Q

Nike Marketing Structure

Assignment is about marketing structure of Nike firm,established on January 25,1964, as Blue Ribbon Sports by Bill Bower

Historical Summary
Nike was established on January 25, 1964, as Blue Ribbon Sports by Bill Bowerman and Phil Knight. It formally became Nike, Inc. on May 30, 1971. The company earns its name from Nike, the Greek goddess of triumph. Nike markets its merchandise under its brand, as well as Nike Golf, Nike Pro, Air Max, Air Force 1 and several other brands. In addition to manufacturing sportswear and apparatus, the company operates retail stores under the Nike townname.Nike sponsors many great profile athletes and sports teams around the globe, with the highly documentedsymbols of "Just Do It" and the Swoosh sign(Suddaby, 2016).
Nike, Inc is an American international corporation that is involved in the design, manufacturing and worldwide marketing and sales of footwear.The company is headquarters are based in Washington County, Oregon, USA. It is the world's foremost supplier of athletic shoes and apparel and a chief manufacturer of sports equipment. The company has employed more than 44,000 people worldwide. In 2017, the Nike brand is valued at $29.6 billion(Sheng, 2018).

The Nice, Inc logo is as shown above. The Nike logo indicates that the company is shaped to that it yields quality products at an affordable price to the people. The check mark is an assenting symbol of convenience where it conspicuously indicates success. In spite of its variants in other cultures and variants. This universality is what a global brand seeks for in building its recognition and value. An athlete is no exclusion,and he or she always go for success and desires for achievements(Whitby, 2013).
Competitors
Nike like any other company has direct and indirect business competitors. Nike competitors entail any brand that is selling sports shoes and gear. The rivalry in the sportsweariscompelling. Nike competes with numerous athletic and leisure shoes and apparel companies all over the world. The brand faces brutal competition in every aspect of the business like its product offerings, technologies, marketing, pricing costs of manufacturing and customer facilities(Burgelman, 2017).These competitor companies include;
• Adidas
• Reebok
• Puma
• Fila
• New balance
• Under Armour
• Asics
• K-swiss
• Li Ning
Nike is ahead of even the 2nduppermostparticipant who is Adidas, and it is onlyrisingin acceptance. One of the motives for Nike's Popularity is itsunrestricted roots in western nations, where it gets its chief margins.(Wolfsmayr, 2015).
Company's Position
The Nike's effective Marketing Mix Program chains the brand positioning in the target market. Its products are mostly designed for sporting events. Its product is measured to be highly effective and comfortable for the athletes. It is documentedfor the quality of its shoes and has increased the statusall over the world. Due to its sophisticated quality shoes, its Prices are usually innovative than the usual brand. So, the customers perceive it as a high-end product. For the worldwide customers, Nike has been successfully teamed up with the Soccer, golf and even the Fifa World Cup. Nike has also opened sports schools mostly in Europe.
Nike's products offer a wide range of selections for the individuals from different fields such as; from sports equipment, athletic shoes to clothes. Promotionally, Nike has tried to target the world's youth population viabasketball most common game around the globe. Nike associated with Michael Jordan to have his name Jordan Shoes for basketball and consideredJordan I, Jordan II and shadowed by many more(Hribal, 1995).
Nike's marketing strategy is recognised to be a significant component of the company's success. Nike is positioned as a premium brand, selling well-designed and costly products. The apparentinspiration promoting the Nike brand is the sports culture of people all around the world. The company is always associating with sports celebrities to help in broadening their market.
The other external inspiration promoting Nike is the social status of people. The price of Nike shoe is sensible for the middle class and upper middle class.
Generally, Nice truly emphases on its reliable products, rather than intenton stylish outfitters. It has betrothed in the cultural wonderin the world with its world's most viewed sports like Basketball and Soccer. Also, it's fruitful in gaining the consideration of the United States athletes with its most-watched sporting events(Aggarwal, 2014).
Developments within the Company
Nike is a design company, and that spreads to the way it thinks about talent development and learning.To generate a model learning program, the company has joined with top athletes. This has also helped the company build and promote the brand.
The company has created sports schools which act as sports academies. In these schools, people are trained in the sport they love and are prepared with suitable skills that will help in strengthening their career. Nike offers sporting kits to the sportspersons. Through this, the company promotes its brand(Gilmore, 1999).
Also, by associating with sports celebrities, Nike has been able to reinforce its market.These celebrities are used to market its products. By this, people are willing to buy Nike's products to associate themselves with the sports celebrities.
Also, Nike is offering an internship to the students who are college graduates. Through this, the company is creating employment all over the world. By doing a thing, people produce a sense of fittingin the company. They always want to be associated with a company that is helping people. The company also employers people in their respective departments. It was noted that in 2017, Nice had employed more than 44,000 people all around the globe.
Risk Factors
Despite all the success the company also is facing some challenges.These challenges include;
• Athletic wear goes out of fashion.
For example, while the popularity of sneakers is often cited as a fashion trend, Morgan Stanley analysts believe that shoppers are hooked on casual comfort.(Dillon, 1982).
The analyst believes that shoppers will last to choose this kind of apparel over denim. But if customers start shifting toward a more formal look again. Nike's sales could slow down. According to fickle shoppers, this threat is something for Nike to consider.
• Under Armour keeps growing
Under Armour is the second largest US sportswear Corporation behind Nike, with more than $3 billion in incomelast year. The brand still has only a portion of Nike's $28 billion in yearly revenue. If Under Armour keeps making savvy moves like the Curry partnership, it could experience explosive growth and put a dent in Nike's business.
• Disappointment from China
The expandingmiddle class in regions like China areprogressively demanding athletic apparel. These mostlyavailable markets could provide significant opportunities for companies like Nike. Chinese consumers can be changeablewhich could tipthe difficulties for Nike. China is a significant growth opportunity for Nike, but the market is highly unstable.
• The apparel industry is struggling
Nike has long been observed as immune to the fights of the attire industry, but the sector's still ailing,and consumers, for the most part, do not want to spend money on apparel. Stores that sell Nike merchandise have been faltering too, such as Sports Authority, which filed for bankruptcy(Nike, 2015).
Nike's Strategic Direction
Nike has shaped different strategies so has to growthe market for its products. These strategies are;
Nike's Generic Strategy (Porter's Model)
Nike Inc. uses a combination strategy for its modest advantage. This strategy includes two or more of the genericplans from Porter's model. The following are the generic competitive strategies implemented in Nike's combination strategy:
1. Cost Leadership Strategy
This strategy sustains a competitive advantage based on costs. In this general strategy, the company minimises production costs to maximise profitability or reduce selling prices(Miller, 1992).
2. Differentiation Strategy
This strategy provides unique products for the company. For example, the company integrates cutting-edge designs for its shoes.
Nike's Intensive Strategies (Intensive DevelopmentPlans)
Product Development. Nike's primary intensive growth strategy is product development. This intensive strategy involves the introduction of new products to grow sales revenues.
Market Penetration. In this strategy, the company grows by increasing sales revenues in existing markets.
Market Development. One of Nike's supporting intensive growth strategies is market development. This strategy enables the company's growth by targeting new markets or market segments.
Diversification.Diversification is the least important in Nike's intensive strategies for growth. This strategy involves developing new businesses to achieve growth. Nike implemented this intensive strategy in its early year, such as when it introduced apparel and sports equipment to its product mix(Merchant, 2014).
Significant Information of the Company
• Footwear for Nike is manufactured mainly in China, Indonesia and Vietnam, but many of the shoes have also been made in the USA.
A sports team has occupied many of the titles of Nike's merchandise. For example, Columbia Blue was named after the Columbia Lions an organisation which has a blue logo(Stanko, 2011).

Nike Marketing Structure

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