This is a marketing strategy of Nike which calls for superior pricing points in order to push the supposed valu of the product. Nike receives footwear from more than 140 factories located in 13 countries across the globe. Purpose 9 1.4. Theoretical review 11 2.1. Product delivery at the required time to the users not just effect usefulness however also result to high level of customer’s satisfaction as well as loyalty. There are a variety of ways in which a company can enter a foreign market. Market Segmentation Nike competes with the company like Lululemon, Puma, Adidas, V.F Corp., athletic UNIQLO and many others. Nike manufactures their shoes in China and Vietnam. Nike has involved in a serious of quality scandals in China. Due to its huge customer base, Nike’s market cap has grown to $198 billion as of Oct 2020. A Nike’s favorable product icon has been kept optimistic because of the strong relation with the company logo that is quite distinct and unique as well as the product slogan that has been utilized in commercials for a long period of time. The high costs premium items are given to particular distributors while leaving products with low priced to be trade at discounted price at various retail stores including Wal-Mart whereas other company such as Reebok who embraced a restricted distribution technique Nike Company ventured more into a world market capitalization. At last, Nike targets the users who are possible to build up product intimacy, consumers who are after the quality and utility of the items than the cost. Targeting strategies Nike’s favorable product icon has been kept optimistic because of the strong relation with the company logo that is quite distinct and unique as well as the product slogan that has been utilized in commercials for a long period of time. March 6, 2018 By Hitesh Bhasin Tagged With: Strategic Marketing Articles. This has developed a fairly high level of Nikes items awareness. Outsourcing of the manufacturing helps the company in keeping its operational cost low and at the same time focus its competencies on sales and marketing activities to drive the sales. It is very difficult for Nike to control all the quality products around the world. Marketing Strategy of Nike An excellent business depends upon an excellent marketing strategy. In this strategy, the company grows by increasing sales revenues in existing markets. EUROPEAN FOOTWEAR MARKET AND MARKET ENTRY STRATEGY PGDM-IB GROUP-MARKETING Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. The Nike ethos is characterised by an emphasis on the role of internationalisation as an entrenched component of their business strategy. Aimed For Sustainability – Nike’s CEO Mark Parker has addressed that they will continue to acknowledge the environmental issues in the communities. In the US, economic growth rates have tapered down, and the trade war could affect its China market. Also, Nike is in the industry which is by and large affected by the product life cycle which means that sometimes it’s very difficult for the company to respond to the fad timely. The Nike brand and its offering are Stars in the BCG matrix while Converse, Hurley and Jordan are the question mark in the BCG matrix due to their presence in the limited countries. Problem discussion 7 1.3. As one of the most soccer enthusiastic societies in the world, Brazil offers Nike an opportunity to enhance its profitability level, despite the competition from other interested corporations like Adidas. Product and usage-based positioning are used by Nike to create the image in mind of the consumers. This is extremely because of the usefulness that goes along with the items. Nike Company’s lays a lot of strategies to aim their immediate users, athletes and all sportsmen. Background 6 1.2. Your email address will not be published. Let's stay in touch :), Your email address will not be published. Acknowledgement 2 Abstract 3 Table of content 4 1. All the marketing strategy by Nike show a competitive marketing management which can hoist company top turn out to be market leaders and making the market leaders company retain their competitive frame market by means of adherence to marketing principles, marketing plans and carefully planned marketing strategies. The more reliable the distribution of the product is improves the sales and in consequence more profits. The marketing strategy of Nike rested completely upon a product image which is favorable and allowed it to develop into one of the best multinational companies after a while. Customers of Nike ranges from individual customers to companies. Some of Nike… Factors such as quality, performance, reliability, competitive pricing, connect with the consumer plays the critical role for the companies operating in this business. 2 Master thesis in Business Administration Title : IKEA marketing entry strategy in China Author : Jiang Lingxiu Supervisors : Tomas Muller n , Liudmila Chikhun Date : April, 2017 Key words : internationalization, market selection, entry mode, timing of entry Nike focused on these consumers by means of agreements between the Company and sports team, college athletic for product support and sponsorship as well as eventual endorsement to the team members. This if statement checks if the bar's close (close) crossed over the 20-bar exponential moving average (ema(close, 20)). Nike uses psychographic segmentation variables to make its offerings more attractive to the target customers. Devise a market entry strategy for the product, clearly showing which you would use and justify your choice indicating why the method chosen would give benefits … Strong product portfolio:  Nike have strong product portfolio as being present in various interrelated business segments is helping the company in retaining its customers and provide a bundled products to them. Additionally, some market entry methods are questionable on a practical basis i.e. SWOT analysis – Here is the SWOT analysis of Nike. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. These founders were not Whichever market entry strategy you choose, keep in mind the financial impact. Nike’s secondary intensive growth strategy is market penetration. This essay will also consider the political, legal and cultural issues which Nike can face while implementing any strategies in international markets. This simple market entry checklist can help identify the steps required to successfully enter a new international market. Company does this through associating triumph with the apparel. To summarise, selection of market entry mode is of strategic importance and therefore it is vital to make an informed assessment before embarking upon any international business dealings. Most of the athletes contracted by Nike include soccer superstar Roberto Carlos, Ronaldo and Ronaldinho, basketball legends and superstars such as Lebron James, Jermaine O’ Neal and triathlete superstar Lance Armstrong as well as Tiger Woods a big name in the world of golf. http://602communications.com/Dig deep inside Nike branding campaigns and you'll discover a very simple archetype story. An entry strategy is a way an organization can access a market based on its structure. Nike has subsidiaries such as Converse, Hurley and Jordan for driving growth with the help of the different brands. The marketing strategy of Nike rested completely upon a product image which is favorable and allowed it to develop into one of the best multinational companies after a while. Since Nike focused on the users who embrace product understanding and closeness and thus heed less regarding the product. Market development is a third strategy for consideration due to Nike's ability to geographically expand our product offerings. This marketing strategy of Nike is particularly successful as of its capability to reach many athletes. Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, Marketing Strategy of Nike – Nike Marketing Strategy. Aside from trading quality products that have result to a high number of user loyalty, the promotional and communication utilize by the company are simply outstanding. This strategy will also consider the threats of entering into a new market and supply of sufficient funds and labour in terms of applying the strategy. Nike Provides a Wide Variety of Products To A Large Number Of Sports To Capture Great Market Share Nike has a variety of sporting products for everyone. The entry strategy will highly depend on the definition of potential customers in that market and whether those are ready to get value from your potential offering. Since Nike It optimizes the manufacturing and production processes. Not only does it own 48% of the American athletic footwear market, but its share of the basketball footwear market is at a staggering 96%!What sort of marketing strategy has Nike used to achieve and maintain this level of market … Being present in footwear, sports equipment, clothing and many others Nike uses differentiated targeting strategy. a possible lack of suitable distributors or agents to sell and service the product. It uses separate campaign or strategy to cap the market potential of the different segments. The major threat to Nike is the imitation that goes hand in hand in various, Michael Porter's Five forces model for industry analysis, Marketing strategy of Dell - Dell marketing strategy, Marketing strategy of Aquaguard - Aquaguard marketing strategy, Marketing Strategy of Apple Inc - Apple Marketing Strategy, Marketing strategy of BMW - BMW marketing strategy, Marketing Strategy of Dettol - Dettol Marketing strategy, Marketing strategy of Indigo Airlines - Indigo Marketing strategy, Marketing strategy of KFC - KFC Marketing strategy, Marketing Strategy of Alibaba - Alibaba Marketing Strategy, Marketing Strategy of Axa - Axa Marketing Strategy, Marketing Strategy of Baidu - Baidu Marketing Strategy. Nike has achieved compounded annual growth rate (CAGR) of 11% for the period of 5 years i.e. Sportsmen are the majority consumers of Nike’s products. Nike is the well-known brand globally and its association with the various sports events such as Cricket world cup, FIFA cup, Olympics and many others has helped the company in creating high TOMA (top of mind awareness) and brand pull. Nike is one of the pioneers of the manufacturing outsourcing strategy. Founded in 1967 Nike has emerged as the most preferred footwear company for the athletes. Through this, the costing is not pretentious too much in propose to accommodate a lot of consumers. According to Ni and Hu (2012) say that Shanghai quali… The apparel, athletic footwear and sports equipment industry are highly competitive due to the presence of a large number of local and international players. This allows the Company to set quite higher cost that its rivalry. STP strategy assists Nike to advertise its products by focusing on specific exclusive segment of the market (Ghauri and Cateora, 2014). Targeting is the important aspect of the marketing strategy, especially when a company is in different businesses. It outlines your business goals, an overview of the target market, precisely what you will sell there, expected sales and how you will achieve them. Nike distributes its products worldwide through different channels such as resellers, supermarkets, e-commerce sites, retailers, licensees and company-owned outlets. Nike, Inc. is a marketer of sports apparel and athletic shoes. Types of Product and Service in Marketing Management, Product Market Matrix to Develop Your Marketing Strategy, Brilliant Slides on Soft Skills and People Development. These targeting techniques include product sponsorship by professional and well known athletic team, college sports team as well as celebrity athletes. It has psychological effect to the viewers and this is reinforced with promotional which affirm this point. Market entry requires a thorough analysis of the market, the goals of the company and its attitude to risk. The marketing strategy of Nike is one of the techniques that many business are followed to become successful in the world of business like Nike did. The major threat to Nike is the imitation that goes hand in hand in various markets which are affecting its revenues and businesses. Nike is the market leader in sports equipment. Another significant thing that business must consider if you want to follow the success of the company is that, the truth that Company utilizes the vertical combination pricing technique in that they take participants ownerships at channel levels which differ and the Nike company also engage in diverse channel level functions in a propose to control prices as a result affect pricing function. You can follow me on Facebook. Innovation strategy at Nike is its core competency. From the time it was founded in 1964 by Bill Bowerman and Phil Knights, it has in continuous search for ways of improving those products that they sell. When a company has completed the process of market research and has confirmed that, given its resources, it is capable of successfully entering a specific international market, it is time to develop a strategy for market entry. The demand graph is shaped by variables such as the change in the fashion, technology, taste and preferences of the customers. Outsourced Manufacturing Units: Nike receives footwear from more than 140 factories located in 13 countries across the globe. Once in the market, this research needs to As the story goes, he ruined the waffle maker but invented a brand new type of shoe. Segmentation, targeting, positioning in the Marketing strategy of Nike –, Competitive advantage in the Marketing strategy of Nike –, BCG Matrix in the Marketing strategy of Nike –, Distribution strategy in the Marketing strategy of Nike –, Brand equity in the Marketing strategy of Nike –, Competitive analysis in the Marketing strategy of Nike –, Market analysis in the Marketing strategy of Nike –, Customer analysis in the Marketing strategy of Nike –, How To Write An Outline (Explained with Steps). This is reflected by their mission statement, which aims to “bring inspiration and innovation to every athlete* in the world” with the caveat that “*if you have a body, you are an athlete” (Nike.com, 2017). Nike targets customers from different age groups and middle / upper-middle or upper-income social groups. It alls starts by developing your smallest viable market. However, over the period of time, it extended its product line to apparels and accessories like clothing, socks, digital devices, eyewear, and equipment for sports. Market Once the sports team manager lay down a particular kind of track shoes manufactured by Nike, the learner have no choice other than to purchase them as well as sports team can purchase the track shoes in a large number and deliver them to the members of the team. Nike Company distributes its items base on the level or number. No one market entry strategy works for all international markets. Marketing mix – Here is the Marketing mix of Nike. Pricing Strategies For instance, when a superstar athlete sponsors a particular brand of sports shoes, the shoes will be related with victory. It’s safe to say Nike’s at the top of its game right now. Distribution Strategies Entering international markets can involve credit, political and currency risks including non-payment, expropriation of your assets by a foreign government and fluctuation in the value of your currency relative to the target market’s currency. Nike also follows market segmentation, targeting and positioning (STP) strategy. An athlete or sportspersons is more possible to choose shoe designed that is marketed by Company more than an individual who hate sports as well as exercises. Many products had been recall due to low quality and some products have been caused injury to consumers in China. Its products are positioned as high quality, innovative, and fashionable. Nike swung into action even before most Chinese knew they had a new hero. Nike, one of the world’s largest makers and distributors of sports products, requires an effective market entry strategy to enter the Brazilian sports market. Communication and Promotional Marketing Strategy of Nike Known for its great quality athletic products, Nike is famous globally and holds a very large market share, close to half in US. Aside from dealing or contracting of celebrity athletes to endorse their products, Nike also used a best deal of ad by means of mass media. The three strategies are very closely linked. The company uses a selective demand ad targets on the higher costs shoes utilized for typical sports. Figure 1 China Market Entry Strategy – Map of China’s 33 Provinces and Administrative Regions Although foreign companies in the b2c sector still remain focused on coastal cities, business-to-business markets are often far more geographically scattered. Here are the Top Nike Competitors. Delimitation and scope 10 2. Nike routinely relies on the emotions of activity, heroism, success, achievement, and triumph to appeal to customers, a strategy that has been successful regardless of the market. ). This function can send market, limit, stop, and stop-limit orders. The marketing strategy of Nike embraced by many organizations can either provide them a market frame or make them insulate the market frontrunner. It uses separate campaign or strategy to cap the market potential of the different segments.Targeting is the important aspect of the marketing strategy, especially when a company is in different businesses. Answer Market Entry Strategy Description Nike products are sold in many countries throughout the world. Plus, continued innovation and … A market entry strategy is where you spell out such all-important specifics. Nike has hired many professional and well known celebrity sportsmen that have managed to make a considerable interest to their items. Nike (NKE) faces some challenges in its target markets. The First Nike Marketing Strategy Bill Bowerman was a track and field coach, as well as one of the co-founders of Nike. Market entry strategy 11 2.2. In the mid-1970's, he began experimenting with his wife's waffle maker to design a better tread for running shoes. Being present in footwear, sports equipment, clothing and many others Nike uses differentiated targeting strategy.Produc… Any strategy has to be clear and well-thought out, with partners chosen wisely. This market entry strategy can be perfect for brand new companies who do not have enough funds to take risks. If you continue browsing the site, you agree to … Another marketing strategy of Nike is the styling of product objective or purpose. The marketing strategy of Nike invests a lot in commercials and product promotion. 1.1.1 International Market Entry Strategies International market entry modes can be classified according to level of control, resource commitment, and risk involvement (Hill, … Through this, Nike is capable to reach an extensive number of consumers and clients who are likely to purchase. To open a market position our TradingView strategy uses the strategy.entry() function. Introduction 6 1.1. 2011-15 and revenue of $ 30,601 million. Direct exporting may be the most appropriate strategy in one market while in another you may need to set up a joint venture and in another you may well license your manufacturing. For example, Nike increases its stores and retailers in the United States to sell more athletic shoes to American consumers. Nike uses psychographic segmentation variables to make its offerings more attractive to the target customers. Business segments in which Nike operates has a large number of local & national players. To determine which would prevail as our overriding strategic Mission- “To bring inspiration and innovation to every athlete in the world”. I love writing about the latest in marketing & advertising. Nike have strong product portfolio as being present in various interrelated business segments is helping the company in retaining its customers and provide a bundled, Nike distributes its products worldwide through different, Nike is the well-known brand globally and its association with the various sports, athletic footwear and sports equipment industry are highly competitive due to the presence of a large number of local and, Business segments in which Nike operates has a large number of local & national players. There are 697 Nike brand factory stores, 106 inline stores and 99 converse stores and 29 Hurley stores globally. Even if some are likely to purchase the products, Company pays particular emphatic concentrating to the sportsmen more than some number individuals even if it also targets teenagers who have hold the hip hop customs. 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