Executive Summary Companies today face many challenges to maintain market share and differentiate themselves from a highly competitive and ever evolving market place. Marketing is crucial to a company’s long term success. The aim of this paper is to use the “Nike - The art of selling air” case study and concepts from strategic marketing
In this study, these four marketing components will be reviewed: Target Market Product Price Placement Promotion Nike’s product variation, Nike’s main competitors, Adidas and Reebok, each produce a similar product mix to Nike’s, and in order to keep a competitive edge, these companies attempt to optimize its current products and showcase new innovative products. The Summer Olympics, the biggest sporting event series in the world held every four years, presents Nike and other sporting good companies with a huge opportunity to showcase new products and fuel the competition in their industry through sponsorships of teams and individual athletes. By the next Summer Olympics in 2016, sporting companies will have another chance to show off their brand, enhancing the competitive rivalry between each other. Another competitive issue that inhibits Nike’s product distribution is the large amount of substitutes in the sporting goods industry. Consumers have a wide selection of footwear, apparel, and sporting gear retailers to choose from, which requires sporting goods companies to enhance their marketing strategy to sell their products in order to survive in the industry. On the contrary, there are some economic factors that may benefit Nike’s marketing of product in the next few years. Since 2008 recession, real personal consumption expenditures have increased, indicating that consumers are willing to spend more of their money on certain items (Appendix B). This may be an opportunity for Nike to intensify marketing to consumers in order to increase sales at time where there is an increasing
NAME : TEMITOPE ELELU SUBJECT: BUSINESSSTUDIES LECTURER : ALDER OLAJIDE DATE ISSUED: 13TH NOV 2014 DUE DATE : 24TH NOV 2014 TOPIC : THE IMPACT OF DIFFERENT TYPES OF PROMOTIONAL ACTIVITIES USED BY COMPANIES NIKE AND ITS PROMOTIONAL ACTIVITIES 1.INTRODUCTION 1.1 BACKGROUND STUDY In 1960 GERMAN brands such as Adidas & puma sneaker and trainers dominated the
Brands use different strategies to create competitive advantages to beat with their rivals. Some companies use “Overall Cost Leadership” to increase profit by reducing costs and increase market share by lowering price. Some companies use “Focus Strategies” to select a group of market and tailor its strategy to serve that group. The others use “Product Differentiation” as a strategy to obtain a premium price by making unique products. Nike, with its differentiation strategy, the company is continuing to separate its self from the competitors by using its superior technology and innovation. This paper mainly discusses on the company’s product differentiation and analysis how the company using this strategy to build its brand image and become a market leader in sportswear industry. A brief discuss about Nike competitive advantage which related to its broad differentiation aspect and the company product life cycle are also presented on this paper.
Nike has also shown a balanced attitude towards the customers. Not only are their operations transparent and reliable but at the same time, they are reliable as well. They have specifically succeeded in maintaining a large customer base over the years, and all this is because of the attitude they
Introduction Customers make purchasing decisions based on the information they have among products and the values of goods a company offers. For that reason, companies have to promote their products to increase products awareness. In order to achieve organizational goals, companies must understand the market’s needs to ensure the success of their businesses. Such information can be gained through research. The industry that will form the basis of this paper is Western Canadian Shoe Association. The three brands under study are Reebok, Adidas, and Nike.
Nike has been in existence for some reasonable period of time, since 6). This strategy is a major component of Nike’s business strategic level plan. In applying this strategy, Nike has attained a great deal of consumer insight, which it uses to offer uniquely designed premium products to the athletes. Still on product differentiation, Nike focuses more on research and development at a greater level. These unique features to Nike, have transformed the competition levels in this competitive industry, leading to a trend of a paradigm shift in the market. Most consumers opt for Nike branded sports products and apparels, at the expense of the other brand names.
TASK 1: I. Understanding customers needs Understanding customer needs will help Nike to define new market opportunities and drive innovation and revenue growth in every aspect of its organisation. The most basic concept underlying marketing is that of human needs. Human needs are states of felt deprivation (Kotler and Armstrong, 2006). Customer logic is derived from evaluation of a company and its product based upon customer needs, customer benefits, and product features. For branded athletic shoes, Nike has to understand customer needs on a global level as the products are sold
Nike is one of the largest athletic retailers in the world and the most important lessons learned when studying the successful brand include focusing on building a strong brand and the implementation of innovations. What is the first thing that comes to mind when you say or hear the word Nike? Just Do It! Swoosh! Kobe Bryant. Air Jordan’s, maybe? Well those are just a few of the many ways in which Nike has successfully managed to grow its brand. The prevalence of the Just Do It! tagline, along with the Nike swoosh, has allowed its customers to identify the brand without Nike having to say it continuously. Nike has managed to create strong emotional ties through the constant use of imagery and messages.
3. Competitive Strategy of the Company 3.1 Value Proposition NIKE, Inc. is the world’s leading innovator in athletic footwear, apparel, equipment and accessories. Their mission is quite simple: "TO BRING INSPIRATION AND INNOVATION TO EVERY ATHLETE* IN THE WORLD. *IF YOU HAVE A BODY, YOU ARE AN ATHLETE." NIKE.com NIKE‘s unique value proposition has
Nike products is one of the most selling products all over the world, Nike products are as innovative as it meets the customer needs. So our products is Nike HyperAdapt1.0 where it is simply self-tying shoes so the main idea of this shoes is to put all technical components into this shoes as it allows the athlete to hit a sensor while running and the system will be tighten automatically. Moreover, In order to monitor customer satisfaction , there are four ways, the first one is to analyze customer interactions through answering their questions in emails and tracking to their feedbacks so mapping high quality with customer expectations is highly effective, the second one is the conceptual model of customer satisfaction which says that Nike
Introduction Nike is the leading and yet renowned supplier of athletic apparel and shoes. The company controls close to 33% of the global athletic shoe market (Dogiamis & Vijayashanker,2009).Nike was founded by Bill Power and Phil Knight in 1962 as a Blue Ribbon Support and then was later on renamed to Nike in the year 1968 (Patrow,2003).The company supplies very high quality product in close to 100 countries with major markets being located in the U.S,U,K, Asia Pacific as well as in the Americas. The company has managed to attain its lead and legendary position via the application of innovative and yet attractive product design which is backed by quality production as well as well crafted marketing strategies.
profit margin expectations handed down by corporate headquarters created an environment that encouraged the sale of Nike’s high-margin products to high-end customers. Regardless of the low cost of the World Shoes, they
1.5 Prevailing Corporate, Business and Functional Strategies Nike’s main strategy revolves around product branding. Their brand compromises of a swoosh logo which is accompanied by a message of “just do it”. The logo was imprinted on all of their products with the message developed to express the individuality of their target group. The branding was further promoted by Nike’s relentless approach on the quality of their product as demonstrated when considering overseas business opportunities, quality must not be compromised in order to do so. This ensures consumer satisfaction and loyalty towards Nike.
Nike’s Offensive Competitive Advantage There are numerous definitions of competitive strategy; whether, it was defined by a scholar, a textbook, or a dictionary source, it is not the same. A source may refer to this subject as a competitive strategy or a competitive advantage. Therefore, this subject is difficult to understand and then apply to a company. The Five Generic Competitive Strategies that Michael E. Porter developed are not really five strategies, more like five with subsets under them. Nike does not fit neatly into a specific strategy. The first factor within the competitive strategy as described in the Essentials of Strategic Management textbook is a broad target market or a narrow target market. The second factor considers