The Overall Marketing Mix of Nike - Essay Example

Introduction Marketing Mix is one of the basic concepts in Marketing and outlines certain elements which need to be put together in order to ensure that marketing efforts are right in place. The marketing mix is often used as an important strategic tool to decide about the overall product offering. By combining important elements of product, pricing, placement and promotion, a well designed marketing mix ensures that overall offering by the organization serves its purpose. It is also critical to note that a well designed and executed marketing mix strategy can actually help improve the brand image besides helping organizations to become more flexible and customer focused. Nike is one of the leading companies in the world primarily engaged in the design, manufacturing and marketing/sale of footwear, sportswear, apparel, equipment, accessories and other related products. Nike is an American organization and is headquartered in Oregon, US however, its operations are spread across the globe. It is considered as one of the pioneers in the field of marketing and its overall marketing mix is considered as one of the most successful in the industry. The overall marketing strategy of Nike is considered as creative and aggressive with focus on exceeding the overall expectations of the customers. As such, Nike has emerged as one of the most important organizations in terms of their creative market strategy and its execution. This paper will therefore discuss and explore the marketing mix of Nike and will discuss as to how the various elements of the marketing mix actually affect the organization’s strategy and tactics. Marketing Mix of Nike Considering the overall marketing strategy of Nike, it is evident that it is driven by the superior marketing strategies and a strong brand image. Over the period of time, Nike has been able to dominate the overall marketing sphere at the global level. Nike’s Swoosh mark has been one of the top brand images in the world and continue to project an aggressive and creative marketing drive of Nike. Product Nike’s overall product range is diversified in nature and comprises of sportswear, footwear, sports equipments, clothing and other items. This diversified range of product is however, limited to the sports related activities and Nike has been actively pursuing the strategy to further penetrate into the sports market. Recently, Nike has also entered into the strategic alliance with Apple Inc to offer Nike+ and other apps which can be used with the Apple’s products such as iPod as well as the iPhone. The overall product range of Nike is based upon use of high quality material and excellent designing and development of the overall product range. Nike combines aesthetics with the design and offers a combination of both in unique manner. It is also because of this reason that Nike has been using aggressive marketing of its products and is charging premium prices owing to better quality of its products. Further, Nike combines its product through different delivery channels to offer a holistic experience to its customers in unique manner. (Pride & Ferrell, 2009) It is also critical to note that Nike extensively use new and innovative technology while designing and manufacturing its products. The air cushions in the shoes, sweat resistant clothing as well as other products are technologically more advanced and superior than what is being produced and marketed by the competitors. Pricing The overall pricing of Nike’s products is based upon premium segment of the market as Nike usually targets high income customers. It is however, important to note that Nike’s pricing is considered as competitive as compared to other sportswear and fashion stores. The nearest competition of Nike in sportswear is Adidas as well as the Reebok however; Nike’s pricing of the products is relatively higher as compared to the competitors. Due to premium pricing of Nike’s products, its overall focus in marketing is based upon aggressively and creatively designed marketing campaigns. Nike is able to charge the premium prices due to its vertically integrated nature. Nike has been participating at various stages in its overall value chain in order to control the cost and charge the premium prices. It is also important to note that the overall pricing of Nike’s products is based upon the actual sizes as well as the type of the products. There exist variations in the overall pricing structure of products even belonging to same product range. Price ranges are however, based upon the range of product being sold and according to the market served i.e. sportswear for children, adults, walking shoes, running shoes etc. Placement The overall placement strategy of Nike is based upon using multiple channels to sell its products to its target market. Nike owns its own flagship stores which are being run by Nike as standalone stores. Apart from this, Nike’s products are also being marketed through other superstores and large shopping malls. Nike also manages an active online delivery channel thus increasing its overall depth and penetration within the market. The overall design of the Nike’s own stores suggests that Nike develops its stores based upon certain themes and follow them. By having large stores, Nike attempt to offer a different shopping experience to its customers through effective in-store sales facilitation. There are more than 20000 retailers selling Nike products across in approximately 200 countries suggesting that Nike has stronger presence at global level. What is also important to note that Nike’s supply chain is spread across the globe. Its production units, distribution centers as well as stores are spread globally in different countries. Nike also extensively follows the outsourcing of its manufacturing activities to developing countries in order to manage its costs. (Kotler, 2008) The Nike factories are spread in countries like Pakistan, Bangladesh and other developing countries. Nike pursues this policy in order to reduce its costs and sell out the products at premium to gain higher level of margins. Placement strategy therefore offers Nike an opportunity to improve its margins by clever design of its overall distribution network. Promotion One of the key elements of Nike’s overall marketing effort is its extensive promotion strategy at global level. Nike engages into aggressive promotion activities and in order to achieve its overall marketing objectives also formulate the strategic alliances. Nike’s alliance with Apple has been successful as Nike offers Nike+ in order to help iPhone and iPod users to actually track their fitness activities. Apart from this, Nike also offers free online training programs to help its customers to achieve better fitness and health. What is however, more critical about the overall promotion activities of Nike is its focus on the formation of strategic partnerships with important celebrities. Nike has been an sponsor at the high profile sporting events and have regularly featured in Olympics as one of the leading sponsors of the events. The Nike logo Swoosh is being strategically used to ensure that it gains maximum exposure to the target premium audience. Apart from this, Nike also engages into the in-store sales and discounts frequently thus offering an opportunity to a larger audience base to buy Nike products. Generally, Nike products are highly priced however, with annual sales, prices are slashed to help a wider level of customers to purchase Nike products. The overall promotional activities of Nike are directed towards invoking strong emotional experience in terms of achieve physical fitness as well as the adequate level of health. Besides, Nike has also been promoting sports and using the same for promoting its brand image across the world. It has been sponsoring high profile events such as football world Cups, Tennis Tournament etc. (Chadwick, 2007) Conclusion The overall marketing mix of Nike is well balanced and each element supports other elements in the mix. Nike produces and markets the premium sportswear and other sports and fitness related products and services. Due to the overall quality offered and the brand image of Nike, it has been able to charge premium prices on all its products. Nike has been able to achieve better margins by outsourcing its manufacturing activities to other countries. This allows it to focus extensively on the marketing side of the business while at the same time, ensuring that Nike produces quality products. The overall distribution channels of Nike are well diversified geographically across the whole world. It sells through its own flagship stores while at the same time partnering with larger superstores and mega shopping malls to offer its products and services. It operates over 20,000 stores across 200 countries which indicate that Nike has a well diversified portfolio in terms of its geographical presence at global level. Nike however, extensively pursues its promotion strategy in order to improve its overall brand image. It focuses upon associating itself with high profile celebrities including sports person and actors. Nike has also been active sponsor in the large global sports event. Nike has been featuring in Olympic Games, football world cups, tennis tournaments as well as other sporting events. This indicates that the overall policy of Nike is well developed and has been executed extensively at the global level. Bibliography Chadwick, B. J. (2007). The Marketing of Sports. London: Pearson. Kotler, P. (2008). Principles of Marketing. New York: Peasrson. Pride, W. M., & Ferrell, O. C. (2009). Marketing. London: Cengage Learning, . Read More