Marketing Strategies: A Comprehensive Analysis of Nike Inc.

This report provides a comprehensive analysis of Nike's marketing strategies. It begins with an executive summary and introduction, emphasizing the importance of marketing strategies for achieving sustainable competitive advantage. The report then delves into a situational analysis using PESTLE and SWOT frameworks to understand Nike's internal and external environments, including political, economic, social, technological, legal, and environmental factors. The competitive advantage of Nike is examined through the lens of Porter's Five Forces model and the company's unique selling propositions (USPs). Furthermore, the report explores Nike's segmentation, targeting, and positioning strategies, along with recommended objectives and goals. The marketing mix of Nike, including product, price, place, and promotion, is also discussed. The report concludes with a summary of key findings and references.

Marketing strategies

Table of Contents
EXECUITIVE SUMMARY ...........................................................................................................1
INTRODUCTION ..........................................................................................................................1
PART 1 ...........................................................................................................................................1
Situational analysis of Nike .......................................................................................................1
Competitive advantage of Nike...................................................................................................4
Segmentation , Targeting and Position of Nike Inc....................................................................7
Recommended objectives and goals ..........................................................................................9
Marketing mix of Nike Inc..........................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................12

EXECUITIVE SUMMARY
Marketing strategies plan an essential role in every business organisation, it is helpful in
attaining sustainable competitive advantage. In this all short term and long term activities are
included in the area of marketing. Marketing strategy deals with evaluation and analysis of
strategic initial position of a firm. These contribute in attaining organisational goals and
objectives in very effective manner. It is a better combination of all goals and objectives of
marketing into one broad plan. Good marketing strategies are always design form marketing
survey or research. Major purpose of marketing mix is to put an eye on product mix in order to
achieve maximum profit and sustain firm.
INTRODUCTION
The organisations are focused towards attaining their targeted goals and objectives in
order to achieving high scale profit. Marketing strategies are helpful for firm to reach at high
position. One essential plan is made for combining all activities related to marketing for effective
growth of an industry (Jobber and Ellis-Chadwick, 2012). Foundation of marketing plan are
strategies which are related with marketing aspects. Nike leads market with half of market
shares, it is leader of market. Its basic aim is to render quality service and product to their
potential consumers. They promote their product through conducting an effective advertisement
function. Firm always selects celebrities who are mostly liked by large number of population.
Nike mainly chose sports person to promote their footwear products, because it has a nice impact
on consumers mind. The report contents study about marketing mix, swot analysis, PESTEL
analysis of chosen organisation in order to identify actual position at market place. Competitive
advantage of firm will be discussed in systematic manner.
PART 1
Situational analysis of Nike
PESTLE analysis: Nike is most popular brand among sports persons, it is known as Nike,
Inc. it is US based traditional business firm which render functional high quality sports footwear
across the world. PESTLE analysis considered as internal and external factors that influence
marketing decision of an organisation. This analysis consist of political, economical, social,
technological, legal and environmental factors which are described as below:
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Political factors affecting Nike's business: Political are some external forces which are
directly depend on government decisions. A better and stable political environment provide
offers and opportunities for success and growth of business. The environment of every business
is different from nation to nation, from market to market. Nike do not able to enjoy or taking
advantage of equal success in all markets (Moriarty and et.al., 2014). Various markets are still
not so wide to foreign brands , entrance into Asian market become very much tedious without
having a partnership with local brand or partner. In political factor taxes and tariff play an
important role at market place, they influence actual profitability of any brand.
Economical factors important to Nike Inc. : Growth and success of Nike is depends
on its sales performance. This factor affect macro environment of business. Globalization has
kept an eye on worlds market, it is not about an individuals economies but its all about total
performance of the worlds economy. Economic condition of nation decades how brands are
performing in this competitive era. If purchasing power of buyers are falls down then economic
performance will also declining. Consumers are cutting cost of products this is the main reason
for generating less profit for brands (Donovan and Henley 2010).
Social factors influencing Nike's Business environment : These issues are impacted on
attractiveness of Nike's products such as athletic shoe, equipment and apparel. Social and
cultural factors are also important for any business organisation. These factors are helpful in
making it big in international market. Social cultural are different in every different market. For
increasing awareness about fitness among public they are taking active part in health and fitness
clubs, and for them Nike provide shoes for various range which are affordable for them.
According to today's scenario people are being more brand conscious and their taste and
preferences are diversified towards new market trend. Nike put its all efforts to satisfy the needs
and wants of their consumers.
Technological factors in Nike's business : Nike changes their technologies according
to new innovation in market for better production of athletic footwear. Company uses innovative
and advanced it tools and techniques to market its goods and targets preferences or needs of
consumers. Nike uses a best model for making transaction and supply chain more effective. They
widely use online technology which make easy payment for products without having any contact
(McHugh and Krukonis, 2013).
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Legal factors in Nike's business : Legal laws are major forces that affect business all
around the world. These influence business such as Nike Inc. as a multinational company Nike
has always maintain business concerns morals. It is very much easy for Nike to earn high profit I
western market because of more friendly laws. Every brand shop need to follow rules and laws
which are implemented by government. International marketing is possible when company
follows all rules and regulation of government.
Environmental factor that impact on Nike Inc. : These factors impacted on internal as
well as external factors of an organisation. Sustainability is very much important for every
business firm. Ecological factors impacted on performance and reputation of the firm. Nike faces
several environmental issues because of bad practices of distributors and suppliers.
SWOT analysis of Nike Inc.
SWOT analysis of Nike are helpful in determining its strengths, weakness, opportunities
and threats as it is the leading brand in foot-wares. It has positioned itself at third position in
leading world which are manufacturing sport shoes (Purdie, Dudgeo and Walker 2010.).
Strengths.
 It is the leading shoe manufacturing company. It designs shoes for various sports like
basketball, volleyball, football etc. Theses shoes provides relaxation to sports person who
are wearing them while playing games as they give comfort.
 It provides fast services to customers as it already keep the stock stored in advance
according to differential needs and demands of customers.
 It has world wide access of shoes and people can purchase them from any corner of
world. The outlet of cited firm has its retail process online and offline so as to make
convenient for people as they can easily purchase the products sitting at home through
different websites.
 It has strong research and development process which are helpful in providing innovative
ideas for different designing of shoe products which are manufactured by Nike.
 High quality products are available for customers at economical prices.
 The main strength lies in its brand as it is the global brand which is preferred by most of
the populations. The main reason is that its shoes are comfortable which give relaxation
to customers (Clow, 2013).
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Weakness
 The incomes of company are based on shares which are derived from selling of foot-
wares at markets.
 Retail sectors are price conscious. Most of the income is derived for company by selling
its products into retail outlets.
 Nike is an expensive brand so its main revenues are generated by the product shares at
market.
 The products manufactured by cited company are expensive and thus middle class people
are not able to consume its products.
 It does not have wide range of products and thus its income are generated from market
shares.
Opportunities
 Many opportunities are developed for Nike by product development. It provides
fashionable athletics shoes to customers (Lefebvre, 2012).
 Various opportunities opened the door for Nike such as it can diversify its products line
into sunglasses, jewellery etc. It provide high and valuable items to customers as it
operates as a global brand.
 Company can also spread its business at international level as it is a global brand which is
recognised by most of the population. Various marketing events are organised at global
level which are helpful in supporting the brand such as world cup and Olympics.
Threats
 These brands are exposed to international trade activities of footwear. The products are
brought and sold in differential currencies so prices are not stable they are fluctuating
according to changes in prices of different currencies.
 Price is an issue which are faced by global brands. This can also results in loss for
companies as prices are not stable in economy.
Competitive advantage of Nike
USP unique selling propositions:
The USP of Nike are designed for professional athlete around the world for people who are
sports lover.
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For selling unique propositions knowledge can be captured to know about product and services.
Example In Chinese markets people who are sports lover buy Nike shoes as their quality are of
high standards and their prices are economical as compared to different brands. If people are
wearing branded shoes they feel precious as their standards increases by wearing luxury shoes
(McCabe and Meuter, 2011).
Competitive advantage of Nike Can be analysed with the help of Potters five force models which
are discussed below:
Bargaining powers of Buyer:
Customers buy the products from their past experience, values and benefits which are derived
from products. There are many competitors of the same products in the market but customers
will be local and will not perceive towards other brand till he is satisfied with comfort and
quality which are provided by Nike. The cited firm is investing in marketing activities of its
products and they have also attained success levels (Kahle and Eriksen, 2016).
Buyers of Nike foot-wares are increasing constantly as compared to past generations.
Innovations are made in products according to taste and purchasing powers of customers.
Bargaining power of supplier:
Nike has successfully achieved economies of scale by effective selling of products at market
place. There are some difficulties which are faced by companies as Suppliers are wanting to
produce their own goods, labour markets are becoming unrest, delays in shipping and
manufacturing of goods. Various social and political issues which are acting as obstacles are
faced by Nike successfully and thus it has maintained its brand name.
Competitive Rivalry
Nike is leader among foot-wares and thus it has opportunities for cost advantages over its
competitors. Largest economies are helpful in distribution of products and services over its
rivalries. Major competitor of Nike are Adidas but it constantly eroding its market shares from
Nike. Cited organisation has wide range of products and marketing mix are effectively achieved
by companies.
Threats of Substitutes:
Competitive advantages are achieved by companies if its products are valuable to its customers.
If customers are loyal towards the brand they will not switch towards other brand shoes which
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are offered by other companies. They should maintain their quality standards so that customers
retain towards the brand for longer durations (Geisler and Wickramasinghe, 2015).
Current marketing strategy of Nike Inc.
Nike Inc. is most popular brand among athletics. It is famous for it high quality sports
shoes. They uses generic and intensive strategy for growth and success. Generic model consist
of product mix diversity and it provide competitive advantage for organisation. An intensive
strategy is focuses on innovation and growth of firm. It is known as worlds biggest athletics
shoes, equipment and apparel market. Nike widely use generic and intensive strategy for
maintaining their high business condition at market place. These two strategies are discussed as
below:
Nike's generic strategy : This strategy explains through porters model, it is a combination
of strategies which provide competitive advantage. Two major plans are involved in this from
porter's model.
1. Cost leadership strategy
2. Differentiation strategy
Cost leadership strategy is widely used by reputed organisation in order to achieve competitive
advantage. Nike reduce cost of production and selling price of its companies products. Company
minimize cost for maximise profitability (Goworek, 2011). They sell their product at very low
price for earn high profit then its competitors. This strategy is helpful in regaining its
competitiveness against its main competitors such as Adidas, Puma. Cost differentiation strategy
is helpful in increasing performance and growth of Nike Inc. in worlds industry. This strategy is
based on cost leadership for better success and growth. Company apply various new tools and
techniques for reduce cost of production in order to attain high profit. The main objective of
generic strategy is to maximise profit margin by manufacturing new sports shoes.
Nike's Intensive strategies : This includes various aspects of marketing strategy which
are described as below:
Product development : The major strategy of Nike is growth and development of new
product. Intensive strategy consist introduction of new product at market place to sales and grow.
Nike adopt new technologies for better production and set their products apart from competitors.
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At the condition of product development these products are remain same because of same need
and preferences of consumers.
Market penetration : Nike uses market penetration strategy for extra growth and benefit.
Company collect revenues for its existing market for growth. Cost leadership strategy empower
firm to penetrate markets based on products affordability at market place. Nike increase their
market presence through increase in number of retailers.
Market development : It is Nike,s intensive growth strategy, that facilitates firm's growth
and success by targeting new market segment or market. Nike target new market in Africa and
south East to increase its sales and revenues (Gracia-Marco and et. al., 2011).
Diversification : It is least important in marketing strategies. This directly consist of
development of new business for attain high growth and success. This support Nike's generic
competitive strategy.
Segmentation , Targeting and Position of Nike Inc.
Market segmentation: Every organisation need to segment their market in different
categories for making huge amount of profit. Market segmentation is a process of diving market
into sub points for providing different services to different consumers according to their needs
and wants. Various methods are used to segment consumers markets based on attitude, beliefs
and norms (Harrigan and Hulbert, 2011). Nike conduct a marketing survey for knowing needs of
different people. Once research is completed then market can be divided into various segments
which are described as under :
Geographical segment : This segmentation is based on different location of consumers,
in this firm divide their market into religion, state, countries and cities. Nike focuses on
advertising, promotion, sales and service so it is easy for them to meet with individuals need of
particular segmented groups in geographical areas.
Demographic segmentation : In this market segmentation is based on age, gender, size,
income, occupation, education etc. company start up with various kind of goods for different
people.
Psychographic segmentation: This classification is based on class, life style and personal
needs. Consumer want their products as per their own preferences, they run according to new
market trend. Nike produces footwear for athletics for providing comfort and satisfaction.
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Behavioural segmentation : In this market can be categorised on the basis of
knowledge, attitude or response towards a product. Consumers are very much concern about
their choice and they wants products as per their own behaviour. Nike try to identify all needs of
target customers for fulfilling needs and wants.
Marketing Targeting
Company focuses on targeting after segment their market, in this company need to
identify which audience is more interested to buy firms products (Hendrix, 2014). So they
produce goods on the basis of need or preferences of their targeted consumers for making huge
profit. Nike follows some approaches which are as under:
Evaluate market segments: Firstly company must identify size, growth, pattern and
attractiveness, competitors of selected segment. In this Nike need to find out company
objectives. Main purpose of this approach is to decide that selected segment is able or not for
providing long term profit or attractiveness (Plaisance, P.L., 2013).
Selecting target market : Nike mainly target consumers on the basis of demographic and
psychographic segmentation in which they differentiate their costumes as per age and gender.
They target both male and female who are interested in buying sports shoes and equipment. They
produce different feature and quality product for females and males. They mainly targeted to
adults and teenagers because according to today's scenario people are more health and body
conscious, they taking part in health and social clubs. Teenagers like products of Nike because
may be they play sports and need it in their daily life for more comfort. People like sports but
they always interested in comfortable goods which does not create and conflicts. Nike provide
products on the basis of consumers satisfaction, they ensure their buyers about high quality.
Choosing a targeting strategy : Company chose a marketing strategy which is based on product
life cycle, competitors and variability. These strategies are helpful in providing benefit and
growth in today's competitive era.
Positioning
Every firm is concentrated on creating a good image and impression on consumers mind
in order to get positioned at higher place. Through this way company offer better service and
products to their consumers in comparison to its competitors. It is crucial for a brand to get
success and position in this competitive world. Making an image in the minds of customers about
products and services that are offered by Nike (Pomering, Noble and Johnson, 2011).
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Recommended objectives and goals
SMART Goals:
Goals which are designed by Nike should be specific, measurable, achievable, time
bound and relevant which are described below:
Specific: Goals should be clear and specific which implies that they should focus on
efforts which are taken to achieve those goals. What had to accomplish, which goals are
important to achieve, Individuals who are involved in achieving these goals, Resources which
are used in effectively achieving goals of organisations.
Measurable: Performance of employees should be measurable so as to keep record of
their presentation and keep them motivated towards their work performances. Measuring
performances are helpful in focusing towards the goals which are effective for organisations.
They keep the employees motivated towards different activities which are to be performed by
them in desired time frame (Resnick and et. al., 2011).
Achievable: Goals which are designed by organisations should be realistic and attainable
so as to measure success. If goals are achievable they are helpful in identifying those
opportunities which were previously unnoticed by organisations. Achievable goals are beneficial
for cited organisations as it helps them in achieving desired levels of success in organisations.
Relevant: Goals should be relevant and they should align with other goals which are to be
achieved by organisations. Employees of organisation should assist and support managers in
achieving desired goals for organisations. Plans which are made by organisations should be
helpful in achieving goals which are designed for individuals.
Time Bound: Gaols which are designed by organisations should be specific and they
should be achieved in specific times which are designed for them. This objective is helpful in
completing the activities in assigned times which are designed by organisations for completing
assigned goals. They are also helpful in achieving long term goals for organisations. Time bound
specifies the time like 6 months in which activities had to be completed.
Marketing mix of Nike Inc.
This is described with the use of four major aspects of marketing which involves product,
price, place and promotion, these all are explains as under :
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