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Marketing Management Strategy Assignment Help
Nike Inc. started as a retailer of Japanese shoes, has developed to be the world's largest seller of Athletic footwear range. The company holds a worldwide market stake of around 40%. In the United States, Nike products are sold through around 25,000 retail accounts across the world in which the company's products are sold in over 160 nations (Nike.com.au 2018). Both in domestic as well as international level, Nike executes its business operations through retail outlets, which includes Nike towns as well as factory outlets and internet websites across the world. However nearly all the products are manufactured by autonomous contractors significantly located in offshore regions, with the company's involvement in the design thinking process, development and marketing (Nike.com. 2018). In the initial year of distribution, Nike's new range of products accumulated a rate of over 2 million along with the corporate employee base, which exceeded over 50. Such an expansion resulted the company to develop its marketing strategies in Canada followed by Australia in 1974.
Nike's corporate mission and vision statements evolves to signify the company's position as the largest athletic footwear and apparel supplier in the global market. However the company's mission statement from its business in order to align the endeavours of athletes. While on the other hand Nike’s vision statement primarily focuses on brand strength reliability and development (Nike Sustainability 2018). The company has been known to implement these corporate statements as essential guidelines for the evolution of its business strategies further resulting to the creation of business strength like well-established brand image (Nike.com. 2018).
The corporate mission of Nike Inc. is “to bring inspiration and innovation to every athlete in the world”. The company further signifies that every individual is an athlete-such a mission statement however represent Nike’s strategic goal of accomplishing global leisure as well as sports footwear apparel range along with equipment market. However, as one of the largest manufacturers of sports accessories Nike fundamentally acknowledges people to embrace a ‘winner mindset’, which is encompassed in the inspiration factor of the mission statement (Nike.com. 2018). In addition to this, the company's vision statement primarily lies on sustaining as the most authentic reliable and distinctive brand. It is important to note that the word 'remain’ mentioned in the company's vision statement essentially indicates that Nike already has taken into consideration its brand has the most reliable and connected determinant of the global marketing deal with sports equipment (Nike Sustainability 2018). However, Nike’s slogan “Just Do It” essentially represents this inspiration goal reflected by the company whereby its corporate mission statement also emphasizes high level of innovation. Thus based on the company’s mission, vision and slogan statements Nike’s product range has been purposely designed in order to magnetize as well as satisfy a wide range of market segments at global level (Nike.com. 2018).
Starting from its slogan to marketing strategies Nike reveals inspiring events in terms of product innovation. The company essentially provides marketing as well as advertising campaigns a highly creative essence, which makes it possible to acquire such a substantial success with highly engaging customer base (Nike Sustainability 2018). Despite of promoting advanced technologies, Nike as a brand has always been quite proficient in adapting to the demands and needs of its consumers (Nike.com. 2018). Rather than exclusively focusing on sales, the brand has essentially emphasised on distinguishing essential needs and designing it strategies in accordance to those means of its customers.
Nike has succeeded to successfully construct a brand which appeals to every democratic around the world. While crafting a marketing plan for positioning a specific brand Nike has been recognised as successful achiever. The company has used some of the most effective television advertisements in order to exhibit their activities, which have made them attain position as one of the well-known brands across the world (Bella 2014). These marketing strategies facilitated the company to show that regardless of any location Nike comprises a brand for every individual. These plans, popular for children indulge in cricket Australia to a pair of sports shoes (Ramaswamy and Ozcan 2016).
1.Geographic segmentation- The Company has successfully segmented its marketing strategies in order to serve its targeted Australian consumers. Along with its dominant market position in the USA, Nike has successfully attained a major market position in the Asia Pacific region (Hudson et al. 2016). However, it has a persistent marketing goal to successfully penetrate into Australian retail market and develop the same recognition it has in the USA.
2.Demographic segmentation- Nike has segmented demographic group like age and gender section to cater into the Australian retail sector in such a way that products would serve both males and females belonging to the age group of 15 to 55 years (Ramaswamy and Ozcan 2016).
3.Psychographic segmentation- The Company constitutes the segmentation in order to classify the reasons Australian consumers require Nike product range (Nike Sustainability 2018). The Australian consumer base exhibits a high inclination towards sports athletic accessories as well as an active lifestyle that signifies greater level of interest towards fitness as well as athletic activities.
Value proposition of Australian market:-
Nike has proposed certain target strategies for its Australian customer base, which include aggressive marketing plans in order to develop the awareness among its targeted consumer base about its products (Nike.com. 2018). Nike has further initiated or consumer enabled designing system to acquire the anticipated goods through customisation procedure as personal signature shoe that is offered to the sportsperson that is it empowered Michael Jordan to take his Jordan shoes. The company furthermore comprises targeting strategies, which incorporates sponsored product range through sports teams or renowned personalities (Bella 2014). In addition to this, Nike has the objective of designing its own products based on the psychological tactics associated with the Australian target market. These techniques are essentially done by connecting time with apparel, which are viewed as forms of victory when icons belonging to sports industry do sponsorship (Hudson et al. 2016).
Nike has put itself in the Australian market as a successful leader in sports merchandise by surpassing its competitors such as Lee Cooper, Adidas and Converse. The company has further made such products, which would satisfy the Australian niche market with all goods linked to sports (Nike.com.au 2018). Nike slogan “Just do it” has made significant demand to the Australian target clienteles in order to purchase their merchandise range with sense of encouragement and buoyancy resulting to become one of the major competitors in the Australian Sports industry (Yuan, Kim and Kim 2016).Nike is positioning statement is- “for every serious athlete Nike provides perfect shoe or sports products that gives confidence on every sport activity” (Nike.com. 2018). Furthermore, successfully enhancing sports lifestyle in the Australian consumer minds and appealing style and attitude along with high quality level product range are few vital positioning strategies it employs in order to cater into the Australian sports market.
Nike’s 4p’s evolve in accordance to the dynamics of the global sports goods. Such evolution is identified as critical success factors, which facilitate the business in the Australian market to use its marketing mix in order to be responsive towards the market tendencies, and developments that influence the Australian market demand for its products (Petro 2016).
1.Product:-Footwear range is identified as the most popular product that Nike manufactures. The company currently offers running shoes as well as footwear for a variety of other athlete purposes in the Australian Sports sector. It further sells sports apparels such as shorts, fitness jerseys that satisfy the sports enthusiast nature of Australian consumers. These products however are accessible under the trademark of company’s brand, which involves Converse, Air Jordan and Hurley (Lu, Liu and Rahman 2017). Based on these determinants and Nike expands its product mix in order to accomplish the demands of the Australian target market.
Further to this the company’s official website ‘NikeID’ is a represented trademark, which enables the Australian clients to strategize their customised Nike sports shoes as per their own choices and preferences. This customisation facility has further enabled the customers to create various designs in substantial quantities (Nike.com. 2018). However, the Australian consumer base do not have to create shoes by themselves but can choose from designs from a series of pre made collections. NikeID’s customisation services however are available on its official website NikeID (Nike Sustainability 2018).
2.Pricing:- Nike has obtained immense prominence which facilities buyers to purchase its products in high price range exclusively for its high quality goods and services. This has led the company to implement cost based or value based pricing in comparison to its other competitors who offer low price range (Lu, Liu and Rahman 2017). Australian target consumers of Nike are the ones who belong to the niche segment and have the affluence to use the expensive clothes, which signifies a status symbol. Such a marketing strategy however enables the consumer base to continue purchasing the product of Nike (Nike.com. 2018). However the current pricing strategy used by Nike reveals that customers have exhibited great inclination and are highly willing to spend any cost range for Nike's products in order to ensure the quality as well as always services they receive from Nike remain static.
3.Place or Distribution:- Nike shoes have been considered by other multi brand outlets. The company comprises over 20,000 detailed stores in the United States and retails its wide-ranging goods in over 200 nations across the world (Nike.com. 2018). However in international market sectors such as in Australia the company comprises autonomous distributors, licences and under the trademark of the company to sell Nike products (Nike.com. 2018). Furthermore, in order to condense the expense of Nike merchandises the company has been subcontracting its services in China from developing nations in Asia like Vietnam. However in order to expand a creative level of business strategies specifically e-commerce Nike Inc has been spending considerable amount of resources on digital advertising in comparison to marketing media e-commerce and digital promoting offerings which have been strategized in order to expand appropriate networks such as seen it marketing plan (Ramaswamy and Ozcan 2016).
4.Promotion- Reports reveal that promotional strategy of Nike has been identified as one of the most effective business strategies in the retail sector (Kozinets 2017). The company utilizes several innovative commercials renowned personalities and billboards as significant approaches to make develop high level of awareness among its Australian customer base regarding its offers and services. However, Bella (2014) noted that Nike requires other strategies for its promotion in order to encourage enhance level of new products, which it is aiming to introduce in the Australian market. In such scenario the company may implement the maxi environment strategy and transfer the create brand awareness among its targeted consumers.Nike’s direct marketing strategies primarily involve communications with education Institutions local sports teams along with other organisations to enhance its brand awareness. In the context of 4P's direct marketing refers to connection with organisations for the aim of endorsing products to the members of organisations associated with the same sector the companies dealing with. Furthermore, Kozinets (2017) note that Nike at certain events offers discounts and exclusive services in order to magnetize more consumers and generate their revenues. These discount offers and services have been efficiently providing financial support to other public organisations such as community based associations in order to endorse its athletic footwear arrange apparel as well as sports equipment.
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