MKT6801: Nike's Strategic Marketing Objectives Analysis

This report provides a comprehensive analysis of Nike's strategic marketing planning, examining its corporate and business objectives within the retail industry. It defines corporate and business strategies, offering a historical overview of Nike's development. The report critically evaluates Nike's strategic objectives using models such as the Blue Ocean Strategy and Ansoff Growth Vector Matrix, justifying the objectives and their alignment with the company's goals. It explores how Nike utilizes these models to enhance market share, increase customer service, and improve business efficiency, while also considering the limitations of these approaches. The analysis highlights how Nike aims to achieve its goals through innovative promotional strategies, new product development, and market penetration. The report concludes by summarizing the key findings and the interrelation between the business and corporate objectives and the models used.

Strategic marketing
planning

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Corporate strategy..................................................................................................................1
Business strategy....................................................................................................................1
History of an organization......................................................................................................2
Critical evaluation of the objectives by using different models and theories.........................2
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Strategic marketing planning is an ongoing process that helps company to create
marketing strategies that assists to meet the defined aim of a company by targeting its key
customers. The process is used by business in order to identify the promotional opportunities
that assist entity to meet the defined aim. The present study is based upon the Nike which
operate in retail industry and also offer range of shoes and clothes to the customer at affordable
price. The study will provide a definition of corporate and business strategy. Further, it provides
a history of an organization and by developing SMART objectives, study will critically evaluate
the business strategic objectives.
Corporate strategy
Corporate strategy is defined as a long term vision that is attained by an organization by
seeking to create corporate values. Therefore, it is a hierarchically the highest strategic plan of a
firm which defined overall goods and direction through which company is able to meet the
defined aim through strategic management activities (Wheelen and et.al., 2017). With the help
of such strategy, company is allocate its own resources as well as competitive position in order
to increase the shareholder values. Thus, its main objective is to describe what company will do
in order to meet its mission. Therefore, it is a kind of performance goal in which company may
launch a new product or can increase profitability that helps to enhance the company's product.
Further, with the help of corporate strategy company improve the competitive position and also
add shareholder value. In the context of Nike, it has also developed a corporate strategy in order
to gain the profit performance and manage their activities that assists to gain competitive
advantage as well.
Thus, it can be stated that with the help of corporate strategy, company clearly
communicate with their employees and this in turn assists business to attain the defined aim of a
company as well.
Business strategy
Business objective is understood as a course of action or set of decision which
assists entrepreneur to attain specific business objectives. Also, it is a set of competitive moves
and action which a business uses to attract customers and compete successfully that helps to
strengthen the performance that assist to attain the organizational goals (Lyskova, 2018).
Further, with the help of business strategy, it outlines how a business should be carried out in
1

order to reach the desired ends. Also, it is considered as a backbone of a business as it is road
map that lead company to attain the desired goals. On the other hand, any fault in this road map
may also result in a business to lose the market share and affect the business performance as
well. In addition to this, it is a part of a business plan which sets out goals and objectives which
needs to be attained by the firm. Also, with the help of effective business objectives, company is
able to meet the defined aim and objectives and also perform the activities that assists to meet
the organization performance. In the context of Nike, company also set different business
objectives which helps to meet the defined aim and take a business at further level of success as
well.
History of an organization
Nike is an American multinational corporation who offered range of products online as
well as offline. The headquarter of the firm is in United States and in 1988, company also
acquired and sold various apparel as well as footwears to different market in order to increase
the sales. In 1966, it open its first retail store and due to increasing in sales it developed many
stores yearly. In 2004, the company also acquired Starter and soccer Uniform marker Umbro in
2007. This is because of having strong financial performance that helps to meet the defined aim.
Recently, February 2021 company also acquired Datalogue by focusing upon digital sales and
machine learning technology. The official website of the firm also reflect that the share market
of a company is increasing year by year due to offering high quality of products at global level.
Along with this, company's employees are also increases that reflect its financial performance is
increased every year (Grover and et.al., 2018). The major source of business of Nike is its sports
product that are preferred by the youngsters as well as athletes.
Hence, by offering such a high quality product at global level through online and offline,
occupy a high market share at local an international market. Moreover, there are many
controversies faced by the company but it has an effective team member who support company
to deal with any complex issues.
Critical evaluation of the objectives by using different models and theories
Corporate objective:
 To implement advance technologies like robotics in order to improve the business
efficiency up to 15% within next 3 years.
2

Justification: With the above defined corporate objectives, Nike is able to improve its business
performance because using advance technology at workplace will helps company to generate
income and this in turn assists company to meet the defined aim as well. It also takes 3 years
because it is not possible for the company to implement robotics within shorter time.
Business strategy objectives:
 To increase the profit by 25% within next 6 months.
 To enhance the customer service by 30% within next 1 years.
Justification:
To enhance the market share, it is necessary for the firm to develop effective strategies
that assist to enhance the customer service and this in turn leads to increase the profit margin as
well. Thus, through this objective company is able to sustain the brand image and also attract
range of customers towards it.
Blue ocean model
In order to increase the market share and attain the set business objectives, Nike uses
Blue ocean model in which it offers products st low cost with unique features that helps to meet
the defined aim. The model has four actions framework which are as mentioned below: Raise: This reflects the factors on which company has to considered in order to meet the
business objectives. This includes pricing such that company has to ensure that it uses
discounted pricing style that assist to meet the defined aim (Bora, Borah and
Chungyalpa, 2017). Also, focused upon the service and quality standards which attain
the defined aim. Eliminate: It reflects the areas which need to eliminate in order to reduce cost. In the
context of Nike, it has to ensure about the suppliers who might affect the business
performance and tie up with new one that helps to enhance the profit margin. Reduce: In this, company identify the areas which are not entirely necessary but still
plays an important role within a firm. For instance, in Nike cost of manufacturing clothes
and footwear could be reduced so that it cannot be completely eliminating.
 Create: It reflects how innovative company is to attract customers (Wheelen and et.al.,
2017). Similarly, by using effective and creative promotional styles, company is able to
enhance the customer service as defined within a business objectives.
3

By using blue ocean model, company innovate new ideas that support the business to
develop growth opportunities (Brown, 2019). It also assists to identify the opportunities for the
firm whereas on the other side, it has been critically examined that there is no surety of futuristic
ideas and his might affect the business performance as well.
Ansoff growth vector matrix
To attain the corporate strategy, it Ansoff growth vector matrix is used which helps to
determine the strategy that support a business to enter either with new service or product. The
four quadrant are as mentioned below:
Market penetration: This is all about increasing sales of existing product within current
market. This is possible by offering discounted products to their customers so that it helps to
meet the defined aim. As per the corporate objective, this method is not suitable for Nike.
Market development: It is all about focusing on entering a new market using current
products. Therefore, it is possible when company start offering products in other country but as
per the chosen objective, this quadrant is not successful (Orga, 2017).
Product development: With the help of such quadrant, company focus upon new product
or service in order to increase sales within existing market. Similarly, as per the chosen
4

corporate objectives, company is able to use new service that helps to enhance the business
efficiency within next years. Therefore, it is suited over all other quadrants.
Diversification: This strategy refers to focusing on entering a new market by introducing
new products. Thus, it is possible when Nike deals in grocery products that might beneficial for
a business in terms of its financial performance. Thus, objectives does not fall under this
category.
Therefore, it is analyzed that with the help of Ansoff growth vector matrix, company is
able to meet the defined aim and identify in which quadrant the company's objectives falls. On
the other side, it is also critically evaluated that it completely ignore competitors and that is why,
company might make wrong decision which affect performance of a business (Ansoff growth
vector matrix, 2020).
CONCLUSION
By summing up above report it has been concluded that corporate and business
objectives different from each other. The present study also summarized that in order to support
the objectives, different models has been applied that assist company to meet the same. Such
that to attain business objectives, Ansoff growth vector matrix has been used while for corporate
objectives, Blue ocean model has been applied.
5

REFERENCES
Books and Journals
Bora, B., Borah, S. and Chungyalpa, W., 2017. Crafting strategic objectives: Examining the role
of business vision and mission statements. Journal of Entrepreneurship & Organization
Management. 6(1). pp.1-6.
Brown, T. J., 2019. Strategic Design or Design Strategy? Effectively Positioning Designers as
Strategists. Design Management Review.30(1). pp.38-45.
Grover, V. and et.al., 2018. Creating strategic business value from big data analytics: A research
framework. Journal of Management Information Systems. 35(2). pp.388-423.
Lyskova, I. E., 2018. The role of the corporative culture in the adaptation of the society to the
new challenges of the global economy. In Global economy in the XXI century: dialectics
of confrontation and solidarity (pp. 420-431).
Muff, K., Kapalka, A. and Dyllick, T., 2017. The Gap Frame-Translating the SDGs into relevant
national grand challenges for strategic business opportunities. The International Journal
of Management Education. 15(2). pp.363-383.
Orga, J. I., 2017. Strategic Management Implications on the Development of Small and Medium
Enterprises in Selected Companies in Enugu State. NG-Journal of Social
Development. 417(5806). pp.1-11.
Wheelen, T. L. and et.al., 2017. Strategic management and business policy (p. 55). Boston, MA:
pearson.
Online
Ansoff growth vector matrix. 2020. [Online]. Available through:
<https://www.letslearnfinance.com/ansoff-matrix-advantages-and-disadvantages.html>.
6