Marketing Project Nike Inc

8/12/2019 Marketing Project Nike Inc

1/42

Marketing Project Nike Inc.

Submitted to

Ms. RabiaIjaz

Submitted by

Muhammad Umair Muneeb 2131075 Hafiz Ebad-ul-Haq 2131102 Muhammad Ali 2123296

Abdul Raheem 2132240

Date

22/4/2014

National College of Business Administration & Economics

40-E1, Gulberg III, Lahore 54660, Pakistan


2/42

ACKNOWLEDGEMENTS

I am heartily grateful to Allah Almighty, the most beneficial, the most merciful, all

knowing, who blessed us with the strength to complete this report. It would not be possible to

complete this study without the guidance, advice, cooperation, sympathetic attitude, valuable

suggestion, and help of our instructor. I am heartily thankful to my instructor, Ms. Rabia Ijaz

whose encouragement; guidance and support from the initial to final level enabled us to

develop an understanding on the subject. I would like to thank department of business

National College of Business Administration and Economics Lahore for providing me

opportunity to conduct the report. I would like to thank my fellow group members for theirhelp and support. Above all I would like to thank my parents and whole family for doing all

that have done so far for me, and allowing me to purse what I want. We would not forget to

appreciate the assistance of those who helped us in the completion of this report, most

importantly Mr. Google.


3/42

EXECUTIVE SUMMARY

The basic purpose of this project is to indicate some of the marketing strategies thatare being used by Nike Inc. These marketing strategies are playing an important role in

progress of Nike Inc. Due to which it is affecting the profit of the company. This project is

basically a detailed research on marketing strategies of the company, which includes

meeting with some company officials and detailed questionnaires on different issues and

problems. After the complete research on these issues we reached to some of the major.

At the end of the project, we concluded some of the suitable conclusion according to

the report. According to our research, we believe that Nike Inc. has already introduced

new technologies and products in the market that have never been around before. Further

they should Identify the products customers are wishing for and then realize them at a very

fast pace. Nike should now introduce new products in the market and also they should

increase their retailer accounts and shops in the market. Their apparels shares in the market

are very low; they should also use different technologies and strategies to increase their

market value in the market value.


4/42

Introduction

Profile:

Nike was founded in 1964 under the name of Blue Ribbon Sports by university of

Oregons track coach Bill Bowerman and runner Phil Knight. Today Nike has become the

worlds leading supplier of shoes. As of May 2011, 38,000 employees work under Nike in

46 different countries around the globe and in Nikes World Campus located in Oregon. Its

Headquarter is in Oregon. United States.


5/42

Contents of Report:

1) Marketing management orientation2) Customer relationship groups3) (Companys mission statement) Is it product or marketing oriented?4) Product/market expansion grid5) Market segmentation6) Target market7) Positioning8) Marketing mix (7 Ps)9) Companys marketing environment (Micro and Macro)


6/42

Marketing management orientation:

A company majorly focuses on meeting the desires and needs of their customers through

different strategies and their market mix. In past, market strategies were concentrated on

increasing the sales of the existing products, but now marketing orientation works in other

direction, they modify their products to meet the demands of their consumers. Some people

consider marketing orientation as some kind of campaign between a company and its

consumers.

There are five components of marketing management orientation.

1. Production concept2. Product concept3. Selling concept4. Marketing concept5. Societal concept

1. Production concept:Different companies in the world have different kinds of philosophies related to the

production concept. For example, a company may have its philosophy or its idea that if the

manufacturing in done on a big scale, then the production cost/unit would be less and then all

the products would be sold automatically in market. In the same way, some companies can

have some different view. They might have idea that if their productsquality is good or

remarkable, then there will be no difficulty for them in selling their products.

Manufacturing Process:

1. -cutting

2. -sewing

3. -heeling

4. -finishing

5. -treeing

6. -stock fitting

7. -lasting


7/42

8. After the manufacturing, the shoe is then sent to distribution, retailers andtrading companies where it is then sold to consumers.

2.

Product concept:

Most Firms believe that customers or people are attracted with features and standard quality

of the products. They try to make their product distinct from their market competitors

because Customers always want something new and unique in affordable prices. Companies

try to make their products fine enough so they get high preference in the market. But the

companys belief that if they have good quality of products then there will be more sales, but

it is always not true. There are some exceptional cases also.

Nike loves innovation. It always tries to do something new, something unique that there

will be no competitors for them in the market and to increase their sales. Since 1980, Nike

has entered into various production lines. In1980 Nike included sneakers to its production

line. Nike sells Soccer, Running, Golf, Sneakers to Basketball, Casual, Baseball, Football,

etc. Nike not only sells sneakers but also they sell clothing. Nike trademark Big Check named

SWOOSH that is placed on each and every single product they sell in the market. Nike

always use advanced technology in order to create make their products distinct from the

market.

Recently, Nike has contracted with Apple Company to develop sensors that would be able to

fit inside the sole of Nike shoes, that sensor could track all activities of an athlete. Sensor is

well-matched with many Nike shoes because Nike has started to cut out shoe soles portion in

order to make it perfectly fit. Further, Nike also has stepped into field of technology with

their new product name "Fuel Band that counts all the activities regards athletes: Running,

walking, turns etc. The Fuel Band devices measure moves and then turn them into Nike Fuel,

and Nike Fuel is calculated the same way for everyone, so everyone can compare and

compete with anyone. Nike has many of their sponsored athletes promoting the product by

sporting them around their wrists. Nike Fuel Band has grown to become a very popular

among many health conscious customers, due to its ability to see all every activity progress

on PC in Graphs and charts.


8/42

3. Selling concept:A product cannot be bought itself but it has to be sold. Companies use different marketing

strategies to attract their customers and increase awareness about their products and also to

increase their products sales. Companies use selling strategies like increasing their shops and

franchises, and supplying their products to big retailer in the world.

More than 20,000 retail accounts are owned by Nike Company in United States. It also

collaborates with frequent independent retailers and has agreements with over 110 other

countries all over the globe. Many retail outlets are working all around the world owned by

Nike situated in major cities. Nike uses their online site www.Nike.com to track valuable

information about customers in order to optimize customer relationship management. Many

customers may request certain color of sneakers to be released and with this blog, they are

able to satisfy their customers need.

4. Marketing concept:Companies do not sell what they can actually make, but they make those things what they can

sell. Keeping in the mind this idea, these companies direct their marketing activities and

efforts to achieve customers satisfaction.Companies direct their marketing activities to

achieve consumer satisfaction. They use their promotion strategies to get ahead in the market.

Promotions are dependent on the position of store. Nike has many athletes that serve Nike as

brand ambassadors Ronaldo and Roberto Carlos, LeBron James, and Lance Armstrong and

Tiger Woods. All these athletes have made the brand image of Nike very strong in the

market.

Nike has built up their customer relationship management in order to satisfy their consumers.Through the use of the online blogs, Nike is now able to utilize the Customer centric in order

to improve on their products and service. Many customers may request certain color of a

sneaker to be released and with this blog they are able to satisfy their need. Ordering a

product from Nike asks people to input some basic data such as name, location and contact

info and that info is used in order to track buying habits of the customer. There is an option

for the customer to receive offers through their email account.


9/42

Nike uses new area to promote their product. Promotions like advertising on the TV, Nike

has signed famous athlete different sports like Ronaldo, Ronaldinho, Michael Jordan, Rafael

Nodal, and Tiger Woods etc. Its all because of these policies that Niketoday is number 1

sneakersbrand and today Nike's share in soccer shoe market in Europe has reached 35 %.

5. Societal concept:This concept to refer to that what a company is doing for betterment of its society. For me,

two concepts are under the societal concept, first is the companys steps towards betterment

of people of society and secondly for the betterment of the environment. Nike is trying its

best to go positive towards both these concepts.

Nike is working a lot for the betterment of the society since many years. Nike has made great

effort through different programs to increase youth participation in physical activities, Nike

has served about more than 150,000 children through a program named NIKEGOsince its

launch in 2002. The purpose of this program is to increase physical activities in colleges,

among youth ages 8-15.

Some days ago, Michelle Obama announced a campaign to engage school kids in a program

to bring physical activities back to the classrooms and she's also getting a big support from

Nike Company. The shoe-maker Nike will spend $50 million on the "Let's Move Active

Schools" effort over the next five years. Several other organizations are also combining to

donate.


10/42

Customer relationship groups:

Companies can classify consumers into 4 groups: strangers, butterflies, barnacles and true

friends.

Strangers:

In this relationship, customers are neither loyal to the company nor they give large profit to

them.

Butterflies:

In this relationship, customers are very profitable but not loyal towards company.

Barnacles:

In this relationship, customers are loyal towards the company but they give them a little

profit.

True friends:In this relationship, customers are very loyal towards the company and also give them big or

large profit. Because there is high or strong fit between both of them.

Nikes relationship with its customers is like true friends. Nike offers free service online via

email service and a live chat with Nikes experts to manage the relationships with dis-

satisfied customers. Nike a more tangible brand, in which it is important in order to have

customers more emotionally attached to the company.. This marketing approach mainly aims

at creating an impression of personal relationship between the consumer and the organization.

For a globally operating organization such as Nike, friendly relationships are an efficient way

to manage customer.


11/42


12/42

Market/Product Expansion Grid:

Nike uses geographical area to promote their product. Advertising on the TV- write the

future, just do it kind of slogan, internet- YouTube and other social sites, which helps themto break the geographical barriers and increase the ability to reach people on the other part of

the world. Sponsoring in different social activities where people or players wear Nike logo

contains dresses; sales promotions like discounts, coupons and to keep good relation with the

public they release their own press and magazine and take part on the events. Nike do

campaign about the ability of men, women with new fashion, using famous athletes and

sports teams for advertising which are such outstanding steps they have taken to keep good

communication between them and their customers. Nike uses different tactics, they use in

advertising on TV which diverts consumer to visit internet to Nike website to see the finial

ends.

Following figures shows expansion record of Nike:

Nike introduced different products during their way on success.


13/42

Expanding Revenue Record of Nike:


14/42

Market Segmentation:

Geographic Segmentation:

Geographic segmentation is actually dividing the market within different diverse

geographical parts, for example cities, countries and regions.

Nike footwear is really famous in the part of EU and Asia Pacific. The main objective is to

sell this product in those continents where some particular sports is very popular. For

example, football is popular in Europe. It is not much popular in south Asia so its footwear is

mostly advertised more generally in Europe.

Demographic segmentation:

Demographic segmentation is isolating the market on the basis of age, gender, race,

occupation, income, and also on the level of education.

Relating to age and income, they target peoples in variety age from young person to middle-

aged people and the income series is basically from middle to upper class. By depends on

gender Nike has broadly expanded itself nationally. Nikes target market is youth between 18

and 35 years. With the development of women and children sports, new manufacturing lineshave been developed. The products that company manufactures are modified regularly. Nike

promotes its products like shoes and clothing in a variety of ways. Teams of different sports

in the world are mainly targeted by Nike.

Psychographic Segmentation:

Psychographic segmentation is about social class, standards, characteristics, beliefs, interests

and values of customers.Nike uses athlete where it influences consumer to be interested on their shoes and footwear.

The purpose is to trade their products to the people in which some particular sports or athletic

activities are most popular. Nike always supports a confident attitude, and always targets

those kinds of people.


15/42


16/42

Positioning:

Nike one of the global master in sporting equipments industry, has maintained a strong

position. Nikes imagesand its trademark make it the worlds one of most reputablebrand.Nikes products and marketing techniques all contribute to take the shoe company to a huge

success. Nikes Products arebasically designed for sporting purposes. Its product is

considered to be highly effective and comfortable to the athletes. It is recognized for the

quality of the shoes and has gained the positive reputation all over the world. Every company

tries to develop its brand reputation; it helps the company bringing in more revenue. Nike,

which by sponsoring high-profile athletes and teams, has become one of the most recognized

global symbols.

Nike also uses different strategies to distinct their products from markets and make it almost

perfect in order to increase their brand value. It's all because of successful strategies that

today Nike is number 1 shoe brand in U.S.


17/42

Marketing Mix:

Nikes marketing mix is one of the strongest in the world. Depending mainly on its strategies,

it has established its hold against major competitor.

1. Product:

Nike offers a widespread range of shoe and all are currently top-selling products. Firstly,

Nike started selling footwear. Most famous product categories of Nike today are: Running,

Baseball, Football, Bicycling, Basketball, Cross-training, Outdoor activities, Tennis, Golf,

Soccer Volley ball footwear. Today Nike is not only dealing in footwear but they are also

selling cloths, apparels, electronic equipment related to sports etc.

2. Price:

Nikesprices are designed to be competitive to its competitors. Nike uses different price

strategies like Price Leadership strategy and value based pricing. A company fixes its prices

based on the value, the consumer gives to the product or companies find the cost of the item

and then research whether a customer is willing to spend on it or not. With this valuable

information, they manage to increase their sales and profits. These steps can control prices

and influence product demand.

3. Place:

Nike supplies its shoes products to many stores like Nike stores across the world/globe. Nike

supplies shoes to more than 20,000 retail accounts in the United States. In the global market,

Nike sells products through independent distributors. The company has its productionfacilities in Asia. Nike has contract with about more than 700 stores and has their offices

located in about 45 countries.


18/42

4. Promotion:

Promotion is one of Nikes strong points. The print advertisements of Nike are generally very

simple but it always sends a powerful message to their customers. Nike almost always uses a

famous player to promote their products. It targets the markets by advertising in the

newspaper and T.V. Nike has a number of players that serve Nike as brand ambassadors such

as Ronaldo, and Roberto Carlos, LeBron James and Jermaine ONeal, and Tiger Woods for

Golf.

Nike sponsors many famous events such as The Golden West Invitational and Hoop It Up.

Nikes brand images and the trademarkmake it one of the most reputable brands in the globe.

Nikes productsand its marketing techniques contribute to take the shoe kingdom to a huge

success.

People:

Nike considers its employees as the most valuable assets of their company. Company always

introduces different programs to satisfy their customers and conducts different surveys to

know their satisfaction level. So they can improve their system. They offer different benefit

schemes for their employees.

Nike always focuses on the root of the problems and manufacturing relationships to find new

ways to define and share responsibility. They're looking end-to-end, from the first phase of

their product creation process to the impacts of decisions on the lives of workers in the

factories that bring their product to life.

Physical Environment:

Talking about Physical work environment of Nike, Nike believes in team work, innovation,

and maintaining the quality of the working environment of the employees. Nike provides

very innovative and friendly working environment to the employees. 1,005,134employees

serve Nike globally. Nike also focuses on the best Human resources Management. The

purpose of Human resource management is to improve the productive contribution of people

to the organization. Human resource management in Nike, inc. focuses on the betterment of

the quality of life the employees.


19/42

Process:

There are three processes in manufacturing a shoe.

Step 1: The Designing Process

-establishing target prices, target audience and products features.

- produce tech package and send to subcontractors in their factories in Asia and Europe.

Step 2: Supplies

A. Raw Materials:

1. -fabric2. -metallic3. -rubber4. -foams5. -Plastic

B. Textiles and Leathers

Step 3: Manufacturing

1. -cutting2. -sewing3. -heeling4.

-finishing

5. -treeing6. -stock fitting7. -lasting8. After the manufacturing, the shoe is then sent to distribution, retailers and trading

companies where it is then sold to consumers.


20/42

Companys marketing environment:

Micro Environment:

The Company:

Top Management:

BOARD OF DIRECTORS:

Companies headquarter is in Oregon, United States.

Mark Parker, President & CEO, NIKE, Inc. Maria Eitel, President & CEO, Nike Foundation Charlie Denson, Advisor to the CEO

Finance:

Total asset of Nike by November 2013 was $25,313 million.

And its gross profit was $11,034 million.

Research and development:

The Nike Sport Research Lab is aresearch and developmentinstitute located in theOregon.

It was opened in 1980, the lab is owned by footwear makerNike.

Engineers and Scientists work with best sportsman to collect data and use them to

manufacture for the betterment of their customers. In research center, they use different

equipment like 3D motion cameras and heat chambers. These a chambers create artificial heat

in the room and athletes are tested under different heat levels, So the information they get in
http://en.wikipedia.org/wiki/Research_and_developmenthttp://en.wikipedia.org/wiki/Institutehttp://en.wikipedia.org/wiki/Oregonhttp://en.wikipedia.org/wiki/Nike,_Inc.http://en.wikipedia.org/wiki/Nike,_Inc.http://en.wikipedia.org/wiki/Oregonhttp://en.wikipedia.org/wiki/Institutehttp://en.wikipedia.org/wiki/Research_and_development


21/42

research Centre is used for decision making about the products by Nike footwear and apparel

designers.

Suppliers:

Nike is manufacturing its products from 765 factories over 43 countries. Mainly Nike is

manufacturing its footwear from Asian countries. Its biggest supplier is Sri-lanka.

Intermediaries:

The Company sells much footwear products under the NIKE brand name. Nike also sells

apparels and electronic products to other manufacturers by its subordinate. The Companys

wholly owned subordinate are Converse Inc., Hurley International LLC, Umbro International

Limited.

Recently, Nike has decided to work without their intermediaries because Nike now wants to

cooperate with the public by itself. Many competitors in the market have own social networks

such as Reebok, Puma. Nike use Facebook and twitter to communicate with their

customers. Nike thinks that online is more effective rather than advertising in the press and

on television. By doing this, Nike would have long term impact on the customer and Nike

would gain more customer attraction and more profits.

Competition:

Nikesfootwear and equipment industry is very competitive in the United States. Nike

compete with a significant number shoe companies, athletic and sports equipment companies

including Adidas, Puma, and others. The strong competition and the rapid changes in

technology and consumer preferences in the markets for footwear constitute significant risk

factors in our operations. Nike contract with influential athletes, colleges, teams and sports

leagues to authorize their brands Nike believes that they are competitive in all of these

markets and in all areas.


22/42

Publics:

Wherever a company operates, the company is guided by some Code of Conduct, and binds

its business partners to the code's principles.

1. Local government regulations regarding minimum wages; overtime; child labor laws;provisions for pregnancy, provisions for vacation and holidays etc.

2. Different rules regarding employeeshealth and safety.

3. Laws related to health insurance and life insurance

4. Regulations for intermediaries, that suppliers and contractors can use any form offorced labor prison etc.

5. Rules for clean water and environment. Not to release harmful gases.

Macro Environment:

POLITICAL:

Its governmentsresponsibility direct organizations rules, regulations and activities. Nike is abig contributor for the betterment of people in USA. Company started many programs like

Nike Go, Due to which Nike has greatsupport by the US government like low interest

rates, the international effectiveness of the tax system and stable currency conditions,. These

all helped Nike a lot in the formation of the company.


23/42

Demographic:

Demographic means studying people around the market on the basis of age, gender, race,

occupation, income, and also on the level of education. Relating to age and income, Nike

targets people from middle to upper class. By depends on gender Nike has broadly expandeditself nationally. Nike now also manufactures shoes for female and children.

Economic Environment:

For any organization, the biggest threat is the economic recession. The recession always

affects any company badly. As the current situation of US economy is known that itsfacing

a shutdown, so in this situation, the purchasing power of customers is also affected. Not only

have US, Asias economy is not going well. It too had its effects on the Nike, as many of its

products units are in the Asia.

Technological Environment:

Nike is a master shoe company and they favor all kind of technological advancement in their

production unit and in all other processes. They design their products through computer-aided

designing, computer-aided manufacturing systems. Not only for betterment of companys

internal processes, but Nike also have improved their systems for the comfort of their

customers. On the Nike website, customers can design their own shoe and purchase it in just

a short while. Company allows customers to choose the colors they want. These kinds of

easy and simple ways of serving are very favorable among consumers.

Main advantages of technology improvement:

1. New or improved technology could result in new product lines or divisions.

2. Innovations in sporting equipment would also result in new product lines.


24/42

Cultural Environment:

Three main components of Nikes cultures are innovation, expansion and advancement. Nike

loves innovation and is always engaged in launching innovative products in the market. Since

day 1, Nike introduced innovative and new products and new designs of shoes with more

comfort. All these things made Nikes product distinct from the market and today Nike is the

master of footwear in the world. Since 1961, Nike is expanding its products variety. It started

with the footwear but today they are dealing in footwear, apparels, bags, track suits and many

other things. Nike makes its system up to date with the modern world. Company always uses

modern equipment and systems. Not for the production purpose but also for maintain good

relationship with the customers it always maintain its communication system.

Natural Environment:

Nike has already proved itself as environment protector. Nike is certified company from

global environment. In different production process at factory, CO2 used to evolve in air in

large quantity which could cause serious and harmful diseases as it affects the Green ozone

layer in air. Nike tried its best to make conditions better and used advanced technology and in

a report in 2009, it proved that CO2 emission decreased by 16% as of 2007.

Firstly, Nike used to manufacture its shoes from natural resources like plastic and leather but

then as a global responsible country, Nike stopped using natural things in production, Nike

now use recycled material in production. That decrease the production price of units and its

also good for environment.


25/42

Marketing Project(After Mid)

Market Segmentation Selecting Target Market Segments Differentiation and Positioning Select an Overall Positioning Strategy Level of Product and Services Product and service classification Product Line Decisions

Product Mix/ Product Portfolio Decisions Product life cycle stage The promotion mix Advertising objective Execution style of ads


26/42

Market Segmentation:

Geographic Segmentation:

Geographic segmentation is actually dividing the market within different diverse

geographical parts, for example cities, countries and regions.

Nike footwear is really famous in the part of EU and Asia Pacific. The main objective is to

sell this product in those continents where some particular sports is very popular. For

example, football is popular in Europe. It is not much popular in south Asia so its footwear is

mostly advertised more generally in Europe. Nike also sponsors some of the leagues and

clubs, like entire National Football League is sponsored by Nike because Nike believes that

this kind of sponsorship help them to generate to attract more people towards their bran and

shoes.

Demographic segmentation:

Demographic segmentation is isolating the market on the basis of age, gender, race,

occupation, income, and also on the level of education.

Relating to age and income, they target peoples in variety age from young person to middle-

aged people and the income series is basically from middle to upper class. By depends on

gender Nike has broadly expanded itself nationally. Nikes target market is youth between 18

and 35 years. With the development of women and children sports, new manufacturing lines

have been developed. The products that company manufactures are modified regularly. Nike

promotes its products like shoes and clothing in a variety of ways. Teams of different sports

in the world are mainly targeted by Nike.Nike uses competitive pricing system due to which

its prices are higher than other brands thats why Nike targets the people from higher-middle

class.


27/42

Psychographic Segmentation:

Psychographic segmentation is about social class, standards, characteristics, beliefs, interests

and values of customers. Psychographics are lifestyle and personality descriptor.

Nike uses athlete where it influences consumer to be interested on their shoes and footwear.

The purpose is to trade their products to the people in which some particular sports or athletic

activities are most popular. Nike manufactures shoes for different sports like football, soccer,

basketball and Running. Nike always supports a confident attitude, and always targets those

kinds of people. There are also some consumers that wear Nike for just want to build

confident or make other feel they wearing a branded shoes but not for sport purpose. They

target peoples basically from middle to upper class. Teams of different sports in the world are

mainly targeted by Nike.


28/42

Selecting Target Market Segments:

Nikes target market is actually youth, agedbetween 15 and 45. People in this age people use

to or love to do jogging, exercise and play different physical games. They mainly target

athletes, players, sportsman and different sports teams. Nike uses competitive pricing system

thats why they target peoples basically from middle to upper class. And target sportsman and

athletes. Due to which Nikes most of the customers are athletes or sportsman.Nike uses

athlete where it influences consumer to be interested on their shoes and footwear. People use

different shoes for different purposes, apparels, track suits and many other things and product

to remain fit. Athletes or young people mostly prefer to buy Nike shoes because of its

comfort level and quality. Nike targets the youth and students, who have embraced the

modern culture. . Nikes target market is youth between 18 and 35 years. With the

development of women and children sports, new manufacturing lines have been developed.

Nikes Competitive market is been expanding and dominating in the international market.

Nike promotes its products like shoes and clothing in a variety of ways. Teams of different

sports in the world are mainly targeted by Nike.


29/42

Differentiation & Positioning:

Nike one of the global master in sporting equipments industry, has maintained a strong

position. Nikes images and its trademark make it the worlds one of most reputable brand.

Nikes products and marketing techniques all contribute to take the shoe company to a huge

success. Nikes Products are basically designed for sporting purposes. Its product is

considered to be highly effective and comfortable to the athletes. It is recognized for the

quality of the shoes and has gained the positive reputation all over the world. Every company

tries to develop its brand reputation; it helps the company bringing in more revenue. Nike,

which by sponsoring high-profile athletes and teams, has become one of the most recognized

global symbols. Nike also uses different strategies to distinct their products from markets and

make it almost perfect in order to increase their brand value. It's all because of successful

strategies that today Nike is number 1 shoe brand in U.S.

The athletic sports market is one that is dynamic and highly competitive. All innovative and

distinct market strategies make Nike a most preferable and differentiated brand in the market.

Nike, being the world leader in this market, makes different changes gradually in theirproducts styles and features that separate it from its competitors. Nike pays great attention to

quality, features and the timing of introduction of their products in the market. Nike always

plan for time of launching their new products in the market. New products like the recently

released Fly knit shoes was launched as soon as summer starts, so the more people will be

interested in them according to the season and according to peoples psyche. Nikes great

marketing techniques make it different from others. Because Nike use world's most well-

known athletes serving as spokes models, witty ads and commercials, and the "Just Do It"

slogan that is identical with the brand. Nike most certainly has a persistent competitive

advantage with these strategies in place and will continue to be an innovative market leader.


30/42


31/42

Level of Product and Services:

There are three levels of any product. Which are

1. Core product2. Actual product3. Augmented product

Each level of a product increases the value of the product. Shoes are basically designed to

guide foot and ankle movement. It saves suffering from sore feet or painful ankles. At the

time of designing, experts make sure and keep in mind the basic need of the consumer.

People not only purchase a pair of shoe but they also buy some expectations with that. They

expect fine quality, style, feature, durability and elegant design. No one wants to buy

expensive shoe every two months coz of low quality. People invest much money on famous

brands so they can get benefits in return. Nike experts keep in mind all these needs of the

customers. Nike shoes provide a number of benefits and advantages to its consumers. Nike

shoes are very comfortable to use and people can wear it the whole day without any problem

and pain. Also, Nike shoes maintain unique features and style that attracts the customers

attention. Before launching any shoe brand, company makes sure about its weight, long-

lastingness and comfort ability. Light weight shoes help its consumers meaning that it

reduces the power that runner have to provide for better performance. Durability is very

important for consumers because mostly consumers dont want to buy a new pair after some

time and Nike shoes are expensive also. So Nike makes shoes durable enough that it would

have a long lasting life.

Nike has opened many factory stores in different cities of different countries, where people

can buy products at lower prices. Nike provides after sales services and life time warranty.

Also it gives quick claim service to its customers. In some countries Nike offers online

service where people can order their own modified shoes with different color, different logos

and get home deliveries of Nike products.


32/42

Products and service classification:

Products and services are classified into two types based on their use and type of customers.

1. Consumer products2. Industrial products

Consumer products are those products which are bought by the final consumers for

consumption. And industrial product is those products which are further purchased for

processing. Thus, the main difference between industrial product and consumer product is

based on the purpose for which product is bought. Consumer products are bought by final

consumers for consumption. These products are further classified into convenience products,

shopping products, specialty products and unsought products.

Nike shoes fall in the category of shopping products. There is a tough competition for Nike

shoes to fall between shopping product and specialty products. But I have thought a lot, and

due to some points I would recommend it to be placed in shopping products.

1. Nike shoes faces competition in market by PUMA, ADIDAS, REEBOK etc. peoplealways see and think about the quality , price and style of other companys shoes

while selecting Nike. But there is a vast comparison between shoes of Nike and other

companies. Nike shoes are used by top class athletes and players which is a plus point

for Nike that attracts peoples attention.

2. Nike is a famous and renowned brand in the world and is used by all the top classathletes in the world. So, to maintain its standard, Nike uses competitive pricing

system. Nike shoes prices are really high in the market that is why it is said that Nike

target Elite class people.

3. Nike shoes are sold out by only Nike outlets located in different cities. They do notsupply there shoes stock to other national or international retailers. It means that Nike

selectively distributes shoes with limited outlets.

4. Advertising is very strong point of Nike.


33/42

All the points above make me believe that Nike shoes fall in the category of Shopping

product rather than some other.


34/42

Product Line Decisions:

A group of products that are closely related because they function in a similar manner, are

sold to the same customer groups, are marketed through the same types of outlets, or fall

within given price range.

The company offers 3 to 4 products in its product lines. Following are the types of products

currently available in the market:

Shoes Apparels Accessories


35/42

Product Mix Decisions:

The set of all product lines and items that a particular seller offers for sale is known as

Product Mix Decision.Nike has proven itself a popular brand in the world and has created a

reputable place by selling products such as apparels, footwear and various types of sports

equipment. It manufactures basketball, soccer, running shoes, athletics accessories, baseball

and eye wears. Company also manufactures shoes for outdoor activities like recreational uses.

There are more than three product lines in Nike Company but we will be discussing only

three of them here. These are Nike shoes, Nike apparels and Nike accessories and equipment.

If we talk about the Nike shoes, there is further classification of Nike shoes into Mens and

Womens shoes. These are known as product line width. Men shoes are classified into

different sports shoes like soccer, baseball, basketball and cricket etc. Women shoes are also

classified into many sports shoes. Not only for some special kind of sport but Nike also

manufactures shoes for casual use. These are known as product line depth a chart is given

below that can illustrate the point:

It consists of four things which are given below:

I. WidthII. Length

III. DepthIV. Consistency

Width:

Product mix width refers to the number of different product lines the company carries. Nike

has Product line width of 3 because of 3 product categories.


36/42

Length:

Product mix length refers to the total number of items the company carries within its product

line.Nikes product line length is more than 4.

Depth:

Product mix depth refers to the number of versions offered of each product in the line. Nike

offers versions of their products on the basis of style and there is no other option to provide

like this. Following analysis shows the depth in the product line of the company.

Consistency:

The consistency of product mix refers to how closely relate the various product lines are in

end use, production requirements, distribution channels or some other way.

Nike deals in shoes and offers all the products related to this. So there is high rate of

consistency in the product line as the company offers shoes for men, women and children.


37/42

Nike Product Mix:


38/42

Product life cycle stage:

When Nike Inc. was established, its R&D employees/experts were concentrated about the

point that they dont work for a fashion industry/company. Nike is about athletics, sports and

games. And to produce shoes that will create high-quality athleticsperformances. They

didnt get diverted and simply focused on their common and end goal. Once this focus was

clearly defined between them, there was no hurdle for the company to climbing to the top of

its game. Nike is developing day by day and its rate of profit and revenue is increasing. In its

history, Nike Inc. never faced a downfall in revenue or in its sales. Nike is in its maturity

level. And its maturity level is going up day by day.


39/42

The promotion mix:

Promotion is one of Nikes strong points. It has helped Nike in achieving its place where

Nike is standing today. The print advertisements of Nike are generally very simple but it

always sends a powerful message to their customers. Nike sponsors many famous events such

as The Golden West Invitational and also Hoop It Up.Nikes brand image and the trademark

make it one of the most reputable brands in the globe. Nikes products and its marketing

techniques contribute to take the shoe kingdom to a huge success. Nike remains one of the

only companies to have their foot print in every sports league around the world. One does not

need to be an athlete to wear their products. Nike uses athletes and sportsman in their ads and

promotionbecause Nike combines the life style, and slice of life implementation flairs

to create a truly memorable ad. It represents the lifestyle approach because it shows

multiple Nike products and how they fit in with various sport lifestyles, whether it is football,

badminton, martial arts, cycling, or basketball its also representative of the mood style

because it attempts to raise a variety of emotions like tragedy and then ultimately

achievement through determination.


40/42

Advertising objective:

Nike almost always uses a famous player to promote their products. Nike believes that people

love to follow some sportsperson or actor to be like him and to look like him. People copy

their fashion so Nike sponsors different sports teams and athletes so people will get inspired

and attracted towards Nikes products. Nikes main target markets are athletes and sports

lovers whom they target through ads and promotions. A reason behind Nike targeting sports

fans, is because many of the products they sell are stylish products; from shoes, to clothing,

and team jerseys. One does not need to be an athlete to wear their products. Nike uses

athletes and sportsman in their ads and promotion because Nike combines the life style,

and slice of life implementation flairs to create a truly memorable ad. It represents the

lifestyle approach because it shows multiple Nike products and how they fit in with various

sport lifestyles, whether it is football, badminton, martial arts, cycling, or basketball itsalso

representative of the mood style because it attempts to raise a variety of emotions like

tragedy and then ultimately achievement through determination.Nike also uses the slice of

life approach where they show regular people using their goods. These examples of

typical people can be seen in themartial artists, the acrobat, or the bull rider. Nike scatters

them with famous athletes to show that we are all part of the same movement.


41/42

Execution style of ads:

In 1978, a tennis star was the first professional athlete to sign a project deal with Nike, Inc.

1982 was the year Nike aired its first ever T.V. ad during the New York marathon. Since

then, Nike has won two Emmys in best commercial; these two commercials were "The

Morning After" and "Move".` Today Nike has a number of players that serve Nike as brand

ambassadors such as Ronaldo, and Roberto Carlos, LeBron James and Jermaine ONeal, and

Tiger Woods for Golf. Nike would not have been have become the strong competitor they

are today in the sporting goods industry. It targets the markets by advertising in the

newspaper and T.V. The tone of the ad of Nike is very positive. It challenges people to thrust

themselves. Just do it. To get across their message, they procedure a attractive melody that

communicates these values: Its not how you start, its how you finish. Its not where youre

from; its where youre at. Everybody gets knocked down, how quick are you going to get

up?.


42/42

Positioning Map:

Positioning map shows consumers perception of their brand versus competing products in the

market. The position of each product on the map shows the brands perceived positioning on two

dimension like on Price and orientation (Fashion vs. technology or performance). Size of circle

indicates the market share of the product in the market but in the given figure we cant show the

products in circle.

Documents

Marketing Project Nike Inc