ABSTRACT
This paper endeavors to recommend a viable marketing plan for the footwear giant, Nike. The plan has been adequately substantiated with thorough research on different factors affecting the firm along with various ways of addressing future challenges. This research paper highlights that Nike is confronted with multifarious issues which need to be negotiated amicably. Result of the study concludes that there is still a world waiting for the Nike to be exploited, outsmarting its competitors employing its innovative and creative business strategy.
MINI BUSINESS / MARKETING PLAN NIKE, INC.
COMPANY OVERVIEW
In 1962, two individuals from the University of Oregon established a small company with the name of Blue Ribbon
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The footwear has been sub categorized into various product lines including sports culture, running, basketball, soccer, women fitness, baseball, football, track and field and kids. The equipment products comprise of bags, golf items and timing tools. [All products, Nike.com]
PERCEPTUAL MAPPING
Nike is the top shoe manufacturer and holds major chunk of the US athletic shoe market. It has 36 competitors of which top three include Reebok, Adidas, and Fila. [Catherine Colbert, Hoovers.com] The industry is faced with multiple challenges like decreasing demand and increasing popularity of alternative footwear. Nike currently enjoys 47 % of market share with Reebok following with 16 % and Adidas having 6 %. [Steven Van Dusen, Nike vs. the Competition, web-link] With the merger of Reebok and Adidas, Nike is likely to confront a tough future.
SWOT ANALYSIS
Nike's SWOT analysis in brief is as following. [SWOT, marketingteacher.com]
1) Nike derives its strength from its strong research and development capability. It is constantly evolving innovative products of high quality with comparatively low price.
2) Nike's major weakness lies in her heavily reliance on footwear. This makes her exposed considerably to market fluctuations. More-so, Nike has very little share of retailing its own products hence the low price pressure is often passed on to the company by the retailers who refuse to lower their own profit margins.
3) Nike owns a globally recognized
NIKE Inc. has been the worldwide leader of athletic shoe sales for many years now. The company’s successful brand image combined competition and enablement for the competitive, athletic user. Nike has to modify their brand to a focus of excitement and freedom and not just competitiveness. By collecting and studying an assortment of material we could be able to understand where NIKE is currently placed in the athletic shoe industry compared to their competition, and how they will be able to adjust their brand focus so it can be more effective in the future. These adjustments can help NIKE reach the more casual group of urban runners and ultimately increase the sales forecasts, while still controlling a percentage of the market for athletic shoes.
The company has launched the Nike products, which embody a love of sport, discipline, ambition, practice, and other athletic traits.
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.
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
Nike has totally changed the sports footwear and sportswear market. Nike's huge selection of merchandise consists of specialized workout equipment, footwear, clothing, accessories and sports components. Nike is among the world's biggest brands and a leader in the sportswear industry because of their advertising, innovative products and sponsorship of top teams and
Nike is one of the most successful sporting goods companies across the world and a well-known brand that sells merchandise globally. NIKE, Inc. recognized an opportunity in the challenging economic environment, to rebuild the company strengths and pursue other potential by taking on partnerships with Cole Haan, Converse, Hurley, NIKE Golf and Umbro. This opportunity brought NIKE, Inc. more than:
Nike, Inc. is a sporting goods and apparel company founded by Bill Bowerman and Phil Knight in 1972. Nike, being a world-wide phenomenon, has “more than 35,000 employees across six continents and in more than 160 countries around the globe. Through our suppliers, shippers, retailers and other service providers, we directly or indirectly employ nearly one million people” (Nike, Inc.). All this is done to help Nike fulfill their goal to “carry on [Bill Bowerman’s] legacy of innovative thinking, whether to develop products that help athletes of every level of ability reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for our shareholders” (Nike, Inc.). Ultimately,
In conclusion, Nike does a lot of things very well. Their promotional and marketing strategies and campaigns are outstanding and considered as being second to none. Their sponsorship of celebrity athletes, professional teams, and college teams and their advertisements showing these athletes and teams using and wearing their products to elevate their game is how they are able to powerfully connect with their customers. This and their high product quality have helped Nike to
Currently, Nike stand as a leading figure in producing high quality sports and fitness equipment and apparels. Bearing just a simple start of selling Japanese imported shoes from a station wagon has transformed
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.
Enderle, K., Hirsch, D., Micka, L., Saving, B., Shah, S., Szerwinski, T. (2000, March 14). Strategic Analysis of Nike, Inc. Retrieved on December 14, 2005, from
Nike is an international company which specializes in designing, making and selling athletic footwear. The company specializes in designing high-quality products which are used worldwide by many people. Apart from being used in athletic and basketball games, the company 's products are used as casual wears. Apart from making and selling footwear, the company also offers a wide range of services to its customers and also sells both equipment and their accessories. The company has well-organized marketing system, including an online platform via the web. Due to its vast activities, the company has independent and licensed contractors who produce products on behalf of the company in different regions. Some products, such as footwear are primarily produced by their contractors outside the United States, while equipment are produced both locally and abroad. Their branches are managed independently, but under one common top management at the main offices. The various financial statements are consolidated at the end of the year and released as a one company report. The financial statements of the company are prepared both quarterly and annually. The business products are sold to wholesale customers, retail customers as well as individual customers who are the final users of the products. To increase its operations and boost sales, the company also has non-affiliated parties who independently manufacture and sell Nike products using the company 's logo.
One of Nike’s main opportunities is product development. Developing their product range makes them more competitive and because products tend to go out of fashion quickly, Nike must introduce new products relatively fast because consumer demand the newest and latest products. Increase in internet shopping will no doubt reduce the cost and improve prices making them even more competitive.
A comprehensive analysis, using market data and market research, allows us to assess all areas affecting Nike’s strategic direction:
The report is about Nike, regarding the case study. The report elaborates on the aspects including buyer behaviour, brand image, consumer decision making, and marketing research techniques applicable to Nike. 3.0 Introduction Nike is the worlds number one sports shoe company. In the US Nike dominates 35% (source: see appendices) of the sports shoe market and its products are sold in more than 140