Nike is a big name in the shoe industry and has been for many years. It’s hard to go anywhere without seeing their nike symbol, which is why they’re one of the top brands in the world. They have had great success with recent strategic plans and will continue to do so as long as they keep up their current strategies.
The marketing aims are: Increase Customer Retention, Enhance E-Commerce Sales, and Improve Community Involvement. The first objective focuses on executing various promotional methods such as emotional marketing and sponsoring different professional athletes in order to achieve a repeat sales rate of 60%. Maintaining Nike’s market leadership is crucial for its competitive advantage.
Prices start at $12
Prices start at $11
Prices start at $12
Nike has a strong interest in expanding online sales. Last year, we were able to expand eCommerce sales by a profitable 51%. Our second objective is to maintain this trend by increasing internet sales by 50% each year for the next four years. We feel that achieving this goal will help Nike cement its position as a leader in the online athletic industry.
Nike’s main goals for fashionable women are as follows: drive the athleisure movement, increase marketing, and launch the #BetterForIt social media campaign. We must concentrate on growing our portfolio for the female target market to capitalize on the athleisure trend. Athleisure is already a significant portion of Nike’s revenue, and we need to acknowledge that women are driving this trend.
The athletic apparel market, which is focused on performance rather than fashion, is already being dominated by Under Armour and Lululemon. We need to focus on our athletic technologies while also maintaining a level of comfort and trendiness. The number of products in the portfolio must be expanded if women are not aware that it has been done so. Nike will have to increase marketing spending, particularly with this particular target audience in mind. One aspect of these advertising efforts is the #BetterForIt campaign.
Nike will need to showcase the elements of the business that set us apart as runners are extremely brand loyal. Nike has a 60% market share, though. You mentioned that you think we can improve in this area, so we’ll focus on increasing innovation and development for our running shoes while also enhancing brand reputation.
Nike has a long history in the running sector. We just released the electronically linked running shoes, much like those in the film Back to the Future. We must continue to push boundaries and explore what new technologies may achieve in terms of revolutionizing sports. The second area for this market is to increase our presence at specialty running shops and on third-party eCommerce websites.
We need to make sure Nike is known and heard in this market in order to succeed with them. Runners who specialized in a certain distance were found to visit specialty running stores more frequently than they did purchase anything on the internet.
Nike, Inc. is a multinational firm founded in 1964. Phil Knight and Bill Bowerman launched the business known as Blue Ribbon Sports in 1971. In 1971, it changed its name to Nike Incorporation. The headquarters of Nike, Inc., located in Beaverton, Oregon, has been operational since its inception. Since its founding, Nike, Inc. has successfully entered the apparel and accessories market.
The corporation designs, develops, and produces apparel, footwear, and accessory items. Its products are made by independent contractors throughout the world. Nike’s primary purpose is to create athletic apparel. However, a large portion of its items are worn for pleasure and comfort (Nike Incorporation, 2013).
Nike, Inc. is the most well-known brand in the world when it comes to sports shoes and sports equipment. The company sells its items through independent dealers, retail accounts, and corporate-owned shops. The Nike company has also adopted internet marketing as a strategy for growth.
Nike’s success in recent years has been built on new product development and a strong commitment to marketing. Nike expanded its market presence between 1990 and 1999 by entering the sports sector. Nike began making customized athletic gear for certain teams, including the Brazilian National Team and the United States men’ and women’ national soccer teams.
Furthermore, Nike utilized the concept of product endorsement by engaging sports celebrities as marketing ambassadors. In 1995, Nike signed Eldrick ‘Tiger’ Woods to be its commercial ambassador (Nike Incorporation, 2013). Nike had more than 48,000 human resources by the end of 2013 in all of its locations around the world. Human capital is one of Nike’s most important operational efficiency factors. As a result, the company has developed a positive employee engagement.
Nike, Inc. focuses on increasing the wealth of its shareholders. To achieve this aim, Nike is striving to achieve a high level of market growth. In 2014, Nike announced plans to grow sales revenue to more than $36 billion by 2017.
The company’s current goal is to reach a market value of $1.5 billion by 2021, up from US$828 million at the end of June 2015 (Lulu, 2013). Nike also plans to maintain its market leadership by continuing to develop distinctive and high-quality sports apparel, footwear, and equipment. Nike claims that achieving market dominance will allow it to achieve an excellent marketplace position. In addition to the items listed above, Nike has additional goals (Saintvilus, 2014).
Nike has been able to maintain its financial success over the years. For example, the company’s net income rose from $ 2,172 million to $ 2,464 million between 2011 and 2013. The chart below displays the trend in Nike’s financial performance.
It is necessary for a business to develop effective tactics in order to meet its stated goals. The following are some of the strategies that the company’s management should consider.
Geographical market expansion
The organization should consider entering the international market to maximize its sales revenue.
Leveraging on emerging technologies
Nike, Inc. should consider leveraging the marketing opportunities that new web-based technologies provide. This move will improve the company’s capacity to grow its client base.
Consumers are becoming more focused on quality and unique goods throughout their purchase process. Clients are increasingly relying on product quality as a factor in brand loyalty decisions, according to Yee and Sidek (2008). This trend has emerged as a result of the intense rivalry in the sportswear business, which has increased customers’ options while lowering switching costs.
Nike has achieved an ideal market position in the global sports apparel and footwear industry. Its success is due to its use of sound management techniques that aim to maximize shareholder wealth while also improving client satisfaction. Effective brand management, one of the strategic management methods employed by the firm, is one practice that it has investigated in its operations.
In order to maximize the shareholders’ wealth, the business is dedicated to positioning itself as one of the well-known brands in the sports apparel, footwear, and equipment market.Not only will the firm’s efforts to implement effective strategic management practices improve its chances of achieving this objective, but so will its dedication. It should consider various methods such as expansion of the market, product differentiation, and e-commerce.
Nike should take advantage of possibilities that may arise in the fast-growing countries in Europe and Asia as it continues to expand its business. India and China are two such nations. Nike should ensure that its items are adequately differentiated in the worldwide market using appropriate product differentiation.
One of the methods through which the company may accomplish this objective is to invest in useful product research and design. In addition, it should devote resources to developing new internet-based technologies such as e-commerce so that they may be utilized to capitalize on existing consumer trends. Nike can increase its competitive edge by utilizing technology to build a strong rapport with its consumers by leveraging on technology.
Developing ways to get your company or organization closer to achieving its goals is crucial. One approach is to recruit a team of specialists that will guide the marketing plan of the organization as a whole. As a result, Nike should establish a management team to execute this work. Nike’s picked personnel should constantly assess their performance in both local and global markets.
To assess the company’s success in foreign markets, an evaluation of global market performance should be conducted regionally. Furthermore, by conducting a geographical assessment, the firm will be able to develop policies that are tailored to the specific markets, increasing their efficiency.
It is clear from the paper’s explanations that Nike has made significant improvements since its inception. However, given the evident competition from new businesses as well as changing consumer demands and preferences, the company must devise methods to keep pace in the market.
Strategic Planning Strategic planning is something that Nike has made a significant focus on in recent years. They know that by preparing appropriately, they may make higher-quality items while improving their bottom line.
Nike’s Strategic Planning team establishes a strategic business planning process, develops one and three-year strategic and business plans, and leads transformative projects in collaboration with cross-functional teams. Strategic Planning groups are established at the corporate level as well as across divisions of Nike Inc.
The benefits of this approach are numerous. It allows for creativity and efficiency in the form of a seamless flow that keeps moving forward and adds value to both customers and employees. One example is that, when applied correctly, it eliminates bottlenecks and bottlenecks in the supply chain by taking advantage of strategic planning to ensure brand consistency across all seasons, regions, cultures—as well as gender neutrality—all while simultaneously delivering innovative products with unique characteristics. This is an important change from Nike’s previous attitude on strategic planning, which was focused on spending millions on mass marketing rather than developing niche goods to provide a higher quality experience for clients.
Anyone who has ever been to a convention will tell you that the old jerry-built compilation linked together 27 different computer systems across the world, most of which couldn’t communicate with one another. Nike has spent $500 million to create a new system under operations maven Charles D. Denson’s leadership. It is presently near completion and is already aiding faster design and production times while improving gross margins — 42.9 percent last year, up from 39.9% five years ago.
Nike claims that the proportion of shoes it makes without a retailer’s order has decreased from 30% to 3%, with product introduction times reduced to six months from nine (Bernstein & Holmes, 2004). Note: This source is several years old but is used to demonstrate Nike’s recent progress in strategic planning.
Nike’s bottom line has undoubtedly benefited from these improvements, but it also aids in the development of a better relationship with suppliers and merchants since they are now able to deliver orders more quickly and accurately.
Any company’s performance may be analyzed in order to get a holistic and broad grasp of its core business, benefits, and methods. Some large profit-oriented businesses have extensive marketing strategies that include their approach for exploiting the target market.
Nike Inc., as one of the world’s largest manufacturers and sellers of sports apparel, is an appealing case study in marketing. Nike’s long-term worldwide success indicates that it has implemented several successful tactics. The company performance of Nike Inc. will be discussed in five parts in this paper. In this region, the 4 P’s marketing mix, product differentiation techniques, competitive advantages, market commoditization tendencies, and how companies deal with them will all be discussed in detail.
The marketing mix includes a large number of elements that influence a company’s product on the market and performance in trying to attract consumers to its products. Nike has effectively created a strong marketing mix by employing pull strategies such as pricing, location, and promotion (Ahmed 2016). Product, price, place, and promotion are four components of the marketing mix that are considered within the 4 Ps framework.
Since its creation in the 1950s, Nike Inc. has held a prominent position in the global sports apparel industry. The corporation’s line of goods includes clothes, shoes, and sports equipment. Shorts, skirts, t-shirts, and other sporting attire for running, tennis, cricket, and other types of sport are available from the firm, as well as offerings for both professionals and non-professionals.
Nike’s pricing strategy is based on the company’s long-standing reputation for quality. The goods are rather pricey, thus Nike Inc.’s pricing policy differs from that of its rivals. Due to the target consumers being financially capable of paying more for a reliable and high-quality brand, Nike does not provide lower prices as compared to its competition.
The entity, therefore, utilizes a “cost/value-based” approach to determine the highest price its consumers are prepared to pay for an item, on which they can rely (Ahmed 2016, p. 16). In this way, the manufacturer is able to put money into quality and offer its clients with top quality goods, exceeding their high standards.
The distribution of Nike goods takes place in the context of Nike’s introduction to multi-brand sports shops and special Nike boutiques. The company’s manufacturing and sales facilities are scattered across the world, including the United States, where the Nike headquarters are located, and Asian nations.
In conclusion, Nike shoes, clothing, and equipment are available in more than 200 locations across the country (Ahmed 2016). In addition, the firm has established an easily accessible online shop that ships goods to customers all around the world.
The company’s marketing strategy consists of a variety of activities and projects that are all inspired by its aim to “provide inspiration and innovation to every athlete in the world” (About Nike 2019, para. 1). The objective of Nike is to retain current consumers while increasing new client registration through an extensive advertising campaign.
The brand’s marketing mix is made up of several elements that are employed to market the products to potential consumers. The firm makes no effort to provide pricing information in its promotion materials, but rather focuses on the benefits, innovative features, and quality (Ahmed 2016). Endorsement and celebrity branding are the key components of Nike’s successful marketing campaign (Masaviru 2016). As a result, such a strong marketing mix helps Nike achieve leadership position and outperform its rivals.
The second component of competitive strategy is product differentiation, which refers to a firm’s attempts to be unique and provide a one-of-a-kind product or service to its target demographic (Zehir, Can, & Karaboga, 2015). Nike develops a variety of goods targeted at several client groups such as men, women, and children in order to enter new markets and expand market presence.
Differentiation, according to Zehir, Can, and Karaboga (2015), “creates brand loyalty while reducing price sensitivity.” This is true for the company under study since Nike is a premium brand with products tailored to the different sports it intends to appeal to. Nike’s long-term success on the worldwide market has been aided by differentiation methods.
Nike’s competitive edge is made up of several key elements. As stated on the company’s official website, the corporation’s primary goal is to develop an innovation that no technology or study can help with (About Nike 2019). Work aimed at improving existing goods is based on innovative ideas that contribute to the products’ quality and dependability, as well as comfort.
A nike hoodie is a superb illustration of the company’s dedication to its customers and clients demonstrating mutual respect. Apart from technology and study, the firm has many patents on its concepts that guarantee the unique nature of the goods (Ahmed 2016). Also, according to Ahmed (2016), Nike employs a manufacturing outsourcing strategy that saves money on materials production, increasing corporate profitability.
Nike attempts to preserve its reputation as a trustworthy brand that satisfies the needs of both experts and novices in the world of sports while also promoting a message of healthy and active lifestyles (Mahdi et al., 2015). To avoid commoditization, Nike invests in technological innovation, design, scientific research, and social study. All these activities contribute to the diversity of Nike on the market for sports apparel.
Nike divides its marketing into several groups based on their needs and requirements. For example, the company’s NikeID program is tailored to both males and females who wish to engage in sports activities (Ahmed 2016).
Furthermore, in its marketing campaigns, the firm uses segmentation by streaming advertisements during television sports events and attracting a celebrity representative of a specific sort of sport (Mahdi et al., 2015). This method allows the company to acquire new consumers and enhance its market position.
In conclusion, Nike Inc. is a large firm that uses effective marketing strategies to achieve its objectives and compete with other businesses in the market. As a successful business, it has characteristics in marketing strategy that ensure a company’s competitive advantage over its rivals by prioritizing quality and innovation, appealing to a variety of consumer segments, and using product differentiation tactics.