Integration, Incentives, and Innovation of Nikes Strategy - Case Study Example

Nike Company Marketing Plan

Introduction

William Jay Boweman and Philip H. Knight (CNN Money, 2016) founded Nike Company in 1964. Nike is the most renowned apparels and athletic shoes supplier. Nike is a global brand. It principal areas of target comprise of Europe, USA, Americas, and Asia Pacific. The Nike business has attained a massive position in the market in these areas. This can be attributed to the attractive, innovative design and quality product production. The business also has wise strategies of marketing.

Nike originally operated as a Japanese shoemaker supplier. The profile of the company developed rapidly and subsequently attained a renowned market position. Furthermore, Nike achieved more than 50% market share in the international market in 1980.

The Nike Company athletic footwear is designed for distinct use in athletics. Nonetheless, a large products’ percentage are worn casually or for the purposes of leisure. The company also markets products for children as well as for other recreational uses in athletics such as golf, cricket, and baseball. The Nike Company sells a performance equipment line under the Nike brand name. This encompasses bags, eyewear, sport balls, socks, and equipment of protection. Nike also sells small amounts of diverse products of plastic.

Analysis of the current situation into which the product is to be marketed

The management of the company analyzes its internal environment and makes decisions in regards to analysis. Due to the marketing research of the company, Nike has opted to revamp its division of apparel to be more fashion savvy. Due to the research of pricing and product, the company Nike has opted to continue emphasizing on the high-end market while augmenting its share of the market in the ranges of middle and low price in an effort to widen the product spectrum of the company.

Externally, the failure of Nike to predict looming issues in regards to conditions of labor and factory at locations of the product has resulted to bad publicity and diminishing sales of the company as the consumers and society calls for companies they consider being more socially responsible.

Currently, digital product has been on the center of the marketing efforts of Nike. It has gone hi-tech with its pursuit into e-commerce and digital sport. Other products such as the Nike Fuel band are personalizing the customer or the hi-tech experience. This product tracks the workouts intensity and even inspires the wearers among its consumers. These products are an appeal to athletes and non-athletes. The digital push offers Nike the chance to engage directly with the consumer. Digital initiatives are particularly appealing to the younger consumers. They also offer feedback that is invaluable to the firm regarding the general experience of the consumer.A clear statement of the one primary objective that the plan is ended to accomplish. 

The company has established corporate goals and objectives in regards to its apparent corporate responsibility. The objective of the company is to lead corporate citizenship through initiatives that reflect its care to the world, the consumers, teammates and those entities that offer services to Nike. The objective of this plan is to meet the two requirements of being measurable and having a frame of time in which to attain the stated objective.A discussion of the target audience and intended positioning for the product

The Nike Company has a massive range in its target market. It has a broad range of diverse products that each target and appeal to a particular group of individuals. The focus of the company is to meet the needs of individuals of all ages belonging to various categories. This strategy of the company has made it to attain maximum profit and customers’ number.

The Nike Company has also been focusing on women consumers. With the aim of guaranteeing growth in the future, the young athletes are also a huge part of its strategies of sales, particularly in categories such as basketball, soccer, and running. In the future, these young athletes will form the target market of the company.The general marketing mix strategies that will be utilized to accomplish the stated objective

Various strategies of the marketing mix can be utilized. These marketing mix strategies are outlined below.

Product

Nike provides a broad range of athletic footwear that is designed for sports and day-to-day use (Neiderhauser, 2013). Currently however, the company produces other equipment specifically meant for activities of sport such as eyewear and sport balls. The products of the company meet all the needs of all types of consumers. The facilities of production are very close to the raw material to have low prices of labor.

Price

Nike has designed its structure of pricing in a way so that it will be in competition with other sellers like Adidas and Converse. The product prices vary depending on the season, size, and type of the shoes’ pair. The company provides products at prices that are subsidized, an objective that the company initially started with. In the time of its conception, its focus was to break sport domination of Germany in the industry of sport shoe.

Placement

The company has its individual stores. Additionally, it also sold in department stores and in malls. In the USA alone, the company has more than twenty thousand retailers. It also has multiple retailers in other two hundred nations. In general, the mission of the company is to make its products accessible worldwide. In almost every nation, Nike has units of production and customer service.

Promotion

In regards to promotion, Nike utilizes the media such as the internet, television magazines and newspapers in order to promote their brand (Neiderhauser, 2013). Most renowned athletes have worked in collaboration with the company. A case in point is Usain Bolt. The business segment of the company promotes events of sports and takes part in some projects. The swoosh logo of the Nike brand and its image, play a significant advertisement role. This consequently makes Nike to be acknowledged internationally.

Strategy ideas for the Nike Company

The company’s strategy of marketing rests entirely upon the image of the product that is favorable and permits it to develop into one of the best multinational firms after some duration. The favorable product icon of Nike should be hopeful because of the sordid correlation with the logo of the company that is unique as well as the slogan of the product that has been utilized in commercials for a long period (Porteous, & Rammohan, 2013). The marketing Nike strategy should invest a lot in the promotion of its products and commercials.

The company should also segment its market since sportsmen are the main Nike products’ consumers. This is due to the usefulness that goes in line with the company items. It is possible for an athlete or sports personality to choose a shoe that is marketed by a company instead of individuals that detest both sports and exercises. Nike should focus on these customers by consensus means between the sports team and company. Through this, the company will have the ability to reach a wide number of both clients and consumers who are more likely to purchase. A company pays a specific emphatic focus to the sportsmen as compared to some people even if clients and consumers are likely to purchase the products.

Strategies of pricing

Since the company focuses on the consumers that embrace closeness and understanding of the product, therefore it heeds less concerning the product. This will give room for Nike to set quite surged cost that its rivalry. This strategy of marketing will call for superior points of pricing to push the supposed product value.

Targeting strategies

The Nike Company should lay multiple strategies to focus on the immediate athletes, users and other sportsmen. These techniques of targeting should encompass sponsorship of products by professionals and acknowledged athletic team and college team of sports. This targeting strategy will be especially fruitful due to its ability to reach numerous athletes. Once the manager of a sports team puts on specific type of track shoes that are manufactured by the Nike Company, the learners are left with no option other than to purchase these shoes. Further, the sports team can purchase these track shoes in large numbers and deliver them to the team members.

Strategies of distribution

This marketing strategy embraced by numerous organizations can either offer a market frame for Nike or make it insulate the frontrunner of the market. The more reliable the production distribution of the company will be, the more the improved sales and consequently augmented profits.

Delivery of the product at the stipulated time to the consumers will result to an increased satisfaction and loyalty of the customer. The Nike Company should distribute its base of items in level terms. The premium items with increased costs should be given to specific distributors. Low priced products should be traded at prices that are discounted at diverse retail stores. Therefore, the Nike Company should venture more into the capitalization of the world market.

In general, the Nike marketing strategy should show a competitive management of marketing which can hoist it up to be leaders in the market and also making them maintain their competitive market frame by means of devoting themselves to the principles and plans of marketing, and also strategies of planned marketing.

Grant Chart for the Implementation Plan

July 2016- September 2016

October 2016 – May 2017

June 2017 - onwards

Review of operations

Implement new strategies

Evaluate results

Conclusion

To conclude, the Nike Company is an organization rooted in competition. The company dominates its competitors through equipping athletes with the finest equipment of sports globally to constantly advancing its own fiscal performance. One of Nike’s greatest emphases is the quality and innovation of their products that help athletes attain greater goals. This company philosophy has assisted both stakeholders and athletes to realize fiscal and athletic prominence. However, in order to improve further, this study recommends a number of strategies for the company. A case in point is distribution strategies outlined in this study. This strategy can provide a market frame for the company. The more reliable the production distribution of the company will be, the more the improved sales and consequently augmented profits.

In sum, regardless of the transforming place in the market for athletic footwear, the company should continue expanding their lines of products and marketing reach to become a more powerful brand all over the world.