STRATEGIC MARKETING PLAN: NIKE 1

Nike Inc. Strategic Marketing Plan

Nike Inc. Strategic Marketing Plan

Part A: Environmental Analysis and SWOT Analysis

Environmental Analysis and SWOT Analysis

About Nike Inc

Nike is a large company in the United States dealing with design, development, manufacturing, marketing in accessories, footwear, equipment, apparel, and services. Nike is an American multinational corporation whose headquarter is in Portland, Oregon. According to a report issued by Forbes news in 2015, Nike is the top leading supplier and manufacturer of sports apparel with over 50 billion dollars in revenue. The company has more than 1.5 million employees worldwide (Hitt, Ireland & Hoskisson, 2020). The company's brand is worth 30 billion dollars, making it one of the most valuable sports business brands. IN 2018, he company was ranked 89TH in the Fortune 500 list. The company's success is linked to its mission and vision and its strategic approach to globalization and technology in its operations. This paper aims at developing a strategic marketing plan for Nike Inc.

The corporate vision statement represents the company's position as the leading supplier of sports apparel globally. The company objectives and purpose in business are well explained through its vision statement. The company's corporate vision is to provide a picture of the future target conditions of the business. The company's vision mainly focuses on strengthening the company's brand. Nike strengthens its brand by advocating for leadership in the international market while counteracting competition (Henderson, Locke & Lyddy, 2009). The company's vision also propels its strategic management to develop policies to ensure competitiveness against its rivals, such as Gucci, Adidas, Puma, Under Amour, and ASICS. Nike's vision is built on three pillars: authentic, connected, and distinctive. The company's vision is to remain the most unique, connected, and trustworthy brand.

The vision statement's genuine components show that the company focuses on making its products deliver high performance to its consumers. The second pillar, "connected," indicates that the company is focused on connecting its customers to its products. The last component, "distinct," shows that the company is focused on delivering high-quality products.

The company's mission statement prompts the business to meet and exceed the expectations of athletes. The mission statement of Nike Inc. guides it for the evolution of its business. Implementing the company's mission helps it support its market position as the leading producer of athletic apparel. Nike's mission brings inspiration and innovation to every athlete in the world. The company claims in its mission statement that everyone is an athlete provided that they have a body. The company's mission's main components include "inspiration, innovation, and every athlete in the world (Walker & Yemer, 2002)." the company is focused on informing its customers to develop the mindset of a winner through its inspiration component. The company's slogan is straightforward. It states, "Just do it." Besides, the company is also focusing on using technology and innovation to ensure high quality and affordability. Finally, the company targets every customer globally through its mission of "every athlete in the world."

Environmental Analysis

Many external and internal factors influence the growth and success of an organization. Many organizations collapse due to these forces' negative influences, while others thrive due to the establishment of strategic measures towards these forces, thus enabling them to remain competitive. Nike has that have continued to stay competitive despite its strong competing forces in the market segment. The analysis of the company's general environment and the competing forces are among the strategies that the company has adopted to remain competitive.

Competitive Forces

The five forces of competition include competition rivalry, buyers' bargaining power, bargaining power of buyers, new entry threat, bargaining power of suppliers, and threats of substitute products. The two forces of competing which are significant to Nike include competing rivalry and threats of new entrants.

Competitive rivalry

The following are the critical company rivals: Puma, Adidas, Gucci, Under Amour, and ASICS. These companies are well established in the market, and they also control more revenue by occupying a large market share. These companies limit the company's full exploitation of the market. However, through technological innovation, Nike has modified its products, which suits most of its customers, thereby making it continue thriving alongside these competing forces (Paine, Hsieh & Adamsons, 2013). Nike has also improved its customer service by providing excellent services by hiring skilled employees, making it competitive against its competitors.

Threats of new entry

Several companies are venturing into the sports and apparel industry in the U.S.; however, these companies are associated with many operational costs challenges as the business requires a high level of investment capital. This makes the industry to be unbreakable by other companies. Therefore, the few companies stand a better chance of enjoying good returns since there is no stiff competition as there is less pressure by other companies in lowering prices. Apart from the high cost of entry, strict government regulations discourage other investors from venturing into this business.

Economic forces

The economic factors that affect the condition include tax rate, variation in the price of substitute goods, bargaining power of suppliers, forces of demand and supply inflation, the severity of working conditions, and skills required to complete the task. The company outsources employees as a way to promote diversity and enhance the skills of employees. Ensuring gender and racial diversity in the workplace brings together employees of different talents (Paine, Hsieh & Adamsons, 2013). The challenges that the company experience are the high cost of training and diverse employees. The economic recession also contributes to inflation. This affects the company's profit margin and thereby influencing its growth. When there is an economic recession, the company suffers from suppliers' high bargaining power, making the company spend much money.

Political forces

Nike experiences challenges of entry into international markets in some countries, especially those who experience civil war or are characterized by terrorist attacks. Countries like Saudi Arabia, Somalia, Sudan, and Syria have been a hard nut to crack for the company since they are experiencing constant civil war, leading to political instability. Besides, the company also suffers from high taxes imposed by some countries, unclear legislative practices, and entry barriers, thereby making its operations in some countries to be compromised.

 Social forces

Nike's social forces are beliefs, values, principles, ethnicity, tradition, religion, and culture. Socio-cultural factors are essential in developing the company's robust organizational behavior. The company works towards meeting the government requirements for gender diversity art workplaces though there are more challenges associated with outsourcing human resources.

Current target market

The following are the people the product was designed for local and international sports organizations, sports clubs, construction companies, households, individuals, religious organizations, hotels and restaurants, and the government.

Current market

Nike currently controls 30 percent of the sports and apparel industry. The company is well established and operates in over 500 countries globally and has existed for more than 100 years. The company has over 15000 employees, and it has a stock worth 20 billion. A more significant percentage of the company's market is Americans, followed by Europe and Africa (Paine, Hsieh & Adamsons, 2013). The company currently explores the Asian market, and it has become popular in countries like China, Russia, and Japan.

Men's Converse Brand total sales from 500 stores internationally for 2018

Continent

Months jan feb mar apr may june july aug sep oct nov dec

Sales ($ “000” million)

Europe 2.1 1.3 1.8 0.9 1.2 1.5 1.9 2.2 2.3 1.9 1.8 2.7

Africa 1.6 2.0 1.7 1.9 0.7 0.9 0.8 1.1 1.8 1.5 1.2 1.3 America 2.1 1.9 1.8 1.5 1.5 1.6 1.7 1.7 1.8 1.4 2.1 2.0

Asia 1.1 0.7 0.9 0.6 0.5 1.0 1.2 1.1 0.9 0.8 1.2 0.8

Total sales 6.9 5.9 6.2 4.9 3.9 5 5.6 6.1 6.8 5.6 6.3 6.8

Total annual sales 2018: $7 Billion

Strengths

Nike uses innovative technology, product diversity, strong brand recognition, and eco-friendly products. With innovation, the company has shown that it is exceptional in sport and apparel. Nike has continued to strive to meet the changing needs of the current market. The company diversified its products by offering a broad range of products that satisfy its customers' needs (Paine, Hsieh & Adamsons, 2013). The company also has an advanced market network. To continue existing and become more powerful, the company should embrace research and development. The brand name is currently famous in America and Europe. However, the company has expanded to Asia and Africa. Nike is leading in selling high-quality eco-friendly products because it puts more emphasis on its customer needs.

Weakness

           Nike's weaknesses include reinvestment of the company revenue, high debts, dealership regulation, limited factories, low affordability, and stiff competition. Nike continues to expand its market area to gain plight against more established companies such as Adidas and Gucci. The company is also addressing challenges that it is experiencing in an attempt to expand its market. These challenges include limited production facilities and resources.

Opportunities 

           Nike has the following openings for future expansion and growth: lower-priced products, strong brand recognition, increased demand for sportswear and apparel, and increased environmental concerns. To gain potential customers' trust in its quest for international expansion, it must introduce some new and catchy ideas into the sports and apparel industry, such as high quality and easy to make products.

Threats 

The following are the threats of Nike. They include resistance to change and more reliable and more experienced companies. A consistent increase in the price of raw materials for manufacturing purposes is a significant challenge. There is also a substantial risk of substitute products. The use of technology may facilitate the duplication of products. The company product line is innovative. However, without patents, it may lead to replication.

Strengths to Opportunities & Converting Weaknesses and Threats

Nike regularly engages other professionals in this area of specialization to seek enough critical information to identify its weaknesses and strengths to compete favorably in the market. The main organizational advantages rest on the power of its workforce. The company has a team that consists of highly qualified consultants and subordinate staff ready to take the company beyond the limits and make them obtain what they require (Schipper & Bojé, 2008). The team is skilled and trained to listen and pay attention to customers' concerns and deliver excellent services. The company is also well-positioned, which gives the company the advantage of attracting many customers at a quicker rate. Despite these strengths, the company has also recorded some weaknesses resulting from a lack of enough funds to market the company and make it get the publicity it deserves. Despite the company being the first mover, other brands such as Puma, Gucci, and Adidas have gained popularity and are today highly preferred over the company's products.

Marketing Objectives

· Increase in sales margin by 125 percent every year

· To control a more significant market share through expanding its customer segment

· To make customers perceive its products positively in terms of the product line as a way of creating a competitive advantage against its competitors

· Gain brand recognition

· Launch new products and services

· Strengthen customer relationships

Part B: Marketing Data Analysis

Internal Data

· Evaluate internal sources of information available to you inside the organization and what information you will receive from each source. Identify 3-6 sources of internal data. Insert or remove rows as needed.

Secondary Data

· Evaluate secondary data sources and the specific information you need from each source. Insert or remove rows as needed.

Primary Data

· Evaluate primary data needs to create and evaluate the marketing plan. Insert or remove rows as needed.

· Establish customer touchpoints and develop appropriate CRM events for customer acquisition, retention, and profitability. Insert or remove rows as needed.

References

Henderson, R., Locke, R. M., & Lyddy, C. (2009). Nike considered: Getting traction on sustainability.

Hitt, Ireland, & Hoskisson. 2020. Strategic management: Concepts and cases: Competitiveness and globalization (13th ed.). Mason, OH: South-Western Cengage Learning

Mahdi, H. A. A., Abbas, M., Mazar, T. I., & George, S. (2015). A Comparative Analysis of Strategies and Business Models of Nike, Inc. and Adidas Group with special reference to Competitive Advantage in the context of a Dynamic and Competitive Environment. International Journal of Business Management and Economic Research, 6(3), 167-177.

Paine, L. S., Hsieh, N. H., & Adamsons, L. (2013). Governance and sustainability at Nike (A).

Schipper, F., & Bojé, D. M. (2008). 22 Transparency, integrity and openness: the Nike example. Handbook of research on global corporate citizenship, 501.

Walker, C., & Yemer, H. (2002) NIKE INC. BUSINESS STRATEGIES 8.

New Target Markets

Determine any new markets for your strategy and describe how you will provide value to each target market.

Marketing Mix for New Target Markets

Determine adaptions for each new target market.

· Products

· Price

· Distribution

· Traditional Promotion

· Online Promotion

Marketing Implementation

Create the implementation for your marketing plan. Describe how you will organize and implement the plan, such as whether it will be organized by market, geography, and who is responsible for marketing decisions.

Marketing Communication Channels

Evaluate the marketing communication channels you will use to reach selected audiences. Include Internet and traditional communication channels to convey key messages. Describe the advantages and disadvantages of each channel you select. Insert or remove rows as needed.

Strategic Actions

Develop specific activities required to implement the marketing plan. Identify the person or role who will be responsible for each action, when it will be complete, and what standard or metric indicate that the activity is complete. Insert or remove rows as needed.

Monitoring

Develop the measurement to identify how you know you have been successful for each strategic action. Specify the measures to track performance against goals. Identify standard reports from your online and traditional marketing efforts. Insert or remove rows as needed.