Marketing Strategy Assignment: Nike
Question
Task: The final stage of the marketing audit is for you to evaluate how well the marketing mix of the organisation is performing for your chosen organisation. NB: as before, if you have a large range of product offerings, it is a good idea to focus on just one.
- Outline and describe the 8 marketing mix concepts theoretically and apply the components to one of your products offerings. As part of your application be sure to explain and evaluate all of the 8ps’ of marketing (product, prices, promotion, distribution, partnerships, people, processes and physical evidence).
- Given your evaluation of your overall marketing strategies, the competition and broader contemporary issues facing marketers today, provide recommendations for your organisation. Your recommendations should focus on each of the 8ps and illustrate how contemporary issues may impact on your organisation and its marketing strategy.
Answer
Introduction
In the year 1964, the company was established by its two key founders named Phil Knight and Bill Bowerman. They both established Nike Inc. in the name of Blue Ribbon Sports which was primarily a company who deals in import of shoes from the regions of Japan. In present the company stands for more than thirty percent of the overall market share with almost twenty two thousand successfully running retail outlets which are established across the globe. In some of the countries, Nike is regarded as the top most brands in the sports equipment, apparel and accessories sector (Nike, 2018). Nike has its primary emphasis upon satisfaction of the needs of the worldwide athletes by providing them with the best quality accessories, apparel and the equipment. In the market of apparels and athletic shoes, Nike possesses huge rand recognition. Presently, the company is the leading market pioneers which has some strong and vital marketing strategies that help the company to sustain and be the market leaders in such a competitive market condition. The marketing strategies of Nike help it to give a tough competition to brands such as Reebok, Puma, Adidas, etc. (Nike, 2018).With an effective marketing mix, the company develops sound marketing strategies as well as tactics for the brand to achieve long term sustainability and attaining the leading position in the market. With the help of the analysis of the marketing mix in this Marketing strategy assignment i.e. the 8 Ps of marketing, there reveals the correct approach of the company to its business.
The aim behind the development of this Marketing strategy assignment is to perform marketing audit of the marketing strategies of Nike by the means of analyzing its marketing mix. It will support the company in distributing its products across all the regions and to all the different age groups. The market strategy analysis depicts the needs of the people and company’s environment (Fullerton & Merz, 2008). This Marketing strategy assignment also supported in evaluate the difference of Nike with its strong and major competitors.
Evaluating marketing strategy and recommendations
Analysis of the Marketing Mix of Nike Inc
Product:Nike offers an extensive range of products to the customers across the globe which are made for all set of customers of different age groups. It comprises of sport equipment, accessories, apparels and the shoes. But the key product of the company is its running shoes which are at the top of the list. The company also offers products which are associated with athletics that comprises of lacrosse, ice hockey, basketball, baseball, tennis, soccer and several different outdoor gams (Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016). Nike also provides its customers with customized and tailored shirts, shorts or shoes as per their needs and demands, especially for cricket. Firstly, the company offered its shoes was made in the year 1987 which included Nike Air Jordan, Nike SB shoes, etc. In the year 2008, the company introduced a particular shoe catered to the game of basketball. The design of that the shoe supported the performance of the players. Nike also produces products for football tennis Golf volleyball skateboarding wrestling aquatic and cheerleading (Fullerton & Merz, 2008). There are also developed products for the outdoor activities and recreational activities. Therefore the key product of Nike i.e. its shoes are one of the 8Ps of Nike marketing mix. Another recent innovation of Nike is its special 30% lighter cricket shoes. It comprises of the Nike Air Max and Air Zoom Yorker. Every product produced and offered by the company encourages improved performance. Nike has also taken use of advanced innovations and Technology in its products. By taking use of high and Technology the company has also added the performance tracker which is in the form of a radio equipment that connects the iPod Nano to the shoe wearer. Therefore it shows that apple and Nike work together for producing improved and better quality products (Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016).
Price: Nike priced its products according to its features. The pricing strategy of the company is highly competitive and it is completely based upon its target customers. The company takes use of high premium pricing strategy which still works for Nike. It target those customers and market segments which can afford the higher prices. The customers are ready to pay higher prices for getting best quality products from a reputed company like Nike. It is also popular as the cost based pricing or value based pricing. Here the various competitive brands in the market also charged a similar kind of price and do not charge less for their products. Nike has developed its customer base which is the nice customers that can afford such expensive products easily. In spite of the high and premium cost of the products, the customers like to buy the Nike products for maintaining their status quo in society (Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016).
Place: Nike has its exclusive and special store as well as there are several other renowned multi brand stores which comprises of different branded shoes and also showcase the shoes of Nike. There are more than twenty thousand outlets which solely sold the products of Nike in almost more than two hundred countries across the world (Fullerton & Merz, 2008). When it comes to the international market the licenses, subsidies and independent distributions also sell the products of Nike. In the long-term promotional plan of Nike, there are also additional numbers of stores which will be open in several other countries and also a number of operational units would also be open to increase the production. The primary aim behind opening more number of stores and operational unit is to expand the number of customers in most possible reasons and also the tap the untapped regions and enhance the user base (Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016).
These stores of the company play a vital role in their effective marketing. Buying the products from the store of Nike, the customer had a valuable experience which also provides them an idea of future products. They are several things which act in the benefit of the company such as the steep showmanship shoes products and decor. The companies take use of out coaching strategies of China to reduce its premium cost for capturing the international market. It enhances its comparison with various developing countries such as Asia and Vietnam. The company has marked its presence in the online trading where it has an extended customer base. Cost of spending on the online media is comparatively very less than the traditional advertising therefore the company can easily sell its product at lower cost in the developing Nations and expand its market.
Nike Promote its particular and special products at some of its distribution outlets such as there is Nike town shop which is established in some of the major countries where the company serves its customer with special and particularly customized products. The second type of stores are flagship stores which contracts with the various retail stores and also promote the label of the product by the means of flagship where Nike products are available to the customer in high volume (Mathisen & Musante, 2010). The third is Niked which is the special kind of online store for catering the Global customer needs. The next is the big retail discount stores of the company where the products are offered by the means of large retail stores and also discounts are available in order to expand the market and have more number of customers across the world (Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016).
Promotion: The promotional activities of Nike is Highly Effective and efficient as the company focuses both on its existing customers as well as also on acquiring new customers on daily basis. The promotional marketing mix works adequately for balancing both the things and it is considerably strength of Nike (Mahdi, Abbas, Mazar, & George, 2015). For almost all kind of environmental situations the company has offered diverse set of products which are adequate for that condition (Tong & Hawley, 2009). The company takes use of print advertising which is considered as one of the simplest medium for promoting the products and to send messages over a large range of audiences. For the international and national promotion of the products the company takes use of unknown celebrity athlete for popularizing its products across the globe. The promotions and advertising of Nike is subtle and the advertising medium makes the marketing and promotions higher than the expectation of the customers. The billboards commercials and celebrities play a vital role in making the customers and people aware of the brand and its several discounts and offers (Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016).
Nike takes use of brand awareness strategy for promoting its products. There are several other mediums for marketing the products such as online ecosystems. The Other main source of promoting and marketing the brand is sponsoring various recognized events which have a huge number of audiences (Mathisen & Musante, 2010). Nike used to sponsor several numbers of campaigns and events as a source of promoting its brand. The well-known events such as west invitational and hook it up or some of the key events where Nike has developed its strong brand image and also it uses the trademark and name of the brand to promote the event. The brand name of Nike itself helps in generating high revenues (Anttonen, 2015).
People: People are considered as one of the major reason and direct course for forming an enterprise. They have a direct association to a brand. It has been identified that if there are more number of people in the target which has been set by any company then the demand for the product is high. Nike invest a lot in research and development for its employees as well as for its target audience which is associated with the company and its products. These are the individuals who have the company in delivering high class and supreme services for the brand. The company takes use of high force for hiring and recruiting the most potential talent in its operational segments. The individuals are provided with effective training by competent and skilled professionals so that they can start serving the organisation with their best efforts (Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016). There is required a strong faith at the end of the employees for pushing the products of Nike to the customers. These individuals work as the medium for the company to provide additional feedback for the product and the business.
Process: Process signifies service provision which works for getting an adequate balance between the customization and standardization. There is a need of a special mention and particular attention to all the processes which are under the various service positions of the company. There is also required a clear definition for the process by the service providers so that it can be assured that the delivery which is made to the customer was on time. There are a number of areas where the preferences and choices of the customers can be fit so that they can avail customized and unique experiences by taking use of the products of Nike (Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016).
Physical Evidence: The most of the services and products which are provided by the enterprise is a physical element for which the customers pays huge amount. Such as the store of Nike can offer the customer with a complete and proper athletic look makeover (Anttonen, 2015). There are also provided printed material to the customers for ascertaining the physical evidence of the various processes of the company. There is also a huge impact of the location of the place where the delivery of the service or product is made. The uses attain great experiences when there is beauty and comfort in the location (Edelman, 2010). Therefore Nike has its great emphasis up on the look and take care of it store so that the customers can be attracted and get unique experiences (Brohi, Prithiani, Abbas, Bhutto & Chawla, 2016). For the new customers it is one of the most astonishing things which can catch the attention for buying the products of Nike. Therefore it enhances the chances of profit and sales of the company.
Partnerships: For promoting the product and to enhance the awareness of the brand for the customers, Nike has some strong business partnerships and collaborations which supports the global presence of the company. IKEA, Bluesign technologies, LLamasoft, Grabit, etc. are few of the major partners of the company which enhances its global presence as well as its customer base (Nike, 2018).
Competency: The two major competitors of the company are Reebok and Adidas. The products offered by these brands are somewhat similar to the offerings of Nike and therefore both these brands poses tough competition for the company. The products of Reebok as well as Adidas has also evolved and improved with time and they also hold a strong market share (Mahdi, Abbas, Mazar, & George, 2015). But Nike holds unique and distinct features in its products. The two other brands are in a need to develop more awareness for their products but Nike is already doing all these things, therefore there is a competitive risk but Nike is effectively managing it (Mathisen & Musante, 2010).
Impact of contemporary issues on Nike and its marketing strategy
There are several contemporary issues related to society, corporate social responsibility (CSR), technology, social media and environment which impact the marketing of Nike. There are negative implications which can harm the successful marketing of company. While marketing the products or developing advertising and promotion strategies, it must be ensured that it not have any kind of contemporary issues such as exploitation of the social paradigms (Mathisen & Musante, 2010). There must be ethical implications associated with it and also it must have complete focus of CSR. Nike has its renowned presence because of its association and collaboration with several NGOs and other non-profit organisations for its CSR activities. Ellen MacArthur Foundation, Sustainable Apparel Coalition (SAC), Girls Inc. Mentor, Better Cotton Initiative, Peace Players International are some of those big platform with which Nike has its collaboration with (Nike, 2017). Therefore, it does not involve in creating contemporary issues.
Recommendations on Evaluating Marketing Strategies for Nike
Following are the recommendations for Nike and its marketing strategy based upon the evaluation of its marketing mix and marketing strategies.
Assessment of the needs of the customer base: The assessing the needs of the customers, it has been identified that the audience can reach out and purchase the products by using internet in an effective manner. By creating attractive blogs will support the company in branding and positioning in the target market. It is necessary to understand the various upcoming needs of the customers and also their requirement for specific products (Tong & Hawley, 2009). To enhance the customer base the company is required to get aware of the aims and goals of the potential customers and also know about their queries regarding the products. By taking use of website and online mediums the company can provide them adequate solution as per the diverse needs of the customer base (Park & Kincade, 2010). In present scenario, there has been identified a number of ways by which people can remain fit and in shape. Nike can take use of the enormous web resources for positioning the brand in global regions. By supporting the potential customers in attaining their goals will ultimately help the organisation to achieve its vision and goals (Anttonen, 2015).
Assessment of various mediums for reaching the customers: By taking use of the digital marketing and various other marketing aspects the company must take care that it is reaching to the extended number of customers and there is a broader user base. In present scenario digital marketing is one of the most essential tools which can be used by several platforms for enhancing the brand awareness and for promoting the company and its products (Smith, 2012). Social media and social networking are few of those mediums. The key purpose behind making such marketing efforts is to ensure that the company has its products where a customer is therefore it means the customer can easily access is the product of Nike (Laukkanen, 2017).
Promoting content according to the needs of the customers: For reaching out a large section of audience and potential customer base there is a need to have creative impact upon the customers (Shank & Lyberger, 2014). The organisation must take use of print collateral medium, video channels, social media as well as blocks for creating and promoting content which can address the needs of the customers. The renowned brands such as Nike must make check upon the needs and requirements of the potential customers by the means of surveys as well as performing extensive keyword research (Anttonen, 2015).
Sponsorships: Nike paid a huge amount to the sports athletes for promoting advertising and selling the products of the company. It is one of the most effective and potential marketing strategy used by the organisation for advertising and promoting their products (Smith, 2012). The customers get easily influenced and motivated to buy the products when they see any renowned celebrity or public figure associated with the brand. therefore its can increase the sales effectively. The company must emphasize on use of more influential personalities which could be a more effective marketing tool for Nike (Fullerton & Merz, 2008).
Innovation: The next major marketing strategy which can be used by Nike is innovation in the products. Being one of the leading athletic brands, Nike must invest more in research and development for bringing innovation in the products (Shank & Lyberger, 2014). When there will be offered innovative products, it can help in fetching the attention of the existing customers as well as of the potential customers. There is a need that the company must enhance is focus on the needs of the customers and involving the global market (Laukkanen, 2017).
Word of mouth with a specific purpose: The products of Nike are easily approachable as well as identifiable. Therefore, these products develop extended word of mouth marketing. The company must pay higher attention towards the emotion and choices of the customers as it support the customers for expressing themselves directly to the company. When the buyers see or develop a relation with the product then that takes place word of mouth promotion (Anttonen, 2015).
Pricing Options: Nike keeps the prices of its product as Supreme or high but still the customers are willing to pay for its products. The key reason behind this is the quality provided by the brand to its customers (Smith, 2012). But there is a need that the company should regulate its prices as per the background, needs and preferences of the customer groups. For instance, for the sports shoes of kids, the company should keep its price lower than the shoes for men and women as it can act like a driving force for increasing the sales of the shoes (Fullerton & Merz, 2008).
Emotional Branding: There is a need as described in this Marketing strategy assignment that Nike should make its branding strategy more powerful. When the branding strategy is powerful it helps in inspiring the audience across the world (Pearson, 2013). The company should take use of emotional branding or emotional advertising strategy based upon the small stories. Nike can have extended reach to the global customers by taking use of emotional branding (Tong & Hawley, 2009). Story telling is one of the best and powerful marketing strategy by which the company show how it can help the individuals in their everyday life and work. This support in building a higher level of customer loyalty as well as it also enhances the communication between customers and the company (Shank & Lyberger, 2014).
Conclusion
From the above Marketing strategy assignment and the analysis and evaluation undertaken, it can be concluded that Nike is regarded as the top most brands in the sports equipment, apparel and accessories sector. It has its primary emphasis upon satisfaction of the needs of the worldwide athletes by providing them with the best quality accessories, apparel and the equipment. By analyzing it marketing strategies, it is identified that the company is paying adequate emphasis upon all its 8Ps of marketing mix. But the brand must have little improvements in its strategies as suggested in the recommendation. With the implementation of the recommendations in the marketing strategies as suggested in this Marketing strategy assignment, Nike can gain better market share and improved customer base across the globe. Thus, it can be stated that the company possess huge potential to sustain in the market with its effective strategies and adequate focus on the CSR activities as well as by offering more unique experiences to its products in comparison with its competitors. Marketing strategy assignments are being prepared by our marketing assignment help experts from top universities which let us to provide you a reliable best assignment help service.
References
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