Advantages Of Nike Marketing Strategy

sale of Nike’s high-margin products to high-end customers. Regardless of the low cost of the World Shoes, they

Nike is the leading and yet renowned supplier of athletic apparel and shoes. The company controls close to 33% of the global athletic shoe market (Dogiamis & Vijayashanker,2009).Nike was founded by Bill Power and Phil Knight in 1962 as a Blue Ribbon Support and then was later on renamed to Nike in the year 1968 (Patrow,2003).The company supplies very high quality product in close to 100 countries with major markets being located in the U.S,U,K, Asia Pacific as well as in the Americas. The company has managed to attain its lead and legendary position via the application of innovative and yet attractive product design which is backed by quality production as well as well crafted marketing strategies.

Customers make purchasing decisions based on the information they have among products and the values of goods a company offers. For that reason, companies have to promote their products to increase products awareness. In order to achieve organizational goals, companies must understand the market’s needs to ensure the success of their businesses. Such information can be gained through research. The industry that will form the basis of this paper is Western Canadian Shoe Association. The three brands under study are Reebok, Adidas, and Nike.

Companies today face many challenges to maintain market share and differentiate themselves from a highly competitive and ever evolving market place. Marketing is crucial to a company’s long term success. The aim of this paper is to use the “Nike - The art of selling air” case study and concepts from strategic marketing

6). This strategy is a major component of Nike’s business strategic level plan. In applying this strategy, Nike has attained a great deal of consumer insight, which it uses to offer uniquely designed premium products to the athletes. Still on product differentiation, Nike focuses more on research and development at a greater level. These unique features to Nike, have transformed the competition levels in this competitive industry, leading to a trend of a paradigm shift in the market. Most consumers opt for Nike branded sports products and apparels, at the expense of the other brand names.

Nike is one of the largest athletic retailers in the world and the most important lessons learned when studying the successful brand include focusing on building a strong brand and the implementation of innovations. What is the first thing that comes to mind when you say or hear the word Nike? Just Do It! Swoosh! Kobe Bryant. Air Jordan’s, maybe? Well those are just a few of the many ways in which Nike has successfully managed to grow its brand. The prevalence of the Just Do It! tagline, along with the Nike swoosh, has allowed its customers to identify the brand without Nike having to say it continuously. Nike has managed to create strong emotional ties through the constant use of imagery and messages.

Nike products is one of the most selling products all over the world, Nike products are as innovative as it meets the customer needs. So our products is Nike HyperAdapt1.0 where it is simply self-tying shoes so the main idea of this shoes is to put all technical components into this shoes as it allows the athlete to hit a sensor while running and the system will be tighten automatically. Moreover, In order to monitor customer satisfaction , there are four ways, the first one is to analyze customer interactions through answering their questions in emails and tracking to their feedbacks so mapping high quality with customer expectations is highly effective, the second one is the conceptual model of customer satisfaction which says that Nike

Nike’s main strategy revolves around product branding. Their brand compromises of a swoosh logo which is accompanied by a message of “just do it”. The logo was imprinted on all of their products with the message developed to express the individuality of their target group. The branding was further promoted by Nike’s relentless approach on the quality of their product as demonstrated when considering overseas business opportunities, quality must not be compromised in order to do so. This ensures consumer satisfaction and loyalty towards Nike.

Understanding customer needs will help Nike to define new market opportunities and drive innovation and revenue growth in every aspect of its organisation. The most basic concept underlying marketing is that of human needs. Human needs are states of felt deprivation (Kotler and Armstrong, 2006). Customer logic is derived from evaluation of a company and its product based upon customer needs, customer benefits, and product features. For branded athletic shoes, Nike has to understand customer needs on a global level as the products are sold

Brands use different strategies to create competitive advantages to beat with their rivals. Some companies use “Overall Cost Leadership” to increase profit by reducing costs and increase market share by lowering price. Some companies use “Focus Strategies” to select a group of market and tailor its strategy to serve that group. The others use “Product Differentiation” as a strategy to obtain a premium price by making unique products. Nike, with its differentiation strategy, the company is continuing to separate its self from the competitors by using its superior technology and innovation. This paper mainly discusses on the company’s product differentiation and analysis how the company using this strategy to build its brand image and become a market leader in sportswear industry. A brief discuss about Nike competitive advantage which related to its broad differentiation aspect and the company product life cycle are also presented on this paper.

Nike has seldom manufactured products own premises, except their air bladders. The shoes are manufactured through outsourcing and alliances with other companies. A successful company like Nike formed its organization on the customer values that have the MOST impact on the consumers mind – Design/R&D, Marketing and Distribution. Even though manufacturing is a vital function to perform, Nike realized that there were other ways to go about this function and thereby save both cost and maintain its focus on the critical customer value areas.

Nike is an international company which specializes in designing, making and selling athletic footwear. The company specializes in designing high-quality products which are used worldwide by many people. Apart from being used in athletic and basketball games, the company 's products are used as casual wears. Apart from making and selling footwear, the company also offers a wide range of services to its customers and also sells both equipment and their accessories. The company has well-organized marketing system, including an online platform via the web. Due to its vast activities, the company has independent and licensed contractors who produce products on behalf of the company in different regions. Some products, such as footwear are primarily produced by their contractors outside the United States, while equipment are produced both locally and abroad. Their branches are managed independently, but under one common top management at the main offices. The various financial statements are consolidated at the end of the year and released as a one company report. The financial statements of the company are prepared both quarterly and annually. The business products are sold to wholesale customers, retail customers as well as individual customers who are the final users of the products. To increase its operations and boost sales, the company also has non-affiliated parties who independently manufacture and sell Nike products using the company 's logo.

This bad public image has led to loss of existing customers and potential customers switching to more ethical brands. Nike’s marketing team has had to make it a big priority to counter any negative publicity and re-focus consumer’s attention on what they are doing about the allegations.

There are numerous definitions of competitive strategy; whether, it was defined by a scholar, a textbook, or a dictionary source, it is not the same. A source may refer to this subject as a competitive strategy or a competitive advantage. Therefore, this subject is difficult to understand and then apply to a company. The Five Generic Competitive Strategies that Michael E. Porter developed are not really five strategies, more like five with subsets under them. Nike does not fit neatly into a specific strategy. The first factor within the competitive strategy as described in the Essentials of Strategic Management textbook is a broad target market or a narrow target market. The second factor considers

Report on the Case Study Nike This report has been produced to provide an insight into the consumer decision-making process, buyer behaviour factors that consumers of Nike are influenced by. The report also details recommendations based on the findings. 2.0 Summary = =