Marketing Report: Nike's UK Market Entry and Strategies Analysis

This marketing report offers an in-depth analysis of Nike's strategies for entering and thriving in the UK market. It begins with an executive summary that highlights the brand's approach to segmentation, targeting, and positioning, and then delves into a detailed SWOT and PESTEL analysis. The report explores Nike's product features, pricing, and distribution strategies, as well as its marketing and communication strategies, including advertising, personalized selling, and social media marketing. The report aims to identify the company’s objectives of targeting new customer groups and enhancing its brand positioning within the global market. The report also examines the brand’s recent marketing strategies, including its shift from a sports shoe focus to athletic apparel, equipment, and clothes. It discusses how Nike has segmented its market based on psychographic, demographic, and geographic factors, and how it has sought to create a competitive advantage through its product diversification and high pricing strategy, with a focus on its market in the UK. The report also highlights the importance of regional-based campaigning and advertising, the use of personalized selling, and the goal of creating a massive impact on its target customer groups. Finally, the report considers the brand’s ethical concerns, particularly those regarding child labor and the impact of these issues on the brand’s reputation. The report concludes with a summary of the findings and recommendations for the company's marketing strategies.

Running Head: MARKETING REPORT
Marketing Report
Name of the Student
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Executive Summary
The report involves the fashion brand Nike as it sought to collaborate in the global marketing
scenario of UK. The report thereby proceeds through the summary of the SWOT analysis and
the PESTEL analysis of the company in the newly evolved global market. The scope of the
report is to consider the positioning, segmentation and the diversification of the brand along
with the proposed strategies as it has been adopted by the company in order to thrive in the
new market. The other objectives of the company is to target the new customer group along
with that enhance the positioning of its brand in the global market. The strategies will be
analyzed through the lens of the business strategies, particularly in the area of communication
in order to achieve the desired.

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Table of Contents
Introduction................................................................................................................................4
Proposed Segmentation, targeting and positioning....................................................................5
Proposed Product features, pricing and distribution..................................................................6
Proposed Marketing, communication Strategy..........................................................................7
Marketing Communication strategy.......................................................................................8
Advertisement........................................................................................................................8
Personalized selling................................................................................................................9
Social media marketing..........................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11
Appendix..................................................................................................................................13
Appendices 1........................................................................................................................13
Appendices 2....................................................................................................................13

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Introduction
The aim of the marketing report is to conduct an exclusive and in depth study of the
luxury sport shoe brand Nike as it seeks to spread its business in the international market,
especially in the UK. After conducting an environmental analysis of Nike, certain factors
have come forth. SWOT analysis has made it explicit in front of us how the brand equity of
the company has established its brand identity in its desired market. This has been done by
collaborating with the professionals like celebrities as well as sports personal. The brand
name has been enhanced by the usage of catchy taglines. Its fragmented nature of the
competition allows it to stand affirm in the market. However, the lack of transparency along
with the involvement of the child labor with poor working condition have contributed
towards bringing down the name of the company. With the diversification in the market and
the emergence of a large number of sports brands in the scenario has contributed to another
weakness of the company. Its high price has restricted its opportunities of expanding its target
customer groups. As a result the market of the company has been restricted to that groups of
customers who are brand conscious. The opportunities of the company lies in adopting CSR
measures as well as catering to the customers who are willing to indulge in fashion brands.
Along with that, the company needs to create a wide array of product on the basis of
diversification. Customization of the fashion shoes can be one of the strategy. Certain threats
the company receives from the international trades includes factors like legal attributes of
threats in the international market, degrading economic conditions in the developing
countries can lead to the degrading nature of its market among its target diverse customer
groups. PESTEL have made it explicit certain threats that the company need to work up on.
The threats concerned are the increasing growth of the market and its developing nature.
Firms by increasing its investment in the R and D has contributed to the threat of the market
as they turned towards creating equipment dependent market in the market of UK. After

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conducting the audit of the NIKE the researcher would like to carry forward the scope of the
research to discuss in details marketing objectives whereby the threats would be mitigated,
and the opportunities of the company can be developed into its strengths. The target of
framing the business marketing report is to target the newer customer groups by creating
newer marketing strategies and create several strategies to collaborate with the market in UK,
in the globalized business scenario (PANDEY 2017).
Proposed Segmentation, targeting and positioning
The objectives of the market report are thereby as follows:
1. Target the new customer group by collaborating with the developing market in UK
2. Set up strategies in order to enhance the positioning of the brand
3. Create an awareness of the brand in the leading market.
Recent marketing strategies of the brand has experienced a shift from its previous area of
concern and as the brand has sought to diversify its product from being a sports shoes to
produce athletic shoes, equipment and clothes. As a result, the positioning of Nike as a brand
is marked by its identity as an expensive premium brand. The brand image has be constructed
over repeatedly by keeping the emblem in the center. The segmentation is primarily done on
the basis of certain distinctive categories. The categories of segmentation needs to be carried
out on the ground of psychographic, demographic and geographic (Lebrun, Souchet and
Bouchet 2013).
The focus of the company and its target customer groups are primarily the city dwellers
belonging from the middle and the upper middle class of the society. As a result the company
has sought to segment its market in the cities of Europe. Such segmentation was carried out
by the company campaigning by organizing ‘Park Football’ and emphasize upon the values
of games in the grass root level. Demographic segmentation included the brand promoting its

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product to the people of all the sexes despite of the bias concerning the indulgence of a
particular sex and their prominence in the sports (Nike 2015). The target customers of Nike is
based in a particular social class, leading a particular standard of life style. Such class-based
identity enhances its brand segmentation as well as positioning, thereby allowing one to
figure out its target customer group as the one placed in the urban side, indulged in sports,
preferably young and belonging from a particular socio-economic class to whom the prized
product of Nike is affordable (Kornum, Gyrd-Jones, Al Zagir and Brandis 2017).
Product The earlier concentration of the company on the shoes
experienced a diversification as the company diverged into
apparel, accessories along with shoes.
Place Focus has been placed in the regional customer base alongside of
setting up retail stores and outlets
Promotion Direct marketing, advertisement, Public relations and
advertisements are the ones used for promotions
Price Price have been assigned on the base of the values as well as the
high price is considered as a strategy to enhance the brand value.
Table 1: 4P
Source: Created by author
Proposed Product features, pricing and distribution
Nike has worked upon its drawback as a producer of athlete shoes and transformed its
opportunities to diverse in its potential market by creating a wide array of product. Such
diversification can be noted in its production of sports accessories and attires. Along with that
the company has tried to dismantle the long drawn gender bias concerning the sports based
product. Such product used to place its male customer in the center of its concern. However,
with current diversification the company has developed the quality of its product in order to
suit the need of female customers. The development has been brought about in the durability

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and the design of the product along with that ascribing a certain amount of concentration on
the protection of the product to fit the need of the female customers. The products have been
modified to provide a soothing experience of the customers while transitioning by providing
a considerable amount of cushioning (PANDEY 2017)..
The company has sought to decrease the price of the product in order to make the
product accessible to wider group of customer. Air Max as it has been launched by Nike
started with a pricing of $170, which later been decreased to an amount of $170. The pricing
strategy of Nike has been kept high in order to compete with other brands in the market. The
high price of Nike is a way of ascertaining its brand value. Such pricing has enabled it to
create a competitive advantages in the market of UK. However, such high price has reduced
its accessibility to the customer.
Nike’s position in the market has been dismantled by its unethical practices in its
production firm involving unhealthy working condition and usage of the child labor for the
production of its goods. Nike had experienced a drop in its revenue generation by a
percentage of 8 and the concern was raised by the decline that the company has faced in the
global market where the order for the product to mitigate the need of the global market has
experienced a decline of 4%. Europe has been a potential ground for the company, which
experienced considerable amount of threats with the introduction of the Adidas in its
competitive scenario.
Proposed Marketing, communication Strategy
According to the manager of Nike concerned with the functioning of the brand in UK
has confirmed that there are urgent need for the company to reframe its activities with the
emphasize being invested in the urban level. The emphasize was placed of the region based
campaigning as per the suggestion from the head quarter of Nike. Such increased

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diversification in the regional level is accompanied by introducing campaigns aligning to the
pan European work, which included introducing training in football. Inputs from the W and K
from London was also being invited (Choi, Ko, Kim and Mattila 2015).
Marketing innovations were brought about to create a holistic understanding the need
of the customers of UK. The innovation in the marketing was followed by advertisement
aligned along the line of marketing. The need to establish the brand in UK had to be followed
a emotional connotation that would enable the company to connect with its potential
customer base as well as at the same time enhance it. The focus was on the grassroots sports
in order to connect to the demographic as well as psychical aspect of the customers (Ahmed
et al, 2016). The company ha sought to indulge in advertising itself by sponsoring big events
like Olymics, thereby creating its visibility. The stakeholders of the company is confident of
increasing the rate of revenue generation by 20% in the upcoming five years. Nike’s market
in the Europe has been dominated by the UK where the market of the brand has surpassed its
earlier largest global market based in Japan. London came to be considered as the company’s
Nike Town (Ahmed 2016).
The company has considered it to be of crucial importance that the achievement of the
brand makes its prominence felt widely. The urge was also felt in the domain of positioning
its sale in the newly developed market. The company has sought to seek the help of the
retailers in order to provide renewed concepts for the stores. The need was to keep the growth
steady in the global market and suit the differential need of the millennial customer groups.
Marketing Communication strategy
Advertisement

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The aim of the company in this respect is to create a massive notable impact on a
considerable huge portion of its target customer groups. As a result its promotional
strategies despite of its expensive nature has been adopted by the company to create a
visibility in the market.
The company has also approached sports personal and celebrities in order to promote
their products. It aims at creating a motivation among the customers to use the
product of the brand. Nike’s, marketing communication is creating a conversation
with their potential customers telling them ways to motivate their choice by imitating
the celebrities of their preference. Region based promotion of the country is focused
on the brand focusing on the regional prominent figures in advertisement in order to
create localized effects (Nike 2015).
Personalized selling
The company also invests its efforts in personalized selling of their product whereby
the staffs of the regional stores provide personalized help to the customers in the
store. The staffs involved in these are provided with special trainings in order to
persuade the buyers in buying their product. Such communication is also aimed at
evolving the experience of the customer related to the brand and sought to develop a
newly evolved relationship between the brand and the customers.
Social media marketing
Being one of the leading fashion brand in the global business scenario, it is not
surprising that the brand enjoys a relatively huge number of customer follows on their
social media platform. The company is heading towards creating a wave in the social
media as a sports brand. Usage of the developed technology aligned with the newly

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developed product of Nike might prove to be a boost of the marketing
communication strategy of Nike. The company has taken additional steps in
incorporating the social media in communicating with the customers by urging the
customers to take part in the event organized in the social media platform (Brison,
Baker III and Byon 2013).
Fig 1: Revenue Generation
Source: (Nike 2015).
Conclusion
The aim of the report was to conduct an overall marketing analysis of the fashion
brand Nike as it sought to collaborate with the market in UK. The market in UK has
experienced a fall followed by a notable increase. However, in order to attain that the
company has invested in the several sectors in order to attain its desire position in the new
market of Europe. The company has taken up diversification strategy in order to enhance the
quality of the product as well as their service in order to cater to the need of the wider range
of the customer. The customer group includes a certain class of the society, though the

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company has taken steps in order to make its product acceptable to a large customer group.
The strategies taken by the company in order to enhance its market is followed by the
company using communication strategies in order to diversify and attain an establishment in
the market.
References
Ahmed, R.R., 2016. Strategic Marketing Plan of Nike. Research gate.
Ahmed, Rizwan & Brohi, Hina & Bhutto, Arslan & Prithiani, Joti & Khubchandani, Rabel &
Kumar, Sumit & Abbas, Zaheer. (2016). Strategic Marketing Plan of Nike.
10.13140/RG.2.1.1558.3122.
Brison, N.T., Baker III, T.A. and Byon, K.K., 2013. Tweets and crumpets: Examining UK
and US regulation of athlete endorsements and social media marketing. J. Legal Aspects
Sport, 23, p.55.
Brohi, H., Prithiani, J., Abbas, Z., Bhutto, A. and Chawla, S., 2016. Strategic Marketing Plan
of Nike.
Choi, H., Ko, E., Kim, E.Y. and Mattila, P., 2015. The role of fashion brand authenticity in
product management: A holistic marketing approach. Journal of Product Innovation
Management, 32(2), pp.233-242.Gürel, E. and Tat, M., 2017. SWOT analysis: A theoretical
review. Journal of International Social Research, 10(51).
JILI'OW, A.L.I., THE GROWTH OF ATHLETIC INDUSTRY, CHALLENGES &
OPPORTUNITIES CASE STUDY: NIKE INC.
Kornum, N., Gyrd-Jones, R., Al Zagir, N. and Brandis, K.A., 2017. Interplay between
intended brand identity and identities in a Nike related brand community: Co-existing
synergies and tensions in a nested system. Journal of Business Research, 70, pp.432-440.