group assignment analysis of nikes marketing strategy and 4ps strategy

So we chose this company to analyze why and what marketing strategy they used to maintain the popularity and trust of customers for their products after many years until the end of the y

Group Assignment Analysis of Nike's marketing strategy and

4Ps strategy

Nguyễn Quang

Phượng Hoàng

CS170257

Huỳnh Loan Thảo CS171176

I Introduction

1.1) Why choose the company for analysis?

Nike company is one of the oldest and most famous companies in the world, Nike footwear products are trusted and preferred by everyone So we chose this company to analyze why and what marketing strategy they used to maintain the popularity and trust of customers for their products after many years until the end of the year now

1.2) Company overview

One of the most well-known sports brands in the world is Nike Phil Knight and his coach Bill Bowerman established Nike on January 25, 1964, under the name Blue Ribbon Sport (BRS)

Early in the 1960s, Knight published a page detailing the process used to make low-cost running shoes by Japanese laborers He opted to invest $500 to import the shoes to the

US after discovering that the Japanese company Tiger specialized in the creation of high-quality running shoes In

1972, the business started creating shoes under the Nike name and made outsourcing deals with Asian factories Nike's total revenues were $3 million in 1972; by 1986, they had increased to $1 billion

With 73,100 employees worldwide, Nike's earnings in 2018 were 36.39 billion USD The Nike brand, one of the most valuable in the athletic goods industry, was also assessed at

$29.6 billion in 2017

1.3) History begin

The University of Oregon graduate Phil Knight and his coach, Bill Bowerman, established the startup firm on January 25, 1964, under the name Blue Ribbon Sports (BRS), which later became known as Nike The majority of the business's sales at the time came from Knight's automobile shoes The company started out as a distributor

of the Japanese shoe brand Onitsuka Tiger in the Eugene, Oregon region

Otis Davis, a track and field athlete Bowerman coached at the University of Oregon who later won two gold medals at the 1960 Summer Olympics, said that the first Nike shoe he wore Contrary to an earlier assertion that the shoes were made for Phil Knight, Bowerman made them for him Davis said: I told Tom Brokaw I was the first, Davis said Who cares what billionaires have to say? The first pair of shoes Bill Bowerman built for me People didn't think I was real Actually, I don't like the way the shoe feels when I walk

in it It is overly tight and provides little foot support However, I've witnessed Bowerman making those shoes out

of a waffle iron

1.4) Other products

Since Nike is a well-known and established shoe brand, it offers a wide variety of styles and goods However, it is not practical to sell every shoe, therefore the firm also sells socks, t-shirts, jackets, and sports gear

II) Analysis of Nike marketing strategy according to the 4Ps strategy

2.1) Marketing strategy

Product strategy

The outputs the company offers to the target consumer are listed in this component of the marketing mix The product mix refers to these results Changes in Nike's product mix have contributed to its growth

As an illustration, the company keeps funding R&D to create both improved iterations of current products and brand-new ones

The following major categories represent Nike's product mix:

• Shoes

• Clothes

• Equipment and accessories

Shoes are Nike's most popular product The business gradually added more product lines to this category Example: The company currently offers running shoes, tennis shoes, and shoes for many other sports, including cricket Nike also sells clothing, such as jerseys, shorts, and related products

Distribution strategy

This part of the marketing mix lists the outputs the company provides to the target consumer These outcomes are mentioned in the product mix Nike's expansion has been facilitated by modifications to its product mix

For instance, the business continues to invest in R&D to develop both new and improved versions of its current items The main categories that makeup Nike's product mix are as follows:

• Retail store

• Nike Online Store

• Niketown reseller (company owned)

Retail stores are the most important places where Nike products are sold because they are strategically located and easily accessible to customers These retailers include large companies like Walmart, as well as small local and regional stores

Promotion strategy

This component of the marketing strategy commonly referred to as the marketing communication mix, has to do with the strategies Nike employs to reach its target markets

One of the positives found in Nike's SWOT analysis is that the corporation depends on excellent product advertising to retain a strong brand image

The business employs marketing strategies to connect with and influence its target consumers to purchase the goods Nike's marketing initiatives are listed below in order of importance:

• Advertisement

• Personal sales

• Direct Marketing

• Sales promotions

• Public Relations

One of the main factors in Nike's success in luring customers

is advertising The business depends significantly on advertisements, particularly ones that feature famous people Advertising that is well-received by consumers frequently features professional athletes and sports teams

Personal selling by salespeople who encourage target consumers to purchase the company's products is another promotional component of the company's marketing mix For instance, salespeople at Niketown stores are taught how

to convince clients to buy sneakers Direct engagement with colleges, regional sports teams, and other groups is a part of the company's direct marketing initiatives Direct marketing,

as used in relation to the 4Ps, describes making direct contact with organizations in order to advertise products to their members

Pricing Strategy

The price element in the marketing mix determines the price

a company should charge to maximize profits while capturing the desired market share in the multinational market Nike's investments in technology are tied to its strategy of offering its products at premium prices However,

the company still considers current market conditions to establish its prices and price ranges Based on considerations for this 4P variable, the following pricing strategies are applied in Nike Inc's business

• Value-based pricing strategy

• Special pricing strategy

When using a value-based pricing strategy, Nike considers consumers' perceptions of the value of its products This value is used to determine the maximum price a consumer is willing to pay for a company's athletic shoes, clothing, and equipment

Based on a premium branding strategy, Nike products are of higher quality and value than competing products The company's use of celebrity-related ads is indicative of a premium brand's character

Analysis of Nike's 4Ps marketing strategy

* Product – Product Strategy

Product strategy is an important element of Nike's 4P marketing strategy Nike focuses on adding many different product lines to shoe products – the most popular products to meet consumer needs and match new fashion trends Besides, Nike also invests in integrating new technology and developing many other products

Featured products of the Nike brand include:

Shoes

Nike's most well-liked item is a pair of shoes Numerous customers throughout the world are familiar with and devoted to shoe brands including Nike Air Max, Nike Air Force 1, Nike Zoom Pegasus 33, Nike Air Huarache, Air Jordan 1, and Air Zoom Yorker

One of Nike's signature goods is footwear.

In 2017, the Nike Vaporfly shoe made its debut The Vaporfly line uses a brand-new technological element that can revolutionize long-distance running by cutting running times by up to 4.2%

Nike's Zoom X replaces the Pebax foam portion of the sole

A full-length carbon fiber sheet that is intended to be lighter and more porous than typical running shoes is located in the center of the Zoom X plate

Equipment and sports equipment

In addition to shoes, Nike also produces various sportswear and accessories including jerseys, shorts, basketball shoes, flats, etc., that are appropriate for a variety of sports like basketball, football, tennis, ice hockey, and more

Nike increases sales of sporting goods, gear, and accessories Nike Fashion

The Nike brand, known for its sportswear, duffle coats, baseball caps, and other accessories, has a distinctive V-shaped emblem that is particularly beloved by young people

In the 2000s, young people in the US and Europe swiftly adopted the trend of wearing bomber jackets, crop tops, and sports pants together Particularly well-liked and ideal for cycling and running are Nike Tiempo unisex shorts

Price – Pricing Strategy

Nike products have higher prices than the industry standard due to technical investments Given the state of the industry, Nike continues to use value-based pricing and premium pricing tactics Exclusive or high-end goods will have prices that are far above those of the general public

In a value-based pricing strategy, Nike takes into account customers' opinions of a product's value and uses this value

to calculate the highest price a customer will pay for it In order to maximize profit and highlight high value in product

promotion and presentation, Nike's 4P marketing strategy is successfully applied against price strategy

Place – Distribution strategy

Nike sells its products through many different distribution channels In the US, Nike sells its products to 20,000 retail accounts For the international market, Nike has signed contracts with more than 700 stores around the world and offices located in 45 countries outside the US Nike implements a distribution strategy in the locations where the company's products are sold:

Distribution Center

Nike owns 17 distribution centers, including 3 in the US The remaining centers are distributed in some parts of the world such as Japan, and Belgium

Nike's Memphis Distribution Center

Retail store

Retail stores such as Walmart, Target, and local retail stores help Nike reach a wide range of customers around the world This is where customers can choose the products they love and have a 20-60% discount

Nike Town

Nike Town is a collection of stores owned by Nike that specializes in bulk stocking the latest products and is not usually available in stores Nike Town has a separate area for each sports group, introducing new products and

entertainment, studios, and photo galleries of famous sports athletes

Nike retail store

This is the largest number of Nike stores in the world, these stores often sell official Nike prices and are under the direct control of Nike The elements of product, service quality and customer care are all guaranteed according to the standards set by Nike

Nike.com

Nike branches around the world are mostly provided with internet shopping websites Customers can visit the website and choose the products they love instead of going to the store This has brought convenience and time-saving

shopping for Nike customers

Promotion – Promotion Strategy

Nike implements promotional tactics to communicate to the target audience about the product and thereby convince them

to buy Nike stands out for its promotional communication strategies such as emotional branding, using celebrity

images, distributing on multiple social media channels, and creating inspirational ads

Emotional Branding Strategy:

Emotion Branding is the use of needs, inspiration or emotional state of customers to build a brand, making customers feel connected, loved and desired to own and accompany the brand

Nike applies this technique very well in marketing

campaigns, they do not focus on promoting products, but mainly convey to customers the spirit of the brand Using the motif of the story of the heroes winning the enemy, but made new by Nike when focusing on each person's own enemies such as laziness, fear, etc

Nike's ads convey to customers the message "go ahead, keep trying", praising hard work and celebrating great victories, including laziness in each child People Not only impacting athletes, Nike ads have impacted everyone because the desire to be great is what everyone wants to achieve

Strategies for using celebrity images:

The strategy of using celebrity images is a strategy used by many big brands because customers often trust the products used by the stars - the people they are fans of

Nike has signed many famous athletes in many different sports such as Brazilian football players (Ronaldo,

Ronaldinho, Roberto Carlos), Jermaine O'Neal, LeBron James for basketball, Lance Armstrong bicycle

Distribution strategy on multiple social media channels

Nike uses a variety of social networking sites to interact directly with customers The smooth coordination between

social media channels has helped Nike conquer a wide range

of customers with different interests and behaviors

• Facebook: Nike separates Facebook pages for product categories and regularly updates images and videos of Nike-sponsored athletes

• Instagram: An Instagram account with images and artistic videos of the most popular products has helped Nike gain a huge following of 79.5 million people On Instagram, Nike also posts the most natural images of users using the product, bringing closeness and intimacy to customers

• Twitter: Like Facebook, Nike also separates Twitter

accounts for small brands Focusing on answering questions about products, product information, and customer service, Nike receives positive feedback from its attentive and dedicated care

• Youtube: Nike focuses on promoting promotional videos

and building series to create interactions between customers and brands

The series "Margot vs Lily" revolves around the daily story

of two sisters and cleverly integrates Nike shoes and training equipment and directs customers to Betterforit website - a specialized site providing a lot of information Useful for people interested in improving their fitness journey This Nike video series has attracted a lot of attention from customers

Strategies for creating inspirational ads

Nike ads are always carefully invested with deeply inspirational messages Nike often collaborates with the world's top sports stars to celebrate sports and honor the efforts and dedication to them to achieve that success In the

ads, Nike never talks about its products, but only focuses on inspirational stories and profound messages to customers One of Nike's most successful inspirational ads is "Winner stays on" during the 2014 World Cup season The ad brings images of teenage boys who suddenly become big stars like Ronaldo, Neymar Jr… and garnered 10.7 million views

III Conclusion

Nike's ads are always carefully invested, with deeply

inspirational messages In particular, Nike often collaborates with world-class sports stars, providing an impressive look

at the outstanding skills of these idols In the field of sports fashion, it can be said that Nike is the brand with the best advertising measures

One of Nike's most successful commercials is "Winner stays on" This ad brings up the image of teenage boys suddenly becoming Ronaldo, Neymar Jr., and other soccer superstars

as they fight on the football field That ad was really

successful when marking the Nike sportswear brand with more than 107.8 million views

Thus, it can be seen that combining all four marketing

strategies and the 4Ps mentioned above in a flexible and creative way has helped Nike maintain its position in the hearts of customers for decades Stay tuned for Nike's

upcoming campaigns in the coming years so you can analyze and learn from the spectacular moves of the world's top sportswear brand!

VI References

L ch s ra đ i c a Nike (2022) Retrieved 28 October 2022, from ị ử ờ ủ

https://hungauthentic.vn/lich-su-ra-doi-cua-nike/

Nike – Ngh thu t Marketing c a ng ệ ậ ủ i dẫẫn đẫầu - Phẫần mềầm Qu n lý OOC ườ ả digiiMS (2022) Retrieved 28 October 2022, from https://ooc.vn/nike-nghe-thuat-marketing