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Marketing strategies

Introduction to Marketing Strategy

The organisations are focused towards attaining their targeted goals and objectives in order to achieving high scale profit. Marketing strategies are helpful for firm to reach at high position. One essential plan is made for combining all activities related to marketing for effective growth of an industry. Foundation of marketing plan are strategies which are related with marketing aspects. Nike leads market with half of market shares, it is leader of market. Its basic aim is to render quality service and product to their potential consumers. They promote their product through conducting an effective advertisement function. Firm always selects celebrities who are mostly liked by large number of population. Nike mainly chose sports person to promote their footwear products, because it has a nice impact on consumers mind. The report contents study about marketing mix, swot analysis, PESTEL analysis of chosen organisation in order to identify actual position at market place. Competitive advantage of firm will be discussed in systematic manner.

Situational analysis of Nike

PESTLE analysis

Nike is most popular brand among sports persons, it is known as Nike, Inc. it is US based traditional business firm which render functional high quality sports footwear across the world. PESTLE analysis considered as internal and external factors that influence marketing decision of an organisation. This analysis consist of political, economical, social, technological, legal and environmental factors which are described as below

Political factors affecting Nike's business

Political are some external forces which are directly depend on government decisions. A better and stable political environment provide offers and opportunities for success and growth of business. The environment of every business is different from nation to nation, from market to market. Nike do not able to enjoy or taking advantage of equal success in all markets. Various markets are still not so wide to foreign brands , entrance into Asian market become very much tedious without having a partnership with local brand or partner. In political factor taxes and tariff play an important role at market place, they influence actual profitability of any brand.

Economical factors important to Nike Inc.

Growth and success of Nike is depends on its sales performance. This factor affect macro environment of business. Globalization has kept an eye on worlds market, it is not about an individuals economies but its all about total performance of the worlds economy. Economic condition of nation decades how brands are performing in this competitive era. If purchasing power of buyers are falls down then economic performance will also declining. Consumers are cutting cost of products this is the main reason for generating less profit for brands .

Social factors influencing Nike's Business environment

These issues are impacted on attractiveness of Nike's products such as athletic shoe, equipment and apparel. Social and cultural factors are also important for any business organisation. These factors are helpful in making it big in international market. Social cultural are different in every different market. For increasing awareness about fitness among public they are taking active part in health and fitness clubs, and for them Nike provide shoes for various range which are affordable for them. According to today's scenario people are being more brand conscious and their taste and preferences are diversified towards new market trend. Nike put its all efforts to satisfy the needs and wants of their consumers.

Technological factors in Nike's business

Nike changes their technologies according to new innovation in market for better production of athletic footwear. Company uses innovative and advanced it tools and techniques to market its goods and targets preferences or needs of consumers. Nike uses a best model for making transaction and supply chain more effective. They widely use online technology which make easy payment for products without having any contact .

Legal factors in Nike's business

Legal laws are major forces that affect business all around the world. These influence business such as Nike Inc. as a multinational company Nike has always maintain business concerns morals. It is very much easy for Nike to earn high profit I western market because of more friendly laws. Every brand shop need to follow rules and laws which are implemented by government. International marketing is possible when company follows all rules and regulation of government.

Environmental factor that impact on Nike Inc.

These factors impacted on internal as well as external factors of an organisation. Sustainability is very much important for every business firm. Ecological factors impacted on performance and reputation of the firm. Nike faces several environmental issues because of bad practices of distributors and suppliers.

SWOT analysis of Nike Inc.

SWOT analysis of Nike are helpful in determining its strengths, weakness, opportunities and threats as it is the leading brand in foot-wares. It has positioned itself at third position in leading world which are manufacturing sport shoes.


  • It is the leading shoe manufacturing company. It designs shoes for various sports like basketball, volleyball, football etc. Theses shoes provides relaxation to sports person who are wearing them while playing games as they give comfort.
  • It provides fast services to customers as it already keep the stock stored in advance according to differential needs and demands of customers.
  • It has world wide access of shoes and people can purchase them from any corner of world. The outlet of cited firm has its retail process online and offline so as to make convenient for people as they can easily purchase the products sitting at home through different websites.
  • It has strong research and development process which are helpful in providing innovative ideas for different designing of shoe products which are manufactured by Nike.
  • High quality products are available for customers at economical prices.
  • The main strength lies in its brand as it is the global brand which is preferred by most of the populations. The main reason is that its shoes are comfortable which give relaxation to customers.


  • The incomes of company are based on shares which are derived from selling of foot-wares at markets.
  • Retail sectors are price conscious. Most of the income is derived for company by selling its products into retail outlets.
  • Nike is an expensive brand so its main revenues are generated by the product shares at market.
  • The products manufactured by cited company are expensive and thus middle class people are not able to consume its products.
  • It does not have wide range of products and thus its income are generated from market shares.


  • Many opportunities are developed for Nike by product development. It provides fashionable athletics shoes to customers.
  • Various opportunities opened the door for Nike such as it can diversify its products line into sunglasses, jewellery etc. It provide high and valuable items to customers as it operates as a global brand.
  • Company can also spread its business at international level as it is a global brand which is recognised by most of the population. Various marketing events are organised at global level which are helpful in supporting the brand such as world cup and Olympics.


  • These brands are exposed to international trade activities of footwear. The products are brought and sold in differential currencies so prices are not stable they are fluctuating according to changes in prices of different currencies.
  • Price is an issue which are faced by global brands. This can also results in loss for companies as prices are not stable in economy.

Competitive advantage of Nike

USP unique selling propositions

The USP of Nike are designed for professional athlete around the world for people who are sports lover. For selling unique propositions knowledge can be captured to know about product and services. Example In Chinese markets people who are sports lover buy Nike shoes as their quality are of high standards and their prices are economical as compared to different brands. If people are wearing branded shoes they feel precious as their standards increases by wearing luxury shoes .

Competitive advantage of Nike Can be analysed with the help of Potters five force models which are discussed below

Bargaining powers of Buyer

Customers buy the products from their past experience, values and benefits which are derived from products. There are many competitors of the same products in the market but customers will be local and will not perceive towards other brand till he is satisfied with comfort and quality which are provided by Nike. The cited firm is investing in marketing activities of its products and they have also attained success levels.Buyers of Nike foot-wares are increasing constantly as compared to past generations. Innovations are made in products according to taste and purchasing powers of customers.

Bargaining power of supplier

Nike has successfully achieved economies of scale by effective selling of products at market place. There are some difficulties which are faced by companies as Suppliers are wanting to produce their own goods, labour markets are becoming unrest, delays in shipping and manufacturing of goods. Various social and political issues which are acting as obstacles are faced by Nike successfully and thus it has maintained its brand name.

Competitive Rivalry

Nike is leader among foot-wares and thus it has opportunities for cost advantages over its competitors. Largest economies are helpful in distribution of products and services over its rivalries. Major competitor of Nike are Adidas but it constantly eroding its market shares from Nike. Cited organisation has wide range of products and marketing mix are effectively achieved by companies.

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Threats of Substitutes

Competitive advantages are achieved by companies if its products are valuable to its customers. If customers are loyal towards the brand they will not switch towards other brand shoes which are offered by other companies. They should maintain their quality standards so that customers retain towards the brand for longer durations .

Current marketing strategy of Nike Inc.

Nike Inc. is most popular brand among athletics. It is famous for it high quality sports shoes. They uses generic and intensive strategy for growth and success. Generic model consist of product mix diversity and it provide competitive advantage for organisation. An intensive strategy is focuses on innovation and growth of firm. It is known as worlds biggest athletics shoes, equipment and apparel market. Nike widely use generic and intensive strategy for maintaining their high business condition at market place.

These two strategies are discussed as below

Nike's generic strategy

This strategy explains through porters model, it is a combination of strategies which provide competitive advantage. Two major plans are involved in this from porter's model.

  1. Cost leadership strategy
  2. Differentiation strategy

Cost leadership strategy is widely used by reputed organisation in order to achieve competitive advantage. Nike reduce cost of production and selling price of its companies products. Company minimize cost for maximise profitability. They sell their product at very low price for earn high profit then its competitors. This strategy is helpful in regaining its competitiveness against its main competitors such as Adidas, Puma. Cost differentiation strategy is helpful in increasing performance and growth of Nike Inc. in worlds industry. This strategy is based on cost leadership for better success and growth. Company apply various new tools and techniques for reduce cost of production in order to attain high profit. The main objective of generic strategy is to maximise profit margin by manufacturing new sports shoes.

Nike's Intensive strategies

This includes various aspects of marketing strategy which are described as below

Product development

The major strategy of Nike is growth and development of new product. Intensive strategy consist introduction of new product at market place to sales and grow. Nike adopt new technologies for better production and set their products apart from competitors. At the condition of product development these products are remain same because of same need and preferences of consumers.

Market penetration

Nike uses market penetration strategy for extra growth and benefit. Company collect revenues for its existing market for growth. Cost leadership strategy empower firm to penetrate markets based on products affordability at market place. Nike increase their market presence through increase in number of retailers.

Market development

It is Nike,s intensive growth strategy, that facilitates firm's growth and success by targeting new market segment or market. Nike target new market in Africa and south East to increase its sales and revenues.


It is least important in marketing strategies. This directly consist of development of new business for attain high growth and success. This support Nike's generic competitive strategy.
Segmentation , Targeting and Position of Nike Inc.

Segmentation , Targeting and Position of Nike Inc.

Market segmentation

Every organisation need to segment their market in different categories for making huge amount of profit. Market segmentation is a process of diving market into sub points for providing different services to different consumers according to their needs and wants. Various methods are used to segment consumers markets based on attitude, beliefs and norms . Nike conduct a marketing survey for knowing needs of different people.

Once research is completed then market can be divided into various segments which are described as under

Geographical segment

This segmentation is based on different location of consumers, in this firm divide their market into religion, state, countries and cities. Nike focuses on advertising, promotion, sales and service so it is easy for them to meet with individuals need of particular segmented groups in geographical areas.

Demographic segmentation

In this market segmentation is based on age, gender, size, income, occupation, education etc. company start up with various kind of goods for different people.

Psychographic segmentation

This classification is based on class, life style and personal needs. Consumer want their products as per their own preferences, they run according to new market trend. Nike produces footwear for athletics for providing comfort and satisfaction.

Behavioural segmentation

In this market can be categorised on the basis of knowledge, attitude or response towards a product. Consumers are very much concern about their choice and they wants products as per their own behaviour. Nike try to identify all needs of target customers for fulfilling needs and wants.

Marketing Targeting

Company focuses on targeting after segment their market, in this company need to identify which audience is more interested to buy firms products (Hendrix, 2014). So they produce goods on the basis of need or preferences of their targeted consumers for making huge profit.

Nike follows some approaches which are as under

Evaluate market segments

Firstly company must identify size, growth, pattern and attractiveness, competitors of selected segment. In this Nike need to find out company objectives. Main purpose of this approach is to decide that selected segment is able or not for providing long term profit or attractiveness.

Selecting target market

Nike mainly target consumers on the basis of demographic and psychographic segmentation in which they differentiate their costumes as per age and gender. They target both male and female who are interested in buying sports shoes and equipment. They produce different feature and quality product for females and males. They mainly targeted to adults and teenagers because according to today's scenario people are more health and body conscious, they taking part in health and social clubs. Teenagers like products of Nike because may be they play sports and need it in their daily life for more comfort. People like sports but they always interested in comfortable goods which does not create and conflicts. Nike provide products on the basis of consumers satisfaction, they ensure their buyers about high quality.

Choosing a targeting strategy

Company chose a marketing strategy which is based on product life cycle, competitors and variability. These strategies are helpful in providing benefit and growth in today's competitive era.


Every firm is concentrated on creating a good image and impression on consumers mind in order to get positioned at higher place. Through this way company offer better service and products to their consumers in comparison to its competitors. It is crucial for a brand to get success and position in this competitive world. Making an image in the minds of customers about products and services that are offered by Nike.

Recommended objectives and goals


Goals which are designed by Nike should be specific, measurable, achievable, time bound and relevant which are described below


Goals should be clear and specific which implies that they should focus on efforts which are taken to achieve those goals. What had to accomplish, which goals are important to achieve, Individuals who are involved in achieving these goals, Resources which are used in effectively achieving goals of organisations.


Performance of employees should be measurable so as to keep record of their presentation and keep them motivated towards their work performances. Measuring performances are helpful in focusing towards the goals which are effective for organisations. They keep the employees motivated towards different activities which are to be performed by them in desired time frame .


Goals which are designed by organisations should be realistic and attainable so as to measure success. If goals are achievable they are helpful in identifying those opportunities which were previously unnoticed by organisations. Achievable goals are beneficial for cited organisations as it helps them in achieving desired levels of success in organisations.


Goals should be relevant and they should align with other goals which are to be achieved by organisations. Employees of organisation should assist and support managers in achieving desired goals for organisations. Plans which are made by organisations should be helpful in achieving goals which are designed for individuals.

Time Bound

Gaols which are designed by organisations should be specific and they should be achieved in specific times which are designed for them. This objective is helpful in completing the activities in assigned times which are designed by organisations for completing assigned goals. They are also helpful in achieving long term goals for organisations. Time bound specifies the time like 6 months in which activities had to be completed.

Marketing mix of Nike Inc.

This is described with the use of four major aspects of marketing which involves product, price, place and promotion.

These all are explains as under


Nike is famous for its wide range of products in which sports shoes, apparel and equipment are included. Company mainly focuses on wide range of goods and services with high quality and large variety. They concentrated on sports enthusiasts. Sports industry providing more revenue and sales to the company. Nike use various innovative styles and techniques in which they provide their customers to design and customized feature of their selected product as per their taste and preference. This is also helpful in attracting huge audience towards product and service.


Nike uses price leadership style for attract large buyers towards their organisation in order to attain profit. It is most famous sportswear across the world, they apply employee based pricing strategy to achieve growth and success through sales and profit. Nike measure vales of consumers willingness to spend money for product. Mostly people are attracted towards their variety of shoes products. Price play an vital role for making profit for organisation. As per their high quality products prices are high as compared to its competitors, but after this huge people are willing to buy Nike products because these are more reliable then others.


Nike go through from some major stages to distribute their products to potential customers.

These are as below:

  1. Retailer
  2. Nike's offline store
  3. Nike's online store
  4. Sales through e-commerce

Major objective of every firm is to render products and services on time. Firms are mainly focuses towards distribution of products at significant place. Retailers are important aspect where company can easily sold their products. Nike placed in world wide so they provide best quality products through their retailers. As an international brand it has its offline stores all over the world, in which they provide goods as per consumers demand and wants. They provide online shopping facility to their consumers for rendering satisfaction. This is time saving process for both seller and buyers. They have their own website through which they give all information about product and service to consumers. It is very much easy for consumers to getting all details about brand and its previous market sale.


It is most important aspect of marketing mix. Nike use various promotional tools for attracting buyers towards their products. They select sports person who is like by large population.


As per the above report it has been concluded that business organisations put all efforts for attracting buyers towards their brand in order to attaining profit. Basic aim or Nike is to increasing sales and revenue. Nike is most popular sports footwear brand which is known by large number of population. It is most famous leading brand across the world. They apply various marketing strategy in order to fulfil the demand and need of people.


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