MKT306 Marketing Strategy Report: Nike's Environmental Analysis

This report provides a comprehensive marketing analysis of Nike, a leading global sports footwear and apparel company. The report begins with an executive summary and introduction, followed by an in-depth environmental analysis utilizing SWOT and PESTEL frameworks to assess internal strengths and weaknesses and external opportunities and threats. It evaluates Nike's current marketing strategies, including STP (Segmentation, Targeting, and Positioning) and the marketing mix (Product, Price, Place, Promotion, People, Process, and Physical Evidence). The report also examines Nike's competitive advantages and USP (Unique Selling Proposition). Part 2 of the report delves into product rationale and specification, further elaborating on the marketing mix, STP strategies, and marketing objectives. The analysis covers various aspects of Nike's operations, from environmental factors to marketing mix elements, offering insights into its strategic approach and market positioning, concluding with recommendations for future strategies. The report aims to provide a detailed overview of Nike's marketing efforts and strategic choices.

Marketing Strategy

PART 1
Executive Summary
Marketing is defined as a process which is helpful for a company to promote their
products and services in order to increase its sales and profitability. This comprises various
activities within like advertising, selling, distributing, promoting and many others. In this aspect
various marketing strategies can be formulated by an organisation so as to enhance their
recognition and sustainability in market. In the perspective of being a producer of Nike which is
an American multinational corporation which is engaged in manufacturing, designing, marketing
of footwear, accessories, apparel and services. This report will analyse the importance of
considering environmental analysis along with this usage of different marketing strategies will
discuss. Also, existing trends for Nike to develop its business and attain organisational objectives
and goals will consider. It will also expose some essential recommendations in terms to acquire
best marketing strategies, marketing mix and programs in discriminating in market successfully.
As Nike is one of the well known brand because of their higher quality products and aggressive
promotional campaigns due to which it is necessary for them to modify their business strategies
with the help of entering into new markets to attain their requirements of achieving sustainable
growth.
Hence, after a precise evaluation, as Nike is one the most popular brand in marketplace which
are able to meet the customers satisfaction as well as able to attain higher profitability. Due to
this, with the help of detailed marketing mix they can enter into new markets successfully and
can enhance their financial viability and global image.

Table of Contents
PART 1............................................................................................................................................2
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Environment analysis..................................................................................................................4
Evaluation of current marketing strategy/performance...............................................................6
Marketing-mix: ..........................................................................................................................7
Analysis of the organisations competitive advantage and USP: ................................................8
PART 2............................................................................................................................................9
Product rationale and specification.............................................................................................9
Marketing mix: ...........................................................................................................................9
Segmentation Targeting & Positioning (STP):.........................................................................11
Marketing objectives: ...............................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing strategy is a inclusive plan which is formulated by an organisation to achieve
its marketing objectives. All the strategies related to marketing are formulating by making an
effective market research which helps the business association in utilising their resources in a
best possible manner so as to enhance sales and profitability. This report is based on Nike which
is which is an American multinational company which is mainly concern for manufacturing and
designing footwear, equipments and accessories. This following assignment will cover about the
evaluation of environment, current marketing strategies and assessment of competitive advantage
of the organisation. Along with this, STP strategies and marketing strategies also will consider in
order to develop a new product successfully in the marketplace (Berthon and et. al., 2012).
MAIN BODY
Environment analysis
In order to operate all the organisational activities in a most effective manner it is
essential for an organisation to evaluate the environment of business. Environment analysis
considered as an effective process which give their huge contribution in determining all the
internal and external factors which can lead impact on the performance and profitability of the
organisation. As Nike is well recognised brand due to which it is essential for them to give their
emphasis on evaluating environment. In this aspect, they can utilise two major tools like SWOT
and PESTEL which are describing below:
SWOT analysis:
This is a most appropriate tool of internal environment which will assist management of
Nike in ascertaining the strengths and weaknesses of the business (Morgan, Katsikeas and
Vorhies, 2012). Additionally, it will also help them in determining all threats and opportunities
of the business. Here is given SWOT analysis of Nike:
Strengths Weaknesses
 Nike is world number one shoes maker
company due to their quality and
design.
 They have huge efficiency in R&D
 For their income they are highly
depended on US market which might
create issues for them.
 In UK, retail sector is very price

department which can be seen by its
evolving and innovative products
category.
sensitive due to which they have to face
the lower income issue for the products
and services.
Opportunities Threats
 Company can achieve more success by
expanding its business in China, Brazil
and India as these are gradually
flourishing.
 By adopting innovations in their
organisation they can get higher
success and growth in marketplace.
 Nike has to face tough competition in
market from Adidas, Reebok, Puma
etc.
 Due to the higher investment of Adidas
and Under Armor in marketing and
advertising they have to face more
pressure on themselves.
PESTEL analysis:
This is the most appropriate tool of analysing external environment which helps the
business organisation in operating all the organisational activities in an optimal manner without
any hindrance. By using this tool management of Nike also can ascertain the impact of external
environment on their business performance which enables them to conduct all operations
effectively. PESTEL analysis of Nike is given below:
Political factors: These factors determined that how much government and its policies
may lead influence on an organisation functions. In this, fiscal policy, tax policy, trade policies
are included. Consideration of these factors for management of Nike as it has huge impact on
business. Like of government will regulate free trade policies that it will results better market
penetration overseas. Also, enhancing government support in infrastructure will give more
opportunities to Nike in expanding their business (Kumar and Rajan, 2012).
Economic factors: Herein, those factors are included which are arising due to
economical changes like interest rate, inflation rate, raw material cost etc. as in UK economic
condition are stable which provide chanced to Nike to have stable growth. But in case of rapidly
development of markets also will increase labour costs which impact on their production and
supply chain facilities.

Social factors: This refers to the changing perception and needs of the customers which
needs to be considered by management of Nike. As by influencing social dynamic with the help
of producing higher quality athletic and sports shoes so that they can attract a range of customers
towards their products. Along with this, consideration of safety factor is also a crucial realm to
provide higher satisfaction to customers so as to get higher profitability and sustainability in
market.
Technological factors: These are incurring due to the changes in technologies in a rapid
manner. In this regard, Nike needs to acquire marketing information system in term to innovate
its operations. By considering latest technologies in their production, promotional and delivering
functions they can compete their competitors easily. But obsolescence in technologies also create
issues for Nike as it will increase overall cost of their business (Kumar and et. al., 2013).
Environmental factors: It includes all the environmental and ecological factors like
climate, weather, environment affects etc. It is necessary for management of Nike to expand
ecological laws and to give their focus on climate changes so as to operate all activities without
any crisis. The increment in sustainable strategies create opportunities as well as biggest threats
for the business in case if they will not able to get success and growth.
Legal factors: It includes all the rules and laws of government which has imposed on the
organisation in order to protect the rights of customers and employees. In this aspect,
management of Nike needs to acquire consumer law and also requires to follow health and safety
rules in their organisation in terms to get higher motivation of employees in achieving their
business goals and objectives.
Hence, these both given models are very useful for Nike as it will enables them to operate
all the business activities as per the market environment and also help them in making best
decisions for their business which enables them to attain higher growth and success in
marketplace (Nobre and Silva, 2014).
Evaluation of current marketing strategy/performance
In order to maintain sustainable growth of the business organisation then it is essential for
the manager of the firm to continuously evaluate the effectiveness of their strategies and
performance so that they can determine that their strategies are able to meet with the objectives
and goals of the business or not. It is same applied to Nike, that the management must stay
concern for examining effectiveness of their strategies so that they can select best one and can

operate their activities significantly. In this regard, managers of Nike can use STP strategies and
marketing mix model which are describing beneath:
STP strategies of Nike:
In the present corporate world, STP strategies are considered as a most effective approach
of modern marketing. This model provide a great connection between the market and how an
organisation choose its strategies to compete their competitors. It define about the three strategies
in which organisation like Nike will first conducted segmenting process, then they will select one
or more than one target market and at last they focus on implementation of positioning. The main
motive of this is to help management in selecting most befit marketing mix (Kumar and et. al.,
2012). Here are defining the STP strategies of Nike:
Segmentation Nike is segmenting on the various aspects like demographic,
behavioural aspects, psycho-graphic variables and geographical
variables in which they give preferences to age, gender, population
density, lifestyle and personalities, style based and many others in
order to cater a range of customers in their products.
Targeting Nike is targeting its customers on the basis of size, metastability,
reachability and behavioural aspects. For their products, they give
their more emphasis on targeting sports individuals and professional
athletes by providing them specialised and innovative products.
Positioning They position their products to the end consumers through the swoosh
together with the slogan like “Just Do It” along with this they adopt
strategic promotional activities which helps Nike in gaining the
attention of prominent athletes.
Marketing-mix:
Marketing mix depicts to the set of tactics or action which are helpful for the company to
promote its products and services in marketplace. This tool is consisting seven elements within
which will provide huge benefits to Nike organisation which can be ascertain by following
points:
Product: This refers to the tangible item which is offer in marketplace to satisfy needs
and wants of customers (Shih, Chen and Chen, 2013). Nike is delivering a range of shoes,

equipments and apparel products to customers. The main focus of this organisation on offering
high quality and a range of products for sports enthusiasts which enables them to stay ahead from
their competitors.
Price: Nike has adopted value based pricing strategy in which they are offering their
product at maximum pricing so as to facilitate growth in achieving higher profitability and sales.
Due to this strategy, they are able to get higher benefits in continuously increasing their profit
level over 5 years (Schmidt, Spann and Zeithammer, 2014).
Place: This define about the place form where organisation deliver services like Nike is
offering their products through retailers, Nike exclusive offline stores, Nike online stores and
online sales through E-commerce. The success of this company can be determined through its
200000 stores and huge presence in almost 150 countries.
Promotion: In order to create more awareness toward customers Nike has adopted
various promotional channels like they have adopted exhausting promotion campaign through
Instagram, Facebook and You tube. Also, they engages sport stars as their brand ambassadors
and also they are sponsoring international events, marathons to enhance the brand loyalty.
People: It refers to the salespeople and staff of the organisation who are indulging in
business activities. As Nike is one the well known brand due to which they are giving their main
focus on appointing skilled and talented candidates within organisation. Also, they are concern
for providing persuasive training to the employees so that they can give best services to their
customers.
Process: It define about delivery process of the Nike, they have adopted online delivery
process and with the help of various retailers. Also, they are adopting effective market research
so as to determine the customers needs and demand and to deliver them various products and
services as per their expectations (Chung, Wang and Huang, 2012).
Physical evidence: This considered all the aspects that how a company is presenting
their products in marketplace. Nike is mainly concern for improving their physical evidence
which can be determined by its physical appearance as it has almost 985 stores worldwide which
are operated by its approx 70000 employees.
Analysis of the organisations competitive advantage and USP:
The management of Nike can use VRIO model in terms to assess their resources and their
competitive advantage. This model comprises four factors which are as follow:

Valuable: Herein, managers of Nike can ascertain that their resources are befit with their
organisational goals or they are able to gain competitive advantage or not.
Rare: This factor define that resources must be rare so that each organisation can not
utilise it. It this aspect, Nike needs to give their focus on adopting that resources which are
uncommon so as to create value among the customers (Öztamur and Karakadılar, 2014).
Inimitable: resources can not imitate if they are expensive and its prevented by legal
rights like patent and trademark. Resources are considered as competitive benefit if they are rare,
valuable and imitate.
Organisation: A firm resources is only able to capture value when they are developed by
effective process, culture and structure of company. In case it is necessary for Nike to maintain
proper culture and structure of the business so that they can attain sustainable competitive
advantage.
Unique Selling Point(USP) of Nike: USP of this organisation is to offer best quality
shoes for fitness freak people and for athletes. In this aspect, they give their main focus on
manufacturing athletic shoes and adopting prominent sponsorship with star athletes.
PART 2
Product rationale and specification
In terms to get higher recognition in the marketplace Nike is giving their focus on
introducing a new product in the marketplace i.e. Gel Based Shoes. Coming up with this kind of
product, they can increase their sales as well as their profitability. This shoes has unique feature
within as in this shoes a soft material has inserted into mid sole in order to provide proper
protection and absorption. By developing this new shoes they can provide various benefits to the
customers as in this shoes an extra cushioning interest to protect the toes and foot from
fractioning up against a shoe in a painful way. The interested stuff in the shoes will also help to
correct high and low arches and relief in painful foot conditions like plantar fascists
(Gummesson, Kuusela and Närvänen, 2014).
Marketing mix:
It refers to the process of analysing the company's product, price, place and promotional
strategies that are required while a business introduce its new products in the marketplace. This

will help in increasing the market share, brand value, sales as well as profitability of Nike. The
main 4P's are discussed below:
Product The company Nike already deals in a wide range of products such as shoes,
apparel as well as equipments as it focusing on producing high quality of products.
As it leads in the market position in sportswear industry as well as derives a
maximum profit from the sales of sports shoes. It facilitates a great variety of
products as it focus on introducing some innovative products with unique features.
Now Nike plans to introduce a new product range which is a “Gel based shoes” for
providing a new and innovative product in the market and take competitive
advantages. This will help in developing a high and positive market image of their
brand and its new product (Eggers, Hansen and Davis, 2012).
Price The company is a market leader as it employs a value based pricing strategy in
order to get high growth in the sales and revenue of a business. Nike always
measures the value of their product as their customer is willing and able to pay for
each products. So, the company needs to give their focus on adopting economic
pricing strategy for introducing a new product in the market because this helps in
increasing the customer base initially as well as raise their market shares also. In
this pricing strategy a company requires to attract more customers as they focused
on initially low prices with minimum production cost or they want a small amount
of profit in beginning.
Place Nike already have multiple brand stores as well as exclusive stores across the
world wide. As the company mainly use three distribution channel for selling their
products to their customers such as retailers, online stores, offline shops as well as
e-commerce sale. Now the company must use their web sites for selling new
product as well as company expands their stores by increasing in numbers and use
franchising as well as partnership strategy in order to available new product in
wide market area. The company also conduct seminars and conferences to
distribute samples and catalogues of new product among large number of people.
Promotion Effective promotional strategies are required to promote the “Gel based shoes” and
maintain a strong brand image as it requires the communication with their target

market. Several strategies needs to used by Nike to promote their products and
attract large customers such as advertisement, personal selling, direct marketing
etc. not it requires to adopts social media marketing strategy to approach a large
customers as most of the people are using Facebook, Instagram etc. networking
sites that helps in generating huge awareness as well as the company use their
own web-sites to display attractive offers like discounts, membership facility,
vouchers, coupons and so on.
Segmentation Targeting & Positioning (STP):
For successfully launching their new product in the marketplace manager of Nike has
considered STP strategies in their business which is explain below in detail manner:
Segmentation: For their new product management of Nike segmenting their customers
as per their health conscious level, behaviour and age. As Nike has determined to come up with
the Gel Based Shoes due to this they are giving preferences to demographic segmentation in
which they are targeted their customers as per their age and behaviour. Other, psychological
market is also considered by them in which they are segmenting those people who seeks to get
higher quality products at affordable price. Hence, these both market segmentations ar
considered by Nike in terms to get high sustainability in marketplace within a limited period of
time (Cacciolatti and Lee, 2016).
Targeting: This is a process in which manager of Nike will ascertain their target market
from entire population. As Nike is come up with Gel based shoes due to this they are targeting
athletes as this will reduce the heel pain during running.
Positioning: This is the last stage, in which Nike needs to create an effective image
among the customers which can be done by introducing most appropriate product in market. As
Nike is conducting all the activities at huge level due to this it is essential for them to do their
higher efforts to make their new product i.e. Gel Based Shoes at higher position in marketplace
so as to get higher profitability and sustainability.
Marketing objectives:
In order to come up with their new product in the most significant manner Nike
determine SMART objectives which are discussing below:

Specific: Herein, this organisation will ascertain a specific goal for which they are
launching a new product in marketplace. Nike aims to beat their competitors with the help of
effective strategies and plans for their new product.
Measurable: In order to increase its brand awareness they are planning to increase its
market share form 60% to 80%.
Achievable: With the help of their new product Nike seeks to attain high growth in
market within the 5 months of time duration.
Relevancy: Manager of Nike tries to attain higher competitive advantage by offering
their product at affordable price.
Time bound : Management of Nike has identified that they required to accomplish their
pre-determined goals and objectives of new product development in 6 months (Hasan and Ali,
2015).

CONCLUSION
From the preceding study, it can be concluded that in order to get higher success and
growth in marketplace consideration of effective marketing strategies are essential. In this aspect,
an organisation needs to properly analyse their business internal and external environment so as
to make most appropriate strategies and can take better decisions for their business. Also, for
achieving best outcomes from the organisational activities organisation must adopt STP
strategies so that they can carry out all their activities as per the set targets and goals. Moreover,
for developing a new product successfully in the marketplace business organisation must
undertake marketing-mix so that success of the new product in marketplace can be determined.

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