Evaluating Marketing Strategy and Recommendation for Nike

Question: Discuss about theEvaluating Marketing Strategy and Recommendation for Nike. Answer: Introduction In the year 1962, Bill Bowerman and Phil Knight as a team founded NIKE Inc. Initially the brand used to import shoes from Japan and was called as Blue Ribbon Sports. Almost 37% of the market share is currently held by Nike, with over 22,000 retail outlets in the US and spread over 160 countries. In todays date the company is the number one show manufacturing brand in the entire world. The company focuses on catering to the needs of athletes by offering footwear, apparel, equipments and others for them. The brand leads the world in athletic shoes and apparels (Kasi, 2011) . In these four product categories Nike has divided its operations (Lin, 2012). It is one of the marketing pioneers of the present times. The brand has a strong marketing strategy holding up high in the middle of high competition from brands like Adidas and Reebok (Bhasin, 2016). The marketing mix helps covering primary tactics and marketing strategy of the brand. It helps the company maintain a strong position in th e industry. This analysis of the Nike marketing mix reveals its approach to business (Gregory, 2016) :- This entire report has a purpose. It is a proposal for an ideal marketing plan for Nike. This will help Nike market its high priced premium products to all target age groups well. This effective marketing plan, findings and market research shows the need for detailed information to be imperative for the companys environmental analysis. It also helps analyze the difference of the firm with its competitors (Report, 2013). An ideal marketing mix of 8 Ps is used for marketing the brand better. Marketing Mix of Nike Inc. Product - A wide range of products is offered by the brand. These are apparels, equipments, shoes and other sports items. Running shoes come in the first top list of their all products. They also have products based on athletics, ice hockey, baseball, soccer, tennis, basketball, lacrosse and other outdoor games. They also have customized shoes, shorts and shirts for cricket. In the year 1987, shoes were first offered by the company in the form of Nike SB shoes.. Nike Air Jordan XX3, a special show was introduced in the year 2008 catering to the basketball game. Its design aided performance. Nike also suffices for golf, tennis, football, skateboarding, and volleyball, aquatic, wrestling and cheerleading goods. Goods for recreational and outdoor activities also form one of the 4Ps of the marketing mix for the product Nike. One of the recent innovations has been special30% lighter cricket shoes. These are the Air Zoom Yorker and the Nike Air Max. All products of Nike encourages better performance. With advanced innovations made in the field of technology, Nike is no way behind. It is flexible and has adopted high end technology like performance tracker in the form of a radio device connecting the show wearer to the iPod Nano. So, Nike and Apple Inc. worked as a time to generate better product for the world. Price Depending upon the product Nike has priced them. Their pricing strategy is competitive in nature and it bases itself on the target customer. A high premium based pricing strategy still fetches a lot of demand. People are willing to pay more even just because of the quality maintained by the company. Such kind of pricing is also known as value based pricing or cost based pricing. The competitive brands do cost less. But the target Nike has made is that of a niche audience who does have the affordability to afford such expensive goods . Customers also love buying Nike irrespective of its premium cost for maintaining a status quo. Place Exclusive Nike shores and several renowned multi brand stores all across the globe showcases Nike shoes. Over 20,000 retail outlets are present solely in the US. Nike sells its products over 200 different countries in the world. Independent distributions, subsidies and licenses also sell their products in the International, market. The long term promotional plan of the brand is opening more number of stores and operational units. To expand the number of buyers to a maximum number and reach out to larger user base is what Nike aims at. Nike stores play a big role in their marketing. The stores take customers to a futuristic view point where the entire idea is to make them live a never before experience, The dcor, shoes, products and steep showmanship acts in favour of the brand. In the international zone for reduction of costs Nike uses Chinas outcoaching strategies. This is in comparison with developing nations like Vietnam and Asia. Nike has also stepped its footmarks on online trading. Spending over the online media is much lesser than direct traditional means of advertising, There are specific distribution outlets where Nike promotes specific products. These are worth mentioning:- a) Nike town shop In big countries and cities these Nike outlets serve customers with better products. b) Flagship stores Contracts with retail stores have helped the label promote itself through flagship stores where high volume of Nike products are served to customers. c) Nikeid A specific Nike online store catering to worldwide customers d) Big retail discount stores Nike products are also sold through big retail stores where discounts are available for procuring more customers. Promotion- Marketing promotional mix of Nike is effective as because the brand fetches new customers as well as balances out existing customers. The marketing mix works perfectly to balance it. This is one strong point of Nike. Almost any environmental situation Nike has its products offered for such environmental conditions. Print advertising is used by the brand. It is a simple medium but has a strong power to send messages over vast audience. Nike uses any popularly known athelete for the promotion of their products. Their advertising is subtle. Their advertising medium exceeds peoples expectations. Celebrities, commercials and billboards play crucial role in making people aware a of the brand and the offers. Brand awareness is one of the major marketing strategy of Nile. Other mediums of promotion are used like the online ecosystems used majorly. Sponsoring events also helps promote the brand. The brand also sponsors events as a means to promote itself. Events such as the Hoop It Up and the West Invitational use the brand image of Nile, its name and trademark. The primary reason for high revenues to be generated is the name of Nike itself (Ahmed, 2016) . People People are the direct reason why a business is formed. They are directly related to a brand. With research one can discover whether there is enough people in the targets set by a brand who has a demand for such a product. Nike goes through enormous research for its target audience and employees associated. These are the people who deliver world class service for the brand. Nike believes in using all its force to hire the right talent in all its operational segments. These people are trained by skilled professionals and soon they become a genuine part of the organization. A great leap of faith is needed by the employees to push the products to their customers. Such people also acts as a medium to give the company additional feedback for the business (The Marketing Mix, 2015). Process By this it is meant service provision. Service provision is striking a balance in between standardization and customization. All processes which come under the service provision needs a special attention and a special mention. Such process also needs a clear definition by the service providers and it ensures that service delivery made to customers maintain the time and day over and over again. Well defined areas are recognized where customer preferences can be fit in so that they can avail unique experience (Academy, 2016). Physical Evidence Majority of services provided by the company is a physical element which the customer pays for. For example the Nike store makeover can give the client a complete athletic look makeover. Now, some sort of a printed material is given to the customer so as to ascertain the psychical evidence of the process. The location where delivery of service is made also has an impact. The comfort and beauty of the location gives users a great experience. Hence, Nike always focuses on making their stores look out of this world. A great environment with a lot of thought given to shape up the environment provides a secure atmosphere for new consumers. This increases the chances of their return (Resources, 2014). Competency The primary competitor of the brand in the market is Adidas and Reebok. Their products are similar to that of Nikes and hence competition is close. Like Nike products of Adidas and Reebok has evolved with time and become better catering to the needs of the consumers. However the competency of Nike is distinct and unique in the market. The brand must work on creating more brand awareness so customers are more aware and educated about the benefits of the brand. Nike has been already doing this. Nikes attribute of being replicated by any other brand and the value for cost creation makes it stay ahead of the curve from its competitors (Brohi, 2016). Recommendations on Evaluating Marketing Strategies for Nike :- Figuring out needs of the customer The audience can be reached out using the internet in a better manner. Creating very good attractive blogs can help position the brand in the target market. For this one must understand the requirement and upcoming requirement of consumes. One must also be aware of what the goals of the consumers are and what their queries are. Using the web one can provide solution to various needs of the consumer. Today people are finding new ways to be in shape and fit. Nike uses its web resources to smartly position itself. Helping customers achieving their own goals will eventually help reach the goals of the organization. Figuring out mediums to reach customer base- All sorts of marketing and digital marketing efforts made by an organization is to make sure that they can reach out to a broader user base. Today digital marketing is one such tool which makes uses of various platforms of the web to increase brand awareness. Social networks are one such medium. The idea behind all such marketing efforts is to make sure one is present where their customer is present . Compelling content as per customer requirement The best recommended way to reach out to the audience and create a powerful impact. Blogs, social media, video channels and print collateral all mediums can be used to create compelling content addressing customer requirements. Brands like Nike ensure the real needs of their customers by undergoing extensive keyword research and surveys (Moon, 2016). Sponsorship Sports athletes are paid by Nike for promoting and selling their products. This is a great marketing strategy the company uses for promoting their products. Public figures can motivate individuals and sports fans dramatically. This can drive sales to a great extent. Nike must use more such influential faces as an effective marketing tool Innovation One of the core strategies of marketing made by Nike is innovation of its products. Being the leading athletic brand the company must invest into more and more innovative products. Such innovative products will help attract customer attention at once. The brand has to focus more on the evolving world market and consumer preferences. Word of mouth with a purpose Products like the Nike brand are easily identifiable. Such products create great word-of-mouth marketing. Customer choice and emotions are to be given special attention. It helps customers a great way to express themselves. Customers when they relate to the product make word of mouth promotion (Sato, 2015). Pricing Options The pricing strategy of Nike is high. Still people are willing to pay for it. This is because of the high quality of the products of the brand. Prices must be regulated based on consumer groups, needs and backgrounds. For example making kids sports shows cheaper than womens and mens can be a driving force for increased demand (UK Essays, 2016). Emotional Branding The brand strategy. of Nike must be made more powerful. Such powerful brand strategy inspires global audience. Using emotional advertising techniques and using small stories as the basis of advertising, Nike can reach out better with the global customer. By showing how the brand can help one in their everyday life the company can use storytelling as a powerful marketing strategy. This helps build up customer loyalty as well (602 Communications, 2016). SWOT Analysis and Recommendations Strength The primary driving force of the company at the global level are its strength. The leadership of the brand in its products like shoes, apparels and other sports items and equipments has made the brand grow globally. Following are the three strengths of Nike:- a) Strong brand image b) Innovation process is rapid c) Global production is extensive and distribution network is huge. Weakness The growth of the brand sometimes is weakened by some of its internal factors. These are :- a) Controversies with labor b) Product mix sometimes show limitations c) Presence is limited in developing markets Opportunities Following are the strategic external factors that has aided the growth of the brand in the international market :- a) Labour and employment practice improvement b) Better mix of products c)Market presence needs to be enhanced in the various developing countries. Threats Nike being the leader in the market for sports shoes, apparels and equipments, the brand still faces threats that can reduce or have a negative impact in the performance of the brand. a) Competition is tough b) Technological innovation is rapid c) Limitations or restrictions. (Kissinger, 2016) The company has a lot of strengths that can boost it higher in the international market. The entire marketing analysis of its strength, weakness, opportunities and threat show that in certain areas the company needs to reform its strategies. By collaborating with other government institutions the company can safeguard its weak areas. References Academy, P. (2016). Marketing Theories - The 7P's of the Marketing Mix. Professionalacademy.com. Retrieved from: https://www.professionalacademy.com/blogs-and-advice/marketing-theories---the-marketing-mix---from-4-p-s-to-7-p-s Ahmed, R. (2016). Strategic Marketing Plan of Nike. Academia.edu. Retrieved,from :https://www.academia.edu/24175873/Strategic_Marketing_Plan_of_Nike Bhasin, H. (2016). Marketing Mix of Nike. Marketing91.com. Retrieved from :https://www.marketing91.com/marketing-mix-nike/ Brohi, H. (2016). Strategic Marketing Plan of Nike. researchgate.net. Retrieved from :https://www.researchgate.net/publication/299889166_Strategic_Marketing_Plan_of_Nike 602 Communications,. (2016). Nike Brand Strategy: Using Emotional Branding in Nike Advertising | 602 Communications. 602communications.com. Retrieved from :https://602communications.com/2013/02/nike-brand-strategy-emotional-branding-using-the-story-of-heroism/ Gregory, L. (2016). Nike Inc. Marketing Mix (4Ps/Product, Place, Promotion, Price) Analysis - Panmore Institute. Panmore Institute. Retrieved from : https://panmore.com/nike-inc-marketing-mix-4ps-product-place-promotion-price-analysis Kasi,. (2011). Marketing Plan of Nike. Marketing Mixx. Retrieved from :https://marketingmixx.com/marketing-plan-2/164-marketing-plan-of-nike.html Kissinger, D. (2016). Nike Inc. SWOT Analysis Recommendations - Panmore Institute. Panmore Institute. Retrieved from: https://panmore.com/nike-inc-swot-analysis-recommendations Lin, G. (2012). A Successful Marketing Strategy for Nike Inc.. ttqs.evta.gov.tw. Retrieved from: https://ttqs.evta.gov.tw/Column_Files/3ffca119102a4fbdaef5ba32cc9064aa/A%20Successful%20Marketing%20Strategy%20for%20Nike%20Inc.%20The%20Story%20Behind%20and%20Its%20Analysis.pdf Moon, G. (2016). How To Succeed With The Secret Nike Marketing Strategy. CoSchedule Blog. Retrieved from : https://coschedule.com/blog/nike-marketing-strategy/ Report,. (2013). Marketing Plan for Nike's Senior Management | Report Writing Samples | 2Write. 2Write. Retrieved from : https://essayandreportwriting.com/academics/report-writing-samples/marketing-plan-for-nikes-senior-management/ Resources, H. (2014). 7Ps of Marketing | Additional Elements of Marketing mix. Cleverism. Retrieved from: https://www.cleverism.com/7ps-additional-aspects-marketing-mix/ Sato, K. (2015). 3 Nike Marketing Tactics You Should Be Using. Inc.com. Retrieved from: https://www.inc.com/kai-sato/3-nike-marketing-tactics-you-should-be-using.html The Marketing Mix,. (2015). Marketing Mix Definition - 4Ps 7Ps of the Marketing Mix. The Marketing Mix. Retrieved from : https://marketingmix.co.uk/ UK Essays,. (2016). Marketing Management Marketing Strategies Of Nike Marketing Essay. www.ukessays.com. Retrieved from : https://www.ukessays.com/essays/marketing/marketing-management-marketing-strategies-of-nike-marketing-essay.php