Marketing Mix of Nike

Vertical integration – when you choose to produce raw materials and/or distribute finished goods themselves rather than rely on independent suppliers, factors and agents for these tasks

In this paper, we present an elaborate analysis of the marketing mix employed by Nike in its marketing strategy. The marketing mix is conducted on the basis of the concept of "marketing mix" which is usually referred to as the "4Ps" as an important means of effectively interpreting as well as translating the marketing strategy into practice as noted by Bennett (1997).A recommendation is also provided.

The aim of this paper is to use the “Nike - The art of selling air.” case study and concepts from strategic marketing theory to identify marketing challenges and how those challenges could be best addressed using marketing principles. The paper will:

Vertical integration is when a company has control of more than one stage of the supply chain. This type of manufacturing strategy has various advantages, including the fact that they get more control over the value chain. This includes control over production aspect of their distribution process and how much they would sell them on the market. They also get cost control in a way that they don’t have to buy supplies or production resources so that they can focus on their product and their customers. Vertical integration allows a company to increase their advantages over their competitors and block them from gaining access to resources or important markets. An example of this is when a manufacturer enters retailing and distribution to get direct

Nike invested in their brand by getting sports heroes to advertise for their brand such as Michael Jordon, Tiger Woods and the Brazilian football team. This further fuel the products appeal towards the consumers.

The company I am presenting is Nike which was founded in 1965 by the athlete Phil Knight. Nike is a well known brand which is selling its products worldwide and has 36% of the market share.

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.

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Vertical integration is the process of combining firms, usually under a single ownership, that are different parts of a larger production scale. This could be anything from two firms to all of the firms that make up the supply chain. Due to combining multiple smaller firms, this form of integration has an effect on the market power that the firm(s) has (Riordan, 2008). This differs to horizontal integration which is the combination of firms or expansion of a single firm at one particular point of the production process (Black, Hashimzade, & Myles, 2009, p. 206-7).

The global fashion industry is valued at 2.4- 3 trillion dollars, with sales expected to exceed 1.6 billion dollars (FashionUnited, 2016; Gilani, 2017). Despite the global economic turbulence, the fashion industry was one of the few winning industries with continued 5.5% annual growth during the last decade. According to the FashionUnited (2016), Nike is the largest company in the fashion industry with a value of 105 billion dollars, followed by the fast- fashion company Inditex with a value of 104 billion. The Louis Vuitton Moet Hennessy (LVMH) conglomerate comes in the third place followed by the US-based company TJX. The top 5 leading fashion companies is completed with the Swedish- based fast fashion company H&M with a market

Whether you’re a die hard sports fan or a person that has never played a sport in their lives. When I optically discern that check logo I ken it can only be one company. That company is Nike.Now Nike is arguably one of the most recognizable clothing or sportswear companies in the world. Strangely enough out of the fifty-one plus years they don’t have their own magazine. Nike sends their business to the best outlet as far as shoes, sportswear and equipment which is Eastbay. Eastbay is most popular for being an online catalog.As far as I know Eastbay is the only sports catalog, their’s not another one that comes to mind. I’ve been getting Eastbay magazines for ten plus years, so as usual coming home from school, I stumble upon an Eastbay magazine that the cover alone caught my eye. This Eastbay and Nike cover ad argues that” Geared for greatness this season is yours”. The following paragraphs will explain how the visual composition of this advertisements.Its argumentation and its product background all as one to create this intense ,yet simple persuasive ad.

Nike, Inc. has been the world’s leading innovator and provider in athletic footwear, apparel, equipment and accessories for 50 years. Their mission has been to bring inspiration and innovation to every athlete in the world; if you have a body, you are an athlete. Arguably one of the most innovative companies in the world, Nike has built its brand into an iconic world-class powerhouse that continues to dominate the market with no signs of slowing up. Nike’s marketing and advertising have been breakthrough, aspirational, and legendary over the years, featuring high-profile athletes and heroes.

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