MBA Marketing Management Assignment: Nike Company Analysis

This report provides a comprehensive analysis of Nike's marketing and management strategies, focusing on the Epic React running shoe. It examines the company's current status, including internal factors such as SWOT analysis and Bowman's Strategy Clock Model, and external factors using PESTLE analysis. The report evaluates Nike's online and offline marketing activities, emphasizing the importance of online marketing. It also assesses key performance indicators (KPIs) to measure marketing performance in terms of sales, customer metrics, and brand metrics, identifying opportunities for growth. The report concludes with a discussion of Nike's competitive advantages, and strategic recommendations for maintaining its market position and expanding its market share. The report is structured to provide an in-depth understanding of Nike's marketing approach and its impact on the company's overall performance and competitive landscape.

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Running Head: NIKE 0
NIKE
Marketing and Management
Student Name:
Student University:

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Executive Summary
Nike is a universal leading brand which maintains the brand quality and customer loyalty. It
is essential to provide best to the consumers by the company. If any average product need to
be modified, marketing strategy is must. Therefore, analysing the company’s and product’s
current status considering all the internal and external factors by noticing which marketing
company mostly use; online or offline. The evaluation of the factors is done with the help of
major KPIs for better growth and expansion opportunity.
Contents

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1.0 Introduction.....................................................................................................................2
2.0 Company Analysis..........................................................................................................2
2.11 Online Marketing.....................................................................................................3
2.22 Offline Marketing....................................................................................................3
3.0 Current Status..................................................................................................................3
3.1 Internal Factors............................................................................................................4
3.11 SWOT Analysis...................................................................................................4
3.2 External Factors...........................................................................................................5
4.0 Evaluation.......................................................................................................................6
5.0 Key Performance Indicators (KPIs)................................................................................6
5.1 Window of Opportunity..............................................................................................7
6.0 Conclusion.......................................................................................................................7
7.0 Bibliography....................................................................................................................8
1.0 Introduction
Nike is the global foremost kind of athletic fashion and footwear. It plans, advances and sells
superior goods for quality performance. The company committed to encouraging every

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sportsperson to give its best performance. The organizer and co-organizer of the company is
Phil Knight and Bill Bowerman who was keen to look for possible opportunities noticed the
human potential is personified through sports (Elberse, et al., 2018).
Nike product Epic React running shoe which provides supreme comfort while running as it is
lightweight, strong and soft. It is a successful product but needs some changes like
eliminating the cracking sound while running which troubles the purchasers, need for more
grips on the inside surface and soft resole security. It is an average product with pros and
cons. Some customers are dissatisfied because of the fitting and support of the product. The
need for re-launching is for the customer’s worth to try and invest (Avery & Pauwels, 2018).
In this report, the aim is to analyse the company’s current status for planning the marketing
strategy for re-launching Nike’s product looking at its current status, through evaluating
internal and external factors with key performance indicators and its impact on it to know the
strengths and weaknesses of the company.
2.0 Company Analysis
Nike keeps on working on growth, improvement and to stay competitive within the industry.
The human likely expansion is the only mission that makes everything possible for the
company. They create innovative products, make guaranteed products and build a creative
and flexible universal team and a positive working environment for groups. So, Nike brings
motivation and innovation for every sports person globally. The purpose of the company is
that they are dedicated to creating a better and secured future for people, planet, and groups
by the strength of sport. The brand covered half of the U.S. market and its market share. Nike
allied with Wieden Kennedy for making various ways of communication for products
offerings to its target market and to the target customer and makes them attentive about the
products (Ahmed, et al., 2016). Currently, Nike’s products are available globally; the
company implemented the development practice and extended the position as the supreme
football manufacturing firm in the market and established a strong name in kinds of football
and basketball market in North America and Eastern Europe. The company goal is to keep up
on the trend of innovative thinking for developing products with abilities to help potential
sportspersons and creating business opportunities for competitive advantage and value of
stakeholders (Ashraf, 2018).

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The company performs online and offline marketing activities. Online activities depend on
the usage of the internet universally whereas offline activities depend on traditional and
internet-free tools (Zook & Smith, 2016).
2.11 Online Marketing
Online marketing is on hype nowadays as customers spend their more time on computers,
laptops, tablets, and smartphones where the company is able to reach digitally which is quick,
effective and cheap (Cole, 2018). Nike consists of websites, blogging, social media, e-mail
marketing, display ads and PPC (pay-per-click) advertising for online marketing and others
can be the use of QR codes, hashtags as a campaign and CTAs (call-to-actions)
(Lobensommer, 2017).
2.22 Offline Marketing
Offline marketing is a traditional tool on which advertisers and marketers are dependent to
approach consumers. The company consists of television, radio, funding, events and print
guarantee which include brochures, flyers, posters and pamphlets in case of offline marketing
(Veerasamy, 2017). Nike uses more of online marketing activities than offline marketing as it
is already a leading brand (Ashraf, 2018). Every consumer is aware of the brand name, as
soon as Nike creates any activity online or offline related to branding tools, consumers get to
know about it (Daniel, 2012).
3.0 Current Status
Nike is known for supreme quality and nominal prices and makes the company different from
other competitors. To understand in-depth, it is important to know that internal and external
factors of the company.
3.1 Internal Factors
According to Bowman’s Strategy Clock Model which is used by the company at the time of
planning marketing strategy helps to analyse the competitive position comparing with the
other competitor’s offerings (Ahmed, 2014).

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Figure 3-1: Bowman’s Strategy Clock Model (Ahmed, 2014).
Nike lies in the position of fourth level i.e., differentiation strategy, providing high-quality
products with nominal prices (Wilson, 2018). Nike’s product Epic React running shoe is
featuring a unique combination of lightness, comfort, and performance. The product is best
for the best runner but for those who are new in the sport, this product is really an appealing
one. The product goal is to grab the attention of the market; consumers are more fixed on
fashion than performance (Jones, 2018). The Bowman’s strategy clock includes eight
considered spots, low price-low value, low price, moderate price-moderate value (hybrid),
differentiation, focused differentiation, increased price-standard product, high price-low
value and low value-standard price (Nayab, 2019).
This helps the company to grow in the new emerging markets and fulfil the requirements of
the market and target audience.
3.11 SWOT Analysis
Strength: Nike is a global leader with a strong position over its nominal long-term
commitment in sports clothing and footwear, a joint venture in innovation with Apple’s iPod,
strong distribution channels, enable consumers to frame their own footwear products design
online, differentiated products with solid marketing operations (Pandey, 2017).
Weakness: Sales depends on footwear division, the minimum wage rate for workers,
workplace poor conditions, high price compared to competitor Adidas and bad status.

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Opportunity: Great development of products within the company, globally developed,
supporting opportunities in events like Olympics, FIFA and more.
Threats: Economic decline and variations in the exchange can central Nike to damages, high
rivalry creating high-quality products and being violent, price compassion and maintenance
of ecological status.
This analysis of the company helps in communicating the strategy well for brand positioning
and maintains the competitive advantage in the market.
3.2 PESTLE
Political: Nike’s internal events are affected by worker rights and employment laws, the
company with positive government policies supports in growth increment, Nike handles the
legal issues of environment which affect the company and the government and other foreign
countries have a great relationship with Nike for the company’s help regarding making
products.
Economic: Nike is sponsored by diverse companies; the company form new jobs for
progress expansion in the economy. Due to the poor performance of the company,
consumers’ confidence gets reduced towards Nike products. There is risk for the company
due to currency, interest rate and exchange rates of the Nike products. Nike’s product sales
can be affected by increment in material prices and workforce costs in production for
increasing the living standards of the countries (Pandey, 2017).
Social: The advantage of Nike is their consumer’s loyalty to the brand; increase in demand of
sports products with the help of changes in lifestyles, market portion increment of female
consumers is a chance for the company and the large range of Nike’s product with
consumers’ preferences and demand.
Technological: Nike’s products design itself are combined with new technology innovations
and creation of a mobile app, website and different facilities for online shopping of customers
with new digital movements (Chaffey & Smith, 2017).
Legal: The improvement in employment law, consumer law on a huge level and expansion of
health and safety regulations in the company (Rowland, 2017).
Environmental: Nike’s production factories harm the environment because of floating
pollution with polluting rivers and promised to resolve this problem and be the eco-friendly

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company which impacts the expansion of environmental law, climate change and strategies
of the company’s support increment (Bush, 2016).
This analysis of the company helps to know the external activities in the environment and
how it can affect the company. It is important to take steps according to the preferences in the
market.
4.0 Evaluation
The opportunities and threats can be evaluated on the basis of the strengths and weaknesses
of the company (Wiśniewski, 2018).
TOWS Analysis:
External Factors
Internal Factors
Strength Weaknesses
Opportunities SO: Financially
strong brand having
higher investments in
product innovation
and digitization
which helps in
expanding its E-
Commerce market.
An excellent
marketing strategy
facilitates its fast
growth in various
parts of the world.
WO: By expanding
faster they can
reduce its
dependence on the
US market and hence
will open new
revenue channels.
Threats ST: For controlling
competitive pressure,
they can use their
marketing and
innovation
capabilities. It can
also invest in R&D
WT: Shifting into
Asian markets will
help in reducing
operational costs.

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for remaining ahead
of their rivals.
The impact of this analysis aims at the competitive advantage and strong position with the
increment in market share.
5.0 Key Performance Indicators (KPIs)
KPIs for measuring the performance are:
Sales Metrics: For measuring the performance of marketing in terms of sales metrics, it can
be done using vertical sales adoption. For understanding the sales numbers in different
product categories due to the marketing, this can be an excellent KPI (Ivanov, et al., 2019).
Customer Metrics: For measuring the performance of marketing in terms of customer
metrics, it can be using brand awareness. Brand awareness supports the firm to recognize the
perception of their product in the minds of consumers (Romaniuk, et al., 2017).
Brand Metrics: For measuring the performance of the marketing in terms of brand metrics,
it can be done using performance metrics through leading generations (Lopez & Leenders,
2019).
5.1 Window of Opportunity
KPI Strengths of the company Opportunities in the
Market Place
Sales metrics: Vertical sales
adoption
Long-term commitment to
sports clothing
Sponsored by various
countries but act as one by
maintaining a standard of
living
Customer metrics: Brand
awareness
Enables consumers to design
their own shoe online and
differentiated products range
(Wang & Goldfarb, 2017).
Increasing the market share
through customer demand for
the range of female products
looking at the preferences to
achieve an opportunity
Brand metrics: Performance
through leading generations
Support opportunities in
events like Olympics and
Nike itself works with the
technology innovations in its

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FIFA, and a developed
company globally
designs for gaining customer
loyalty
6.0 Conclusion
To conclude, Nike is the largest global leading brand in sports clothing for the athlete’s
comfort while running so thus the Epic React running shoe is manufactured for. Every large-
scale company have a marketing strategy which they plan and work on by analysing the
company, current status of the company by knowing about its internal and external factors,
strengths and opportunities and evaluating them with key performance indicators and its
impact. Nike keeps growing, improving and maintaining competition in the industry.
7.0 Bibliography
Ahmed, G., 2014. Bowman's Strategy Clock Model & its Eight Competitive Directions for
Edge. [Online]
Available at: http://www.studylecturenotes.com/management/bowmans-strategy-clock-
model-its-eight-competitive-directions-for-edge
[Accessed 19 August 2019].

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Ahmed, R. R., Brohi, H., Bhutto, A. H. & Prithiani, J., 2016. Strategic Marketing Plan of
Nike. [Online]
Available at:
https://www.researchgate.net/publication/299889166_Strategic_Marketing_Plan_of_Nike
[Accessed August 2019].
Ashraf, 2018. Nike’s Marketing Strategies. [Online]
Available at: https://medium.com/@arshy__/nikes-marketing-strategies-386f35d59622
[Accessed 19 August 2019].
Avery, J. & Pauwels, K., 2018. Branding and Politics: Nike and Colin Kaepernick. [Online]
Available at: https://www.hbs.edu/faculty/Pages/item.aspx?num=55349
[Accessed 20 August 2019].
Bush, T., 2016. A PESTLE Analysis of Nike. [Online]
Available at: https://pestleanalysis.com/pestle-analysis-of-nike/
[Accessed 19 August 2019].
Chaffey, D. & Smith, P., 2017. Digital Marketing Excellence: Planning, Optimizing and
Integrating Online Marketing. 5 ed. UK: Taylor & Francis.
Cole, S., 2018. How Nike uses Facebook and Instagram. [Online]
Available at: https://econsultancy.com/how-nike-uses-facebook-instagram/
[Accessed 19 August 2019].
Daniel, 2012. Combine Online and Offline Marketing Strategies for Best Success. [Online]
Available at: https://plentifulmarketing.com/combine-online-offline-marketing-strategies-for-
best-success
[Accessed 19 August 2019].
Elberse, A., Aiken, B. & Johnson, H., 2018. Nike: Changing the Sneakers Game. [Online]
Available at: https://www.hbs.edu/faculty/Pages/item.aspx?num=55309
[Accessed 20 August 2019].
Ivanov, D., Tsipoulanidis, A. & Schönberger, J., 2019. Global Supply Chain and Operations
Management. Switzerland: Springer.

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Jones, C., 2018. Nike pins hopes on new extra-springy Epic React running shoe. [Online]
Available at: https://www.usatoday.com/story/money/2018/01/23/nike-hopes-runners-
respond-new-epic-react/1048466001/
[Accessed 19 August 2019].
Lobensommer, L., 2017. SUCCESSFUL BRAND COMMUNITY ON SOCIAL MEDIA | A
NIKE CASE. [Online]
Available at: http://www.brandba.se/blog/brand-community-success-on-social-media-nike
[Accessed 19 August 2019].
Lopez, C. & Leenders, M. A., 2019. Building a local identity through sellout crowds: the
impact of brand popularity, brand similarity, and brand diversity of music festivals. Journal
of Strategic Marketing, 27(5), pp. 435-450.
Nayab, N., 2019. A Look at Bowman’s Strategy Clock. [Online]
Available at: https://www.brighthub.com/office/entrepreneurs/articles/122654.aspx
[Accessed 2019].
Pandey, B. C., 2017. Nike Inc- Complete Analysis: SWOT, PESTLE and Marketing strategy.
Germany: BookRix.
Romaniuk, J., Wight, S. & Faulkner, M., 2017. Brand awareness: revisiting an old metric for
a new world. Journal of Product & Brand Management, 26(5), pp. 469-476.
Rowland, C., 2017. Nike Inc. PESTEL/PESTLE Analysis & Recommendations. [Online]
Available at: http://panmore.com/nike-inc-pestel-pestle-analysis-recommendations
[Accessed 19 August 2019].
Veerasamy, V., 2017. Sports Marketing Examples – 14 Of The Best Campaigns From The
Fitness Industry. [Online]
Available at: https://www.referralcandy.com/blog/sports-marketing-examples/
[Accessed 19 August 2019].
Wang, K. & Goldfarb, A., 2017. Can Offline Stores Drive Online Sales?. Journal of
Marketing Research, 54(5), pp. 706-719.
Wilson, M., 2018. Nike’s New React Running Shoe Is Flubber For Your Feet. [Online]
Available at: https://www.fastcompany.com/90157490/nikes-new-react-running-shoe-is-