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COMSATS UNIVERSITY ISLAMABAD
Couse Title : Fundamentals of
Marketing
Assignment No : 02
Submitted By : WALI UR REHMAN
Registration No : SP23-BSDS-054 Q1 Nike Marketing Strategy Analysis
1. Introduction
Nike, Inc., founded in 1964, is a global leader in the design, development,
and marketing of sportswear and athletic footwear. With its headquarters in Beaverton, Oregon, Nike has built a strong brand image, largely driven by its focus on innovation, quality, and a powerful emotional connection with athletes around the world. The company operates in more than 190 countries, with its iconic "swoosh" logo and "Just Do It" slogan symbolizing motivation and athletic achievement.
2. Marketing Mix (4Ps)
Nike utilizes an effective marketing mix that has allowed it to remain a top competitor in the athletic industry:
Product: Nike offers a wide variety of athletic footwear, apparel, and
accessories. The company is known for product innovation, introducing technologies such as Nike Air, Flyknit, and Dri-FIT, which are designed to enhance performance and comfort for athletes.
Price: Nike follows a premium pricing strategy, reflecting the high
quality and innovation of its products. It also uses psychological pricing (e.g., $99.99) to make its prices seem more attractive. However, the brand also offers discounts and sales to reach different customer segments.
Place: Nike has a broad distribution network that includes its own branded stores, e-commerce platforms, and partnerships with retailers worldwide. This ensures that its products are widely accessible to customers in different markets.
Promotion: Nike is famous for its impactful marketing campaigns,
which often feature well-known athletes like LeBron James and Serena Williams. The brand uses various promotional strategies, including television ads, social media marketing, sponsorships, and collaborations with influencers to build a strong emotional connection with its audience. 3. SWOT Analysis
Strengths Weaknesses
- Strong brand image and loyalty - High production costs
- Reliance on - Innovative product design endorsements
- Environmental - Global distribution network concerns (manufacturing)
- Strong online presence
Opportunities Threats
- Intense competition - Expanding in emerging markets from Adidas, Puma
- Growing athleisure trend - Counterfeit products
- Fluctuations in raw - Focus on sustainable products material prices
Segmentation: Nike segments its market based on demographic
(age, gender), geographic (regional markets), psychographic (lifestyle, social class), and behavioral factors (benefits sought, loyalty status).
Targeting: Nike primarily targets individuals aged 18-35 who are
interested in sports, fitness, and an active lifestyle. It also caters to professional athletes with specialized products.
Positioning: Nike positions itself as a premium sportswear brand that
is synonymous with high performance, innovation, and style. Its positioning strategy emphasizes empowerment and personal achievement, appealing to consumers on both functional and emotional levels. 5. Competitor Analysis
Nike faces strong competition from brands like Adidas, Under Armour, and Puma. Below is a comparison of market share between these competitors.
Market Share Comparison (2023)
Market Brand Share (%)
Nike 38%
Adidas 22%
Puma 8%
Under Armour 6%
Others 26%
6. Recommendations
1. Sustainability Focus: Nike should increase efforts in producing
environmentally friendly products by investing more in sustainable materials and recycling programs to appeal to environmentally conscious consumers.
2. Local Market Customization: Nike should consider more localized
marketing strategies for emerging markets by tailoring products and promotions to meet local preferences, culture, and sporting interests.
7. Brand Equity
Nike’s brand equity is one of its greatest assets, contributing to its high valuation and market dominance. Brand equity refers to the value derived from consumer perception of a brand’s name rather than the product itself. Nike’s strong brand equity is built on its consistent messaging, high-quality products, and emotional appeal through iconic marketing campaigns like “Just Do It.” This leads to strong customer loyalty and the ability to command premium pricing. Question 2: Marketing Plan for a New Product (For Practice)
Note: This section is for practice and will not be graded.
Imagine launching a new smart fitness tracker under a company like XYZ Corp.
1. Product Concept
The fitness tracker will include features like heart rate monitoring, step counting, sleep analysis, and integration with other fitness apps. Its USP will be its affordability and high accuracy, offering users premium features at a lower price compared to competitors.
2. Target Market and Customer Persona
Age: 18-45 years
Income: Middle-income earners
Location: Urban areas in North America and Europe
Product: Smart fitness tracker with customizable bands and an easy-
to-use interface.
Price: Competitive pricing strategy at $99, making it accessible to a
larger audience.
Place: Available online through the company’s website and leading e-
commerce platforms.
Promotion: Social media ads, partnerships with fitness influencers,
and discounts for early adopters.
4. Competitor Analysis
Positioning Map (Price vs. Quality)
In terms of price, XYZ’s tracker will be positioned below Fitbit and Garmin, while maintaining similar quality to ensure it appeals to price-sensitive consumers. 5. Market Research Plan
To gather feedback, surveys and focus groups will be conducted post-launch,
and feedback from early adopters will be used to refine the product for future versions.
Deliverables:
Customer Persona Chart (Demographics, needs, pain points)
