A Marketing Report on Nike PDF

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This is a Marketing Report on Nike including 4 Ps of the marketing mix....

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Name: Ramsha Munawar ERP: 22738 Class #: 5113 Company name: Nike Instructor: Miss Rakshanda Mustafa Assignment 3

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Table of contents Topics

Page no.

Company Description

3

The Product

4

The Market  Segmentation

5-6

Demographic Geographic Psychographic Behavioral

  

Targeting Differentiation Positioning Perceptual map

Pricing

7

Bibliography

8

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Section 1: Company Description Nike was founded by Phil Knight and Bill Bowerman in 1964. Nike is now the market leader in the manufacturing of sportswear and gear and enjoys possessing more than 47% of the market share across the globe. The industry in which Nike operates is Apparel Accessories Sports equipment. Nike primarily does its business in three main strategic business units: footwear, apparel, and equipment. The strongest of these three SBU’s is the footwear category where Nike has a hold of 35% of the market, the largest share by 13%. Nike’s apparel holds only 7% of the industry share and is struggling to compete with other companies such as Adidas and Puma. Finally, in equipment, which is a much more competitive market, Nike only holds a small percentage of the market share. “Bring Inspiration and Innovation to Every Athlete in the World. If you have a body you are an athlete. Our mission is what drives us to do everything possible to expand human potential. We do that by creating groundbreaking sport innovations, by making our products more sustainably, by building a creative and diverse global team and by making a positive impact in communities where we live and work.” Nike.com

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Section 2: The Product

Nike CONVERSE

JORDAN

Apparel

Shoes

Accessor ies

Shoes

Apparel

Accesso ries

Shoes

Body suits Tops and T shirts

Jordan Max Air Jordan1

Bags and backpacks

Jersey

Mini bags

Nike Air Max

Full sleeve tees

Duffels

Running

Jackets and vests

Air Jordan XXXVI

Bomber jackets

Jordan Air NFH

Puffer jackets

Jordan Point Lane

Pants and Tights

Jordan LS

Joggers and Sweatpants

Jordan Delta

Totes

Road

Balls

Trail Track

Jordan basketball

Nike Vapor

Soccer

Gloves and Mitts

Training and Gym

Football gloves

Hats and headbands Caps Headbands

Tracksuits

Beanies

Skirts and Dresses

Football

Jordan Soccer Ball

Shorts

Jumpsuits and Rompers

P

Nike Blazer Mid

Graphic Tees

Hoodies and Pullovers

Air Jordan 11

Life Style

Sleeves and Armbands

Nike Super Rap

Skateboar ding Baseball Golf Tennis Walking Track & Field Sandals & Slides

Hoodies & Pullovers

Lifestyle Converse Chuck Taylor All Star High Top

Hoodies Sweatshir ts

Pants & Tights

Bags & Backpacks

Joggers and Sweatpan ts

Watches

Jackets & Vests

Yoga Mat

Tops & T shirts Bodysuit Jumpsuit s& Rompers Tracksuit Skirts & Dresses

Balls Belts

Sunglasses Home Workout Hats and Headbands

Converse Chuck Taylor All star Low top Converse chuck Taylor low top

Track and Field Chase the drip

Section 3: The Market Even though Nike promotes the idea of everyone is an athlete, Nike segments its market onto four bases; geographic, demographic, psychographic and behavioral. Demographic: Nike target their customers according to their age, life-cycle stage, gender, occupation, and generation. For most part Nike target the age group between 15-50. It has separate lines of male products, female products and kids’ products. The company is placing an increasing focus on teen to build a long-term customer brand loyalty. Nike does not segment their market based on ethnicity, race, nationality, or religion. Geographic: Nike uses geographic segmentation to market in different regions, cities and countries differently. Like, in USA Nike focuses on American football and baseball and run campaigns on these sports. In Europe, you are more likely to see Soccer, where Nike uses soccer stars to market Nike’s products. Similarly, in India, you are more likely to see cricket, and rugby in England or Australia. Nike’s largest markets are North America followed by Western Europe and China. In these geographies Nike’s marketing efforts are largely focused on urban areas with high market densities. Psychographic: Nike uses psychographic segmentation to target audience with a certain lifestyle people who take pleasure in sports and athletics. Nike’s marketing efforts are targeted at creating a “feeling” that transcends the product. Nike fosters an attitude; it develops a lifestyle. Events such as Nike: Run with Me, Sports Improvement Clinics, Social Media contests and athletic and non-athletic endorsements go a long way to create community and a feeling of “belonging” to the Nike family. 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 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 5|Page

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 Nike focuses on how their products make their customers feel. It says You are an athlete. Nike products make you feel athletic! In addition, with that Nike builds customer engagement and customer loyalty by providing them exceptional quality and experience so they come again and again. Nike also masters in social media reviews to create an online family. Targeting: North America is Nike’s largest segment on geographic segmentation. Nike’s target in the US are the athletes and people who enjoy sports and other fitness activities. Nike also has an agenda to promote athletic lifestyle in everyone and inspire people to get up and work. Both men and women from age 15-40 comes under Nike’s target market. So, for example North America’s total population is 579 million and out of that 50pc lies between the age group of 15-40 so that is around 270 million people. Out of them 20pc is interested in sports and athletics so that is Nike’s target market.

Differentiation: Nike differentiates itself on the basis of quality and innovation. Nike focuses primarily on athletic shoes with prominent sponsorship with star athletes. Their USP is innovative technology, high quality/stylish products, joy and celebration of sports, maximum performance, self-empowerment and inspiring, locally and regionally involved, and globally responsible. Positioning Perceptual map :

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Section: Pricing 1. Nike uses Market skimming pricing strategy as they target the people who are willing to invest good amount in athletic products. When the company brings out new article in the market, they set high initial prices. By this, they ensure to make the product available for their target market i.e., professional athletes and sportspersons. After few months of the launch, Nike lowers the prices. So, they practice market skimming pricing strategy in the beginning, invest heavily on the promotions and marketing of their new product. After 3-6 months of the launch, they gradually reduce the prices. 2. Nike uses value-based pricing strategy for their products due to their high brand equity. Nike considers consumer’s perception about the value of their product. Since Nike is known for its high quality and customer satisfaction, adopting this pricing strategy puts them at great benefit.

3. Nike does offer discounts. They have occasional sales like that on black Friday. Nike also puts up seasonal sales like winter or summer sale and one can be informed about them by signing up at Nike. Nike also offers a small student and health professional discount. They also rewards customer loyalty by offering them coupons and promos. 4. Nike adopts Product Line pricing strategy. They have a wide range of products under different categories like shoes, apparels, accessories. Nike’s most popular product are their shoes, they different types for different sports and athletics. Different Lines are priced differently based on their features and quality. Nike’s most expensive are line is their Air Jordan as Michael Jordan wore them. Nike has a vast pricing range its prices allow consumers to associate low, average and high prices depending on the price points to buy a shoe depending on their preferred price. Nike uses psychological price adjustment strategy. In 2014 Nike initiated a new pricing strategy. The company determined from a market analysis that its customers appreciated the value that the brand provided, which meant that it could charge a higher price for its products. Nike began to raise its prices 4–5 percent a year Nike’s understanding of customer value enabled it to raise prices and achieve company growth objectives, increasing U.S. athletic footwear sales by $168 million in one year. Customers tend to associate high price to better quality and Nike prey on that mindset. Nike also adopts promotional price adjustment strategy. Nike will suggest a short-term price reduction to maximize sales during that period occasionally. Due to Nike’s constant production of new products, the older designs will go through price adjustment to continue to attract customers. 8|Page

Bibliography https://maps.groupmap.com/maps/X1EVLqi5IkOD/participants/QK7ZuX0JKUMR www.nike.com https://www.thestrategywatch.com/pricing-strategies-of-nike/ http://panmore.com/nike-inc-marketing-mix-4ps-product-place-promotion-price-analysis https://www.cram.com/essay/Price-Skimming-Strategy-Of-Nike/FJCJ4C8DL6U https://www.ukessays.com/essays/marketing/nike-is-the-world-largest-markets-of-athleticmarketing-essay.php https://courses.lumenlearning.com/clinton-marketing/chapter/reading-pricing-objectives/ https://www.mvorganizing.org/what-makes-nike-different-from-its-competitors/

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