Developing a Marketing Plan

NIKE CORP
                                                           Deadline 22h (6/1)
I. Executive Summary
1. General information
 Company profile (giới thiệu doanh nghiệp): 
 thông tin chung ( Thùy Dương)
 liệt kê mục tiêu
 mission, vision and core values (Thùy Dương)
2. Marcro-environment (Mai)
2.1 Economic element
2.2 Legal element
2.3 Technology element
2.4 Culture element
1. Mirco-environment ( PLinh)
3.1 Customers
3.2 Partners
3.3 Competitiors
II. Marketing Situation
 thực trạng
 Current marketing strategy
 Market segmentation, targeting, and positioning
 Current marketing mix


=> 1 người: Thùy Dương

III. SWOT ( threats, opportunities, weaks, strengths)
=> Thủy Dương
IV. Objective, Goals and issues 

1
 => Nga
V. Marketing Strategy
 xác định thị trường mục tiêu (segment, target, position
 marketing mix
 hành vi người tiêu dùng
 Customer needs
 Proposition
 Market penetration strategy
 Marketing mix 
 Product
 Price
 Place
 Promotion
=> 1-2 người( plinh+mai)
VI. Action Programs, Budgets 
 lập bảng
=> 1 người (my+Nga)
VII. Controls (My)
VIII. Conclusion (Thủy Dương)
=> 1 người 

Mọi người thống nhất sử dụng trích nguồn Harvard nhé

Sau khi hoàn thành các phần Dương sẽ edit lại file word hoàn chỉnh

 Màu cam là phần Plinh bổ sung . Mn thấy chưa ổn thì có thể xóa đi nha!

2
I. Executive Summary
1. Introduction about Nike company
Nike, Inc., formerly Blue Ribbon Sports, American sportswear company
headquartered in Beaverton, Oregon.It was founded in 1964 as Blue Ribbon Sports by
Bill Bowerman, a track-and-field coach at the University of Oregon, and his former
student Phil Knight.They opened their first retail outlet in 1966 and launched the Nike
brand shoe in 1972.The company was renamed Nike, Inc., in 1978 and went public
two years later.By the early 21st century, Nike had retail outlets and distributors in
more than 170 countries, and its logo-a curved check mark called the “swoosh”—was
recognized throughout the world.
Since the late 1980s, Nike has steadily expanded its business and diversified its
product range through numerous acquisitions, including shoe company Cole Haan
(sold in 1988 and 2012) and sporting goods manufacturer Converse (2003). Did.
1994.). Later called Bauer and sold in 2008) and sportswear and equipment company
Umbro (2008; sold in 2012). In 1996, Nike founded ACG (“all conditions gear”) to
sell products for extreme sports such as snowboards and mountain bikes. At the
beginning of the 21st century, Nike began selling sports technology accessories such
as wearable heart rate monitors and wrist altitude compasses. Part of Nike's success is
due to the support of athletes such as Michael Jordan, Mia Hamm, Roger Federer and
Tiger Woods. First opened in 1990, the Nike Town chain offers consumers all kinds
of Nike products in honor of the spokespersons of these and other companies. In the
1990s, the company's image temporarily suffered exposure to poor working
conditions at overseas factories.

2. Nike’s mission
Nike's focus on fashion-conscious women is to lead the athleisure trend, increase
advertising, and launch the #BetterForIt social media campaign. We need to focus on
athleisure trends by expanding our portfolio of women in the target market. Athleisure

3
 already accounts for 20% of the company's sales, and it should be recognized that
women are leading the fashion movement. Under Armor and Lululemon are already
making progress in this fashion-focused market. We need to emphasize athletic
technology that promotes lighter fabrics and better performance while maintaining a
level of comfort and fashion. Adding to a portfolio makes no sense unless the female
knows that we did it. Nike needs to increase advertising specifically for this target
market. The #BetterForIt campaign is an important part of this promotion. Similar
campaigns aim to promote and "normalize" sportswear in everyday life.
“Over the next five years, we will bring our purpose to life through 29 targets focused on
people, planet and play.” Nike media representative said.50%female representatives and
45% of managers in the workforce of global companies The global corporate
workforce includes all full-time global employees who are not working at retail stores,
distribution centers, or Nike Air Manufacturing Innovation (AIR MI). Leading
positions include Vice President and above. 35% of US Racial and Minority
Representatives in the US Corporate Workforce The US corporate workforce includes
retailers, distribution centers, and all U.S. residents who do not work at Nike Air
Manufacturing Innovation (AIR MI). Is included. 100% of our strategic suppliers are
building world-class safe and healthy workplaces for the people who manufacture our
products. Strategic supplier: Strategic finished product supplier; a supplier that
accounts for about 80% of the total production of shoes and clothing. Improved
design and operational efficiency reduce waste per unit in production, distribution,
headquarters and packaging by 10%. 100% of the waste from landfills in the extended
supply chain is recycled into NIKE products and other commodities, at least 80%.
The amount of finished waste that has been processed, recycled or donated 10 times.

Link:
a. Amy Tikkanen. Nike, Inc. | History & Facts [ Online],Encyclopedia Britannica,
https://www.britannica.com/topic/Nike-In [Accessed: 4th January 2022].
4
b. Nike Purpose: 2025 Targets, Nike Purpose, https://purpose.nike.com/2025-targets,
[Accessed: 4th January 2022].
c. 2022. Nike, Adidas và Under Armour đang tiếp diễn những cơn gió ngược từ việc
đóng cửa nhà máy ở Việt Nam. [online] Available at: <https://moit.gov.vn/tin-
tuc/phat-trien-cong-nghiep/nike-adidas-va-under-armour-dang-tiep-dien-nhung-
con-gio-nguoc-tu-viec-dong-cua-nha-may-o-viet-nam.html> [Accessed 4 January
2022].
d. Chiến dịch tăng doanh số của Nike trong đại dịch. 2022. Chiến dịch tăng doanh số
của Nike trong đại dịch. [online] Available at: <https://melink.vn/nika-va-chien-
luoc-tang-doanh-so-trong-thoi-ky-dai-dich.html> [Accessed 4 January 2022].
e. Adrienne, 2012. Boston Matrix: Nike. [Online], Available
at: http://sites.cdnis.edu.hk/students/084192/?p=389, [Accessed: 4th January
2022].
f. Bhasin, H. 2018. BCG matrix of Nike. [Online], Available
at: https://www.marketing91.com/marketing-strategy-nike/, [Accessed: 4th
January 2022].
g. Consignado, J. 2011. BCG matrix of Nike. [Online], Available
at: https://www.scribd.com/doc/62268255/BCG-Matrix-of-Nike, [Accessed: 4th
January 2022].
h. Nike, 2018. About Us. [Online], Available at:  https://www.nike.com/in/en_gb/?
ref=https%253A%252F%252Fwww.google.com%252F, [Accessed: 4th January
2022].
i. Shabotinsky, D. 2017. Nike Stock Forecast: BCG matrix and SWOT analysis
indicate the long term value. [Online], Available at: https://iknowfirst.com/rsar-
nike-stock-forecast-bcg-matrix-swot-indicate-long-term-value, [Accessed: 4th
January 2022].
j. Dominici, G. (2009). From marketing mix to e-marketing mix: A literature
overview and classification. International Journal of Business and Management,
4(9), 17-24.

5
k. Goi, C. L. (2009). A review of marketing mix: 4Ps or more? International Journal
of Marketing Studies, 1(1), 2.
l. Nike Inc. – Online Store.
m. Nike Inc.’s Website.
n. Nike, Inc. – Form 10-K.
o. Rahmani, K., Emamisaleh, K., & Yadegari, R. (2015). Quality Function
Deployment and New Product Development with a focus on Marketing Mix 4P
model. Asian Journal of Research in Marketing, 4(2), 98-108.
p. U.S. Department of Commerce – International Trade Administration – Textiles,
Apparel & Sporting Goods.
q. U.S. Department of Commerce – International Trade Administration – The
Consumer Goods Industry in the United States.
r. Van Waterschoot, W., & Van den Bulte, C. (1992). The 4P classification of the
marketing mix revisited. The Journal of Marketing, 83-93.
s. Yun-sheng, W. (2001). Perfection and innovation of 4P Marketing Mix – How to
evaluate 4P Marketing Mix. Commercial Research, 5, 6.
t. Porter, M., E. 1998. The Competitive Advantage: Creating and Sustaining
Superior Performance. NY: Free Press
u. Shank, M., D., Lyberger, M., R. 2014. Sports Marketing: A Strategic
Perspective. 5th ed. London & New York: Routledge.
v. ]. About Nike. 2018. Sustainable Innovation. [ONLINE] Available at:
https://about.nike.com/pages/sustainable-innovation. [Accessed: 4th January
2022].
w. Chang, C., Y. 2014. Visualizing brand personality and personal branding: case
analysis on Starbucks and Nike's brand value co-creation on Instagram. MA
(Master of Arts). United States of America: University of Iowa.

6
7
 2.Macro-environment

Macroeconomic factors affect not only the economy as a whole but also individuals and
businesses. A company is not alone in doing business. It is encircled by and functions
within a larger content. It’s call the Macro Environment. Macroeconomics helps to
evaluate the resources and capabilities of an economy, as well as generating ideas for
increasing national income, increasing productivity, and so onIt brings both opportunities
and threats to the company, or the industry it represents. The Macro Environment
consists of 6 different forces: Demographic, Economic, Political, Ecological, Socio-
Cultural, and Technological forces.

II.1Economic element:

The term economic environment refers to all the external economic factors that influence
buying habits of consumers and businesses and therefore affect the performance of a
company. With Knight's leadership, Nike has overcome many difficult times. The
sportswear brand is now worth more than 100 billion USD. As of 2018, the brand is
present in 52 countries with more than 73,000 stores. The company's revenue last year
was $36.4 billion. Currently, this sports fashion company has a market value of more
than 100 billion USD. The latest fiscal year ended on May 31, 2021, Nike's revenue
reached more than 44.5 billion USD, cost of goods 24.6 billion USD. With Vietnam
supplying more than 40% of the products for the US fashion and sportswear brands, the
estimated value for cost - the amount of goods purchased from suppliers in Vietnam
could be around 8 -10 billion USD.

Nike is committed to continue to invest and expand production in Vietnam.

Although Nike does not own a factory in Vietnam, Nike is working with many factories
of 200 suppliers in Vietnam.

8
The main suppliers for Nike are all famous FDI enterprises in Vietnam's garment and
footwear industry. The leading group's revenue is from 10,000 - 20,000 billion VND per
year.

2.2 Political-Legal element

The legal environment encompasses all of the legal factors that influence project activity.
It consists of an array of acts, rules, regulations. It defines what projects can and cannot
do. It establishes what projects can and cannot do. Legal environment is concerned with.
Clients, contractors, employees, and society's rights and interests are all protected.

For example, with Nike terms of use, about ownership of content:

9
Except for User Content, all content on our Platform is owned by NIKE or others we
license Content from, and is protected by copyright, trademark, patent, and other laws.
This includes text, software, scripts, code, designs, graphics, photos, sounds, music,
videos, applications, interactive features, articles, news stories, sketches, animations,
stickers, general artwork, and other content. NIKE reserves all rights not expressly
described in these Terms.

Nike and many other companies are also facing the following problems:

- Political unrest in the producing countries

- Strike status among workers

- State of terrorism in countries

Facing this situation, the government has had economic policies to promote the growth of
businesses

There are a number of legal challenges as follows:

- Contract production and reproduction of products

- Using underage workers

If there is no clear management and plan, Nike will be responsible for child labor. And
Nike has been successful in dealing with negative media reports because of their business
ethics.

2.3 Technology element

Technological forces form a crucial influence in the Macro Environment. Technological

change can bring about advantages and opportunities for businesses. New technology, of
course, can result in new products and services, as well as entirely new markets for a
company. Furthermore, technical advancements in products and processes can boost
production while lowering costs. For example, recent advances in technology and

10
computerization have made it easier to market and sell things online, resulting in an
increase in sales and output for many businesses.

Due to the epidemic, the demand for online shopping of customers has increased a lot. So
it can be said that Nike investing in websites and mobile applications is the right thing to
do. Nike's earnings report shows that the brand's digital revenue grew 84% in the quarter
through November 30, 2020. Although Nike did not provide exact figures, it reported a
9% increase in total revenue to $11.2 billion. The company forecasts that digital sales
will account for about half of total revenue in the near future. The report shows that the
Nike app ranked 12th among the most downloaded shopping apps on the App Store in
2020.

2.4 Cultural element:

The Socio-Cultural forces link to factors that affect society's basic values, preferences
and behavior. The fact that people are members of a society and cultural group that
shapes their views and values provides the foundation for these elements.

Nike's organizational culture emphasizes creativity and innovation to provide products

that suit current consumer preferences. The company is well-known for producing
cutting-edge sports shoes, apparel, and equipment

“Know who you are” at Nike means the strong organizational culture inside is aligned
with how customers view the company – there is no disconnect between the internal and
external brand. Employees love being inside the secret, and the customers can't wait to
get in on it.

In VietNam, CNBC news reported Nike's newly released financial report as saying that in
2021, Vietnam's shoe production for Nike will account for 51%, while this proportion in
China has dropped to 21%. . In 2006, China produced shoes for Nike at 35%.

11
To sum up, young Vietnamese people are very fond of sneakers because it is a personal
aesthetic, a trend and because of the celebrities who own those shoes.

3. Mirco environment
3.1: Customer:

Customers are the business's object of service, therefore understanding their demands is a
critical aspect in a band's success or failure.

Nike, Inc. has a large number of buyers all over the world, as seen by the company's
impressive revenues ($34,350 million dollars) in 2017. Nike products are not only well-
known in Western countries, but they are also incredibly popular in the Vietnamese
market. Nike's core target market consists of shoppers aged 18 to 40 who have a strong
desire for innovative footwear while also wanting to look fashionable and sporty.

There are many well-off customers who want to dress well, in high-end fashion but still
want a mid-range price nowadays. So that is the customer segment that Nike is aiming
for.

AGE

15- 33 66%
20

20- 13 26%
25

25- 4 8%
30

12
 GENDER

Male 3 70%
5

Female 1 30%
5

3.2: Partmers:

When looking for a partner, Nike has a very specific plan. Specifically, Nike has
partnered with Apple to launch apparel and footwear products to easily carry the iPod
when using.

Nike's partners include models and musicians, as well as social networking platforms and
transportation companies. Nike's products are also marketed by well-known actors and
singers for their own product lines. Nike xây dựng các kênh truyền thông : facebook,
instagram,... Thường xuyên chạy quảng cáo trên cáo phương tiện truyền thông đó. Đặc
biệt là tạo dựng website chuyên nghiệp và thiết kế đơn giản để khách hangfdeex dàng
mua sắm. Nike builds communication channels: facebook, instagram, etc. Regularly runs
ads on that media. Especially, Nike created a professional website and simple design for
customers to easily shop.

Especially regularly sponsoring sports tournaments in the world as well as in Vietnam.

On January 12, at the headquarters of the Vietnam Football Federation (VFF) took place
the signing ceremony of a strategic sponsorship contract with a term of 5 years, starting
from January 1, 2009 to the end of 2013, between VFF and VFF. and Nike Corporation.

13
Under this contract, Nike will provide the most advanced, high-tech sportswear products
to the national football teams managed by the VFF, including the men's and women's
national football teams, the team Indoor soccer team, youth team and team coach.

Nike is deepening its relationship with Dick's Sporting Goods, one of its leading retail
partners, even as the brand has cut ties with many other stores.

3.3: Competitors:

Nike's top competitors include VF Corporation, lululemon athletica, Under Armour,

Adidas, Reebok, PUMA, Skechers, New Balance, FILA, …

The biggest competitor of Nike in Vietnam as well as Nike in general is Adidas, founded
in 1949, is a global brand that is Nike's top competitor. Nike and Adidas compete across
multiple industries, including footwear, apparel, sports equipment, and accessories.

Nike 15 30%

Adidas 5 10%

Puma 8 16%

Reebok 4 8%

Regularly switch to other brands 13 26%

Other 5 10%

14
15
Library: BUSN - Business Environment: Technological (2022). Available at:
https://library.ucalgary.ca/c.php?g=255428&p=1703502 (Accessed: 6 January 2022).

Nike và chiến lược tăng doanh thu số trong thời kỳ đại dịch (2021). Available at:
https://marketingai.vn/nike-va-chien-luoc-tang-doanh-thu-so-trong-thoi-ky-dai-dich/
(Accessed: 6 January 2022).

Company Culture Examples | Nike Corporate Culture (2013). Available at:

https://www.corporateculturepros.com/strong-organizational-culture-how-nike-drives-
innovation/ (Accessed: 7 January 2022).

Vì sao Việt Nam vượt Trung Quốc trở thành nơi sản xuất giày Nike lớn nhất? (2022).
Available at: https://laodong.vn/kinh-te/vi-sao-viet-nam-vuot-trung-quoc-tro-thanh-noi-
san-xuat-giay-nike-lon-nhat-992410.ldo (Accessed: 7 January 2022).

Pratap, A. (2018) Nike Sources of Competitive Advantage, notesmatic. Available at:

https://notesmatic.com/nike-sources-of-competitive-advantage/ (Accessed: 7 January
2022).

16
II. Marketing Situation
3. The status of the Nike company
Nike`s digital transformation strategy is not only to bring shopping websites and apps
to market, but also to transform the digital shopping experience into a lifestyle and
make apps a way of life. Nike's suite of apps emphasizes the brand's approach to user
philosophy, and Nike provides data on purchasing habits, informed individuals, and
trusted users to support effective marketing efforts. Increase. Useful for hexadecimal
numbers. Nike's mobile app space is an integral part of efforts to help those lacking in
the graphics industry generate strong revenue, especially revenue-based business
growth. In model old age. D2C (directly to the user). This application encourages
users to engage in a variety of games-based activities that they can access to maintain
loyalty, strengthen their brand message, and increase sales.
With the closure of the factory in vietnam, leading shoe brands are facing many
difficulties. Since July, issues related to COVID19 have forced the closure of a
factory in Vietnam, the second largest shoe supplier in the United States after China.
The closure of sports shoes and clothing brands that have relied on procurement in the
region is particularly problematic. As the Christmas shopping season approaches,
analysts predict impacts on sales and inventory levels, and sports brands can struggle
more than fashion brands. According to a recent release from BTIG health and
lifestyle analyst camilo lyon, nike, under armor, adidas and Deckers Outdoor Hoka
stores are the companies most likely to be affected by the shutdown. Action in
vietnam. " the situation is good, but i´ve heard that show shoe have experienced the
biggest delay and will be increasingly canceled in the spring of 2010, " lyon wrote in
a press release. Both athletic shoes and sportswear have been affected by the closure,
but the complexity and human resources associated with shoe manufacturing make
them more trouble-prone than apparel. Most of its impact can be felt in the southern
part of the country where most of the production facilities of shoe and garment

17
 companies are located. The company hasn't produced units in the region for nearly
two months since two Nike shoe suppliers in Vietnam stopped production in July.
Vietnam accounted for 51% of nike's shoe production and 30% of its apparel business
last year. Due to recent supply chain issues, BTIG has downgraded Nike from buy to
neutral. "NKE is usually well equipped to deal with this turmoil, but I'm afraid that
even the best brands in the world may be too problematic to control, " lyon presses.
I'm writing in the release. " therefore, we will be downgraded to neutral until we have
better visibility of the timeline to return to normal production and shipping schedules.
Nike shares fell 1.3 there after being downgraded by BTIG. Adidas and Under Armor
also offers discounts on Monday mornings. Fashion brands, on the other hand, are
generally less affected by shutdowns. In the case of steve madden, president and CEO
Edward Rosenfeld called with investors on July 28, and the company will cut almost
half of its female production from China in the fall to reduce its backlog. He said he
had moved to Mexico and Brazil. Sports companies are also trying to minimize the
impact. Adidas has moved production and procurement to other regions and is used
airmail for high-priced products. The factory in Vietnam will reopen on September
15th. And with this run, analysts predict that activity is likely to return to normal
production levels over time. “As soon as the factory reopens, we expect to gradually
reduce full capacity to 50% by the end of the year and to 100% by 2022.

4. BCG of Nike

In the BCG Matrix, Nike is considered a dollar box based on the valuation of the
economic index. Nike's BCG Matrix also shows that the corporate portfolio is well
established and can benefit from economies of scale. That means mass-producing or
expanding, reducing production costs, and adopting a larger philosophy. Nike has
more than 765 factories and 1,000,000 employees worldwide. Only 40 of these
factories are in the United States, some are just distribution centers. Therefore, Nike
can charge the highest amount for its products while maintaining low labor costs. The

18
 cash cow market has slowed in recent years, especially due to the Great Recession in
the United States, but Nike products have a relatively stable market share in 2013.
Over the last eight years, sales have increased by an average of 1418 percent per year.
Nike's business segment consists of apparel, equipment and footwear, with business
areas of Europe, Africa, the Middle East, the United States, the United States and Asia
Pacific. Introducing "Swift Technology" which helps to increase the track time to
1.13%. Soccer and soccer clothes are the best in Europe. To better understand Nike's
market position and analyze whether Nike can take advantage of its products, we use
the BCG Matrix to categorize different product segments and compare performance
to our strongest competitors. Masu (Consignado, 2011). This is Nike's BCH matrix.

4.1, Cash cow

These are market-leading products that bring a lot of revenue to the company
compared to the cash they consume. Compared to market growth, these have more
market share. These provide cash to change the question mark of cash cow products.
Hardware, equipment and clothing are Nike dollar boxes. The apparel and hardware
market growth is 7.67% and 0.43%, while the market share is 1.12 and 0.93. Nike has
endorsed many celebrities like Rihanna for promotional purposes, expanding the
women's segment and incorporating more designs and products into the women's
category (Shabotinsky, 2017).

4.2, Star
These products produce the best money and the best market growth for the company,
but if the growth strategy is not properly maintained, these products can become the
company's dollar box. Shoes are a product launched by Nike, accounting for 16.07%
of market growth and 1.97% of market share. Nike SHOX has also announced a
variety of styles of shoes and is still on the rise. Profit recovered and increased by
30% to about $ 1.2 billion. Nike shoes are known worldwide as the highest quality
products and are used by many renowned athletes (Consignado, 2011).

19
4.3, Question mark
These are the children of the problem of companies that are experiencing greater
market growth compared to market share. However, if the company develops an
effective strategy and uses it efficiently, it can turn the product into a dollar box.
Converse, Jordan and Harley are company question marks. These are the brands
involved in the manufacture of Nike clothing and accessories. Converse is mostly out
of town, as many athletes switch to or stop using their competitors. Both Harley and
Jordan have the potential to grow and increase sales, so an effective strategy is needed
(Bhasin, 2018).

4.4,Dogs
These are break-even products for the company because they don't spend a lot of
money and make enough profits. Nike Skateboarding (Nike SB) is classified as a dog
quadrant because it is not considered the core brand of skateboarding in the
skateboarding community and is not well received by the general public. Still, Nike is
a sports brand and skateboarding is a subcategory of sports (Adrienne, 2012).

5. 4Ps of Nike
5.1, Products

This element of the marketing mix enumerates the organizational outcomes offered to
target customers. These editions are known as product mixes. Nike Inc.'s growth is
closely linked to changes in its product mix. For example, the company continues to
invest in research and development to create new and improved versions of its
current products. Originally a shoe retailer, it now manufactures a variety of shoes,
clothing and equipment for a variety of sports. Based on Nike Inc.'s general and
focused growth strategies, the company is integrating new technologies into its
product line to improve product effectiveness and customer satisfaction. The
following broad categories represent Nike's product mix.

20
 - shoes
- clothing
- Equipment and accessories

Shoes are Nike's most popular product. The company is gradually adding lines to this
category. The company currently offers a variety of other sports shoes, including
running shoes, tennis shoes and cricket. Nike also sells apparel such as jerseys, shorts
and related products. In addition, the company's product line includes accessories and
equipment such as golf clubs. These products are sold under many of the company's
brands, including Air Jordan, Harley and Converse. Based on this element of the
marketing mix, Nike is expanding its product mix to meet the needs of its target
markets and market segments.
5.2, Prices
Below is the pricing strategy of the Nike Marketing Strategy.
Nike is a leader in sportswear and sporting goods, using value-based pricing strategies
to drive the company`s sales and revenue growth. With this strategy, Nike measures
the value that customers are willing to pay for each product. Currently, that value is
used to determine the maximum price a customer is willing to pay for Nike shoes,
apparel, or sporting goods. This strategy ensures that the company maintains
maximum buyer surplus. This strategy has helped the company grow steadily over the
last five years. In 2014, the company succeeded in raising the selling price, increasing
sales and profits. This trend continues as the company enjoys increased sales as prices
rise. Nike Inc. Based on PESTEL / pestle analysis, these trends are related to socio-
cultural and economic changes in the industry environment. The company is adjusting
its price range to accommodate these changes. In this element of the marketing mix,
Nike Inc. makes good use of pricing strategies to maximize profits and emphasize
high value in promoting products and brands. Pricing is targeted at consumers in the
premium segment. With this strategy, the company serves niche markets and
maintains a loyal customer base for customers who pay high for value-added

21
products. The competition in the market is also quite fierce. This puts pressure on
brands like Nike, as local brands offer excellent design and affordability. And with
global competitors like Puma and Adidas entering all of Nike's markets, customers
have more choices and influence their pricing strategies. Therefore, Nike's pricing
strategy for Nike's marketing mix shows that as a market leader, it plays an important
role in managing prices.

5.3, Place
This element of the marketing mix outlines where a company's products are sold,
accessed, or distributed. Nike Inc. sells athletic shoes, apparel and equipment through
numerous retailers around the world. These products are available, for example, in
large retail stores. The following locations / venues form Nike's sales strategy sorted
by importance. 1.1. Retail company 2. Nike Online Store 3. Nike Limited Offline
Store 4. Online sales by e-commerce Retail is the main place where the product is
sold. In the United States, Nike has more than 200,000 retail stores in more than 150
countries around the world. Nike has production facilities in almost every country to
minimize logistics costs and increase distribution efficiency. Nike is a major
competitor to Adidas, Reebok, and its rival brands, as the city's stores are so dense in
India. Nike sells its products using e-commerce sites such as Flipkart and Amazon. In
this way, Nike can introduce almost any product that reaches millions of users over
the Internet. Nike's luxury stores are spread across almost every city and suburb in the
country to meet the needs of consumers in specific regions.
5.4, Promotion

The advertising and promotion strategies in Nike's marketing strategy are:

As a brand, Nike is known for its strong branding and marketing efforts. Nike's
marketing mix advertising strategy is very comprehensive and aggressive, using all
marketing tools and media. Nike has extensive promotion through online campaigns
on YouTube, Instagram and Facebook to reach millions of fans. Nike employs
22
 Sportster as a brand ambassador that has a significant impact on customer awareness
through a variety of advertising and promotional campaigns. Nike also takes
advantage of the opportunity to showcase its brand by sponsoring international events
such as marathons and NBA basketball championships. Nike spends a lot of money to
make its presence in the jerseys of various football clubs. The Nike Swoosh logo and
images play an important role in promoting Nike. The company uses a large amount
of media coverage through electronic, social and print media to promote its brand
image, and is wisely using both push and pull strategies for consumers. Bulky
discounts, timely discounts from online and offline stores attract millions of
consumers every day and attract the public's attention with greater sales. This is a
compilation of Nike's marketing mix.
6. Segmentation, Targeting and Positioning
The awareness of mass marketing and the same behavior of all customers has led to
an understanding of the unique needs of consumer groups that need to be segmented
for maximum sales opportunities. In particular, all sports fans are different. For
example, sports companies like Nike couldn't market extreme sporting goods to the
elderly. As Michael Porter (1998) states, "We can't provide everything to everyone,"
explains that companies that specialize in consumer needs tend to be more effective. ..
But if the first marketing option is market segmentation, how does Nike group
consumers based on general needs?

6.1, Segmentation.
Market segmentation typically has six interactive foundations: demographic variables,
psychographic profiles, behavioral styles, geographic variables, socio-economic
variables, and intended profits. Nike has a common target segment of "all athletes,"
but it still accurately defines different market segments (Shank and Lyberger, 2014).
Demographic Geographic
 Age  World religion

23
  Gender  Country
 Ethic Background  Country religion
 Family life cycle  City
Psychographic  Physical Climate
 Life style Socioeconomic
 Personality  Income
 Activities  Education
 Interests  Ocupation
 Opinions Benefits
Behavioral  Consumer needs
 Frequency of purchase  Product features desired
 Loyalty of consumers

6.2,Targeting
Target marketing is the next step in the segmentation process, during which the
company systematically selects the segments that enable it to achieve its goals most
effectively and efficiently. Nike evaluates target markets based on size, accessibility,
measurableness, and behavioral variables. In particular, Nike has a niche market. The
company is aimed at professional athletes and sporty individualists, offering
professional and innovative products. In addition, all products are accessible online,
giving Nike consumers a unique opportunity to create their own bespoke shoes. This
makes the brand more identifiable and prominent in its differentiation from other shoe
companies. It's also important to note that Nike is targeting the market with
psychological tactics by sponsoring great athletes with great performance and victory.
This tactic closely links the company's products with Triumph (Shank and Lyberger,
2014). Needless to say, sustainable innovation is revolutionizing the way we do
business and the way we manufacture sporting goods. For this reason, in parallel with
the marketing mix that the company is developing, Nike uses aggressive marketing

24
strategies to promote the products of its target customers and emphasize its
uniqueness and exclusivity (About). Nike, 2018).

6.3,Position
Positioning is the final step in STP when making market decisions. Nike broadly
positions its brand as a leader in exercise equipment, offering high quality and
innovative technology. In addition, as an ambitious and victorious company, Nike
swoosh convinces consumers with the slogan "Just Do It" and promotional activities
that combine the Nike brand with the stunning achievements of prominent athletes. ..
It should be emphasized that Nike has moved from product focus to discontinuation
over the years. Nike "speaks" to the athlete's mind through unique and meaningful
emotions. This makes Nike extraordinary compared to other companies. Nike has
established itself primarily in fashion, and its products determine the lifestyle of a
particular group (Chang, 2014). Positioning seems to be based on the perception or
image that Nike maintains expanding and maintaining in relation to sporting goods.
Against this background, the company uses market research techniques to develop
perceptual maps to interpret the position of its products relative to their competitors.

25
IV. Objective, Goals and issues
1. Business objective
- Increase the 3-4% profitability in each of its product lines (i.e. increasing sales growth
by 10% annually)
- Boost online sales by 50% annually for the following four years. That will solidify Nike
as a leader in the online athletic market. 

2. Marketing objective
- Increase customer retention: The first goal focuses on achieving a 60 percent repeat
sales rate using various promotional tactics such as emotional marketing and supporting
various professional sportsmen. Customer retention is extremely important to maintain
Nike’s market leader position.
- Increase the percentage of customers who rate service as "excellent" from 80% to 85%
within 18 months.

3. Smart goal
S - Specific: create a marketing plan that has a specific outline we can follow to ensure
we covered the most important information. Increase customer reviews by 30%. We
know the geographic area, the product line, and the level of growth (10%) we're looking
for. Increase Nike's market share to 20% by 2025.
M - Measurable: each day of the week, we will finalize 35% of the running shoes's details
to ensure completion within 3 days. 2025 goal is to achieve a total market share of 20%
or more.
A- Attainable: with competitiveness, financial potential, information transmission on all
fronts and incentives for existing customers to increase the number of customers is
definitely possible.
R - Relevant: the company increases its influence and products in domestic and foreign
markets.
T - Timely: goals to be completed before the end of 2025.

26
VI. Budgets:

Income statement of Nike

Period Ending May 30, May 30, 2019 May 30, 2018
2020

Total Revenue 37,403,000 39,117,000 36,397,000

Cost of Revenue 21,162,000 21,643,000 20,441,000

Net income applicable 2,539,000 4,029,000 1,933,000

To common shares

Nike's advertising budget has stayed relatively consistent over the years. The corporation
has spent $17.54 billion on advertising in the previous five years.

Nike's income was also examined in the SafeBettingSites study, and it was estimated to
be $37.4 billion in 2020. This is a 4.35 percent decrease from the previous year's total of
$39.1 billion.

Notably, Nike's income last year was the highest in five years. In 2018, revenue was
$36.9 billion, a 7.26 percent increase over the previous year's $34.4 billion.

The coronavirus pandemic was a big contributor to Nike's revenue decreased in 2020.
According to the findings of the study:

"The pandemic played a significant impact in influencing customer behavior, which was
also felt at Nike." During this time, most consumers choose to purchase online in order to
flatten the curve. Nike has a chance to restructure its company in terms of satisfying
customer demands as a result of changing consumer behavior."

Nike retail outlets in the United States totaled 384 in 2019, with a projected decrease to
338 in 2020. The number of non-US-based stores was 768 last year, and it is expected to
reach 758 in 2020.

According to the statistics, Nike shuttered 46 locations in the United States and only 10
elsewhere in 2020, accounting for around 5.1 percent of all 1096 retail outlets. The
shutdown was mostly due to the consequences of the coronavirus epidemic.

Reference: https://finance.yahoo.com/quote/NKE/financials?p=NKE
27
VII. Controls

Nike can guarantee that its marketing plan is right by enforcing top management's control
processes and providing suitable direction to all departments inside the firm. Nike's
objectives may be corrected by maintaining a proper check and balance of the company's
market share, profit, sales, budget, and continual analysis of all departments so that the
marketing strategy can be implemented and fulfill targets.
Also, by properly defining goals, budgets, and department selection to work on marketing
communication, channels, and research objectives, the marketing plan will be performed
on time and with fewer errors.

28
 V. Marketing Strategy
1. Market Segmentation

It has following segmentation to create consumers groups to target:

Demographics segmentation: Nike has segmented an Age and gender group that is it
has such products that serve male and female that has age range of 15-55.

Psychographics and behavioral segmentation: Nike has this segmentation to answer

that why consumers need its products and what the consumers have interest and
purchasing habits. So regarding this Nike segments its market which includes:

 Sports or athletic oriented

 Active lifestyle(interest in fitness and exercise for recreation)
Geographic segmentation: On the basis of this, Nike has segmentation to serve its target
customers all over the world. It has major markets in USA, Asia-pacific Europe, Africa
but it has continuous objective to cater markets in other countries as well like North-
America, China, Japan, and Middle-East etc. (Nike Inc, 2016)

Targeting

As for market segmentation, Nike has niche market to serve that is Nike focuses and
targets athlete or sportsperson segment and provides required products to them as
footwear and apparel products, which have quite specific and unique feature as
compared to other footwear products.

Following are the some target strategies of Nike:

Its target strategies include aggressive marketing to make aware its target consumers
about its product and even Nike make its target consumers enable to get their desired
products through customization process as own signature shoe is offered to athlete
that is it enabled Michael Jordan to have his name Jordan shoes.

29
Apart from this, its targeting strategies include sponsorship of its products through sports
team or celebrities. It has objective of styling its product through psychological tactics on
target market by linking triumph with apparel that is products are viewed as victory when
sponsorship is done by athlete celebrities (Marketing strategy of Nike)

Another targeting strategy is Nike cross training established in 1989 which caters all the
athlete participants all over the world and trains different sport activities which has also
become way to make its target market satisfied.

2. Market Positioning

Nike has positioned itself in the mind of its target customers as a leader in sports
goods. It has made such products that satisfy its niche market with all products related
to sports. Its slogan ‘Just do it’ has made an appeal to target customers to buy the
product with sense of inspiration and confidence and which has made it major
competitor in athlete industry.

Its positioning statement is

‘For every serious athlete Nike provides perfect shoe or sports products that gives
confidence for every sport activity’

It 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
3. Consumer Behavior

Nike products are already well-known brands through the world, with effective
advertisements and word of mouth, since customers tend to share their positive views
with their friends and family. After buying this Nike brand, consumers learn, and

30
experience the quality and see themselves that they got what they expected. Consumers’
formed attitudes about the brand are buying a products that are comfortable, makes you
feel good, and also look cool in it and Nike satisfy them all. (Ugur)

The public feels that Nike over charge its consumers and make its profits but they should
decrease the prices which can attract the consumers to buy its products. Today,
everybody wants the products which are comfortable to wear, protect our feet and keep
away from injury without higher quality shoes it can harm our feet and cause injured.
Sometimes Nike can affect consumers to buy the product. Consumers can be influenced
by three perspectives cultural, social and personal factors. (Consumer behaviour in
relation to premium products, 2015).

Young athletes can be the target market of Nike in the future. With its brand it has the
powerful position of influence with young people by launching the digital platform for
engaging the consumers to join it so that it may make better relationship with
consumers (Kearney, 2009)

If any company creates the good relationship with its consumers, so they must find out
the needs and wants of the consumers. As Nike has done this by providing the good
customer service and even when customer face any type of problem so they can send
email to the Nike for get rid from their problem related purchasing, Nike would solve
their problems within working days and customers can solve their problems with help of
websites and sending them emails. So this has made the consumers to have positive
image of Nike in their minds which can increase their purchasing decisions and behavior
towards the Nike products. (The consumer decicion process of Nike, 2015).

4. Customers need

- Customers want goods that are convenient, pleasant, and of excellent quality at
reasonable rates.

31
- Clients like fkynit and chilly spandex fabrics.

- Extensive distribution networks throughout the country, including regions and cities, to
facilitate travel.

- Customer service attention when there is an issue with the merchandise.

5. Proposition

Accessibility : Nike is spreading out to different locations globally, in both official stores
and outlets, including online stores and shipment. By acquiring multiple other footwear
and clothing firms – its easy access is almost inevitable. Customers can easily reach out
to their products in their everyday life.

Customization : NikeID or Nike By You is a service that allows customers to personalize

and customize their merchandise through online use. They also have physical studios in
countries like the United Kingdom, Italy, France, Japan, Canada, Germany, Spain, China,
and the USA.

Innovation : This Nike value proposition tends to explore innovation from various
aspects. Nike’s team includes research labs like Explore Team Sport Research Lab,
focusing on designing cutting-edge products and Nike Advanced Product Creation Center
incorporating technology in their products.

Brand/Status: Partnering up with rookie athletes was just the beginning of this
company’s success. Today, Nike has signed contracts with the top three leagues in the
USA – MBL, NFL, and NBA. Many others have also signed deals with this brand, sports
stars like Cristiano Ronaldo, Micheal Jordan, and Tiger Woods, which puts this value as
a core of the Nike value proposition.

32
Reference

https://ecomhustler.com/nike-value-proposition/

Rizwan Raheem Ahmed, 07 April 2016, “Strategic Marketing Plan of Nike”, avaible at
https://www.researchgate.net/publication/299889166_Strategic_Marketing_Plan_of_Nike

6. Market penetration strategy

Direct investment: Nike hires workers in the country where the factory is located
(these factories are purchased or leased from manufacturing corporations in the
same industry in that country)
Nike has organized the World Shoe strategy in a very unique way that it does not
invest in direct manufacturers, but 100% of the production process is located in
outsourcing factories, most of which are located in Asian countries: Vietnam,
China, Taiwan,…

In order to avoid pressure from customers and legal cases against the company,
Nike has established 4 groups in 3 countries with the largest processing volume
for Nike: Vietnam, China and Indonesia with the main job of managing the
company. the quality of the product and the quality of the working conditions.
Over the past 10 years, Nike has expanded its business in Vietnam and has
brought the total number of manufacturing plants to 9 shoe factories and 30
sportswear factories. The key production area is located in Dong Nai province.
Nike has chosen Outcourcing to penetrate the Vietnamese market
7. Marketing mix

7.1 Products (Product Mix)

The organizational outputs supplied to target consumers are listed in this

component of the marketing mix. These outputs are known as the product mix.
Changes in Nike Inc.'s product mix have contributed to the company's growth. For
example, the company continues its investment in research and development to

33
 produce new products and enhanced versions of its current products. Originally a
shoe distributor, the company currently produces a variety of shoes, clothes, and
equipment for a variety of sports. Nike Inc. uses new technology into its product
lines to improve product efficacy and consumer satisfaction, as part of its general
strategy and intensive growth strategies. Nike's product mix is divided into the
following broad categories:

1. Shoes
2. Apparel
3. Equipment and accessories

Shoes are the most popular products from Nike Inc. The business gradually adds more
product lines in this category. Nike also sells clothing, such as jerseys, shorts, and other
accessories. In addition, the company’s product lines include accessories and equipment,
such as golf clubs. Nike expands its product mix to meet the needs of its target audiences
and market segments based on this component of the marketing mix.

7.2 Place/Distribution in Nike’s Marketing Mix

This element of the marketing mix outlines the venues where the company’s
products are sold, accessed or distributed. Nike Inc. sells its sports shoes, gear, and
equipment in a variety of locations across the world. These things, for example, can
be found in large retail outlets. Nike's distribution strategy is comprised of the
following locations/venues, which are listed in order of importance:

1. Retail stores
2. Nike Online Store
3. Niketown retail outlets (company-owned)

The most significant places where Nike products are sold are retail stores. Large
corporations, such as Walmart (see Walmart's Marketing Mix or 4P), as well as
small local and regional businesses, are among these retailers. In addition, the
company runs its Niketown retail stores. In addition, the company runs its Niketown
retail stores. Nike Inc. controls the distribution and sale of its products based on this
component of the marketing mix, particularly through its online store and Niketown
retail outlets. However, the company has limited control on the distribution and sale
of its products via other retail outlets.

7.3 Nike Inc.’s Promotion (Promotional Mix)

This element of the marketing mix is also known as the marketing communications mix,
and involves the tactics that Nike uses to communicate with its target markets. One of the
strengths identified in Nike Inc's SWOT analysis is the company's reliance on excellent

34
 product promotion to maintain a strong brand image. To communicate with target
customers about its products and persuade them to buy them, the company employs
promotional strategies. The following is a list of Nike's promotional initiatives, organized
by importance:

1. Advertising
2. Personal selling
3. Direct marketing
4. Sales promotions
5. Public relations

One of the most important factors in Nike's ability to attract customers is advertising.
This element of the company’s marketing mix also includes personal selling through
sales personnel who persuade target consumers to buy the company’s products. Nike also
uses discounts and special offers from time to time to attract new clients and increase
sales.

In addition, to market its athletic shoes, gear, and equipment, the corporation sponsors
and financially supports other groups, such as community-based networks. To succeed in
promoting its business and products to the international sporting goods market, Nike
relies on its relationships with high-profile endorsers, according to the strategies included
in this portion of the marketing mix.

Nike’s Prices and Pricing Strategies

This element of the marketing mix identifies the prices that the company applies to
maximize profits while attracting the desired share of the multinational market. Nike's
technological advances are part of a strategy to charge a premium for its products.
Nonetheless, when determining price points and price ranges, the corporation takes
current market conditions into account. The following pricing techniques are used in
Nike Inc.'s business based on these considerations for this 4P variable:

1. Value-based pricing strategy

2. Premium pricing strategy

Nike Inc. considers consumer perception about the value of its products when Nike Inc.
using the value-based pricing strategy. In relation, the premium pricing approach entails
high prices, which are based on a premium branding strategy that positions Nike products
as superior in quality and value to competitor products. The company’s use of
advertisements involving high-profile celebrity endorsers is indicative of such emphasis
on premium branding. In this element of the marketing mix, Nike Inc. successfully uses
its pricing strategies to maximize its profits while emphasizing high value in promoting
its products and brand.
35
 References

 Dominici, G. (2009). From marketing mix to e-marketing mix: A literature overview and
classification. International Journal of Business and Management, 4(9), 17-24.
 Goi, C. L. (2009). A review of marketing mix: 4Ps or more? International Journal of
Marketing Studies, 1(1), 2.
 Nike Inc. – Online Store.
 Nike Inc.’s Website.
 Nike, Inc. – Form 10-K.
 Rahmani, K., Emamisaleh, K., & Yadegari, R. (2015). Quality Function Deployment and
New Product Development with a focus on Marketing Mix 4P model. Asian Journal of
Research in Marketing, 4(2), 98-108.
 U.S. Department of Commerce – International Trade Administration – Textiles, Apparel
& Sporting Goods.
 U.S. Department of Commerce – International Trade Administration – The Consumer
Goods Industry in the United States.
 Van Waterschoot, W., & Van den Bulte, C. (1992). The 4P classification of the
marketing mix revisited. The Journal of Marketing, 83-93.
 Yun-sheng, W. (2001). Perfection and innovation of 4P Marketing Mix – How to
evaluate 4P Marketing Mix. Commercial Research, 5, 6.

36