The Role of Online Marketing in Retail Sector in UK- Case Study of Nike

By

[Name of the Supervisor]

[Date of Submission]

TABLE OF CONTENTS

CHAPTER 01: INTRODUCTION1

1.1Background of the study1

1.2Profile of the Company1

1.3Aim of the Study2

1.4Sales of Nike3

1.5Objective of the Study5

1.6Justification of Study5

1.7Validity and Reliability6

1.8Ethical Consideration7

1.9Study limitation8

1.10Chapter Outline8

CHAPTER 02: LITERATURE REVIEW10

2.1Introduction10

2.2Role of Online marketing11

2.3Growth of Online marketing13

2.4Internet Users in the World14

2.5United Kingdom Internet Users14

2.6Studies that Focus on Consumer Attitudes toward Online Shopping15

2.7Significant Concepts Affecting Online marketing20

2.8Brand Structure20

2.9Perception development in Consumers21

2.10Improvements in Online marketing23

2.11Some Major Antecedents to Online Consumer Behavior23

2.11.1Trust and Perceived Risk for Online Consumer Behavior25

2.11.2Flow for Online Consumer Behavior28

2.11.3Economic Value for Online Consumer Behavior31

2.12Conclusion and Implications33

CHAPTER 03: METHODOLOGY35

3.1Introduction35

3.2Types of Research35

3.3Quantitative Research36

3.4Qualitative Research38

3.5Primary Research39

3.5.1Surveys40

3.5.2Interviews40

3.5.3Advantages:41

3.5.1Disadvantages:41

3.6Secondary Research42

3.5.2Advantages43

3.5.3Disadvantages43

3.7Data collection44

3.8Sampling Methods47

CHAPTER 04: DATA ANALYSIS AND FINDINGS48

4.1Analysis of Primary Data48

4.2Questionnaire48

4.3Secondary Data Analysis57

4.4Affiliate marketing57

4.5Search engine marketing58

4.6Email marketing58

4.7Banner Advertisement59

4.8Factors Identified by Nike to Increase Online Sale60

4.9Online marketing in Retail Sector: Nike UK61

4.10Strategy design61

4.11Marketing Strategy61

4.12Financial Strategy61

4.13Innovation Strategy62

4.14Strategy-Imitation62

4.15Nike's Broad Differentiation Strategy63

4.16Community Strategies64

4.17Online marketing to vs. traditional marketing of Nike66

1.17.1The benefits of Online marketing over Traditional Marketing for Nike67

4.18Conclusion67

1.18.1Sustainable Retailing67

1.18.2Exploiting all channels68

CHAPTER 05: INTEGRATIVE ANALYSIS AND DISCUSSION69

5.1Cross Reference with Literature Review69

CHAPTER 06: CONCLUSION72

6.1Recommendations74

6.2Research Gaps75

REFERENCES77

BIBLIOGRAPHY86

CHAPTER 01: INTRODUCTION

Background of the study

According to economic statisitics for UK 2011, the present economic conditions are likely for continure for few more years. October 2011 saw a sharp decline in manufacturing output and the construction industry has also weakened over the time. The indicators of labour market also showed declined and the unemployement has only increased over the past few years. the purchasing power of people has also declined over the period. However, the internet sales have not declined because of the slight export growth rate. The consumer price inflation declined at a rate of 4.8 percent in November 2011 (Shergill 2005 79).

The second last quarter of 2011 saw irregular growth trend. Factors affecting sustainable growth including consumption by household, overseas trade and business investment were all weak. After the second quarter, there was a rise of 0.6 percent growth in GDP. This means the total rise was about .1 percent. The rate at which the expenditure grew was about .04 percent.

Nike is back on its track after the recession and this time Nike has started to focus on online marketing for increasing the sales level. as per the estimation, the online sales will result in 15 percent increase in revenues. The retail sector growth is dependent on very limited factors. The limited sources of growth in the expenditure and income components restricted the growth of the retail sector. In terms of the output components too, growth in services sector output is confined to a few sub-sectors (Schneider 2005).

Profile of the Company

Nike is a publically trading company with headquarters in Oregon, United States. It is among the major producers of sports equipment, sportswear and the leading supplier of apparels and athletic shoes in the world. It has revenues of more than $18.6 billion. Around the world, Nike employees more than 34,000 people and are in the list of Fortune 500 companies. Nike in UK is considered to be an significant ...