VIETNAM NATIONAL UNIVERSITY

UNIVERSITY OF LANGUAGES & INTERNATIONAL STUDY

FACULTY OF LANGUAGE EDUCATION & PROFESSIONAL DEVELOPMENT

WEEKLY TEAM ASSIGNMENT

REPORT OF MARKETING

Class: KTTC 21E5

Lecture: Ph.D. Le Thi Thu Mai
Major: Economic - Finance
Group 9 Nguyễn Lê Quang Quý

31
Table of Contents
Conten

GENERAL INFORMATION..................................................................................................3
1. What is Nike?.....................................................................................................................4
2. Product of Nike..................................................................................................................4
3. How does Nike become "leader"?......................................................................................4
1. SWOT Analysis of Nike....................................................................................................5
Strengths.................................................................................................................................5
Weaknesses:...........................................................................................................................5
Opportunities..........................................................................................................................5
Threats:...................................................................................................................................6
Analysis Nike’s competitors:.................................................................................................6
2. Ansoff matrix.....................................................................................................................9
Microenvironment................................................................................................................11
Macroenvironment...............................................................................................................11
WEEK 4 CUSTOMER ANALYSIS....................................................................................13
MAKETING INFORMATION SYSTEM.........................................................................14
WEEK 5: MARKETING RESEARCH...............................................................................15
Marketing strategies.............................................................................................................16
There are 5 Key Advantages that many of the company do not have.................................16

Offer customer loyalty programs and rewards to encourage customers to continue buying
Nike products............................................................................................................................18
WEEK 6:.............................................................................................................................18

Chapter 8: Market Segmentation, Targeting, and Positioning.................................................18

Main market segmentation: geographic...............................................................................18
Targeting strategies for the target market:...........................................................................18
The differentiation of Nike Inc............................................................................................19
Nike position in the market..................................................................................................20
Communcation and deliver the position to the market........................................................20

1
WEEK 8...............................................................................................................................22
Describe the product mix.....................................................................................................24
WEEK 9: CHAPTER 10 MANAGING SUCCESSFUL PRODUCTS. SERVICES, AND
BRANDS..............................................................................................................................26
Product.................................................................................................................................26
WEEK 10: PLACE STRATEGY.........................................................................................27
Pricing strategy.....................................................................................................................27
The pros and cons of this strategy........................................................................................27
Describe the product line/mix pricing strategies of the company........................................29
Suggest any intermediaries that could be possible for Nike................................................29
Reference..............................................................................................................................31

2
 GENERAL INFORMATION
Company name: NIKE, INC. Registered At
Corporation Division (Oregon Secretary of State) RA000631
Enterprise Value: $166,323 Mil
Owner’s investment capital: $14.1 Billion
Address: One Bowerman Dr.Beaverton, OR 97005 United States Phone/Fax: (503)-671-6453
Website: media.relations@nike.com
Fields of business: Nike primarily designs, develops, and sells athletic footwear, apparel,
equipment, and accessories. Their product range includes running shoes, basketball shoes, soccer
cleats, fitness apparel, sports accessories, and mor
The position of Nike:
Nike, Inc. is one of the world's leading multinational corporations in the sportswear and athletic
footwear industry. It is known for its iconic "Swoosh" logo and is a highly recognizable brand
globally. Here's some general information about Nike:
Founding and History:
Nike was founded on January 25, 1964, by Bill Bowerman and Phil Knight, under the name Blue
Ribbon Sports. It officially became Nike, Inc. in 1971. The company's name is inspired by the
Greek goddess of victory, Nike.
Company culture:
Nike represents a global culture of sport, style and the pursuit of greatness. The company are
passionate about potential and believe everyone should have the tools to reach theirs. Employees
who inspiring the new ideas, methods and products that drive the future of sport. Nike is famous for
its marketing campaigns, including the iconic "Just Do It" slogan. . The "Just Do It" slogan is often
associated with motivation, determination, and taking action to achieve one's goals, reflecting
Nike's emphasis on athletic excellence and personal empowerment.

3
 WEEK 2: COMPANY ANALYSIS
I. OVERVIEW ABOUT NIKE
1. What is Nike?
Nike (officially known as Nike, Inc) is one of the world's largest sportswear, apparel, and athletic
equipment suppliers. The company was founded by Bill Bowerman and Phil Knight in 1964, with its
headquarters in Oregon, USA (My. Nike is known as the "leader" in the sports fashion industry, as all
Nike products are highly regarded for their beautiful design, high quality, and responsiveness to user
trends.

2. Product of Nike
Nike's product includes a wide range of athletic apparel, including shirts, shorts, pants, jackets, and
socks, catering to various sports and fitness activities. It has also earned a reputation for its innovative
and technologically advanced footwear, offering performance-oriented shoes for running, basketball,
soccer, tennis, and other sports.
Nike also provides athletes and sports enthusiasts with many accessories, such as bags, hats, gloves, and
watches. The company's equipment line includes sports gear like balls, protective gear, and training
equipment.
Nike's products are widely and popularly known across generations, and it's not difficult to come across
a Nike product while walking outside.

3. How does Nike become "leader"?

Nike is widely celebrated as the unrivalled leader in the sports fashion industry. Their innovative
designs, cutting-edge technology, and iconic branding have propelled them to the top of the charts. Nike
has built a reputation for offering high-quality products that blend style and performance effortlessly.
Whether it's their iconic sneakers, trendy activewear, or eye-catching accessories, Nike consistently sets
the trends and the bar for excellence.
Besides that, Nike is well-known for its strong emphasis on marketing and endorsements. It has
established partnerships with numerous professional athletes, teams, and sports organizations worldwide,
leveraging these alliances to promote its products and enhance its brand image.
For example, Air Force 1 Para-noise - Nike shoes designed by G-Dragon cost 200 USD, which sold out
globally after 40 minutes of going on sale. According to statistics, it only took a total of 40 minutes for
the AF1 Para-noise shoes to be sold out in 44 countries. Typically, in China, Para-noise only took 0.06
seconds to sell out.

4
II. WHERE ARE WE NOW?
1. SWOT Analysis of Nike
Strengths:
Strong brand: According to Brand Finance, a company specializing in global brand consulting and
valuation, Nike won with a total brand value of $34.8 billion in 2020.Nike is one of the most valuable
and recognizable brands globally. Its brand image is associated with quality, innovation, and
performance.

Diverse products: Besides popular sports such as football, basketball, etc., Nike competes with other
brands. Surely, only a few people know that Nike has shoes for boxing and weightlifting. For example,
Nike's winter coats compete with The North Face brand. ACG Boot competes with Timberland. Elite
socks compete with HUF socks. This is the way that Nike caters to a diverse consumer base.

Worldwide distribution system: Nike has over 200,000 sales partners in the United States and has
stores in over 150 countries worldwide. Nike's exclusive stores can be found in most cities and
neighborhoods worldwide, catering to customers' needs in each region. In Vietnam, many shopping
centers such as Aeon, Vincom, and Takashima have Nike stores.

Marketing and endorsements: Nike has successfully employed marketing strategies and endorsements
from famous athletes, singers, and KOL to enhance brand awareness. For instance, Eminem, Billie
Eilish, G- DRAGON, and Kanye are well-known people that Nike collaborated with. Besides that,
Nike is also very active in sponsoring for sports tournaments to increase brand awareness. Previously,
Nike was often famous for providing basketball shoes for American NBA tournaments.

Weaknesses:
Dependence on third-party manufacturers: Nike outsources its manufacturing to factories overseas,
which can expose it to supply chain disruptions and potential reputational risks.

Scandals: Nike has faced criticism and controversies related to labor practices. In 2011, workers in
Indonesia who make sneakers accused the company's foremen of throwing shoes at them, slapping their
ears, and calling them dogs and pigs. This situation can damage Nike’s reputation and brand image.

Higher price points: Nike products are known for their great quality and performance, but this
frequently comes at a higher price, making them somewhat unavailable to those with limited finances.

5
Opportunities:

E-commerce: The rise of e-commerce allows Nike to reach a broader customer base worldwide and
enhance its direct-to-consumer sales. In Vietnam, Nike Mall on Shopee and Lazada purchase up to
thousands of monthly.

Growing global sports market: The increasing popularity of sports and fitness activities presents
opportunities for Nike to expand its market share and introduce new products. According to a report by
Allied Market Research, the global sportswear market was valued at $167.7 billion in 2018; it is
expected to grow to $258 billion by 2026. Sportswear is one of the largest growth categories in the
fashion industry.

Sustainability focus: Consumers are increasingly interested in sustainable and eco-friendly products.
Nike can capitalize on this trend by investing in eco-friendly materials, manufacturing processes, and
supply chain sustainability initiatives. Recently, Nike has been able to create clothes that have a low
environmental impact and plans to complete a mold so that Nike products can be easily recycled.

Threats:

Intense competition: Nike faces competition from other major sportswear brands, both globally and
regionally. Competitors may offer similar products, competitive pricing, and strong marketing
strategies. Besides Nike, the sports market has many famous brands like Adidas, Li Ning, Puma and
recently, Decathlon
- a French sports brand that has opened many large-scale stores.

Counterfeit products: Nike's strong brand presence makes it a target for counterfeiters, adversely
affecting brand reputation and revenue. Instead of spending a lot of money to buy auth goods, many
people spend a cheaper amount to buy fake products. According to The Guardian's summary, each year,
the total value of counterfeit goods sold on the market is about 600 billion USD. For every 100 branded
products sold, there will be 10 counterfeit items mixed in for sale (10%).

Economic downturn: Economic recessions or downturns can impact consumer spending on

discretionary items, including athletic apparel and footwear, which may affect Nike's sales and revenue.

6
 Analysis Nike’s competitors:

Nike Puma New Balance Reebok

Establish year 1964 1948 1906 1958

Number of
countries 170+ 120+ 120+ 80
operate in

The Number of Reebok owns none

coverage 600+ 300 5 (in US)
factories of its own factories

21% of sports
21% of sneakers and outdoor
Number of Over 100 42% of U.S.
users in the United online shop users
buyers million adults
States in the United
States

7
 Footwear,
Running Shoes,
Apparel,
Walking Shoes,
Accessories, Footwear, Apparel,
Lifestyle
Equipment, Accessories,
Footwear, Footwear, Apparel,
Athlete Sportswear and
Ecosystem Training Shoes, Accessories, CrossFit,
Collaboration Team Kits, Special
Outdoor Shoes, Classics, Kids
Collections, Collections,Puma
Tennis and Court
Jordan Brand, Kids
ShoesApparel
NikeLab, Digital
and Accessories
Products

To demonstrate
responsible
To bring
leadership, we
inspiration and
build global
innovation to
To be the Fastest brands that
every athlete* in To empower people to
Mission Sports Brand in the athletes are proud
the world. (*If be fit for life.
world to wear,
you have a
associates are
body, you are an
proud to create
athlete)
and communities
are proud to host

How can we get there? Implementation process

1. BCG matrix
Stars: Nike's star products would typically have a high market growth rate and relative market share.
These are the products that are performing well in a rapidly growing market. For example, Nike's line of
performance running shoes or innovative athletic apparel commands a significant market share in a
growing segment.

8
Cash Cows: Cash cow products have a high relative market share but a low market growth rate. These
are established, mature products that continue to generate steady cash flows for the company. In Nike's
case, this could include their iconic Air Jordan basketball shoe line or their classic sneakers that still
enjoy a large market share in the more stable and saturated footwear market.

Question Marks: Question marks are products with a low relative market share but a high market
growth rate. These are products that are still in the early stages of their lifecycle or haven't yet gained
significant market share. Nike might have new product lines or innovations that are growing rapidly but
haven't reached a dominant position in the market yet.

Dogs: Products in the dog category have both a low market growth rate and a low relative market share.
These are generally products that are not performing well in the market and may have limited potential
for future growth. Nike's underperforming or discontinued product lines might fall into this category.

2. Ansoff matrix
Market Penetration: Nike's market penetration strategy focuses on increasing sales within existing
markets. They achieve this through various marketing and promotional activities to attract more
customers and encourage repeat purchases. Nike constantly engages in brand building, sponsorships,
and collaborations to strengthen market presence and capture a larger share of the athletic footwear and
apparel market. Nike also executes its penetration strategy through partnerships with major distribution
channels, such as Walmart, Target and Costco, as well as company-owned NikeTown retail stores.

Product Development: Nike's product development strategy involves creating and introducing new
products to existing markets. By continuously innovating and leveraging technology, Nike
introduces new and
improved products that cater to evolving customer needs. For example, they have developed specialized
footwear lines for different sports, such as basketball, running, and football, to provide athletes with
performance-enhancing products. Nike has also implemented its market development strategy by
producing improved and innovative products in new markets such as manufacturing products and
services for bodybuilders.

Market Development: Nike's market development strategy aims to enter new markets with existing
products. They expand their global reach by targeting emerging markets. For example, China, India, and
South America. Nike adapts its marketing and distribution strategies, collaborates with local partners,

9
and tailors products to cater to these new markets' specific preferences and demands. Besides that, Nike
decided to bring innovative products to their customers by changing the design, and features of the
product such as Nike SB Dunk Low ‘Chunky Dunky’, Nike Lebron 9 Low Lebonald Palmer.

Diversification: Nike's diversification strategy involves introducing new products in new markets. While
Nike primarily focuses on sports footwear and apparel, they have expanded their product offerings to
include accessories, equipment, and technology-enabled sportswear. For instance, Nike has ventured into
the wearable technology market with products like Nike FuelBand and Nike AirPods, diversifying its
product portfolio beyond traditional sportswea

10
 WEEK 3: MARKETING ENVIRONMENT
Introdu
ction:
Nike operates in a dynamic marketing environment that is shaped by various internal and external
factors. These influences play a crucial role in shaping the company's marketing strategies and overall
business performance..
Microenvironment and macro environmental affecting client buying decisions at Nike

Microenvironment
Customers: Changes in customer preferences and behaviours, such as increased focus on eco-friendly
products or shifting fashion trends. Recently, many consumers are concerned about the impact of the
fashion industry on the environment and society. According to a study by McKinsey & Company,
66% of globalconsumers said they are willing to spend more on sustainable products. This is an
example of changing customer behaviour which influences Nike to focus more on marketing
sustainable products.

Intermediaries: Nike relies on various channels and intermediaries, such as retailers and e-commerce
platforms, to distribute its products. Changes in these channels can affect Nike's marketing reach and
distribution strategies. For instance, if an intermediary reduces or eliminates their partnership with
Nike, it may limit the brand's presence in certain regions or customer segments, impacting their ability
to promote and sell products effectively. In 2019, Amazon which operates an online marketplace
decided to remove all Nike products from the website. Amazon is one of the largest e-commerce
websites in the US, which could lead to Nike losing a large number of customers.

Competitors: Nike operates in a highly competitive market, and changes in competitor strategies,
product offerings, and market share can beat Nike’s strategy. In 2022, as Nike and Adidas retreated
from wholesale and third-party retail to focus on their direct retail channels, Puma quickly stepped in,
strengthening partnerships with multi-commerce retailers.

Macroenvironment

Economic Factors: In terms of the economy, a recession would be Nike's biggest threat. Fluctuations in
the global economy, such as recessions or changes in consumer purchasing power and disposable

11
income, can significantly impact Nike's marketing efforts. Since some of Nike products are produced
in Southeast Asia (Indonesia, Taiwan, Vietnam, Japan, Korea, Pakistan, and Thailand), where labor
costs and cost of materials increase, Nike is impacted by the Asian economic crisis.
Socio-cultural Factors: Cultural trends, social values, and demographics can influence consumer
preferences and demand for Nike products. Two years ago, Nike suffered a widespread boycott from
Chinese netizens. Even Chinese actors and influencers who are ambassadors for this brand also
announced the termination of their contracts because of Nike's statements about Xinjiang cotton.

Technological Factors: Nike's Flyknit technology is a prime example of the company's commitment to
responsible practices. With Flyknit, Nike uses a precise knitting process that minimizes material waste.
The technology allows for lightweight and durable shoes to be produced with a single seamless piece
of fabric, eliminating the need for cutting and stitching multiple materials together. Additionally,
Nike has partnered with organizations like the Sustainable Apparel Coalition (SAC) and the Ellen
MacArthur Foundation's Make Fashion Circular initiative to further their sustainability efforts.

Changes to better satisfy customers.

Sustainable Innovation: This is evident in how they have invested hugely on sustainable innovation such
as their Flyknit technology. It tackles issues of sustainability and at the same time creates eco-friendly
materials to produce performance products. The companies continue to explore into different materials
and manufacturing methods to reduce wastages as well as harmful effects on nature.

Transparency and Accountability: To ensure more transparency, Nike have decided to open up about
how they are operating towards a more sustainable future regarding environmental influence and supply
chain. Customers get an opportunity to choose wisely, while promoting Nike’s stand on socially
responsible initiatives. Therefore, they keep on doing extensive researches while looking for alternative
materials and better manufacturing methods which lead to less wastage.

Community Engagement: Nike actively engages with communities to address social and environmental
issues. They support local initiatives, invest in community development programs, and promote access
to sports and education. By engaging with the community, Nike builds a positive brand image and
fosters loyalty from customers who appreciate their efforts. For instance, promoting human potential
through sports is one of Nike's priorities in community activities in Vietnam and around the world. To
achieve this goal, Nike has cooperated with SSA Sports since early 2020 to introduce the Active with

12
Sports program, with the desire to bring new methods to physical activity in schools in Vietnam,
spreading Inspire children to love sports for comprehensive development.

Expansion of Sustainable Product Lines: Nike will continually increase product range from footwear to
apparels, accessories, and equipment. Considering sustainable materials as well as production methods
for all product lines would help Nike take advantage of the increasingly popular ecologically
responsible products and tap into the consumer market that cares about environmental issues.

Focus on Local Manufacturing: Nike can accentuate local production and manufacturing in important
marketplaces. Secondly, this helps minimize the carbon footprint that emanates from distant exports
and
boosts national income. Nike can be in line with demand for closer source production by moving
towards localized and sustainable supply chain.

WEEK 4 CUSTOMER ANALYSIS

Introduction: Understanding your customers and potential customers is a key aspect of beingable to
effectively market to them and build relationships with them. Careful customer analysis will provide
you with the tools to convert more customers and keep them from churning for longer periods of time.
The consumer's purchase decision is the final stage of the consumer'spurchasing behavior

Overview of customer values in the market of Nike

Nike Flyknit: Nike knew that people like sports shoes that are light, feel nice, and give maximum
strength or improvement. Furthermore, they realized an increasing consumer need for environmentally
friendly items. With such customer insight, Nike developed Flyknit technology, revolutionizing shoe
production through an accurate knitting technique and a light, smooth, breathable shoe. The product
satisfies the customers' demands for a comfortable, lightweight look and aligns with the demand for
green products.

Nike+: Wearable technology together with digital tracking services by Nike. Nike’s CI revolves around
the concept of tailor-made and data-driven fitness experience, hence the customer value created by
Nike+. Nike realized that the customers want to track fitness activity, set their targets, and monitor
development. Through this consumer insight, they launched Nike+, which provided customers with
individual direction, instant feedback as well and a way of measuring and sharing information about

13
one’s workout performance. Through Nike+, customers indulge in a highly participatory fitness
encounter that corresponds to their preferences for customized and data-driven undertakings

14
 MAKETING INFORMATION SYSTEM
1. Product: Nike Air Zoom Pegasus running shoes
Internal database
It was during 2018 that Nike discovered a trend in Pegasus returns. Nike determined as to what reasons
why some of them returned their shoes and why they did so. In 2019, Nike did solve the problem with
Pegasus shoes.
Marketing intelligence
Nike employed social media in tracking people’s sentiments on Pegasus in 2019. It turned out that
many consumers said that the shoe had no cushioning. The 2020 Pegasus was designed to address this
problem through the added cushioning system.

Marketing research
In 2020, Nike surveyed what runners prefer and desire towards products. Nike found that many runners
were interested in a more sustainable running shoe. Nike met this demand by designing the sustainable
running shoe, Pegasus Trail 3, made from recyclable substances.

2. Service: NikePlus membership program

Internal database
The website and Nike application provide the Nike brand with detailed information about NikePlus
member behaviours. For example, Nike monitors which pages are browsed by the members, what the
products viewed are, as well as the purchased products. In addition, Nike keeps tabs on how members
involve themselves in certain vital aspects or programs, such as Nike Training Club, Nike SNEAKERS,
etc. The other customer service channels can help Nike obtain information on NikePlus members’
activities and movements. This is like in the case of Nike, whereby it can trace the nature of comments
and the feedback provided by members concerning the program.

Marketing intelligence
The company ensures that people are not talking badly about them on platforms like Twitter, Instagram,
and Facebook. Nike monitors popular keywords that users come up with while discussing Nike+
Training Club via social media and customer feedback on Nike’s site, among others like Amazon.com.

Marketing research
Nike also carries out surveys among its NikePlus members. To improve on this process, surveys can
help to find out member’s satisfaction with the program and which features they use most, also asking
what new features they may wish to have.
15
 WEEK 5: MARKETING RESEARCH

FACTORS INFLUNCE IN BUYING BEHAVIOR

Psychological factors significantly shape customers' buying behaviors, including their perceptions,
attitudes, and motivations.

Motivation: Customers may be motivated by factors like fitness goals, performance improvement, or
self- expression, driving them to purchase Nike products.

Perception: People’s opinion about Nike being a superior product and innovative brand in the market
affects their purchase decision.

Attitudes: The customers’ attitudes towards the Nike brand, as in their feelings of trust, loyalty, and
brand image, will affect their purchasing decision-making.

Social factors refer to the influences of family, friends, and social groups on customers' buying
decisions.

Reference Groups: The social circles they have, the celebrities they watch for, the athletes they love
and the influencers that endorse and wear Nike products and fashion.

Family: Family preferences, opinions, and purchasing habits can influence the buying decisions of Nike
customers.

Social Class: Nike's brand image and reputation may attract individuals from specific social classes,
impacting their buying behaviors

Economic factors include the financial situation, income level, and overall economic conditions
affecting customers' purchasing power.

Price: The pricing of Nike products can impact customers' affordability and willingness to purchase.

Income Level: Higher-income customers may have more disposable income to spend on Nike products.

16
Economic conditions: Economic stability or fluctuations can impact customers' overall willingness to
spend on luxury or non-essential items like Nike products.

17
 Marketing strategies
Nike's products are typically purchased using habitual buying behavior. It means that consumers
purchase Nike products without a lot of thought or effort. Many people buy Nike products on impulse
without many considerations. They know the brand and products and have trust in the quality. This type
of buying behavior is used for low-cost, frequently purchased items, such as socks, t-shirts, and athletic
shoes.

Nike also benefits from some variety-seeking behavior among its consumers. This is when consumers
are sometimes interested in trying new Nike products, even if they are not necessarily better than those
they already use. This buying behavior is often driven by fashion trends or the desire to have the latest
and greatest gear.

Nike can also use a combination of these strategies to appeal to different types of consumers. For
instance, Nike can start a loyalty plan for customers in order to increase their shopping frequency. It
should also implement different product lines targeting customers of low impulsiveness and those who
appreciate more new ideas
Evaluate the success of a marketing campaign
There are 5 Key Advantages that many of the company do not have
1. Problem recognition: This is usually when the customer realizes that there is a need for that
product, which has now become a want. Consumers can buy this Nike product either because they know
that their old running shoes are worn out or because they have encountered this particular Nike product
for the first time and find it attractive.

- To influence customers during this stage, Nike can:

- Create advertising campaigns that remind customers of their needs and wants. Through marketing
efforts, Nike can showcase the features and benefits of its products to align with customers' needs and
aspirations.
- Develop new products that meet the needs and wants of customers.
- Make it easy for customers to find information about Nike products.

2. Information Search: Consumers will begin looking for information about potential solutions when
they recognize a problem. Nike customers can read reviews of various Nike goods, compare costs at
multiple stores, or speak with friends and family about their Nike product experiences.

18
 To influence customers during this stage, Nike can:

- Make sure that Nike products are available at a variety of retailers.

- Ensure that product details, specifications, and benefits are readily available through various channels,
including websites, social media, and retail platforms.
- Use online ads to show the products on top when customers search online.
- Offer customer reviews and testimonials on Nike's websites and social media pages.
- Partner with influencers to promote Nike products.

3. Alternative evaluation: After the consumer knows about multiple choices, they will begin to
analyse their options. They will review the features and benefits of various Nike items, read reviews,
and compare costs.
- To influence customers during this stage, Nike can:
- Highlight the unique features and benefits of Nike products.

4. Alternative evaluation: After the consumer knows about multiple choices, they will begin to
analyse their options. They will review the features and benefits of various Nike items, read reviews,
and compare costs.
- To influence customers during this stage, Nike can:
- Highlight the unique features and benefits of Nike products.
- Positive reviews, testimonials, and endorsements from athletes, influencers, and satisfied customers
can help build trust and credibility.
- Offer competitive prices on Nike products

5. Purchase decision: After considering the options, the customer will decide. Nike customers may
purchase a Nike product online, in-store, or from a retailer.

To influence customers during this stage, Nike can:

- Make it easy for customers to buy Nike products from a variety of channels
- Provide attractive pricing strategies, discounts, or bundle deals to make the products more appealing.
- Offer convenient payment options.
- Simplifying the online purchase process.

19
 6. Post-purchase behavior: When the customer finished making a purchase, the consumer will review
the choice they made and make a conclusion about the product. At this point, a customer becomes aware
of a specific product through actual use or reading past feedback.
To influence customers during this stage, Nike can:
- Collect feedback from customers about their experience with Nike products.
- Maintain high-quality standards in its products to meet or exceed customer expectations, reducing the
likelihood of dissatisfaction.
- Provide outstanding customer channels that can address any questions or concerns.
Offer customer loyalty programs and rewards to encourage customers to continue buying Nike
products

WEEK 6:

Chapter 8: Market Segmentation, Targeting, and Positioning

The present STP strategy of Nike INC.

Main market segmentation: geographic
Nike segments the market by geographic segmentation, such as North America, Europe, Asia-Pacific,
and Latin America. This allows Nike to tailor the products and marketing campaigns to the specific
needs and preferences of consumers in each region. For example, Nike may offer different running
shoes in different regions depending on the climate and terrain.

Nike's demographic segmentation is divided into age, gender, income, and education. Nike can
identify and target specific groups of consumers with the products and marketing messages. At this
point, Nike may target younger consumers with more stylish athletic apparel while targeting older
consumers with more comfortable and supportive athletic footwear.

Nike also divides the market based on psychographic segmentation, including values, hobbies, and
way of life. This makes it easier for Nike to locate people who share the same value system as theirs.
For example, Its Nike+ fitness tracker and app can go after consumers looking for fitness and a healthy
lifestyle.

Nike’s behavioral segmentation includes past purchases, brand loyalty, and online activity. Nike is
more accessible to recognize and target customers who are already engaged with brand or products. As
20
such, Nike can reach out to someone who recently purchased a pair of Nike running shoes through
emails regarding new running wear.

Targeting strategies for the target market:

When selecting the target markets, Nike carefully evaluates its market segments based on
various key factors. Nike considers the size of each market segment, aiming to focus on segments that
offer substantial revenuenpotential. Additionally, Nike assesses the reachability of each segment,
targeting those that can be easily reached through its existing marketing and distribution channels.

Another essential consideration for Nike is the measurability of their marketing campaigns. Nike
prefers segments that allow for accurate tracking and measurement of results. Moreover, profitability
plays a significant role in Nike's decision-making process. Nike carefully analyses the costs associated
with marketing and selling to each segment, ultimately targeting those that offer the highest level of
profitability.

In addition to these factors, Nike also takes into account the growth potential of each market segment.
By targeting segments that exhibit promising growth prospects, Nike positions itself to capitalize on
emerging markets. Furthermore, Nike evaluates the competitive landscape within each piece, preferring
to target segments where it has a competitive advantage.

Lastly, Nike considers brand fit a crucial element in selecting target markets. Nike seeks out segments
that align with their brand values and beliefs, ensuring an authentic association.

Recommendation for a new market segment:

Differentiating is one of the approaches used by Nike. This made Nike distinct from other firms because
they highlighted creativity, excellence, and design in their commodities and image. Also, the company
collaborates with renowned sports personalities and famous personalities and uses them as endorsers of
various products, which makes them even more unique and attractive.

Nike also employs another strategy referred to as niche targeting. They focused on distinct markets
encompassing athletic apparel and shoes like runners, basketball players, and footballers. As such,
understanding and serving the special needs and wants associated with these niche groups helps Nike to
design and market product lines that communicate specifically to its prospects.

21
Nike also applies another strategy of raising sales and customer loyalty through product bundling. They
have bundled products, which helps them sell many products at low prices to customers. This ensures
that they purchase several products at once and they are loyal to the brand.
The differentiation of Nike Inc.

22
Nike distinguishes itself from its competitors in multiple ways.

First, through innovation, Nike consistently introduces new and improved athletic footwear and apparel.
Over the years, Nike has pioneered groundbreaking technologies, such as the Air cushioning system,
which revolutionized the industry.

Second, Nike prioritizes performance by utilizing cutting-edge materials and technologies. Their
products are carefully designed to be lightweight, supportive, and durable, allowing athletes to excel in
their endeavors. For instance, their Dri-FIT technology effectively wicks away sweat, ensuring athletes
stay cool and dry.

Lastly, Nike's strong brand image plays a crucial role in setting them apart. Through extensive
marketing and advertising efforts, Nike has cultivated a reputation associated with innovation,
performance, and style. Their iconic slogan, "Just Do It," is instantly recognizable worldwide.

Nike position in the market

Nike positions itself as a premium brand by offering innovative and high-quality athletic footwear and
apparel, evident through their commitment to innovation and dedication to helping athletes reach their
full potential. The brand upholds a strong and captivating image associated with style and inspiration.

Nike's positioning is evident in the marketing campaigns, product development, and pricing strategies.
Nike has one of the most famous advertising campaigns, “Just do it,” which means give your best to
achieve the desired result. In essence, Nike’s products feature the newest technological innovations and
materials necessary to improve an athlete’s performance. Although they fall in the high end of the price
range, Nike is well known for the quality “investment” that every athlete seeks.

To strengthen Nike's position in the global market, Nike collaborates with well-known sports celebrities
who promote Nike’s goods. They associate the brand with positive and famous icons such as LeBron
James, Cristiano Ronaldo, and Serena Williams, which strengthens the links with consumers and
enhances Nike’s reputation.

Communcation and deliver the position to the market

23
Nike effectively communicates and delivers their position to the market through various channels. With
a strong emphasis on advertising, Nike invests substantial resources in promoting its brand and
products. Their advertising campaigns are known for being inspirational and motivating, often featuring
highly renowned athletes and celebrities.

In addition, Nike leverages the power of social media platforms, including Instagram, Twitter, and
TikTok, to engage with their customers. Through these channels, Nike establishes a direct connection
with its target audience, sharing its brand story and promoting its products effectively. Social media
posts showcasing athletes using Nike products, coupled with contests and giveaways, further enhance
customer engagement and brand visibility.

Furthermore, Nike's sponsorship of athletes and sports teams worldwide plays a pivotal role in alignment
with their brand position. By associating the Nike brand with athletes and sportsmanship, Nike conveys
positive values and images such as athleticism, competition, and excellence. Notable sponsorships
include prestigious sports events like the FIFA World Cup, the NBA, and the NFL.

24
 WEEK 8
I. Nike’s Innovative Products
1. Nike’s footwear products:
Introduction stage: When Nike introduce a new line of sports shoes, the marketing activities focus on
creating awareness and generating consumer interest. They use various channels, such as advertising
campaigns, athlete endorsements, and social media promotions, to build brand recognition and attract
potential customers.

Growth stage: Once Nike’s sports shoes gain traction in the market, they enter the growth stage. By
diversifying our distribution while enhancing the offerings to more closely match niche interests within
the athletic realm, Nike propel their promotional initiatives into new domains to attract increased
interest from a broader range of relevant audiences. They also introduce colour variations or limited
editions to cater to diverse consumer preferences.
Maturity stage: Nike’s sports shoes have become well-established in the market, and competition from
other brands has intensified. By leveraging diverse tactics like price reductions, debuting reimagined
promotional efforts, and accentuating our footwear's singular traits and innovations, they shall
endeavour to safeguard their portion of the marketplace. Sponsorships of sports events and
collaborations with professional athletes also help enhance brand credibility.

Decline stage: Eventually, demand for a particular model of Nike sports shoes may decline due to
changing trends or the introduction of newer models. In this stage, they may reduce marketing efforts
for that specific model, promote clearance sales, or discontinue the product altogether.

Besides that, Nike could consider incorporating sustainable practices in producing our sports shoes to
align with increasing environmental consumer consciousness. By strategically employing targeted
digital promotions, customized advertisements, and endorsements propagated by figures of online
notability, it is possible to expand their reach and stimulate interaction with a more extensive pool of
potential patrons.

II. Nike’s Products and Services

Convenience products: Nike provide products like socks, sweatbands, and sports bras that are easily
accessible in stores and online so that customers can easily find them. These products are designed for

25
 everyday use and cater to customers looking for convenience and ease of purchase.

Shopping products: Their range of footwear and apparel falls into this category. These products require
more consideration and research before purchase, as customers often compare brands and styles. At
Nike, they employ various marketing strategies such as aggressive advertising, celebrity endorsements,
and collaborations to attract and engage consumers during their decision-making process.

Specialty products: Nike also offer limited edition or high-end products such as signature athlete shoes
or designer collaborations. These products cater to customers with specific tastes and preferences. At
Nike, they create excitement around these products through exclusive releases, engaging our target
audience through social media, and partnering with influencers to enhance their desirability.

Unsought products: Occasionally, Nike introduces new innovative products that customers may not
actively seek out. These include experimental footwear technology or new sports equipment. To
generate awareness
and interest in these unsought products, they apply targeted advertising and public relations campaigns
to create a demand.

It is important to continuously innovate and adapt Nike’s marketing strategies to meet the needs and
preferences of their customers. By focusing on creating convenience, providing an engaging shopping
experience, offering specialty products, and introducing exciting and innovative unsought products,
they can maintain a strong position in the market and continue to satisfy Nike’s customers' demands.

III. New Product Idea

Collaborations with influential athletes: Partnering with famous athletes in different sports disciplines
can greatly enhance the brand image, increase product visibility and build community relationships.
These collaborations can include endorsement deals, co-branded product lines, or sponsorship of
athletes in major sporting events (Pitch,2023). By aligning Nike with successful and recognized
athletes, they can inspire and resonate with Nike’s target audience.

Community engagement programs: Implementing community engagement programs can help Nike
connect with their customers deeper and demonstrate Nike’s commitment to social impact. This can
involve organizing running events for charity causes, initiating sports programs in underprivileged
communities, or supporting initiatives that promote physical fitness and healthy lifestyles.

26
Sustainable initiatives: Emphasizing Nike's commitment to sustainability can be a significant
marketing opportunity. By adopting greener approaches in our production methods, like utilizing
recyclable components, curbing excess, and appealing to those caring for the planet's endurance, they
can attract buyers seeking brands respecting environmental conscientiousness.

Partnerships with fitness apps and technology companies: Collaborating with fitness apps and
technology companies can create unique opportunities for targeted marketing and customer
engagement. By forming partnerships, Nike can integrate products with fitness apps to track
performance, provide personalized training plans, and offer rewards for achieving fitness goals. This
strengthens customer loyalty and allows Nike to gather valuable data for future product development
and marketing strategies.

Quality management for the product

Nike is strongly committed to quality and has implemented various quality control measures
throughout production. They have stringent testing procedures to ensure that the products meet the
highest performance, durability, and comfort standards.

However, Nike should further enhance the quality control processes to embrace total quality
management fully. Nike can implement comprehensive quality assurance checkpoints at every product
lifecycle stage. This includes conducting thorough inspections of raw materials, closely monitoring
production processes, and conducting rigorous testing to identify any potential defects or issues.

Additionally, fostering a culture of quality throughout the organization is essential. Nike can be
achieved by providing comprehensive training to all employees on quality standards, encouraging
open communication and feedback, and empowering employees to take ownership and responsibility
for ensuring product quality.

Describe the product mix

The product mix consists of various categories, including footwear, apparel, equipment, and
accessories.

27
Footwear: Nike is widely known for its innovative and high-performance footwear. They have a wide
selection of athletic shoes for different sports, including running, basketball, soccer, tennis, and more.
Their shoes are designed with advanced technologies to provide superior comfort, support, and
performance.

Apparel: Nike's apparel line includes sportswear, activewear, and athleisure clothing. Nike’s tops,
bottoms, and outerwear for men, women, and children is available around the world. Their apparel is
both stylish and functional, using high-quality materials providing comfort, ease of movement, and
moisture-wicking properties.

Equipment: Nike also offers a range of sports equipment and gear. This includes items such as
basketballs, soccer balls, tennis rackets, golf clubs, and training equipment. Nike’s equipment is
always meet the specific requirements of different sports, providing athletes with reliable and high-
performing gear.
Accessories: In addition to footwear, apparel, and equipment, Nike have a variety of accessories.
These include items such as bags, sunglasses, hats, socks, and sports watches. Their accessories are
designed to complement and enhance the overall sports experience for Nike’s customers.

28
 WEEK 9: CHAPTER 10 MANAGING SUCCESSFUL PRODUCTS. SERVICES, AND
BRANDS
Product: Nike’s type of product from Nike that can focus on is running shoes.
Introduction stage: Nike introduces a new line of running shoes to the market in this stage.
Marketing activities during this stage focus on creating product awareness and generating consumer
interest. Nike typically uses a combination of advertising campaigns, athlete endorsements, and social
media promotions to build brand recognition and attract potential customers.

Growth stage: Once the running shoes gain traction in the market, they enter the growth stage. Nike
continues its marketing efforts by expanding distribution channels, improving product features, and
targeting specific segments of the running community. They may also introduce variations of the
shoes, such as different colors or limited-edition versions, to cater to diverse consumer preferences.

Maturity stage: At this point, Nike's running shoes have become well-established in the market, and
competition from other brands has intensified. Nike employs various marketing strategies to maintain
market share, such as offering discounts, launching new marketing campaigns, and emphasizing their
shoes' unique features and technologies. They also sponsor running events and collaborate with
professional athletes to enhance brand credibility.

Decline stage: Eventually, the demand for a particular model of Nike's running shoes may decline due
to changing consumer preferences or the introduction of newer, more advanced models. In this stage,
Nike may reduce marketing efforts for the specific model, promote clearance sales, or discontinue the
product altogether.

For further suggestions, Nike could consider implementing sustainable and eco-friendly practices in
producing running shoes to align with increasing consumer consciousness about environmental
impact. Nike could also leverage digital marketing techniques, like personalized ads and social media
influencers, to reach a wider audience and drive engagement. Additionally, exploring partnerships with
fitness apps or wearable technology companies could offer new opportunities for data-driven
marketing and personalized customer experiences. Nike should continue to innovate, adapt to changing
market dynamics, and prioritize customer satisfaction to maintain a strong position in the running shoe
market.

29
 WEEK 10: PLACE STRATEGY

Analyze the direct marketing

One of the products Nike concentrates on and spends the most effort on is footwear.

Pricing strategy
A typical pricing strategy that Nike may use is a premium pricing strategy. This strategy entails
setting a higher price than competitors to create a premium brand image and emphasize the quality and
exclusivity of the product. This points to Nike sneakers' quality and exceptional performance, which
draw buyers searching for top-tier footwear. Additionally, this tactic promotes exclusivity and
extravagance, draws in worthwhile customers, and raises the profile of expensive items

The pros and cons of this strategy.

Pros of premium pricing strategy:

30
Perception of quality: Higher prices may attract buyers who appreciate high-end goods by evoking
impressions of outstanding quality and superior production.

Brand image: High prices also create a sense of exclusivity and prestige among customers who value
owning premium products, increasing interest in the brand.

Profitability: The premium pricing strategy gives Nike higher margins on our products, helping to invest
in research and development of breakthrough technologies and materials.

Cons of premium pricing strategy:

Price sensitivity: Budget-conscious customers who wish to buy things with lower costs could look for
rival products that are less expensive than Nike.

Competitive disadvantage: Price-sensitive customers may be drawn to rivals' comparable-quality items

at cheaper costs, which might result in a loss of market share.

Limited market reach: Nike's potential customer base may be limited by premium pricing because not
all consumers are ready or able to pay premium rates.

Choosing a premium pricing strategy helps Nike create a strong brand image and attract customers who
want to own its premium products. But Nike has to consider customers' price sensitivity and adjust its
pricing strategy based on the company's and market's situation.

Marketing by use uses a product line/mix pricing strategy

31
Describe the product line/mix pricing strategies of the company
Nike uses a product line/mix pricing strategy to set prices for the new products in the market. This
strategy involves setting different price points for various product lines or categories based on features,
materials, design, performance, and target market.

Nike offers customers a wide range of items, including sports shoes, clothes, sports equipment, and
sports accessories. Each product line is aimed at different customers with varying demands.

Nike also offers a variety of running shoes, priced from around $100 to $300. The price of each shoe is
based on the features and performance. For example, the Nike Air Zoom Pegasus is a popular running
shoe that is priced at around $130. The Pegasus is a good all-around running shoe that offers good
cushioning and support. The Nike ZoomX Vaporfly Next is a high-performance running shoe that is
priced at around $275. The Vaporfly is a lightweight and responsive shoe that is designed for elite
runners. (Melbado, n.d)

Besides, the Nike Revolution line will be less expensive than the premium line because of the simpler
design and fewer features. However, it will still provide customers with comfort when wearing.

In addition, Nike also releases limited collections in collaboration with celebrities such as singers and
sports athletes, designers and artists which are often priced higher due to their exclusivity and unique
features. ( TBH, 2023)

By employing a product line/mix pricing strategy, Nike can cater to a wide range of customers with
different budgets and preferences. It allows the company to maintain a premium image while offering
more accessible options.

It's essential to note that market demand, production costs, rival price, and overall marketing strategy
can all affect pricing decisions for new products.

Suggest any intermediaries that could be possible for Nike

To improve the pricing strategy of Nike, I have some suggestions below:
Target different customer segments with different prices. Nike could segment its customers based on
factors such as income, age, and loyalty. It could then offer different prices to different segments, based
on their willingness to pay. For example, Nike could offer lower prices to students or seniors, while
charging premium prices to collectors or high-income customers.
 MKT 113 – ANALYSIS OF MOMO

Use bundling to increase sales. Nike could bundle the products together to offer customers a discount.
For instance, Nike could bundle a pair of shoes with a matching shirt or socks.

33
 Reference

Associated Newspapers. (2011, July 13). Nike Workers “kicked, slapped and verbally abused” at factories
making Converse. Daily Mail Online. https://www.dailymail.co.uk/news/article- 2014325/Nike-
workers-kicked-slapped-verbally-abused-factories-making-Converse-line- Indonesia.html

Carlos, J. (1673, October 6). Sports apparel market in-depth analysis globally by top key players.
LinkedIn. https://www.linkedin.com/pulse/sports-apparel-market-in-depth-analysis- globally-top-key-
juan-carlos

Guardian News and Media. (2022, May 10). Spot the difference: The Invincible Business of Counterfeit
Goods. The Guardian. https://www.theguardian.com/fashion/2022/may/10/spot- the-difference-the-
invincible-business-of-counterfeit-goods

History of nike: Timeline and facts - thestreet. (n.d.). https://www.thestreet.com/lifestyle/history- of-nike-

15057083

Huy Nhat. (n.d.). Mẫu giày nike do G-dragon thiết kế Cháy Hàng Trên Toàn Cầu. Advertising Vietnam.
https://advertisingvietnam.com/nike-thiet-ke-g-dragon-chay-hang-tren-toan-cau

Nike does it again claiming title of world’s most Valuable Apparel brand for 7th consecutive year: Press
release. Brand Finance. (2021, April 8). https://brandfinance.com/press-releases/nike- does-it-again-
claiming-title-of-worlds-most-valuable-apparel-brand-for-7th-consecutive- year