Nike

GM Fall 2020 Group Project

Supervised by: Seung Hun Baek

Done by: 2018186 Maraltsetseg

2018010 Doljin
2018037 Ariunsanaa

December 12, 2020

Contents

Background……………………………………………………………….……………......… 3

Page | 1
Macro environment………………………………………………………………….………. 3
SWOT analysis…………………………………………………………………….………… 4
Strengths……………………………………………………………………….………. 4
Weaknesses………………………………………………………………….………… 4
Opportunities……………………………………………………………………....…… 4
Threats………………………………………………………………………….………. 4
Marketing strategy of Nike brand…………………………………………………….…….. 5
Targeting, Positioning and Segmentation of Nike brand…………………………...…… 6
Segmentation………………………………………………………………….……….. 6
Targeting………………………………………………………………………….…….. 6
Positioning……………………………………………………………………………… 7
Marketing mix………………………………………………………………………………… 7
Product……………………………………………………………………………….…. 7
Place…………………………………………………………………………………….. 8
Price……………………………………………………………………………….…….. 8
Promotion……………………………………………………………………………….. 8
Distribution………………………………………………………………………………. 8
Integrated Marketing Communication (IMC) ……………………………………………… 9
Advertising………………………………………………………………………………. 9
Personal selling…………………………………………………………………………. 9
Direct marketing………………………………………………………………………… 9
Sales promotion………………………………………………………………………… 9
Public relations…………………………………………………………………….……. 9
Social media………………………………………………………………………..……. 9
Customer Relationship Management (CRM) …………………………………..………….. 9
Conclusion…………………………………………………………………………...……….. 10
References……………………………………………………………………………………. 11

Page | 2
Background
Nike manufactures athletic footwear and sport apparel such as sport accessories,
athletic and recreational products. The company’s world headquarters are located near
Beaverton, Oregon, in the Portland metropolitan area (USA). The company was
established on January 25, 1964, as Blue Ribbon Sports, by Bill Bowerman and Phil
Knight and the company became officially Nike, Inc. in May 1971.
Nike has three different stores in 592 countries in 25 countries, including the United
States. With approximately 62,600 employees worldwide, the brand was valued at $19
billion in 2014 alone, making it the most valuable brand among sports businesses. Nike
sponsors many of the world's top athletes and sports teams, including the ‘Just Do It’
trademark and the ‘Swoosh’ logo.

Macro Environment

✔ Political

US policy has allowed Nike to upgrade its products and reduce interest rates. Stable
currency conditions have helped strengthen the business base.

✔ Economic

As China's sales grow by 25-30% a year, Nike has modernized its transportation and
distribution centers, making it possible for China to deliver faster and more efficiently.
Their total revenue rose 7.7 percent to $ 6.97 billion, and global orders rose 10 percent.

✔ Social

The Nike Foundation allows women in Ethiopia, Nigeria and Rwanda to improve their
quality of life and create a family planning structure.

✔ Technology

The "new digital revolution" has allowed Nike to make its website and smart phone apps
available to customers in a comfortable environment and allow them to purchase
products online. That's why Nike is moving forward, creating products and providing
more efficient services.

✔ The environment

Nike's environmental impact is based on extracting natural resources from the

environment. Leather is one of Nike's main resources for strength and flexibility. Other
natural resources mined for the company's products are fiber, wool, nylon, polyester
and rubber.

Page | 3
SWOT analysis
Strengths Weaknesses

❖ It is a global brand and the number ❖ This is a historical conflict and

one sports brand in the World. Its gives workers a minimum wage
famous "Swoosh" is instantly ❖ Poor working conditions
recognizable ❖ The organization has a variety of
❖ It has strong distribution channels sports products. However,
❖ It has an innovative shoe design business income is highly
that allows users to style their dependent on the footwear market.
shoes online If market share weakens for any
❖ It is very competitive organization. reason, this can lead to
Phil Knight (CEO) is often says vulnerabilities.
that "Business is war without ❖ It's more expensive than
bullets" competitors like Adidas, Puma etc.
❖ Nike has no factories. It does not ❖ Retailers are very sensitive to
tie cash to construction or prices.
manufacturing workers
❖ Produced a variety of products
around the world
❖ Has a strong marketing campaign
and supports different products
❖ Have other segments like baseball,
golf, shoes
Opportunities Threats
❖ It can process products such as ❖ The recession and currency
sportswear, sunglasses and fluctuations could lead Nike to a
jewelry. Such high-value items are loss
associated with them and tend to ❖ High competition from competitors
make high profits. is becoming more aggressive,
❖ It can support various world market creating high-quality products.
events (Olympics, FIFA). ❖ Competitors are developing other
❖ This could increase the segment of brands to take over Nike's market
female athletes. share
❖ This can increase demand and
bring the image of a fashion brand
to market
❖ The brand has the potential to
grow internationally based on
strong global recognition. There
are many markets with income that
can be spent on high-value sports
goods.

Page | 4
Marketing strategy of Nike brand

The Nike brand has one of the best marketing strategies in the world. That’s why Nike
ranks first in sports brands today. Here are the strategies that made the Nike
successful:
● Ads: Their advertising is different
from other brands. It has its own Funny and
interesting
characteristics. Because their ads ads

aren't just advertisements, they tell Customer

Product
quality and
small inspiring stories. Each ad has connection
design

a different background and played

by different people, but the meaning
always shows that “just do it” and Nik
“don't give up”. In 2020 alone, The
Nike brand spent more than 3.59
Engaging
celebrities
e Legendary
motto

billion U.S. dollars on advertising

and promotion.
● Engaging celebrities: The Nike Socially Constant
conscious innovation
brand works with big sports stars
such as Michael B. Jordan, Cristiano
Ronaldo, Neymar, and Lebron James and it brings a great reputation to the
brand. In addition to these well-known dignitaries, Nike also works with Olympic
athletes.
● Customer connections: Nike has built relationships between the company and
consumer by understanding the customer's preferences and needs. To build
more strong relationships with consumers, Nike started a new business
department called Nike Digital Sport. Thanks to NDS, Nike has been able to
communicate better with customers about their needs and requirements. Also
Nike has its own social networking device called Nike+.
● Constant innovation: Innovation is one of every one of the ways that Nike for
going ahead and providing new technologies for every kind of product they
produce. Their latest boots, of course, are made from the foremost good
materials. This is often however they work, the planning is super innovative and
this doesn't solely visit the boots. They create stadiums for running with nice
lightning systems so this is their approach to doing business.
● Socially conscious: Nike does business with companies that care about the
planet. Also they stand firm against racism.
● Product design and quality: Nike takes quality very seriously and manufactures
for its customers' needs at a high level of quality, durability, and comfort. Nike
brand produces super comfortable shoes and clothing while having a beautiful

Page | 5
 design. The Nike brand wants to make your life better at something you are
passionate about and improve your overall health.
● Legendary motto: Almost everyone knows Nike’s “Just do it” motto. Nike is an
ingenious company that encourages people with their motto and sells their
product at the same time.

Targeting, Positioning and Segmentation of Nike brand

Segmentation
About Nike, they had segmented their customers into four categories. These are:

Nike has included different gender group, age

and based on their targeted customer's financial
status. Nike has separated their product by age
Demographic and gender. There are 3 type of categories.
These are: men's product, women's product and
kid's product.

They supply their customers with a wide range

of products that meet their interests and
standards. Because not all customers who buy
Psychographic Nike like sports, psychological segmentation
gives Nike the idea of ​producing a variety of
products for customers based on their interests.

Nike supply advantages to the shoppers as they

provide an active lifestyle with comfy shoes,
Behavioral clothing and helpful sports equipment. Nike also
do notice that to provide the most of people they
need to improve on their products.

The Nike brand knows well that different

countries have their own different cultures and
Geographic lifehabits. Therefore, Nike launched different
products in different country to adjust the
regional customer's needs.

Targeting
The Nike brand is targeted at people who exercise regularly and dress in line with
modern trends. They categorize their products into men's, women's, and children's. Nike
also produces shoes in a variety of colors, so customers can shop around to suit their

Page | 6
outfits. Nowadays, people tend to eat healthier and exercise more, and the Nike brand
is researching and developing products for these people.

Positioning
Positioning means being able to attract the attention of consumers while entering the
market with other brands that produce the same product. The Nike brand has already
established itself in the market, and although the product is usually more expensive
than other brands, it is the number one sports company in the world, attracting
customers from more than 100 countries. The reason for this is that they have done a
lot of research on people, and based on this research, they make their products. Nike
produces not only the products that most people like but also the products that a few
ones like and that is why everyone loves this brand.

Marketing mix
Nike is well known as a sport clothing brand all over the world. Nike, which is a famous
global brand, operates a huge product range. It’s more concentrated on athlete shoes.
The company is running business through online and offline to attract customers. The
most essential feature of its product is focusing on good quality and product design.
Customers tend to buy its products more because most popular celebrities wear Nike
clothes. It is known as not only athlete clothes but also fashionable shoes are used by
younger generations who are more likely to buy clothes. The brand is recognized
through the “Just do it” slogan and “Swoosh” logo of Nike in the world in 1973. Now its
competitors are Adidas, Under Armour, Fila and Reebok that are growing fast as we
know. But Nike is still competing with them and setting goals to grow more step by step.
4 P’s are written below.

Product
Nike contains a great range of products, it includes shoes, apparel, accessories and
equipment with good qualities and product design. Nike’s first product was running
shoes. It developed from there till a vast range of products such as shoes for running,
gym, baseball, soccer and all those are available from Nike. Customers can find out
main categories for everyone by Nike as follows
● Running • Jordan Brand
● Baseball • Action Sports
● Sportswear • Men’s training
● Women’s training • Golf and Football
Latest additional accessories and equipment which are balls, bags, hoodies are
produced. The company makes clothes which are suitable for any age, both for women
and men. Nike can contain the latest designs such a Nike Zoom Walker and Nike Air
Max. Consumers can be served with all they want and needs under the Nike brand.

Page | 7
Place
Nike operates globally through online and offline. Nike shoes are sold and accepted by
other multi brands stores. They sell all products around 100 nations with 20000
retailers. Currently, about 1096 stores throughout the world. 338 of these stores are
located in the U.S. Most factories are located in Asia in Indonesia, China, Taiwan, India,
Malaysia, and Thailand. Global and independent distributions sell Nike products in
international markets. Nike is achieving to expand their stores buyers and franchise
more and planned for advertising media, e-commerce, e-business and appropriate
channels.

Price
Pricing is depending on types of product and target customers. Competitive pricing
strategy is used to determine prices. Cost base and Value based pricing refers to
proving the quality of products for Nike. Compared to its competitors, target customers
are willing to pay the cost of products. Customers who have financial capability of
products are ready to pay because using expensive clothes defines a status symbol.
This is how clients want to continue to buy. To stay target customers, quality of products
are always considered.

Promotion
Nike builds an effective promotion to maintain a strong brand image. This is one of the
most important strengths of Nike. A marketing strategy that Nike uses is sponsorship
using the sport person or athletes to promote a particular product. Also they use
celebrities billboards to get attention from targeted customers and attract new
customers. They created a “swoosh” logo that symbolizes not only sport culture but also
street culture and signs that are the promotion symbols as a brand image. Nike has
many kinds of media used in promotion strategy. The advertisement can reach the
expectation of everyone. In the online ecosystem they are using printing media,
broadcast media as well as social media for its advertising to maximize market
environment.

Distribution
Page | 8
Nike has some distribution channels which are its expanded goals.
● Nike town shop: In big cities of countries
● Flagship stores: Flagship of Nike which serve with high volume of Nike’s
products to consumers
● Nikeid: Nike’s online store that serves customers all over the world
● Big retail discount store: The big stores of country serve with high demand Nike
products for target customers
All those are the abilities of Nike’s products, opportunities to get required products from
these distribution methods for customers who want Nike’s products.

Integrated Marketing Communication (IMC)

Advertising: Nike’s achievement of advertising is to influence people who do not use
its products. In order to reap high demand, The company spends more expenses for its
advertising. Nike affects people who are using famous celebrities to show its products.
As a result, people are motivated to imitate the behavior of these celebrities. Nike let
people perceive messages using other countries’ sportsmen such as LeBron James,
Cristiano Ronaldo, Neymar etc.

Personal selling: All assistance is trained to provide information about a company’s

products and inspiration to purchase. Personal promotion helps to sell through personal
services and treatment as an individual considering exactly what product is appropriate
for one client. In the consequence of creating warm relationships with consumers and
persuading them to buy, customers have more knowledge about their products. Nike’s
retail stores communicate directly with people who are interested in Nike products by
asking the right questions.

Direct marketing: It is used when new products come into sales. So that it helps to
introduce and give basic information about those new products to target customers. It
can be that the company offers its products to sport organizations in universities and
colleges. Being no omitting target customers is a main feature of Nike. Therefore direct
marketing contributes competitive advantages through developing loyalty among target
customers.

Sales promotion: It is focused on people who are newly interested in Nike products.
By giving additional benefits such as special offers or some discounts, they motivate
them to purchase and recommend what new people should buy.

Public relations: Nike participates in charity events and public relations to expand its
social wide range and to promote its public relations. The company is well known
through any volunteer activities to most nations.
Page | 9
Social media: Social media is one of the most important elements in IMC. Recently
Nike brand has a broad range of followers on social media. Nike is expanding its
contents creating its information in any types that are videos and photos. In social
media communication, Nike’s status influences on promoting all activities.

Customer Relationship Management

It means people centered business. It is a long term process of building relationships to
get customers value. It will not end with only knowing customers wants and needs.
CRM of Nike contains much more meaningful approaches that are needed in the future.
Nowadays everyone who wants to know about Nike’s information, is able to find out
what exactly happens in a company’s situation even their failure or success for a short
period of time. There is a deeper relationship to create emotional connections and
sense of existing in one family. Nike always looks for customers’ own lifestyle or value
and determines their life standards before customers do. So that it is defined by what
Nike is giving to its customers together. The company’s sustainability refers to customer
relationship management that is used in Nike. Particular strategy of Nike’ CRM directs
other activities as well.

Conclusion: Indeed, it was said that much more analysis is made for the company's
marketing strategy and its sustainability. That can be a reason why Nike is number one
among the market which has many sports clothing brands. Main approach that Nike
uses is to exist for a long period of time as follows, high quality, variety of shoes,
sponsoring lots of sport teams. They are always seeking an effort to ensure that good
quality. The company can balance all these systems that influence its development
such as SWOT analysis or Marketing Mix. Nike presents value to customers through its
advertising so that people tend to choose Nike. They show and identify customer's
lifestyles and flows of fashion design. The essential method which is used in the
company is creating warm relationships with customers. They set goals to reach clients
as much as possible. While it has advantages, there is a recommendation that they
should have collaboration with other companies such as Iphone, to incorporate
technology in terms of gamepads featuring soccer, golf etc.

References:
Page | 10
https://en.m.wikipedia.org/wiki/Nike,_Inc.
https://www.nike.com/
https://studymoose.com/nikes-customer-relationship-management-essay
https://www.academia.edu/37156778/SEGMENTATION_TARGETING_AND_POSITIO
NING_STRATEGY_OF_NIKE_and_BYING_DECISION_ANALYSIS#
https://nikevmresearch.blogspot.com/
https://en.wikipedia.org/wiki/Nike,_Inc
https://www.sportsrec.com/nike-product-information-5417106.html
https://medium.com/@leanmarketing/case-study-nikes-marketing-strategy-
https://marketrealist.com/2019/10/nikes-target-markets-everything-you-need-to-know/
https://www.slideshare.net/ZaidAli42/nikes-segmentation-targeting-positioning-
marketing-strategy
https://www.researchgate.net/publication/299889166_Strategic_Marketing_Plan_of_Nik
e
https://gradesfixer.com/free-essay-examples/market-segmentation-market-target-and-
market-positioning-of-nike-company/
https://profitworks.ca/blog/marketing-strategy/545-nike-strategy-how-nike-became-
successful-and-the-leader-in-the-sports-product-market.html
https://www.referralcandy.com/blog/nike-marketing-strategy/
https://www.britannica.com/topic/Nike-Inc

Page | 11