Nike Marketing Strategy – Marketing Strategy of Nike: In 1967, the company was founded. Nike was founded in 1967 and has established itself as the top brand of footwear for athletes. But, over time, it expanded its line of product range to clothing and accessories, including socks, apparel, devices such as eyewear, equipment, and other items for sport. Nike has achieved a compounded annual growth rate (CAGR) that was 11% for five years i.e. the years 2011-15. The company’s revenue was $30,601 million.
Nike At A Glance – Marketing Strategy of Nike
Company : Nike inc.
CEO: John Donahoe
Founder: Phil Knight | Bill Bowerman
Year founded: January 25, 1964, Eugene, OR
Headquarters: Beaverton, OR
Annual Revenue: 37.4 billion USD
Profit | Net income: 2.54 billion USD
Number of employees : 73,300
Products & Services: Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air Force 1, Nike Dunk, Air Max, Foamposite, Nike Skateboarding, Nike CR7, and subsidiaries including Jordan Brand and Converse.
Nike Fun Facts: Nike, Inc., formerly (1964–78) Blue Ribbon Sports, American sportswear company headquartered in Beaverton, Oregon. It was founded in 1964 as Blue Ribbon Sports by Bill Bowerman, a track-and-field coach at the University of Oregon, and his former student Phil Knight.
Marketing Strategy of Nike
Nike’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Nike? Let us discuss.
Segmentation, Targeting, Positioning – Nike Marketing Strategy
Nike utilizes psychological segmentation variables to make its services more appealing to intended customers. It has a distinct campaign as well as a method to maximize the marketing potential of each segment.
The concept of targeting is a crucial element in an effective plan of marketing particularly when a business is involved in various industries. It is present in shoes, sports equipment clothing, and other items Nike employs a different target approach.
The use-based and product-based positioning is used by Nike to establish the image they want to portray in the minds of the consumer.
Nike Mission Statement
“To bring inspiration and innovation to every athlete in the world”
Nike Vision Statement
“to remain the most authentic, connected, and distinctive brand.”
“Just do it”
Competitive Advantage – Nike Marketing Strategy
Production Units Outsourced:
Nike has footwear made by more than 140 factories in 13 countries around the world. outsourcing of manufacturing assists the company keep its operating costs low and also concentrates its efforts on marketing and sales to boost sales.
A strong Product collection:
Nike has an extensive product line-up that is active in several interrelated business areas helping the company retain its customers. It also offers a bundle of range of products for customers. Nike has subsidiaries, such as Converse, Hurley, and Jordan for accelerating growth with the assistance of different brands.
BCG Matrix – Nike Marketing Strategy
The Nike branding and the products it offers are regarded as Stars on the BCG matrix however Converse, Hurley, and Jordan are the red flags on the BCG matrix because of their absence in certain countries.
Distribution Strategy – Nike Marketing Strategy
Nike distributes its merchandise worldwide via various channels including supermarkets, resellers, e-commerce sites licensing companies, and retailers, as well as owned by the company. It has 697 Nike brand factories, 106 inline stores, 99 converse stores, as well as 29 Hurley stores across the world.
Brand equity – Nike Marketing Strategy
Nike is a well-known name across the world and its association with various sporting events like Cricket World Cup, FIFA cup Olympics and many more has assisted the company to create significant TOMA (top in mind) awareness) and brand recognition.
Competitive Analysis – Nike Marketing Strategy
The clothing, athletic footwear, and the industry of sports equipment are extremely competitive because of that there are a significant amount of both locally and internationally based players. Nike competes against companies such as Lululemon, Puma, Adidas, V.F Corp., athletic UNIQLO, and many more. Demand graphs are shaped by the Demand graph and have been influenced by various variables like the evolution of trends, technology, preference, and taste of consumers. The factors that influence it include the quality of service, performance, reliability, competitive pricing and the ability to connect with consumers play a crucial role for companies in this industry. Here are the Top Nike Competitors.
Market Analysis – Nike Marketing Strategy
The business segment in which Nike operates has a significant amount of national and local players. The main danger for Nike is the competition that is a constant in a myriad of markets that are impacting its revenue and business. Furthermore, Nike is in a business that is significantly affected by the product’s life cycle, at times, it’s extremely complicated for the business to react to the latest fad promptly.
Customer Analysis – Nike Marketing Strategy
The customers of Nike vary from individual customers to corporations. Nike is targeting customers of different demographics, including middle and upper-middle or upper-income socioeconomic categories.
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