Nike Marketing Stragety

Nike is considered to be a leading athletic footwear manufacturer, which makes up over 30 percent and 50 percent of global and US market share respectively. In order to reach customers’ demands and get profits, Nike has executed/implemented a number of marketing strategies. This essay will examine Nike’s key strategies from1962 to 2009. The most essential marketing strategy called “Pyramid of influence” was expressed by Product, Place and Promotion strategies throughout targeting on athletes, sportsmen and sports loving consumers.

Innovation: In such a mature and competitive industry, continuous innovation is crucial to the success of the company as it gives a unique selling point that rivals do not have. Both product and process innovation are Nike’s

We can evaluate Nike’s core marketing strategy as related them to the relevant marketing theories. First of them is distribution theory. Nike distributes its products on different level basis. The high quality products are given to a certain distributers while the low price to be sold at highly discounted price at the retail stores such as Wal-Mart. Nike has also become the leader in the e-commerce by being the first to the market whit its e-commerce website. This program represents the first time a company has offered mass footwear through the internet and provides

Business level strategies are plans that a firm forms to describe and project how it intends to build a sustainable competitive advantage, over its competitors in a discrete market (Furrer, 2010, p. 1). These strategies have changed the nature of competition in industries, and paved way for further developments in product quality and cost. Business level strategies employed by Nike work mainly in two forms, that is, competitive strategies and corporative strategies (Furner, 2010, p. 1). By looking at the different business level strategies Nike has employed, this essay will explain how it has had such a massive impact in the Sports and Apparel industry it now leads.

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.

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.

In the above example, Nike is showing support to women athletes by advertising women athletic footwear. Because of this participation, Nike has influenced other corporations to do the same by making great gains for their support. For years gender separation has existed and mainly alienating women from

Nike’s organizational Form reflects a conglomeration of resources, processes and people around the activities most critical to their target customers in terms of its Value Proposition. It decided therefore to concentrate in depth on the critical activities and competencies rather than increasing the breadth of its

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

Through its celebrity endorsements, the company has leverage against its competitors such as Adidas. While some of the companies in the industry sponsor games to expound brand recognition, it is noted that Nike concentrates on individuals that can enhance their prevalence in the market (Wilson, 42). Thus, there increase in valuable coverage as opposed to the other institutions. Additionally, the distinct designs and distribution strategy is effective in that many people feel the need to use the products in different frontiers. For instance, tennis, volleyball and football players have designs of the products that they can use in different stages. Due to the availability of varieties, the company has leverage in that it can trounce its

As a leading athletic brand in the world, much of Nike’s success can be attributed to its shrewd marketing strategy. As reported in its 2009-2010 Annual report, because NIKE is a consumer products company, “the relative popularity of various sports and fitness activities and changing design trends affect the demand for our products”. Therefore, Nike must “respond to trends and shifts in consumer preferences by adjusting the mix of existing product offerings, developing new products, styles and categories, and influencing sports and fitness preferences through aggressive marketing”. In fiscal year of 2009, Nike’s demand creation expense, which consists of advertising and promotion expenses, including costs of

Nike Inc. is a global sportswear manufacturer with about $25 billion sales revenues in fiscal 2013. Nike is clearly a market leader of sport footwear compare with Adidas, Puma, New Balance and others. The global athletic footwear market share of Nike is estimated almost 20% in 2012. The U.S represents the biggest market for Nike, with nearly 60% of market share in 2013 (Powell, 2014; Team, 2014). The marketing plan is important for Nike understands the market environment and review strategies in order to maintain its competitiveness.

The strategies that Nike is using to achieve the goals are that they want to create a long-term revenue growth. They want to do that by making innovative products that everyone wants, they want to have a more personal relationship with the costumers with the brands from Nike and they want to deliver experiences that are immersive at retail and online.

Nike is considered as a brand that is stylish meeting its customers' needs. Their method of the styling of product objectives has given them a top position in the foot wear industries. They have associated their triumph with their apparel, and as a result, they make a substantial impact on their viewers. For example, Nike associates their sponsors such as top athletes with their victories thus reinforcing effective marketing strategies. Additionally, Nike ensures that the target users that are possible to boost

The Nike Corporation is able to retain and keep its position and competitive advantage by ensuring that its generic and intensive growth strategies are interlocked to the company’s business well-being. While reviewing the Nike Corporation I learned that Nike used a combination of strategies for its competitive advantage. While the top two of those are cost leadership and differentiation strategy. Nike sustains competitive advantage based on cost strictly due to the company minimizing production cost so they are able to maximize profitability or even able to lower the selling prices. In this alone shows the real power of a winning strategy it is a strong factor in the company’s competitiveness. However, surprise when reviewing its differentiation strategy it