BIBLIOGRAPHY

www.bohatala.com

http://panmore.com

www.managementparadise.com

Part 1 – Nike Running Shoes Market Analysis

Product

Product Description

The product brand is Nike running shoes which come in different categories. This brand
is a very reliable, supportive and durable fit that is an improved quality over its
predecessors. It features an advanced and attractive fit that takes into consideration a
100% guarantee of comfortability. It is made flattened out, new, and a Dynamic Flywire,
a typical strategy to keep it extraordinarily with great experience of relief and
confidence. Its engineered Flymesh upper material makes substantial provision for
pliability and solid support to also stand the test of time. It is definitely designed with a
midsole that features a triple density foam provided with a Stock fit medial post to
decrease over pronation and then provide a cushioned ride to enhance everyday
training. This product comes in varying sizes to suit and fit in any size that needs to. Light
weighted, durable, attracBranding is an important aspect of the market that creates and
defines the identity of an organization, business or company. Building up a brand implies
that an organization is taking on the responsibility of creating substantial value, brand
visibility and desirability of a product. Brand is something that surrounds a lifestyle,
provides customers with something to identify with, and then offer a product with
meaning and considerable substance. The importance of Nike as a unique brand is
narrowed down to how excellent they have refined themselves and their products,
especially as an athletic and fitness company; not just like any other shoe company.
Their logo has gone so globally recognize with respect to the quality of products they
manufacture. Nike is that perfect exemplary company that has extensively translated the
importance of producing, protecting and maintaining the brand they are building
consistently. Their success have excellently thrived in dominance in the sport world with
an exclusive brand image, and visibility that had given the company an extremely high
value.Manufacturing this product is not as difficult as it appears. Though it requires
intensive labor, quality materials and sophisticated technologies to manufacture this
product. However, manufacturing this product is a result of an outsourced activity by
some subcontractors around the world. Therefore, these factors definitely affect the cost
of the product. But the quality is what is sold throughout the world.

Product Mix
4P'S
1)Nike’s Products

This element of the marketing mix enumerates the organizational outputs offered to
target consumers. These outputs are known as the product mix. Nike Inc.’s growth
comes with changes in its product mix. For example, the business continues its
investment in research and development to produce new products and enhanced
versions of its current products. Originally a distributor of shoes, the company now
manufactures various shoes, apparel, and equipment for different sports. Based on Nike
Inc.’s generic strategy and intensive growth strategies, the business integrates new
technologies into its product lines to improve product effectiveness and customer
satisfaction. The following broad categories represent Nike’s product mix:

1)Shoes

2)Apparel

3)Equipment and accessories

2)Place/Distribution of Nike
This element of the marketing mix outlines the venues where the company’s products are sold,
accessed or distributed. Nike Inc. sells its sports shoes, apparel, and equipment through a large
number of outlets worldwide. For example, these products are available at major retail stores.
The following places/venues form Nike’s distribution strategy, arranged according to significance:

1)Retail stores

2)Nike Online Store

3)Niketown retail outlets (company-owned)

Retail stores are the most significant places where Nike products are sold because these venues
are strategically located and easily accessible in various markets around the world. These
retailers include large firms like Walmart (see Walmart’s Marketing Mix or 4P), as well as small
local and regional stores. This 4P element also shows that customers can purchase Nike’s sports
shoes, apparel, and equipment through the company’s online store. In addition, the business
operates its Niketown retail outlets. These outlets are company-owned and allow access to
business and market information that supports corporate strategic management with regard to
marketing strategies and tactics for current, new, and emerging products. Based on this element
of the marketing mix, Nike Inc. controls the distribution and sale of its products, especially
through its online store and Niketown retail outlets. However, the company has limited control
on the distribution and sale of its products via other retail outlets.

3)Nike Inc.’s Promotion

Main article: Nike’s Promotional Mix (Marketing Communications Mix)

This element of the marketing mix is also known as the marketing communications mix, and
involves the tactics that Nike uses to communicate with its target markets. The company
depends on the effective promotion of its products to maintain a strong brand image, which is
one of the strengths determined in the SWOT analysis of Nike Inc. The company uses
promotional tactics to communicate with target customers about its products, and persuade
these consumers to purchase the products. The following are Nike’s promotional activities,
arranged according to significance:

1)Advertising

2)Personal selling

3)Direct marketing

4)Sales promotions
5)Public relation

4)Nike’s Prices and Pricing Strategies

This element of the marketing mix identifies the prices that the company applies to maximize
profits while attracting the desired share of the multinational market. Nike’s investments in
technology is linked with a strategy to offer its products at a premium. Still, the company
considers current market conditions in setting its price points and price ranges. Based on these
considerations for this 4P variable, the following pricing strategies are applied in Nike Inc.’s
business:

1)Value-based pricing strategy

2)Premium pricing strategy

In using the value-based pricing strategy, Nike Inc. considers consumer perception about the
value of its products. In the context of the marketing mix, this value is used to determine the
maximum prices that consumers are willing to pay for the company’s sports shoes, apparel, and
equipment. In relation, the premium pricing strategy involves high prices, based on a premium
branding strategy that establishes Nike products as higher in quality and value than competing
products. The company’s use of advertisements involving high-profile celebrity endorsers is
indicative of such emphasis on premium branding. In 2014, the business successfully increased
its selling prices and generated higher sales and revenues. This trend continues, as the company
enjoys increasing sales revenues while gradually increasing its prices. Based on the
PESTEL/PESTLE analysis of Nike Inc., such trend is linked to the sociocultural and economic
changes in the industry environment. The business adjusts its price ranges according to such
changes. In this element of the marketing mix, Nike Inc. successfully uses its pricing strategies to
maximize its profits while emphasizing high value in promoting its products and brands.

TAGLINE
LOGO

Nike Running Shoes Competition

Three Brands for this Product

There are many other competitions for this product, some of them are:

1)Reebok

2)Adidas

3)Converse

What other Brands Offer

Reebok offers natural, incredible foot and leg articulations. Their minimalist shoes are of good
quality, and are enhanced with the good components for athletic activities.

Adidas is another brand that offers running shoes, apparel, and accessories. Their products are
for men, women, and kids. Also, they offer for sports, brands, customize and mlcoach.

Converse also offers running (Athletic) shoes, chucks, sneakers, clothing, eyewear, and boots.
These are for Men, Women, and Kids.

Other Retailers that Sell the Product

My product is used internationally for athletic activities and there are many retailers who also
make sales of this running shoes product. Some of these competitions include:

Foot Locker

Eastbay

Finish Line

Running Warehouse

What the Competitions Offer for Consumer Purchase

I have observed from these competitors that they offer outstanding quality images on their
websites, attractive graphics, detailed description of the products, use of customer languages,
best and affordable prices, free shipping aid, instant and available customer care services,
reasonable money back policy guarantee and valid contact details.

Retail Price Range for the Competitions

The retail prices of these competitions vary with respect to the competition individual
differences.

For Foot Locker, their running shoes range between $59.99 and $199.99

For Eastbay, their running shoes also range between $0 and $250

For Finish Line, their running shoes range between $0 and over $200

Forecasting and Seasonality

Product Seasonality
This product is a footwear, though it’s designed for athletic activities, which definitely makes it a
seasonal product. But there are different seasons for athletic activities, which may vary with
respect to sporting time in different locations. However, it depends relatively. We may assume
it’s seasonal or not.

Importance of Safety Stock to the Product

Safety stock is very important to this product. There are very important issues that could warrant
having safety stock. These are:

1)Inaccurate Forecasting

The supply chain and manufacturing operation of the business of this product may be vary. Since
I’m just a retailer and would always expect the products supplied from the brand. Therefore,
sales process may not be integrated properly into the right management application.
Furthermore, there may be a lack of accountability that is not up-to-date, other times, the data
being entered may not be totally scrutinized by the management. Hence, when these occur,
safety stock will help the business retain its life and efficiency.

2)Manufacturing Shortages

Complaints may come from the manufacturer, on the accounts of shortage of raw materials,
price inflation, shortage of labors, and high demand for the product. When these occur, safety
stock would help balance the business.

3)Transportation Delay

This is always a general excuse from different manufacturers. They tie this to so many reasons
such as unexpected negative occurrences, breakdown of transportation vehicles, hurricane
prediction, and related risks. Safety stock will guide against these factors and would keep the
business running on.

CONCLUSION
At this point, this product is thriving very successfully in the market. Annually, the product sales
are growing effectively and the rate of increase is tremendously reasonable. It had been
observed that people find it very necessary to change their shoes as often as they could, most
especially when it is constantly used for sporting activities. Nowadays, runners feel much better
running with shoes that are light weighted and less cushioning, and this makes them seek to buy
the best products that suit their desires and wants. Therefore, this product is really booming the
market. #

I feel very happy to run the sales of this product, though there are challenges faced by many
retailers of this product. This is a normal factor in the business world. However, the Nike running
shoes are the best products to deal with. The statistics of the outstanding success of Nike from
Forbes posts and other related posts have been fantastic. The quality of the product keeps
helping it thrive successfully in the market. As a result, I’m good dealing with this product and
will always ensure the ethics of the business is strictly adhered to.