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IMC TOOLS AND TECHNIQUES | NIKE

ACKNOWLEDGEMENT

I would like to begin by expressing my deepest gratitude and appreciation to Institute of


Management, Nirma University for providing an opportunity to study the subject of
Marketing Management- 2 as a part of my course. This subject has enhanced our purview
and understanding of marketing and various other dynamics related to it. I consider
myself very fortunate for the same.

I am very grateful to Prof. Mayank Bhatia for being the facilitator of this course and for
providing us with a platform to understand real-life cases which has helped us to
understand the aspects of Marketing. I would also like to thank him for his extensive
guidance and support throughout the making of this report. His valuable insights based
on his rich experience have helped me to analyze the case in a successful manner.

IMC TOOLS AND TECHNIQUES | NIKE


TABLE OF CONTENT

1. INTRODUCTION

2. INDUSTRY OVERVIEW

3. COMPANY OVERVIEW (MAIN BRAND)

4. COMPANY OVERVIEW (COMPETITOR BRAND)

5. IMC TOOLS AND TECHNIQUES

6. SIGNIFICANT CHANGES IN PROMOTION MIX TO ADDRESS


COVID-19 SITUATION

7. SUGGESTIONS FOR FUTURE PROMOTIONAL ACTIVITY OF NIKE

8. REFERENCES

IMC TOOLS AND TECHNIQUES | NIKE


INTRODUCTION
Integrated Marketing Communications (IMC) is a brave new digital landscape today, with
constantly evolving applications of social media, technology and new software joining the
industry at a high clip that threatens to give you a headache. Over the course of the Internet
and social media, conventional advertising promotion strategies for targeting customers
have evolved, bringing nuance to the marketing mix. IMC has the potential to successfully
target clients with the desired message that conveys knowledge, generates test use, and
eventually achieves the brand trust to an organization's goods or services.

Brand marketing is a vital activity in itself that involves a large-scale commitment in time,
cash to spend and expertise. Over time, companies around the globe have understood the
value of selecting, convincing, informing and even improving the intended consumer market
and making the biggest effect on them, giving them an advantage.

The marketing specialists have advocated the employment of a holistic integrated marketing
communications (IMC) approach in order to attract the interest of the splintered public.
IMC's numerous methods such as advertisement, targeted marketing, product promotion,
personal sales and public relations allow the schematic of brand promotion. Successful
incorporation of such devices makes customer interaction effective.

IMC TOOLS AND TECHNIQUES | NIKE


INDUSTRY OVERVIEW

When more and more individuals gradually take up fitness and leisure activities instead of rising
health consciousness and stress control, the sports equipment and apparel industry is growing to
be the largest in the world. In addition, the rise in spending on athletic preparation and growth by
children is attributed to increased understanding of the advantages of participating in sports
activities, such as increased focus and problem-solving ability, boosting the market for sports
equipment and clothes. In addition, the emerging model of the education sector encourages the
development of the sports industry and its associated sectors. In addition, growth in physical
education and sports training in universities has greatly increased the sensitivity toward sports and
health. In addition, the growth in global, national and international tournaments held by different
governments across the globe is contributing to increased youth engagement and involvement in
sports activities. This in turn fuels the market demand for athletic equipment and clothing, which
contributes substantially to the overall market growth.

As both a passive and aggressive means of entertainment, sports have acquired prominence. With
a substantial share of the cost of athleisure clothes and footwear, customers are increasingly
investing more on sportswear. Sport is a market full of extremes in the 21st century. With markets
becoming ever more competitive across the globe, consumer analysis is now on the major
marketing agenda for sporting equipment and accessories.

The worldwide demand for sports equipment and accessories is growing strongly and is marked
by the accelerated introduction of emerging technology and openness to developing trends. E-
commerce, which is now a common shopping channel that also gives customers the advantage of
comparing all the sports equipment brands available, is booming tremendously in the industry. For
all sporting accessories and equipment, it is a one-stop shop that, in essence, improves salability in
the worldwide market for sports equipment. The size of the global sports equipment and clothing
industry was estimated at $470.403 million in 2019 and is projected to rise to $817.170 million by
2027 at a CAGR of 7.2 percent. With $138,758 million in 2019, North America was the biggest
supplier to the worldwide sports equipment and clothing industry. Sports equipment and apparel

IMC TOOLS AND TECHNIQUES | NIKE


are athletic products used for participating in sports activities. Consumers, however, actively wear
athletic attire during non-sporting hours.
Due to many existing industry leaders in retail, e-commerce, sports stores and wholesale and many
new entrants entering constantly, the sports equipment and accessories market is highly
competitive. It also faces adverse competition with imitation sports equipment and low-quality
models with cheaper accessories.

On the basis of product type, sports type, distribution channel, and location, the worldwide sports
equipment and apparel market is segmented. The industry is divided into equipment, clothing and
shoes depending on product type. It is divided into cycling, outdoor, golf, other racket sports,
athletics, exercise, football/soccer, other team sports, winter sports, water sports, and others by
sports category. It is broken into online and offline in terms of the delivery system. Across North
America, Europe, Asia-Pacific, and the rest of the world, area wise, the athletic equipment and
clothing industry is examined.

Sports Equipment and Apparel Market (By Product Type)

The Equipment segment was the fastest


growing segment with CAGR of 7.2%

IMC TOOLS AND TECHNIQUES | NIKE


Sports Equipment and Apparel Market (By Distribution Channel)

The offline segment was the


dominant segment in 2019.

The offline sports equipment and clothing industry segment was the dominant segment in 2019,
based on the distribution channel, and is expected to see notable growth during the forecast period.
Increased penetration of offline retail formats such as supermarkets and hypermarkets in both
developed and developing markets can be due to the rise in this sector. In addition, the one-stop
solution offered by these retail formats makes it a very common consumer shopping alternative. In
addition, these store models give consumers a wide variety of goods at a fair price and are typically
situated in locations that are readily available, adding to the overall appeal of this market.
As their main growth strategy, the players in the sports equipment and apparel industry have
embraced product launch, acquisition, and partnership to improve profitability and strengthen their
role in the sports equipment and apparel market share. The key players include Decathlon S.A.,
Nike, Inc., Adidas AG, Puma SE, Under Armour Inc., Amer Sports Corporation, ASICS
Corporation, Gap Inc., and V.F. Corporation New Balance, Inc.

IMC TOOLS AND TECHNIQUES | NIKE


COMPANY OVERVIEW
(MAIN BRAND) - NIKE

Nike Inc. is a global corporation in the United States specialised in the design, creation,
manufacturing, distribution and selling of clothing, apparel, equipment, accessories and
services. The company is headquartered in Beaverton, Oregon, in downtown Portland. It is
the world's largest retailer of athletic shoes and accessories and a leading producer of sports
equipment, with sales in fiscal 2012 of more than $ 24.1 billion (as at May 31 2012). The
business had more than 44,000 staff worldwide in 2012. The worth of the company itself hit
$ 19 billion in 2014, making it the sports industry's most valuable brand. The Nike brand's
value was $ 29.6 billion in 2017. Nike ranked 89th among the Fortune 500 firms in the
Fortune 2018 list, based on gross sales.

The business was founded by Bill Bowerman and Phil Knight on January 25, 1964, then
called Blue Ribbon Sports, and was formally renamed Nike on May 30, 1971. Inc. Inc. The
company's name derives from a Greek goddess called Nike. Nike offers its own exclusive
goods, as well as Nike Golf, Nike Pro, Nike +, Air Jordan, Nike Trailblazers, Air Force 1,
Nike Dunk, Air Max, Foamposite, Nike Skateboard, Nike CR7, and companies such as
Jordan, Hurley International and Converse as its subsidiaries. Nike was also owned by Bauer
Hockey (later renamed Nike Bauer) and Cole Han and Umbro from 1995 to 2008. The group
also runs discount stores under the Niketown brand, in addition to producing clothes and
sporting goods. With a well recognised "Just Do It" brand with the Swoosh logo, Nike
sponsors numerous professional athletes and sports teams around the world.

IMC TOOLS AND TECHNIQUES | NIKE


COMPANY OVERVIEW
(COMPETITOR BRAND) - ADIDAS

Adidas is Europe's biggest sportswear maker and is second only to Nike internationally.
Created and headquartered in Herzogenaurach, Germany, Adidas is a global company that
develops and markets clothing, apparel and accessories. Adidas' logo is three stripes used as
a brand aid on the clothing and footwear styles of the brand. Nike, Puma, and Under Armour
are some of its major competitors.

Adidas, with a market valuation of 16.67 billion US dollars, was the world's third biggest
footwear brand as of 2019. As of 2018, Adidas had a large share of the U.S. sporting footwear
market. In 2019, total net sales of the Adidas Brand amounted to approximately EUR 23.6
billion. The Adidas Group's North American area also generated 22 percent of the company's
retail net profits that year. Two of the main divisions of the Adidas Brand are boots and
clothing. In 2019, the company created 448 million pairs of shoes and 528 million sporting
apparel units worldwide.

As a result, when it comes to sportswear worldwide, Adidas has become one of the most
famous brands between men and women. In the United States, Adidas is still a very famous
brand. As of 2017, 42 percent of U.S. customers said that adidas clothes, sneakers and
accessories were typically purchased by them. For high income earners in the United States,
Adidas is also a common brand. In 2018, 42.01% of respondents who said their income was
high said they owned clothes, shoes, and footwear from the Adidas brand.

IMC TOOLS AND TECHNIQUES | NIKE


IMC TOOLS AND TECHNIQUES

IMC TOOL I- Advertising


Any company’s main objective is to deliver its final product to it consumers. In expanding
the reach of products among audience and develop the influence of the company, an
advertising plays an important role. Advertising is very important communication tool used
to creating mind share in its targeted audiences. The right advertising strategy is a pillar of
successes of any marketing program. Various types of advertising tools are used to widen
the reach and enjoy the sustainable development. For example: TV Ads, Print Ads, and
Billboards etc.

NIKE ADVERTISING STRATEGY ANALYSIS


1. Use of Emotions and Empathy in Ads (Emotional Branding)

“They are not selling just products, in fact they are selling aspirations”
Nike’s each ad is crafted to evoke the emotions and needs that can be satisfied with Nike’s
product. It does by the traditional narrative by a hero, who is fighting against the society,
self-demotivation, and emerging as victorious against terrible for.
Nike uses the analogy in their advertisement that society is saying that “You Cannot” but
Nike is saying “Just Do it”.
Each Nike Ads inspire, motivates and communicates with the audience that you can do
anything, all you need is to try.
Nike: Find your Greatness
Campaign

IMC TOOLS AND TECHNIQUES | NIKE


2. Personalities from Sports Arena

Nike uses different personalities from sports arena for market their products. The approach
that the organization employs is one that uses existing players who have a strong reputation.
Its advertisement includes athletes like Serena Williams, Michael Jordan, Tiger Woods,
Kobe Bryant and many more athletes.
These advertisements are accepted by the audience because of expertise and trustworthiness
brought by the famous athletes into the advertisements.
Comeback stories of Serene Williams, LeBron
James, and Tiger Woods. Nike wants the
audience to feel if they can do it then we can also
do it.

3. Print Media Ads


Apart from contemporary electronic media, advertisement as a marketing strategy has been
used by print media as a newspaper. The show often takes various forms; it can be seen on
tables, signboards for buses, and other locations.

COMPARISON OF ADVERTISING STRATEGY WITH ADIDAS


1. Objective is to Create Awareness about Products

Adidas objective is to create awareness about their products amongst the targeted audience.
It divides its products according to their uses and select famous personalities for their
advertisements.

IMC TOOLS AND TECHNIQUES | NIKE


For example: They uses celebrities like David Beckham, Agnes Den for the launch of its
new star war collection because Adidas thinks this collection is cool and funky clothes,
shoes etc.

Also using famous athletes for the promotion of their sports apparel collection.

2. Connection with Social Values

Adidas has now sunk its toes into the seas of social consciousness and is connected to
important and profound global values. For example, the "#MyGirls" project in 2013 was
actually intended to empower women by celebrating female athletes and young girls who
loved being involved.

The Adidas awareness initiative started on International Women's Day, rolling out piles of
material through various advertising platforms, showcasing experiences of sportswomen
from across the world.

Conclusion:

Nike Adidas

Emotional Advertising Creating awareness about products.

Personalities from sports arena and their Spreading awareness about social issues
struggles are show to motivate targeted like gender equality, promoting girls
audience if they can do it, you can also athlete etc.
do it.

IMC TOOLS AND TECHNIQUES | NIKE


IMC TOOL II - Direct Marketing
NIKE
In order to sell its latest products to target audiences, Nike Inc. uses direct marketing.
Normally, these new products are highly promoted. To make a bigger impact, however, the
business uses salesmen in target market segments to pursue those companies or individuals.
For instance, at universities and colleges, the business approaches and promotes its goods
to sports organizations. The marketing communications mix of Nike utilizes direct
marketing to create a stronger connection with the customer base and encourages them to
buy the company’s product.

Through customer satisfaction, direct marketing corresponds to the competitive nature of


Nike. For example, the company develops loyalty among target customers who become
more frequently exposed to the Nike brand by directly communicating with target
organizations, schools, colleges, and universities. This factor helps to boost the competitive
advantage of the company and resolve the intense market force described in Nike Inc's
Porter's Five Forces review. This implies that strategic promotion methods are directly
related to the growth of the competitive advantages of the business.

ADIDAS
Adidas is transitioning from product-based marketing to a consumer-oriented strategy in
the modern, evolving market. Allen (2008) claims that direct marketing requires different
techniques used by an organization to connect directly with customers. Using the customer
catalogs of visual images, Adidas has pushed toward digital printing in the media. By
building a significant media presence through print media, Adidas is making use of
telemarketing strategies.

Through different sporting magazines, ESPN magazines, showcasing brand products, and
TV campaigns, the company takes first place in athletic games in a session. Billboards of
the merchandise have been spotted on various streets with the enhancement of the visual
component. Also, the company uses the internet, sports social networks, and mails

IMC TOOLS AND TECHNIQUES | NIKE


consumers directly reminding them of the new products as other means of increasing sales
(Allen, 2008).

IMC TOOL III – SOCIAL MEDIA MARKETING


PHENOMENAL SHOT CAMPAIGN BY NIKE & #FEEL LOVE USE
HATE CAMPAIGN BY ADIDAS

During the FIFA 2014 World Cup, Nike collaborated with Google to create ‘Nike
Phenomenal Shot’.
Once a Nike player scored a goal, display ads were transported to fans in real-time.
Supporters could also rotate their athlete around in 3D, framing them for shots that can be
personalized with filters, captions, and stickers. Once the supporter was done with their
‘Phenomenal Shot’, they could share it on social media.
More than 500,000 “Phenomenal
Moments” were created –
amazing in itself, but even more
so considering the subsequent
reach every moment could obtain
once shared.

On the other hand, as one of the


world’s best sports brand, Adidas
aimed to encourage all athletes to
define their own path, no matter if
the world is at their feet or suddenly
at their throat. The campaign took
place over social media where they
aimed to showcase how great players rise above the adulation and criticism they incite.

It summarized adidas vision of inspiring performers to lead their own game and use love
and hate to give it their best. Adidas showed it was more committed to cricket.

IMC TOOLS AND TECHNIQUES | NIKE


IMC TOOL IV – PERSONAL SELLING

It’s a type of promotion where businesses uses sales force for selling of its product direct
to the customers. It is very important for the company as it is very effective way of
building long term relationship with customers. Imagine, going to store and
representatives there don’t even know about the products.

NIKE
Nike's personal selling activities are going to happen in stores. Store employees are
qualified to help consumers understand more about the company's products and to
convince them to purchase these products. In certain cases, sales workers assist the
organization with a customized program that helps consumers choose the best NIKE
product. Sales associates are knowledgeable of the brand. They are trained in asking
customers the right questions in order to find out what the customers wants.

ADIDAS
Adidas also have sales agent that sells their products direct to the consumers in Adidas
stores. For the brand Yeezy Boost, Adidas uses the personal selling method through their
twitter account. When people ask the question, the Adidas tweeter accounts answer them.

IMC TOOLS AND TECHNIQUES | NIKE


IMC TOOL V – SALES PROMOTION

It is a short term incentive technique used by the companies to market their products
through discounts and coupons.

NIKE
Nike's sales promotions are usually in the form of special offers given to target customers.
Sales promotions in Nike's marketing communications mix drive demand from new
customers.

Example: 50% - 70% off in sale season on Nike products.

ADIDAS
Adidas rarely offers any coupons or rebates as such. They do have sales every now and
then to promote certain new or original Adidas products such as such as shorts, tanks and
light sneakers to bring in products for the fall which may include sweat-shirts, jackets and
hoodies.

IMC TOOLS AND TECHNIQUES | NIKE


SIGNIFICANT CHANGES IN
PROMOTION MIX TO ADDRESS
COVID-19 SITUATION

Nike is popular for its approach in branding, promotion, and advertising, which many
academicians and practitioners in the marketing room consider the best approach. From a
clear and solid logo reflecting the famous brand to a long-lasting slogan calling for action
and attitude. At the same time, the organization connects its brand of athletes with high
achievement and a lifestyle that everybody somehow pursues.

Nike’s slogan “Just Do It!”, coined in 1987, inspires action, empowerment, and initiative.
But, just like other companies, the global impact of COVID-19 on sales of Nike was
significant. Stores were closed across the world, and foot traffic was reduced. The brand
needed a new approach, what with people restricted to go outdoors, and no gyms. Nike
came up with a modified slogan to keep people engaged
– “Just do it, at Home!”. The brand focused its
significant endeavors on making digital content to keep
the clients locked in. It made its subscription for the Nike
Training Club app, which offers streaming workouts,
training programs, and expert tips, free. It also began
generating more content for its Nike.com website,
TRAINED podcast, and social channels stressing the
necessity to maintain fitness indoors.

To promote its content offerings, Nike developed a ‘Play for the World’ marketing
campaign, created by Wieden + Kennedy, that reinforces the message that we must all do
our bit for the world and ‘play inside’. It utilizes a roster of athlete endorsers showcasing
their fitness routine during the lockdown. In one of its ad campaigns, “You can’t stop us”,

IMC TOOLS AND TECHNIQUES | NIKE


it portrayed people working out at their homes. It also featured few celebrities like basketball
legend LeBron James, and volleyballer Sara Hughes as well as some more professional
fitness experts. This managed to re-establish Nike’s core purpose, while still motivating
people in a difficult situation.

Nike is a master of emotional branding, usually


leveraging customer engagement elements of
determination, motivation, and performance. This is
frequently portrayed in professional sportspersons or
those who lead an active lifestyle. Nike has developed
a campaign that seeks to bind us together in our 'new
normal' at a time when everyone's day-to-day life has
been disrupted, both global athletes and humble joggers
alike.

Nike’s brand strategy was heavily focused on digital transformation. It incorporated


multiple integrated marketing communication tools like social media marketing,
advertising, endorsements, etc., and brought digital content marketing to the forefront. This
contributed majorly towards its plan to develop an online marketplace in a way to boost the
online direct sales model and slowly cut back from the outdated wholesale model.

Some key focus areas for Nike’s digital transformation initiative are

 Its strategy of Consumer Direct Offense, which provides better insights to personal
selling;
 Social commerce, which refers integrated social ecosystem of various networking and
shopping platforms into boosting sales;
 Use of analytics to gauge customer preferences in order to better serve them.
Nike has been one of the few businesses to respond to COVID-19 by exhibiting corporate
responsibility when shops are closed early, creating new space during the pandemic to
interact with customers, and seizing the opportunity to drive its digital transformation. After
COVID-19, the world will be changed, and Nike intends to keep its position as an iconic
brand and a business that offers a "new normal" lifestyle which still makes some sense.

IMC TOOLS AND TECHNIQUES | NIKE


SUGGESTIONS FOR FUTURE
PROMOTIONAL ACTIVITY OF NIKE

Nike is in a constantly changing market. Nike as well as its rival brands needs to keep up to
date with customer preference especially in an industry as volatile as the fashion industry.
Recently both the brands, Nike and Adidas have collaborated with some fashion brands such
as Off-White, Yeezy and Raf Simons to mark their presence in those markets. Nike should
practice more collaboration with these top brands as it can be an effective way of marketing
for Nike. Brands have control, which can dictate a customer, Nike falls under the same
bracket as Google and Apple in which the brand itself can be classified as being alive.
Apart from that, there are some more added suggestions that can be adopted by the brand
for future promotional activities. They are-

 Understanding the needs of the customer - The audience segment can be reached
out with the help of the internet in an effective manner. Creating a very innovative
and attractive blogs can help the brand make its presence in the target market. Now,
in order to do so, one must know the needs and forthcoming requirement of
customers. One must also be aware of the goals of the customers and what their
enquiries are. One can provide solution to various needs of the consumer using the
internet. Nowadays, people are actually trying to find out new ways to stay fit. Nike
can use its internet resources to tactfully position itself. Helping consumers
accomplishing their own desired goals will ultimately help Nike reach the goals of
the organization.

 Emotional Branding- Nowadays, the customers are tired of watching ads. Hence,
they always seek for something unique and attractive in terms of ads as well. In order
to stand out from the crowd, Nike can sell stories rather than directly advertising the
product and asking for sales. People easily get carried away with such motivational
and inspiring stories. This will ensure an emotional connect in between the audience

IMC TOOLS AND TECHNIQUES | NIKE


and the brand. The viewers will get to relate more to the brands motto for the
advertising.

 Introducing wide range of products- The company majorly manufactures only


sports apparels and shoes. The brand can opt for a different line of production or
diversity in range of products. The company at present is facing tough competition
from adidas. So, they can opt of for a new line of products and enter them in the
market with special sales tool of sales promotion.
 The ads made by Nike are very costly in the integrated marketing communications
(IMC) promotional campaign. In order to derive optimum value from the high
demand for its goods at the lowest expense of ads, optimal solutions should be
investigated.

 Nike will use any of the companies or individuals near the distributor in the target
market segments in the direct marketing portion of the Integrated Marketing
Communications (IMC) Campaign to specifically advertise their goods in the near
future. This will have a huge effect on the company's market image with its clients.

 In its advertising events, Nike hardly uses public relations policy. It will also attempt
to fund such charity-based seminars and other social action campaigns that
concentrate on important public-related problems, such as renewable energy,
congestion, unemployment, access to healthcare, and others. This will not only boost
the public's view of the brand, but also enhance the image of the brand in the context
of addressing important social and environmental issues. This will have an eternal
bearing on the success of the business in the near future.

 The organisation employs numerous celebrities and footballers to advertise its goods
across the world. The association will compete in other sports that are common in
their respective nations. For starters, by joining the baseball sport, they will cover the
US. It's a big opportunity that is not tapped by Nike very effectively. To advertise
their shoes and baseball accessories, they can pay famous baseball players.

IMC TOOLS AND TECHNIQUES | NIKE


REFERENCES

 https://www.nike.com/in/
 Allen, C. (2008) Advertising and integrated brand promotion. New York: Cengage Learning.
 Egan, J. (2015). Marketing Communications (2nd ed.). Sage Publications
 Nike News. “All The Ways Nike Is Helping Athletes Play Inside — for the World.”
https://news.nike.com/news/nike-play-inside-play-for-the-world
 Gillil, Nikki. “How Nike Is Striking the Right Tone with Its Response to Covid-
19.” Econsultancy (blog).
https://econsultancy.com/how-nike-is-striking-the-right-tone-with-its-response-to-covid-19/.
 Mobile Marketer. “Nike Offers Workout App for Free as COVID-19 Keeps People Indoors.”
https://www.mobilemarketer.com/news/nike-offers-workout-app-for-free-as-covid-19-keeps-
people-indoors/574721/
 Rival IQ. “What You Can Learn from Nike Branding Strategy,”
https://www.rivaliq.com/blog/nike-branding-strategy/
 Nike's E-marketing in Its Market Strategy - 2708 Words: Research Paper Example. (n.d.).
Retrieved from https://ivypanda.com/essays/nike-inc/
 Gregory, L. (2018, August 21). Nike's Promotional Mix (Marketing Communications Mix).
Retrieved from http://panmore.com/nike-marketing-communications-mix
 Nike's promotion mix. (n.d.). Retrieved from https://prezi.com/p/alcyxozw_ezh/nikes-promotion-
mix/
 Sports Equipment and Accessories Market - Industry Overview. (n.d.). Retrieved from
https://www.alliedmarketresearch.com/sports-equipment-and-accessories-market
 Sports Apparel Market Size, Share and Trends | Industry ... (n.d.). Retrieved from
https://www.alliedmarketresearch.com/sports-apparel-market
 Sports Equipment and Apparel Market - Global Industry Analysis, Size, Share, Growth, Trends,
and Forecast 2018 - 2026. (n.d.). Retrieved from
https://www.transparencymarketresearch.com/sports-equipment-apparel-market.html

IMC TOOLS AND TECHNIQUES | NIKE

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