topic the giant in the shoe industry nike

The report also discusses Nike''''s collaboration withDior and its marketing strategies to position the Nike Jordan Dior shoes as a unique and premiumbrand that combines sports and haute co

FPT UNIVERSITY- CAMPUS HO CHI MINH

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GROUP ASSIGNMENT [MKT101] TOPIC:The giant in the shoe industry - Nike

Course:MARKETING PRINCIPLES – MKT101 Lecture: Đỗ Vũ Thiện Nhân

Group: 1 Name of group member Code

1 Nguyễn Thành Lộc SS181093

2 Ngô Hà Gia Bảo SE172812

3 Nguyễn Quốc Bảo SE172850

4 Nguyễn Lê Nhật Nam SS1801311

5 Mai Hoàng Phúc SS180969

6 Nguyễn Lê Khang SS180864

Thành phố Hồ Chí Minh, 6/2023

TABLE OF CONTENT:

I/ EXECUTIVE SUMMARY

II/ COMPANY OVERVIEW

1/ Introduction

III/ Marketing environment analysis

IV/ Target customers and Positioning

V/ Analysis of the marketing mix

VI/ Marketing plan for the next year

VII/ Conclusion

VIII/ References

IX/ Appendices

I/ EXECUTIVE SUMMARY

This report provides an overview of Nike, analyzing its company history, marketing environment, target customers, positioning, and marketing mix The report also discusses Nike's collaboration with Dior and its marketing strategies to position the Nike Jordan Dior shoes as a unique and premium brand that combines sports and haute couture Additionally, it examines Nike's marketing mix, including its product offerings, pricing strategies, distribution channels, and promotional activities The report concludes by outlining Nike's marketing plan, which involves expanding into developing markets, strengthening the brand, increasing digital presence, and focusing on product development and customer care

II/ COMPANY OVERVIEW

1/ Introduction: Nike was founded in 1964 as Blue Ribbon Sports by Bill Bowerman, a track and field

coach at the University of Oregon, and his former student, Phil Knight They opened their first retail store in 1966 and launched the Nike shoe brand in 1972 By the turn of the 21st century, Nike had retail stores and distributors in more than 170 countries and its logo —a curved check mark called the “swoosh mark”—is recognized worldwide

In 2020, Dior Men's leading footwear designer Thibo Denis, and Jordan Brand's VP of Design Martin Lotti, embarked on the meticulous process of designing and creating the shoes, with materials they

"haven't used before" And launched the special “AJ1 Dior” made entirely in Italy in a combination of white leather and Dior gray, with the Swoosh logo and hand-painted edges "Air Dior" has also been applied to Jordan's familiar Wings logo

III/ Marketing environment analysis:

Nike's micro and macro environment

-Suppliers: Nike must build and maintain good relationships with suppliers to ensure stable supply and product quality At the same time, the company must also ensure that suppliers comply with standards and regulations on occupational safety and environmental protection

-Competitors: Nike goes up against many competitors in the sports and footwear industry, including Adidas, Puma, Under Armor, and many more All these brands have to compete fiercely in product design and customer acquisition

-Customers: Nike targets a wide range of customers, from professional athletes to everyday consumers However, the consumer market increasingly demands personalization, convenience, and added value, so Nike must meet these requirements to retain customers

-Supply Chain Management: Nike needs to manage a complex supply chain This requires close coordination with Nike suppliers and partners, tracking and controlling production and shipping to ensure product availability and quality

Macro environment:

consumption, and strategy Factors such as exchange rate fluctuations, economic growth, consumer income, and market volatility can have a major impact on Nike's revenue and profits

-Culture, society: Nike is a global company and operates in many international markets They face different cultural diversity and market power This requires Nike to understand and respect the cultural factors of each market, creating marketing and product development strategies tailored to the needs of each market

-Policies and regulations: Nike must comply with the regulations and policies of the countries and regions in which they operate This includes advertising regulations, labor regulations, and environmental protection regulations Changes in policies and regulations may require Nike to adapt its manufacturing and business processes

-Technology: Advances in technology can affect manufacturing, so Nike must keep up with new technology trends to improve business efficiency and create groundbreaking products and services Here is the technology that Nike is using:

Using 3D printing technology: with 3D printing, Nike technology will optimize performance With this technology, Nike can create precise layers of fabric with distinctive textures and textures The fabric layers can be optimized to provide durability, friction, and elasticity to the shoe to create comfort for the user This improves performance and increases user experience

Besides, 3D printing technology also saves more time and costs compared to traditional manufacturing methods The 3D printing process takes only a few days or even hours, which saves a

to some weeks.

-Developing online shopping channels: developing online shopping channels that allow Nike to reach customers around the world Anyone can access the Nike website and app to shop Online shopping brings convenience and flexibility to customers They can browse Nike's product catalog, compare prices and quality, and order and pay quickly and easily

IV/ Target customers and Positioning

1 Consumer behavior.

Why do young people like sneakers?

-Upon receiving this question, many people will surely have the answer "Because I like it" or

"Because I feel beautiful" There are many reasons for people to buy themselves a pair of sneakers In addition to the uses of shoes for our feet, it is also fashionable, diverse with designs, eye-catching designs, and color schemes, or are manufactured by famous brands It could also be from some love for sneakers that can't be explained Along with the strong development of today's sporty trend, sneakers are an indispensable accessory in our collection of fashionistas Along with a healthy, trendy appearance, sneakers ensure the most comfortable, comfortable, and confidence for the wearer

-Ten years ago, it was unthinkable for someone to spend $10,000 just to own a pair of sneakers Now, however, it's possible Statistics from consulting firm Bain & Co show that while sales in the handbag category only increased by 7%, in the global sneaker category, the figure reached 3.5 billion euros (up 10%) in 2018

-In recent years, sneakers can be considered the most popular fashion trend and it is on the verge of strong development along with the rise of Gen Z – a group of dynamic, young customers who like creativity and breakthrough Therefore, brands are increasingly innovating in designs to attract more young customers Not only that, middle-aged customers also love sneakers because wearing sneakers will make them a few years younger and they feel like they are returning to their youth

Mexican 66 line is associated with the legend of Bruce Lee and also the favorite shoe of British Prince William, the Bata Converse shoe was used by rock legend Kurt Cobain of Nirvana in his final days, Nike's Air Jordan It is still as popular as it was 20 years ago because it once belonged to America's greatest basketball superstar Mike Jordan, and the Adidas Superstar line included in the song My Adidas by the famous rapper DMC This is an immeasurable added value in money, creating extremely unusual values and emotions for buyers– especially loyal fans of brands

2 Customer segmentation.

-The Nike Jordan Dior shoe is a product of sneakers designed by Dior and Nike This shoe is segmented into high-end shoes and has a high selling price The actual price of Jordan Dior shoes depends on many factors such as material, model, size, and especially the uniqueness of the product

-The difference is that the Dior x Air Jordan 1 was only sold in 8,000 units Of these, 5,000 pairs have been prioritized for high-end customers So, to spread out the remaining 3,000 pairs in a fair way, Dior thought of asking users to leave personal information on the pre-order website to conduct a lottery

-That lucky draw helps ensure fairness for all buyers However, in another aspect, that form of issuance also increases the competition of buyers, when everyone expects to be lucky and win the spoils They didn't even wait all day, or wait in long lines before dawn just to hear their names announced

3 Differences

- Dior has made shoes that have attracted the attention of the fashion world now the focus of the entire media thanks to their chance sales style Every move regarding how to own the Dior x Air Jordan 1 was in the news, and the density of information became dense, so the potential customers also increased significantly

on the feet of a series of famous stars and weigh in with the fashion industry Typically, Travis Scott is the most influential and talented male rapper in the hearts of young people's fans Or like "vampire" Robert Pattinson The most outstanding is the photo of Kylie Jenner, the youngest female billionaire in the world showing off her slim figure with a pair of comedies

4 Targeting

- Luxury fashion house Dior's collaboration with Nike in mid-2020 strategically targets Gen Z and Generation Millennium, who are less attracted to Dior's designs However, the combination with Nike – a popular sports fashion brand has created a big bang

- Nike's main goal when partnering with Dior to produce shoes is to create a unique combination of sports and haute couture while enhancing value and capturing customer attention Here are some specific goals Nike can aim for in the process:

- Create unique products: Nike and Dior's main goal when co-manufacturing shoes is to create breakthrough and unique products This can include the use of premium materials, unique designs, and special details to set it apart from conventional products

- Combining sports and fashion: Nike and Dior collaborated to create a unique combination of sports culture and haute couture The goal was to bring contrast and appeal by combining Nike's sporty elements with Dior's style and elegance

- Enhance brand value: By partnering with a prestigious fashion brand like Dior, Nike hopes to strengthen its brand value This combined product is seen as a symbol of the elite and the new in the world of sports and fashion

- Create the effect of creating expectations and expectations: Limiting the number of products and creating rarity is also Nike's goal when partnering with Dior This contributes to creating expectations and expectations on the part of customers, creating interest and appreciation for the value of the product

combination, enhance brand value, and create expectations and expectations from customers.

5 Positioning

-Jordan Dior is a combination of two famous brands, Air Jordan and Dior To position this brand, there were several important factors applied:

- The combination of two brands: Jordan Dior creates a unique combination of sports culture and haute couture This creates a special appeal for customers while affirming the luxury and quality of the product

- Product limits: Jordan Dior creates limited products, contributing to the brand's rarity and uniqueness Product limitations also create expectations and expectations from customers

- Respect for history and values: Jordan Dior creates a fresh combination and retains consistency with the values and history of the two original brands Jordan Dior products often carry elements of celebration and tradition from both Air Jordan and Dior

- Unique Marketing Strategies: Jordan Dior uses unique marketing strategies to attract attention and create expectations For example, the organization of an exclusive product launch event uses celebrities and celebrities to promote the brand

- Premium value: Jordan Dior positions itself as a premium, worthwhile, and unique brand The cost

of Jordan Dior products is usually higher than conventional products of both original brands

Overall, Jordan Dior has positioned itself as a brand that combines sports and haute couture with its rarity and uniqueness, and respects the historical values of both brands

V/ Analysis of the marketing mix

1 Product

product lines, there are usually 3 main product categories: shoes, clothing, accessories and equipment

- The three levels of Nike’s product:

1 Core Customer Value: Nike aims to provide products that help athletes and individuals improve their performance, achieve their fitness goals, and enhance their overall sports experiences This core benefit is centred around inspiring and empowering athletes to push their limits and reach their full potential

2 Actual Product:Nike's shoes are designed with advanced technologies such as responsive cushioning, lightweight materials, and superior traction, all aimed

at enhancing athletic performance Nike's apparel combines functionality with style, offering moisture-wicking fabrics, breathable materials, and ergonomic designs The actual products reflect Nike's commitment to providing high-quality, performance-oriented products that cater to the specific needs of athletes and fitness enthusiasts

3 Augmented Product:Nike offers various augmented services and experiences

to enhance the overall customer value Nike provides customization options, allowing customers to personalise their shoes and apparel They offer online tools and apps for tracking and analysing performance metrics, providing insights and recommendations for improvement Nike also has a strong

creating a sense of belonging and motivation.

- The company is also providing tennis shoes, running shoes, soccer shoes or basketball shoes Besides shoes, Nike also produces sportswear, equipment and tools such as hats, socks and bags In particular, Nike has integrated modern technologies into its product lines to improve product efficiency and customer satisfaction, thereby expanding the market to meet customer needs

2 Price

- Investments in technology make Nike products priced higher than the average However, Nike still implements value-based and premium pricing strategies High-end or exclusive products will be priced significantly higher than the market

- In a value-based pricing strategy, Nike considers consumers' perceptions of a product's value, and this value is used to determine the maximum price a consumer is willing to pay for that product

- As for the Premium pricing strategy, Nike positions itself as a leader in the sportswear industry, so they have priced their products very high to position themselves as a premium brand compared to their competitors By collaborating with influencers or famous sports players like Rafael Nadal, Serena Williams, they have established themselves as a premium brand

3 Place

- Retail store

These retailers are usually controlled by Nike or Vietnam Supersports Vietnam is a Nike retailer These stores are usually located in malls or shopping centers, so they are very accessible to customers

- Nike online store

Most of Nike's branches around the world are provided with online shopping websites, for example in Vietnam it is nike.com/vn/ Customers can visit the website and choose the products they love