it is also an simple and direct way to calculate ROI.
Objectives or expected learning outcome
The study is focused on digital marketing strategies and aimed to learn the marketing tools and
market plans for making one as a successful brand. The fundamental aim is to find the
effectiveness of digital marketing over traditional marketing.
The study also touches upon customer satisfaction, their knowledge and how they get affected
and convinced by others.
Methodology
The project aims to compare the advantages of digital marketing over traditional marketing that
affects the growth and image of a brand. The qualitative research is used to understand the
customer need, create improvement for a product, brand, and services, understand the idea,
approach behind marketing e.t.c. quantitative research is used for comparison and adopted case
study methodology. Exploratory work must be done to determine the nature of the variation in
the situation. Through content analysis and data collection, I focused to aim an initial
understanding of the type of content written and generated from data.

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CHAPTER TWO
EARLY STRATEGIES
NIKE COMPANY ANALYSIS
“In the face of today’s challenges—from climate change to inequality to how we unleash the
potential of the next generation—I believe we need our boldest dreams yet”
[Mark parker, chairman, president and CEO of Nike, purpose.nike.com, 2019]
Nike Inc. an American sportswear company, headquartered in Beaverton, Oregon, It was
founded in 1964 as Blue Ribbon Sports by Bill Bowerman. After opened its first retail outlet in
1966 and launched the Nike brand shoe in 1972. In 1978 the company was renamed as Nike, Inc.
And it was made public two years later. In the 21st century, it had stores and distributors in over
170 countries and its logo, a curved check mark called the "swoosh", was recognized throughout
the world.
The 1980s were noticeable by the signing of Michael Jordan as a product spokesperson, revenues
in excess of $1 billion leads to the formation of Nike International Ltd., and " Just Do It"
campaign. Nike additionally enlarged its product to incorporate specialty attire for a variety of
sports. In 1990, Nike surpassed the $2 billion mark in consolidated revenue with
5300 employees worldwide. In addition, we tend to open the NIKE world campus in
Beaverton, Oregon.
In 2018 Nike is ranked as 5th by UNIVERSUM, 2nd for happiest companies to work for by
Career Bliss. In 2017 ranked 12th in the world’s most admired companies by Fortune, 9th for
most admired employers for millennials by Mornig Consult, best team culture in 2017 also in
2016 ranked as most innovative companies by Boston Consulting Group, best place to work by
Glassdoor. Celebrity endorsements by such athletes as Michael Jordan, Mia Hamm, Roger
Federer, and Tiger Woods is the major part of Nike’s success that it was owed. The NikeTown
chain stores 1990, paid honor to these and other company spokespersons while offering
consumers a full range of Nike products.
Current Status
Today nike. Inc. has widespread arrangement of its offerings, which are available throughout the
world. It had an revenue of 39.117 Billion by the end of financial year of 2019 which is 74%
more as comapred to 2005 which is 13.74 Billion. It has also created about $4772 million of
combined free income from operations as of may 2019. (BSE, 2019)

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Nike strives to expand its brand through adopting development technique by obtaining of
Umbro, Nike has expanded its position as the greatest football maker company in the market.
(Nike News, 2019) Also it has obtained a strong name or title in the market of running basketball
and football categores in North America and central and Eastern Europe.
NIKE MARKETING STRATEGIES
The mission at Nike is to be a company that exceeds all others in the athletic industry. They have
maintained their position by providing quality footwear, clothes, and equipment to consumers of
all age groups and lifestyles. They promise to make their products easily available across the
world through the use of retail outlets, mail order, and the company web site. Nike’s
administration thinks that “our success lies in the hands of our teammates, customers,
shareholders and the communities in which we operate”. Nike undertakes to keep this in mind
with the execution of every decision within their company.
The main vision of Nike is to remain the leader in its industry. They will continue to produce the
quality products which they have provided in the past. Most prominently, they will continue to
meet the varying needs of their customers, through product innovation.
Any large brand like Nike follows strategies in order to become the world’s leading designer,
marketer and distributor of athletic footwear, apparel, and accessories. One of its strategies is to
mark a continuous focus on innovation, and emphasis on the research and development
department. Which is giving their best to produce footwear, apparel and athletic equipment that
reduce or eliminate the chances of injury, helps to improve athletic performance and maximize

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comfort and enjoyment. (dermesropia, 2004). According to Nike, innovation is at the heart of its
business growth strategy. The second strategy is Nike’s premium pricing strategy (best cost
provider strategy) which targets the customers who develop a special kind of familiarity with the
product that leads to the development of loyalty.
At the same time, Nike pays a visible concern towards a broad differentiation strategy. Based on
which, it produces its products for athletics in three ways. Firstly, it manufactures for three
different segments of people: men, women, and children. Secondly, it differentiates its products
by offering a variety of accessories and apparel like shoes, gym bags, gloves, and skates. Thirdly,
Nike has the licensees to manufacture and sell Nike brand products aside from athletic like
school supplies, electronic media devices, and timepieces.
Apart from these Nike follows market segmentation strategy, which assists Nike in the
advertisements of its products by entering into the sponsorship agreements with celebrity
athletes, and professional teams. In 1982 Nike came live for the first time on national television
ads during the broadcast of the New York Marathon. Also, Nike hires the famous basketball
players, some of the popular football scorers and golf superstars to make an emphasizing
campaign for its products around the world. (bizjournals.com, 2015)
Sales and Income Trends (1990-99)
Revenues in the fiscal year ended May 31, 1999, declined by 8% over the prior year to $8.777
billion. As illustrated in the graph below, this marked the first time since 1994 that revenues have
declined. Regardless of this year's decline, Nike Inc. achieved 300% revenue growth over a 10-
year period, rising from 1990 sales of $2.235 billion.
Fig:- 1 : Obtained from Nike, Inc. 1999 Annual Repor
Although revenues declined in 1999, net income increased by 13% over the prior year. As the
graph below illustrates, net income has been volatile in the latter half of the 90's. Sharp decreases
in 1998 and 1999 net income were due to restructuring charges. If these charges had not been
incurred, income would have been flat for both years. Efficiency in cost control and inventory

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management has allowed net income to increase while revenues decreased in 1999. Note that the
largest growth rate was 43% in 1997 over the prior year with net income of $795.8 million.
Fig:- 2 Obtained from Nike, Inc. 1999 Annual Report
SWOT ANALYSIS
Personal SWOT analysis is a huge tool to assess yourself to be able to plan your career. If done
properly, an individual SWOT analysis will permit you to develop a substantial action program
that makes it possible for you to accomplish your expert targets.
Opportunities
The most important part of a SWOT analysis is the way how we utilize the information that
shows up out of it. A Nike Inc In The 1990s SWOT analysis makes it possible to figure out
which locations to focus their power and resources. It is a part of the planning for a social change
process and will not provide a tactical strategy if used by itself.
Often when we start a service, getting the correct SWOT analysis template is vital. It's extremely
helpful when a company wishes to expand itself in brand-new ventures. No matter what kind of
organization one is, if it is service or government-run, a chart can be a useful technique to show
employees, in addition to supervisors, where the margins must be.
As stated by the creators of the procedure, SWOT essentially tells you what's favorable and
unfavorable about a company or a specific proposal or category. In extreme circumstances, you
may have to do a segment-by-segment SWOT and after that feed this up into the larger one.
SWOT truly isn't the only evaluation technique you may utilize. He or she can be used for total
organization strategy sessions, but it can likewise be utilized for a particular section like
marketing, production, or sales. Appropriately, he or she can be a powerful aid for senior-level

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management to establish a suitable method for business. If you want to find more information
about the SWOT of Coca Soda, you remain in the ideal place.
Weaknesses
Business typically discovers it has competitive strengths that have not been totally made use of
before. Additionally, it may use distinct products compared to other retailers. After completing
the Nike Inc In The 1990s SWOT analysis, it must be able to configure its overall position in the
marketplace. It mainly operates in the US and Canada. NIKE has small service systems to serve
the international communities. Or a retail business may identify a chance to purchase a more
compact merchant to enhance market share by methods of a SWOT analysis.
The company serves lots of folks worldwide through the world wide web. A service or system
could have a strength in a location like client’s help but might have a weak point or deficiency in
that area too. It uses loan facilities that would bring in greater interest rates in the future. The
many portions of SWOT analysis shouldn't be seen in seclusion. The SWOT analysis is essential
to give direction to the approaching stages of the change practice.
Nike Inc In The 1990s SWOT analysis may be used at an organizational and individual levels. It
may also be utilized in pre-crisis planning and preventive crisis management. It can be utilized
effectively to construct organizational or individual method. A SWOT analysis is an ideal
method to really focus your promotion techniques in manner ins which will drive optimum small
business increase and earnings. It offers an action plan if we put in the time to use it.
Strengths
When we finish our Nike Inc In The 1990s SWOT analysis, we must think about some
suggestions and strategies depending on the results. Before we start the SWOT analysis we want
to do a little bit of study for the understanding of the company and market. SWOT analysis is
typically utilized in part of the tactical planning for the product or assistance. Using the precise
same SWOT Analysis on the labor force is actually rather helpful in keeping business
competitive.
THREATS
A part of manufacturing components is sourced from foreign countries. International operations
are exposed to fluctuations in exchange rates. The purchase and sale of goods are contracted in
different currencies that are not stable over long periods. Such kind of exposure might result in a
loss for manufacturing or selling. The trade market for sportswear and footwear is extremely
competitive. Reebok and Adidas control a lion’s share of the Indian market. The acquiring of
Reebok by Adidas will earn the Adidas group significant competitive advantages across the

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world. The market trend is witnessed by increasing the cost of production inputs and labor costs
supplemented by a highly price-sensitive consumer base. Increasing price rises in the Indian
Economy may spark a cut in consumer spending.
STRENGTH
 Technological skills
 Leading brands
 Channels of distibution
 Relationship with customer
 Quality product
 Scale of operation
 Techniques of management
WEAKNESS
 Lack of technical skills
 Brand weakness
 Poor distibution system
 Poor customer relationship
 Unreliable product
 Small scale
 Insufficient management
OPPORTUNITIES
 Changing customer tastes
 Technological advancements
 Change in government policies
 Lower personal taxes
 Change in population age
 New distibution channels
THREATS
 Changing customer base
 Technological advances
 Change in government policies
 Tax increase
 Change in population age
 Closing of geographic market

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CHAPTER THREE
NEW STRATEGIES
Mission: Nike’s mission is to reach every athlete not only by bringing them inspiration and
innovation but also by providing them a mindset of winners. “To bring inspiration and
innovation to every athlete in the world”, If you have a body, you are an athlete (Nike, 2018).
The “Just Do It” slogan could also be perceived as an inspirational goal, a goal that is attainable
if you wear Nike products. Innovation is also one of the components that the firm works on the
most, aiming to provide athletes with new technological innovations, innovations that are
implemented in Nike’s products. “We dare to design the future of sport”.
Vision Statement: - “NIKE goal is to continue his legacy of modern thinking, weather to
develop products that help athletes of all level of talent to reach their potential or to create
business opportunities that separate NIKE from the competition and provide value to their
shareholders”.
Customer motivations to come online
6c’s Model by Dave Chaffey 2004
Fig-3 6c’s Model by Dave Chaffey 2004