Comprehensive Marketing Report: Nike's Market Analysis and Strategy

This report provides a comprehensive marketing analysis of Nike, a leading global sports brand. It begins with an introduction to marketing principles and then dives into Nike's market environment using PESTEL analysis, examining social, economic, legal, political, environmental, and technological factors. The report also includes an internal SWOT analysis to assess Nike's strengths, weaknesses, opportunities, and threats. The analysis further explores Nike's competitive positioning, unique selling proposition (USP), and competitive advantages, such as branding and innovation. The report examines Nike's competitive performance, including its financial success, global expansion, and market share. Finally, the report offers a portfolio overview of Nike's brands and product offerings, and discusses how Nike is strategically positioning itself to meet the needs of its target consumers.

MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
PART 2............................................................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing is a process that manages all exchanges including selling and buying
procedures of consumers. Marketing includes various activities which inculcates communication,
delivery, exchange offerings, process of creating of all practices and approaches. Marketing
technique is utilized in order to build, gratify and maintain customer base. This is clear that after
innovation, marketing is an essential component of business and management. This helps in
connecting with public of organization such as clients, sponsors and investors (Marketing, 2017).
Nike is a multinational organization that deals with shoes, footwear, sports equipment,
gadgets and accessories globally. This report will study Nike's entire market audit and will study
market strategy relating with the position of it in industry. This will analyse the market USP of
Firm including evaluation of market growth, sales and trends. Also, this will create a market
portfolio of company through segmenting consumers and analysing the marketing mix.
PART 1
Nike is a US based MNC that deals in trendy sports related products worldwide. It is the
largest and most popular sports brand that provides accessories and apparel to customers. To
understand the marketing of Nike, first of all, it is necessary to understand marketing situation
and environment. For that, external and internal environment evaluation of market is necessary.
External Environment
Through the study of environment, company can easily access their factors which can
broadly affect the growth of company. To consider external factors of Nike, PESTEL analysis is
being performed that studies various factors such as political, environmental, legal, economical,
technological and social.
1. Social Factors
Better relation with society helps organisation in developing and sustaining in the market.
 People are now more aware about of health and conscious of fitness and better lifestyle.
This have merged sales and marketing of sports companies, as it would be more better
and good for company as well (Varnali and Toker, 2010).
 While the organization is being criticised for the dubious manufacturer procedure of it.
Actually, Nike sweatpants conflict was so striking that it has secured a full page of article
in Wikipedia of it.
2. Economic Factors
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Nike offers reputable and value added quality of products, that is why it is assailable than
competitors in economic factors, however, here are some noted variables:
 Market collapse can prove as a nightmare for Nike. People may change their interest and
turn toward more affordable and inexpensive brands or may become comfortable within
decent brand choices and cost effective brands (Rahbar and Abdul Wahid, 2011). Company is able to lead all brand that in market because of Its 'BIG FINANCIAL
POCKET' which can help it in selling more products.
3. Legal Factors
Legal factors of nation is co-related with political factors somewhere and there are some
legal elements that can affect its reputation and sales in market which are:
 Substantial amount of tax is dodging company, as like other brands in market suffering
from same issues. This is not an issue for Nike but it can be in future under the
circumstances. This company at times accomplishes legislature repercussions for Nike's louche selling
activities that consist mendacious discounts (Nath, Nachiappan and Ramanathan, 2010).
4. Political Factors
Political factors determines survivability of an organization. Here are some political
variable of company which are:
 Like an organisation which manufacture services and market as an asset, Nike is subject
to vary in their tax and production legislatures. Several issues in political factors can cause of duties regarding procedure challenging or
prevent exports and imports.
5. Environment Factors
Environment elements of a nation, assist organisation to grow and develop in market and
emerge as a successful enterprise. Here are some factors:
 Mass manufactures in firm is hazardous for nature and climate. Nike is not only polluting
air through production activities in factors but also polluting rivers. Nike have started and announced to be more eco-friendly in order to overcome from this
issues and more environmentalist (Xu and et. al., 2011).
6. Technological Factors
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Technology offer advanced and modified innovation to develop and improve their
functions and production system of company (MacInnis, 2011). Technologies has deployed in
every inch of today world weather it is to connect with consumers or selling products and
services.
 New media is fresh mode through communicate and promotional tool that deploy
message in more quick and effective way. For targeting and manufacturing of good and services, there are enhanced and eco-
friendly function and technologies that Nike is Adopting.
Internal Environment
Internal environment help organization in enhancing the overall performance as well as
effect on quality of products and funds of company and make goodwill in industry. To study
Nike's internal environment, SWOT analysis of firm is being done that evaluate Strengths and
weakness of enterprise as well as upcoming opportunities and threats which can restrain
company's growth which are as follow:
Strengths Weakness
1. Best Shoemaking company that designs
sports shoes for every games such as
volleyball, tennis, football etc.
2. Standardised among customers for products.
3. No physical certainty of ownership which
provide ease to move significant areas in need.
4. Expanded its business in more than 45
countries (Krishna, 2012).
4. Series of merchandising stores like
Niketown.
5. Light weight shoes through unified lunatic
material substantial.
1. More sales are of sports shoes and footwear
that can let vulnerable causes in future.
2. Claimed as poor workplace situation which
demotivate and demoralise the employee and
other staff members.
3. Criticised by anti-globalisation community.
4. Most revenues are depend upon retailer as
company directly exchange with retail stores
and provide less margin that can decrease
growth.
Opportunities Threats
1. Innovative and creative products through
product development activities.
1. Currency value fluctuation cause of
deploying business globally that can lead to
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2. Utilizing recycled waste of production and
manufacture product out of them.
3. Modifying products which vary in trends
and market that provide new concept to
consumer and introduce with better technology
or innovation.
4. Deploying business into larger industry
through expanding business in required
countries (Nath, Nachiappan and Ramanathan,
2010).
5. Creating a powerful brand reputation in
global market and develop it internationally.
losses.
2. Changing trends and competitors that are
providing high quality products and services.
3. Criticised by anti-globalisation members for
polluting environment.
4. Sensitive cost of its sports shoes that enables
customer to purchase more cost effective
products.
Competitive Positioning
Positioning strategy is technique through which organization create an impression of their
products in customers mind-set. Nike has earned more than 40% apparel and athletic shoes
market of America and 34% of Global industry till the recent era. The company have an impact
on youth and athlete and have merged itself as best sports shoe brand internationality. The
enterprise is not only famous in normal public but most popular athletes such as Renaldo Messy
like to wear its products while playing games. IT use various effective strategies and approaches
for create and build an effective position in customer's mind. Market strategy explains what
influence brand want to build in customer minds.
Here are most famous and effective positioning and market strategy of Nike that have
been used to meet target consumer:
 The tag line of company to inspire athlete and sportspeople i.e. “Just Do It”. Through communicating with Apple message which says people that they can think
different with each product of them.
USP (Unique Selling Proposition)
USP of an organisation determines the parameters of products and services on which
organization is eliminated from other brands and demonstrate to consumer about company
strategies and products that make them unique and special from others (Kotler, 2011).
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Nike is most popular and successful company that business with sports products and
apparel all around the world. Its sale commoditized goods such as Sneakers through creating a
mystique around shoes and build with advanced system with long durability and value added
quality of product. The brand is very popular based over its philosophical thoughts which inspire
people to run or involve with sporting activities states that every human which is born, can be an
athlete. USP of Nike is its iconic international recognition and premium costs. Also from long,
its tag-line which say 'Just Do it' makes it unique and motivate human mind clicking them to
think for once.
Figure 1: Nike sales growth
(Source: Will Nike Continue To Grow This Year?, 2017)
Competitive Edge
A company's sustainability in market and growth depends on competitive advantage.
What makes Nike different from others and why this organisation is still leading? These various
benefits which build ‘moats’, limits new rival entry in market and maintain the brand image.
Here are few competitive edges of it:
 Branding is one of most effective strategies that company have used among youth
consumer. It access enterprise to use premium pricing techniques for their brands among
its rivalry.
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 Scale is other benefits, prices redeeming connected with bigger company situation. This
has addressed to $29 in jurisdiction, approx. double its closest rivals like Reebok
(Kaplan and Haenlein, 2011). This is more interesting advantage that is innovation in products and with new and
unique features and technologies that Nike provide which create and enlarge sales of its
products. Those features directly touch with emotions, feelings and arouse customer
illusion.
Competitive Performance
Nike is global largest producer and supplier of sports apparel, accessories and shoes.
Company have employed approx. 74,000 employee in their organization according to 2017 data
and generate global revenues of more than $34billion of U.S. Currency. From overall benefits,
companionship have earned 9. 7 billion form only sports footwear or sports assets. In the
beginning year of 2017, it has reported its growth more than $1.1 billion in 3 months. It is
earning high performance through the help down expenses of operating system and higher
growth in revenues (Ho and Dempsey, 2010). Enterprise has expanded its business in more than
45 countries including China, India, Europe, Africa and other. Nike, through contributing 35 of
new income, earned more than 20% in overall income of company (Nike, Competitive
Advantages, 2011).
Nike is building strategy to sustain in market in next 10 years through increasing
potentiality of growth in 2017. Various investors have invested in its from past 6 months. Nike
recently market at %58.01% which is higher than ¼ aggregate share cost of organisation which
is increase $6.70 per share. Increased growth of it is major reason of growth and raised in
performance in market.
Nike's return in advantage have increased in last 10 years. Company's functional edge
and return on assets outperformance 87% and 94% of international shoes and accessories
organisations. Nike's ROE which has generally increased after 2009. This explains that market
share of it is increasing in market. It is deploying its business in many countries and popular
brand image is enabling more customer toward the brand. People is getting aware for fitness and
conscious for better lifestyle (Ernst, Hoyer and Rübsaamen, 2010). Attitude survey shows that
number of people purchasing sports assets has been increased and youth especially teenager is
more informed and interested in buying brand that enlarged the number and state of buyers of
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organisation's products and accessories. New innovation in products and accessories related to
Nike is main and major cause of increased purchaser of it.
The competitors are strongly occurring in market which can be emerge as a threat. Nike
will need some effective strategies to competitor those rivals. Mainly it focus over customer's
emotional and inspirational factors (Dann, 2010).
PART 2
Nike is a US brand which one of largest sports retailing organization with many sub
brands in all around the world. These sub brands have their own logos and identification with
but mother brand is always Nike. Recent company Portfolio include it has wide variety of
products and services that they offer to their customers which includes Converse, Cole Haan,
Golf, Umbro Ltd., Exeter Breands Groups LLC, Alliances Subsidiaries, Grind, iPod, House of
Hoops, BICEP, Bauer Hockey low level of variegation with paramount enterprise. Here in this
report, the study will be done over subsidiaries of Nike, Converse.
Segments of Customer of Converse
Converse claims that this is first company that have launched shoe with self-expression in
which is most effective technique was Chuck that have created many customers for converse in
market (Cronin and et. al., 2011). Market segmentation technique helps in identifying target
consumer and attaining them in convenient ways. To understand and recognise marketing
strategies and identify customer wants and needs, they have decide their consumers into various
segments:
Demographic Segment
Demographic segment divided customer according various factors of their demographic
elements such as lifestyle of people which is gender, age, region, culture etc. This helps customer
to understand and eliminate their consumer into different groups and directly influence their
consumers by creating a long lasting impact. Also, it helps in determining approaches and
models for promotional and marketing strategy to influence consumers and target people. UK
public is initially eliminated on the basic of their age, and gender and their level of annual
income and generation gap. Like they have divided age groups of people into 4 parts which is:
 Below 13
 13-19
 20-35
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 More than 35
According the income they have separated into 2 kinds
 more than $30,000
 less than $30,000
Generation of this groups is decided in basis of little individuals. This is how
demographic segment is being managed by the company that helps in identifying target
consumers and their interest areas.
Psychographic Segment
However, industry has been departed into categories which is on the basis of personality,
behaviour and lifestyle. Psycho-graphic segment eliminate the target audience according their
personality, attitude, behaviour, attribute and lifestyle. Public of UK have been separated on
lifestyle basis which is divided into 6 strata:
1. Mainstream – Orthodox, conventional and domestic (Christopher, Payne and Ballantyne,
2013).
2. Resigned – rigid, dictatorial, jingoist.
3. Succeeder – Powerful objective orientation, confidence, ethic work etc.
4. Adventurer – Adventures, autonomous such as adults and youngsters.
5. Reformer – Intolerant of worst things, liberal from hurdles and limitation.
6. Behavioural – According to behaviour of public, the loyalty agreement of people is
divided into these:
 Split potentiality
 Controller
 Variable loyal
Marketing objectives of Converse
Converse was created or founded in 1908 which is famous for creating world’s best and
first Sneakers for basketball in 1917. Chuck Taylor, a basket baller started to promote and
advertising this brand and helped in increasing shares of enterprise worldwide. Nike bought this
company in 2003 and this become as a subsidiary of it after that. Here are marketing objectives
of converse which are as below:
 Increase converse retail stores in worldwide and raise the growth of converse in market.
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 Obtain and satisfy customers through providing better and high quality products and
comfortable shoes for sports and casual activities (Chen, Fay and Wang, 2011).
 Promoting and advertising their brand through using better and effective modes of
communication such as new media, TV and other efficient medium of Marketing.
 Deploy their market and expand it in market and internationality especially in most
populated countries and developed countries.
 Increase and better and effective mode of distribution in market and using effective mode
of distribution and channels of technology to satisfy consumer and create a brand image. Maintain cost of products and services that firm provide for every footwear commodity
thy manufacture in order to increase sales and enhance market planning.
Market shares and Growth in Volume
Converse the all-star is famous for its shoes quality and basketball shoe products that they
provided. After the contribution and participation in Olympic Games and National basketball
Association, the company get actual recognition in market. This have assisted the organisation as
becoming most famous shoe brand and deploying its business in many countries which is now
more than 130 nations. The collaboration have increased their potential customer and share
growth in market.
These expansion and participation have increased growth of company which have raised
more than 2.5% in last year. The stakeholders of enterprise is US market more than 18 – 19.5%
in last year which is expected to raise up to 25% in 2017 (This is Nike's secret weapon, 2015).
Marketing Mix of Converse
Marketing mix assist company to grow and develop their business through analysing
different aspects of accompany and its assets. Proper marketing strategy and planning with
promotion and marketing mix can influence consumers to build and enlarge the customer of an
organisation. Here are 4P's of conserves which are as below:
1. Product
Nike's products is main strength of company that enable customer in market. So as
Converse, this is famous for its shoes, specially' Converse with all-star'. Products are created in
order to satisfy consumer needs and expectation. Converse provide long lasting shoes with high
and value added quality in cost effective process. This is also famous for its various types of and
creative designs of shoes that thy offers and other footwear in market. These products are
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popular for its lasting quality and designing of shoe that make it unique from pother brands in
market.
2. Price
Prices of services usually are the amount that consumer pay for the specific services and
products they are purchasing in exchange of capital. This is a significant element of marketing
that has major expectation after quality of products that make customer to purchase that specific
products. Converse offer cost effective price products and a good quality as well. They use
premium pricing techniques mainly aim to adults and youth for their products and company
assets. Cost of these services of Converse is convenient to make it available for common person.
3. Promotion
Promotion is significant to increase sales and to earn ad build a recognition of
organization in market. It covers all communication and marketing activities such as advertising,
personal selling and many other. Converse use various tool so if need for promotions such as TV,
radio, newspaper, hoardings, POV, banners and other participate in global activities such as
Olympic games, FIFA games and promote them (Bertrand and et. al., 2010). Converse also do
branding of company through participating into various activities and global events such as
Olympics, Hollywood movies and other occasion which create a conscious image in mind of
consumer.
4. Place
Place is all position where company distributes and promote their products to sell and
make a business. Converse have started and initiated their business in many places. It has its
stores more than 117 countries including Europe, Asia, America, South Africa and many others.
and availability of stores is in all prime location of a nation. They are placed in major places such
as malls, and market. These places are so connected with usual life of people so public can easily
access their products through finding stores in easy sights.
CONCLUSION
It can be concluded through analysing this report that Nike is the largest and popular
sports brand that facilitates variety of products which company innovate through time and invent
new technologies in order to attract consumer. After the awareness of sports activities in market,
people are more influenced to buy athletic products and services and in order to affect market,
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