Nike Inc Marketing Mix Neeta Maxen

Under the guidance of Dr. Deepak Gupta @NGASCE Nike Inc Marketing Mix revisited.

1. Nike Inc.
Marketing
Mix
4P’s/ Product, Place, Promotion, Price
- An Analysis
Submitted To NGACSE under the guidance Dr Deepak Gupta
Presented by :Neeta Maxen

2. Marketing Mix
Nike Inc.’s marketing mix (4Ps) determines the profitability and
growth of the athletic footwear,apparel and equipment business.
A company’s marketing mix refers to the strategies and tactics
applied to execute the marketing plan, with focus on products,
place, promotion and price (the 4Ps).
The company specializes in shoes that are designed to satisfy
the needs of professional basketball and football athletes.
However, these products are marketed to all consumers around
the world, for athletic and leisure activities, based on the
specifics of Nike’s corporate mission and vision statements.

3. Established in 1964, the company’s 4Ps evolve according to
the dynamics of the global sporting goods industry.
Such evolution is a critical success factor that enables the
business to use its marketing mix to respond to market
trends and changes that influence local, regional, and
international market demand for its products.
Through its marketing mix, Nike Inc. strengthens its
capabilities to protect its business from the strong force of
competition.
The company competes against various firms involved in
the footwear, apparel, and athletic equipment markets. For
example, the business operates in the same markets as
Adidas, Puma, Under Armour, ASICS, and VF Corporation.
Evolved Marketing

4. Originally a distributor of shoes, the company now manufactures various
shoes, apparel, and equipment for different sports.
Based on Nike Inc.’s generic strategy and intensive growth strategies, the
business integrates new technologies into its product lines to improve product
effectiveness and customer satisfaction.
The following broad categories represent Nike’s product mix:
Shoes
Apparel
Equipment and accessories
This element of the marketing mix enumerates the organizational outputs offered
to target consumers. These outputs are known as the product mix.
1.
2.
3.
Nike's Product(Product Mix )

5. Shoes are the most popular products fro Nike
Inc. The business gradually adds more
product lines in this category. For example,
the company now offers running shoes,
tennis shoes, and shoes for a variety of other
sports, including cricket.
Product Mix
Nike also sells apparel, such as jerseys, shorts, and related products.
In addition, the company’s product lines include accessories and equipment,
These products are available under a number of the company’s brands, including Air Jordan,
such as golf clubs.
Hurley, and Converse. Based on this element of the marketing mix Nike expands its product
mix
to address the needs of its target markets and market segments.

6. The product strategy and mix in Nike marketing strategy can be explained as
follows:
Nike has adapted to the changing times are now designing and selling smart
products which have capability of connect to iPod nano/apple watch bringing
about the combination of products from Apple Inc and Nike which measure the
performance of the sportsperson.
Besides these, NIKEid is an innovative sub brand of Nike which allows it's
customers to design and customize the features of their desired
Nike also offers new service of personal trainer to its consumers
products as per their requirements which attracts the greater
audience.
for various types of sports.
Product Stratedy

7. #NIKEJUSTDOESIT
Apple Watch Nike now comes with new colors for the Nike
Sport Band and Nike Sport Loop, and a new Nike Compact
watch face allows for multiple Nike Run Club complications.

8. Retail stores
Nike Online Store
Niketown retail outlets (company-owned)
This element of the marketing mix outlines the venues where the company’s
products are sold, accessed or distributed.
Nike Inc. sells its sports shoes, apparel, and equipment through a large number of
outlets worldwide. For example, these products are available at major retail stores.
The following places/venues form Nike’s distribution strategy, arranged according to
significance:
Place /Distribution

9. Place/Distribution Strategy
Retail stores are the most significant places where Nike products are sold
These retailers include large firms like Walmart as well as small local and
The customers can purchase Nike’s sports shoes, apparel, and equipment through the
company’s online store. Nike uses E commerce websites like flipkart, amazon for sale of its
products. By this Nike gets to showcase its almost every product reaching out to millions of
users over the internet.
In addition, the business operates it's Niketown retail outlets. Nike exclusive
stores are very common in almost every city and suburb in the country catering to
the requirements of consumers of specific geography.
because these venues are strategically located and easily accessible in
various markets around the world.
regional stores. In America Nike has more than 200,000 retailers and has its presence in
more than 150 countries in the world.

10. These outlets are company-owned
and allow access to business and
market information that supports
corporate strategic management
with regard to marketing strategies
and tactics for current, new, and
emerging products. Based on this
element of the marketing mix,
Nike Inc. controls the distribution
and sale of its products, especially
Place/Distribution Strategy
Promotions in Factory Outlet
through its online store and Niketown retail outlets.However, the company has
limited control on the distribution and sale of its products via other retail outlets.

11. Nike has its manufacturing units in almost every country to minimize the logistics
costs and getting better efficiency in the distribution. The density of stores across
the city is so high in India that Nike poses great competition to Adidas, reebok and
its rival brands.
#NIKEJUSTDOESIT

12. This element of the marketing mix is also known as the marketing communications mix,
and involves the tactics that Nike uses to communicate with its target markets. The
company depends on the effective promotion of its products to maintain a strong brand
image, which is one of the strengths determined in the SWOT analysis of Nike Inc.
Nike Inc.’s Promotional Mix
The company uses promotional tactics to communicate with target customers
about its products, and persuade these consumers to purchase the products.
Advertising
Personal selling
Direct marketing & CoBranding
Sales promotions
Public Relations
The following are Nike’s promotional activities, arranged according to significance:

13. NIKE Ads Speaks for the Brand

14. Nike Inc.’s Promotional Mix
Advertising is one of the biggest contributors to Nike’s ability to attract customers. The company heavily relies on
advertisements, especially those that involve high-profile celebrity endorsers, such as professional athletes and
sports teams.
This element of the company’s marketing mix also includes personal selling through sales personnel who
persuade target consumers to buy the company’s products. For example, sales personnel at Niketown retail
outlets are trained to use such persuasion.
The company’s direct marketing activities involve direct communications with colleges, local sports teams, and
other organizations. In the context of the 4Ps, direct marketing refers to direct contact with organizations for the
purpose of promoting products to the members of such organizations.
In addition, Nike occasionally applies discounts and special offers to attract more customers and generate
more sales. These discounts and offers form the company’s sales promotions tactics.
Moreover, in public relations, the company sponsors and provides financial support to other organizations, such
as community-based networks, to promote its athletic shoes, apparel, and equipment.
Based on the tactics included in this element of Nike’s marketing mix, the business depends on its relations
with high-profile endorsers to succeed in promoting its business and products to the international sporting
goods market.

15. Nike’s ‘Unlimited Scout’ earned the title of highest breakthrough ad of the quarter,”
the Ace Metrix team said.
“The digital ad follows Paralympian runner Scout Bassett as she talks about the
training that took her from last place to first. The ad earned the highest likeability
score of the group and evoked emotional terms such as ‘moving,’ ‘powerful,’ and
‘inspirational’ in viewer comments.”
https://www.youtube.com/watch?v=gu5d6qpGU6s
#NIKEJUSTDOESIT

16. Prices and Pricing Strategy
Value-based pricing strategy
Premium pricing strategy
In using the value-based pricing strategy, Nike Inc. considers consumer perception about the value of
its products. In the context of the marketing mix, this value is used to determine the maximum prices
that consumers are willing to pay for the company’s sports shoes, apparel, and equipment.
In relation, the premium pricing strategy involves high prices, based on a premium branding strategy
that establishes Nike products as higher in quality and value than competing products.
This element of the marketing mix identifies the prices that the company applies to maximize profits while
attracting the desired share of the multinational market.
Nike’s investments in technology is linked with a strategy to offer its products at a premium. Still, the
company considers current market conditions in setting its price points and price ranges. Based on
these considerations for this 4P variable, the following pricing strategies are applied in Nike Inc.’s
business:
The company’s use of advertisements involving high-profile celebrity endorsers is indicative of such
emphasis on premium branding.

17. In 2014, the business successfully increased its selling prices and generated higher
sales and revenues. This trend continues, as the company enjoys increasing sales
revenues while gradually increasing its prices. Based on the analysis of Nike Inc.,
such trend is linked to the sociocultural and economic changes in the industry
environment. The business adjusts its price ranges according to such changes. In this
element of the marketing mix, Nike Inc. successfully uses its pricing strategies to
maximize its profits while emphasizing high value in promoting its products and
brand.
#NIKEJUSTDOESIT

18. Interesting? Read on...............................................

19. SEGMENTATION,
TARGETING
AND POSITIONING
STRATEGY
OF NIKE

20. Brief
Marketing choices are crucial components of a strategic marketing process.
At this stage of planning, decisions are made in order to indicate the direction
of the marketing mix not to mention the way products are going to be
perceived in the market place.
These marketing choices group consumers together based on common needs
with the ultimate goal to affect the buying decisions of the target customers for
these products, which stands for segmenting, targeting and positioning
strategy.
In other words, STP is a marketing signification that associates the way to
evaluate and choose a target market for specific product or service.
What follows is an example, that explains about STP strategy of Air Jordan Brand
of a well - known company that produces sports equipment, which is Nike.

21. Marketing Plan

22. Summary
Air Jordan Brand is a subsidiary of the bigger corporation- Nike Inc, which is the
worlds leading designer, marketer and distributor of atheletic footwear , apparel,
equipment and accessories for wide variety of sports and fitness activities.

23. Product
Goal
Jordan Brand Offers a variety of Basketball apparel but specializes in footwear.
Jordan provides premium high quality shoes that add protection and improve performance.
Jordan Brand aims to capitalize on past success, while using new opportunities to
achieve"Greatness"such as Michael Jordan.
Summary

24. Target Market & Strategies

25. Company Overview

27. Minimally supplied shoe causes increase in demand.
Development of young generation oriented products
Global Strategy- international challenges
Technology shift: Light weight and protective shoe is the objective.
Ranging from young children.
Stylish and fashion concious teenagers/adults.
Athletes that demand and require high performance products and even
budget consumers
Situation:
Segmentation:
STP for Air Jordan

28. Air jordan caters to different segments.
The retros captures the highest amount of segment population.
It caters to its athletic segment by manufacturing and releasing high Quality signature
shoes.
"Team Jordan" produced for the budget oriented consumer.
Air Jordans are positioned very high in it's consumer mind
It features high priced products that are stylish and deemed as premium.
Targeting:
Positioning:
STP for Air Jordan

29. Strategy#1- Celebrity Endorsements
Jordan Brands "Team Jordan" really focuses on promoting Jordan products through premium athletes.
This strategy however focuses on the flip side of entertainment celebrities.
Strategy #2 - Using Sports Channels to promote Jordan brand.
Jordan Brand will use a new relationship with Sports channels such as " Russia sports 1", Russia 2', NTV
Basketball','Eurosport' to targe the basketball fan and sport loyalist market.
Strategy #3 - Promotion through sponsoring and social work.
Strategy aims to gain loyalty from current and potential customers. Sponsorship means taking steps to
make the brand more recognizable and boost positiveimage due to proper promotion of sport events in
mass media creating more fun and entertainment.
Marketing Strategies & Tactic

30. THANK YOU