International Business: MBA 541 Assignment: 01

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International Business

MBA 541
Assignment: 01

Prepared For
Dr. Md. Mahbub Alam

Prepared By
Maliha Tasnim Jui
ID: 1910638
Table of Contents
Company Overview...............................................................................................................................4
Market Trends and Evolution................................................................................................................5
Consumer Behaviour.............................................................................................................................6
Competition...........................................................................................................................................6
Marketing Strategies.............................................................................................................................7
Environment Analysis-Pest Analysis......................................................................................................8
Market Segmentation............................................................................................................................9
Targeting.............................................................................................................................................10
Market Positioning..............................................................................................................................10
Integrated marketing communication Strategy...................................................................................10
Marketing Mix strategy.......................................................................................................................12
Conclusion & Recommendations.........................................................................................................15
References...........................................................................................................................................15
Executive Summary

Nike is the leading sports shoe and clothing supplier. The state of Oregon laws incorporated
NIKE, Inc. in 1968. It is present everywhere, with its main focus areas in the United States,
Europe, Asia Pacific and America as examples.
The design, growth and international demand and sales of athletic footwear, apparel,
equipment, accessories and services are our main business operation. NIKE is the world's
leading vendor of sports footwear and sportswear. We market our goods to retail accounts,
retail outlets and Web sites owned by NIKE (referred to as our "Consumer Direct"
operations) in nearly all countries through a combination of independent suppliers and
licensees. Virtually all the goods are produced by independent suppliers. Most footwear and
clothing items are manufactured outside of the USA and equipment products both in the
United States and outside the country.
Company Overview
Nike is a US multinational company based in Beaverton, Oregon that is the world's largest
sportswear company. The company is best known for being "one of the world's largest
providers of sport shoes, sporting equipment and equipment." Nike was originally called Blue
Ribbon Sports and was founded in Oregon by Bill Bowerman and Phil Knight in 1964.
(BRS). On September 8, 1969, the company was founded. The corporation was renamed
'Nike Inc.' Moving to 1971, it was renamed "Nike Inc." The Company engages in the
conception, construction, commercialization and distribution of sports shoes, products,
equipment and services. In 52 countries, there are 56,500 workers. Manufacturers
manufacture Nike goods in 45 countries. Products are sold through supermarkets, Nike shops
and online in 190 countries. The goods of the Company are produced by independent
contractors. Nike used to advertise her goods, her approach, the idea which they had to
abandon and modify when they overrun Reebok and became number 1 in the industry (1989),
in the framework of the "guerilla marketing" strategy (remained No. 1 ever since). The
company had to change the whole atmosphere to become "organized" a little more. Through
buying and influencing new markets, Nike has outperformed and distanced all its
competitors: the women's and outdoor markets. As of 2018, the company generated an annual
revenue of 36.397 B$, a rise of 5.96% over 2017 and a growth of 12.4% over 2016.

Environmental Analysis
Nike is one of the world's largest firms. Its strengths are many, but its superior marketing
abilities are the most impressive. Nike has a strong and intense marketing strategy and is
strongly relying on digital marketing. The business has spending $3.2 billion and $3.3 billion
respectively in 2016 and 2017, which has led to more consumers being reached effectively.
Nike is, moreover, one of the world's most recognized brands as the world's largest provider
of apparel to athletes. Her "Just do it" tag line is highly distinguishable and inspires
customers. The giant brand is owned by approximately 45% of US market share, and was
selected in 2016 as the most esteemed 30 out of 100 brands. In addition, Nike products are
produced abroad. In 2018, 47 percent of all Nike products were made in Vietnam, 26% in
China and 21% in Indonesia. In Brazil, India, Argentina, Italy and Mexico, some other
operations were carried out. In addition, the position of the company plays an important role
in the company's performance. Nike currently owns 1182 stores all over the world. 392
American and 790 non-U.S. Though Nike is one of the world's most popular brands, there are
still some internal strategic drivers shooting the business. The bad working conditions in
other countries are one of them.
Such are child labour, low wages and horrible conditions of work which have been
characterized as "insecure." In addition, the organization experienced highly frequent sexual
harassment and misconduct. Some interviews with workers have shown that Nike has an
unpleasant and dangerous toxic working climate. However, the company seems to be
searching for ways to target more clients. This has been shown by its creative products. Nike
still has a lot to innovate, particularly in technology in relation to fitness and health, in
addition to its numerous products. Wearable technology seems to be the first step in
developing new products of technology. Furthermore, in 2008, Nike unveiled a schedule on
energy efficiency with five contract manufacturers. And the company has shown excellent
results with regard to this project: an improvement in output of 9%. While Nike is one of the
world's most powerful companies, the growing competitive pressure continues to threaten the
business. The more brands emerge, the more ads and publicity the business has to invest.
That is why Nike invested nearly $3.5 billion on ads for competition in 2008. Finally, Nike
also threatens to invest more on ads and marketing campaigns from some major rival brands
like Under Armor and Adidas, which bring Nike more under pressure.

Market Trends and Evolution


 Nike's first promotional campaign for product sports was a word of mouth using
professional athletes to increase demand.
 Because of the heavy rivalry with Adidas and Reebok Nike is also increasing its target
market from adolescents to younger consumers.
 Consumers were able to pay for that brand during the recession, because Nike had
superior design, style and durability. Because of its slogan " Just do it" and a strong
product, Nike generates greater sales from its rivals. (Deng 2009) (Deng 2009).
 Digital sport and e-commerce was also introduced in recent years as the technological
trends have changed.
 It launches a Nike+ functioning sensor with Apple Inc. and customizes hi-tech
experiences in other brands such as the fuel brand. (French version of the text, 2014)
 Nike has been launched from time to time with creative advertising, celebrity supports,
profitable associations and event sponsorships for its technologically advanced shoe
designs.
 In this evolving fashion trend, Company still faces many challenges and sales fall into the
category of shoes and intensified competition. However, it tries best to build the right
market place and produce goods according to fashion trends after these changes (Aid,
2005).

Consumer Behaviour
Nike products are now world-famous brands with good advertising and word of mouth, as
consumers want to share their positive opinions with their friends and families. If this Nike
brand is purchased, customers can understand and experience the quality, and see that they
have what they want. Consumers have a well-founded attitude towards the brand and buy a
product that makes you feel relaxed and cool and Nike satisfies everybody. The general
public thinks Nike charges its consumers and income, but that they should decrease the prices
that consumers will purchase their goods. Today everybody needs the comfortable items to
wear, to protect our feet and to keep away from injury without higher-quality shoes. Often
Nike can influence the purchase of the product by customers. Three cultural, social and
personal factors may influence consumers. (Premium product consumer behaviour, 2015). In
the future, young athletes will be Nike's target market. By launching a digital channel to
encourage customers to join it, it has a strong place of influence among young people, so that
it has stronger connections to consumers. (Kearney, 2009)
If a business has a strong relationship with its customers, it must discover the consumer's
needs and desires. Nike has been able to solve their problems within working days, and
customers can solve their problems with the help of our website and e-mails. As Nike does so
through the provision of good customer service and also when customers face some challenge
to send e-mails to Nike to eliminate problems related to their purchase. This has now made
customers aware of Nike's positive image, which will enhance their buying decisions and
attitudes towards Nike products. (Nike's consumer decision-making phase, 2015).

Competition
Nike's main rivals are always Reebok and Adidas, and their products do not vary completely
from Nike's products like all the products involved in the design and promotion of both sport
footwear and fitness, but Nike has distinctive distinction and marketing competence. Nike
constantly raises awareness of the consumer brand and has a good brand influence and
positioned itself on the market for a long time.
Nike has the No. 1 seat and cannot be easily substituted by his rivals due to the long standing
slogan "Just Do It" and to the "Swoosh" marks and their sports icons. There are two
important qualities that distinguish Nike's competence: its inability to be repeated and its
merit or advantage. Since Nike is the integral part of American and international culture,
brand influence is fundamentally expanded and hard to duplicate. Few companies like Nike
have such an image and resources as Nike. As Nike motivates "Just Do It" with Marketing
Strategies that focus on the health, competitiveness and sportsmanship, customers have the
high quality goods and a sense of trust that helps younger consumers prosper. (Deng 2009).

Marketing Strategies
Todd Boyd, professor of critical studies in USC School of Film and TV, said that Nike is the
primary representative of how we sell and promote and overdo all these days.
The organization, as Knight described, was initially guerrilla marketers. They concentrated
on emotional commercialisation. Nike's most announcements say an athlete's tale. The
product is seldom shown. Their first plan was to work with young star athletes; Michael
Jordan was nothing else. Everything began with Jordan's right shoes, his lucky must-have
pair. Then work with Woods; "Hello, World." Of course, the enlargement of their section was
a significant move. Woods was a reader, not only of the mediums, but also of ethnicity and
race, of African and American origin, of Chinese, of Americans, of Indians, of Thai and of
white. He was an iconic "trailblazer for race."
Knight early caught up with the right trend; he combined the pop with sports at the time. He
sold the picture of American heroes, which inspired successful history. Most of his goods he
added a life-line. He focused on charismatic athletes who were primarily outspoken. Most
commercials also do not show the product; shoes. Around the same time, the brand name of
the Nike Swoosh was all-around. The brand image and logo were developed successfully.
Nike.corp has participated in the sport industry at several major events. In order to increase
the view, creative interactive concepts are typically created to attract the consumer and
generate the spirit. For example, the 2014 FIFA World Cup 'Nike phenomenal shot' was a
huge success. Nike shoes were also worn on 94 of the 150 goals scored at the 2018 World
Cup, and noticed that the French team was sponsored by Nike. Even the two-star shirt was
Beyoncé and Jay-Z. Everything around Nike was. Moreover, Nike used social media to its
full benefit. Besides their popular YouTube moving ads. In 2016, a new YouTube series was
launched; Margot vs. Lily.
This was successful, it was close to daily life and it showed that people are really struggling
with the latest trends in fitness while still demonstrating how important it is to keep the
balance. In addition, they create funny viewing ads people enjoy and share. For example,
more than 107.8 million views were created by the ad 'Winner Stays.' "Find your grandeur"
(2012) also was a very popular campaign (link). Nike, however, reacts greatly to twitter. You
normally share or respond funnily or carefully to customer messages. In addition, Nike is
continuously pursuing creativity and technical advancement. Several examples, from the
Nike with iPod in 2006, the innovative footwear technique in 2012 to self-laying shoes with
higher affordability in 2019, for Nike's impressive R&D. Nonetheless, at the beginning of the
year, new running shoes will be launched. Nike organized an immersive meeting where
consumers would experiment with various items and have their own people in a video game;
(link). The conference focused on social media with fascinating experience and gaming. Or
the limitless stadium with your avatar was an ingenious campaign in Philippine (for more
info, link). Nike was the industry leader for many other incentives. Nike is very interested in
neighbourhoods, on the other hand. They work with over 60 organizations to build worldwide
effects. They have amazing gender equity campaigns, LGBTQ rights and much more. They
have a dedicated page called Nike Women on YouTube, for example. And it's not just
women's goods. Rather, it promotes the portrayal of feminist athletes, showing the
significance and accomplishments of women in societies. You will find advertising in over 20
languages, how women in underdeveloped communities can play whatever part they want.
"Women who move around the world" and "children have to play," and "the ball should
bump the same for everyone" are all demanding names in the campaign. Nike not only starts
to raise awareness about promotional campaigns but actual programs. All began with a
reaction to Nike's aggressive criticism of his discriminatory production practices. But Nike
continued on CSR and also developed other ventures to gain loyalty to its customers. The
famous Kaepernick example, which aligns with its values. Still Trump commented about
burning Nike's goods and people filmed videos. Sales rose by 31 percent during Labor Day
2017. It was evidence enough that Nike invests in all marketing campaigns.

Environment Analysis-Pest Analysis


Political
 Workers' interests and regulations impact the Nike's internal procedures
 It has constructive policy from the government to promote its prospects for growth in the
United States, in particular.
 Nike himself deals with the legal problems around him and
 Nike will take help with the production of the goods both from the government and from
foreign countries that have friendly ties with Nike.
Economic
 Nike has other company’s endorsement.
 Nike could create new jobs if their economy grows higher.
 Consumers can be affected and consumer interest in Nike products may be reduced
because of economic downturn.
 Nike's commodity could have currency risk, interest and exchange rates.
 Rising commodity prices and labour costs can also impact on Nike's product revenues in
producing and outsourcing countries to increase living standards.

Social
 Consumers become more loyal to the brand and are aware of the benefits for Nike.
 Lifestyle changes - fitness literacy, sport participation that increases sport product’s
demand.
 Nike may also benefit from an increased market share for female customers.
 There are diversified consumer interest and demand and Nike will expand its product
range.

Technological
 Nike is affected by new technology because it is incorporated into its products.
 It produces highly innovative products such as shoe construction/design via
technology.
 It will build a smartphone app and various sites from which consumers can make
digital shopping online. (Edson, 2002).

Market Segmentation
It has following segmentation to create consumers groups to target:
Demographics segmentation: Nike has segmented a population of men and women aged
between 15 and 55, which means that it has goods that suit both males and females.
Psychographics and Behavioural segmentation: Nike has this section to explain why
customers need their goods as well as what interests and buying preferences consumers have.
With regard to Nike, the business is therefore comprised of:
 Sports or athletic oriented.
 Active lifestyle (interest in fitness and exercise for recreation).
Geographic segmentation: Nike is thus able to reach its target consumers worldwide in a
segmentation. It has major markets in the USA, Asia-Pacific Europe and Africa, but its goal
remains constant to provide catering for other markets, such as North America, China, Japan
and the Middle East. (Professional Services, 2016).

Targeting
Nike has a niche market which focuses on and focuses on athletes and sports people and
provides them with the necessary products, such as shoes and clothing that possess very
specific and unique features in comparison with other shoe products. Nike's certain objectives
are as follows:
Its goal strategies include aggressive marketing to make its customers aware of its product,
like Nike to have its target buyers able to customize their preferred items, as an athlete's own
signature shoe is sold, which enables Michael Jordan to have its Jordan shoes brand.
In addition, it aims to sponsor the products through the sports team or through celebrities. Its
goal is to style its product through psychological strategies on the target market by
connecting triumph to clothing that is seen as a victory by sponsors. (Nike's marketing
approach)
Another technique is Nike cross training, which was created in 1989, and which includes all
athletes worldwide and trains various sporting activities which have also been developed in
order to fulfil their target market.

Market Positioning
Nike has become a pioneer in athletic products in the minds of its target consumers. It has
developed these products that satisfy all sports-related products on its niche market. Its
slogan, just it, has called on consumers to acquire a product that has become a leading
competition in the athletic industry with a sense of inspiration and trust. For each serious
athlete, Nike offers ideal shoes or sports items that provide trust for all sports activities.
Nike has following positioning strategies
• Enhancing athletic lifestyle or fantasy in consumers mind
• Appealing style and attitude
• Positions itself as premium brand with well-designed products
• Appealing quality level and valuable products
Integrated marketing communication Strategy
 Advertising: In the promotional sector, Nike's own goal is to maximize its effect on the
target audience's vast populations. Typically, these commercials are costly. A good brand
image of Nike products will, however, reap the benefits and high demand successfully.
Nike uses famous people to portray customers' products or the ideal consumer. Extremely
famous celebrities such as athletes used to sell the goods of Nike. Objective consumers
watch the goods of the business from their favourite celebrities. As a result, the behaviour
of these celebrities is imitated by consumers. Via a marketing communication blend
known as ad figure, Nike promotes customers' goods to mimic the famous celebrities how
to inspire you (Nike Marketing Communication).
As brand ambassadors of Nike, Brazil's football teams including Nike in particular
Ronaldo and Roberto Carlos are numerous athletes, LeBron James, Tiger Woods and
Lance, and Armstrong cycling are used by Nike as the celebration's support strategy. Nike
relies on the sportsman of other countries as Brand Ambassador in order to raise the
awareness of its offers to its all target consumers in all countries (marketing-mix-Nike).
 Personal Selling: Nike has personal promotional campaigns in the shops for this IMC
strategy. The stores give customers assistance in learning about and buying the goods of
the business. Sales staff also help customers find the right items by offering customized
service to encourage the company. The customer experience was built by professional
staff to support and convince sales. Buying Nike products makes customers feel fine.
They also market the goods that are best for consumers. The combination of marketing
contact from Nike thus increases customer service when advertising products of the brand
and uses personal sales to create relationships with consumers (Nike marketing
communications-mix).
 Direct Marketing: To sell new products on the target market, Nike uses direct
marketing. The new goods are normally highly publicized. In order to make a bigger
impact, however, the firm uses sellers in the target market segments to approach those
organizations or individuals. When the Nike approaches sports associations in universities
to market their products. The marketing communications mix from Nike uses direct
marketing to strengthen relationships with consumers and to encourage them to buy the
products of the brand. It uses direct marketing to get into the target market new goods.
Normal strong ads for these new goods. The business can however use any of the
companies or individuals near to the seller in the target market segment to advertise the
product to its customers for greater effect. (Nike communications marketing mix).
 Sales Promotions: Coupons and promotional discounts are included in Nike's sales deals
for consumers. The features and advantages of this product industry can be that
promotional discounts can help consumers save, and new items are sold to customers
using special deals, which show sales promotions that inspire customers. The marketing
mix uses promotional incentives anywhere Nike wants to draw new consumers to
increase demand, so they are inspired to purchase Nike products on the basis of perceived
benefits (Nike marketing communications-mix).
 Public Relations: Nike never used public relations as a marketing combination or IMC
approach. The corporation relies on social issues like the use of workshops and green
technologies that cope with public relations. In some cases, Nike will fund related
charitable events and public relations. This is the Nike contact blend between current and
potentially marketing consumers so that they better understand the brand, use the brand to
solve challenges and encourage public relations (Nike marketing communications-mix).
 Social Media: Nike is one of the world's largest brands, and so social media has been a
huge surprise. It is expected that this IMC strategy will be achieved, but the social content
budget is huge. Nike can extend its social media as a sports company to create a mood
that is significant. In particular, it can improve Nike's social media strategy to align with
the way the consumer receives promotions, particularly for new technology-based or
current products. With regard to promoting the latest Nike 6.0 collection, social media
should be used to promote their dance shoes and parkour. Recently, Nike has used some
mixed social media contact to promote goods where consumers can use the campaign by
sharing images on the social platform call this population-based youth their sport skills by
posting them, where winners earn 500 dollars in cash or scholarship.

Marketing Mix strategy


Nike is a marketing leader with the best marketing blend. It's depending in particular on Pull's
strategy; it's seized major competitors like Reebok and Adidas.
Product: Nike sells a variety of items, including shoes, clothing and appliances. These are
now the best-selling brands, garments and equipment for the sports product categories. Nike's
first product is running slippers. It provides a wide variety of sports merchandise including
cricket shoes, shirts, and shorts as well as athletics, baseball, ice hockey, tennis, football,
lacrosse and basketball. For the first time in 1987 Nike NYX and Nike SB shoes were sold.
Nike Air Jordan XX3, a high performance basketball shoe for the environment, was launched
in 2008. (4P of Nike). Nike also provides basketball, golf, skateboarding, soccer, football,
cycling, volleyball, boxing, cheerleading, water sporting and selling shoes for racing and
other athletic events as well as outdoor activities, for leisure purposes.
Recent products: Cricket shoes are built to be lighter than their rivales Air Zoom Yorker and
Nike Air Max for the last addition to their Nike 6.0 line skating. Nike has recently launched
Cricket shoes. Nike has just tracked a corridor on the radio that links Nano to iPod to produce
Nike + Apple Inc. in conjunction with the team, while the product creates valuable statistics
and allows consumers to gain value from the product (4P of Nike). NIKEiD is a company
subsidiary, which enables customers to design personalized Nike footwear by offering the
customer a range of shoes, various colors and materials, whatever area of the shoes they
want. This adaptation enables clients to produce various designs in large amounts. Customers
may not have to design their own shoes, but they have plans to purchase a range of
prefabricated designs. Customization of NIKEiD's and deals on the Nike website are
available (NikeID).
Pricing: This form shall influence the price of a commodity. The product will be sold. The
pricing policy of Nike is considered sustainable rather than that of other distributors. The
price is focused on a premium category that targets consumers. A high premium is
commanded by Nike's brand. Pricing strategy uses vertical integration to monitor the cost and
effect of commodity price at different channel levels or to play a role at operational level
across more than one channel (Marketing mix of Nike) Nike has become so well-known that
for premium goods, most consumers can pay more dollars. That is why, rather than their
rivals, Nike uses low pricing for costs/values. Nike's target buyers are niche customers, who
almost have the financial resources to use the commodity, for example, costly clothing. This
means that the customer wishes to purchase Nike further. However, this would be impossible
for price increases without a high equity brand like Nike (Blogspot). Nike's new pricing
policy is like it will continue to be used. Nike's existing customers now specify their
willingness to pay for the product's costs in order to guarantee Nike's quality and service.
Based on the services provided by Nike, the quality of the services can be compared at
competitive rates and the prices are reasonably charged (Nike Marketing Plan).
Place/Distribution: Other multi-brand shops and exclusive Nike shops are granted Nike
shoes worldwide. Nike has about 20,000 distribution accounts in the United States and sells
their goods world-wide in about 200 countries. Independent dealers, permits and subsidies
distribute Nike goods on the foreign market. The company has worldwide and asian
production plants, customer services and other operating departments (Nike Marketing Mix).
Nike expects to open more businesses and franchises in the long term so that it can meet
target consumers and maximize buyers. Shops in Nike Town sell sheep displays with enough
interest to do it. The city stores of Nike will take all the blocks of the city and its customers
feel focused towards the future. These involve simple shops made of Nike products during
each candlestick. The product of Nike town provides an extensive experience. This store has
all the items, but will not remain there to build an unforgettable customer experience to bring
back (Nike 4PS). Nike has separate dealers, permits and subsidiaries selling its goods on the
international market. It has an outsourcing policy from Asia's developing countries, such as
Vietnam with China, to reduce costs of Nike's goods. And to do more business online
because Nike tradition is as expensive as ads in the online market, e-commerce and on-line
marketing inputs are expected to broaden suitable channels (Nike Marketing Plan).
Nike has some specific distribution outlets and use them for distribution of its products,
following are the major ones:

 Nike town shop: Nike's stores serve consumers with goods in large cities of countries.
 Flagship stores: Nike has entered into a deal with retail stores with a Nike flagship label
that serves customers with the high volume of Nike products
 Nikeid: It's a website in Nike's online shop serving customization services to consumers
worldwide.
 Huge retail discount shops: The large shops in the country often serve Nike items for
target customers with high demand.
All these have availability of Nike’s products; consumers who want Nike’s products can get
required products from these distribution methods of Nike.
Promotion: The marketing contact mix is efficient because Nike recruits new customers and
balances current customers (nike marketing communications-mix). That's one of Nike's
strengths. In almost every man-known setting, Nike has launched its offers and is extremely
responsive. Easy, but send a strong message to Print advertising. There is almost no ad on
their price, and Nike uses a famous athlete to advertise his product almost always. The
publicity exceeds everyone's standards with these shoes and can show the growth of
consumers (nike 4p). Promoting Nike is the best way to help its target customer learn about
its products. Nike uses publicity, celebrations and billboards. However, Nike needs other
ways to promote new items. The maxi environment can then be used and a brand
consciousness can be created. The implications of marketing are that Nike is an online
ecosystem marketing technique. This means that Nike prepares himself to slash television,
print and social media advertisements (Nike Marketing Plan).
Implementation, Control and Contingency Plan
With the supervision of top management procedures and proper guidance to all departments
of organization, Nike can assure its correct marketing plan. Nike's priorities can be corrected
by checking and balance the company's share of the market, benefit, revenue, budget and
ongoing review of all divisions in order to execute the marketing strategy and to achieve its
goals. The marketing strategy will also be implemented in a timely manner with less errors by
establishing the milestones, budget and departmental selection to work on marketing
communication goals, platforms and analysis. If the marketing planning execution does not
satisfy the requirements provided by any of the set guidelines and regulating procedures, the
alternative marketing strategy will include Backhouse tools, new design and communications
remedies, the redefinition or re-design of the marketing plan and strategies.

Conclusion & Recommendations


The study of the market and business shows that Nike has a capacity to achieve its goals,
offer and increase its share of new products, so that the following are suggested by looking at
the overall strategies and goals of Nike:
 It should extend its product portfolio to include aerobics or parkour products
 It should improve its communication methods of marketing through the use of social
communication
 It can work together with Apple to incorporate gamepads with football, golf, etc.
 It can be properly managed to control the work problems.
 It can provide online video training sessions for athletes and raise their awareness of their
products
 Nike could combine and take on a long-lasting sustainable growth through Nike's global
business portfolio with other companies to broaden its business and execute its 2015
global growth strategy.

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