Assignment

Course: Principal of Marketing

Submitted to: Sir Rao Bakhtiar Yawar

Submitted by: Muhammad Tayyab Chishti (LCM 3927)

Muhammad Salman Sheikh (LCM 3924)

Ali Haider Gorsaya (LCM 3913)

Wajahat Ali (LCM 3817)

History

Nike, Inc., once (1964–78) Blue Ribbon Sports, American sportswear organization
headquartered in Beaverton, Oregon. It was established in 1964 as Blue Ribbon Sports by Bill
Bowerman, an Olympic style events mentor at the University of Oregon, and his previous
understudy Phil Knight. They opened their first retail outlet in 1966 and propelled the Nike
brand shoe in 1972. The organization was renamed Nike, Inc., in 1978 and opened up to the
world two years after the fact. By the mid-21st century, Nike had retail outlets and merchants in
excess of 170 nations, and its logo—a bended check mark called the "swoosh"— was perceived
all through the world.

Target Market: -Nike is unique in the fact that they have a very general targeted
demographic segment. Main Target of Nike is “All Athletes”. However, it doesn’t mean that
Nike cannot use market segmenting. There are Four Main Types of Variables that Nike mainly
use to Target Their Customer.

1. Demographic Variables: Demographic segmentation is a factor utilized by Nike to

target people as per their age, life-cycle stage, sex, occupation, and age. Nike basically
targets customers who are between the ages of 15-40. The organization caters the two
people competitors similarly to construct long haul brand reliability. Nike tends to
showcasing efforts about youthful grown-ups endeavoring to resemble their competitor
symbols. For instance, In 2014 World Cup Nike built up a video featuring. Nike
supported soccer competitors with high school soccer players. Nike as of late propelled
assortment of women's. 20% of Nike's incomes depend on deals of items focused at
ladies. Nike doesn't target buyers dependent on race, ethnicity, religion or social class.
2. Geographic Variables: Nike uses geographic segmentation to showcase countries,
areas, urban areas, and populace thickness in an unexpected way. For instance, in the
United States Nike centers on American football and baseball makes to send numerous
ad showcasing efforts about football and baseball items utilizing competitors explicit to
those games. Anyway sports will in general differ by area, so it is probably not going to
see American football or baseball ads in Europe. Rather, you are bound to see Soccer,
where Nike utilizes soccer stars to showcase Nike's items. Nike's biggest markets are
North America followed by Western Europe and China. In these topographies Nike's
showcasing endeavors are to a great extent concentrated on urban regions with high
market densities.
3. Behavioristic Variable: Focusing on dependent on this property is the virtuoso of
Nike. While Nike every so often centers on praising specific item qualities, the
organization to a great extent centers around how their items cause buyers to feel. The
 advantage desires for the organization's items are plainly characterized: You are a
competitor. Nike items cause you to feel athletic! What's more, with social division, Nike
tries to construct client reliability. At the point when clients create steadfast practices
towards a particular organization, the organization receives benefits by accumulating
gradual deals and piece of the pie. In such serious market like the one Nike partakes in, it
is critical to pick up and hold buyer devotion. By furnishing devour with quality, decision
and development the organization exceeds expectations in this domain.
4. Psychographic Variable: Nike also uses psychographic segmentation to target
people with explicit ways of life and characters. To utilize this variable adequately Nike
must objective people who appreciate sports. Regardless of whether it is playing, viewing
or essentially discussing sports, these exercises shape characters and ways of life. Nike's
showcasing endeavors are focused at making a "feeling" that rises above the item. Nike
encourages a mentality, it builds up a way of life. Occasions, for example, Nike: Run
with Me, Sports Improvement Clinics, Social Media challenges and athletic and non-
athletic supports go far to make network and a sentiment of "having a place" to the Nike
family.

Differentiation: - Nike uses the differentiation in such a way that the company is established
as the standard in the athletic wear. The company is still focusing on the product line so that they
are able to produce high quality products in order to catch the customers’ expectations. The
company doesn’t have variety of products. They simply rendered the athletic shoes, sports’
outfit, & the very limited number of additional products. Their focus is clear : give the athlete the
equipment they need to succeed. It helps the company to make the trustful suppliers that help
them by providing the high & best quality of raw materials which help them in making of high
quality product.

Nike positioning strategy: -The Positioning articulation of Nike is "For genuine

competitors, Nike gives certainty that gives the ideal shoe to each game". In the present serious
condition, Nike, one of the worldwide pioneers in outdoor supplies industry, has set up a solid
situation for improving athletic way of life.
The Positioning explanation of Nike is "For genuine competitors, Nike gives certainty that gives
the ideal shoe to each game". In the present serious condition, Nike, one of the worldwide
pioneers in outdoor supplies industry, has built up a solid situation for improving athletic way of
life. It's the main games producer on the planet. It is the main outdoor supplies Company in the
United States and hundred and ten nations. Be that as it may, it has become the enthusiasm for
everybody to utilize its image items that make the Nike Just Do It feeling for the opposition.

The shopper's view of brand impacts their purchasing choice in sports industry, so Nike
consistently has had the option to position to client's desire and athletic dream that is supported
by genuine athletes.

Its Products offer a wide scope of decisions for the people; from athletic gear, athletic shoes, to
garments. It has constantly attempted to focus on the world's childhood populace through ball
and a lot progressively famous games far and wide. Nike banded together with Michael Jordan to
have his name Jordan shoes for ball and structured Jordan I, Jordan II and followed by some
more. Nike's showcasing technique is acknowledged to be a significant part of the organization's
prosperity. Nike is situated as a top notch brand, selling all around structured and over the top
expensive items.

The Nike's compelling Marketing Mix Program bolsters the brand situating in the objective
market. Its item is viewed as exceptionally powerful and agreeable to the competitors. It has
commanded United States sports advertise. It is perceived for the nature of its shoes and has
picked up the notoriety everywhere throughout the world. Because of its more excellent shoes,
its Prices are normally higher than the Nike genuinely centers on its athletic items, instead of
focusing on in vogue suppliers. It has occupied with the social wonder on the planet with its
reality's most watched occasions like Basketball and Soccer. Additionally, it's fruitful in picking
up the consideration of the United States competitors with its most viewed game NFL. The
Brand substance of Nike implies a one of a kind method of communicating sport in types of
execution, while its Brand character is earnestness of competitors and worldwide portrayals. For
instance, Nike + I case sport unit changed the manner in which individuals run and made better
running experience. Nike picks free wholesalers. NIKE sells its items through around 22,000
retail accounts in the U.S and licensees in different nations.
Marketing Mix: - Nike Inc. known for the athletic foot ware and sports equipment such as
head & wrist bands, equipment bags, T- shirts etc. Its marketing mix (4Ps) find the profit &
growth of the athletic footwear, apparel, & equipment business. Nike has a marketing mix of
only athletic shoes which are especially design for basketball & soccer players. Now these
products are used for both athletic & leisure activities. Marketing mix helps the company from
powerful competitions in every items. The competitors are Adidas, Puma & Under Amour etc.

Following are the brief explanation on the components of Marketing mix: -

 Product:-

Nike earnings comes from the change in its product. The company invests its earning in the
research & development in its product and make upgrade in the current products. The company
add some new technologies in the product line to achieve customer satisfaction. Following are
the some product of the Nike:-

 Shoes
 Apparel
 Equipment & accessories

Nike’s shoes are very popular around the world among the other products. The company
gradually add in the shoes product line like basketball shoes, cricket shoes, football shoes etc. the
company provides other stuff in the market like outfits, accessories & equipment. Nike enlarge
its marketing mix according to the target marketing & market segmentation.

 Place / distribution: -

Nike sells its product where the people can access easily. Nike have many franchise around the
world. All the products are available at major retail stores. Following are the places formed by
the Nike’s distribution strategy, according to their importance: -

 Retail stores
 Online store
 Retail outlets
Retail stores are known as the important places where Nike sold its product & the people can
access easily. These retailer include not only the firms like Walmart & Carrefour but also small
local & regional stores. This 4Ps also show that the people can easily buy the products through
online website. Moreover, the company also setup company outlets all around the world. These
outlets run by the company. Nike control the distribution & sale of its products through its online
stores & factory outlet.

 Promotion: -

Nike uses some tactics as an element of marketing communication to communicate with its
target market. To fulfil such purposes it uses its strength of effective promotion of its
products, in order to maintain strong brand image. Company utilizes above method to
consume in persuading to safe the products & following the promotional activities, arranged
in accordance to its importance:

 Advertising
 Personal setting
 Direct marketing
 Sales promotion
 Public relation

Among them advertising is the one of the most effective & biggest contributions to Nike’s
ability to attract customers. The company relies on the advertisement especially that involves
high advance celebrity endorses such as professional athletes & sportsmen & it also includes
professional setting through personnel who persuade the target customers to buy the company’s
product. Such direct marketing involves direct communications with colleges for sales promotion
& attracting the consumers, Nike occasionally discount & special offers. Moreover in public
relation the company sponsors & provides financial aid to other organizations.

 Pricing :-

One of the important marketing mix identifies the price that company applies to maximize the
profit which attracting the desired shares of the multinational market. Its investment is linked
with the strategy to offer its products at a premium. Also considering the current marketing
conditions & sets its price & points ranges & applies the following tactics:

 Value based pricing strategy

 Premium pricing strategy

In the value based strategy, the company considers the consumers perspective about the value of
its product. Such value is used to determine the maximum prices that the consumers are willing
to pay for its product. In relation with the premium pricing strategy involves high pricing, high
branding strategy that the Nike products are of good quality rather than the competitors’ product
& to meet requirement. The company uses the tactics of the advertisement by selecting the high
profile celebrities which is an indication of premium branding. In the 2014, the company
generates the high sales & revenue. This trend continues & the company enjoys the sale &
revenue which gradually increases the price. Such trend links to the socio-cultural & economic
changes to the industrial environment& adjust the prices. It also uses the pricing strategies to
maximize the profit while emphasizing high value in promoting its products & brand.