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Nike consumer analysis
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EXECUTIVE SUMMARY
Nike, Inc. is a well-known American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and selling of footwear, apparel, equipment, accessories and services.(Nike.com) They are a the trademark of their industry and set the bar for most of their competitors. As many already know, Nike is a major sponsor of the athletic programs across the country. These programs range from small to large Universities.
Nike provides their products and services, for not only student-athletes, but also students, and fans. Many of these schools offer Nike products within their campus bookstores, and stadium shops. The Nike website offers the same products as these bookstores. The only difference is the website also allows the customer to customize their apparel. This limits Nike’s custom apparel service.
¬¬The Nike Custom Kiosk Marketing Plan will solve this issue, with technology that is existent. Nike has an opportunity to utilize their custom apparel service for students that are already apart of Nike’s target audience. The Marketing Plan allows for Nike to expand their custom apparel service to their affiliated universities, by placing custom apparel kiosks in book stores and stadium shops. These Kiosks can be easily accessed by students who seek to customize a wide range of Nike products with school logos, colors, etc. This kiosk will allow any student to purchase from their university bookstore via credit card or for example, Jacket Express card. The products will then be mailed to their on-campus address or home address (whichever the student chooses). This allows students to purchase their products conveniently.
COMPANY OVERVIEW
“The company was founded on J...
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...e interest targeting capabilities alone can justify Nike Custom Kiosk use of Facebook advertising, and engagement. Content that will be posted on this platform will be targeted towards the target audience.
Content will consist of pictures of the endless custom combinations Nike Custom Kiosk has to offer. Also , videos, fan pictures, and Nike-affliated Universities and college collaboration. Using Facebook will allow for this marketing plan to use Nike’s existing presence. It will also utilize its University and college team presence to further create a new following. The real estate of this platform allows for fan and follower engagement. This will allow the plan to achieve its goals and spread the buzz about the new service/product. Although hashtags aren’t popular for Facebook integration across other platforms will be useful for promotion and advertisement.
Mega brands like Nike have been described as mediums for of globalization and technology for years. Nike being a flexible brand, elevated to the next level. The end results for Nike was innovating ad campaigns, superstars like basketball legend Michael Jordan, expansion of mega stores such as Nike Town, and Nike World campus. The Nike swoosh is meanwhile believed to be the most recognizable brand icon or corporate logo, conveying "Nike" without the need of words. The swoosh was designed by a university student attending a class taught by Nike CEO Phil Knight. (Amran et al., 2014).
The purpose of a campaign is to deliver a prospective consumer to the point of sale. Nike uses what is classified as a product oriented advertising campaign. Nike’s entire campaign is centered on convincing the consumer to purchase their product. The goal of most product campaigns is to educate and prepare the consumer to exhibit purchasing behavior, so that their company may become the leader in its market. Since Nike is already the leading athletic apparel company, their goal is probably to stay on top. Some of the major strategies used to achieve this goal are the use of television, magazine, and Internet advertisements.
Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.
Nike is a worldwide known business that many people around the globe are attracted to purchase. They make a variety of products ranging from shoes and clothes to sports gear, sports products, and many different accessories. Nike is designed for everyone ranging from infants to elderly. Because of their range of age for products, this makes them a huge competitor. Being able to appeal to all ages and styles of people.
Nike’s goal is to remain unique and different from others in terms of the items offered on the market. Arguably, Nike belongs to a monopolistically competitive market as there only a few organizations with the ability to regulate the amount charged for their product which means they cannot make their prices high as this is likely to make customers move on to other available choices (Nike, Inc., 2012). However, Nike can find a balance between the prices to charge for their products and remaining competitive with other companies in the industry. Nike has formed a distinction between the appearance and performance of their footwear and that of their competitors. Although products are differentiated from other companies, they still influence each other because they are items of the same
Consumers must be aware of the changes that might occur in Nike through media and social awareness
Nike Incorporated is the number one leading sportswear and equipment provider in the world. They manufacture anything from casual clothes to sports equipment, shoes to socks, and basketballs to golf balls. As a result of its massive success, Nike employs nearly 30,000 people worldwide while manufacturing in 700 shops around the globe and has 45 offices outside the United States. Its extensive reach into the global market has Nike producing more exclusive products than any other manufacturer in the world. Nike’s headquarters is located in the metropolitan area of Portland, Oregon.
Nike is one of the biggest footwear and apparel manufacturing companies in the word. The company came into existence in 1964 by Bill Boweman and Phil Knight and named it as the Blue Ribbon Sports. The company changed the name to Nike, which is Greek word meaning victory, in 1972 after producing a good brand of shoes that became popular among the athletes (NIKE, Inc., 2001). Since then, the company has been successful, dominating the world market of athletic shoes. The company’s products are sold in more than 170 countries across the world. The company also sponsors various sports events at national and international levels. The company slogan “just do it” is catchy and attract many people tom buying its products. This makes the company to grow continuously due to wide and stable customer base.
Many global companies like Nike, Inc. are seen as role models both in the market place as well as in society in large. That is why they are expected to act responsibly in their dealings with humanity and the natural world. Nike benefits from the global sourcing opportunities, therefore areas such as production and logistics have been outsourced to partner companies in low-wage countries like China, Vietnam, Indonesia and Thailand. As a result the company is limited nowadays to its core competencies of Design and Marketing.
The marketing goals are: Increase customer retention, Increase eCommerce Sales, Increase our Community Involvement. The first goal specifically works towards reaching 60% repeat sales through different promotional strategies like emotional marketing and sponsoring different professional athletes. Customer retention is extremely important to maintain Nike’s market leader position. Increasing eCommerce is a major focus for Nike. Last year we were able to increase our eCommerce sales by a profitable 51%. Our second goal is to continue this trend by increasing online sales by 50% every year for the next four years. It is our belief that doing so will solidify Nike as a leader in the online athletic market. Nike truly believes that sport can change
It will look at the role of promotions as a consumer product company, offer possible promotional objectives, and consider other promotional methods the Nike Corporation may wish to implement in its quest to remain the market leader.
Nike’s positioning in the market has more of a mass appeal compared to their main competitor Adidas who strive to make products for elite athletes. The positioning strategy for Nike is currently working at a satisfactory level as Nikes global annual sales between 2013-2014 was reported as 27.8 billion (Statista, 2014) compared to Adidas’ 19.95 billion (Statista, 2014). The global market for sports apparel is expected to grow at a compound annual growth rate of 4% between 2012-2019, Nikes compound annual growth rate during 2010-2012 was 12.3% which is an excellent result as the brand’s growth was larger than the market as well as outgrowing Nike’s closest competitors Adidas, Puma and Asics (Forbes,
...fected by print advertising even if they don’t realize it. Nike uses all different forms of advertising to appeal to all audiences.
Nike is the number one innovator in the world in athletic footwear, apparel, equipment, and accessories. This worldwide company operates in an extremely different organizational structure than other companies, such as Reebok and Adidas. Nike operates tremendous marketing strategies and develops inventive designs to inspire athletes around the world. This company is one of the largest suppliers in the world in athletic footwear and apparel, main producer of sports equipment, and making Nike the most valuable brand among sports companies. The task for Nike is to join diversity and inclusion to encourage ideas and innovation. Around the world, this company is a popular brand.
Nike promotes their sportswear in such a way that their communication objective can easily be achieved. Nike uses following way to interact with their current and new customers: