Marketing strategy Essay

Nike Inc. founded in 1964 by Bill Bowerman and Philip Knight is global draw in athletic wear and footwear industry. With Nike occupying around 45% of global grocery sh atomic number 18 in footwear and app argonls and moving further ahead, often epochs of the organisational success bunghole be credited to its commercialiseing st appreciategy that discombobulate helped the organisation contact revenue enhancement worth billions every financial year ($18 billion cosmos in two hundred8). Nike Inc. UK has a major securities industry in the UK for fittingness trainers and fit out tolerated for health and fitness purpose benefits to the consumers.Nike actualises the importance of market abstract and marketing system establish upon those analytical processes. Considerable amount of explore and analysis have been carried on in understanding consumer privations, UKs environment and electric potential opportunities. This report consists of situational analysis chock u p of Nike in UK and also presents situational analysis wind of ways in which competitive edge dismiss be gained against its rivals with segmentation, sharpening and emplacement of the products.The importance of marketing objectives has also been highlighted in the report and olibanum tail suppresss Nike with a glimpse of marketing environment in UK and the expectations with role of marketing admixture (4Ps). Introduction Nike has predominantly been successful in slip manufacturing and distribution among the habilitate manufacturers with its superior type, high tech, ultra in advance(p) seat that meet on discharge adopt of the market and its trends. From professional mutant to virtu entirelyy common need for fitness trainers, Nike has got fitness topographic point and trainers in all shape, sizes and colours.Some of the most famous Nike trainers and fitness space be Nike + (spelled as plus), picnic Jordan, Nike Shox, Nike lunar glide, Nike Air Zoom, Nike 360 and legion(predicate) more. Nike is the sole distributor of Nike peck mark equal on each of these and m any of its fitness trainers interchange globally. High superior material, design and cut and technological enhancement of the horse home as per prerequisite of various activities thus reach Nike the best choice for fitness trainers and spot. merchandise Analysis and strategical evaluation of a beau monde is an all- grave(a) segment of any organisational success.Without swell-structured marketing strategies and road maps to planning and achieving them, no organisation peck be at the point where they want to be. Nike in UK c all overs a true(p) amount of market administer and revenue for the organisation. The huge market diversity, filth aw argonness in market and consumer base loyal to high lumber products therefore help to its ca implement. On the other hand, UK market is widely distributedly health conscious and trendy. trainers and fitness shoes are therefore in much demand over last few old age inside the earth itself.Marketing Audit (Nike Inc. UK) Nike Inc. UK follows management strategies that combine with six of the most important international factors that brush aside have an bushel on the organisation. PESTLE is a situational analysis tool that depose be used by firms to figure their position against possible external influences much(prenominal)(prenominal) as politics, economy, society, technology, environment and law. Nike and its positional stand against background of UK market can therefore be analysed in the by-line way Political Factors Nike Inc.has a considerably stable governmental environment and an economy wel farthermoste provided by the state. Considerable amount of effectual requirements were accomplished by Nike during its entry in the UK as an organisation finish all political alignments. Considerable amount of fitness shoes and trainers are imported in UK which is change all over. However, Nike mig ht have to eccentric challenges if government drafts policy or quotas on Nike shoes that can be imported from its production sites much(prenominal) as Asia-Pacific. Economic FactorsUK economy has been fluid in recent years. The double dip recession few years back, inflation rate fluctuating abnormally, growth living tolls, income tax rate ontogenesiss and other economic factors directly or indirectly affected Nikes performance in the UK with comparatively weak sales figure. Economic balance, trading rate and PDI all essential be stable and firm comely in the economy to help a pedigree sustain. Nike therefore ineluctably strategic move that can guarantee its sustainability in such(prenominal) circumstances. complaisant FactorsUK market comprises of people from multiple culture, religion and ethnic backgrounds. on that pointfore, Nike needs to understand the mixer system and practice of all these people whenever approaching them. gross revenue and marketing of the fitnes s shoes should be therefore ground upon social acceptance of methods, peoples lifestyle and their way of sentiment. For instance, consumers in UK who secure fitness trainers are pretty health conscious and the numbers are growing as well. Hence, Nike needs to provide more health benefitting shoes and apparel.Similarly, social duty icon of Nike has to be significantly gained with accusations of running sweatshops in Nike factories in Asia which it has tried to improve with facilities, factory improvements and commitment towards further improvement. scientific Factors Technological factors are an important aspect that needs to be considered by Nike Inc. UK . Technological advancements in fitness shoes need to be updated and research and development of such apparels have to be advanced.With fitness shoes that are designed such for injury prevention, sole streng thereforeing, speed sports, less hidrosis and many other experiences the advancement has been unimaginable. UK nodes a re updated and spend peachy time researching on features and quality of the product they want. Nike therefore has to be technologically loose of providing node satisfaction. Environmental Factors Nike needs total understanding of UK market as consumers are concerned about how products they purchase can make an impact upon environment.Production materials, process and sites can be harmful to environment in many ways. This can be a grave concern for environmental activists and hence persuade consumer thoughts. Nike has to be able to inform the consumers in UK with their nonstop efforts in making Nike shoe production environment friendly and use of raw materials and the production process least harmful to nature. Legal factors Nike has to adhere with all the legal regulations and in relevance with companies operating in the UK.They must consider their business privileges as well as legal responsibility in concern with marketing, promotion and sales in the Kingdom. Some of the lega l acts that they need to consider are regarding press, trade acts, acts on sales and lend of goods, adverts and campaigning, television adverts, environmental acts and so on. Without its compliance of topical anaesthetic laws and acts Nike would suffer a huge blow in gaining consumer trust as they cannot operate with efficiency. SWOT ANALYSIS FOR NIKE FITNESS SHOES Strength Nike is a global leader in shoe manufacturing and has been in market for very long time.There is a considerable amount of customer trust and loyalty based upon the very fact that Nike has been able to provide highest quality fitness shoes with modern techniques and design over years. The research and development investment in Nike is huge. The very reason has pioneered Nike in producing ultra-modern technology in fitness shoes. place with air compressed soles for low pressure on soles, ankle protect designs, speed hikeing trainers and so on have all been Nikes brilliant ideas in meeting with modern demands o f consumers.Beside innovations, Nike also provides consumers with choice of designing their own shoes in the UK. Nike has a global presence and their revenues are worth billions . scattering channels for Nike are well established and it has diverse range of products to give the consumers with. Weakness Nike Inc. UK has had to compete fiercely against several of its competitors in recent years with economic downfall regarding equipment casualty of the product. Several of Nikes fitness trainers are comparatively expensive than other brands. With buyers focusing their mind on cost efficient purchase, Nike prices are a thought for many.On the other hand, Nikes sweatshop factories in Asia which are not owned by Nike themselves but subcontracted had tarnished Nike image among many people. Nike has considerably put much effort in alter the working condition and lives of its workers thereby. Opportunity UK market has lots of potential opportunities for the Nike. With numerous amounts of health conscious people and growing sport enthusiastic contemporaries of youngsters, Nike has the opportunity to grab market by launching shoes and trainers as per the consumer needs.Use of internet is wide and common in the UK and e-commerce has been developing in a tremendous pace. Nike can use this opportunity to promote, inform and render its consumers with its fitness trainers. Threats Nike has been competing fiercely with rival companies such as Adidas, Puma, Asics, Umbro and others for fitness shoe production and distribution in UK market. Besides, challenges from competitors, forged Nike footwear comparatively low-cost and of low quality are circulated by counterfeiters in market which has hampered Nikes nature and brand.On the other hand growing economic uncertainty, government cuts and emanation inflation have been challenging Nike sales. COMPETITIVE ADVANTAGE Competitive favour can be ascertaind as strategic utility a company holds against the competitors in the industry. It can be marked as the positional state of company when it is able to farm a benchmark in terms of profit in the industry. Nike has the competitive advantage over its rivals through and through wider market reportage, higher gross revenue and customer loyalty as well. Nike fitness trainers with their high quality design and attributes have been able to outgo other shoe makers.Nike therefore wants to hold this competitive advantage over its rival sustainably. Competitive advantage can be achieved either by, approach advantage techniques when production is do in big quantity and products sold in relatively cheaper price or variediation techniques of producing unique have products against competitors and providing relative value to the good priced. In 2003, Svend Hollenson provided seven key factors that provide organisations with competitive advantage. Nike with all these consideration and seven key factors can boost its performance therefore in market.The seven facto rs are Economy of plateful Economies of scale refers to the term when production cost of a company is relatively lower than its sales revenue and earnings made are from massive sales. These companies produce goods on regular basis and avoid shortage in the market. Economy of scope Economies of scope relates to the idea that cost of production can be further reduced by other organisational means such as joint administrative firms for different products, similar storage for different goods and cost effective methodologies used in production to distribution.Strategic thinking The core competence of any business to succeed in modern business world is strategic thinking. With wide amount of competition and impediments that can affect the business, Nike should be able to analyse its internal and external environment, appreciate operational lapses so as they can provide effective dodge to eradicate arrears and achieve their objectives. Use of local market Global companies such as Nike h ave ample opportunity to provide their range of products to local market in the UK.With well informed and health conscious consumers growing on daily basis, Nike can exploit the opportunity to provide its trainers in all parts of the surface area. Nikes product range and standards are well accepted and with more quality products coming in it can boost with learning of local market and advantages it can take from. Ability to provide global values Nike has been able to provide its product and service end-to-end the globe. With communication, transportation and various technological developments that have made international trade reliable, company such as Nike have been able to market and put up their business worldwide.Use if information technology in global service is an essential tool which has been used by Nike to deliver its goods and services. Competitive advantage (Company specific) Every organisation should have a distinct and unique feature which provides a competitive edg e over its rival companies. Nike has been providing high quality footwear from their founding age. Superior technology, design and features of Nike footwear are act to none. This very reason has made Nike achieve higher market share globally than its competitors by building excellent customer relationship.Human choice (competitive advantage) Nike and its success can be credited on high take to the employees of Nike who with their commitment, skills and attitude have made tremendous development and market coverage for them. Human workforce is an essential element of any business where firm should be able to provide the employees with business specific skills. This helps organisation achieve most out of the available workforce. SEGMENTATION, TARGETING AND POSITIONING (STP)The marketing strategy of a company starts from mission and vision statement to selection of market and then positioning of the plans and objectives of the product in the market. Philip Kotler (1994) provided se gmentation, targeting and positioning as the essence of strategic management for any organisation. Here, in terms of Nike Inc. UK, we can suggest following steps to be followed for strategic move Segmentation Research on existing market, types of customers and distribution of similar market should be carried out. Targeting A target market (generally mass and more productive) which has to be served has to be analysed.Positioning The plans are carried out to be performed in the target market and all the activities positioned. Nike Inc. UK should be able to research and develop the segments within UK market where consumers with similar characteristics can be served. The three approaches of market segmentation such as differentiated, undifferentiated and concentrated can be used to discover segments and plan accordingly by Nike. Nike can distinguish its market with several features and variables which determine the general concept about products that Nike send offer, fitness shoes in this case.Socio-demographic variables such as age, gender, occupation, income and family etc. can be considered. It may also be based on geographic information such as area, area density, household and neighbourhood, market size and more. Behavioural data can be assessed to determine customer loyalty, buying trends, user choice and others. Psychographic studies would help Nike understand consumer lifestyle, stylus choices and many more. Nike and its segment targeting approach in the UK Socio demography Nike Inc. UK provides fitness shoe and trainers in wide range and designs to offer different kind of customers.Trainers and shoes come in all shape, size, specification and quality. Trainers in multiple ranges for men, women and kids are available in the UK market. Sizes are marked effectively for fit in purpose and available readily in all the sales stores. physical fitness trainers for men range from ? 38 least for Nike Zoom to ? 120 highest for Nike Trainer 1. Women have wide r ange of choice as well from Nike Air Cardio designs costing mere ? 28 to ? 140 for Nike Air Max+ 2011 id. peasant products range from ? 18 to ? 100. Geography Nike has made its presence felt in all the major towns and cities in the UK.The points those are most likely to be consumer targeted have been cover as market by Nike. However, reaching the country sides would be a challenge and point of thought if Nike wants to expand its business all over the nation. Nike provides point of sale services in London, Birmingham city, Glasgow, Manchester city, Edinburgh and many other cities. However, internet usage is the only medium for other geographic parts to purchase Nike trainers. Customer Behaviour It can be important for Nike to realise the importance of customer behaviour in UK.To learn more about consumer preferences and expectation, it is important to communicate with them and share their experiences. Customer loyalty can be earned by providing customers with benefits and services s uch as aft(prenominal) sales, exchange facilities, warranty and making them feel cared for. Nike has to develop such documentation to learn more about customer status and capacity. Consumer psychograph Nike has so far been successful in providing trainers and fitness shoes to varying demands of consumers that are available in the UK. Prices of the trainers range from ? 28 to ? 140 which shows that Nike has its focus on all sets of customer status.Some exclusive products are also sold in the market that focuses on trendy, fashionable and youthful nature of trainers and fitness shoes for the consumers. POSITIONING OF MARKET Nike Inc. has been very successful in positioning itself as a global leader in athletic footwear market. raze in UK, Nike has been really successful in covering huge market, enormous amount of consumer trust and therefore considerable amount of revenue for the company itself. Technological advancement, high quality materials, innovation and design in Nike footwe ar are what even the competitors try to imitate.Even though several European brands provide Nike with stiff competition in the UK, Nike has been efficacious in fending off challenges and come up with even better trainers and footwear as per the demand of demanding health conscious population. With a very competitive pricing strategy that is in concern with market expectations, Nike provides footwear of different sizes, design and price for different market segments. Nike has invested considerable amount of time and money on research of UK market since years which has made it one of the most bank and loved brand in the UK.Such strong position and market share therefore is a positive sign for Nike in days to come. NIKE AND ITS MARKETING OBJECTIVES AND GOALS IN THE UK Nike has been established as a reputed business opening in the UK for years now. Their capability and product effectiveness are reflected in choice of people in using Nike fitness trainers before any available option. S MART based goals and objectives which relate to features of objective setting such as specification, measurement, attainment, realisation and time are necessary for Nike to implement in their strategies.Here, we analyse how Nikes objectives can be related to the SMART approach. particular(prenominal) Nike is the leading women fitness provider in UK with revenue grossing worth 200 million dollars in 2010. Nike Inc. wants to double the gross amount by the fiscal year of 2014. MEASURABLE Nike targets revenue of $27 billion by the end of 2015 as well as cumulative cash flow increment to $12 billion. ACHIEVABLE Nike wants to provide UK consumers with 100% cotton used fitness trainers based upon consumer survey in coming years. Nike Inc.has plans to endorse its own athletics footwear during the 2012 summer Olympics in London by sponsoring all the American athletes participating in the games. REALISTIC Nike Inc. UK wants to increase its market coverage in the UK which is 18% now to 25% w ithin 2013 as Nike footwear have had tremendously appreciated response and promotional endorsements are to be boosted during Olympic games. TIME BOUND All afore mentioned plans and objectives of Nike Inc. UK are to be completed in certain time allocated for each objective completion.MARKETING STRATEGIES AND PROGRAMS OF NIKE INC. UK Nike Inc. UK would have to define its objectives and the process of determining the achievement of those goals. Out of various strategic plans available, Nike Inc. UK can use growth strategies using both product and market. Figure line http//highn. me/ansoffs-matrix-planning-for-growth/ Nike Inc. UK can develop its strategies by using various methods of strategic moves such as Market Penetration by providing competitive prices against others, promotional campaigns, enhancing customer support and care etc.Market Development by acquire into newer geographic area, building newer distribution channels, creating new product dimension, creating new market seg ment etc. Product Development by producing exclusive products, creating a new trend, using technological advancements in product, diversifying product ranges etc. diversification by producing new merchandises than usual for instance sweat free socks for Nike trainers, or other products to match Nike footwear and apparels such as caps, jogging scarfs etc. THE MARKETING MIX (4PS) FOR NIKE INC. UK Nike Inc.UK and their marketing strategies may be subject to changes from external forces of environment such as politics, economy, society, technology, environment and law. The company however has no control on these factors and have to make adjustments on several occasions. The 4 ps are variables that the organisation can control within its own marketing strategy and is generally known as 4 ps of marketing mix. Here, we analyse Nike Inc. and its marketing mix. Product Nike should be able to provide product variety to the consumers in UK. With people interested in different sports, Nike ca n make an impact on market here.The quality and features of the new trainers have to be of highest quality, design and durability. Latest trends and technology used in performance enhancement, accident prevention and safety of athletes should be made available in Nike trainers. Sizes and shapes have to come out in all different ways and the products need to be attractively packaged as well. Price Nike needs to focus on all kinds of customer and research on the customer behaviour or purchasing principle in the UK. Though Nike already provides trainers from as cheap as ? 28 to ? 140 and more, the prices need to be justified.List of the prices and their features marked with products can be helpful. Price discounts on times can be helpful for boosting business. target Nike should focus on locations where footwear can be retailed, distributed or sold more efficiently. Study of market is necessary to determine where Nike can make best out of its sales. Placement in this case may be sto res around sport clubs, distribution to other sellers and others. Information technology has covered almost the whole part of UK which can be utilised by Nike to exploit the market and attract the customers. Promotion Nike Inc.has used several of global athletes as brand ambassadors for the company. Their very link with the company and attachment has provided quicklime light to the Nike trainers as well. The company can advertise its trainers through media create sales promotion from time to time and even sponsor acclivitous sport events to promote their products as well. Conclusion/Recommendation Marketing outline is an important aspect in achieving the organisational goals and objectives. Only with considerable investment in analysing Nike Inc. s strength, weakness, opportunity and threats can the organisation implement marketing strategies.Nike enjoys good market presence and customer loyalty in the kingdom and thus can improve further. From the report, we can recommend some of the following aspects for Nike The emerging youth culture and trend is an opportunity for Nike to market its products. More technological use in trainers, design can be improved so as to promote fitness trainers. Health benefits associated with fitness Nike trainers should be made aware to the consumers. Use of information technology can be big way to market coverage for Nike trainers and their distribution.