Analysing Nike's Marketing Communication: An Integrated IMC Plan

This report provides an analysis of Nike's marketing communication strategies, focusing on its Integrated Marketing Communication (IMC) plan. It delves into the IMC planning process, including environmental and situational analysis using tools like SWOT and PEST analyses to assess Nike's internal and external environments. The report examines Nike's marketing mix (product, price, place, promotion) and discusses internal and external factors influencing the company's strategies. It highlights Nike's strengths, weaknesses, opportunities, and threats, as well as its promotional activities and brand image. The analysis aims to provide insights into Nike's marketing approaches for sustained business success, offering a comprehensive overview of the company's marketing communication landscape.

Running head: MARKETING
MARKETING
Name of the Student
Name of the University
Author Note

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Executive Summary
In this report the marketing communication of Nike is discussed. Nike is a brand which
develops the IMC planning to analyse the internal and external environment of the company.
Nike is selling its products online to expand its business globally to many potential
customers. The IMC plan includes the SWOT analysis which determines the strength,
weakness, opportunity and threat for analysing the future of the company. The pest analysis
helps to analyse the external environment and determine possible approaches for expansion
of its products and to introduce new product line. The situational analysis helps to determine
the problems faced by Nike in the competitive world. The purpose of the study is to analyse
the internal and external environment for sustainability of the firm.

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Table of Contents
Introduction................................................................................................................................3
IMC plan....................................................................................................................................3
IMC planning process................................................................................................................4
Environmental Analysis.............................................................................................................5
SWOT Analysis of Nike............................................................................................................7
Marketing mix of Nike...............................................................................................................8
Internal and External Analysis.................................................................................................10
Conclusion................................................................................................................................15
References................................................................................................................................16

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Introduction
Marketing communication are the techniques that are used by the organisation or
individuals to promote others for promotional information about the products, brands and
services. The marketing experts develops the design for various types of persuasive
communication either directly or indirectly to the targeted customers. The marketers uses
effective tools for marketing communication to create brand awareness for the potential
customers (Bibby, 2015). In this report, the design of market communication objectives and
channel for Nike product is designed. As a Marketing Communication Executive, IMC
planning and situational analysis for Nike is developed. The strategic plan for promotional
budget and promotional mix to succeed in effective communication for the product.
IMC plan
Integrated marketing communication plays prior role in interpreting message to the
end-users through several channels to attract customers in an effective manner. The IMC
planning helps the organisation to implement effective communication that can provide with
the potential of the business to get better results by advertising and conducing campaigns
(Blakeman, 2018). This also helps in minimizing cost of marketing of a product.

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IMC planning process
Reviewing of marketing plan
Analysing the situation for all promotional programs
Analysing the communication process
Determining the budget
Developing the integrated marketing communication
program
Adverti
sing
Direct
Marke
ting
Sales
prom
otion
Public
Relati
on
Perso
nal
selling
Adver
tising
Objec
tives
Direct
marke
ting
objec
tives
Sales
promoti
on
objectiv
es
PR
objec
tives
Perso
nal
selling
objec
tives
Message
Strategy
Direct
Marke
ting
Strateg
y
Sales
Promoti
on
Strategy
PR
Strate
gy
Personal
selling
strategy
Media
Strategy
Integrating and implementing the strategy for marketing
communication
Monitor, evaluate, and control the integrated marketing communications
program

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Step 1. Review of Marketing Plan:
It is used to determine the company’s current position in the global market before
developing a promotional programme. The marketing plan is the written document which
shows the company’s overall marketing strategy and programme that helps to determine the
product line. The details of the situational analysis of Nike which shows an internal
marketing audit and an external analysis of the competition and the factors affecting the
business environment. Nike is a leading apparel company and sports footwear (Brohi, et al.,
2016). Athletes are its target market and it sells shoes, sports equipment and clothes. In past
five years, manufacturing of sports and athlete goods has tremendously slowed down
according to the growth rate in sports segment. But Nike’s demand in sports goods has
increased over the period. Customers are more health conscious, this increases the demand
for various athlete equipment’s. Nike has strong brand awareness strategy among consumers
to gain more market share. It has vertically integrated operations such as manufacturing,
marketing, designing and retailing process. This vertical approach is to examine the trend of
consumer and to introduce newest technology (Copley, 2014). It is widely expanding and it
has projected more than 65 billion in 2018. Customers like to purchase athletic footwear,
exercise equipment, athletic apparel, and many more but these are the recreational
transformation. Most Nike’s products are sold online and its distribution channel has highest
growth in market share (Duncan, 2013). Many consumers like to shop in stores rather than
online.
Environmental Analysis
PEST Analysis of Nike
Political:
 Nike’s internal procedure is hampered by employee laws and worker rights.

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 The government policies helps in the growth of Nike.
 Nike handles its legal issues which affects the production.
 Nike takes the help of foreign countries and government to make the products.
Economic:
 Nike provides employability when there is high growth of economy.
 Due to company’s economic slowdown customers can be affected and this also
lessens the confidence of customers for the products.
 Nike can have risks of exchange rates, interest rates and currency.
 Increase in material prices and other labour cost for improving the living standards
can also affect the product sale of Nike.
 Many countries sponsors Nike.
Social:
 Customers are being more loyal for the brand and they are more conscious about the
brand which benefits Nike.
 Customers are more health conscious and participating in sports has increased the
demand of Nike’s sports products.
 Increase in the market share of female customers also benefit Nike.
 Nike can expand its product range by diversely considering demand and preference of
customer.
Technology:
 New technology affects Nike as it is used in the process of making specific products.
 The unique design of Nike can be made through new technologies.
 It facilitates with online channels for shopping in new digital trends.

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SWOT Analysis of Nike
Strength Weakness
Nike is world- wide famous and top in shoe
categories
Nike has joint venture in the era of
innovation with Apple’s IPod
Nike has strong distribution channel with
strong position in the market
Nike has access for designing shoes online
for the customers to innovate shoe design
Nike has diversified the products worldwide
It usually conducts campaigns to endorse its
products
Nike’s main sale is footwear
Nike has faced many obstacles in past and
violations which say they provided minimal
wage to their workers
Work environment is very poor
Nike has bad reputation to some extent
It sales its products in high price as
compared to its competitors
Opportunity Threat
It can expands its product line by adding
sport’s wear, jewellery and sunglasses
Nike brand can also expand its business
internationally
Nike can sponsor many market events such
as FIFA or Olympics
Nike can have the possibility to grow its
women athletes’ segmentation
Nike can also introduce fashion brands
Nike can have a threat of economic
recession and the level of fluctuation in
currency can result in loss
Nike has higher competition who develops
high quality products
Nike has price sensitivity

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Marketing mix of Nike
Nike has established its brand image and has strong marketing mix. Nike believes in
pull strategy. It has seized against big competitors such as adidas and reebok.
Product
Nike offers various products such as apparel, equipment and shoes with wide variety
range. These are top selling products of Nike. Nike focuses on sports products in clothing or
equipment segments. Nike produce running shoes, and offers athletics, tennis, basketball,
hockey, baseball, soccer and lacrosse products which includes sports products (Đurić and
Trajkovic, 2016). Nike Air Jordan XX3, introduced basketball shoe proposing high
performance rating which is designed for aiming the market environment. Nike offers other
sports products such as skateboarding, wrestling, golf, baseball, football, tennis, cheerleading,
and sells shoes for racing and outdoor sports (Henninger, 2017). NIKEiD is a sub brand
which benefits the customer to design the footwear of their own choice.
Pricing
The product price is affected by the types of products. Nike has the pricing strategy
which has competitive objective comparing to other retail shoe. The pricing of products is
determined by analysing target customers. Nike brands have a high premium. Pricing strategy
uses the vertical integration where the participants from different channel levels take role to
control cost and have a great impact on pricing of product (Kerr, and Patti, 2015). Nike has
made the brand so popular that many customers may buy the product paying more money for
quality products. Nike uses cost based or value based pricing other than competitors which
offers low price. The target customers of Nike are niche market and have power to handle the

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product with the financial capability (Kuang-Jung, 2015). This encourages the customer to
buy more products of Nike. The customers of Nike specifies what they can pay for the
services they have been provided with. The services of Nike is compared with other
competitors for quality to check the prices are fairly charged or not.
Place
Nike shoes are sold by many multi brand stores and in exclusive Nike stores on a
global basis. Nike has 20,000 retail stores and sells the products in more than 200 countries in
the international market. The international market, subsidies, license, and independent
distributors sells the products of Nike (Luu, 2016). The main target of Nike is to expand its
business by opening more stores and franchise to reach all potential customers. This approach
is to expand maximum buyers. In the international market, Nike has independent distributors,
subsidiaries and licenses who sells the product of Nike. Nike has outsourcing strategy to
reduce the cost of products with developing countries in Asia, China and Vietnam (Matović,
2015). Nike is focusing on online advertising, so it is spending more money on online
advertisement and less on advertising media. Nike has a unique distribution strategy for its
products:
Nike town shop: Nike products are served internationally to the customers.
NIKEid: It provides online facility for the customers where they can design their own shoes
as per their requirement.
Retail stores: The retail stores serves high demand products for the target customers.
Flagship stores: Nike has a contractual deal with many retail stores that has a flagship label
which has a high volume of Nike’s products to serve the customers.
Promotion

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The marketing communication mix is developed by Nike to attract new customers and
establishes a balance between existing and new customers. This promotional mix is one of
the strength of Nike. Nike has expanded its offers globally to increase brand image and attract
more customers (McFadden, 2017). The print advertisement usually provides strong message
to the customers. Nike has its promotional activities by using a popular athlete to promote its
products. The advertisement of products helps to influence more customers and increases the
expectations for the shoes. The promotion of Nike uses celebrities, billboards, commercials to
target more customers and to aware them about the brand or offers it presents (Nguyen,
2013). Nike needs promotional intellectuals who can help to encourage new product into the
market. Nike can also use the maxi environment to create brand awareness. Nike has
formulated marketing strategy for online ecosystem (Orasmäe, 2017). Nike is planning to cut
for print advertisement and television and increases more promotional activities online or in
social media. The brand image, trademark, Nike’s name makes Nike the most recognized
brands in the global market. Nike has high revenue generation as it has brand power and
sponsorship from other companies.
Step 2. Promotional Programme Situational Analysis:
Internal and External Analysis
Internal Factors External Factors
Promotional assessment of several
activities of firm and its capabilities
Promotional department of the organisation
Checking firm’s capabilities to develop
promotional programmes (Orazi, 2017).
Customer Analysis
Determining target market or analysing
demographic factors
Determining the decision holder, and
influencer to buy a product