Nike is well known brand for the apparels and athletic shoes and is the world’s leading supplier of sports related products in specific. The major portion of the athletic shoe and accessory market is withheld by the company by owning the share of 47 %. The initial name for the country at the time of its establishment was Blue Ribbon; however it converted to Nike in 1978. The success story of Nike is because of its innovative design, wise marketing strategies and production.
Statement of the Marketing Goal
The main goal around which the marketing strategy of the company spins is to lead the world’s sports industry and to become pilot producer of fitness products around the globe.
Nike SWOT Analysis
• The company has commendable competitive tendencies.
• The wide range of product design with a wide innovations being introduced time to time.
• The company Logo enhances the recognition of the brand world wide.
• The quality standards are accompanied with affordable prices.
• The company’s leading articles are present in all the leading markets around the globe.
• Company while addressing the sports goods at it main focus is unable to adjoin diversity to its products.
• The company’s retailers are not specified making the retailers sensitive about the pricing issue of the articles.
• Sizes are also limited according those size ranges that experiences maximum sales.
• The United State’s economic backdrop will positively affect the company’ industry-wide growth as per sales of sports goods and apparel.
• The Universal trends of sports participation and exercising have increased the trend of making the casual apparels part of the wardrobe.
• The fierce competition among the leading industries makes them sensitive about their niche appraising the standards.
• Availability of leather at cut costs makes the price adjustment competitive.
• The e-marketing and merchandising is responsible for profit increase as the company dealings are direct and middle distributor is exempted from the dealings.
• The differentiating line has become necessary for the companies to be marked as the sports good and apparel industry has reached the saturation level with maturity hosting more or less similar product line.
• The United States economical set back that has resulted from inflation would affect the spending percentage of the customers inversely.
• The lack in innovation may lead the targeted customers to roam about the market for the unconventional products.
Who are competitors?
The major competitors that are giving a strong edge competition to Nike includes;
• Reebok (toughest competitor to Nike)
• New Balance
Marketing Objectives for the Project
The company’s marketing objectives are defined over two divisions that are long term objectives and short term objectives. Long term objectives includes enhancement of market share among the rising economies with a special focus to Asia Pacific region in the span of 5 years with annual share rise between 25 to 30%. The short term objective focuses on up to 275 of increase in market share for the running fiscal year.
The main goals that the company aims is to be leading manufacturer of sports goods and apparels by penetration the Japanese manufactured brand in United States specifically and around the globe generally.
Strategic Objectives for Every Primary Objective
• Provision of bets quality and balanced priced shoes range to the customers around the world with a special focus on America.
• Making the product availability possible in all possible marketable stations.
• To focus all types of customer’s including old aged, Young men and women and children as well.
• Attainment of sustainability in product innovation and novelty to assure the existence of the company along many generations.
Target Market Segments
The company is targeting the groups of customers separately; as the target market of the company is huge. The company targets at fulfilling the peoples expectations that are belonging to different age groups. The separate focus on different groups makes it possible for the company to generate maximum revenues.
Nike Marketing Mix
• The main categories of the products offered by the company include apparels and athletic footwear.
• The sports categories in which the company is excelling includes Basketball, Tennis, Running, Cross-training, Outdoor activities, Aquatic activities, recreational use, Golf, Football, cheerleading, Volley ball, Bicycling, wrestling, Soccer and Baseball.
• The innovative sports products of the company include timepieces, bats, sport balls, skates and eyewear etc.
• Variable product pricing range mostly between 75 to 150 dollars, depending upon the article being purchased.
• The competitive pricing strategy is being followed by the company.
• More than 100 countries are targeted by the company.
• The major selling stations are based in America, Asia pacific and Europe with almost 20,000 retailers in America.
• Beside company owned stores, different malls showcase the Nuke products.
• They have more than 20,000 retailers in United States and also in other 200 countries.
• The official website of the company serves for its promotion.
• The company’s major promotional source is electronic media.
• Famous athletes like Ronaldo are serving as the brand ambassador of the company adding to it promotional activity.
1. Market Penetration
The market penetration is strategically designed through global expansion and making the availability of its innovative product possible worldwide. The market penetration is done by maximizing the product range at the selling points of either the company or the retailers.
2. Market Development
The company initially was supplier for the Japanese entrepreneur. Major shares of the market were earned in the 1980’s. The product range successively increased to address maximum customers. The development led to that extent that company has been owning the huge revenue of more than $20 billion.
3. Diversification Strategy
Monitoring and Control
The monitoring and control of the company is driven in to the hand of NGO’s that claim to maintain the company’s monitoring and control properly. Reports are generated accordingly at te end of each monitoring and control session.
• The community stores has been the one of the sink of company’s budget and received up to $1 billion for the successive years.
• The investment planned for the fiscal year 2011 is $315.
• They plan to invest at least 315 million U.S dollars by 2011.
• Another budget sink would be dealings with 700 factories to extend the production capacity of the company.
• Official website. Nike.com. Retrieved on August 17, 2011.
• Sage, Alexandria (June 26, 2008). “Nike profit up but shares tumble on U.S. concerns”. Reuters.
• “Nike launches cricket shoe Air Zoom Yorker”.( September 2, 2006). The Hindu Business Line.
• Brettman, Allan (June 22, 2011). “Nike courts controversy, publicity with drug-themed skater shirts”. The Oregonian.
• Nikebiz: Company Overview: History: 1960s, Nike, Inc., Retrieved on August, 2011.
• “Kasky v. Nike: Just the Facts”. Reclaim Democracy.org.
• http://www.articlealley.com/article_1585263_15.html: Marketing strategy of Nike, Retrieved on August 17, 2011