Marketing Plan for Nike: Tuvalu Market Entry and Analysis

This report presents a comprehensive marketing plan for Nike's entry into the Tuvalu market. It begins with a brand description and market analysis, including demographics and behavioral factors. The report then delves into competitive analysis, utilizing SWOT and PESTEL frameworks, and analyzes the impact of Porter's Five Forces. An industry and competitor analysis is provided, followed by a value chain analysis of Nike. The marketing mix, including product, price, promotion, and place, is examined. The report concludes with marketing strategy recommendations and financial analysis, offering insights into Nike's potential success in the Tuvalu market. The plan emphasizes a penetration pricing strategy, extensive advertising, and expanded distribution to boost growth and revenue, aiming for a 4% market share in the first year.

Running head: MARKETING PLAN OF NIKE
Marketing Plan
[Document subtitle]

1
MARKETING PLAN OF NIKE
Table Of Contents
Introduction......................................................................................................................................2
Brand Description............................................................................................................................2
Market Analysis and Research........................................................................................................3
Market Description......................................................................................................................3
Evaluation of Target Market........................................................................................................3
Target Market...........................................................................................................................3
Market Entry Recommendations.....................................................................................................4
Market Demographics..............................................................................................................4
Behavior Factors.......................................................................................................................5
Need of the Market...................................................................................................................5
Growth of the market...............................................................................................................5
Competitive Analysis.......................................................................................................................5
SWOT Analysis...........................................................................................................................5
PESTEL Analysis of Environment..............................................................................................7
Effect of Porter’s Five Forces on Nike........................................................................................7
Industry and Competitors Analysis..............................................................................................8
Value Chain Analysis of Nike.........................................................................................................8
Marketing Mix.................................................................................................................................9
Production of Nike.......................................................................................................................9
Price of Nike..............................................................................................................................10
Promotion of Nike......................................................................................................................10
Place of Nike..............................................................................................................................11
Marketing Strategy Recommendation...........................................................................................11
Strategy of Nike.............................................................................................................................11
Financial Analysis.........................................................................................................................12
Conclusion.....................................................................................................................................13
References:....................................................................................................................................14

2
MARKETING PLAN OF NIKE
Introduction
Tuvalu earlier known as Ellice Islands is located in the Pacific Ocean in between Australia and
Hawaii. It is an island nation where nine islands are grouped together in Southern Pacific, and it
was unbounded from the rule of U.K. in 1978. Based on an evaluation of the Shoe Market and
strengths, Nike will introduce the footwear and apparel market in Tuvalu region. Nike has
planned to introduce its brand using Penetration Pricing strategy, advertising at the extensive
level and expanding the distribution levels to increase the growth rate and revenues. This Brand
is planning to combine the cost-effective and unique design to launch at least four percent share
of the market in the initial year. The following sections will present a Market Plan for the Nike to
invade in the region of Tuvalu by doing extensive search and analysis of a market segment of
Tuvalu, competitive analysis, presenting its strategy, financial analysis and marketing mix for the
brand to uncover a smooth experience for itself.
Brand Description
Nike is considered to be the most well-known provider of apparels and shoes which are used for
athletic purposes. It was formed in the year 1968 under the Oregon's state's law. Our main
activity involves worldwide selling and marketing, designing and developing the athletic apparel,
footwear, services, activities, and equipment. It is considered to be the widest footwear seller in
the athletic domain in the world. All the autonomous contractors produce all our products. A
huge position has been obtained by this business in the market places with the help of attractive
design, innovative quality and well-drafted strategies of the market.

3
MARKETING PLAN OF NIKE
Market Analysis and Research
Market Description
The environment of marketing for Nike represents the opportunities which are overpowering the
existing benefits. The company has strong belief over the fact that it can successfully meet all the
challenges in the environment. Robust relationships with retailers, suppliers, and consumers can
help ruin the competitors. Therefore we must reply to shifts and trends in the preference of
consumers by doing adjustment of new product development, categories and style making
influence to fitness and sports by doing marketing at extensive manner. Nike possesses abundant
market information. This market information can help to understand that who gets served with
what needs and how the better communication can take place. Each brand of Nike operates
mainly in single industry geographically- development, designing, footwear of athletics,
marketing, accessories, services, and equipment. Nike also works on direct selling to Customers
which is managed in every segment of geography.
Evaluation of Target Market
Target Market
The main focus of the Nike brand remains attentive for athletes, but still it can deliver much
more than the shoes. Nike provides the best environment and surrounding which suits the
experience an athlete wants. Nike has over 90,000 employees worldwide; there is various
categorization of departments for product and geographic divisions which has created a flexible
structure of leadership and responsibilities which create overlying management. Nike indulges
itself in endorsing the celebrity for marketing the products like athletes in golf, tennis, soccer and
basketball. Also many big events of Sports are now being sponsored by Nike to make huge brand
following and awareness (Piercy, et al., 2015).

4
MARKETING PLAN OF NIKE
Figure 1 Target Market Forecast
Market Entry Recommendations
Market Demographics
Male- The basic product line for Males are Tennis, Outdoor, Baseball, Track & Field, Golf,
Football, Action Sports, Soccer, Nike Sportswear, Basketball, Training, Running (Wilkinson, et
al., 2013).
Female- The famous products for Females are Tennis, Outdoor, Baseball, Track & Field, Golf,
Football, Action Sports, Soccer, Nike Sportswear, Basketball, Training, Running
Youth- Nike srves the categories of Kids, Toddler/Infant, Pre-School.
Age- Nike caters to the primary need of people between the ages of 13-46 years
Education- 70% are graduated
Income- Medium income is around Rs. 50,000

5
MARKETING PLAN OF NIKE
Behavior Factors
Almost all the equipment regarding sports involves huge money expense. Users are used to
indulging in a lifestyle that is very active. The activities which involve healthy recreation and
fitness lifestyle are adopted by the consumers (Tu, et al., 2013).
Need of the Market
Being a customer centric company, it emphasizes more on choice and needs of the customer. The
following add-on can be provided by the company for it customer- Products with good quality,
Unique designs, and extensive services to customers.
Growth of the market
Growth is very strong in soccer, basketball, and running categories shoes which fuel the demand
for products of Nike. Nike has also associated itself with the sponsorship of Basketball game
which helps to drive the sales in the category of basketball.
Competitive Analysis
SWOT Analysis
The sneakers have been modified to increase the weakness, strength, threats and opportunities in
the market. The SWOT analysis will help to capture the important weaknesses and strengths and
also describes the threats and opportunities which are faced by Nike.
Strengths
 The network of Distribution is very broad; that is it sells the products worldwide.
 It is a leader in brands globally
 A large proportion of market share has been captured by Nike

6
MARKETING PLAN OF NIKE
 Updated Technology is used by Nike to manufacture innovative products and also to
maintain the competitive edge. For example- The partnership of Nike with Apple.
 Nike provides customized and a wide variety of products in footwear category.
Weakness
 The hierarchy of management is centralized, and there is no management backup which
can hinder the growth and creativity.
 The present facility of Nike is overcrowded. Very little is there for new employees and
additional equipment.
 The skills and requirement which are required in an employee are hard to find.
Opportunities
 Sports is being funded by the government and also many companies are setting up large
programs
 Awareness about health is increased regarding losing weight, and it can also benefit those
who possess problems like cancer and high blood pressure.
 It has been predicted that the footwear market will increase globally by 28.9 % by 2018.
Threats
 Outsourcing, right sizing, and reengineering trends can either modify or eliminate
relationships of traditional channels with distributors, dealers, and brokers.
 Increased competition daily can also be a major threat.

7
MARKETING PLAN OF NIKE
 There is no guarantee of the political, economic and natural situation to be favorable
every time.
PESTEL Analysis of Environment
 Political/Legal- A lot of terrorism has been observed in the home country and the rest of
production countries there is a lot of Political unrest which proves an unstable political
environment for Nike.
 Economic- to enter the Economic Union, there is multiple barriers recession in Economy,
and also the cost of labor and prices of materials are increasing.
 Social- the Market's female share is going up, and now there is more demand for products
of fitness. Nike also understands the social responsibility for its labor.
 Technology- Updated technology has also helped the companies to maintain the facilities
of production more efficiently and also develop more material for new product speedily
which can help to design the products with an expert eye.
 Environmental- the impact of climate can change the functioning of Nike's internal
environment. Also, there is the philosophy for sustaining the resources like re using a
shoe which can help to keep clean the environment inside and outside the organization.
 Legal- Three main factors which determine the intensity of legal environment are issues
regarding child labor, working conditions which are unsafe and few laws which can help
to protect the products from being copied.
Effect of Porter’s Five Forces on Nike
 Potential Entrants (low) - There are high barriers to entry in the footwear industry for
athletics as this industry involves huge capital to be invested at the initial entry stage and
this industry is being consolidated, and very few among many will survive.

8
MARKETING PLAN OF NIKE
 Buyers (High) - The main buyers for this industry include the end users and retailers, and
they get influenced by the pricing of the products. Now there is an increased number of
women buyers in the segment which are adding up to some buyers in the industry.
 Substitutes (High) - There are many substitutes for the product and service which the
customer can get attracted to and also shift to it easily if the costs for switching are low.
 Suppliers (low) - Because of availability of some suppliers in the market, they do not
bargain much for the product's price. Also, Nike experiences the Economies of scale
because of facilities of production in the Far East.
 Competitive Rivalry (High) - Its competitors like Reebok and Adidas is offering more
variety of shoes in the market at a competitive price, thus to make its way for the higher
success, Nike needs to understand the target market and customer’s demand effectively.
Industry and Competitors Analysis
The list of competitors includes Adidas, Reebok, Under Armour, Li Ning, Toys R Us,
TaylorMade, PVH, Titleist, Fuel Clothing, Crocs, Pebble, Phat Farm, Atac, Skechers, ASICS,
etc. Adidas is competing in the comprehensive market for sports goods while Puma is a Germany
brand which competes in apparel, footwear, equipment and accessories market. Under Armour
designs its product by the markets for active outdoor and goods lifestyle with microfibers fitted
inside the products which do away with the perspiration (Morgan, et al., 2015).
Value Chain Analysis of Nike
Nike follows the value chain commencing from the development of the product to making it
accessible for the customers through sales in the departmental stores. The initial development of
product takes place after doing the analysis of the market trends and finding the tastes and
preference of the customers. Expensive raw material and fabrics and rubber are used to finish the

9
MARKETING PLAN OF NIKE
products and then they are sent for the final promotion and marketing activities like placing the
products in departmental stores, exclusive Nike brand stores and making online catalogs and
promotions for the new products being launched. At last the customers give their feedback in
respect to their experience with the products they have used (Rouzet, et al., 2013)
Figure 2 Value Chain Analysis
Marketing Mix
Production of Nike
A wide variety of apparel, equipment and shies are offered by Nike by constitute the Number 1
position in today’s market. Now it has entered into the accessory based products like athletic
bags and sports apparel. They have one more brand I itself Cole Haan which supports a line of
casual footwear, men, children and women's accessories and dresses. Under the name of Sports
Specialties, they are leaders in selling the gears of the head. Under this category, they can sell

10
MARKETING PLAN OF NIKE
and manufacture the in roll skates, skate blades, protective gear, accessories, hockey jerseys,
hockey sticks, and ice skates (Rahmani, et al., 2015).
Price of Nike
Pricing of the Nike is competitively designed as compared to the other brand of shoes in the
market. The primary market base for this Brand has been set up as Premium class. Nike instructs
huge amount. The pricing strategy of Nike makes integration vertically in the pricing where the
participants are owned by them at various levels of the channel. They also make active
participation in multiple levels of a channel for different operations. The cost of the production
can be controlled by this, and it can also help to influence the pricing of the product. There are
many facilities for production in Asia and other units of operations and services for customers
worldwide.
Promotion of Nike
Promotion depends upon having access to the large market base in multiple locations of stores.
The Advertising in Newspaper for the target market and strategically creation of alliance. The
brand ambassadors of Nike are the famous athletes like Team of Soccer from Brazil, Lebron
James, Jermaine O’Neal of basketball, cycling expert Lance Armstrong, Golf champion Tiger
Woods. Many events are sponsored by Nike such as Hoop it Up and Golden West Invitational.
Factors like trademark swoosh, the name of Nike and images for the brand makes it as the most
recognizable and unique brand worldwide. The revenues for this Brand are much high, and the
main reason behind this is the power of the brand. Nike is considered to be the empire in shoe
industry as it has a loyal and obedient base of the customer, the techniques of marketing is great,
and the product of Nike are high on quality. These all reasons make it as a high earning and
huge revenue collector brand in the world (Yoo, et al., 2000).

11
MARKETING PLAN OF NIKE
Place of Nike
Many stores which carry the multiple brands do have Nike products, and their products are also
available in the Exclusive stores of Nike. The products of Nike are sold in about 20000 retails
outlets in U.S. and in approx. 200 countries worldwide. Nike can sell its product via a subsidiary,
Licensee, and distributor.
Marketing Strategy Recommendation
Strategy of Nike
The strategy of Nike is classified into three levels: Business level, corporate level, and
International level. At the business level, the Nike incorporates the strategy of differentiation and
uniqueness and value in its product. The technology is cutting edge, and it also involves
customizing the features. This level of the strategy involves serving the customers at excellent
levels to improvise the brand image of Nike. Also, the design of the product is innovative. The
corporate level strategy involves the uniqueness in product features of the business which are
related to each other. There are many advantages from having relationships horizontally in
equipment, apparel, and athletic footwear. Core competencies are being leveraged in campaigns
of marketing, the important tangible resources like suppliers, manufacturing equipment's and
production facilities get easily shared. Nike has maintained very close relationships, and its
brand following is also very loyal which paves the way for the good quality of products and
enhanced R&D. Nike has multiple subsidiaries like Cole Haan, Hurley, Umbro, and Converse.
All these subsidiaries produce accessories, footwear, and apparel. The range of items varies from
Luxury to apparels and footwear of athletic domain (Lu, et al., 2014).

12
MARKETING PLAN OF NIKE
International Strategy- the advantage at the national level by Diamond of Porter include
Endowments of factor like capital, labor, and land. Conditions of demand include sponsorships,
equipment, customization of product and apparel. The supporting and related industry include
the fashion and apparel industry. Also, rivalry, structure and strategy of the firm include
sustainability, quality and branding innovation (Mahdi, et al., 2015).
Financial Analysis
Accounting Policies include estimates of management (preparing statement of finance in
accordance with GAAP), Revenue Recognition (When customer become the owner of risk and
rewards from the product and wholesale revenues are collected from the customers), cost of
Handling and shipping ( included in incurred in Sales cost), Promotion and advertising ( Costs of
placements of media are incurred in the first month of advertisements, Cash items and
equivalents ( includes highly liquid and short-term investments with less than three months of
maturity period from the purchase date), valuation of Inventory ( Inventories are written at
Lower of market cost and estimated at FIFO {First in First Out} method), Depreciation of
equipment, plant and property ( the straight line method is used to depreciate the equipment,
plant and property which are recorded at cost).

13
MARKETING PLAN OF NIKE
May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Footwear 19,871 18,316 16,208 14,539
Apparel 9,067 8,636 8,109 5,775
Equipment 1,498 1,632 1,670 1,013
Other 1,942 1,942 1,812 2,881
Revenues by major
product lines
32,376 30,601 27,799 25,313
Figure 3 Financial Analysis- Revenue Table
At the sales time, revenue reduction is recorded and estimated from the claims which are
miscellaneous from customers and also provide post invoice sales discounts which consist of
program at contractual levels with certain discretionary discounts (which includes rates at
historical level, identifying the outstanding returns and claims, not finalized estimations of
claims which are expected, returns and discounts with customers) and customer discounts (which
can be provided to selected customers in future). As on 31st May 2015 and 2016, the sales after
invoice discounts, Miscellaneous claims and returns of Nike amounted to $724 million and $789
million respectively (Gibson, C. (2008))
Conclusion
The marketing plan of Nike which includes its advertising strategies needs to be improved. Also,
the working conditions of labor and their wages should be focused. The system of information
either primary or secondary should be reliable, and also the website of the company should be
simplified. The acquisition needs to be increased because of increasing threat from Reebok and

14
MARKETING PLAN OF NIKE
Adidas merger. In such competitive environment, the awarding opportunities will be catered to
creative and in genuine companies who meet the demands of customers in the fashion industry
which are driven by trends in demography, pricing, and conditions of the economy. After
examining the company's potential and growth prospects and external environment, it is certain
that the company will achieve its sales forecast in coming years. The Nike can achieve the leader
of the Industry status by securing capital at the initial stage. This capital can be used for costs of
startups, a reputed store, and further to expand the business, its infrastructure and development of
product and to position itself in geography and doing marketing extensively. Nike is able to
possess the success from its operations for many future years.

15
MARKETING PLAN OF NIKE
References:
Gibson, C. (2008). Financial reporting and analysis: Using financial accounting information.
Cengage Learning.
Lu, L., Ji, R., & Liu, M. (2014, July). The design of real-time body weight monitor systems
based on smart phones. In Mechatronics and Control (ICMC), 2014 International Conference
on (pp. 1392-1396). IEEE.
Mahdi, H. A. A., Abbas, M., Mazar, T. I., & George, S. (2015). A Comparative Analysis of
Strategies and Business Models of Nike, Inc. and Adidas Group with special reference to
Competitive Advantage in the context of a Dynamic and Competitive
Environment. International Journal of Business Management and Economic Research, 6(3),
167-77.
Morgan, R., Magin, S., Huber, F., & Herrmann, A. (2015). The Why of Buying Nike–Findings
of a Causal Analytical Study. In Creating and Delivering Value in Marketing (pp. 223-223).
Springer International Publishing.
Piercy, N. F., & Morgan, N. A. (2015). Strategic and operational Market segmentation.
In Proceedings of the 1993 Academy of Marketing Science (AMS) Annual Conference (pp. 676-
676). Springer International Publishing.
Rahmani, K., Emamisaleh, K., & Yadegari, R. (2015). Quality Function Deployment and New
Product Development with a focus on Marketing Mix 4P model. Asian Journal of Research in
Marketing, 4(2), 98-108.

16
MARKETING PLAN OF NIKE
Rouzet, D., & Miroudot, S. (2013, June). The Cumulative Impact of Trade Barriers Along The
Value Chain: An Empirical Assessment Using the OECD Inter-Country Input-Output Model'.
In 16th Annual Conference on Global Economic Analysis.
Tu, Y. T., Li, M. L., & Chih, H. C. (2013). An empirical study of corporate brand image,
customer perceived value and satisfaction on loyalty in the shoe industry. Journal of Economics
and Behavioral Studies, 5(7), 469.
Wilkinson, F. (Ed.). (2013). The dynamics of labor market segmentation. Elsevier.
Yoo, B., Donthu, N., & Lee, S. (2000). An examination of selected marketing mix elements and
brand equity. Journal of the academy of marketing science, 28(2), 195-211.