Nike VaporMax: A Comprehensive Marketing Strategy and Plan Analysis

This report provides a comprehensive analysis of the marketing strategy and plan for the Nike VaporMax, a high-performance running shoe by Nike. It begins with an overview of the product and manufacturer, followed by a SWOT analysis that identifies the product's strengths, weaknesses, opportunities, and threats. The report delves into the target market, product features (including its three layers, classification, life cycle, and brand positioning), pricing strategy (including price analysis, competitor pricing, and pricing techniques), and promotion strategies (including advertisement analysis and placement). Innovative recommendations, such as lace-less shoes and a microprocessor chip, are also proposed. The report concludes by highlighting the success of the VaporMax in the market and suggesting areas for improvement, particularly regarding durability. The analysis is supported by relevant references from various sources.

MARKETING STRATEGY AND PLAN
-Nike VaporMax
03/01/2025

Introduction
 Purpose:
 Analysis of marketing strategy and plan for the Nike VaporMaxtm
 Provide a background and analysis of the manufacturer, product, target market, pricing
strategy, promotion strategy, and placement of the product
 Develop recommendations to improve the success of the product
 Limitations:
 Limited to the online resources
 Time constraint for the research
03/01/2025

Scope
 Overview of the product and manufacturer
 SWOT analysis of the product
 Target Market analysis
 Product analysis
 Three layers approach
 Product Classification
 Product Life-Cycle
 Brand Position
 Price analysis
 Product Price
 Competitors price
 Pricing Strategy
 Pricing Technique
 Factors affecting price
03/01/2025

Scope
 Promotion of the product:
 Advertisement analysis
 Placement of the product
 Direct or indirect placement
 Distribution intensity
 Retail Outlet
 Innovative Recommendations
03/01/2025

Background
 Nike VaporMax
 Quality running shoe
 Ultra light and comfortable
 Top of the shelf
 Launched in 2017
 (Nike.com, 2018; Childs & Jin, 2018)
 Nike Inc.
 Headquarters is located in Washington County, Oregon, USA
 Founded in 1964
 One of the leading manufacturers of sportswear, sports accessories, sports equipments and apparels
 Global Revenue: 36.4 billion USD (as of 2017)
 Net Income: 1.93 billion USD
 Holds 26% of market share
 Competitors: Adidas, Puma, Converse
 Availability:
 Nike Online Stores
 Nike Retail Outlets
 Retail Franchises
03/01/2025

Background
 SWOT Analysis of Nike VaporMax:
 STRENGTHS
 Innovative design and technology:
 Nike Flywear (which creates target stretching areas for the shoe to support adaptive performance)
 Nike Flyknit Upper (which provides a lightweight support)
 Outsole (which provides maximum traction using integrated TPU lugs)
 Integrated Rubber Pods (which is placed in areas of high impact to increase the durability of the shoe)
 VaporMax technology (which provides air cushioning for best performance)
 Multiple colour options
 Light weight
 Durable
 Better Airflow
 WEAKNESS
 Expensive
 Durability of flyknit, shoe tongue and air cushions
 OPPORTUNITY
 Improving sturdiness
 THREAT
 Competition from similar products such as Adidas UltraBoost
 Other competitors: Reebok, Puma, Converse, Fila
03/01/2025

Target Market
 Main Market:
 Sector of sports and athletic footwear and accessories
 Sports industry sector
 High quality and High Performance footwear
 Typical Customers:
 Athletes
 Sports Professionals
 Non Professional sports Enthusiasts
 Individuals who engage in running and jogging activities and fitness exercises
03/01/2025

Product
 Three Layers of the product:
 The Core Benefits :
 ultra light
 exceptionally comfortable
 improved support
 better airflow
 Supports best performance of athletes
 The Actual Product
 Few Shortcoming in the product manufacture:
 durability of the flyknit and shoe tongue
 Insufficient underfoot protection
 Augmented Product
 Good after sales service
 Warranty
 Home delivery
03/01/2025

Product
 Product Classification:
 Shopping Good
 Specialty Product
 Product Life Cycle:
 Birth: designing and manufacturing of the product
 Growth: when the product hits the market through the distribution channels
 Maturity: where the customer purchases the product
 Decline: reduction in the use of the product due to wear and tear
 Revival: reselling of the used product at a lesser price
 Brand Positioning
 State of the art design and crafting
 Top quality materials
 Durability
 Reliability and performance
 Top of the shelf category
03/01/2025

Pricing
 Product Price
 VaporMax is priced from AUD 190 to AUD 225 (store.nike.com 2018).
 Price of other products
 Price for Adidas UltraBoost: AUD 260 (adidas.com.au 2018).
 Price for Converse All Stars: AUD 130 (converse.com.au 2018)
 Pricing Strategy
 Premium pricing strategy
 Psychological Pricing Technique
 Odd Pricing
 Two factors affecting the product price:
 Quality
 Niche Market
03/01/2025

Promotion
 One Advertisement
 The Guardian on July 22nd, 2018
 Main Promotion message in the advertisement:
 Lighting Shoes
 Superior performance
 Execution Strategy of the advertisement
 Well executed
 Effective
 Advertising objective and its relation to the execution strategy
 Meets the objectives
 Additional promotional elements:
 Quality
 High end design
 Improves performance
 Push or pull strategy
 Pull Strategy
03/01/2025

Placement
 Direct or indirect channels
 Direct through online and retail outlets
 Indirect promotions through sponsorships and events
 Distribution intensity and its suitability
 Global Distribution
 Intense marketing
 Suitable to attract the customer base
 Type of retail outlet for the product
 Retail stores
 Online stores
 Retail Franchises
03/01/2025