MARKETING STRATEGY

Marketing Strategy: Nike

Executive Summary

This paper is an account of Nike's current situation in the personal fitness shoes. Nike's marketing efforts to retain its reputation as a leading company are also mentioned. Some issues discussed are: the current market situation of Nike, the aggressive personal fitness shoes competition, the aging Baby Boomers, greater worldwide marketing needs due to Nike's global expansion, varying segmentation and targeting requirements, and the need for innovative and creative marketing strategies

No doubt, Nike has been successful in retaining brand equity, but the competition is getting intensive day by day. There are many reasons for which Nike needs to come up with innovative and customer winning marketing campaigns. Firstly, Nike needs to retain its brand equity. This can be made possible through frequent effective communication strategies. Secondly, Nike can capitalize on its manufacturing cost benefits and invest the profits in expanding into the new developing markets. These developing markets are in the growth phase. A thorough marketing and research efforts will be required. Besides this, the company needs to continue with the same positioning strategy it already has, since this is what the customers relate themselves with. Moreover, the main issue that Nike is going through is competition. Reebok and Puma are also catering the global markets. In this situation, the price becomes sensitive for the customers. Retaining long-term customers today is a herculean task, but an effective marketing strategy can very easily achieve it.

Table of Contents

Introduction1

Situational Analysis1

Swot Analysis1

Strengths2

Weaknesses3

Opportunities4

Threats5

PESTLE Analysis5

Competitive Advantage of Nike Based on Porter's Generic Strategy6

Differentiation6

Cost leadership7

Segmentation7

Targeting7

A new Segment8

Baby Boomers8

Positioning8

Marketing Objectives8

Marketing Strategies and Programs9

Marketing Activities (4 Ps)10

Final Recommendations11

References13

Marketing Strategy: Nike

Introduction

Nike is the world's leading manufacturer, marketer and distributor of the athletic footwear and sports' wear accessories. It primarily operates in Asia Pacific, Middle East, Africa, Americas and Europe.

No doubt, the brand came across hard times in the forms of social allegations but, their marketing campaigns specially “just do it” helped it revive its brand image. The swoosh sign is recognizable in almost the entire world. This alone accounts for Nike's worldwide success beside its differentiation. (Hollister 2011, pp. 320).

Situational Analysis

The situational analysis comprises of the SWOT AND PESTLE analysis. Nike has remained competitive in the market due to reputation and cost cutting practices. This is the company's major strength. The situational analysis is more briefly discussed as follows:

Swot Analysis

Nike has strong brand equity. It is the only sport goods company to be featured in the 2007 list of Best Global Brands. It has been ranked 29th on the list whereas, Nike's competitor Adidas, a German based company, was ranked 69th on the same list. The advantage of Nike against the competitors is the strong brand equity; this equity has remained intact although the competition in the trainers industry became aggressive. Nike faces aggressive competition from Adidas and Puma (Frisch 2008, pp.30).

Strengths

Weaknesses

Innovation capability

Strong brand equity

Wide product portfolio

Vertical integration

Strong distribution and supply

Competitive marketing strategies

Litigations

Minimum revenue growth and operating margin

Price constraints in the third- world countries

Opportunities

Threats

Increase in online retail spending

Strategic alliances

Global untapped markets

Aggressive competition

Increasing labour wages in ...