Evaluating Nike's Marketing Plan: A Comprehensive Report

This report provides a comprehensive analysis of Nike's marketing strategies, focusing on the application of the marketing mix to achieve organizational objectives. It begins with an introduction to Nike and its competitor Puma, comparing their product offerings, pricing strategies, distribution chan...Read More

UNIT 2: MARKETING
ESSENTIALS BTEC
HIGHER NATIONAL
CERTIFICATE IN
BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO-2.................................................................................................................................................3
Explaining the ways in which organisation can achieve its objectives by using marketing mix
.....................................................................................................................................................3
LO-3.................................................................................................................................................7
Evaluating and developing the marketing plan ..........................................................................7
EXECUTIVE SUMMARY ..............................................................................................7
SMART OBJECTIVE ......................................................................................................8
PESTLE ............................................................................................................................8
SWOT................................................................................................................................9
STP..................................................................................................................................10
MARKETING MIX........................................................................................................10
COMPETITIVE ANALYSIS .........................................................................................11
BUDGET ........................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing essential is the termed that is used by the companies for publicity, sales technique and
advertising their products in the targeted markets. The chosen firm of the report is Nike is the
multinational corporation that are engaged in manufacturing and selling the footwear and other
apparel. The study will discuss the comparison of Nike with its competitor on the basis of
marketing mix. Along with this it will also evaluate and develop the marketing plan of Nike new
product launch.
MAIN BODY
LO-2
Explaining the ways in which organisation can achieve its objectives by using marketing mix
NIKE PUMA
PRODUCT It offers wide variety of
products that include shoes,
gear, accessories and apparel
that are for boys, girls, men
and women (Loučanová,
Olšiaková and Dzian, 2018).
Like instance they have shoes
for different shoes that are
gym, basketball, running and
football and even the company
serves lifestyle shoes. They
have different categories for
men that includes socks,
knickers, hoodies, shoes,
accessories and other apparels.
Also, the products of the
company are unique as
compared to its competitors.
The company offers the
products that are for men,
women and kids. They sell and
make the products that
includes equipments, apparel
and shoes. The shoes' variety
and its designs are very
popular as compare to other
brands. They are focused
towards producing different
products and shoes that are of
cricket and gym. The company
it also partnered with the other
brands in which one of them is
fossil. Puma was the first
company to launch the sports
shoes that have screw-in studs.

PRICE The pricing strategy that is
used by Nike is premium that
means that all the products of
the company are sold at higher
price as compared to its
competitors. The products are
also good looking, durable and
used for sports(Nike Marketing
Mix,2021). They have large
number of customers as it have
good reputation and customers
loyalty which is an essential
factor of its price.
The company uses competitive
pricing strategy that is the
prices that are offered by its
customers. It offers the
footwear category that has
large range of the products. It
has to face large number of
competition for its shoes brand
as they also have to invest in
high amount to make their
shoes innovative so that they
can maintain their demand in
the markets. As compared to
its competitors the price of the
Puma shoes are more
affordable by the people as
they are not very high in range.
PLACE The company sells its products
globally by using both offline
and online channels. Along
with this the products of the
company are also available in
the retail outlet and the centres
that are operated globally.
Nike sells their goods in both
US and outside the country
that is in international markets.
They also offer their customers
direct sells that is from their
website (Krings, Palmer and
Inversini, 2021). The
The company is operated in
the worldwide. It has it
headquarters in
Herzogenaurach, Germany
(PUMA Marketing Mix,2021).
The business operations of the
company are divided into three
categories that are Asia-
pacific, EMEA(Europe,
middle, east and Africa) and
Americans. Mainly the sales of
the company are based on the
EMEA. The growth of the
company are from the Asia

distribution channels of the
company are also divided in
the global brands. It has
around 1096 stores across the
world in which 338 are located
in the US.
and pacific that is followed by
Europe.
PROMOTION The slogan and logo of the
company differentiate it from
the other brands. The brand of
Nike is known for its
uniqueness in the products.
The company promotes
themselves by using the
modern and traditional
promotional strategy. The
other method that is used by
the company to promote
themselves is using the digital
marketing channels through
social media, websites and
other applications. Also, the
company also promote
themselves by making the
videos and posting them on
YouTube and Instagram reels.
They promote themselves by
using the digital marketing
channels that includes social
media, own website,
advertisements and e-
commerce websites. The
company have also promoted
themselves in UK, India and
US by making a separate
website for the people living in
the country. It has the good
brand image in the social
media platforms in which their
Facebook page have more than
20 million followers, 1.6
million on twitter and around
10.7 million on
Instagram(Sharma Ahuja and
Alavi, 2018).
PEOPLE The company has around
75000 employees working
with them worldwide. They
serve shoes and things for all
the age group. The company
For the company people are
the essential part which help
them to increase their market
growth and demand for their
products. It has around 12894

focuses on investing the
money to the people for
helping them to grow and
develop them on faster basis
by offering them for training
which also includes the
corporate social responsibility
programs. But mainly the
targeted age group of the
company is 15-45.
employees working them
globally. The employees and
members of the company are
also focused on developing
them in the form of
professional and personal.
They have also adopted
different training and
development programs for
their employees which will
result in increasing their
performance and growth.
Along with the employee of
the company perform to
maximize the customer's
satisfaction sn
PROCESSES All the process under Nike are
outsourced by their external
suppliers. Also, it makes their
members free from the
essential business processes.
Nike is involved in doing
different operations that are
regarding the store, marketing
and distribution. For its growth
and output maximization
company has optimized its
value chain. The leader's of the
company are more focused in
the process as it is the
important part that also helps
The company is global
distribution network which is
also very extensive. The
process that is used by Puma is
external supply chain. It has
around 126 crore factories that
supplies the products of the
company. The production
facilities of the company are
available in more china and
Vietnam and also Asia is the
main outsourcing region of the
Puma(Kreutzer and Vousoghi,
2020). It has the local stores
and they are structed in good

in maintain the growth and
demand of Nike.
manner that is opened in the
location that in various
markets which results in
attracting large number of
customers.
PHYSICAL EVIDENCE The physical evidence of Nike
is that it is operated in
worldwide that is across all the
corners (Avila-Robinson and
Wakabayashi 2018). The
packaging of the company is
also different from the other
and also it is the physical
evidence of its business
operations. The layout and the
interior designs of the
company are attractive that can
result in gaining the attention
of large number of customers.
The company has strong
physical presence from its
large retail stores networks.
Mainly the stores of the
company are designed in that
way which will result in
promoting the customer's
satisfaction at higher level.
Also, they have online
channels by which they five
the facility to their customers
to purchase the products from
online stores. The retail stores
of Puma works for both
marketing and sales channels
and also it is the main touch
point of the company.
Marketing mix is used by Nike to identify the elements that helps the business to make the
decisions on that basis which will result in profit for the company and achieving its objective. It
also helps in knowing the weakness and then developing the strengths which will make them one
step ahead from their competitors.

LO-3
Evaluating and developing the marketing plan
EXECUTIVE SUMMARY
The mission of Nike is to do everything possible that is related to the expanding the human needs
by fulfilling them by making the products creative and innovative. On the other hand the vision
of the company is to bring innovation and inspiration to athlete in the world. Also, company
performs all the activities that are related to the build team on the diverse and creative manner
and bringing positive impact on the work they do to live. The company is launching its new
product that is smart watch it has various functions that are calling, messaging and sports
functions that will make them unique and innovative from other company.
SMART OBJECTIVE
 To increases the sales by 15% till the end of 2021
 To gain the competitive advantage with the and of third quarter
 To measure it productivity by using data analytics
 To increase the customer base by 30% within one year of product launch
PESTLE
POLITICAL
 Different government policies impacts
the company at the time of expanding
its business or launching the new
products.
 Changes in international laws is the
other factor as Ute government of the
different countries can come up with
new regulation, increasing tax rates and
other rules which affects the industry
ECONOMIC
 The economic factors affect the
company in the form of labour issues
and rise in production like the countries
like Asia have low labour cost as
compared to other.
 Other different countries have different
standards, cultural and currency interest
rates that affects the growth and profit
margin of the firm
SOCIAL TECHNOLOGICAL

 The company have to focus on the
needs and want that the customers want
as nowadays they are becoming more
brand conscious.
 The company can also grow their
business by targeting more female
customers
 Nike can adopt new technology to
expand their business. The technology
will make them one step ahead from
their competitors.
 The company can use their advertising
in different method in the for of
traditional and digital channels.
LEGAL
 in this the factors it includes the child
labour and minimum wages that should
be paid to the employees
 legal factors affects the annual revenue
of the company in drastic
manner(Rathnayaka, 2018)
ENVIRONMENTAL
 It is regarding the concern that are
faced by the organization which is
related to the global warming as it is
important for the companies to function
all the activities by reducing the waste
that are harmful for environment.
SWOT
Strength
 the products of Nike are very
innovative and the new launch by the
company have always been successful
 The Biggest strength of the company is
its strong brand name and its presence
across the world.
Opportunity
 The company has the opportunity to
launch the products in the emerging
markets
 As the company is ranked among the
top two in climate friendly company
with this is had the opportunity to
launch its product by using this strategy
Weakness
 the weakness of the company is
spending on its advertising and brand
endorsements(Nike Inc. SWOT Analysis
& Recommendations.2021).
Threats
 the threats of the company is its
competitions as the product that are
made by the companies are very highly
competitive

 It launches the products that are very
high as compared to the other existing
firms
 other threats that is faced by the
company is supply chain management
as they do not own factories for its
footwear manufacturing
STP
SEGMENTATI
ON
The company have its targeted segmentation that is athletes. Mainly the
products launch by Nike are customized on the basis of demographic
segmentation(Pereira and et.al., 2017). Its helps the company to measure
and identify the resources that are available in many forms that includes
sport attitudes and government population count etc. by using this
segmentation company targets its customers between 11-45 age and
specially to the teens which will result in building the long-term loyal
customers. Among all this company also uses gender to attract its audience.
TARGETING It is the another process that is used by the company after the segmentation
which is related to targeting the markets which will help the company to
achieve the goals in efficiently and effective manner. Mainly the company
targets it markets on the basis of behaviour, size and measurability. Further
they also target the sports and athletes by providing them innovative and
specialized products(Alford, 2018).
POSITIONING The position of the company is very strong in the markets by providing the
high quality and innovative products. Also, the company have used the
slogan 'just do it' to promote its activities and have convinced its customers
about companies loyalty towards its products. Further the position of the
company are also based on the image that Nike have maintained with its
sports equipments.

MARKETING MIX
PRICE The company offers and make the product by fulfilling all the needs and
desire of its customers. Further they make the product that are different
from its competitors.
PRODUCT It is the important factors as by seeing the product only consumers will
pay the price. The Nike uses high pricing strategy that is high from its
competitors.
PLACE As company serves across globally they have different areas for its
product distributions. Further the company also offers their customers an
option that they sell their products both online and offline(Al-Saqqa and
Wady, 2017).
PROMOTION The company promote themselves by using different methods that are
social media, sales promotion, advertising and other source.
COMPETITIVE ANALYSIS
BASIS NIKE ADIDAS REEBOK
Price The pricing strategy of
Nike if high as compared
to its competitions because
they make the products by
using the good material
and are based on the
premium segments for its
target customers by
comparing to the Adidas
and Reebok the price of
the products of the
company are high.
The pricing strategy of
the company are on
the basis of their
products but mainly
they use the market
skimming strategy that
is altered to sell the
product on the price
that depends upon the
colour and
look(Shiflet, 2019).
The pricing strategy
that is used by Reebok
is regular they are less
famous as compared to
the Nike and also it
follows different
pricing strategy so that
they can compete with
its competitors.

Place Nike uses the strategy that
is related to the developing
and exploring the products
in both existing and new
markets it also sells it
product online and to
independent distributors
and its subsidiaries.
On the comparison
with the Nike Adidas
have fewer stores
across the world. It
mainly focuses on the
place where the
customer come and by
the product.
The product of the
Reebok are served
across the world. Also,
they hire the
professional for
making their outlets.
Product As comparing with the
other industry Nike have
more products with high
quality. The company was
the first one to launch the
screw drive shoes.
Adidas have less
product as compared
to the Nike. It has the
product like caps,
bags, hand gloves,
sports shoes and
perfumes etc.
The products of
Reebok are very
popular in the world as
they produce different
accessories and sports
products.
Promotion Nike promote themselves
by different digital
channels that includes
social media and it also has
high and good promotional
strategy that help them to
expand their business and
take competitive
advantage(Shen and de la
Garza, 2019).
Nike also uses the
digital channel but as
compare to Nike they
have less strategy that
makes them unique
from other brands.
Reebok don't spend lot
of money as
comparison with the
Nike as they do
campaigns and
sponsor themselves on
the sports events that
are IPL and Davis cup.
BUDGET
PARTICULARS AMOUNT
ADVERTISEMENT 50000

NEWSPAPER
SOCIAL MEDIA 20000
30000
TOTAL 100000
CONCLUSION
By summing up the above report it has been concluded that Nike id the top leading company in
the field of sports. The above study have reflected the marketing mix of the firm that includes
price, place and promotion that are useful for achieving the objectives. With the assistance of the
report the marketing plan of the Nike new product that includes PESTLE, SWOT and STP was
included in the study.
REFERENCES
Books and Journals
Al-Saqqa, A. H. and Wady, R., 2017. The Role of Marketing Intelligence in Achieving
Competitive Advantage Case Study: Internet Service Provider Companies in The Gaza
Strip.
Alford, P., 2018. Tourism and the internet; marketing perspectives. The sage handbook of
tourism management. Applications of theories and concepts to tourism, pp.397-414.
Avila-Robinson, A. and Wakabayashi, N., 2018. Changes in the structures and directions of
destination management and marketing research: A bibliometric mapping study, 2005–
2016. Journal of Destination Marketing & Management. 10. pp.101-111.
Kreutzer, R. T. and Vousoghi, D. S., 2020. Voice-Marketing–Ziele, Inhalte, Lösungskonzepte.
In Voice-Marketing (pp. 13-59). Springer Gabler, Wiesbaden.
Krings, W., Palmer, R. and Inversini, A., 2021. Industrial marketing management digital media
optimization for B2B marketing. Industrial Marketing Management. 93. pp.174-186.
Loučanová, E., Olšiaková, M. and Dzian, M., 2018. Suitability of innovative marketing
communication forms in the furniture industry. Acta Facultatis Xylologiae Zvolen res
Publica Slovaca. 60(1). pp.159-171.
Pereira, J. R., and et.al., 2017. Social Marketing: induction or volunteerism?. REBRAE. 10(2).
pp.329-344.
Rathnayaka, U., 2018. Role of digital marketing in retail fashion industry: A synthesis of the
theory and the practice. Journal of Accounting & Marketing. 7(02).
Sharma, R., Ahuja, V. and Alavi, S., 2018. The future scope of netnography and social network
analysis in the field of marketing. Journal of internet commerce. 17(1). pp.26-45.
Shen, Z. and de la Garza, A., 2019. Developing a Digital Artifact for the Sustainable
Presentation of Marketing Research Results. Sustainability. 11(23). p.6554.
Shiflet, M., 2019. Viral Marketing: Concept Explication and Case Studies in the Video Game
and Esports Industries(Doctoral dissertation, Ohio University).

Online
Nike Inc. SWOT Analysis & Recommendations.2021.[Online]. Available through:
<http://panmore.com/nike-inc-swot-analysis-recommendations>
Nike Marketing Mix.2021.[Online]. Available through: <https://notesmatic.com/nike-marketing-
mix/>
PUMA Marketing Mix.2021.[Online]. Available through:
<https://notesmatic.com/2019/12/puma-marketing-mix/>