MKT 337 Final Project

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Southern New Hampshire University *

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Marketing

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Feb 20, 2024

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1 Final Project Jennifer Brogan Southern New Hampshire University MKT 337: Marketing Research Professor Boydstun October 20, 2023
2 Overview: SWOT Analysis The organization I have chosen is Nike. Nike will be launching a new trendy more comfortable high-top sneaker. While Nike is one of the top leaders in the sneaker industry, their women’s high top sneaker section could use a little help. Although they have a lot of Jordan and Nike Dunk high top options a lot of the sizing in high tops usually are youth sizes and men’s sizes. Coming up with a more comfortable, trendy high-top sneaker geared towards women could open some more doors in the sneaker industry for Nike. Strengths I think that one of the biggest strengths that Nike has is strong brand equity. This makes it easy for them to try out new sneaker ideas and know that people will buy their brand just for the Nike symbol. Another strength would be that Nike already has so many famous celebrities endorsing their brands. Utilizing popular female athletes to promote the new high tops could be helpful. Another strength would be that Nike has low-cost manufacturing which is a key part in their business strategy. Weaknesses Some of Nike’s weaknesses include controversial labor practices. It has been known that Nike uses children and other terrifying labor practices to make their sneakers for as cheap as possible. Another weakness for Nike would be worrying financial indicators. While Nike is still one of the most valuable sports apparel companies recent worrying financial trends have been noticed. The big one being steadily increasing long-term debt profile of the company. The long- term debt stood at $8.9 billion in 2022 which is a 5.21% decline from the previous year. Another weakness would be that they rely on their footwear line for their revenue stream. By putting
3 their eggs all in one basket per say, they are vulnerable to if something happened to the sales of this product. Opportunities Some opportunities out there for Nike would be increasing their product range. I think by working more on just their sneaker line and trying ot make more quality active wear would be a big opportunity for Nike as a company. I think another opportunity for Nike would be investing in some type of anti-counterfeiting technology. With so many fake sneakers being made these days this could be beneficial to them. Having a place people can send a picture to or scan a sneaker and know if it is fake or not could be huge especially for Nike. Another opportunity out there for Nike would be sustainability. As the world becomes more and more environmental conscious, I think Nike should make a bigger stride towards being more sustainable which I know they have started to. Threats I think one of the biggest threats for Nike is counterfeit sneakers. The fakes have become so good these days that its truly hard to figure out if they are real or not. Another threat is that there are so many sneaker and athletic wear companies coming out that Nike really needs to up their clothing game. Competitors are investing in advertising and utilizing more famous people to promote products. Another threat Nike has is the animal abuse scandal. Animal rights advocates have been after Nike for its use of Kangaroo skin for its manufacturing of pineapple products. Some advocates things its bringing kangaroos to extinction.
4 Overview: Initial Trends With the sneaker industry only becoming more and more popular and only on the uprise. Especially high tops a trendy new comfortable to wear out to dinner sneaker will be great for Nike and female sneaker wearers all around the world. The trends these days are only gearing towards people wearing more casual clothes out and about with sneakers being at the forefront of the outfit. The sneaker world is only gaining more and more popularity with sneaker shows be- ing held all around the US. People are starting to collect and cherish their sneakers. I think launching a new product into this industry may seem easy but really needs to be top notch. By listening to the women and seeing what they truly want can help to make the product successful. Utilizing the Nike name and popularity is going to be crucial to help with the launch into the in- dustry. Marketing Mix Elements: Potential Target Demographics Since Nike was established in January of 1964 their key demographics have been targeted towards consumers who are between 15- 40. The company caters to both male and female athletes equally with a push in recent years to utilize more women athletes. Nike is also making a push to focus in more on teens and tweens to build long-term brand loyalty. With Nike trying to gear its brand towards females and the younger generation the new trendy, comfortable high top would be a good place to start. Although Nike says that it caters to females the high-top selection has shown otherwise. Trying to find a high-top sneaker in women’s sizes alone is a struggle but then add in comfort and trendiness it’s a whole other ball game. With the upcoming release of the Nike women’s high top comfortable, trendy sneaker it is critical that Nike utilizes focus groups and online surveys to really get the women the sneaker they deserve. Marketing Mix Elements: Internal and External Organizational Factors
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