Introduction:
Nike is one of the largest sportswear companies in the world, with a strong presence in the athletic footwear market. It is one of the world’s most recognizable and successful sports apparel and footwear brands. Founded in 1964 by Bill Bowerman and Phil Knight, Nike has grown from a small start-up to a global powerhouse. Nike is now the world’s leading supplier of athletic shoes and apparel, and its products are sold in more than 160 countries worldwide. By taking steps to support athletes in realizing their potential, the company promotes ongoing advancement for both players and sport. Every position at the company is built on a team-first mentality that fosters innovation and a sense of shared purpose to make a lasting impression (Nike, 2023).
Nike has been producing high-quality shoes for athletes since 1964 and has established itself as a leader in the industry. Nike has a wide range of products, including running shoes, basketball shoes, and soccer shoes, and has something to offer for every athlete. The company’s success can be attributed to its marketing strategies, which include product, price, place, and promotion, effectively communicating the brand’s value proposition to customers. This marketing mix report will analyze these critical elements of Nike’s marketing strategy and how they contribute to the brand’s success (Encyclopedia Britannica, 2019).
Company Profile:
Nike, Inc. was founded in 1964 as Blue-Ribbon Sports and officially became Nike, Inc. in 1971. The company is headquartered in Beaverton, Oregon, and operates in more than 190 countries worldwide. The company has more than 44,000 employees. Nike’s mission is to bring inspiration and innovation to every athlete globally. The company’s products include athletic footwear, apparel, equipment, and accessories for a wide range of sports and fitness activities. Nike’s revenue in 2019 was $37.4 billion, and the company’s net income was $3.6 billion. Currently, the company’s top executives include Mr John Donahoe, the current President, Chief Executive Officer and Director of the company. Mr Andrew Campion is the company’s Chief Operating Officer and Executive Vice President. Mr Mathew Friend is the company’s Chief Finance Officer and Executive Vice President. Ms Monique S. Matheson is the Chief Human Resources Officer & Executive Vice President, and Ms Ann M. Miller is the current Chief Legal Officer & Executive Vice President (CNN Business, 2018).
Marketing Mix Elements
Product:
Nike offers a wide range of shoes for athletes and fitness enthusiasts. The company’s product line includes a wide range of sports apparel, footwear, and equipment, including running shoes, basketball shoes, soccer shoes, golf shoes, and many more. The company also produces a variety of sports equipment, such as basketballs, soccer balls, and golf clubs. Nike’s products are known for their high quality and innovative design, which allows athletes to perform at their best. In addition to its footwear offerings, Nike also produces a wide range of clothing and accessories to complement its shoes. The company’s apparel includes t-shirts, shorts, pants, jackets, and hoodies (Brohi et al., 2016).
Price:
Nike shoes are priced at a premium compared to other athletic footwear brands. This means that the company charges a higher price for its products than its competitors. The company’s pricing strategy is based on customers’ willingness to pay a premium for high-quality products that offer superior performance. Nike’s pricing strategy is designed to create a perception of quality and exclusivity. Nike’s prices reflect the company’s commitment to innovation and quality, and customers are willing to pay more for these attributes. In addition, Nike frequently offers sales and discounts on its products, which helps to make its products more accessible to customers and encourages customers to purchase their products (Brohi et al., 2016).
Place:
Nike products are sold through various channels, including its retail stores, online stores, and partnerships with other retailers. The company operates its retail stores in key locations worldwide, allowing customers to experience the brand in person. Nike also sells its products through its online store, which makes its products accessible to customers around the world. Nike sells its products through independent distributors, licensees, and subsidiaries on the global market. Nike outsources manufacturing to China from emerging nations in Asia like Vietnam in order to lower the cost of its goods. Due to Nike’s history of spending more on online advertising than on other forms of media, the company plans to increase the proper channels for e-commerce and online marketing. In addition, Nike has partnerships with other retailers, such as department stores, sporting goods stores, and specialty shops, which help to expand its reach (Brohi et al., 2016).
Promotion:
Nike’s promotion strategy is centred around its “Just Do It” slogan and commitment to inspiring and empowering athletes. The company uses various methods to promote its products, including television and print advertising, social media campaigns, and celebrity endorsements. Nike also sponsors several sports teams and athletes, which helps to create a positive image for the brand. The company’s advertising campaigns feature top athletes like LeBron James, Cristiano Ronaldo, and Serena Williams, who embody the brand’s spirit. Nike also sponsors several high-profile athletic events, such as the Olympics and the World Cup, which help raise brand awareness. In addition, Nike invests in social media and digital marketing to reach younger customers and expand its reach (Brohi et al., 2016).
Conclusion:
Nike’s marketing strategy is centred around its commitment to inspiring and empowering athletes. It is one of the world’s most successful sports apparel and footwear brands. The company’s success is primarily due to its compelling marketing mix, which includes product, price, place, and promotion. Nike’s product line includes a wide range of sports apparel, footwear, and equipment. The company’s wide range of products, premium pricing, and strategic distribution channels all contribute to the brand’s success. Nike’s promotion strategy, which is centred around its “Just Do It” slogan and its use of top athletes, helps to reinforce the brand’s message and inspire customers. Overall, Nike’s marketing mix effectively communicates the brand’s value proposition to customers and has contributed to its success as a leader in the athletic footwear market. By utilizing a compelling marketing mix, Nike has achieved tremendous success.
References
Brohi, H., Prithiani, J., Abbas, Z., Bhutto, A. H., & Chawla, S. K. (2016). Strategic Marketing Plan of Nike. SSRN Electronic Journal, 1(1). https://doi.org/10.2139/ssrn.2760631
CNN Business. (2018). Nike Inc Company Profile. Cnn.com. https://money.cnn.com/quote/profile/profile.html?symb=NKE
Encyclopedia Britannica. (2019). Nike, Inc. | History & Facts. In Encyclopædia Britannica. https://www.britannica.com/topic/Nike-Inc
Nike. (2023). Our Mission. Nike.com; Nike. https://about.nike.com/en
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