group assignment topic nike

Nike markets its products under its own brand, as do Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air Force 1, Nike Dunk, Air Max, Foamposite, Nike Skateboarding, Nike CR7, and

FPT UNIVERSITY- CAMPUS HO CHI MINH

Thành phố Hồ Chí Minh, 23/03/2023

1 Introduction 3

2 Marketing Environment Scanning2.1 Microenvironment 4

2.2 Macro environment 2.3 Nike's Customer Understanding

3 SWOT analysis and TOWs matrix 7

3.1 Summarise marketing environment 3.2 Marketing Objective and Marketing Plan4 Target consumers 8

5 Differentiation and positioning 9

6 Marketing Objectives 11

7 Marketing Plan 12

8 Reference list 13

ASSIGNMENT: GROUP RESEARCH REPORT

cNike, Inc is an American multinational corporation engaged in the design, development, manufacturing, marketing, and worldwide sale of footwear, apparel, equipment, accessories, and services The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area It is the world's largest supplier of athletic shoes and apparel, as well as a major manufacturer of sports equipment, with sales exceeding US$46 billion in fiscal 2022.

The company was founded on January 25, 1964 by Bill Bowerman and Phil Knight as "Blue Ribbon Sports", and officially became Nike, Inc on May 30, 1971 The company took its name from Nike, the Greek goddess of victory Nike markets its products under its own brand, as do Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air Force 1, Nike Dunk, Air Max, Foamposite, Nike Skateboarding, Nike CR7, and companies children include Jordan Brand and Converse Nike also owned Bauer Hockey from 1995 to 2008 and previously owned Cole Haan, Umbro and Hurley International In addition to manufacturing sportswear and equipment, the company also operates retail stores under the Niketown name Nike sponsors many famous athletes and sports teams around the world, with the famous "Just Do It" trademark and Swoosh logo.

As of 2020, the company employs 76,700 people worldwide In 2020, the brand alone was valued at more than $32 billion, making it the most valuable brand among sports businesses Previously, in 2017, the Nike brand was valued at $29.6 billion Nike ranked 89th in the list of Fortune 500 largest US corporations in 2018 by total revenue.

We apply learned concepts to better understand our customers, identifying and analyzing Nike's current marketing performance, such as customer-driven marketing strategies and marketing mix.

2)Marketing Environment Scanning

2.1) Microenvironment

2.1.1) Economic environment

The rate of increase and decrease in real income, savings accumulation, debt usage and consumer spending patterns has changed The overall economic environment is developing slowly Consumer confidence declines, purchasing power decreases .Barriers to entry into the EU.[2]

2.1.22 Technological environment

Nike uses its marketing information system very effectively by applying its economic market information system, using segmentation and differentiation strategies to mostof its business areas

2.1.3) Cultural and social environment

People today are more and more aware of their health, diet and health are increasingly concerned Hence more and more people join fitness clubs That leads to the need to use accompanying fitness products, especially sportswear, shoes and equipment Nike is one of the leading companies in detecting this need as people are looking for sports shoes

2.2.1) Analyse existing competitors in the industry

Direct competitor: Adidas It can be said that Nike and Adidas compete on every percentage of market share in terms of sales, even in percentage of brand strength index Not only that, Nike and Adidas also compete strongly and extremely fiercely interms of talent attached to the brand For example, in the field of football, if Nike owns Christian Ronaldo, then Adidas also has Lionel Messi Or Adidas signs a contract with national teams like Germany, Spain, Argentina, etc., then Nike is no less competitive Brazil, France, Netherlands,… This is a big challenge for Nike.[3]

2.2.2) Potential rivals

The competitive pressure of potential competitors is very low, even non-existent due to high input costs, the market for sports shoes is saturated and there is already unique product differentiation.

Nike has agreements with many factories because Nike does not have its own factory Nike will refuse to order if the manufacturer does not show a cooperative attitude in the selection process Nike has 3 leather suppliers and is available from refuse to import goods if one of these suppliers does not meet Nike's requirements Nike's main suppliers are located in 10 countries: China, Indonesia, Vietnam, Thailand, India, Turkey, Morocco , Mexico, Honduras, and Brazil Nike signed production contracts with factories in over 40 countries.

2.3) Nike's Customer Understanding

Nike not only owns 48% of the athletic shoe market in the US, but the share of basketball sneakers also climbs to 96%.

To be able to gain a strong foothold in the eyes of consumers for decades, there are certainly very "top" marketing strategies behind them Let's find out what those marketing strategies are.

●Emotional branding

●Use pictures of famous people●Distributing on various social networks●Inspirational advertising

3.1) Summarise marketing environment

Strength: According to what our team surveyed, Nike has strong Brand Awareness and Brand Value This is one of the most recognizable brands in the world as its name alone is memorable, easy to pronounce, and very unique Most customers choose to buy Nike products because of the quality of the product and the brand's reputation.

Threat: There are many other big manipulative brands with lower popularity, but the product quality and reasonable price are not inferior to Nike.

3.2) Marketing Objective and Marketing Plan:

Nike needs to take advantage of its existing position to promote advertising campaigns based on brand strength and customer trust In addition, appropriate strategies are needed to compete with potential competitors.

According to what our team surveyed, Nike's main customer base based on the survey is mostly young customers, students and athletes They use Nike shoes for sports and fashion purposes.

Buyer’s characteristics:

Gender: Nike's target audience includes both Men and Women

Geographical location: Nike's target customers live in urban areas, concentrated in

2 big cities (HCMC and Hanoi)

Age: Nike's target customers focus on Youth (18-24 years old) and Mature (25-35

years old).

Income: Nike's target audience belongs to the A-Class income group (15 – 150 million VND or more).

Family Life Cycle: Nike's target audience is focused on young singles.

Education: Nike's target audience is concentrated in the College group; University.

Attitude: Nike's target audience likes to be active, travel a lot, explore and experiencenew things.

Live behaviour: Nike's target audience is often travelling, playing, exercising and

experiencing challenges and sports.

Where to shop: Nike's target audience often buys online or experiences it at

brick-and-mortar stores.

Shopping Occasions: Nike's target audience often buys on Special Occasions (Tet,

Holiday, Opening Ceremony, etc.).

Usage behaviour: Nike's target audience usually buys 2-3 times a year.

Psychology: Nike's target customers focus on 2 groups of carefree, happy, relaxed

personalities and Brave, dynamic and independent personality groups.

5)Differentiation and positioning

Differentiation: For the business-level strategies, it is arguable that Nike applies

something close to the differentiation strategy.

Nike’s business model is primarily founded on this strategy, may it be investment on

technology or production.

This has ensured that different sets of customers are brought on board This strategyis realised through:

Innovation and new technology

Technology has been the foundation of the business strategy of Nike.Innovation is one of Nike’s success factors.It has ensured that the firm remains ahead of the curvewhen it comes to new products.

Diversification

This is one of the most characteristic business strategies of Nike.

It is the foundation of its differentiation strategy Note that despite its insistence on quality products, the firm has managed to offer products to almost everyone.In addition, Nike ventures into casual clothing and accessories like jeans, shirts, jackets, hats, socks, backpacks, watches, purses, sunglasses, wallets, purses, belts,scarves, hair bands, etc.

Further diversification is seen in its ownership of the Converse, Hurley, and Jordan brands.[7]

Positioning Map:

Value Positioning:

The price of Nike products is higher than the other brands which represents the high

quality of their products On average, the cost of Nike's shoes is

around 3 or 4 million VND while the lowest average price is Adidas NEO, just about 1, 5 million VND (Sony 2014) However, the other five brands are just slightly lower than Nike’s shoes Hence, it can be seen that Nike uses the "more and more" strategy To be more specific, the potential customers willing to spend more money tobuy the more distinctive products including the distinguish features or the durable characteristic[8]

Competitor:Nike vs Adidas

The Nike vs Adidas story has a lot to say about both companies' branding

strategies, from how they market against each other to their individual marketing campaigns.

The "Nike vs Adidas" logo debate is one of the most hotly contested today One of

the things that set Nike and Adidas apart from other brands is how well they create logos that can be easily adapted for each use.

-Nike’s “Just do it” is one of the most famous taglines of all time-Adidas came up with the "Impossible Is Nothing" slogan.Marketing Strategies:

-Nike’s marketing strategy is all about connecting with the consumers on an emotional level Nike's brand image has always been inspirational, motivational, and innovative when it comes to sports and fitness.

-Adidas, one of the world's leading athletic and sportswear brands, has been able to grow its brand and stay ahead of the competition because of its marketing strategies.When it comes to marketing its products, Adidas has been known to apply the strategies such as advertising its products in major sporting events.[9]

6) Marketing Objectives

Specific:Nike aims to reach out to users during covid in 2020.

Achievable:Nike has used AI and machine learning technologies to predict and

order the products that will be popular among consumers, and to deliver products faster and more accurately

Relevant:Nike đang fueling a supply chain and technology transformation that will

enable Nike to more directly serve consumers

Time-bound:Nike's earnings report shows that the brand's digital revenue grew 84%

in the quarter through November 30, 2020.[10]

7) Marketing Plan

Nike's Marketing Strategy for Products

For Nike, this is considered a sportswear company that always strives to innovateand improve technology to create, find new materials and designs to "please"consumers Nike's main products are divided into 3 categories:

product line is probably the Air Jordan dedicated to basketball

Nike's Marketing Strategy on Price (Price)

Nike products are identified at a high price, which is consistent with the costs oftechnology, modernizing the production model that Nike has invested in, as well asto match a high brand image level like Nike

Nike's product pricing mechanism is based on:

Value-based pricing strategy: Accordingly, Nike considers consumers' perceptions of the value of its products to consider offering an appropriate price for that product line

Special Pricing Strategies: Premium or exclusive Nike products will often cost more

In Vietnam, a pair of genuine Nike shoes will cost from 1.5 to 2 million VND Theproduct lines with low prices are usually walking shoes, gym shoes, in the highersegment there are football and tennis shoes

And the basketball shoe product lines always have a high price because that is notonly what makes Nike's brand but the materials, technology, and design are allcompleted to the highest level

Nike's Marketing Strategy on Distribution System (Place)

Nike's official distribution channels include:

Retail store: this is the most important place, often located in a strategic location and the place where the most customers can be reached Nike now has more than 1,000retail stores around the world

Online sales: During the pandemic, Nike's online sales pages have been effective and this will definitely be a sales channel that the company will invest in in the near future

Niketown Distribution System: This is not only a point of sale business, but also a place to build brand love, a tourist attraction In which NikeTown London is the largest store in the world There, not only the latest Nike products are on display, but Nike's history, stories, and journeys will also be on display for visitors

Previously, Nike also distributed its products through retail partners However, Nike isgradually eliminating those partners to focus on selling at its website and genuine stores The most notable incident is that Nike has terminated its sales contract on Amazon since 2019

Nike's Marketing Strategy on Promotion Mix

Nike implements promotional tactics to communicate to the target audience aboutthe product, and then convince customers to buy.

Nike stands out with promotional communication strategies such as emotionalmarketing strategies, using celebrity images, various social media promotions, andinspirational ads

Advertising is always the part that Nike invests the most The company sponsors many top athletes, clubs and high school, university and local clubs to create a wide coverage.With the use of celebrities, Nike always works with the best athletes in the sport they represent, for example: Cristiano Ronaldo (soccer), LeBron James (basketball), Rafael Nadal (pants) racket) or famous football clubs such as Barcelona(Spain), Chelsea (England), Paris Saint-Germain (France)

Nike tested it successfully and now the business has become one of the largest social networking businesses in the world, surpassing Google, Instagram or Pinterest Nike has 35 million Facebook likes, 8.9 million Twitter followers, and over 191 million Instagram followers

So, every time the World Cup or EURO starts, we are no stranger to the races for team sponsorship, Nike jerseys or shoes with rivals like adidas or Puma [11]Each element can be implemented independently, but in practice they often depend on each other Specifically, the marketing mix includes the following elements:

Product (Product)

Product is the most important element in the marketing mix strategy Product is understood as an item or service that is designed and manufactured to satisfy the needs and wants of customers To effectively market a product or service to consumers, the most important thing is to determine what differentiates that product/service from other competing products/services in the market.

Price (Price)

Price is an indispensable element in the marketing mix strategy Selling price reflects