Describe the business you are designing the plan for. Include the mission statement, vision statement, product line description, and business information (such as the size of the business).
The first part of developing a strategic marketing plan is analyzing the forces that affect the business’s marketing efforts.
Important:
During this week you will be working on the SWOT analysis. Nowadays, marketing managers add a second T to the analysis, which stands for Trend. For the SWOTT analysis assignment, I want you to add that second T. I will be sending you (as a private message) additional information about the SWOTT analysis (with examples) so that you can use it as a reference.
Submit your completed Wk 2 – Part A: Environmental Analysis and SWOT Analysis section of the Strategic Marketing Plan Template.
Only complete the highlighted sections by replacing with the correct information on Week 2 Strategic Marketing Plan Templete.
Requirements: 1 page
Strategic Marketing Plan Template
Use the business you selected in Week 1 and complete the prompts provided for Parts A, B, and C in the weeks they correspond to. Delete the provided prompts from each section when you finish each part.
Complete the References section as you progress through Parts A, B, and C.
Include your name in the document’s file name when you submit it.
Wk 2 – Part A: Environmental Analysis and SWOT Analysis
Use the information you researched in your Week 1 assignment for the sections they correspond to in this part.
For additional resources that may be helpful with components in Part A, refer to the resources provided on the page.
Business Description
Describe the business you are designing the plan for. Include the mission statement, vision statement, product line description, and business information (such as the size of the business).
Environmental Analysis
Analyze the forces that affect the business and marketing efforts.
Competitive Forces
Analyze the business’s key competitors. You may choose to use a BCG matrix or attribute checklist to compare your selected business against its competitors. Describe any strategic moves the competition has recently made. Estimate the business’s market share. Identify key competitive advantages against your selected business’s competitors.
Economic Forces
Analyze the economic environment in the areas affecting your selected business. Consider differences within their industry and the economic impact on suppliers.
Political Forces
Analyze relevant political forces. Examples may include an election year or a law to drastically reduce or eliminate plastic waste in a county that would affect your selected business.
Legal, Regulatory, and Ethical Issues
Analyze the legal, regulatory, and ethical issues that may affect your selected business. Considerations may include local laws such as a ban on the use of plastic bags, the ability to post billboards, or a possible increased regulation on direct mail.
Technological Forces
Analyze whether your selected business will be affected by emerging technologies or trends in hardware and software industries.
Social Forces
Analyze social trends and how they may affect your selected business. Considerations may include if the business will be affected by demographic trends or a growing dependence on computers, or whether interest in your product might be affected by growing preferences in the way things are done or changing social values.
Current Target Markets
Define the business’s current target markets. Describe the demographic, geographic region, psychographics, and product usage of these targets.
Current Marketing Tactics
Review their current marketing tactics. Summarize how people find out about the product, how they get information about the product or service, what might be involved in the buying process, and what money is available for marketing. If your selected business is a start-up, describe their competitors’ current marketing.
SWOT Analysis
Assess your selected business’s strengths, weaknesses, opportunities, and threats. Then, evaluate how to address these in your marketing plan.
Strengths
Strong brand recognition: Worldly, Nike brands (Nike, Jordan, and Converse) dominate various sports fields. This recognition has helped the company retain customers and attract top athletes such as Eliud Kipchoge and Michael Jordan. Its association with these legends cements customer loyalty.
Wide market coverage: The Company’s global presence in more than 190 nations has allowed it to take advantage of customer segments and diverse markets (Nike, Inc., 2023b).
Weaknesses
Dependence on Suppliers: Nike relies on suppliers such as Pou Chen, PT Pan Brothers, and Fulgent Sun International (Zhao & Zhou, 2023). During supply chain disruptions, the company becomes vulnerable to slowed production or breakdown of the whole process due to a lack of essential supplies from suppliers facing the disruptions.
Counterfeiting: Counterfeited Nike products have damaged the brand recognition, leading to a loss of customer trust. For instance, ABC News revealed fake Nike shoes worth $5 to $200 on the counterfeit market. Fake Louis Vuitton bags ranged from $5 to $1,500 (Hermawan, 2023).
Opportunities
Digital Transformation: The development of AI and data analytics presents a crucial opportunity for Nike to invest in these digital technologies to improve customer experience and satisfaction. For instance, the company can build an AI-enabled App to solve the challenge of ordering incorrect shoe sizes (Iyer, 2021).
Sustainability: The trend towards a sustainable environment implies that Nike can invest in waste recycling and eco-friendly raw materials that appeal to environmentally conscious customers.
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Threats
Competition: Adidas, Puma, and Reebok present stiff competition for sportswear products. This competition erodes Nike’s market coverage.
Economic Downturn: Economic crises resulting from events such as the COVID-19 outbreak slow down Nike’s progress. The recessions imply limited expenditure on non-basic things such as sportswear.
Trends
Athleisure: Athletic clothing is worn for daily activities. Thus, it continues to gain momentum.
Health and Wellness: Consideration of sports and physical fitness activities (gym) as a way for health enhancement is increasing the demand for Nike’s sportswear. For instance, most gym trainers instruct the members to wear light clothes such as Nike tracksuits and shoes.
Converting Weaknesses and Threats to Strengths & Converting Strengths to Opportunities
Nike can embrace supplier base diversification to improve its negotiating power and eliminate vulnerability to supply chain breakdowns. Likewise, the company can introduce anti-counterfeiting technologies such as QR codes to authenticate its products to win customer trust and loyalty (Chen et al., 2020). In utilizing competition as a strength, the company should invest in product innovation to develop brands that stand out in the market. Primarily, competition should be a motivating factor for innovation. Due to economic downturns, Nike can create its financial reserves during peak periods to provide a cushion in case of economic downturns. This strategy will enable the company to sustain its financial position to support its business operations irrespective of the economic situation. In changing strengths to opportunities, Nike needs to utilize its wide market coverage to expand into untapped markets. Also, the company can rely on its strong brand recognition to innovate and launch new products under the same brand line.
Marketing Objectives
Remain adjusted to sportswear trends in the dynamic market to expand the potential of sportspeople by 15% over the next two years. The success of this objective will be measured by the number of awards a sportsperson has won compared to previous performances.
Leverage the company’s expertise in sportswear to align with the health and wellness trend by Nike’s brands that meet the desire of fitness enthusiasts, aiming for a 5% sales increase over the next 12 months. An increase in sales of active-wear (Nike’s sports shoes and tracksuits) by more than 5% worldwide will imply the objective’s success.
References
Chen, F., Zabalza, J., Murray, P., Marshall, S., Yu, J., & Gupta, N. (2020). Embedded product authentication codes in additive manufactured parts: Imaging and image processing for improved scan ability. Additive manufacturing, 35, 101319.
Hermawan, A. (2023). Pink Shoes Business Practices. Journal of Comprehensive Science (JCS), 2(2), 524-531.
Iyer, L. S. (2021). AI enabled applications towards intelligent transportation. Transportation Engineering, 5, 100083.
Nike, Inc. (2023b). About Us. Nike.
Zhao, Y., & Zhou, H. (2023). Remanufacturing vs. greening: Competitiveness and harmony of sustainable strategies of supply chain under uncertain yield. Computers & Industrial Engineering, 179, 109233.
Nike, Inc. Philip Knight and Bill Bowerman started Nike back in 1964 as Blue Ribbon (Meyer, 2019). The company started as an importer of Japan’s Tiger Company, which is known today as Oasics. It changed its name to Nike in 1971 after a commercial dispute with its Japanese supplier (Meyer, 2019). At that time, Adidas and Puma were the world’s leading brands. The company’s current headquarters are located in Oregon. The company currently operates more than 1,000 brick-and-mortar stores worldwide and online retailing through third party websites and its own ecommerce site (Nike, Inc., 2023a).The company’s success comes hand-in-hand with some of the most controversial athletes including Joe McEnroe and Michael Jordan. Every time they were fined for not complying with sports’ rules, Nike would pay the fine. McEnroe was a great player, famous for swearing during tennis matches, and Michael Jordan disrupted basketball by using colored shoes which was prohibited back in the 1980s (Meyer, 2019). Nike’s support for controversial athletes continues with its support to Collin Kaepernick, but it also supports other world-class athletes like LeBron James and Cristiano Ronaldo. Mission StatementNike’s mission statement is (Nike, Inc., 2023b):“To bring inspiration and innovation to every athlete in the world”.Vision StatementNike’s vision statement is (Nike, Inc., 2023b):“To do everything possible to expand human potential”.
Product Line DescriptionNike sells six main product lines and some of them include sub brands like CR7, which is Cristiano Ronaldo’s brand. Jordan Brand is part of Nike’s portfolio and it is not an independent subsidiary. 1.Nike Basketball2.Jordan Brand3.Football4.Running5.Training6.SportswearBesides Nike’s own branded products, it also owns Converse as a subsidiary. Nike sells apparel, footwear and accessories. It started as a shoe manufacturer, but it currently outsources all its production except for air cushioning components. Most of Nike’s operations are currently focused on research & development, and marketing & distribution (Nike, Inc., 2023a). Business Information, such as the Size of the BusinessNike is currently the largest apparel, footwear and accessories company in the world (CSIMarket, 2023). The company’s total revenues for fiscal year ended Sales by geographic region show that North America represents the company’s largest market: Annual revenues 2023 (in billions of US$)% of annual revenuesNorth America$ 21,60842.2%Europe, Middle East and Africa$ 13,41826.2%China$ 7,24814.2%Asia Pacific and Latin America$ 6,43112.6%Converse$ 2,4274.7%Other$ 850.2%Total $ 51,217100.0%
Current Marketing StrategiesCurrent Target MarketsNike’s leadership in North America is strong with a 21.1% market share followed by Adidas with a 5% market share (CSIMarket, 2023). Nike sells its products to a wide range of consumers with no consumer segment representing more than 10% of the company’s sales. This shows that Nike’s strategy to diversify both its product lines and target markets has been successful. Nike is used by athletes all over the world regardless of gender, by urban consumers that like Nike’s style, by working parents, etc. Current Marketing TacticsThe company’s marketing strategies are based on:Sponsorship of some of the world’s top athletes including Michael Jordan, Cristiano Ronaldo, LeBron James, Naomi Osaka, Rafael Nadal, Kevin Durant, Serena Williams, Megan Rapinoe, etc. Offering innovative designs and application of new technologies.Increasing brand recognition including its iconic swoosh. Nike only sells three brands: Nike, Jordan, and Converse, which limits the company’s ability to price discriminate. On the other hand, Nike differentiates itself by offering innovative technologies. Its sponsorship of world-famous athletes plus its effort to increase brand recognition of its swoosh logo make the company’s products easily identifiable all over the world. According to Interbrand (2023), Nike’s brand is ranked at number 10 of the Best Global Brands list for 2022, which makes it the most valuable apparel brand in the world.
ReferencesCSIMarket. (2023, September 8). Nike Inc Market share relative to its competitors, as of Q2 2023. https://csimarket.com/stocks/competitionSEG2.php?code=NKEInterbrand. (2023, January 3). Nike. https://interbrand.com/best-global-brands/nike/Meyer, J. (2019, November 28). History of Nike: timeline and facts. TheStreet. https://www.thestreet.com/lifestyle/history-of-nike-15057083Nike, Inc. (2023a). 10K Annual Report. In Investors Nike. https://s1.q4cdn.com/806093406/files/doc_downloads/2023/414759-1-_5_Nike-NPS-Combo_Form-10-K_WR.pdfNike, Inc. (2023b). About Us. Nike. https://about.nike.com/en
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