10 STEP

Marketing Plan for NIKE

Tanya Marie Labrador
October 2010

5 Steps for Part 1

(PTM and Positioning)
1.

2.

3.
4.

5.

Nike PTM is active people who enjoy

high-quality sporting goods, especially
footwear.
Good association with no. 1 sports/
fashion brand
Adidas, Fila, Reebok, Puma
Other brands dont sell accessories such
as sunglasses, jewelries and apparel
The market size is $19.2 Billion.

5 Steps for Part 2

(Marketing Mix & Strategy)
6.

7.

8.

9.

10.

Sports apparel (Footwear)

Based on the basis of premium
segment as target customers
Uses famous athletes as brand
ambassadors, TV ads, targeted
advertising in print ads and sports
events (sponsorships)
Distributed worldwide (Nike stores
across the globe)
Market Leader Nike is a global brand
(enormous brand awareness)

Positioning to the
Primary Target Market
Part 1:
Steps 1 to 5

1. Nikes primary target

market (PTM) are teens

Demographics (18-40 [largest are

teens], M/F, social class AB, single/
married)
Lifestyle (active teens, athletic/ sporty
individuals, casual lifestyle with
fashionable taste)
Behavior (sneakers as fashion
statement, fitness craze, multipurpose
shoes, hip,)

Im fulfilled when I feel

important and recognized

I want to belong to
the coolest group

I want the
status symbol
of being the
best

2. Nike PTMs NWE

Teens need To belong (social), be recognized (self-Esteem),
know they are important & self fulfilled (Self
actualization)
Teens choose Nike over other brands because of .
Quality, Durability, Style, good reputation,
breakthrough design and technology of products,
packaging, sense of being associated with the
best, no. 1 brand;
Teens expect this when they use Nike products:
Cool, Confident, Stylish, having a positive
attitude when they exercise/ workout

3a. Nike has several

competitors

Direct: Adidas, Fila, Puma, Reebok, New

Balance, And One, Umbro

Indirect: Non-athletic footwear

brands, Crocs, K-swiss, Converse,
Sketchers, Timberland

Variables: Age, Price, lifestyle, specific

use, desirability of product, brand

Nike is #1 leader in the market:

Price vs. Age Matrix
high priced product for 18-27yrs

Price/
Age
Matrix
High
price
Low
Price

7-17yrs

18-27yrs

Adidas

Nike
Kids

Puma

Nike
Puma
Fila

28-40 yrs

New
Balance

New
Balance

Fila

40yrs up

Reebok

4. Nike positions itself as the

no. 1 brand
Nike is the brand
that top athletes use
for teenagers and hip individuals
that makes shoe better for everyone
that offers a new style
NWE not being addressed: Other brands are still
cheaper ; Substitutes
USP: Professional athletes from around the world
use Nike even today

5a. Based on competitor data,

sports apparel market is P13.3
billion

http://www.mcafee.cc/Classes/BEM106/Papers/2009/Adidas.pdf

5a. Based on competitor data,

sports apparel market is P13.3
billion

http://www.wikinvest.com/stock/Adidas_AG_(ADD
YY)

5b. Based on Nike data, Nike

share is 33% from total market
size of $278.4 billion
1.
Nike sales is $18.6 billion
2.

3.

Market share is 33%

Total sports apparel market size is
$278.4B as of 2007
(http://www.marketingcharts.com/direct/global-sportsequipment-apparel-and-footwear-market-nearly-280b-5548/)

5c. Consumer data indicates a

size of $ 278.4 billion
Nikes demand:
6,877,800,000 worldwide population,
33% market share, $ 278.4 B
market size
91.8B (33% of market share)/ 22,000
stores = $4172.72 sales per store/
yr

5. Concluded that sports

apparel market is 278.4 billion
1.

Competitor data = $ 13.3 B

2.

Company data = $ 18.6 B

3.

Usage data = $ 278.4 B

The Marketing Mix Strategy

Part 2:
Steps 6 to 10

16

6a. Sports apparel industry is

dominated by 5 major brands

6b. Product Description

Nikes is known for their footwear. It has

designed a whole line up of footwear for
almost every sport.
Different types of shoes: running, basketball,
soccer, cross training, football, tennis, golf
2.5c 6y for kids
5.5 11 inches for women
7 15 inches for men

7. PriceNike is 30% premium priced

nd
than
2
leading
Nike Trainers
= $80 competitor

Nike Shox = $73

Nike Air Max = $78
Nike Air Jordan = $150
Lunarglide = $85 - $100

Nike as a brand commands high

premiums and is often more expensive
than products of its competitors.

8a. Promo: Print Ads

8a. Promo: Athletes

8a. Promo: Catchy

Phrases/ Taglines

8b. Competitor promo

8b. Competitor Promo:

Print Ads (Olympics)

8b. Competitor Promo:

Athletes

8b. Competitor Promo:

Impossible is Nothing

8b. Competitor promo

Nike ads are powerful and positive
that stays in everyones memory.
Their ads exude greatness and are
loaded with look of triumph.

9. Nike products are

distributed worldwide

Malls
Retail stores
Partnered stores
Factory outlets
Worldwide
Online stores
Shipping
Cash and Credit transaction

10. Nike is a market leader

Nikes main strategy rests on a favorable brand

image. In order to maintain and sustain this image,
the company makes huge investments in advertising
and brand promotion.

It benefits from subcontracting their products to low

cost manufacturers (cheap labor = high selling price)

Consistent and timely shipment of goods

Has an excellent, premium priced and excellent

product distribution worldwide.

SUMMARY

30

5 Steps for Part 1

(PTM and Positioning)
1.

2.

3.
4.

5.

Nike PTM is active people who enjoy

high-quality sporting goods, especially
footwear.
Good association with no. 1 sports/
fashion brand
Adidas, Fila, Reebok, Puma
Other brands dont sell accessories such
as sunglasses, jewelries and apparel
The market size is $19.2 Billion.

5 Steps for Part 2

(Marketing Mix & Strategy)
6.

7.

8.

9.

10.

Sports apparel (Footwear)

Based on the basis of premium
segment as target customers
Uses famous athletes as brand
ambassadors, TV ads, targeted
advertising in print ads and sports
events (sponsorships)
Distributed worldwide (Nike stores
across the globe)
Market Leader Nike is a global brand
(enormous brand awareness)

10 STEP

Marketing Plan for NIKE

Tanya Marie Labrador
October 2010

33