In this article, you will learn about Nike Marketing Analysis. It will include Introduction, Vision Statement, Mission Statement, SWOT Analysis, Segmentation, Target Market, Failures, Marketing Mix (4P’s) Strategies, Conclusion of Nike
Nike is a multinational American company. It creates, markets, and sells footwear, apparel, equipment, and accessories worldwide. Nike is a leading manufacturer of sports equipment and the world’s top seller of athletic shoes and clothing.
On May 30, 1978, Bill Bowerman and Phil Knight started Nike company. Over 76,000 people work for Nike worldwide. It sells its clothing under the Nike name as well as the brands of its Jordan Brand and Converse partners. LeBron James, Serena Williams, Rafael Nadal, and Alex Morgan are just a few of the world’s top sportsmen and sports franchises that are sponsored by the corporation.
“To provide all athletes with inspiration and creativity worldwide.”
“To remain to be the most genuine, connected, and unique brand.”
- Strong Brand Name
- Low Production Costs
- Outstanding Marketing Skills
- High Market Share
- Support from the black community
- In-house experts
- Focus on sustainability
- Iconic relationships (Collaboration with Michael Jordan)
- Large brand portfolio ( Like Nike Tiempo, Nike Blazers, Nike Shox)
- Multiple brands (Including Hurley, Umbro, Converse, Cole Haan)
- Focus on Footwear
- Rely on the US market
- Poor labor conditions in some countries
- Stronger Hold of Retailers
- Unpaid Debts
- Conflicting Approaches
- Lawsuits (Including Sexual abuse)
- Expanding market
- Diversity of products
- Innovation technological products
- Built a start-up using artificial intelligence
- Effective Integration
- Increasing Competition
- Foreign Exchange Currency Risks
- Tax disputes
- Kangaroo Population at risk due to the reason that brand creates leather football shoes out of kangaroo skin.
- Adidas Primeknit Shoes are facing a patent dispute
- Counterfeiting Products
✔ Strong Brand Name
✔ Low Production Costs
✔ Outstanding Marketing Skills
✔ High Market Share
✔ Support from the black community
✔ In-house experts
✔ Focus on sustainability
✔ Iconic relationships
✔ Large brand portfolio
✔ Multiple brands
❌ Focus on Footwear
❌ Rely on the US market
❌ Poor labor conditions in some countries
❌ Stronger Hold of Retailers
❌ Unpaid Debts
❌ Conflicting Approaches
✔ Expanding market
✔ Diversity of products
✔ Built a start-up using AI
✔ Effective Integration
✔ Innovation technological products
❌ Increasing Competition
❌ Foreign Exchange Currency Risks
❌ Tax disputes
❌ Adidas Primeknit Shoes are facing a patent dispute
❌ Kangaroo Population at risk due to the reason that brand creates leather football shoes out of kangaroo skin.
Nike customers range widely in age, generally from 15 to 45 years old. Nike reaches out to middle-aged customers with disposable cash and builds relationships with younger audiences to ensure future expansion and attract loyal brand followers.
Although the company caters to both male and female customers, it continues to spend heavily in its women’s brand, which focuses on leggings, sports bras, and “athleisure.”
Nike, which is known as the preferred footwear and apparel brand for teens worldwide, also heavily targets the youth market.
The biggest markets for Nike are North America, Western Europe, and China. In these regions, Nike’s marketing strategies are mostly concentrated in cities with dense populations of potential customers.
Given that sports vary by regions and towns, Nike runs numerous promotional efforts in the US, Europe, Australia, Asia, and Africa. Baseball and football are the two sports that dominate US commercials, while soccer is the subject of most commercials in Europe.
The premium brand image and high price points of Nike products reflect the fact that the company’s target market is typically from the higher-income socioeconomic category. The typical Nike consumers are enthusiastic sports fan who values living an active, healthy lifestyle.
In addition to their passion for sports, Nike’s audience are also fashion-conscious, tech-savvy, and eager to keep up with the latest developments in footwear and fitness apparel.
Nike’s psychographic segments include “weekend runners,” who prefer staying active on the weekends and may even be preparing for a half marathon, and “style shoppers,” 20-something women who want to wear the newest sports fashion trends before, during, and after workouts.
Nike customer’s segment includes “Aspirers” and “succeeders,” or individuals who are driven to be fit and stay in style.
The Nike target market is global, and the Nike age range is wide, from early adolescence to middle age. The company has a significant emphasis on marketing to athletes and sports lovers, but in recent years, Nike has broadened its strategy to target a number of particular market segments, including women, young athletes, and runners.
Men’s sales continued to lead the market in 2021, making up more than half of the company’s global wholesale revenue.
After a pair of Nike sports shoes broke open in the middle of a major event, the company’s stock price dropped by $1.1 billion. The footwear was worn by Zion Williamson, who had to leave the NCAA game due to a knee injury.
Marketing Mix (4 P’s)
Nike uses two pricing strategies: premium-based and value-based pricing.
Premium-based pricing means charging more for goods of higher quality than the value of Nike’s competitor companies. Sales and income will increase as the company gradually increases the cost of its premium goods.
Value-based pricing is when a business sets the prices it charges for its goods on the going rate in the market. They evaluate the general response of the customer base to determine whether they are willing to pay the price before they apply the pricing on the products. With this kind of price policy, Nike may gradually increase its profit.
Nike also offers deals and discounts, such as the “Easter sales”, on its physical stores and website. T his tactic will aid in attracting new clients and keeping existing ones. Nike has made significant technological expenditures, which are visible in the high prices it charges for its goods. However, the company continues to take the condition of the market into account when setting the price points and ranges for its products.
Nike offers a wide range of goods, including footwear, apparel and equipment. From its marketing mix, its items are often centered on high quality and a variety of goods for any sports lover. It dominates the sportswear market and derives the majority of its income from the sale of athletic footwear.
Aside from athletic footwear, Nike also makes different sneaker styles for kids, adults, and women, as well as colourful, casual sneakers that are typically attractive to younger people.
Footwear– It includes running shoes, tennis shoes, and cricket shoes
Apparel- It includes Hoodies & Sweatshirts, Trousers & Tights, Jumpsuits & Rompers, Tops & T-shirts
Accessories & Equipment– It includes balls, belts, water bottles, gym bags, yoga mats, sunglasses, watches, swim googles & caps.
Nike has a large network of retail locations across the world where it sells its sports shoes, clothing, and equipment. Nike’s distribution strategy is classified into following: Retail stores, online store, retail outlets
Retail Stores: Retail stores are the most significant locations where Nike products are sold. These retailers range from large corporations like Walmart to small area and local businesses.
Online Store: Through the company’s online store, customers may purchase sports shoes, apparel, and equipment.
Retail Outlets: These outlets, which are owned by the corporation, provide access to business and market intelligence that supports corporate strategic management in relation to Nike’s marketing strategies and techniques for existing and upcoming items.
Nike’s promotion is divided into the following strategies: Advertising, sales promotion, personal selling, public relations, direct marketing
Advertisement- Nike depends largely on advertisements, particularly those with prominent celebrity endorsers like top athletes and sports teams
Sales Promotion- Nike occasionally offers discounts and special offers to increase sales and attract more customers
Public Relation- Nike sponsors and donates money to groups like community-based networks to advertise its athletic shoes, clothing, and equipment. In order to successfully sell its goods and services to the global athletic goods industry, it focuses on its relationships with well-known endorsers.
Direct Marketing- The company’s direct marketing strategies involve promoting its goods through direct interactions with universities, regional sports teams, and other groups.
Nike’s marketing plan focuses on constant product and service improvement. This is accomplished through analyzing product movements, evaluating items from other companies, and innovating. Through the use of effective marketing strategies in the four areas, they have gained a competitive edge, which has improved their performance.
Nike currently hold the biggest market share in the category of sports shoes, at 33%, and adidas is a close second with 22% of the market. Their success is continuing to expand. In the next ten years, they want to control 50% of the market.