REPORT ON MARKET ANALYSIS OF NIKE COMPANY
The report also analyses the direct competitors of Nike Company and the effects on the market sell of its product which are sports equipment and wear. This report through the different marketing metrics is able to analyze the performance of Nike’s marketing strategies. Background Information Nike Company is a renowned sports equipment and sportswear supplier based in the United States. It was founded in the year 1962 as Blue Ribbon Sports by Philip Knight who was a Stanford University business graduate and who formerly was a member of the track team; he imported shoes from Japan and sold them in the US, and Bill Bowerman. In the year 1978, it was officially renamed to Nike which is a Greek word referring to a goddess of victory.
Fall in the market is one of them where consumers may decide to switch to cheaper products. Social factors refer to good public relations which means a lot to the modern society. Health consciousness is one of the societies which affects the company's performance positively. This means that people will choose to buy more sports apparel so they can lead a healthy lifestyle. Technological factors play a key in the entire process of the company. Their products include sports accessories, footwear, sportswear, and apparel. Puma Company, which is a Germany based, however, with small earnings has been growing tremendously in the past few years and is another Nikes competitor as it is a big player in Europe region. iii) Consumer Analysis In consumer analysis, there are factors which influence the consumers buying decision process.
Motivation is one of the factors whereby, the Nike Company has come up with slogans which gives their customers the Just Do It sense. They have also taken up the most famous athletes around the world to in advertisements, for example, Michael Jordan and Tiger Woods. Nikes production process is regulated by strict standards in the environmental conservation. Its office in the Netherlands is the most energy friendly office in the country. It also promotes the eco-class programs, more so, it produces cotton organically grown. The other strength of Nike company is its generous nature with different endeavors such as the "the habitat for humanity" and the bower man foundation. These show how the company is committed to changing the community.
The foreign market is another opportunity the company has. This simply means that can grow globally and rely less on the state's market for its sales. The opening in Newport Beach of Nike goddess in California saw the company reap a new great market, especially in the women's market. Nike advertising spirit makes its customers love and wait for new arrivals in the market which helps them reach to public easily and thus opening opportunities for greater sales. Technology, fitness and innovation clothing has helped the company's tradition of producing more superior products. Even though Nike won, this kind of lawsuits puts into danger the improvements the company has made on how it carries out their production process and businesses. Chapter Three Target Market, Positioning, and Brand Analysis The main priorities that Nike put in place include the improvement in the strength of their brand globally, trajectory improvement in Japan and Europe, which will, in turn, lead to growth from diverse perspectives.
Therefore, Nike's strategy towards building a profitable name has focused on the following areas: i) They have continued to invest in their business through innovation and in the creation of demand. ii) They have also broadened its brand portfolio through multiple brands to focus on opportunities in the diverse market, the channels of distribution and at the price points. iii) Nike has concentrated its attention on financial discipline which makes supply chain become advantageously competitive. The company is the leading sports manufacturer in the United States and other more than hundred countries has placed it to be the number one sports company in the entire world. Its brand products which create the feeling of Nike Just Do It has to bring about the passion for everybody to use it.
The company has however continued to target the world's youth population through popular games like basketball and tennis around the world. The company also partnered with the renowned Michael Jordan to allow the company uses his name Jordan used in basketball shoes. Nike's success has been associated with its marketing strategy, an important component. They also offer customized products(core product) according to their customers' requirements with a one year warranty and replacements in case of any defects occurring after purchase and which an after-sales service(augmented product) as is pointed out above. Nike has a likelihood of changing their designs and patterns within a period of time or quantity, yet it has been designing shoes over five decades at a world-class level.
They also provide packaging services through collaboration with other brands like iPod being sold together with jogging shoes (the actual product). Price strategy: Nike Company has a high-end consumer market with high disposable income requesting for improved services satisfaction as the market targeted. Nike pricing strategy is that they provide a high-cost product with high profitability. Branding is another advertisement strategy used by Nike as it has a quite number of brands like the Air Jordan. It is a strong market mechanism that leads to a high and even more consistent quality of their product. They also increase their innovations by providing its producers with incentives so as to look for new features. It also leads to a variety of products and choices that consumers can choose from.
Sales and distribution is another tool used by the Nike Company in their promotion strategy where the company itself run three different footwear distribution centers and a total of twenty-one internationally in; Europe, Asia, Africa, Canada, Australia and in Latin America. This makes them become the top dealers in athletic apparel around the globe and also the advantageous competitiveness over other companies offering similar products like theirs. Nike's strategic mix has also enabled them to to to come up with an all-round marketing plan which ensures complete success for the company. References Abrar, M. , Safeer, A. A. J. Marketing strategy and management. Macmillan International Higher Education. Mahdi, H. A. , & Lyberger, M. R. Sports marketing: A strategic perspective. Routledge. Solberg, C. , & Polegato, R.
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