Nike is the world’s leading sportswear and Apparel Company. It lays emphasis on innovation and discovery by providing the clients with the best products and experiences. The key successes Nike has achieved over the years can be attributed to its strategic marketing plan. An appropriate valuation metric for marketing and outreach efforts is essential for a firm’s overall growth.
One – The Basics of Marketing
Marketing denotes the process by which goods and services transition from concept to consumer. Its basis lies in attending to the consumer and satisfying their needs. Connectedness focuses on why the brand matters by empowering the individual client across geographical and digital boundaries. Customer creation deals with the provision of experiences geared towards stimulating market demand into the sales channel of a firm (Brohi, Prithiani, Abbas, Bhutto, & Chawla, 2016). As such, a firm must know the kind of market it is entering. Value creation refers to the processes that yield outputs that are more valuable than the inputs. It forms the basis of production and efficiency. Lastly, the marketing approach focuses on gaining knowledge about the client’s needs and acting on them (Mahdi, Abbas, Mazar, & George, 2015). Therefore, the marketing approach’s objective is to reap profits through customer satisfaction. On the other hand, sales approach deals with driving resources to attain maximum results and aims to profit through volume.
Two – Knowing Your Industry
When sportswear was first won, it was solely for sports purposes. However, things are changing as now notable brands have decided to integrate the notion of a sporty look in their fashion apparel, causing people to wear sportswear for all sorts of events. Sportswear remains the most prevalent clothing for teens across the globe, with Nike being the most renowned sports brand of all time. The rise of sportswear has impacted other clothing styles, particularly denim jeans.
The sportswear market is a billion-dollar industry. Particularly in the US, annual sales from sporting merchandise are an estimated 45 billion dollars. This comprises a diverse array of products such as athletic attire, footwear, certified sports tools, and exercise equipment but except leisure transportation such as RVs and bicycles. The US is the chief market in the sportswear industry, with a 32 percent stake in the market.
Three – Knowing Your Company
Nike is the global leader for shoes and apparel, and it deals with the development and marketing of sporty footwear, equipment, and accessories, among others. It has faced competition from other renowned brands like Adidas and Puma. The intense competition and technological advancements and consumer preferences are a substantial risk in the operations of the company (Mahdi et al., 2015). A significant obstacle was the lack of flexibility and nimbleness to the present retail climate. As a result, Nike’s new focus is on innovation, which is geared towards combating the competition and maintaining its crown as the ultimate leader of the sportswear niche. Nike’s prospects lie on its hold on the market, which resonates on demand formula. This means the consistent transitions make Nike capable to swiftly respond to the changes in demand for products to meet customer needs.
Four – Knowing Your Customer
Nike has categorized its consumers in terms of geographic, behavioral, psychographic, and demographic segmentation. For geographic segmentation, Nike has global stores that adhere to the cultures of the regions they are located to suit the needs of the clients. With behavioral segmentation, Nike offers benefits to the customers as they provide an active lifestyle with comfortable footwear (Brohi et al., 2016). Psychographic segmentation deals with providing consumers with a diverse product base to suit their preferences and meet their standards. Lastly, for demographic segmentation, Nike includes different ages and genders based on consumer purchasing power.
Nike’s target audience include people who frequently exercise and those who wear fashion trends to complement modern clothing (Mahdi et al., 2015). As such, their customers have been divided into men, women, and kids. In regards to the position of the brand, Nike has positioned itself as a high-class brand that offers consumers a paramount option when it comes to sportswear. While their prices are higher than other brands, their products embody quality, which has granted them an upper hand over the competitors.
Five – Knowing the Marketing Mix
Nike’s growth comes with modifications in the product mix. It continues to invest in research so to generate products that are an improved version of the existing ones and to ensure customer satisfaction. As for the place, Nike has a large number of outlets globally, which enhances customer convenience. Retail stores are the most noteworthy places where the products are sold as they are strategically situated and easily accessible (Ahmed, 2016). Moreover, Nike’s promotion involves the techniques that it uses to communicate with its customers. The mix utilizes methods such as advertising, public relations, and personal selling to influence their target customer and maintain a sharp brand image. In regards to pricing, Nike’s investments in technology enable it to offer its products at a premium service level. By assimilating value-based and premium pricing, Nike considers consumer insight in regards to the cost of the products. Finally, as for the position, Nike position statement gives the client confidence in their products. Customers who wish to achieve the best will be influenced to purchase Nike products.
Six – Knowing Marketing Research
Consumer purchasing behavior is the most vital aspect to consider for a firm before introducing their products. The design of the products and the amount of supply aids in understanding the purchasing behavior of customers. Nike’s customers are extremely connected to the brand and are loyal to the products. The visual depiction of the merchandise influences most of the customers; hence, Nike focuses more on advertising to attract their attention. People are now more than ever living healthy lifestyles, which is an area that impacts on the buying process (Brohi et al., 2016). As such, Nike has adjusted its products to meet these needs; for instance, they produce more comfortable footwear to grant customers a pleasant and injury-free experience. Market research aids a firm in understanding consumer purchasing behavior, which enhances their sales and market.
Seven – Knowing your Product and the Brand
Relentless innovation of products has and continues to be the byword for Nike’s success. It continues to push the technological boundaries of innovation to provide its customers with innovative products while distinguishing themselves from their opponents. Nike’s focus is now on digital devices, which is more so about athletes than shoes. For instance, the NikeIPod sports set which is a device for computing the speed and distance of a walk or run. Brands stand out by how well they bond with their customer, which is the case for Nike, as aforesaid, their clients are extremely devoted to the products (Ahmed, 2016). Pertaining to the brand vision, that of Nike’s is exciting; it has an active lifestyle that is inspirational and stimulating. Nike’s large personality has prompted great brand devotion making people opt for their brand.
In conclusion, it is evident that Nike is endowed with prospects when it comes to carrying out its goals, providing new commodities and enlarging its stake. Nike puts innovation in all its efforts and hence has overcome domestic and global drawbacks to create new products developing its outreach and maintaining the leader status in the sportswear industry.
