NIKE

Project
Prepared for: Dr. Deepti Wader, Integrated Marketing Communication
Prepared by: Hrithik Gupta, BBA
3 April 2019
ENROLLMENT NO. : 160010201052
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EXECUTIVE SUMMARY

This report is all about to show a Marketing plan for Nike’s products; with reference to older
offerings the report shows the plan that how can Nike offer new products in the market. With
respect to this the report contains comprehensive marketing plan components including company
analysis (Nike’s current and future status), situation or market analysis and competitors analysis;
the report shows the Nike’s objectives and marketing strategies in terms of its 4ps that is it is
shown that Nike can offer and increase its product range by offering other related products as
aerobic products to its customers and set value-based pricing strategy accordingly, and for new
offerings it can increase its other media other than commercials that is it can focus more on social
media to promote its new products and it may expand its business in other countries as China,
Middle-East etc. Beside this, the financial budget of this marketing plan has been discussed which
is been forecasted by reviewing Nike’s previous years revenue and marketing expenses figures.
Also execution plan as well as contingency plan has been shown which is thoroughly depends
upon Nike’s senior management and team work which would make its objectives possible new
offerings.
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INTRODUCTION

Nike makes shoes for men, women and children and also other athletic products like clothing such
as shorts, lowers, caps, shirts, jackets and under garments; wristbands, bags, balls, sippers and
socks.
The company’s mission is “to bring inspiration and innovation to every athlete in the world”

“If you have a body, you are an athlete.” Bill Bowerman(company’s late co-founder)

Nike launched a brand new business segment called Nike Digital Sport (NDS) in 2010. The goal
of Nike Digital Sports was to develop devices and latest technologies to enables users to keep a
track of their personal performance and at the same time Nike gathered and stored customer data
corresponding to customer trends and needs. With the help of NDS, Nike has been able to
communicate and share widely and effectively with customers and users about their needs and
hence provide newer trends in the market relating to that data. NDS was a competitive
transformation at Nike from traditional to digital marketing strategies. Nike launched its online
website in 1996 and its online store in 1999.
Nike redeveloped and designed its website in 2005 and provided customers a new service called
NIKEiD . Customers could make and design their own shoes through NIKEiD which was not
offered by Nike previously or any other competitor. This strategy gave the customers freedom to
design their customised and at the same time strengthen the brand moto by giving its customers
the liberty to JUST DO IT.
The Nike slogan, Just Do It , along with the Swoosh symbol(✔) have uniquely positioned the
brand’s image in the mind of the consumers, through the Identification of its products/services and
promotional tools used worldwide.
In developing and maintaining its marketing communications strategy, Nike applies a strategic
mixture of advertising, personal selling, direct marketing, sales promotions, and public relations.
This strategy enables the company to effectively promote its products and strengthen its brand
image to ensure greater profits.
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Source: Nike’s Integrated Communication Mix (Pickton and Broderick, 2005)

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CURRENT CAMPAIGN STRATEGY(COMMUNICATION

PLAN)

The communication strategy of any organisation should correspond to the product and services it
produces. The strategy should directly communicate to the customers and the internal employees,
the mission of the organisation and the values it stands for. A company utilises marketing
communications to promote its business and products, keeping in mind the dynamics of its target
markets. The marketing communications mix is also known as promotion, which corresponds to
the promotion component of the marketing mix or 4Ps.Once such company which uses different
kinds of marketing communication mix to promote its brand is NIKE.
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 On Site Advertisement

Nike do huge and vast advertising on its Website (Nike.com). Nike’s latest products and ad
campaigns are featured on top of the Nike’s homepage. Currently it is celebrating its anniversary
week by tempting customer to shop from their anniversary collection. All Nike products featured
on the landing page are displayed in bright and vibrant, eye capturing colors. Nike’s official
website, has more than seven million visitors each month; the website is designed to make the
brand remain the most authentic, connected, and diverse retailer in sportswear. Nike remains in
touch with it’s visitors by sending emails and newsletters informing them about the latest release
and offers.

Nike’s Eleven Maxims

1. “It is our nature to innovate.”

2. “Nike is a company.”
3. “Nike is a brand.”
4. “Be a sponge.”
5. “Evolve immediately.”
6. “Do the right thing.”
7. “Master the fundamentals.”
8. “We are on the offence – always.”
9. “Simplify and go.”
10. “The consumer decides.”
11. “Remember the Man.”

Social Media Communication

Nike has intensely strengthened its presence over social networking sites in the last several years.
The brand also has its own social networking service called Nike. This social networking service
targeted on establishing social networks relationships among people and communities.
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Source: Nike.com

 Nike Advertising and Emotional Branding

Nike’s strategy is to create a strong and powerful brand – so powerful that it stimulates passionate
customer loyalty from customers all over the world. This is because Nike advertising uses the
emotional branding techniques in its promotion strategy by utilising the story of the Hero. In a
way, we can say that Nike’s branding strategy is thousands of years old yet effective, and has been

provoking customer loyalty the entire time.

Building Customer Loyalty with Heroism

Nike advertising isn’t the only one that utilises the Hero paradigm to create customer loyalty.
Several other companies use the same emotional branding technique to great extent. In most cases,
the foe is external. The most common story is of a hero who is a man of humble origins getting out
to conquer a great evil – one who is far more powerful than he – and, against all odds, coming out
as triumphant. This same pattern could apply to, say, a security system against a fire in a house, or
an antacid against heartburn. As long as there is a clear foe and an equally clear hero, the
emotional branding can start to take it course.
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Nike Brand Strategy

Nike advertising uses the normal hero story and transforms it on its head. Instead of inspiring
customer loyalty by singling out an external enemy, it pulls out the stops and focuses on
an internal foe – our laziness. Nike advertising has experienced and known just how often we fight
with our lazy side every day. Every morning when there is still dark outside and the alarm rings,
the battle begins . When we decide how long to run, the battle progresses. This is how Nike
marketing uses emotional marketing strategies to provoke customer loyalty. They know that while
not all people identify with an external enemy, all people identify with an internal one.Nike brand
strategy is excellent on this end because not only is the internal enemy someone we all hate and
want to get rid of, the hero is the audience! In one way or another, we are all the hero of our own
story, and Nike marketing has long since identified that feeling – and used it to provoke classic
customer loyalty.

 Direct Communication
Nike Inc. uses direct marketing to aggrandise new products to target markets. These new products
are usually strongly advertised. However, to make a larger impact, the company utilises
salespeople to reach certain organisations or individuals in target market segments. For example,
the company approaches and encourages the usage of its products to sports organisations in
colleges and universities. Nike’s marketing communications mix uses direct marketing to establish
more intense relations with target customers and inspire them to purchase the company’s products.
Direct marketing helps Nike’s competitiveness through customer loyalty. For example, in directly
communicating with target institutions, schools, colleges, and universities, the company creates
loyalty among target consumers, who become regularly exposed to the Nike’s brand. This helps
inspire the company’s competitiveness and intimate the strong force of competition determined in
the Porter’s Five Forces Analysis of NIKE Inc.. This means that strategic advances to promotion
are directly connected to the development of the company’s competitive benefits.

Public Relations at Nike

Nike utilises public relations in marketing communications. The company executes public
relations as a way of dealing with social issues linked to its business. For example, the company
handles social pressure regarding the use of sweatshops, as well as pressure to implement green
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technology incorporation in the business. Many of these issues are included among the
considerations in developing Nike’s Corporate Social Responsibility activities and stakeholder
management activities. This shows that the company also utilises public relations to deliver
information to stakeholders regarding present and future corporate citizenship activities that are
planned to improve the business and its effect on stakeholders.

The company applies public relations by sponsoring sports events and other activities, and hence
utilizes these activities to target customers regarding what Nike does to deal with relevant social
issues. Hence, Nike’s promotional mix includes public relations to address social issues and to
promote the brand, so that present and future customers develop a better image and perception
about the company and its products. Overall, Nike Inc. is assertive in making sure that its CSR
programs helps the business aim of optimising revenues and profits from the sale of sports shoes,
apparel and equipment worldwide.
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STP (SEGMENTATION, TARGETING AND POSITIONING)

Marketing choices are crucial components of a strategic marketing process. At this stage of
planning, decisions are made in order to indicate the direction of the marketing mix not to mention
the way products are going to be perceived in the market place. These marketing choises group
consumers together based on common needs with the ultimate goal to affect the buying decisions
of the target customers for these products, which stands for segmenting, targeting and positioning
strategy. In other words, STP is a marketing signification that associates the way to evaluate and
choose a target market for specific product or service. Considering the factors related to this topic,
the question of what specific consequences arise when addressing this topic must be elaborated.
This research is particularly outstanding for the reader because it will analyze the STP strategy of
a well-known company that produces sports equipment, which is Nike.
The perception of mass marketing and behave all customers the same way, has led to the
comprehension of the unique needs of consumer groups, that has to be segmented for greatest
sales opportunities. In particular, all sports fans differentiate. For instance, a sports company, such
Nike, could not market the extreme sports equipment to elder people. As Michael Porter (1998)
mentions, “You can’t be all things to all people”, explaining that firms, which specialize in
meeting needs of consumers, tends to be more effective. However, if the first marketing choice is
market segmentation, how does Nike group consumers based on common needs?

Segmentation

In the customary way, there are six interactive bases for market segmentation, which are
demographic variables, psychographic profile, behavioral style, geographic variables,
socioeconomic variables and benefits sought. While Nike has a general targeted segment “all
athletes”, nevertheless precisely defines various market segments (Shank and Lyberger, 2014).
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Demographic

Demographic segmentation is the most widely used technique from Nike because the
characteristics are easy to identify and measured, are available from many sources, such as the
government population count and are associated to sport attitudes such as attending a game or
watching sports. Based on the demographic segmentation, Nike targets individuals according to
their gender, age and life cycle stage. First and most important to be told is that Nike targets
customers between 11-45 years old, with greater weight to teens in order to build long-term loyal
consumers. For instance, in 2014 before the world Cup, Nike created a promotional campaign that
glorified great football athletes playing football with teenagers inspiring them to become like their
idols.

Furthermore, gender is another significant factor that Nike uses to attract its audience. Despite the
fact that its male purchasing audience is higher, recently Nike has invested heavily in females.
Specifically, Nike has developed a strategic approach to targeting Women by launching a variety
of female sports lines where revenues are expected to
grow significantly in the next years.
It must be stressed that Nike does not segment the
marketplace based on ethnic background including
nationality, race and religion in order to group the
consumers. Respectively, does not take into account
the life cycle to segment the market (Statista, 2017).
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Psychographic

Nike utilizes psychographic segmentation to target customers based on lifestyle, personality,

activities and interests. Specifically, Nike aims to active individuals who take pleasure in sports,
gym regularly, are athletes and passionate with sports, which tend to be part of their life.
Nike does something exceptional. Associates individuals’ lifestyle with their activities, interests
and behavior creating the unique “feeling” and as a result they buy similar products. Nike applies
sports-centric strategy motivating, inspiring and connecting emotionally all athletes with
its products. Nike’s statement “To bring inspiration and innovation to every athlete in the world”
not to mention “Run with me” encourages all kind of athletes to follow with loyalty the firm with
the sense that they belong to the same family.
Apart from the sports consumers, Nike approaches a crowd that loves fashion. There are
categories of people who are passionate about the brands and buy company’s products just to
follow fashion trends. These individuals are convinced that Nike’s products are not ordinary
athletic shoes but a fashion lifestyle (Deng, 2009).

Behavioral

On the one hand, Nike focuses on the way its products make consumers feel. Clearly, the company
follows the direction “If you have a body you are an athlete” and “If you are an athlete, Nike’s
products make you feel athletic”. On the other hand , Nike builds customers’ engagement by
providing them unique quality as well as various and innovative products to choose in order them
to purchase more frequently company’s products. Furthermore, Nike gives its consumers the
opportunity to share their experiences with their friends and family including the review products
on the internet, which spread to social networks having a huge effect to purchasing behavior of the
customers (Bilotti, 2011).
.
Geographic

Geographic is simple, yet powerful segmentation basis. Nike segments market based on world and
country region, city and popularity density in different way. In particular, Nike promotes different
campaigns in the United States of America, in Europe, in Asia, in Australia as well as in Africa
because sports differentiate by region, even cities. For instance, all the commercials in the United
States are around football and baseball, while in Europe, advertisements refer to soccer.
Concerning cities segmentation and their fans in New Delhi, the capital of India, Nike promotes
equipment for cricket while in England and Sidney for rugby. Based on Nike’s statistics, largest
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market places are North America as well as Western Europe and China where the company
segments more the market focusing on urban areas with purchase densities. Finally yet
importantly, Nike does not segment the market based on climatic conditions even though
the company is ecologically conscious (Shank and Lyberger, 2014).

Socioeconomic

Commonly, income, education and occupation are interrelated due to the fact that people with
higher educational level enjoy higher income as well as most respective status. Thus, Nike
segments market in lower, upper middle and upper class, where in the last group, the company
provides sports equipment in limited editions, which could be bought only from individuals with
high income (Bilotti, 2011).

Benefits

Benefits segmentation is considered the underlying factor where every

purchase satisfies a need. Nike focuses on “benefits sought” to segment market place. Company’s
products strive to meet elite athletes ‘as well as professional and casual performers’ needs. These
needs that consumers looking forward to fulfill through Nike’s products purchases are the quality,
the duration, the comfort, the style, the innovation, the price and the brand awareness. Thus, Nike
segments the market in three core bases concerning benefits, which are the Utility in order
consumers to accomplish high performance, the Style where individuals follow the fashion brand
statement and the Technology bases, which gives customers the opportunity to own innovative
shoes such as Air Max.
Although each type of segment defines groups of customers with similar needs, it is ordinary
implementation in marketing to combine segmentation variables, such as geodemographic
segmentation, for more effective approach in certain circumstances (Ali Mahdi et al, 2015)
.

Targeting

Target marketing is the next step of segmentation process where the company systematically
chooses the segments that will allow to most effective and efficiently achieve its goals. Nike
evaluates its target market based on size, reachability, measurability and behavioral variables. In
particular, Nike has niche market to serve. The company targets professional athletes and sporty
individuals providing them specialized and innovative products. Furthermore, all products are
reachable, even online, with the unique opportunity Nike’s consumers to create their own custom
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designed shoes, which makes the brand more identifiable and remarkable in differentiation to
other footwear companies. It should be noted that Nike also targets the marketplace through
psychological tactics by sponsoring great athletes with tremendous achievements and victories.
This tactic intimately links company’s products with triumph (Shank and Lyberger, 2014).
It is for granted that sustainable innovation is the trigger for revolutionizing the way the company
does business and manufactures its sports equipment. For that reason, Nike applies aggressive
marketing strategies in parallel with the marketing mix the company develops in order to make
further known its target consumers company’s products, enchasing its uniqueness and exclusivity
(About Nike, 2018).

Positioning

The final step of STP concerning the market decisions is the positioning. Nike has positioned its
brand as the market leader of sports equipment widely, providing high quality and innovative
technology. Furthermore, Nike has convinced its consumers that is an ambitious and victorious
company through the swoosh together with the slogan "Just Do It" as well as through the
promotional activities that connect Nike’s brand with magnificent achievements of prominent
athletes. It must be stressed that Nike over the years has shifted from product focus to attitude.
Nike “speaks” in athletes hearts through unique & momentous feelings, which makes the company
exceptional compared to others. Above all, Nike has established its place in fashion, where
company's products define certain groups' lifestyle (Chang, 2014).
As it seems, positioning is based on the perception or image that Nike expands and maintains
concerning its sports equipment. With this in mind, the company develops perceptual maps
through marketing research techniques in order to interpret its products position in relation to
competition.
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NEW CAMPAIGN
NIKE's wholesale market would continue constantly and be the key driver for deal
development, for retail accomplices at present foreseen that might representable more than
80 percent of the organization's general business by 2015. Nike has geographic chances
that it would make its expansion arrangements to the whole six developed geographic areas
as North America, Western Europe, and Japan by driving mid-single-digit development and
by focusing on an extra $3.0-3.5 billion from claiming twelve-month for financial 2015.

Additionally, Nike arrangements will contribute forceful over its creating business
geographies in China, national & eastern Europe, and developing Markets) focusing on low
double-digit development with an extra $3.0-3.5 billion from claiming twelve-month income
by the limit of monetary 2015 (Peters, 2009). For making its customers satisfied and made
them aware, Nike portrayed courses of action that will open harshly 250-300 new NIKE-
marked saves overall all around the World in five years long time and to lift the customers
knowledge and to increase its development through new technologies. And in this regard,
NIKE anticipates that this course of action would provide additional $2.2-2.6 billion by 2015.
For strengthen its overall retail vicinity, NIKE, proclaimed plans that set $500-600 million
money for the five year considerable length of time that will add to regulate the customer
business and make wholesale and retail effectiveness. (Nike Inc, 2016)

In future, it is estimated that Nike will increase its prices due to which it can positively impact and increase the
profitability from its products. (shahriar, 2015) 


A. In terms of long-term financial objectives, NIKE has following future orientation that would assist
development and expansion by 2015(About Nike, n.d.)
• Increment in profit by 10% annually
• Increment in Earnings Per Share growth annually
• Increasing 25% of ROI (Return on Invested Capital)
• Increasing dividends by 25-35%

SITUATION ANALYSIS

Market Overview

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Nike incorporation is the words leading sports footwear and Apparel Company. The main Nike
brand is mostly targeted towards the athletes, selling related products such as shoes, sporting
equipment’s and clothes. Over the past five years the Athlete and sporting goods manufacturing
industry has expected to slow growth according to the modest growth in the sports participation
rate. The Demand for sporting goods is increasing over the period. In the next five years to 2020
consumer will becomes more health conscious, which will estimate demand for Athlete
equipment’s. This Athlete industry is highly fragmented and characterized by the high level of
competition.
While the top players of athlete industry are expected to comprise less 20.0% of total industry
revenue in 2015 like one of the player is Nike which uses strong brand awareness among
consumers to gain market share. Also few sporting goods manufacturer have vertically integrated
operations, which includes the marketing, manufacturing, designing and retailing processes in
their operations. Nike is using the vertical operations to examine the consumer trends and to
implement new technologies. (Athletic & Sporting Goods Manufacturing in the US: Market
Research Report, 2015)
In today’s world market of sport goods is increasing and this market is highly growing in U.S. as
compared to other countries and it has been projected more than 63 billion in U.S in 2014.
Consumers purchase different products such as athletic footwear, licensed sports merchandise
athletic apparel, exercise equipment but they are not included in recreational transportation. Many
of the products such as sporting goods are sold through online channels over the internet and have
highest growth in market share of distribution channels. Despite of having online channels people
more over prefer to shop in stores for sport goods in 2013. Worldwide Nike and Adidas are also
having greatest revenue as well as market leaders in sporting goods industry and manufacturing
with 27.8 and 20 billion U.S dollars respectively. (Sporting Goods Industry - Statistics & Facts,
2014)

Market Trends and Evolution

Nike’s initial product advertising strategy of using professional athletes for increasing demand was
through word of mouth and also provides the good publicity.Nike changes its target market from
teenagers to younger consumers due to intense competition with Adidas and Reebok and also to
expand its target market.
During the time of recession consumers was willing to pay on that brand because Nike having
superior quality, style and reliability. Nike generates the higher revenue from its competitors
because of its Slogan “Just Do It” and strong product. (Deng, 2009)It also introduces the digital
sports and e-commerce in its recent years due to changes in technology trends.
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It introduces the Nike+ running sensor in collaboration with Apple Inc. and other products like
fuel brand personalize the hi- tech experience for the customers. (Soni, 2014)
Nike has been launched its technologically advance shoe models from time to time through
innovative advertisements , celebrity endorsements , successful association and event
sponsorships.Company still faces many challenges in this changing fashion trends and its sale is
falling in the shoes category and increased competition. After these changes though it is trying its
best to create the good position in the market and make products according to fashion trends (Aid,
2005).

Consumer Behavior

Nike products are already well-known brands through the world, with effective advertisements
and word of mouth, since customers tend to share their positive views with their friends and
family. After buying this Nike brand, consumers learn, and experience the quality and see
themselves that they got what they expected. Consumers’ formed attitudes about the brand are
buying a products that are comfortable, makes you feel good, and also look cool in it and Nike
satisfy them all. (Ugur)
The public feels that Nike over charge its consumers and make its profits but they should decrease
the prices which can attract the consumers to buy its products. Today, everybody wants the
products which are comfortable to wear, protect our feet and keep away from injury without
higher quality shoes it can harm our feet and cause injured. Sometimes Nike can affect consumers
to buy the product. Consumers can be influenced by three perspectives cultural, social and
personal factors. (Consumer behaviour in relation to premium products, 2015).
Young athletes can be the target market of Nike in the future. With its brand it has the powerful
position of influence with young people by launching the digital platform for engaging the
consumers to join it so that it may make better relationship with consumers (Kearney, 2009)
If any company creates the good relationship with its consumers, so they must find out the needs
and wants of the consumers. As Nike has done this by providing the good customer service and
even when customer face any type of problem so they can send email to the Nike for get rid from
their problem related purchasing, Nike would solve their problems within working days and
customers can solve their problems with help of websites and sending them emails. So this has
made the consumers to have positive image of Nike in their minds which can increase their
purchasing decisions and behavior towards the Nike products. (The consumer decicion process of
Nike, 2015).
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 The 5M’s of NIKE advertising

MISSION

Marketing manager must be clear on the company’s purpose for advertising. “Increase in sales
figure” will be a very broad and to a certain context a vague objective. According to Mr. Philip
Kotler, a renowned authority in this field, there can be three possible objectives behind
advertising: Information- when a new product is launched, the purpose should only be to inform
people about the product Persuasion- Persuading people to actually go out and buy the product.
This objective is of paramount importance because of cutthroat competition. Any advertisement
must be persuasive in nature, attracting consumers towards the brand Reminder: This objective is
relevant for well-established

MONEY

After the objective has been decided upon, the next step is to decide upon the budget. There are
several methods for deciding on the advertising budget. The most common among them is the
percentage of sales method. Under this method, a certain percentage of sales are allotted for
advertising expenditure. Though this method is used widely, there are some problems with this
method. The first issue is what percentage the company should take? Even if a company somehow
decides a percentage figure, this would mean increase in advertising expenditure when sales are up
and less spending when sales are down. This in some ways is quite paradoxical, because logically
the reverse should happen. The company needs to spend more on advertising when sales are down.
But this method uses circular reasoning and views sales as cause for promotion. In fact, sales are a
result of promotion. Another method suggests that a company should spend as much as its
competitors are spending. This method claims that it would prevent promotional wars. But then
like each individual each company is also different. It may not make any sense in spending like
your competitor because competitor might be on a different footing.

MESSAGE

 As a common experience, we love some advertisements, while the others just irritate us. An
appealing advertising will win consumers and will consequently induce them to purchase the
product. On the other hand, irritating advertising will create an adverse effect. This is why many
companies hand over this task to advertising agencies, which has professionals to make impact -
making ads. The message that company wants to convey should be put in a manner that will
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arouse interest. Moreover, it should convincingly highlight upon the products USP. What is said is
definitely important but what is more important is how it is said. The tone should be appealing.
Words used should be catchy and retentive. These days both electronic as well as print media are
overflowing with ads. People have no time to read or see them, and therefore they have to be
attractive enough to target audience’s attention. This is the job of message.

MEDIA

Selecting the proper media vehicle for communicating the message goes a long way in the success
of any kind of advertising2. Each media vehicle has its positive and negative points with a
different reach and impact. Therefore, a company has to be very clear about its target audience.
Choices available are Internet, TV, newspapers, magazines, direct mails, radio and hoardings.
Everyone of this has its advantages and disadvantages. Companies often go in for a media mix, i.e.
they select more than one of the available choices. Timing is of great significance here. Many
industries face seasonal fluctuations and pass through cycles. Therefore, advertising should be
timed that way to take care of these fluctuations. A limited budget should be prudently allotted
among these media vehicles.

MEASUREMENT

It is necessary that effectiveness of any advertising be judged. Only on the basis of this
measurement, can further decisions regarding continuation or termination of the particular
advertising campaign be taken. An ad can be judged on the basis of its reach and impact on sales.
Good advertising is one that generates brand awareness and consequently brand preference. How
much of sales can be attributed to advertising, is a difficult question to answer. Sales are
influenced by many factors besides advertising. It is not easy to isolate the impact of advertising
on sales.
Nonetheless there are some advanced statistical techniques available that can be used with the help
of computer software’s like SPSS. Thus a systematic and balanced understanding of these five Ms
of advertising will help in designing better advertising campaigns that create a favorable impact on
the target audience.
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4C Marketing Mix of NIKE

Customer/Consumer Value

Your marketing campaigns must focus on bringing value to your consumers/customers. Nike has
maintained strong and unique brand identification. When it comes to athletic or sports wears or
gears, Nike become the first one to meet the need and wants of the customer.

Cost

The price of a product or service is the amount you set for the item/s the customers/consumers will
get from your business. This is from the business’s point of view.
Shifting to the perspective of your customers/consumers, the price becomes the cost. It represents
the amount your customers/consumers will pay for your product(s) or service(s). Nike products
are of different price range which match the value expectation of the customer compared to price.

Convenience

These days, people decide in favor of buying based on convenience. Thus, you will notice that
practically all businesses have started to create their online presence. In addition to online sales,
Nike has maintained strategic alliance with vendors likeamazon, Ali Baba to deliver its product to
the end customer with utmost convenience.

Communication

The final element in marketing mix 4C’s is communication. With this marketing mix, you do not
“promote” your business; rather, you communicate value to your customers/consumers.You give
your customers/consumers meaningful content to engage them.

You do not just make your target audience aware of your business; you build rapport and
relationship with them.
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MARKETING STRATEGY

Objective
• To increase the 3-4% profitability in each of its product lines (i.e. increasing sales growth
by 10% annually)
• To Increase marketing communication tactics
• To produce quality and low cost products
• To meet the demands and requirements of target market (sneakers for young and old age
consumers)
• To make sustainable development of product worldwide(increasing the market share in
middle east)
• To apply continuous marketing strategies to broaden its product range (increasing aerobic
products) 


STP (Segmentation, Targeting and Positioning)

• MARKET SEGMENTATION 


It has following segmentation to create consumers groups to target: 


Demographics segmentation: Nike has segmented an Age and gender group that is it has
such products that serve male and female that has age range of 15-55. 


Psychographics and behavioral segmentation: Nike has this segmentation to answer that
why consumers need its products and what the consumers have interest and purchasing
habits. So regarding this Nike segments its market which includes: 


• Sports or athletic oriented 


• Active lifestyle(interest in fitness and exercise for recreation) 


Geographic segmentation: On the basis of this, Nike has segmentation to serve its target
customers all over the world. It has major markets in USA, Asia-pacific Europe, Africa but
it has continuous objective to cater markets in other countries as well like North-America,
China, Japan, and Middle-East etc. (Nike Inc, 2016) 

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• TARGETING

As for market segmentation, Nike has niche market to serve that is Nike focuses and targets
athlete or sportsperson segment and provides required products to them as footwear and apparel
products, which have quite specific and unique feature as compared to other footwear products.
Following are the some target strategies of Nike:
Its target strategies include aggressive marketing to make aware its target consumers about its
product and even Nike make its target consumers enable to get their desired products through
customization process as own signature shoe is offered to athlete that is it enabled Michael Jordan
to have his name Jordan shoes.
Apart from this, its targeting strategies include sponsorship of its products through sports team or
celebrities. It has objective of styling its product through psychological tactics on target market by
linking triumph with apparel that is products are viewed as victory when sponsorship is done by
athlete celebrities (Marketing strategy of Nike)
Another targeting strategy is Nike cross training established in 1989 which caters all the athlete
participants all over the world and trains different sport activities which has also become way to
make its target market satisfied.

• MARKET POSITIONING

Nike has positioned itself in the mind of its target customers as a leader in sports goods. It has
made such products that satisfy its niche market with all products related to sports. Its slogan ‘Just
do it’ has made an appeal to target customers to buy the product with sense of inspiration and
confidence and which has made it major competitor in athlete industry.
Its positioning statement is
‘For every serious athlete Nike provides perfect shoe or sports products that gives confidence for
every sport activity’

Media Mix strategy

Nike has the leading role in marketing and has strongest marketing mix. In particular it depends on
Pull strategy; it has established it’s seizing against the big competitors like Reebok and Adidas
(Marketing mix of Nike)

• PRODUCT

NIKE

Nike offers a wide range of products including shoes, apparel and equipment. Currently these are
top selling product categories, all these products clothing and equipment specialized for sports
products (Marketing mix of Nike).
The first product of Nike is running shoes. Apart from this, it offers currently in athletics, baseball,
ice hockey, tennis, soccer, lacrosse, basketball products and has wide range of sports products such
as cricket shoes, shirts, and shorts.

Nike NYX and Nike SB shoes offered for the first time in 1987. In 2008, Nike Air Jordan XX3,
basketball shoe was introduced with the high performance, designed for the environment (4P of
Nike).
Nike also offers products for tennis, golf, skateboarding, association football, baseball, football,
cycling, volleyball, wrestling, cheerleading, aquatic activities, and sells shoes for racing and other
sports and outdoor activities as recreational uses.
Recent products:

Nike has recently introduced cricket shoes are designed to be lighter 30% than its rivals i.e. Air
Zoom Yorker and Nike Air Max designed for the latest addition to its line skate Nike 6.0.

Nike recently shoe tracks the performance of a corridor on the radio device that connects to the
iPod Nano to produce the Nike + Apple Inc. with the team, while the product generates useful
statistics and enables the users to get value from product (4P of Nike).
Beside this, NIKEiD is a sub brand which allows the customers to design their customized Nike
footwear through offering a selection of shoes, what customers want; different colors and fabrics;
they can choose whatever area of the shoes they want. This customization allows customers to
create different designs in large quantities. Customers do not have to design shoes themselves but
have designs that customers can buy a selection of pre made designs. NIKEiD’s customization
process and offers are available in Nike’s website (NikeID).

• PRICING

The type of products to be marketed will affect the price of a product. Nike’s pricing strategy is
considered to be competitive than other retailer shoe. The pricing is based on the basis of target
customers as a premium segment. Nike brand commands a high premium. Pricing strategy makes
use of vertical integration in which they participants at differing channel levels or take role in
operations level more than one channels to control cost and impact product pricing (Marketing
mix of Nike)
NIKE

Nike has become so well known that most people will pay more dollar for quality products for this
product. That is why Nike uses Cost Based/Value Based Pricing other than its competitors which
offer low prices. The target customers of Nike are those who are niche and have almost have the
financial capability of the product, such as the use of expensive clothes is a status symbol. This
makes the customer want to continue to buy the product of Nike. Without a high equity brand, like
Nike, however, this would not be possible rise in prices (Blogspot).
Pricing strategy currently used by Nike is like, it may continue to use it. Nike's current customers
currently specify what they would be willing to pay the cost of the product to ensure the quality
and service they receive from Nike. On the basis of the services offered by Nike, to find that they
can compare the quality at a reasonable price from competitor service and prices are fairly charged
(Nike Marketing Plan).

• PLACE/DISTRIBUTION

Nike shoes are conceded by other multi brand stores and exclusive Nike stores worldwide. Nike
has about 20,000 retail accounts in the US and sells its products in about 200 countries worldwide.
In the international market, independent distributors, licenses and subsidies sell Nike products.
The company has manufacturing facilities worldwide and in Asia, customer service and other
operational units (Nike Marketing Mix).
Nike long term plans to open more stores and franchise to reach target customers and to expand
the maximum buyers.
In Nike Town store, shops sell sheep showmanship interested enough to do whatever. Nike town
stores can take the entire city blocks and customers can feel like future oriented. These include
basic shoe stores made during each boasting chandeliers Nike product imaginable. Nike town
product offers a complete experience. This store has all the products, but will not stay there again
create a memorable experience for the customer to bring back again (Nike 4PS).
In the international market, Nike has independent distributors, licenses and subsidiaries which sell
its products. To reduce the cost of Nike’s products, it has outsourcing strategy with China, from
developing countries in Asia, such as Vietnam. And to do more business online because Nike
tradition is as spending on online advertising as compared to advertising media, e- commerce and
online marketing contributions are planned to expanded appropriate channels (Nike Marketing
Plan).
Nike has some specific distribution outlets and use them for distribution of its products, following
are the major ones:
• Nike town shop: In big cities of countries, Nike’s outlets are there to serve customers with
products.
NIKE

• Flagship stores: Nike has contracted with retail stores that has label of flagship of Nike
which serve with high volume of Nike’s products to consumers
• Nikeid: It is a Nike’s online store that is website which serves the customers of all over the
world with customization services.
• Big retail discount stores: The big stores of country also serve with some high demand Nike
products for the target customers. 

All these have availability of Nike’s products; consumers who want Nike’s products can get
required products from these distribution methods of Nike.

• PROMOTION
The marketing communications mix is effective because Nike attracts new customers and creates
balance between keeping existing customers (nike marketing communications-mix). 

This is one of the strengths of Nike. Nike has introduced its offers to almost any environment
known to man and is extremely sensitive. Print advertisement in general, simple but send a strong
message. There is virtually no advertising that appears on their price and Nike are almost always
uses a popular athlete to promote its product. The Advertisement exceeds the expectations of
everyone with these shoes and they are able to demonstrate on the rise for consumers (nike 4p). 

Promotion of Nike is best; Nike uses Commercials, celebrities or billboards as ways to make its
target customer aware about its offers. But Nike needs other ways for promotion as to encourage
more new products. Then it may use the maxi environment and can create brand awareness.
Marketing implication is that Nike is a marketing strategy for online ecosystem. This means that
Nike is preparing to cut for television and print advertising, and increasing to the social media
(Nike Marketing Plan).
Nike also sponsors events such as Hoop It Up and The Golden West Invitational. Nike’s brand
images, the Nike name and the trademark swoosh; make it one of the most recognizable brands in
the world. Nike’s brand power is one reason for its high revenues and makes other companies to
get sponsorship from it.
Nike runs advertising in newspapers and has benefit of creating strategic alliances.

Communication Mix strategy

§ Advertising

In the advertising, Nike's own target is to achieve the greatest possible impact on large populations
NIKE

of the target audience. These ads are usually expensive. However, successfully applied a strong
brand image of Nike products can reap the rewards and high demand.

Nike uses celebrities represent product to the client or ideal user. Extremely popular personalities
such as professional athletes used as offering the Nike’s products. Target customers are watching
their favorite celebrities use the company's products. As a result, customers are motivated to
imitate the behavior of these celebrities. Through the use of ad figure known marketing
communication mix, Nike is promoting the company's products to customers how to motivate
your choice to imitate the famous Celebrities. (Nike Marketing Communication).

Brazilian football team, like Nike especially Ronaldo and Roberto Carlos are as brand
ambassadors of Nike; LeBron James, Tiger Woods and Lance Armstrong cycling golf are number
of famous athletes and used by Nike as celebrity endorsement strategy to promote its products.

Nike focuses on other countries’ sportsman as Brand ambassador for making its all target
customers of all countries aware about its offers and currently Indian football captain Baichung
Bhutia is as Nike new brand ambassador (marketing-mix-nike).

§ Personal Selling
For this IMC strategy, Nike has in stores personal sales efforts. The stores offer staff’s help for
customers to learn more about the company's products and to purchase these products. In some
cases, sales staff helps customers to find the right products to promote the Nike Company through
personalized service.
The customer experience has been developed by staff trained to help and persuade sales.
Customers feel good about buying Nike products. They also sell these products which customers
feel as having better decisions. Therefore, the combination of Nike’s marketing communication
while promoting the company's products, improves customer experience and use personal selling
to build relationships with customers (Nike marketing communications-mix).

§ Direct Marketing
Nike uses direct marketing to promote new products to the target market. These new products are
usually advertised heavily. However, to make a bigger impact, the firm uses salespeople to
approach certain organizations or individuals in target market segments. As the Nike approaches
sports organizations in colleges to promote its products. Nike’s marketing communications mix
uses direct marketing to establish stronger relations with target customers and motivate them to
purchase the company’s products.
It uses direct marketing to introduce new products to the target market. These new products are
usually heavy advertising. However for having larger impact, the company may use some of the
NIKE

organizations or individuals close to the seller in the target market segment which can direct
promote the product to customers. (Nike marketing communications-mix).

§ Sales Promotions

Nike’s sales promotions include coupons and special offers to customers which it target.
The characteristics of these products business and its benefits can be as discount coupons
can make customers to save and by using special offers new things are offered to customers,
showing sales promotions enable customers to be motivated. Marketing communication mix uses
sales promotions whenever Nike want to attract new customers to drive demand, since they would
be motivated to buy the products of Nike on the basis of the perceived benefits (nike marketing
communications-mix).

§ Public Relations
Nike rarely used public relations as marketing communication mix or IMC strategy. The company
depends on social problems such as the use of workshops and green technology that use public
relations to cope. In some cases, Nike may use similar charity events and public relations activities
as a sponsor. This is the Nike communication mix of existing and potential customers marketing,
so they have a better perception of the brand, the brand uses to solve problems and promote public
relations (Nike marketing communications-mix).

§ Social Media

Nike is one of the biggest brands in the world and therefore has been a big surprise followed on
social media. Expectations of getting this IMC strategy are there but the budget of social content is
high.

As a sports brand, Nike may expand its social media to creating a buzz which is important.
Especially for new technology based or current products of Nike it may increase its social media
IMC strategy to get in line with customers way of receiving promotions. As for promotion of new
series of Nike 6.0; it should use social media to promote their dancing shoes and parkour. (case-
study nike)

Nike has recently use some social media communication mix for its promotion of products where
customers are allowed to take advantage of the campaign, by taking action in social site to share
photos of themselves call this demographic youth to demonstrate their sports skills by uploading
them, where the Winners will receive $ 500 in cash or a scholarship.
NIKE

Conclusion & Recommendations

In conclusion, it would be wise for business world to consider these factors when addressing this
issue. In my opinion, Nike is the leader in sports equipment creating a fortress in the sports market
that is difficult to conquer. The company excels because is the first that brought innovation to
sports shoes through the R & D department. At the same time, Nike constantly attracts the best
athletes from all sports and signs contracts that bring enormous profitability to the business by
associating the products with triumph and victory, creating the consumers, the need to acquire the
product. Clearly, the company has applied the STP strategy correctly, as well as having understood
the needs of consumers affects their buying decisions with a tremendous success. I feel very
strongly that this topic will be discussed and researched further in order to help marketing plans be
more productive as well as innovative.

It is seen from market and company’s analysis that Nike has the potential to execute its objectives
and can offer new products and expand its share so by looking to Nike’s overall strategies and
objectives the following points are recommended:
• It should broaden its product range as providing aerobics or parkour products
• It should increase its marketing communication ways i.e. using of social media
• It can have collaboration with Apple for incorporating technology in terms of gamepads 

featuring soccer, Golf etc.
• It may have proper management in controlling the labor issues.
• It may include online video training sessions for athletes celebrities and as to increase its 

product awareness to them
• Nike could have merger and acquisition with other companies to expand its business and 

to implement its Global growth strategy of 2015 to attain sustainable, long term growth
across its global portfolio of business. 

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