“STRATEGIC MARKETING PLAN OF NIKE”

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“STRATEGIC MARKETING”

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Table of Contents
1. Executive Summary:..................................................................................................................................4
Product Description...................................................................................................................................4
2. A Critical Analysis of the Market Context................................................................................................5
Competition:..............................................................................................................................................8
Current Customer Attitudes/Behaviors:.....................................................................................................9
Main Issues/Opportunities:......................................................................................................................10
3. STP (Segmentation, Targeting and Positioning).....................................................................................10
3.1 Market Segmentation of Nike............................................................................................................11
3.2 Targeting of Nike:..............................................................................................................................12
3.3. Positioning of Nike...........................................................................................................................12
4. Nike Marketing Mix (4Ps) Analysis Mind Map:.....................................................................................13
Traditional marketing mix elements:.......................................................................................................13
4.1. Market segmentation:........................................................................................................................13
4.2 Nike Price Strategy:...........................................................................................................................14
4.3 Nike Place Strategy............................................................................................................................15
4.4 Nike Promotion Strategy....................................................................................................................15
4.2. Services marketing mix elements (where appropriate):....................................................................15
4.2.1. People:........................................................................................................................................16
4.2.2. Physical evidence:......................................................................................................................16
4.2.3. Process management:.................................................................................................................17
5. A Discussion of Implementation Issues...................................................................................................17
6. Conclusion & Recommendations............................................................................................................18
7. References:...............................................................................................................................................18

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1. Executive Summary:
This article suggests a way to market Nike products based on study that has already been done.

This paper talks about Nike's plan for bringing new goods to the market. There is a lot of detailed

information about the company and its marketing plan in the report. Through the lens of the 4Ps,

the study looks at Nike's marketing goals and methods. The report looks at the market, Nike's

rivals, and the company's present and future standing. This shows how Nike could grow its

product line by meeting customer demand for similar items, like exercise gear, and changing its

pricing policy to reflect that. Nike is thinking about going into new places to sell its products,

like China and the Middle East. It also wants to better market new goods through social media

and other non-business channels. The budget for the marketing effort has also been set. The

budget was made by looking at how much Nike spent on sales and marketing in the past. Nike

has also come up with a backup plan and a way to deliver. Senior leaders in the company need to

work together to make sure that goals are met and new products are brought to market (Salamie,

David, 2006).

NIKE
Product Description

Nike was founded in 1964 by Phil Knight and his tutor Bill Bowerman under the name Blue Ribbon

Sports. Nike has been consistent with its name since 1971. In 1978, the Portland, Oregon-based

Corporation began to pursue global expansion. Nike is the largest marketer of sports equipment in the

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world, thanks to its extensive history of R&D and invention, which has resulted in a massive and devoted

consumer base. Sales of athletic apparel, footwear, and accessories are Nike's bread and butter. When

developing and manufacturing their products, Nike devotes a great deal of attention to quality and

innovative concepts. Nike, the Greek goddess of triumph and success, was the inspiration for the

company's name. Feathers signify ethereal flight, vitality, grace, and existence, and they adorn the

goddess's wings. Along with the phrase "Just do it," this emblem represents the pursuit of excellence.

Two of Nike's main objectives are providing athletes throughout the world with the resources they need to

excel and inspiring a new generation of athletes with innovative products and services. These two lines

not only explain why Nike is loved by individuals from many walks of life, but they also encourage

everyone to have a healthy and active lifestyle (Nike News, May 04).

2. A Critical Analysis of the Market Context

Starting off as a modest distributor, the company has developed into the largest sports brand distributor

globally. Despite numerous good shifts in the sports industry and beyond, Nike has maintained its

impressive track record of financial success. In 1987, Nike introduced the Air Max shoe. By dampening

vibrations and incorporating compressed air into a durable synthetic rubber coating, this technique

rescues athletes' knees, a seemingly endless supply of innovative, high-quality footwear is produced by

this crucial technology as it undergoes continuous improvement. Additionally, since 2011, Nike's

dominance in the sports shoe industry has remained unshakeable. Not to mention the improvement that

has already been mentioned.

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 Fig. 1 Forecast of Nike's global market share in athletic footwear from 2011 to 2025

The stationary data indicates Nike's enduring dominance in the global sneaker industry,
encompassing 27.4% of the predicted value since 2019. Additionally, Figure 2 demonstrates that
Nike possesses nearly half of Adidas, the runner-up, will have a market share that is almost
double that of Nike by 2021. Moreover, in terms of market share, Nike dominates the remaining
six companies combined (SMITHSON, 2016).

Fig. 2 Market Share of Leading Sportswear Brands (2021)

Compared to other well-known sneakers, in the past decade or so, Nike's revenue in the footwear
Segment always stands out.

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 Fig. 3 Revenue from footwear segment of Nike, Adidas and Puma from 2010 to 2021 (in
billion U.S. dollars)

Figure 3 shows how Nike's footwear segment income consistently climbed between 2010 and

2021, exceeding that of Adidas and Puma. The annual growth rate has increased dramatically

since 2012 and will continue to do so until 2020. Despite a considerable fall in sales between

2019 and 2020, Nike's shoe sales increased to $28.02 billion in 2021, more than twice as much

as Adidas' as and more than eight times as much as Puma's. This suggests that, despite the

epidemic, Nike's growth has outperformed the other two labels.

Competition:
Nike's main competitors, Reebok and Adidas, create and sell goods that share many design and

marketing similarities with Nike. These items are for athletic footwear, equipment, and fitness

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activities. Nike, on the other hand, has a separate marketing strategy to establish itself in the

market. Nike is a market player with a strong and enduring brand that constantly raises consumer

brand awareness.

Nike retains market leadership and is tough for competitors to match due to its target market's

instant recognition of its sports icons, "Just Do It" attitude, and "Swoosh" brand.

Nike separates itself from its competitors primarily through two factors: the benefits it provides

to customers and the strict quality standards it enforces. Nike's powerful brand is largely due to

its broad use in both American and global culture. This makes it extremely tough for competitors

to duplicate. Almost no company can market its name and resources as effectively as Nike. Its

marketing campaigns revolve around the motivating phrase "Just Do It," which promotes fitness,

sportsmanship, and competitiveness, as well as quality items and the goal of increasing self-

confidence. This favorable influence may assist younger shoppers. (Deng, 2009)

Nike's market share and position in the athletic business are depicted in the graph. Nike controls

the majority of the global market, accounting for 31% of the total. Adidas and Reebok, on the

other hand, have 16% and 6% of the market, respectively.

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Current Customer Attitudes/Behaviors:
People who want unique, high-quality, and new products often look to Nike. The company's

brand has a personality that makes it stand out. People like certain brands more now that there is

a link between sports and the "Just Do It" phrase.

People are becoming more aware of the environment, which is making more people want to use

more environmentally friendly methods. An increasing number of people, particularly younger

people, want to buy from companies that care about the environment and use fair supply chains.

Because Nike's digital platforms bring in a lot of money for the company, there has been a big

rise in the number of people who buy things online. This trend is mostly caused by more people

shopping online, a wider range of products, and easy navigation. Athletic clothes that are

comfortable and can be worn in a variety of ways are popular, especially among people who

don't do a lot of physical exercise. This was the start of the sportswear trend. Most of the time,

Nike gear fits in with this way of life.

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Main Issues/Opportunities:
To meet the needs of customers who want eco-friendly and sustainable goods, many chances and

problems need to be thought about. Nike could show its support for these kinds of efforts by

using and supporting environmentally friendly business practices. There is a lot of competition in

the clothing business, so new ideas and improvements are always welcomed. To stay relevant,

marketing, technology, and design must always come up with new ideas. There are a lot of

opportunities in predicting trends and making new products

The buying power of customers and the state of the economy as a whole are two macroeconomic

factors that affect sales. When people don't have much money, they might think about buying

clothing or other useless things. Even though they are still being built, places with strong

economies may be better places to live.

Digital Engagement: This kind of digital technology is a must for marketing and sales. The rise

of social media sites has made it possible for companies like Nike to talk to their customers

directly. No matter what, the amount of damage to the brand that can be avoided depends on how

responsible and skilled the organization's managers are. People are increasingly likely to choose

to do business with companies that actively support diversity and tolerance. Nike's protests have

made a big difference in promoting social justice and variety. On the other hand, the group may

face more chances and problems in the future.

3. STP (Segmentation, Targeting and Positioning)

If you find it boring to use charts to organize facts, you can use mind maps instead, which are
more modern and easy to use. That's how it seems to be.

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3.1 Market Segmentation of Nike
Market segmentation divides ideal customers. Nike categorizes customers by demographics,

interests, requirements, goals, and behavior/psychology. Companies define segments differently.

Nike serves behavioral, demographic, regional, and psychographic clients. Nike categorized

clients by income, gender, and age. Nike divides items by gender and age. Ages 15–55. The

company sells children's, men's, and women's items. Nike offers discounts and incentives to keep

prices low. Businesses use sales before holidays and other key events to publicize. It lets Nike

sell to consumers who wouldn't otherwise buy. Nike has stores internationally because to global

segmentation. We learn that each country has its unique culture and lifestyle. To satisfy

consumers worldwide, the corporation has developed several products. Nike uses different

marketing strategies on all continents and oceans because sports vary per city. European

promotions prioritize football, while American ones highlight basketball and baseball. Nike

targets Sydney and England with rugby and cricket advertising in New Delhi, India. The US,

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Western Europe, and China are Nike's major markets. Company focuses on these regions and

cities. Nike's psychographic segmentation strategy offers customers a selection of customized

products. Market segmentation helps Nike service each consumer (Wightman-Stone, 2015).

Finally, Nike uses behavioral segmentation by selling sports gear, warm clothes, and comfy

shoes. To accommodate all clients, Nike offers multiple product variations. Your Nike clothes

make you look athletic. Customers like its large selection of creative, high-quality products. Nike

encourages their target audience to provide product reviews online. Customers' buying habits

will shift drastically.

3.2 Targeting of Nike:

The objective of this segment of the marketing strategy is to identify market segments that will

offer the company the most feasible and effective means of achieving its objectives. As you are

likely aware, Nike offers products for individuals of all ages and genders. Nike manufactures an

extensive range of footwear to cater to diverse sporting and recreational pursuits, encompassing

gym shoes, skateboarding, cricket, running, and strolling. Nike currently offers yoga shoes

designed specifically for women. Presently, the organization has established a junior division

catering to aspiring athletes. Nike produces high-quality footwear in an assortment of hues on the

assumption that its clientele will find the footwear satisfactory irrespective of its comfort level.

3.3. Positioning of Nike

The establishment of a brand in comparison to rivals within the same sector requires meticulous

deliberation regarding its positioning. Nike has diligently labored to position itself as the

preeminent entity in the sports equipment industry by virtue of its unique and innovative

merchandise. As a result of associating Nike's advertising campaigns, the swoosh logo, and the

"Just Do It" slogan with exceptional athletic achievements, consumers developed a perception of

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the company as possessing confidence and wealth. Nike distinguishes itself from competitors

and establishes a connection with athletes through the use of potent and distinct emotions. The

brand's prominence in the fashion industry has been aided by its products, which depict regional

lifestyles from around the globe. Conversely, Nike has achieved considerable success in

marketing its merchandise as the preeminent substitute for athletic apparel.

4. Nike Marketing Mix (4Ps) Analysis Mind Map:

Traditional marketing mix elements:
One can enhance comprehension of the functioning of these four Nike marketing mix concepts

by categorizing them using a diagram (Gregory, 2022). The analysis of Nike's marketing formula

(4Ps) is provided below.

4.1. Market segmentation:

Market segmentation divides firm clients. Nike categorizes customers by demographics,

psychographics, interests, requirements, and behaviors. Locations vary for company sections.

Nike groups clients by race/ethnicity, personality, buying habits, and location. Nike examined

buying power, age, and gender. Nike targets 15–55-year-old men and women. The company

organizes products by gender for kids and teens. Nike may provide discounts. The company may

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provide discounts during major events to entice clients. This may help Nike sell pricey items.

Geographic segmentation is Nike's global expansion strategy. These sections recognize each

country's different cultures and lifestyles. Many products were made to serve customers in

multiple markets. Nike advertising represent regional and national sports in Asia, Africa, Europe,

and Australia. Many American advertising feature football or baseball, while Europeans feature

soccer. Nike advertising emphasize cricket gear, while New Delhi Sydney and England

commercials promote cricket and rugby. China, US, and Western Europe are Nike's key markets.

The company thoroughly researches these cities' markets. Psychographic segmentation helps

Nike satisfy clients. Segmenting clients helps Nike understand their demands. Finally, Nike's

behavioral segmentation method produces high-quality clothing, supportive shoes, and essential

accessories. Nike has several goods for different tastes. Nike consumers dream of playing. Its

innovative, high-quality, and unique items engage customers. Nike says family and friends

should post on social media. Purchases will be greatly influenced(Oberoi, 2020).

4.2 Nike Price Strategy:

Nike sells everything at high and low prices. A corporation uses value-based pricing to calculate

product costs using market prices. Before pricing, a detailed survey assesses product sentiment

and price points. If this price approach continues, Nike may have more cash. In contrast, Nike

charges extra for higher-quality products to obtain an edge over competitors. Luxury product

price increases are likely to boost revenue and demand. Nike's advertising approach relies on

famous faces to boost the premium brand's image. Nike occasionally offers discounts online and

in-store. These periods may offer "Easter sales." This method will keep and attract clients. Nike's

high prices reflect its technological advances. The company considers market conditions when

setting prices.

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4.3 Nike Place Strategy
At this stage of the marketing plan, we carefully select groups that can assist us achieve our goals

most efficiently and practically. Nike targets men, women, and children. Nike makes shoes for

football, basketball, skateboarding, softball, tennis, golf, and cricket for both sexes. Nike

launched a women-specific yoga shoe line. The organization's kids division can help young

athletes improve. Nike shoes come in many colors and are high-quality. The goods' ease of use

and attractiveness bring clients joy and satisfaction.

4.4 Nike Promotion Strategy

A company's brand is "placed" in the market compared to competitors. Nike remains the top

sports equipment brand by developing creative and technologically advanced products.

Advertising campaigns spotlighting the extraordinary achievements of famous athletes from over

the world, the "Just Do It" tagline, and the swoosh logo affected consumer decisions. Nike uses

acute and unique emotions to connect with athletes and differentiate them. The brand is also

known in fashion for its pieces that capture local cultures and traditions. Nike customers think its

sporting shoes and clothes are the best (Ahmed, 2016).

4.2. Services marketing mix elements (where appropriate):

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4.2.1. People:
Internal and external viewpoints are included in the "people" component of the marketing mix.

Although it looks to emphasize the importance of personnel to marketing success, it actually

emphasize how diverse and individual each client is, each with their own set of requirements.

Staff meetings frequently decide the degree of service quality provided to consumers,

emphasizing the need of recruiting and training. Advertisements commonly include athletes and

celebrities. Consumers shape brand experiences, which provoke strong emotions. Digital

communication and social media can boost brand loyalty and engagement. Brand loyalty

increases when individuals believe there is a "us against them" based on shared values.

Supporters can be classed as superordinate, subgroup, or relational, according to the Multiple In-

group Identity Framework. The categories that are included vary.

4.2.2. Physical evidence:

Nike's physical evidence approach is based on using things that can be seen and touched, like

store design, product displays, and staff uniforms, to draw attention to the brand. The use of

well-known symbols throughout the stores helps to maintain the consistent and easy-to-recognize

image of the Nike brand, and the stores look great. Nike also puts a lot of work into coming up

with new ideas. This is clear from the way the company develops and makes its goods, which

shows that they are dedicated to using the latest performance and technology. To meet the needs

of its customers around the world, Nike uses effective and efficient production methods,

especially when it comes to process management. Nike's top goal is to make sure that operations

run smoothly. This includes making the supply chain better and using manufacturing ways that

are better for the environment. Excellent goods and service come from this strategy, which

makes sure that the brand's values are upheld at all times.

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4.2.3. Process management:
Nike uses a thorough method of process management to make their activities better and more

efficient. Nike's top goal is to make sure that operations run smoothly. This includes setting up

efficient supply networks and using production methods that are good for the environment. The

company uses cutting-edge technology and new ideas at every step of the production process to

make sure the best quality goods. Nike is a brand that aims for perfection and acts quickly to

meet customer needs. One thing that sets them apart is their efficiency in production and

delivery. Nike stays ahead of the competition in the tough sportswear industry by putting an

emphasis on operational efficiency, caring for the environment, and new ideas.

5. A Discussion of Implementation Issues

Several critical issues must be resolved prior to the utilization of Nike products, including

apparel and innovative technology. At the core of their technological aspirations is the

integration of smart technologies and devices, such as the Nike Personalized Fitness Tracker,

whether it is already in production or available for purchase. It might be challenging to establish

stringent data privacy and security regulations to safeguard user information. Because inaccurate

data renders fitness tracking useless, gaining consumers' trust requires reliable performance

metrics. A long-lasting battery, an intuitive UI, compatibility with a wide range of devices, and

encouragement to visit relevant health and fitness websites are all ways to keep consumers

satisfied. When putting Nike items into action, it's crucial to think about scalability to manage a

rising user base, legal compliance, good feedback mechanisms, editable features, and following

the laws. Nike products are designed to cater to both customer wants and emerging technologies

with these attributes. Maintaining open communication with consumers and taking their

feedback into consideration will help Nike develop and launch new products (David, 2006).

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6. Conclusion & Recommendations
Nike can accomplish its objectives, develop new products, and increase its market share,

according to recent business and market studies. This is why you should review Nike's long-term

strategy and objectives, paying close attention to the following sections:

 A good example would be for the business to expand its offerings to include parkour and

aerobics gear.

 It has to increase its social media posting frequency for marketing reasons.

 A partnership between the two companies might see technology integrated into soccer

and golf game controllers.

 A solid management structure may already be in place to handle employee concerns.

 Athletes and famous people can be educated about the product through online video

training sessions.

 The company's worldwide business spectrum may expand in a sustainable and long-

lasting manner if this happened.

7. References:
 Deng, T. (2009). ‘Just Done It’--- Nike’s New Advertising Plan Facing Global Economic
Crisis. International Journal of Business and Management, [online] 4(3).
doi:https://doi.org/10.5539/ijbm.v4n3p102.
 Elizabeth, R. (2006). Nike Inc | Encyclopedia.com. [online] www.encyclopedia.com.
Available at: http://www.encyclopedia.com/topic/NIKE_Inc.aspx [Accessed 09 Dec.
2023].

 SMITHSON, N. (2016). Nike’s Mission Statement & Vision Statement (An Analysis).
[online] Panmore Institute. Available at: https://panmore.com/nike-inc-vision-statement-
mission-statement.

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  Kemp, S. (2022). Digital 2022: Global overview report. [online] DataReportal. Available
at: https://datareportal.com/reports/digital-2022-global-overview-report.
 Nosto (2021). How Does Social Media Influence Consumer Behavior? 14 Stats | Stackla.
[online] Nosto. Available at: https://www.nosto.com/blog/how-does-social-media-
influence-customer-behavior/.

 COTW (2020). Nike: Play for the World | Campaigns of the World. [online]
campaignsoftheworld.com. Available at: https://campaignsoftheworld.com/tv/nike-play-
for-the-world/ [Accessed 10 Dec. 2022].
 Oberoi, M. (2020). Nike’s Target Markets: Everything You Need to Know. [online]
Market Realist. Available at: https://marketrealist.com/2019/10/nikes-target-markets-
everything-you-need-to-know/.
 Uğur, L. (2013). CONSUMER BEHAVIOR – Psychological Factors. [online] Nike Shoes
Market Research Project. Available at: https://ladinladin.wordpress.com/consumer-
behavior-psychological-factors/.
 Wightman-Stone, D. (2015). Nike chairman Phil Knight to step down in 2016. [online]
Fashionunited.uk. Available at: https://fashionunited.uk/news/people/nike-chairman-phil-
knight-to-step-down-in-2016/2015070116905.
 Ahmed, R.R. (2016). (PDF) Strategic Marketing Plan of Nike. [online] ResearchGate.
Available at:
https://www.researchgate.net/publication/299889166_Strategic_Marketing_Plan_of_Nike
 Gregory, L. (2022). Nike Inc.’s Marketing Mix (4Ps/Product, Place, Promotion, Price) -
An Analysis. [online] Panmore Institute. Available at: https://panmore.com/nike-inc-
marketing-mix-4ps-product-place-promotion-price-analysis.

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