1

2
 TABLE OF CONTENTS
ABSTRACT.............................................................................................................5
NIKE,s ORIGIN AND HISTORY..........................................................................5
GEOGRAPHICAL REACH...................................................................................6
SALES AND MARKETING...................................................................................6
FINANCIAL POSITIONS.......................................................................................7
STRATEGY.............................................................................................................7
NIKE’s MARKETING MIX.....................................................................................8
PRODUCT............................................................................................................9
PRICE..................................................................................................................10
PLACE................................................................................................................11
PROMOTION.....................................................................................................12
WHY NIKE IS EVERYONE’S FAVOIRITE.......................................................13
1. Mission...........................................................................................................13
2. Strategy..........................................................................................................13
3. Customer focus...........................................................................................14
FUN FACTS..........................................................................................................14
How much did the creator of the Nike swoosh (logo) charge?..........14
HOW GREEN IS NIKE?...................................................................................14
CONCLUSION......................................................................................................15
REFERENCE........................................................................................................15

3
NIKE
ABSTRACT
In this paper, we present an elaborate analysis of the marketing mix employed by Nike
in its marketing strategy. The marketing mix is conducted on the basis of the concept of
"marketing mix" which is usually referred to as the "4Ps" as an important means of
effectively interpreting as well as translating the marketing strategy into practice as
noted by Bennett (1997). A recommendation is also provided.
MISSION STATEMENT :

‘’To bring inspiration and innovation to every athlete* in the world.’’

*If you have a body, you are an athlete’’

NIKE,s ORIGIN AND HISTORY

Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of
Oregon track athlete Philip Knight and his coach Bill Bowerman in January 1964. The
company initially operated as a distributor for Japanese shoe maker Onitsuka
Tiger (now ASICS), making most sales at track meets out of Knight’s automobile.

According to Otis Davis, a student athlete whom Bowerman coached at the University of
Oregon, who later went on to win two gold medals at the 1960 Summer Olympics,
Bowerman made the first pair of Nike shoes for him, contradicting a claim that they were
made for Phil Knight. Says Davis, “I told Tom Brokaw that I was the first. I don’t care
what all the billionaires say. Bill Bowerman made the first pair of shoes for me. People
don’t believe me. In fact, I didn’t like the way they felt on my feet. There was no support
and they were too tight. But I saw Bowerman make them from the waffle iron, and they
were mine
In 1964, in its first year in business, BRS sold 1,300 pairs of Japanese running shoes
grossing $8,000. By 1965 the fledgling company had acquired a full-time employee, and
sales had reached $20,000. In 1966, BRS opened its first retail store, located at 3107
Pico Boulevard inSanta Monica, California next to a beauty salon, so its employees no
longer needed to sell inventory from the back of their cars. In 1967, due to rapidly
increasing sales, BRS expanded retail and distribution operations on the East Coast, in
Wellesley, Massachusetts.

By 1971, the relationship between BRS and Onitsuka Tiger was nearing an end. BRS
prepared to launch its own line of footwear, which would bear the Swoosh newly
designed by Carolyn Davidson. The Swoosh was first used by Nike on June 18, 1971,
and was registered with the U.S. Patent and Trademark Office on January 22, 1974.

4
In 1976, the company hired John Brown
and Partners, based in Seattle, as its first
advertising agency. The following year, the agency created the first “brand ad” for Nike,
called “There is no finish line”, in which no Nike product was shown. By 1980, Nike had
attained a 50% market share in the U.S. athletic shoe market, and the company went
public in December of that year.

Together, Nike and Wieden+Kennedy have created many print and television
advertisements, and Wieden+Kennedy remains Nike’s primary ad agency. It was
agency co-founder Dan Wieden who coined the now-famous slogan “Just Do It” for a
1988 Nike ad campaign, which was chosen by Advertising Age as one of the top five ad
slogans of the 20th century and enshrined in the Smithsonian Institution.Walt Stack was
featured in Nike’s first “Just Do It” advertisement, which debuted on July 1, 1988.
[15]
 Wieden credits the inspiration for the slogan to “Let’s do it”, the last words spoken
by Gary Gilmore before he was executed.

Throughout the 1980s, Nike expanded its product line to encompass many sports and
regions throughout the world.In 1990, Nike moved into its eight-building World
Headquarters campus in Beaverton, Oregon

GEOGRAPHICAL REACH
NIKE is based near Beaverton, Oregon; it has a 400-acre site with more than 40
buildings. It also has regional headquarters in Hilversum, the Netherlands (for the
EMEA region) and Shanghai, China (for the Greater China region) and branch offices
and subsidiaries in more than 50 other countriesIn the US, NIKE owns half a dozen
significant distribution centers, four in Memphis, Tennessee, one in Dayton, Tennessee,
and one in Indianapolis, Indiana. The most significant distribution facilities outside the
US are located in Laakdal, Belgium; Taicang, China; Tomisato, Japan; and Incheon,
KoreaThe company generates nearly 40% of sales in North America (mostly the US)
with another quarter in Europe, the Middle East, and Africa. Greater China account for
about 20% of revenue and some 15% for the rest of the Asia-Pacific region and Latin
America.

SALES AND MARKETING

NIKE generates about two-thirds of sales from wholesale customers such as retail
accounts (footwear and sporting goods stores; athletic specialty stores; department
stores; skate, tennis, and golf shops), independent distributors, licensees, and sales
representatives. It also sells directly to consumers through a strong global network of
company-owned stores and its growing ecommerce site

NIKE markets its footwear and other products globally through diverse advertising and
promotional programs and campaigns, including print, social media, online advertising,

5
and endorsement contracts with celebrity athletes. Total advertising and promotion
expenseswere $3.6 billion, $3.8 billion and $3.6 billion for fiscal years 2020, 2019 and
2018, respectively

FINANCIAL POSITIONS
NIKE's revenue has been consistently growing for a few years with the exception of
2020. Despite the minor decline on that year, NIKE's revenue has had an overall growth
of 16% over the last five years. Its net income has climbed for three years, dropped in
2019, but bounced back in 2020. In fiscal 2020 (ended May) the company reported
revenue of $37.4 billion, down 4% from the prior year. It saw decline in all segments.
Net income, adjusted for non-cash items, generated $3.7 billion of operating cash inflow
for fiscal 2020 compared to $5.3 billion for fiscal 2019. The decrease primarily reflects
lower Net Income, resulting from the unfavorable impacts of COVID-19.

Cash at the end of fiscal 2020 was $8.3 billion, an increase of $3.9 billion from the prior
year. Cash from operations contributed $2.5 billion to the coffers, while investing
activities used $1 billion, mainly for capital expenditures. Financing activities provided
another $2.5 billion from proceeds of borrowings

STRATEGY
NIKE's strategy is to achieve long-term revenue growth by creating innovative, "must-
have" products, building deep personal consumer connections with its brands and
delivering compelling consumer experiences through digital platforms and at retail.
Since fiscal 2018, through the Consumer Direct Offense and NIKE's Triple Double
strategy, the company has focused on doubling the impact of innovation, increasing its
speed and agility to market and growing its direct connections with consumers. In June
2020, the company announced a new digitally empowered phase of the Consumer
Direct Offense strategy: Consumer Direct Acceleration
On July 22, 2020, management announced a series of leadership and operating model
changes to streamline and speed up strategic execution. These changes are expected
to lead to a net loss of jobs, resulting in pre-tax, one-time employee termination costs of
approximately $200 million to $250 million, which is expected to be incurred primarily
during the first half of fiscal 2021, in the form of cash expenditures.
This next phase of NIKE's Consumer Direct Offense is expected to drive sustainable
growth and profitability as the company accelerates NIKE to a digital-first company. The
company is committed to the execution of this strategy, despite the short-term adverse
impacts to business from a novel strain of coronavirus (COVID-19). As such, its long-
term financial goals on average, per year, remain the same

6
NIKE’s MARKETING MIX
Nike is a famous global brand of sports shoes and gear. Known for its athletic and
stylish products, the brand has acquired international fame. The company also sells its
products through its online stores in several countries. The most critical factors driving
Nike sales are product design and quality. While its products are designed for athletic
use mainly, they are equally good in terms of fashion and style. Not just sporty, but its
shoes and apparel are trendy and fashionable too.  Founded in 1964, the brand was
renamed Nike in 1973. The ‘Just Do it’ slogan and ‘Swoosh’ logo of Nike are known all
over the world and differentiate it from the other sports shoe brands.Nike offers a broad
product range, and its brand name and popularity have kept rising with time. Its main
competitors are Adidas, Reebok, Under Armour, FILA, Skechers, New Balance, and
Puma. The company targets young customers mainly. Nike customers are primarily in
the 15-45 age group. Its target market also includes female customers as well as
teenagers. However, to grow its appeal among younger customers, the company has
introduced an excellent range of products for kids. You will see young celebs and
athletes in Nike ads as well as teenagers.
Through its marketing mix, Nike Inc. strengthens its capabilities to protect its business
from the strong force of competition. The company competes against various firms
involved in the footwear, apparel, and athletic equipment markets. For example, the
business operates in the same markets as Adidas, Puma, Under Armour, ASICS, and
VF Corporation. The Porter’s Five Forces analysis of Nike Inc. shows that these firms
exert a strong competitive force in the industry environment.
Here is its marketing mix that analyses the 4 P’s – Product, Price, Place, Promotions.

7
PRODUCT

Nike offers a vast range of products, including sports shoes, apparel, gear, and
accessories.  It makes and sells products for men, women, boys, and girls. It also offers
a broad range of shoes, including different varieties and styles suited for use in various
sports. For example, there are sports shoes for basketball, football, running, gym, and
even lifestyle shoes available from Nike.  It also offers sportswear like tech fleece and
Windrunner for athletes, shorts, t-shirts, and pants.
Some of the main categories of products for men by Nike are as follows:
 Shoes
 Compression and Nike Pro
 Tops and Tshirts
 Hoodies and Pullovers
 Jackets and vests
 Pants and tights
 Shorts,Surf and swimwear
 Socks
 Accessories and equipment
Shoes are the most popular products from Nike Inc. The business gradually adds more
product lines in this category. For example, the company now offers running shoes,
tennis shoes, and shoes for a variety of other sports, including cricket. Nike also sells
apparel, such as jerseys, shorts, and related products. In addition, the company’s
product lines include accessories and equipment, such as golf clubs. These products
are available under a number of the company’s brands, including Air Jordan, Hurley,
and Converse. Based on this element of the marketing mix, Nike expands its product
mix to address the needs of its target markets and market segments.
ALSO, This element of the marketing mix enumerates the organizational outputs offered
to target consumers. 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

8
growth strategies, the business integrates new
technologies into its product lines to improve product
effectiveness and customer satisfaction.

PRICE

One of the critical differentiators for Nike is its ability to charge higher prices than its
competitors. However, this ability is based on the premium quality of its products. Its
products are good looking, elegantly crafted, suited for sports use, and durable. The
premium quality of its products enables it to charge premium prices for them. However,
its popularity and brand image plus the customer loyalty it enjoys are also important
factors that support its premium pricing.Nike does not set prices according to the market
condition or the costs of manufacturing. Instead, it sets prices according to the
estimated value of a product. Some more shoe brands and the leading competitors of
Nike have also introduced an excellent range of shoes in the premium price segment.
While there is price competition in the industry and prices matter for a large part of
middle-class customers, Nike’s pricing strategy has never impeded growth, and it
continues to rule as the largest shoe brand. ts marketing strategy is one of the key
factors that the company continues to find growth despite the premium prices. It enjoys
a large and loyal customer base as well as the strongest position in the shoe industry.
Marketing continues to drive the demand for Nike products.
ALSO, 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

9
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 brand.

PLACE

Nike sells its products to customers globally through both online and offline channels.
These products are available at the brand’s retail outlets and its distribution centers
operating globally.  It sells its products to wholesalers both in the US and international
markets. Its direct to customer channels include both inline and factory retail outlets as
well as online sales through its website. Nike’s global distribution system is also divided
into global brand divisions. The company has its headquarters in Beaverton, Oregon,
United States. However, the company has extended its business network globally and
sells to customers in nearly all regions of the globe through physical and online
channels including e-commerce websites such as Amazon. The company also has a
large and strong supplier network. It has outsourced nearly all its production to external
suppliers. As of 2020, Nike operated a total of 1,096 stores throughout the world. 338 of
these stores were located in the US alone.
ALSO,
We can also say that, 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

10
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.

PROMOTION

Nike’s logo and slogan differentiate it from others and give the brand a distinct identity in
the crowd of the brands. It provides the brand with a uniqueness. Apart from that, the
brand utilizes a mix of other strategies for the promotion of its products and brand. Nike
is a well-known company, and it gains a lot of publicity from the news resources. The
brand promotes itself through a  mix of traditional and modern promotional strategies. It
advertises its products through online and offline channels. Apart from that, Nike uses
sponsorships of sports events and sports personalities for the promotion of its products.
Nike has grown its use of digital marketing channels for the promotion of its products.
The company uses digital video marketing in plenty to promote Nike products. It
frequently posts videos to YouTube, including educational and promotional videos. The
promotional videos of Nike mostly include athletes and sports personalities. However,
many of these are motivational videos that are targeted at the sports community mainly.
Its marketing strategy and methods have been appreciated widely for their
effectiveness. Nike has also maintained a strong brand image. Apart from marketing
and product quality, its investment in CSR has also helped it strengthen its social
image. These things are absolutely critical for large businesses because of the public’s
concern for the social image of the businesses they
ALSO,
We can say that,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

11
 3. Direct marketing
4. Sales promotions
5. Public relations
Advertising is one of the biggest contributors to Nike’s ability to attract customers. The
company heavily relies on advertisements, especially those that involve high-profile
celebrity endorsers, such as professional athletes and sports teams. This element of the
company’s marketing mix also includes personal selling through sales personnel who
persuade target consumers to buy the company’s products. For example, sales
personnel at Niketown retail outlets are trained to use such persuasion. The company’s
direct marketing activities involve direct communications with colleges, local sports
teams, and other organizations. In the context of the 4Ps, direct marketing refers to
direct contact with organizations for the purpose of promoting products to the members
of such organizations. In addition,

Nike occasionally applies discounts and special offers to attract more customers and
generate more sales. These discounts and offers form the company’s sales promotions
tactics. Moreover, in public relations, the company sponsors and provides financial
support to other organizations, such as community-based networks, to promote its
athletic shoes, apparel, and equipment. Based on the tactics included in this element of
Nike’s marketing mix, the business depends on its relations with high-profile endorsers
to succeed in promoting its business and products to the international sporting goods
market.

WHY NIKE IS EVERYONE’S FAVOIRITE

One of my favorite companies to watch is Nike. And is also every one’s favoirite .
Following are the reasons for the favoiritism that nike enjoy’s
1. Mission
Their mission is to “bring inspiration and innovation to every athlete* in the world (*if you
have a body, you’re an athlete).”
Like other great branding firms, Nike understands that they are not in the business of
selling athletic shoes and apparel. Instead, they inspire people to become better
athletes and achieve their personal best (Just Do It!).
All great brands recognize that their products and services are ultimately just vehicles
for addressing higher aspirational needs. By defining their business according to what
customers aspire to accomplish rather than limiting their identity to current products,
Nike also encourages employees to innovate and explore new and better ways to fulfill
their mission to “bring inspiration and innovation to every athlete.” This now goes well
beyond athletic shoes and apparel, well beyond anything founder Phil Knight could have
imagined.
12
2. Strategy
Additionally, a key part of Nike’s strategy is its
“category offense.” In 2008, the company reorganized operations around individual
sports and, according to Nike, sales have risen 70 percent since. They dominate the
athletic shoe market in many different sports, blitzing the nearest competitor with 62
percent market share vs. Skechers’ 5 percent.
3. Customer focus
According to Mark Palmer, Nike’s CEO, the reason they are so successful with each
market is their focus on the athletes’ needs in each sport or, in my vernacular,
according to what athletes in each sport are trying to accomplish.

FUN FACTS
How much did the creator of the Nike swoosh (logo) charge?

It is one of the best known logos in the world and Nike one of the largest multinationals
on the planet. It is worn by Cristiano Ronaldo, LeBron James or Rafa Nadal after
payment of millionaire contracts and Michael Jordan made it iconic in the nineties. What
perhaps few know is that the swoosh, the name of the Nike logo, represents a wing of
the Greek goddess Athena Niké and was designed by Carolyn Davidson in 1971. The
Oregon brand then gave her $ 35 for the design, according to Europa Press.Davidson
was a graphic design student and was commissioned by Phil Knight, an associate
professor at Portland State University where the young woman studied. There, in
Oregon, one of the greatest brands in history would be born. Knight was preparing a
revolution with lightweight shoes that would multiply the performance of athletes around
the world.’’ I don't like it, but it will grow with me,” were Knight's words to Davidson
before thanking him for the services rendered. There seemed to end the story. 12 years
after the Blue Ribbon Sports took the name of Nike, Inc, Knight called Davidson to meet
for lunch. What was not expected was that the creator of Nike came with a gold ring and
brilliant with the logo of the swoosh, with a patent that registered her as the creator of
the icon and with a number that was never known of the company's shares, one of the
most valued in the world today.


HOW GREEN IS NIKE?

While Nike's taken strides to increase its eco-friendliness, joining the Sustainable
Apparel Commission and implementing a number of reusable materials in its clothing, it
still has a way to go.The primary environmental criticism following Nike has been its
refusal to eliminate hazardous materials from its supply chain. As pointed out by
Greenpeace, this affects everything from factory workers to waterways to consumers.
The hazardous chemicals pollute the environment, threaten to poison those who work
with them, and allow a potential health risk to persist among users of Nike's apparel.

13
Nike has claimed to be working toward elimination of
these toxic chemicals. While these claims have been
met with dubiousness over the past couple years, in 2018, Nike showed some serious
signs of growth, expanding its PFC-free portfolio to 93% of products.

CONCLUSION
There are important lessons for all of us in this. First, never define your business
according to the product, service, or technology you sell; they are just means to a
greater end. Instead, sell the aspirational goal that your solution enables customers to
achieve.
Second, implement your own category offense by determining all the tasks your target
customers are trying to accomplish within your strategic domain, and where they
struggle given current solutions. The insights you discover can enable you to bring to
bear your full array of capabilities on what matters most to customers, generate new
and improved solutions, and establish competitive advantage

“Our function is to provide knowledge and insight. We are the

global repository for the science of human performance and
potential” quotes Matthew Nurse, the Senior Director of the
Nike Explore Team Sport Research Lab.
The mission of Nike Inc. is to drive product innovation for athletes
everywhere.Countless ideas are tested in pursuit of aiding performance, injury risk
reduction, enhancing perception and feel, and delivery of innovative products to
athletes.

REFERENCE
 https://sportsfinding.com/how-much-did-the-creator-of-the-nike-swoosh-logo-charge/19201/
 https://www.britannica.com/topic/shoe
 https://nikecompanyblog.wordpress.com/about-us/
 https://www.nike.com/help/a/nikeinc-mission
 https://www.thestreet.com/lifestyle/history-of-nike-15057083
 https://www.vault.com/company-profiles/general-consumer-products/nike-inc

 U.S. Department of Commerce – International Trade Administration – Textiles, Apparel &

Sporting Goods.

 U.S. Department of Commerce – International Trade Administration – The Consumer Goods

Industry in the United States

14
  Nike Inc. –
Online Store.

 Nike Inc.’s
Website.

 Nike, Inc. –
Form 10-K.

15