Nike Inc Analysis of Marketing

Nike Inc Analysis of MarketingNike Inc. was founded in1962 by Bill Bower man and Philip H. knight as a tripnership under thename, BlueRibbon summercaters.Since Germany conqueredthe domestic ticktacket in America, Nike came with low-cost and high fiber products for the Ameri goat people. Today, Nike manufactures and distri butes athletic shoes in the world(a) market and 40% ofits sales come from athletic appargonl, sports equipment, and hyponym ventures and they supporttraditionalaswellasnon-traditional dispersal conductin oftentimesthan100countries planetaryly. Nike has attained a premier position in the market but in 1998, the family has to face the break through of exploiting afield workers and the altering consumer motivatings negatively pretentious the sales of Nike. In this report, I stick water discussed the case archives of Nike that majorly covers the child press task and the problem of change in consumers preferences after which I subscribe to d nonpargonil th e grind abbreviation and take come up with strategic objectives, market goaded strategy Objectives. Furthermore, the market strategy is discussed that covers the segmentation strategy, targeting, positioning and channel distribution of Nike and the product, price and promotional strategy it must approve.In theend, Ihave given somerecommendations to Nikes management to force it towards success.ContentsINTRODUCTIONThe company stable out nevertheless an airplane built-up in arranges to make skilful path job at Stanford University. Mr. Phil gymnastic horse a adapt schoolchild at Stanford University and a comprehensive space messenger firm that he would create sm in all price organization shoes in lacquer and then advertise them in USA. dub solicits the help of a history teacher Bill Bower man to help him in his large air project. Knight called his first shoe Tiger and began allocation at path meet. Blue Ribbon in 1971 earned its Swoosh and knight introduces the most importan t Nike crack line. In 1978 the Blue Ribbon becomes Nike and both years their earnings grow steadily. Due to Nike attention in daily shoes in the 1980, they missed the leaning to aerobic shoe and have a go at it down after allowing Reebok to manage the market spot.MISSION AND VISIONNike states in its missionary work declaration that it entail responsibility commerce in a vicious way, most important to sustainable monetary increase. With the advance in k directledge, serviceman resource practices, the rosy-cheeked knowledgeable and skilled employment power, here is exceedingly small deficient to distinguish organization. Living being seen to go added than the net amount necessary on community issue can pass off and keep patrons. This bottle sea green modification attracts concentration to the experience they are view as thoughtful and usual liable (Mullins, L. 2005).A speech, on the construction put into practice of Nike during its make obtainable duration accuse the asso ciation of individual concerned in limited practicable circumstances, defiance of hard work civil rights, low salary and annoying of its labor force. Nike takes this data seriously. On the al-Qaida of the learning answer the business has make tougheneder the check of its dealer (Hummels, H and Timmer, D.2004)OBJECTIVE OF THE STUDYThe deck up examination aim to suggest the participate governing of the Sderk criticize growth with an instrument to charge their past giving in the Sderkping procedure as fit as to appraise the pickaxe for the modus operandi to bear on after the conclusion of the in progress study in February 2009.SWOT ANALYSISStrengthsNike is a very competitive organization. Phil Knight (Founder and CEO) is frequently quoted as saying that Business is war without bullets. Nike has a healthy aversion of is competitors. At the Atlanta Olympics, Reebok went to the outlay of sponsoring the games. Nike did not. However Nike sponsored the top jockstraps and gained o f import reporting.Nike has no factories. It does not tie up cash in creates and manufacturing workers. This makes a very lean organization. Nike is tough at research and learning, as is attest by its evolving and innovative product range. They then manufacture wherever they can produce high quality product at the lowest possible price. If prices rise, and products can be made more cheaply elsewhere (to the very(prenominal) or cave in specification), Nike will move production. (ynkamat, 2009)Nike is a global brand. It is the subject one sports brand in the World. Its famous Swoosh is instantly familiar, and Phil Knight even has it tattooed on his ankle Nike is quite an strong regarding its research and development quite marked regarding its evolving and innovative product choice.They manufacture high quality at the lowest voltage price, if prices rise due to price swinger then the production process is made cheaper by changing the place of production. It belongs to theFortu ne 500 companies. Nike employs about more than 30.000 people worldwide.It has a strong sense of marketing promotion by sponsoring top athletes. It uses linarite foam and travel wire materials in order to make the manufactured shoes luminosity and more convenient. (Adam, 2009)Its standing for high quality and innovative foot breach .Nike is likewise known for its innovative marketing .Nike ads are part of the pop civilisation an impressive achievement. Famous campaigns feature bo Jackson, Michael Jordon, and Tiger Woods the Nikes swoosh is highly recognizable world wide .Nikes recent comeback has been greatly helped by increased sales of Nikes apparel. (Robert N. Lussier, 2009)Political Analysis harmonise to PEST abstract the political enviourment can be taken as strengthThe government must create sparing policies that will foster the growth of businesses. Nike, fortunately, has been helped by the US policies which enable it to advance its products. The support accorded to Ni ke by the US government, oddly in the general macro economic stability, low interest rates, stable bills conditions and the internationalistic competitiveness of the tax system, form the foundation critical to Nikes growth. (Cuizon, 2009) order Analysis According to PEST analysis the social enviourment can be taken as strengthPeople are more health conscious currently. Diet and health are getting more prominence. Consequently, more and more people are joining fitness clubs. in that location is an sequential demand for fitness products particularly exercise apparel, shoes and equipment. Nike is at the atcourse position of this surge in demand as people are looking for sports shoes, apparel and equipment. (Cuizon, 2009)Technology Analysis Political Analysis According to PEST analysis the technological enviourment can be taken as strengthNike uses IT in its marketing information systems very effectively. Nike applies marketing information systems to the economics of improvement, segmentation and differentiation for nearly all of its businesses.Nikes attractionship stance owes in large part to the use of extremely valuable teaching Technology, and applying it to every aspect of the product from development to distribution.Nike, being the world leader in the athletic footwear indus savor, is able to effectively harness its environment to boost its marketing labours. This strategy has translated into robust sales of Nikes products. (Cuizon, 2009)WeaknessesThe organization does have a diversified range of sports products. However, the income of the business is still heavily unfree upon its share of the footwear market. This may leave it vulnerable if for any creator its market share erodes.The retail sector is very price sensitive. Nike does have its own retailer in Nike Town. However, most of its income is derived from selling into retailers. Retailers tend to lead a very similar experience to the consumer. Can you tell one sports retailer from another ? So margins tend to get squeezed as retailers try to pass some of the low price competition pressure onto Nike.Nike was for quite some time unwilling to disclose any type of information concerning its partnering companies. It was charged with the violation of overtime andminimum wagerates in Vietnam, 1996, that was seen as having poor working conditions, and that it was also charged for exploiting cheap custody overseas. (ynkamat, 2009)Nike was also reported to have applied child labor in Pakistan and Cambodia to producesoccer balls. It was positioned as a subject of criticism by anti-globalization groups due to its unruly and exploited manner that was quite a mishap for its reputation. (Adam, 2009)In late 2005 founder phil knight resigned from the CEO position at Nike. Since that time Nike has had two CEO s. Nike brand co president mark parker is the companies new president and chief executive officer following the fortitude of William D. Perez will Nike ever be able to replace the larger than aliveness founder Phil knight? Another question on the area concerning is that global sales, much(prenominal) as Europe and Asia ,have instead at a much faster pace than domestic sales in the United States. (Robert N. Lussier, 2009) frugal Analysis According to PEST analysis the economic enviourment can be taken as wonkynessIn economy, the biggest scourge for Nike would be economic recession. During recession, Nikes growth will be adversely affected. The US economy is experiencing a downturn right now. Consumer purchases are slowing down. Currently, Nikes feeling the pinch of the economic recession. The Asian economic crisis also affects Nike since its goods are manufactured in Asia. The labor costs and material prices are going up.Nikes growth is not just affected by the local economy but also in the international economy. A weak Euro and an Asian recession could soaked weak sales for Nike. The overall results in the sales generated by Nike in athletic footwea r, however, remained stable. The global market makes up for the variances in sales particularly mingled with peak and lean seasons. (Cuizon, 2009)Society Analysis According to PEST analysis the social enviourment can be taken as weaknessNike, however, failed to previse problems brought about by a sweatshop expose pertaining to labor and factory conditions at production locations in Asia. This caused bad packaging and declining sales as nightspot and consumersOpportunitiesProduct development offers Nike many opportunities. The brand is fiercely defended by its owners whom rattling believe that Nike is not a forge brand. However, like it or not, consumers that wear Nike product do not always buy it to participate in sport. Some would argue that in youth culture especially, Nike is a dash brand. This creates its own opportunities, since product could become unfashionable before it wears out i.e. consumers exigency to replace shoes.There is also the opportunity to develop produc ts such as sport wear, sunglasses and jewellery. Such high nourish items do tend to have associated with them, high profits.The business could also be certain internationally, building upon its strong global brand recognition. There are many markets that have the expendable income to spend on high look on sports goods. For example, emerging markets such as China and India have a new richer generation of consumers. There are also global marketing events that can be utilise to support the brand such as the World Cup (soccer) and The Olympics. (ynkamat, 2009)The brand is sternly defended by its owners who believe that Nike is not a fashion brand, however, a large number of consumers wear Nike product because they derive a fashiontrendrather than to participate in a sport. It is mostly argued that in youth culture, Nike is a fashion brand which also createsopportunitiesfor Nike since its products would become over-the-hill before even the product wears out i.e. consumers will feel the need to replace the product with a newertrend.There are many international regions that still need tapping and there is need for sportswear and with Nikes strong global brand recognition, it can initiate in many markets that have the disposable income to spend on high value sports goods.Nike gives a lot of effort on its integrated marketing mainly through thepromotion ofcorporate brandand sponsorship agreements. (Adam, 2009)Nike has an opportunity to take advantage on its own Nike Technology. This is a sensor placed in Nike footwear that interacts with Apples iPod to record the distance a outset has completed and the calories that have been burned. Another opportunity will be to capitalize on an endorsement deal with LeBorn James after his NBA playoffs and championship serial publication appearances. Additionally, Tiger woods yearly attempt to win all foursome major Golf Tourments automatically allows Nike to build product campaigns around the Tournaments. (Robert N. Lussi er, 2009)ThreatsNike is subject to the international nature of trade. It buys and sells in different currencies and so costs and margins are not stable over long periods of time. Such an exposure could mean that Nike may be manufacturing and/or selling at a loss. This is an issue that faces all global brands.The market for sports shoes and garments is very competitive. The model developed by Phil Knight in his Stamford Business School days (high value branded product manufactured at a low cost) is now commonly used and to an extent is no longer a basis for sustainable competitive advantage. Competitors are developing alternative brands to take aside Nikes market share.As discussed above in weaknesses, the retail sector is become price competitive. This ultimately means that consumers are shopping around for a better deal. So if one investment trust charges a price for a pair of sports shoes, the consumer could go to the store along the street to compare prices for the but the s ame item, and buy the cheaper of the two. Such consumer price sensitivity is a potential outer little terror to Nike. (ynkamat, 2009)Consumers are constantly shopping around for a better deal that conveys a good quality and if one store charges a higher price for the products, the consumer would try to seek a better deal of the same product in the premises that delivers the same value but cheaper of the two, this type of price sensitivity among the consumers is a potential threat to Nike.The textile industry unpleasantly upsets the atmosphere, and therefore the organization is constantly attempt to retain its eco-friendly reputation. A recession may lead to job shortages in most of Nikes worldwide branches. The organization has experienced many adverse publicity feedbacks due to its widespread advertisingIf you have a body, you are an athlete Bill Bower man said this couple of decades ago. The guy was right. It defines how he viewed the world, and it defines how Nike pursues its destiny. Ours is a language of sports, a universally understood lexicon of passion and competition. A lot has happened at Nike in the 30 years (Adam, 2009)Specific threat is the contracts that Reebok (now part of Adidas) signed with the NBA and NFL for its apparel businesses. Another threat is the ongoing public relationship s problem pertaining to working environments in the factories producing Nike sneakers. Nike has striven to overcome images of sweatshop conditions, but the problem has been difficult to solve. (Robert N. Lussier, 2009)Porters five forcesSourcehttp//www.google.co.in/images?hl=enq=porters+5+diagramum=1ie=UTF-8source=univei=8UhZTfaOCoXJrQfarcnuBwsa=Xoi=image_result_groupct=titleresnum=1ved=0CCIQsAQwAAbiw=1366bih=643 authorization Entrants emitBargaining power of buyersHighBargaining power of suppliersLowThreats of substitutesLowIndustries rivalryHighRefer to appendix 1 endSWOT analysis should always be measured by all companies as it helps show companies all their weaknesses and threats. At the same time it also shows what the companies strengths and opportunities.Using this analysis companies can spotlight on their good part of the business and focus more on the bad part to make it good. Also a company can see what factors are external or internal which helps the business in a long speed to be more capableREFERENCESAdam, 2009. Nike SWOT Analysis. Online Available at HYPERLINK http//www.mba-tutorials.com/marketing/240-nike-swot-analysis.html http//www.mba-tutorials.com/marketing/240-nike-swot-analysis.html Accessed February 2011.angeletti3, 2005. Nike versus Adidas Case Study and Competitive Analysis. Online Available at HYPERLINK http//www.echeat.com/essay.php?t=27606 http//www.echeat.com/essay.php?t=27606 Accessed February 2011.Cuizon, G., 2009. Marketing Audit of Nikes Strategies. Online Available at HYPERLINK http//www.suite101.com/ field/marketing-audit-of-nikes-strategies-a94402 http//www.suite101.com/content/marketing-audit-of-nikes-s trategies-a94402 Accessed February 2011.E, P.M., 1998. In Competitive Strategy Techniques for Analyzing Industries and Competitors. Free Press.Gerry Johnson, K.S.W., 2008. In P. Education, ed. Exploring Corporate Strategy. seventh ed.Phil Knight, 2011. Company History. Online Available at HYPERLINK http//www.nike.com/nikeihm/about/history.shtml http//www.nike.com/nikeihm/about/history.shtml .Robert N. Lussier, D.K., 2009. Applied Sport Management Skills. Human Kinetics.ynkamat, 2009. SWOT of Nike. Online Available at HYPERLINK http//www.scribd.com/doc/13163456/swot-of-nike http//www.scribd.com/doc/13163456/swot-of-nike Accessed February 2011.