Free Nike Marketing Strategy Essay Sample
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Nike Incorporation is the leading sportswear and equipment company in United States of America (USA). The company has its headquarters in Beaverton, Oregon at the larger Portland metropolitan area. In addition, the company is the world's leader in the supply of athletic apparel and shoes because of its improved quality (Gereffi, 1994). Being a major manufacturer, supplier, and distributor of sports equipment, it has employed more than 30, 000 people globally. The company was founded on 25th January, 1964 by Bill Bowerman and Philip Knight as Blue Ribbon Sports. It later changed its name officially to Nike Incorporation in 1978. Nike is a Greek word for goddess of victory. The company markets its own sport products under its brand as well as Nike Pro, Nike+, Nike Golf, and Nike Skateboarding (Andrews, 2001).
In addition, it has subsidiaries, which include converse, Umbro, Hurley International, and Cole Haan. It also owns Bauer Hockey (popularly known as Nike Bauer) and operates retail stores, which uses Nike town name. The company engages itself in social responsibilities by sponsoring high profile sports and athletes teams all over the world (Gareth & Charles, 2007). The company has its worldwide recognized Swoosh logo and trademarks "Just do it." The company advertises its products globally using billions of dollars, which in the long run has led to increased sales and profitability. Nike brand is synonymous and well known in sports; hence, consumers believe Nike is effective and serve their needs (Buchholtz & Archie, 2008).
Nike Company was founded by Philip Knight and Bowerman Bill in January 1964 with its name as Blue Ribbon Sports. It later changed its name in 1978 to Nike Incorporation. It uses its famous logo known as Swoosh and trademark 'just do it", which is globally recognized due to its high quality sports equipment and apparel. The company has markets all over the world. Most customers prefer the products of Nike because it meets their needs and desires in all aspects. The company's top management has incorporated information and knowledge management system (Cunningham & Purdue University, 2006).
Being a leading sportswear manufacturer and supplier company globally, it has all kinds of sport products ranging from soccer to golf. It also produces sport apparels, which are recognized by its customers in all market segments as durable and meets their needs and expectations. Nike Corporation has five main departments with a matrix structure (Gareth & Charles, 2007). These departments are design and development, production, marketing, finance, and human resource. These are key departments in which all operations and activities operate. It has encouraged the culture of team-based that enhances easy knowledge and information sharing among employees, managers, customers, and other interested stakeholders (Gereffi, 1994).
General and technical information flow within Nike Company because it provides information to three different groups or departments with different roles such as production, human resources, and marketing. However, the company has to make strategies that will help it overcome the stiff competition in the market. The introduction of gatekeeper and expert of Nike is an added advantage because it improves the quality of its products. The company's top management has recommended two technologies that are appropriate in enhancing Nike's Corporation products (Buchholtz & Archie, 2008).
The two major competitors of Nike Company are Puma, Reebok, and Adidas. However, Nike is the leader in the market followed by Adidas and Reebok group (Rothacher, 2004). Puma is in the third position. Competition is stiff in the market but Nike has managed to lead by gaining competitive advantage in the global market. Its market share was 36% by July 2007 while for its close competitor (Adidas and Reebok group) was 21%. Though Nike Corporation market is global, its core and larger market is found in United States of America where it has more than 100 million customers (Cunningham & Purdue University, 2006).
Nike has improved the quality of its products in USA; hence, Adidas and other competitors cannot compete with it in the US market because it controls a bigger portion. It has gained competitive advantage and customer loyalty in all markets globally especially in US (Gareth & Charles, 2007). The market research and analysis conducted by the company on what customers and potential customer is what has made the company lead and gain competitive advantage globally. This is one of the company's strategies because it aims at satisfying its customers wants and needs; hence, emerging as a market leader. The company sales have been increasing significantly because of its marketing strategies (Andrews, 2001).
The advertisement and promotional strategies used are majorly significant in attracting and retaining the customers. The human resource department is playing a critical role in employing not only dedicated, committed, determined, experienced employees, but professionals with skills and knowledge (Grundy & Shackelford, 2005). Employees determine the success or failure of a company. The company has therefore, ensured anybody employed meet all the minimum requirements. The top management comprises of experienced people who serve as Chief Executive Officer (CEO), Chief Financial Officer (CFO), managing directors, and head of departments, general manager, and other senior managers who make decisions and strategies of the company (Buchholtz & Archie, 2008).
The top management has come up with the mission and vision of the company, which is unique from other companies. Its vision is to bring innovation, inspiration, and motivation to every athlete globally because it believes that anybody with a body is an athlete (Grundy & Shackelford, 2005). It is inspiring and focuses on improving its products in future. The employees are trained and developed regularly for them to remain effective and efficient when carrying out their routine duties and responsibilities. The company has expanded its products by producing different kinds of sports and it is currently focusing on tennis, basketball, baseball, running, and soccer (Cunningham & Purdue University, 2006).
Their products are famous because it attaches them with the famous athletes and sports men and women such as Michael Jordan in basketball, Ronaldo in football or soccer, Tiger Wood in golf, Kipchoge Keino, Paul Tergat, or Usain Bolt in athletics, and many others. This is effective and efficient way of promoting and campaigning for its products in all target markets (Gareth & Charles, 2007). The company has retail outlets and agents in more than 100 countries globally. The company has customized its products then sends to them to Nike as per the customer's specification. Customers send their orders and the company will manufacture them in order to satisfy the customer's needs. The company is adopting the new technology because it is essential for them to manufacture high quality products (Andrews, 2001).
Nike Company has been striving to create customer value by improving the quality of the products it manufactures. Quality of the products is sensitive to the customers because they want to buy products that are long lasting and compensate for the money they pay (Grundy & Shackelford, 2005). The customers are charged affordable prices, which are lower than its competitors. Customers determine the success or failure of a company because they can decide to buy or not to buy the products of the company. Because of this, the company manufactures goods depending on what the customers want based on the information and data collected in the market research (Gereffi, 1994). The rapidly changing technology has been adopted so that customers get products, which are fashionable and not obsolete. After sale services are provided to the customers such as packaging and transporting them to their premises if they are in large quantities (Buchholtz & Archie, 2008).
The SQIP approach explains how value is created by combining service, product quality, image, and price for it to remain competitive in the market. Its main focus is to differentiate the products for them to remain distinct and attractive in the market. SQIP approach is to market the company to become a market leader in the industry full of competitors. Nike Company has been focusing on SQIP approach because has been able to become market leader (Gereffi, 1994).
The services of Nike Company have been improved in order to attract and maintain the customers of the company. The company offers services such as transportation of goods to the customer's premises if he or she buys in large quantities. This is a strategy the company uses to retain and improve relationship between them and the customers. Customers value services offered by the firm because it makes them feel that the company is not interested on their money only (Buchholtz & Archie, 2008).
Quality of products and services is paramount for the success of any business. Nike Corporation have retained and expanded their market share. Nike has competed favorably with its rivals because its products are of high quality (Grundy & Shackelford, 2005). Quality products attract and retain customers because they like value on what they buy. The company has been able to gain competitive advantage by dominating and leading in the market because of high quality products. Quality is realized through the durability of the products. The company's products are durable or long lasting; hence, a chance for them to outperform the competitors in the market (Andrews, 2001).
The image and reputation of the company has been enhanced by the high quality products and services provided by the company. The company is well known globally and locally because of its strategies that have ensured its products and name is well known. The image of a company can be tainted either positively or negatively depending on its services or products in the market. The company's image and reputation has penetrated all markets even in regions where its competitors dominate (Cunningham & Purdue University, 2006).
Customers are sensitive to the prices of the products because they do not want to pay more when they can get cheaper ones. Nike Company has dominated the market because of its quality products that are sold at an affordable price. The products of Nike are the cheapest in the market compared to its competitors. Prices that are affordable have attracted and maintain customers in the market; hence, gaining competitive advantage (Buchholtz & Archie, 2008).
The company's brand is identified because of its high quality and the packaging. The swoosh logo is an identity used in the market. The Nike mark on all products of the company is an identity that makes recognized (Gereffi, 1994).
The company has positioned itself in the market by advertising and sponsoring events. The quality of its products is its strategy on how to position itself. Pricing and improving customer relation is one of the main brands positioning in the market. These factors have made the company gain competitive advantage (Andrews, 2001).
The company targets mostly sporting and athletic events because most of its products are used in sports. In addition, it targets all people irrespective of their ages who are interested with their products globally. It targets sports and athletic men and women in all countries in the world (Cunningham & Purdue University, 2006).
Most customers are loyal to the company's brands because of its quality, pricing, and distribution. The loyalty has been build over time and this is the reason the company is leading the market globally by controlling over 31% of the total market share (Buchholtz & Archie, 2008).
Nike Company advertises its products using TV through ad agency created by Wieden+Kennedy at the New York marathon in which it sponsors. Nike Company has been sponsoring sporting and athletics activities. This is a marketing strategy the company is using to promote and campaign for its products in the market. Nike Company has been named by the Cannes Advertising Festival as the advertiser of the year twice in 1994 and 2003 (Gareth & Charles, 2007). It has been honored because of its sponsorship agreements, which have enhanced sports and athletics in the whole world. In addition, the company has earned itself Emmy Award for being the best commercial company especially the 2002 sport known as "Move" and the morning after. Advertising and sponsorship is the strategy the company is using to penetrate into the new markets (Gereffi, 1994).
The company is expanding its products by creating new markets all over the world. The company is creating and innovating new brands; hence, increasing its market share and customers (Rothacher, 2004). Expansion is necessary for the company because of the stiff competition being experienced in the market especially from Reebok, Adidas, and Puma. Brand expansion is essential because competitors are watching keenly on the steps the company takes to control them in the market. The company is working on strategies and modalities that will ensure its brand reaches all parts of the market (Andrews, 2001).
The brand of the Nike Company is ranked top in the market because of its strategies and constant improvement of its product services and products. The ranking of the company is based on the fact that it has winning awards and the good reputation from the customers and other stakeholders (Grundy & Shackelford, 2005). The value of the company is worth more 50 billion dollars globally. It is a multinational company whose investment and returns is increasing rapidly. It is rank first in the market because of its stability financially in the competitive market. The ranking is based on its financial stability, customer increase, and market share globally (Cunningham & Purdue University, 2006).