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Executive Summary Based in the United States, NIKE is currently the largest supplier and manufacturer of athletic products globally. In 2016, NIKE has 70.7 millions employees worldwide, with a global revenue of U.S. $32 billion. The Nike’s Air Jordan’s is positioned as high quality product, with its innovations being the largest customer value to consumers. What sets NIKE apart from its competitors is their renowned branding of product features. We will be using various comprehensive marketing plan components which includes company analysis (Nike’s current status and future plan), situational analysis (SWOT & PEST) and competitive analysis (Nike’s competitor analysis). The marketing report will also identify Nike Inc.’s objectives and their marketing strategies in terms of the 4Ps, which aims to increase the brands awareness through different media platforms. As for our target market on the Nike Air Jordan’s, we will focus on potential consumers who are aged between 20s to 30s as they are most easily influenced by trends. In the past, Nike (Air Jordan’s) targets mainly athletic consumers. As years passed, the target group shifted to consumers who develops product intimacy; which in this case are young adults. With the analysis above, we hope to create a new strategy/product to help boost the company’s sales and market share.

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Table of Contents Executive Summary............................................................................................................1 Corporate Background........................................................................................................3 External Environment.........................................................................................................5 Pest Analysis.................................................................................................................................5 Political..........................................................................................................................................5 Economical.....................................................................................................................................5 Social.............................................................................................................................................5 Technological.................................................................................................................................6

Internal Environment.........................................................................................................7 SWOT Analysis of Nike..................................................................................................................7 Strength.........................................................................................................................................7 Weaknesses...................................................................................................................................7 Opportunities................................................................................................................................8 Threats...........................................................................................................................................8 Competitor Analysis......................................................................................................................9 About Adidas.................................................................................................................................9 Financial Performance of Adidas.................................................................................................10

Marketing Plan.................................................................................................................11 Marketing Objective...................................................................................................................11 Market Segmentation.................................................................................................................12 Target Market.............................................................................................................................13 Market Positioning......................................................................................................................13 Perceptual Map..........................................................................................................................14

Strategic Marketing Mix...................................................................................................15 Product.......................................................................................................................................15 Pricing.........................................................................................................................................15 Place...........................................................................................................................................16 Promotion...................................................................................................................................17

Reference List...................................................................................................................18

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Corporate Background Company Mission Bring Inspiration and innovation to every athlete* in the world. If you have a body, you are an athlete. Company Objective Nike aims for “Double our business, with half the impact”. Specific factors include, Nike, setting an ambitious goal of $50 billion in sales by 2020. Definition of Market Nike Air Jordan’s compared to other brands such as Adidas and UnderArmour, is considered the greatest leading brand of all in the Basketball shoes industry. Size of market in volume The size of the market in which Nike Air Jordan’s operates in has an annual generation of $2.25 billion in revenue. With the hype of the Jordan’s retro release in 2015, numbers soared to hundreds of thousands of shoes even without marketing or advertising (Highs Nobiety 2015). Market Potential Nike Air Jordan’s has been an ever-growing product brand for Nike since 1985, after Nike signed Michael Jordan as their brand ambassador for a year during the introductory stage of its lifecycle. The growth lifecycle for Nike Air Jordan’s is currently at the maturing stage, with Air Jordan’s generating more revenue each year. Estimated growth rate for Air Jordan’s is currently from 2.6 start of January dropping to 2.0 in 2017. However from estimated growth statistics of GDP Annual Growth Rate, Air Jordan is estimated to have a rise in growth rate by 2020.

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Competitive nature of the market Air Jordan’s under Nike was founded in a competitive environment, with other big brands such as Adidas and Puma. With not just basketball shoes and sneakers, Nike and Adidas have fought head-to-head in comparison of sales and prices. This can be referred to as a monopoly, with one company dominating the market, e.g. Total retail shoes Total Jordan U.S. retail shoe sales hit $3 billion last year with a market share of 64% in basketball compared.

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External Environment Pest Analysis Political The government should be responsible in creating economic benefits to aid the growth of its businesses in their own country. Factors such as low interest rates & stable currency conditions will aid Nike greatly in their growth in business internationally. Implementing trade barriers may make trading process difficult among countries, therefore, the United States (Nike’s home country) has been expanding free trade policies internationally to allow Nike to have the opportunity to penetrate & venture into overseas markets.

Economical An economic recession can be a huge threat for Nike’s growth and advancement as consumers may switch to lower-end or cheaper products. Beside its home country’s economy, other countries’ economy downfall can be a threat to Nike, especially in Asia where many of its products are being manufactured at low cost. An example; the setback since the fiscal crisis of 2009 -2010, Nike has suffered an economic downfall in both west and Asia pacific region. Therefore, by analysing the international economy is a key to Nike’s economic growth.

Social Age is one of the demographic variables that will affect the brand. Nike Air Jordan’s customers usually range from the age of 13-25 year olds. Singapore has a low birth rate and faces an ageing population thus, it may hinder substantial sales in the long run. Another variable will be income. The lower income market is more price sensitive and may not be willing to spend on premium shoes like the Nike Air Jordan.

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Technological E-commerce such as online shopping services are widely used today. It can come in the form of websites on the Internet or mobile phone applications. The most common type of transactions is between businesses and consumers (“B2C”), like Nike.com; amongst businesses (“B2B”), an example would be Nike allocating some shoes to e-commerce sites like Sneakerhead.com and amongst consumers (“C2C”), like Carousell (Lim et al. 2015) which are all cost effective methods as no physical store is required. Shopping applications are increasingly popular in Singapore as almost everyone is technologically savvy and readily connected to the Internet across all age groups. Buyers are also able to research about specific products before making final purchase.

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Internal Environment SWOT Analysis of Nike Strength Strong Global Brand Spanning over decades of presence around the world, established as a youthful brand. Started in the year 1964. One of the strongest sports brand in the world. Differentiated Portfolio There is a wide variation of sportswear and accessories under their branding. Advertising on Social and Traditional media Nike has done an excellent job in terms of advertising their products by reaching out to social and traditional media. Nike secured the services of current NBA stars, such as Russell Westbrook to endorse in online advertisements and promoting the product during the NBA ALL STAR Game. Nike has a well-maintained active social media site such as Facebook and YouTube page which update its promotion on their products and upcoming events for easy access. Solid Financial Status Have over 900 over retail outlets worldwide which accumulated up to tens of hundreds of thousand dollars in terms of profitability per fiscal year.

Weaknesses Production is subcontracted to 3rd parties Majority of NIKE’s production are outsourced to 3rd parties, mainly in countries within Asia due to low cost from labour and materials. An over dependency may pose a risk to Nike, such as workers demanding a higher pay rate. Being unable to meet up to these demands, will dampen the production process.

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Opportunities Ever-changing There is an ever-changing in the aspect of preferences and lifestyles etc. Nike can conduct market research regarding these trends in different groups to open to new business opportunities. Entry to new market As people nowadays prefer like new products and ideas to enhance their lifestyle, this will lead the company into success in the long run.

Threats Intense Competition Nike is well known in the market for its sport shoes but facing stiff competition from competitor brands like Adidas and Puma. There is also constant competition coming in from other market players. Cyber Threats Nike has an ecommerce website, therefore cyber threats might happen, whereby hackers will hack into customer’s credit card information and resulting in security breaches and information being stolen. This might lead to damage in reputation and tarnish the image NIKE has established.

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Competitor Analysis The sneakers industry is defined as monopolistic competition. Internationally, Nike is the market leader in sports footwear brands, with Adidas being its top direct competitors. Driving product innovation for athletes and improving performance is what sets the difference between Nike and its competitors. We will be discussing some financial information and market strategies of Nike’s main competitor (Adidas) below.

About Adidas

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Financial Performance of Adidas Financial Year Revenue Operating Income

2016/2015 €1,883,000,000 €1,491,000,000

2015/2014 €1,475,000,000 €1,094,000,000

2014/2013 €1,283,000,000 €961,000,000

Net Cash Flow from €1,348,000,000 Operating Activities

€1,090,000,000

€701,000,000

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Marketing Plan Marketing Objective As Nike is already a well-established brand , to increase sales, implementation of marketing initiatives helps build and strengthen customers relationships. Marketing campaign also drives customer’s appeal and brand awareness. In order to measure the brand awareness, trend scouting research, market share data and surveys will be carried out. Internally, we are to focus on manufacturing superior products while maintaining the integrity of the product. As a result, we will expect to see a growth in sales revenue during our upcoming product launch by : 1) Increase net sales by 15% by the next annual year. 2) Increase market shares by at least 20% over the first 6 months when a campaign is launched. In order to increase brand awareness, quantitative research such as trend scouting and consumers surveys will be conducted. These results can determined our brand’s strength in the market.

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Market Segmentation

As it is impossible to target each and every consumer to their own needs and wants, market segmentation is needed to divide a broad market into smaller segments. Such as, common interests and needs before implementing strategies to target those who are best matched in terms of needs and wants. Therefore, based on the information above. Nike specializes in using differentiated marketing strategy to target several market segments, especially ages between 18 – 24.

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Target Market Our upcoming product aims to meet the requirements of age groups (18 -24) to maximise the customer base and profit as well. The target group is selected due to its relatively high potential market compared to the others. They are financially capable (mostly works parttime), has high usage rate of product (more leisure time than working adults) and more likely to follow fashion trends (benefits from features & design).

Market Positioning Nike has numerous competitors with brand differences similar to their biggest competitor, Adidas. This may result in consumers adopting variety-seeking buying behaviour when evaluating alternatives as there are too many choices and thus resulting in brand switching to pursue novelty. Market positioning is vital as it give a brand/product a unique selling proposition (USP), which entitles a competitive advantage against competitors in such a clustered market. Thus, it is important for these advantages of products’ attributes to be communicated to consumers via marketing. Nike’s market positioning focuses on serving athletes, improving sales and being a source of inspiration. With that said, product attributes such as cost, performance, comfort, features and design are needed to attract consumers to increase brand positioning. Market research will be conducted to analyse consumer’s perception of both Nike and its competitors. After that, we will be able to map out a perceptual map ( as shown in the next page), by analysing and enhancing current strategies will enable Nike to have a competitive edge over its competitors.

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Perceptual Map

The diagram above reflects the expected position of the product from consumer’s perception. We can see clearly Nike showing the biggest circle, as compared to its other competitors. Adidas only seems to present the biggest threat as their shoes may be slightly cheaper, but Nike’s brand power and marketing influence helps draw more customers resulting in higher performance comparatively.

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Strategic Marketing Mix Designing the strategic marketing mix for our upcoming product will aid us in allocating our resources (both financial and human) better, as well as to provide an opportunity to analyse its cost benefit elasticity.

Product Our upcoming product will have three different customer values: core customer value, actual product and augmented product. The core customer value is to associate consumer as the best in sports. The actual product is the Nike shoes with assorted designs and comfortability. Lastly the augmented product is letting consumer personalize his own shoes when buying online and giving warranty when consumer buy our shoes. Information must be communicable to the consumers so that they can make the correct decision to buy our upcoming product. We will be repackaging the product as it will help to attract public attention, promotes the brand and allow distinguish differentiation of brandings. Nike has high brand equity over the years, as shown in the main website of the company. Consumers have a good perception and feelings for the brand, product and performance. Having a positive brand equity can also help us expand through brand expansion and extensions thus increasing sales and reducing the cost to promote the brand.

Pricing Our upcoming product will be set at price ceiling for its unique design, quality and comfort. Being an established brand name in the industry enable us to use the premium price based pricing for our upcoming product as all these while, customers have already had a perception of the brand and therefore, we should set the price to match our customer perceived value. We will also adopt value-added pricing by creating a design that is unique, beneficial and of higher quality which differentiate us from our competitors in the market. We will not lower the price of our products, as it may result in the drop-in quality of the shoes we have been producing since the beginning. Although the sales volume will be lower due to the price, the profit margin per unit sold will be very high.

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Place Nike relies heavily on direct distribution channels with more than 900 retails outlets which are operated by Nike or franchises in shopping malls and departmental stores worldwide.

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Promotion We will market our upcoming products through few diverse ways. Majority of promotion will be done using advertisement on various social media and the internet. This will be associated working with stars or celebrities such as professional basketballers like Kevin Durant and Kobe Bryant wearing our sports shoes which will make the consumers, mainly young adults and teenagers to see them as aspirational group and will want to purchase the same pair of sport shoes because they want to be as good as them one day or simply because they idolise them. We will also advertise through advertisements through platforms such as television and various social medias. This is one of the most cost effective as it can reach considerable number of audiences at a low-cost exposure considering that people nowadays are getting more technological savvy these days. It is also a good way to express the message across to our potential customers for repeated times. In conclusion, the usage of these strategies which directs its marketing activities towards their consumers to attract them to buy their product may increase the demand of our products by consumers.

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Reference List 1. Adidas 2016, Financial Reports, Adidas Group, viewed 3rd April 2017, ; 2. Bhasin, Hitesh (2016). "Marketing Mix Of Adidas - 4P's Of Adidas". Available at: http://www.marketing91.com/marketing-mix-adidas/ (Accessed 27th March 2017) 3. Fiorentine, Stephen (2014). "How Your New Favorite Sneaker Became So Popular: Adidas Superstar" Available...