MINISTRY OF EDUCATION & TRAINING THE STATE BANK OF VIETNAM

HO CHI MINH UNIVERSITY OF BANKING

BUSINESS ADMINISTRATION

REPORT OF MARKETING MANAGEMENT

TOPIC: THE TRATEGIC MARKETING MANAGEMENT

ANALYSIS OF NIKE AIR FORCE 1

Lecturer: Dr. Thich V. Nguyen PhD, MsC

Performed by GROUP 9 – L23

Full Name Student Number

Mai Ngọc Thuý An 050609211810
Bùi Thị Vân Anh 050609211813
Nguyễn Thị Yến Nhi 050609212099
Vũ Nguyễn Hoài Thư 050609212245

Ho Chi Minh City, 25 October 2023

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 CONTENTS
1. THE INTRODUCTION OF THE NIKE COMPANY AND NIKE AIR FORCE 3
1.1. History of Nike Company........................................................................................ 3
1.2. Performance of Nike Company ............................................................................... 3
1.3. Introduction of Air Force 1: ................................................................................... 3
2. ANALYSIS OF THE MARKETING AND MANAGEMENT CAPABILITIES
OF NIKE AIR FORCE 1 ............................................................................................ 4
2.1. Marketing Capabilities of Nike Air Force 1 ........................................................... 4
2.2. Management Capabilities of Nike Air Force 1 ..................................................... 10
3. SWOT ANALYSIS OF NIKE AIR FORCE 1 ........................................................ 11
3.1. Strengthen ............................................................................................................. 11
3.2. Weakness............................................................................................................... 15
3.3. Opportunity ........................................................................................................... 16
3.4. Threats .................................................................................................................. 17
4. MARKETING STRATEGY OF THE AIR FORCE 1 .......................................... 19
4.1. Objectives ............................................................................................................. 19
4.2. STP (Segmentation, Targeting, and Positioning) of Nike Company .................... 20
4.2.2. Targeting: ...................................................................................................... 20
4.2.3. Positioning .................................................................................................... 20
4.3. Competitive advantage ......................................................................................... 21
5. MARKETING MIX STRATEGY ........................................................................... 22
5.1. Product ................................................................................................................. 22
5.2. Price ...................................................................................................................... 22
5.3. Place ..................................................................................................................... 22
5.4. Promotion: ............................................................................................................ 23
6. DIFFERENTIATION STRATEGY ........................................................................ 23
7. CONCLUSION .......................................................................................................... 24
REFERENCE: .................................................................................................................. 25

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 1. THE INTRODUCTION OF THE NIKE COMPANY AND NIKE AIR
FORCE 1
1.1. History of Nike Company
Nike, Inc., formerly Blue Ribbon Sports from 1964 to 1978, is an American
sportswear company headquartered in Oregon. The company was founded in 1964 by
Bill Bowerman as Blue Ribbon Sports.
The first retail outlet was opened in 1966 and, in 1972, launched the Nike brand
shoe. The company renamed itself Nike, Inc., in 1978. Going into the 21st century, Nike
has retail outlets and product distributors in more than 170 countries, while its logo – a
checkmark with a curve called the “swoosh” – is recognized throughout the world.

1.2. Performance of Nike Company

Nike has the most dominant market share in North America’s athletic apparel
industry (around 27.4% and, recently, owns a whopping 96% of the market for the
basketball shoe industry), and continues to outpace the competitors when it comes to
sales.
Nike’s basketball sneakers Air Jordan brand generated over $3.14 billion in the
2019 fiscal year, up 10% from the previous year.
Nike’s SEO strategy is also top-notch. SEMRush shows that over 60M users land
on Nike’s website monthly, spending almost 7 minutes on the site and browsing almost 5
pages.

1.3. Introduction of Air Force 1:

In the world of sneakers, very few styles endure for a long time. Those rare pieces
become true classics and evolve into flagship products for brands. For Nike, the best –
selling shoes at retailers often tend to be white leather sneakers like the Air Monarch line.
One exceptional example of such sneakers that have transcended both worlds is the Nike
Air Force 1, with its most iconic style: low – top and full white.
When it was first introduced in 1982, designed by Nike's Bruce Kilgore, the Air
Force 1 made a strong impression with enthusiasts, drawing inspiration from long-
distance walking and its unique chunky sole – it was the first shoe to feature Nike Air
cushioning. The white and neutral gray colorway was a standout feature of the shoe,

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making the Air Force 1 even more popular when it was widely released in 1983.
The Air Force 1 now comes in over 1,700 different versions with various colors
and continues to grow. However, the two basic colorways, all white and all black, remain
the most successful and highest-selling versions of this product line. Air Force 1 brings in
over 800 million USD in revenue for Nike every year. Its existence for nearly 40 years
showcases the sustainability of the Air Force 1 in the hearts of consumers.

2. ANALYSIS OF THE MARKETING AND MANAGEMENT

CAPABILITIES OF NIKE AIR FORCE 1
2.1. Marketing Capabilities of Nike Air Force 1
How Nike distinguishes themselves from other shoe brands depends heavily on
the marketing strategy. Let’s see what sort of marketing strategy Nike used to achieve
and maintain their status of the market’s dominant player.

2.1.1. Position products carefully

“A shoe must be three things, It must be light, comfortable and it’s got to go the
distance.” – Nike’s Co – founder Bill Bowerman.
Nike’s owners did declare the uniqueness of the brand’s shoes with three points,
by which customers can easily decide whether to buy Nike shoes or find another brand.
Nike has successfully positioned the Air Force 1 as an iconic and timeless sneaker
with a rich history, catering to both athletic and lifestyle segments. This positioning has
created a strong and enduring brand image.

2.1.2. Sell touching stories instead of amazing products

The world of sneakers is driven by two things: performance and storytelling and
Nike is the master of masters in storytelling.
Nike has done that since the beginning. Because its founders were athletes, they
could tell authentic stories. Being a track and field coach, he easily wrote the story for his
own products and connected with audiences. His mission, as well as the brand's mission
in those days, might have been “creating shoes for athletes”. Nike understood the reason
and meaning of storytelling very early and has constantly followed this strategy to
cultivate customer loyalty and grow brand awareness.

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 ▪ Storytelling of Nike Air Force 1:
➢ Historical Significance:
The Air Force 1 was first introduced in 1982 and was the first basketball shoe to
feature Nike Air technology. This innovation marked a significant milestone in athletic
footwear.
➢ Origin in Street Culture:
The Air Force 1's design and style were influenced by street culture, particularly in
cities like New York, Baltimore, and Tokyo. It was embraced by urban youth, basketball
players, and hip-hop artists, contributing to its cultural relevance.
➢ Iconic Design:
The shoe's classic design with its chunky sole, leather upper, and clean white
colorway became an iconic symbol of both athletic performance and urban fashion.
➢ Global Impact:
Over the years, the Air Force 1 transcended its regional origins and became a
global icon, worn by people from all walks of life. Its appeal expanded far beyond its
initial target audience.
➢ Cultural References:
The Air Force 1 has been referenced and celebrated in music, art, and pop culture.
Hip-hop lyrics, graffiti art, and films have featured the sneaker, further solidifying its
place in popular culture.
➢ Enduring Popularity:
Despite being introduced nearly four decades ago, the Air Force 1 continues to be
a sought-after and best-selling shoe, showcasing its timelessness and enduring appeal.
➢ Limited Editions and Collaborations:
The storytelling of the Air Force 1 also includes the many limited editions and
high-profile collaborations with artists, designers, and celebrities. These releases create a
sense of exclusivity and anticipation.

2.1.3. Product Diversification

Nike has leveraged its marketing capabilities to diversify the Air Force 1 product
line, creating various versions and collaborations to cater to different consumer
preferences and trends.

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 To increase revenue as well as create newness for the main product line, Nike
continuously introduces to customers beautiful, attractive color-coordinated shoe models
for users to change regularly. Up to now, there are more than 2,000 genuine Nike Air
Force 1 color combinations that have been sold on the market.
Some of the most popular color combinations of the Nike Air Force 1 line today
include:
- Most basic color combination design including: Nike Air Force 1 low
(low neck), Nike Air Force 1 mid / Nike Air Force 1 high (high neck).
Among them, Nike Air Force 1 black and Nike Air Force 1 white are
popular and have the largest consumption.
- Nike Air Force 1 Customization is designed and color-coordinated by the
user themselves.
- Nike Air Force 1 Dior: The product is a combination of Nike and high-end
fashion brand Dior.

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 2.1.4. Employ the power of social media marketing
Take a look around Nike’s social media profiles, you can easily see how
successful the brand has become. 306 million followers on Instagram and 9.8 million
followers on Twitter. For the fact that many customers of Nike are members of the social
media network, Tactics that employed in Nike’s social media marketing strategy are:
+ Collab with high-profile people: Travis Scott, Eminem, G – Dragon,…
+ Use user – generated content
+ Appear in customer’s conversations
+ Distribute storytelling across social media channels
When you can sell the stories, values and benefits, you might not need to be
bothered by the thought of competing with your competitors in terms of price. Just focus
on delivering values to your customers’ lives by using your products.

Collaboration between G-Dragon and famous Nike brand: Air Force 1 Para Noise

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Hastag Air Force 1 on Instagram Nike's official Instagram platform

2.1.5. Limited Releases and Hype Marketing

By releasing limited editions and creating hype around certain versions, Nike has
generated exclusivity and urgency among consumers. Sneakerheads often eagerly
anticipate these releases, creating a sense of scarcity and desirability.

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2.1.6. Sustainability Initiatives:
Nike has also incorporated sustainability initiatives into their marketing and
management of the Air Force 1. They have released sustainable versions of the shoe,
which appeals to environmentally conscious consumers.

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2.2. Management Capabilities of Nike Air Force 1
2.2.1. Product Line Management
Nike's management capabilities include effectively managing a vast and
diversified product line with over 1,700 versions of the Air Force 1, maintaining
quality control and ensuring consistency in design.

2.2.2. Supply Chain and Distribution

Nike has established a robust supply chain and distribution network that
ensures the Air Force 1 is readily available in stores and online, even during high-
demand releases.

2.2.3. Inventory Control

Managing inventory levels, especially for limited releases, is essential to create
a sense of scarcity without disappointing consumers. Nike has excelled in this regard.

2.2.4. Global Market Management

The Air Force 1 is a global product, and Nike's management capabilities
extend to maintaining a strong presence and appeal in various international markets.

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3. SWOT ANALYSIS OF NIKE AIR FORCE 1
3.1. Strengthen
3.1.1. Strong Brand Awareness and Brand Value
Nike is the global brand and No.1 shoemaker. Its name is memorable, easy to
pronounce, and very unique. Its swoosh symbol is easily recognized by everyone.
According to the Interbrand global brand ranking report, Nike is ranked at the #10
position with a brand value of $50.2 Billion.
Shoes are Nike's most popular product. Shoe products such as Nike Air Max,
Nike Air Force 1, Nike Zoom Pegasus 33, Nike Air Huarache, Air Jordan 1, Air
Zoom Yorker... Air Force 1 is one of the familiar names and is loved and consumed
worldwide by people.

3.1.2. Huge Customer base

Nike has millions of customers from around the world who loyally follow
Nike’s trends, participate in Nike events, and even provide customer feedback.

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 Nike’s target audience demographics focus on relatively young men and
women aged 18 – 30, with their socioeconomic status being “AB”, or upper middle
class to middle class. In addition, Nike has also looked into growing global markets,
as countries such as Brazil, China, India, and Japan are the fastest-growing markets in
the world. In the past five years, Nike has increased its profits by 62.5% in emerging
markets.

3.1.3. Features and Benefits:

Product Feature: Product Benefit:

Nike is a household name in most

parts of the world. Most people in the
target market know and recognize
Recognizable Name
Nike and their high quality products.
Air Force 1s are highly regarded by
many shoe consumers

People who wear Nike Air Force 1s

care about being trendy and “hip”
Fashionable
within their peer group and family
members. The shoe is made of real

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 leather, has pronounced details and a
sleek design.

Comes in a high top and low top

version. Also, by visiting the Nike
Customizable website customers can change
features on the shoe like the color and
materials.

The high quality materials of the shoe

(leather, plastic) do not easily wear
down or break apart. The target
Durable
market should feel that their
investment in Nike Air Force 1s is
well worth the money

Nike Air Force 1s have cushioned

Comfortable soles and support; they do not easily
create blisters on the feet

Consumers who bought Nike Air

Force 1s have a favorable opinion of
92% of people recommend
them, which makes the product and
brand credible.

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 3.1.4. Aimed for Sustainability
Nike’s CEO Mark Parker has stated that they will continue to acknowledge the
environmental issues in the communities. The CEO ensures that Nike will help to
contribute in finding a solution to these environmental issues.
Nike is releasing a women’s exclusive Air Force 1 made entirely from sustainable
and recycled materials called the Nike Air Force 1 Crater Flyknit. The upper of the shoe
is constructed using all-white Flyknit threads, which is Nike’s latest technology using
recycled materials. The neon yellow-colored insoles of the shoe are embellished with
“Move to Zero” branding, which refers to Nike’s aim to have a zero – carbon footprint by
diverting more than 1 billion plastic bottles per year from landfills to manufacture yarns
for new jerseys and uppers for its Flyknit lineage.
3.1.5. Iconic Relationship
Nike’s long – term partnership with Michael Jordan has proved to be beneficial in
terms of sales for the company. Their collaboration resulted in “Air Jordan 1 Shoes”.
In 2022, 40 years since the Air Force 1 was introduced, a culmination of the rich
history of the silhouette was realized with the introduction of the Louis Vuitton x Nike
Air Force 1 by Virgil Abloh. Released posthumously, Abloh’s work seamlessly
connected the decades of prominence of Nike’s famed sneaker.

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 3.1.6. Low Manufacturing Cost
Most of Nike’s footwear is manufactured in foreign countries. In the fiscal year
2022, Vietnam produced 44%, Indonesia produced 30%, and China produced 20% of
Nike's total footwear. Other operations are in Argentina, Brazil, India, Italy, and Mexico.
3.1.7. In – house Professionals
Nike has a team of professionals that design its shoes and other athletic
accessories. Nike believes that their business has flourished due to the thorough research
that is conducted for each product.
3.1.8. Superior Marketing Capabilities
Nike has strong marketing campaigns and endorses different products. In the fiscal
year 2019, 2020, 2021, and 2022 Nike spent $3.7 billion, $3.6 billion, $3.1 billion, and
$3.8 billion respectively. The brand has successfully utilized social media and marketing
campaigns to target more customers.
3.1.9. High market share
Nike is a market leader in the footwear industry. Nike has captured approximately
39% of the global athletic footwear market and 13% of the global athletic apparel market.
The market share of the company is close to 34%. (Mokhiber 73). The company is
engaged in sportswear manufacturing, however, the key product is sports footwear.

3.2. Weakness
3.2.1. Poor Labor Conditions in Foreign Countries
In the last 20 years, Nike has been consistently targeted regarding their poor labor
conditions. These issues include forced labor, child labor, low wages, and horrific
working conditions that were deemed “unsafe”.
3.2.2. Retailers have a Stronger Hold
Nike’s retail sector makes Nike weak due to its sensitivity against pricing. 65% of
Nike products are sold directly to wholesalers or retailers. With retailers serving as their
core customers, Nike does not put up a fight against their pricing structures whatsoever.
3.2.3. Pending Debts
Although Nike’s income statements prove to be prosperous, a quick glance at their
balance sheet could paint a different picture. Nike is still facing financial threats. As of
FY22, Nike’s total long-term debt was $8.9 billion.

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 3.2.4. Lawsuits
Four former female Nike employees filed a class – action lawsuit against the
company in August 2018. According to these women, Nike has a toxic company culture
for women. The women filed their case against the sportswear company claiming that the
company violated the Equal Pay Act. The women said the company engaged in
systematic gender pay bias where men were paid more than women for the same amount
of work.

3.3. Opportunity
3.3.1. Emerging Markets
Although Nike already has a presence in many foreign countries, there are still
plenty of opportunities for Nike. This is because emerging markets like India, China, and
Brazil are gradually flourishing.
3.3.2. Innovative Products
Although Nike has produced many products, there is still a lot to innovate. Nike
has extended its reach in technology in association with fitness and health.
Combining technology with athletic wear can prove to be beneficial as it is an
aspect of the fashion industry that still hasn’t been explored much.
3.3.3. Efficient Integration
The supply and production of Nike’s products depend on independent
manufacturers. The brand can either acquire a few of these or make some of its own for a
more efficient and streamlined supply chain.
3.3.4. Acquired Artificial Intelligence Start-up
With its vast financial resources, Nike can acquire small or medium companies or
startups. It recently acquired a predictive analytics platform – Celect to expand its online
sales capabilities and predict customers’ shopping behavior.
3.3.5. Merges with the Metaverse
In 2021, Nike acquired RTFKT, a digital shoe-making company. Yes, you heard
that right, the company designs shoes, but for the virtual stratosphere only. Nike is
banking on the opportunity to market their digital shoes on the Metaverse, where players
can use their Metamask wallets to purchase different types of in-game merchandise.

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 3.3.6. Consumer Direct Strategy
Nike has accelerated the consumer-direct strategy, which means shifting its focus
to digital business and subsequently closing physical stores. In fiscal year 2022, 42% of
its Nike revenue came from online sales. Clearly, the pandemic is shaping up how Nike
interacts with its customers.

3.4. Threats
3.4.1. Competition
In spite of the fact that Nike has a monopoly on its brand “Air Force One” shoes,
the company is still ready to compete with other organizations like Reebok (25%),
Adidas (up to 30% of market share), or Puma (9%). In a monopoly, it seems to be
difficult to get access and define its size and growth rate as this type of market is usually
very costly.
Direct Competitors: Nike’s top three direct competitors for shoes consist of
Adidas AG, New Balance Athletic Shoe Inc, and Puma SE.
• Adidas: Founded in the early 1920s, Adidas AG is most similar to Nike,
Inc., selling many of the same products and having similar target audiences.
Adidas AG reaches 170 countries, selling from authorized retailers and
online. Adidas is the number two sporting goods manufacturer, after Nike,
focusing on training gear, apparel, and shoes.
• New Balance: Founded in 1906, New Balance Shoe Inc. plays on the
“everyman and everywoman” appeal, more so than Nike, Inc. They sell
similar products to Nike, including men’s women’s and children’s shoes,
but differs from Nike in that it doesn’t focus on apparel. It sells its products
in its own stores and specialty retailers. New Balance Shoes Inc. is known
for their variety of shoe widths. Aimed at an older demographic.
• Puma: Puma SE differs from its other competitors in that its main focus is
shoes, with athletic equipment and apparel not playing as big a role in its
total revenue. Puma still sells apparel, but its sales pale in comparison with
its shoe sales. Like its competitors, it operates its own retail stores and
controls product distribution in a number of countries

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 Indirect Competitors: Indirect competitors of Air Force 1s comprise brands that
do not concern themselves with athletic footwear as much. This includes Ralph Lauren
Polo shoes or Vans. Also, since the Air Force 1’s debut, a growing number of counterfeit
products in the United States have risen. High levels of counterfeit merchandise may
lower the company’s sales and affect its profit margins. Also, these counterfeits are
usually low quality and fall apart easily, affecting customer loyalty and consumer
confidence.

3.4.2. Counterfeit Products

The low – priced products are made from low – quality materials but still have the
Nike label. This can tarnish the image of the brand as the customers might feel that Nike
has started producing low – quality products.
3.4.3. Increased competitive pressure
Although Nike is dominating the athletic industry, competition, and new emerging
brands are still potential threats to the company. With a higher competition ratio, Nike
has to spend more money on marketing and advertising.
3.4.4. Currency Foreign Exchange Risks
Since the brand operates globally, it is affected by fluctuating foreign exchange
rates. Nike reports its financial earnings in U.S. dollars. This affects its revenue as the
U.S. dollar is exposed to volatility against other financial currencies.
3.4.5. Trade Tensions
Nike depends on different markets across the world evidenced by the recent
increase in its stocks rallied by an increase in sales in China. With China and the US as

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its biggest markets, a large chunk of Nike’s sales will be threatened if the trade tensions
between the two giants escalate.
3.4.6. Risk to Kangaroo Population
The leading athletic brand uses kangaroo skin to manufacture leather football
shoes. Animal rights activists and advocates have urged Nike to rethink its strategies and
to use plant-based alternatives. So far, Nike hasn’t responded to these allegations.

4. MARKETING STRATEGY OF THE AIR FORCE 1

4.1. Objectives
The marketing strategy for Nike Air Force products is guided by a set of
objectives that help the company achieve its goals in promoting and selling these
sneakers. Some common objectives of Nike's Air Force product marketing strategy
include:
Increase Sales and Revenue:
One of the primary objectives is to drive sales and generate revenue through the
sale of Air Force products. Nike aims to increase the market share for Air Force sneakers
and, consequently, contribute to its overall sales and profitability.
Maintain and Enhance Brand Image:
Nike seeks to maintain and enhance its brand image and reputation through Air
Force product marketing. These sneakers are iconic, and their marketing efforts aim to
reinforce Nike's status as a leading sportswear and fashion brand.
Build and Strengthen Customer Loyalty:
Nike aims to build and strengthen customer loyalty for the Air Force product line.
By delivering high-quality products, engaging marketing, and customer-focused
strategies, Nike seeks to foster brand loyalty among its customers.
Differentiate from Competitors:
Nike intends to differentiate Air Force products from competitors and maintain a
unique position in the market. This involves emphasizing the distinct features, style, and
heritage of the Air Force line.
Launch New Products and Innovations:
Nike continually introduces new variations and innovations within the Air Force
product line. Marketing objectives include successfully launching these new products and

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highlighting their unique features.
Increase Market Share: Nike aims to increase its share of the sneaker market by
attracting new customers and retaining existing ones through its Air Force
marketing efforts.

4.2. STP (Segmentation, Targeting, and Positioning) of Nike Company

4.2.1. Market Segmentation: Nike segments its market based on various factors to
identify groups of consumers with distinct needs and preferences.
• Demographic Segmentation: This includes age, gender, income, and
occupation. Nike targets both men and women, with a significant focus on
the youth and young adult market. Air Force 1 appeals to a wide range of
income levels, but it's particularly popular among urban youth.
• Psychographic Segmentation: Nike targets consumers who value style,
streetwear culture, and sneaker fashion. The brand is associated with self-
expression and urban lifestyle.
• Behavioral Segmentation: This includes usage occasions and brand
loyalty. Nike caters to both casual wearers and sneaker enthusiasts who
collect and obsess over sneakers.

4.2.2. Targeting:
After segmenting the market, Nike selects specific customer segments to focus its
marketing efforts and product development.
• Primary Target: Nike's primary target for Air Force 1 is urban and
suburban youth and young adults who are fashion – conscious, trend –
followers, and streetwear enthusiasts. These consumers are looking for
sneakers that are not only comfortable but also stylish and versatile.
• Secondary Targets: Nike also targets athletes and sports enthusiasts who
appreciate the performance aspects of Air Force 1 in sports like basketball.

4.2.3. Positioning
Positioning involves creating a distinctive image and perception of the product in
the minds of the target audience. Nike positions the Air Force 1 in the following ways:
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 • Classic and Timeless: Air Force 1 is often positioned as a timeless classic
that has been a fashion staple for decades. This appeals to consumers who
appreciate tradition and authenticity in their fashion choices.
• Versatile: Nike positions the Air Force 1 as a versatile shoe that can be
worn with various outfits, whether it's casual wear or streetwear fashion. It's
marketed as a shoe for everyday use.
• Iconic: The Air Force 1 is positioned as an iconic sneaker with cultural
significance, associated with hip-hop and street culture. Nike leverages this
iconic status to attract consumers who want to be part of a cultural
movement.
• Quality and Comfort: Nike emphasizes the quality and comfort of Air
Force 1, highlighting features like the Air-Sole unit for cushioning.
• Customization: Nike allows consumers to customize Air Force 1 through
the Nike By You (formerly NikeiD) platform, which reinforces the idea that
each pair is unique and tailored to the individual.

4.3. Competitive advantage

The competitive advantage of the trademark, as well as the Air Force One brand is
linked with the opportunity of creating comfortable and ergonomic footwear for
everyone who values comfort and safety.
The company is engaged in the environmental protection campaign, hence, all
the materials used are ecologically safe and electronically tested.
Another competitive advantage is the wide range of models. However, considering
the fact that the market of sports footwear is highly competitive, this may be regarded as a
disadvantage as well, as the company has to spray its positioning, marketing, and
technological efforts for maintaining the existing diversity.
However, considering the fact that competitors sometimes try to imitate the existing
brands, signifies the fact that Nike may be reasonably regarded as the market leader, and
most of the competitive advantages of the company do not allow competitors to sleep well.
Hence, a sustainable competitive advantage is achieved, however, essential efforts are
required for maintaining these advantages and keeping leadership.

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 5. MARKETING MIX STRATEGY
5.1. Product
• Variety
The Nike Air Force product line offers a wide range of designs, including low –
top, mid – top, and high – top versions, as well as various colorways and materials. These
options cater to different style preferences and occasions.
• Quality and Innovation
Nike positions its Air Force products as high – quality sneakers with innovations
like the Air-Sole cushioning for comfort and performance.
• Customization
Nike allows customers to personalize their Air Force sneakers through platforms
like Nike By You, where they can select colors, materials, and details to create a unique
product.
• Special Editions and Collaborations
Nike frequently releases limited-edition models and collaborates with celebrities,
designers, and other brands to create unique and highly sought – after Air Force products.

5.2. Price
Premium Pricing: Nike Air Force products are priced at a premium level,
reflecting the brand's reputation for quality, style, and performance. Special editions and
collaborations often come with higher price tags, appealing to collectors and enthusiasts.

5.3. Place
• Nike Retail Stores
Nike's own retail stores, including flagship and brand – specific stores, provide a
premium shopping experience for customers. These stores carry a wide selection of Air
Force products.
• E-Commerce
Nike's official website serves as a major distribution channel, offering a vast array
of Air Force products available for online purchase.
• Third-Party Retailers
Nike distributes its products through authorized third-party retailers, both online
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and offline, which can expand the reach of the Air Force product line.

5.4. Promotion:
• Advertising
Nike conducts extensive advertising campaigns to promote Air Force products,
often featuring high – profile athletes, celebrities, and influencers who embody the
brand's values.
• Social Media
Nike leverages various social media platforms to engage with its audience,
showcase new releases, and share stories that connect with the brand's target market.
• Sponsorships and Collaborations
Nike collaborates with athletes, musicians, designers, and other brands to create
limited-edition Air Force products. These collaborations generate excitement and
exclusivity.
• Events and Activations
Nike hosts events, sneaker releases, and pop-up shops, creating unique and
immersive experiences for Air Force enthusiasts.

6. DIFFERENTIATION STRATEGY
The Nike Air Force 1 employs a robust differentiation strategy to set itself apart in
the highly competitive sneaker market. At its core is the iconic design, featuring a chunky
sole, leather upper, and classic colorways like all white or all black. This design has
remained timeless and distinct, making the Air Force 1 instantly recognizable.
Furthermore, the historical significance of the Air Force 1 as the first basketball shoe to
incorporate Nike Air technology adds to its uniqueness. Its roots in street culture,
particularly in cities like New York, Baltimore, and Tokyo, make it culturally relevant,
embraced by urban youth, basketball players, and hip-hop artists. Customization options
through the Nike By You program allow consumers to personalize their Air Force 1s,
creating a unique product tailored to individual preferences. Frequent collaborations with
celebrities, designers, and artists lead to the creation of limited – edition versions,
establishing an aura of exclusivity. The release of limited editions, coupled with occasional
technological advancements, ensures that the Air Force 1 remains distinct and sought-after.
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With global appeal transcending cultural and geographical boundaries, the Nike Air Force
1 stands as a prime example of successful differentiation in the sneaker industry.

7. CONCLUSION
Nike is a household name in the world of sporting goods. Their products include
athletic shoes, fashion shoes, apparel, and sports equipment. Nike has a far reach, having
stores in many countries worldwide. Their top competitors are Adidas, New Balance and
Puma.
While the Nike Air Force 1 has endured considerable commercial success,
showing how Nike evolved as a brand proved to be important. Each prominent athletic
shoe company has launched a popular sneaker model. The difference between these
companies and Nike is that Nike outperformed its competitors with regards to marketing.
In researching Air Force 1 and Nike as a whole, it became evident that Nike had
been the pioneer in many different advertising segments. The data keenly expressed how
Nike initiated trends in the past using athletes to advance their brand and how they intend
to stay ahead of competitors in the future through modern environmental practices.
Nike Air Force 1 is not just a fashionable pair of shoes but also an emblem of
diversity and connection. The Nike Air Force 1 product is not limited by gender, age, or
origin. They ensure that everyone, from all cultures and communities, has the opportunity
to shine and express themselves through the choice and creativity of Air Force 1.At Nike,
inclusivity is not only a part of marketing strategy for Air Force 1, but also Nike’s spirit
and philosophy.

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