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Marketing and Nike Essay

We can evaluate Nike’s core online strategy as related them to the kind of marketing theories.

First of all of them is distribution theory. Nike distributes usana products on diverse level basis. The high quality products are given to some distributers as the low price to be sold at remarkably discounted price at the retail stores just like Wal-Mart. Nike has also end up being the leader inside the e-commerce if it is the first to the industry whit their e-commerce website. This program presents the first time a company has provided mass footwear through the internet and provides competitive advantages to Nike.

Another one of the theories is usually advertising and promotion. Nike makes agreements with some superstar athletes which can take awareness of their products including Michael Jordan, Padraig harrington, Maria Sharapova, Ronaldo. It has created a relatively high level of Nike’s consciousness. Nike as well employed a big amounts of adverts.

Their extreme advertising campaigns, celebrity endorsements and quality items all grow their brand and image. The other theory is price. The price is usually not powerful on their technique because Nike’s target market is based on the customers who care more regarding the power and top quality of the product. This strategy is targeted on the buyers who like Nike and pushes the products benefit to a higher level. Once the buyer develop the product intimacy, they come to connect their person with the companies will pay what ever price cited on the goods.

Nike make use of vertical the use price approach and they also engaged in various funnel level functions both to control costs and influence the price function. And once we look in the market segmentation theory, we see that most in the consumer of Nike’s items is mainly athletic. Their segmentation market commonly targets athletes, both women and men, in the age 15 to 35. Nike is targeted on creating high quality consumer encounters on merchandise innovation, company leadership and elevated full presence.

Although Nike focuses on athlete more than any selection of individuals. This tactic is especially effective because of its ability to reach numerous athletes. Though Nike’s key marketing strategy experienced brings large amount of positive guidelines to the business, but it provides negative guidelines to Nike too. The mainly bad theory is the cost theory. Nike experienced incurred expense in generating and endorsing its products.

The expenses are elevating among controlling inventory, developing, advertising and production. The inflation experienced also rised the costs. And so Nike has increased the products rates and minimizes its advertising budget. Nike had also employed child labor in Cambodia to lower its development and labor costs. This affected manufacturer image adversely and many people stop obtaining products coming from Nike.

Furthermore, Nike have been using kid labor in the production of its soccer balls in Pakistan. Among the Nike’s main marketing strategies is depend on a team of athletes to promote its products. Nike prefers to have high profile players as its endorsers, like Jogger Steve Prefontaine, Michael Jordan and LeBron Adam. The action and frame of mind of Nike’s chosen spokespersons could bring the impacts in its promotional strategies. For example, it will appeal to the athlete’s idolater to purchase the products in the event Nike by using a popular sportsperson as endorser.

On the other hand, in the event the athlete had been caught in drug hooked or any wrong attitude, it can affect the clients not to get Nike’s goods, thus is going to affect Nike’s sales, income and revenue. There is strong competition confronted by Nike. Their rivals are Nike, Reebok, The puma corporation, and so forth, while competition can be tighter with the coming of Adidas. Even more, the product line is definitely slightly different between Nike and Adidas. Nike faces various risks when they use their core marketing plans to achieve all their goals and these risks can come by both in house and outwardly environment.

The potential risks will have a negative influence regarding Nike’s long term development. Nike needs to remain on the top of changes in consumer taste and preferences as evidenced by simply changes in fashion. So Nike face the risk that fashion trends may modify so fast that Nike fails to follow.

If Nike cannot follow the fitness styles in the market they may face dangers of shedding market stocks and shares. To take on this dangers and problems, Nike should certainly position this as a fashion leader and not a trend fans and be dependable to their customers. The global styles are to be vogue and individuality. So Nike change the marketing strategies and products style to become more value and give attention to the youth consumers.

That brings dangers to Nike because inside the traditional head of customers, they consider Nike only offer the athletic products. The method or the changing style products is unimaginative for customers to get. Not all the customers can stick to the changing of Nike.

Consequently , Nike should certainly analyse the industry and customers’ preference and also customers’ shopping for behavior every once in awhile. One of Key Nike’s marketing strategies is to increase to overseas and become the best in the world. In addition, it will bring risks to Nike when they broaden their organization globally. Foreign exchange rate variances can affect the business with the independent manufacturers that develop Nike goods by making all their purchase of recycleables more expensive and even more difficult to finance. Besides that, the global economic recession influence the overall business procedure in the outsourcing techniques countries.

2) If you were Adidas, how will you compete with Nike? One problems most likely to be encountered by Nike is in their marketing, compared to its competition Nike, Nike spends more cash on advertising and marketing their products standing. Adidas may have a hard time aiming to compete with Nike in terms of advertising and promotion, considering Nike’s utilization of low labor expense of production, Nike can afford to shell out so much profit creating awareness for their companies gaining buyers loyalty by utilizing celebrities.

Basically were Nike I would commit more money upon advertising and create ground breaking means of advertising their product, having consumers in mind and following the trends of technology, for example , Nike can work together with IT companies such as Samsung to produce innovative means of advertising their products. Also a merger could be best for the Nike, if the right strategy offers chosen. One example is; Adidas and Reebok joining up collectively as a combination would be a great buy for leading over Nike but the two companies have a bad popularity due to financial problems which almost led them to individual bankruptcy and since they are really to interact.

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