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Marketing Plan: Nike, Inc.

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Marketing Plan: Nike, Inc.

1. Executive Summary

Nike is an American multinational company. The company deals with the manufacture, sales

and distribution of apparel, sports wear and accessories. Nike products are aimed at

promoting athleticism and fashion. Nike aims to provide products that improve performance

of athletes while simultaneously being fashionable. The two main areas of focus of Nike are

fashion and sports.

Nike has a diverse target market. The main targets are professional athletes and sports teams.

Nike provides sports apparel, sponsorship deals and partnerships. In the world of fashion,

Nike targets celebrities ranging from famous musicians to movie personalities. Targeting

these personalities is a strategy to reach out to millions of other people all over the world

who love fashionable Nike products. In terms of age, Nike’s marketing can be described as

age-agnostic. This means most of the segmentation is done based on other factors other than

age.

Nike gains a competitive advantage because of innovation and its brand strength. Nike is the

leading sports apparel and accessor manufacturer. Its strong band has been built over the

years with innovation, good organizational culture and impeccable marketing.

Nike is a company that is committed to leverage innovation and sustainability to meet the

needs of professionals and enthusiasts in the sports world by providing products that blend

fashion and sports.

Objectives
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a. To increase brand loyalty

b. To harness more upcoming athletes with promising careers

c. To increase sales of apparel in the fashion world; including sneakers

d. To promote sustainable development

2. Company Profile

Company Name: NIKE, Inc.

Industry: Sports

Headquarters: Beaverton, Oregon – United States of America

Year Founded: 1964

The number of employees: 83,700 (https://www.statista.com/statistics/243199/number-of-

employees-of-nike-worldwide/)

Annual revenue (estimated): $51.4 billion (2023)

Major Products and Services: Athletic footwear, apparel, equipment, sponsorships,

partnerships.

Distribution Channels: Seling to wholesalers, Direct sales to consumers

Key Competitors: Addidas, Puma, New Balance, Under Armor, ASICS.

Link to Website: https://www.nike.com/

Link to finance information page: https://investors.nike.com/investors/news-events-and-

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reports/investor-news/investor-news-details/2023/NIKE-Inc.-Reports-Fiscal-2023-Fourth-

Quarter-and-Full-Year-Results/default.aspx

3. Market Segmentation and Targeting

Nike products promote modern sports by providing athletes with modern sports wear and

equipment that improve performance. Services such as sponsorships and partnerships motivate

athletes to become the best version of themselves and to perform exceptionally in sports.

The target market of this marketing plan is sports enthusiasts. Sports enthusiasts is a group

composed of athletes, sports professionals and people who love fashionable sportswear.

Athletes – Nike provides sponsorships and accessories to professionals athletes. These athletes

are in various sports such as basketball, American Football, soccer, field and track athletics, and

tennis.

Professional Teams: These are professional sports teams. Nike provides jerseys, training gear,

footwear and other accessories to these teams. Some of the elite soccer teams sponsored by Nike

are Barcelona Football Club, Liverpool, Chelsea, United States Soccer team and NBA teams.

This marketing plan focuses on segmentation by age. Specifically, it targets people aged between

11 and 30 years. This segment provides better prospects for building brand loyalty, customer

retention and long-term partnerships. Moreover, people in this age gap are more aware of the

current trends in fashion and sportswear.

4. Situation and Company Analysis

a. Economic Environment
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Nike is a company that is constantly growing. The company experienced increase sales in

sportwear during the pandemic, however, there was overall decline in revenue. After the

pandemic, the company recovered quickly and is continuing on its growth path. Factors that

affect the company include macroeconomic factors and currency fluctuations due to its global

presence. During economic bloom, consumers have more income to spend on premium sports

wear and Nike experiences increased sales. During economic downturns, consumers have less

income to spend and sales reduce. In developing countries, the growth of the middle-class creates

demand for branded sports products.

In terms of currency, when the US dollar strengthens against other currencies, Nike products

become more expensive in overseas markets, reducing demand. On the other hand, when the

dollar weakens, Nike products may become more affordable, boosting international sales.

However, in this case, sourcing raw materials may be expensive for Nike, cutting in on the

profits. Nike current interest rate is at 2.3%. In the last three fiscal years, interest rates have

averaged 2.3%.(https://finbox.com/NYSE:NKE/explorer/interest_rate_effective/)The growth of

interest rates is projected to increase by a small margin.

b. Technical Environment

Nike’s technological environment involves advancement in manufacturing technology. The

company has embraced automation. Automation has streamlined the production process by

minimizing errors, cutting production costs and increasing efficiency. In terms of sales, Nike has

embraced ecommerce. Nike provides seamless shopping, consultation and product

recommendations through its online platforms.

c. Industry Environment
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Nike is the largest sportwear and equipment company in the world. The company has maintained

a competitive advantage over its close traditional competitors like Addidas and Puma and new

entrants into the market like Lululemon and ASICS. The sportwear industry has shifted towards

use of technology and innovation. Technology has been leveraged to manufacture products that

are comfortable and improve athletic performance.

d. Competitive Environment

The main global competitors of Nike are Addidas, Puma, New Balance and Puma. Addidas and

Puma, which are the main competitors provide products that can be seen as substitutes for Nike

products. The advantage Nike has over its competitors is its brand strength. Mike is more popular

and is therefore regarded as more prestigious. Moreover, Nike has a wider variety of products.

The sports industry is large enough for Nike to exist freely with its competitors. Each of the

companies has its own loyal clientele.

e. Political Environment

Since it operates on a global scale, political stability in markets is key to Nike’s success. Sudden

changes in policies can disrupt supply chains and distribution channels and cut profits of the

company. Political factors are not controlled by the company. To mitigate risks associated with

the political environment, Nike has invested in its global presence, reducing reliance on only a

few markets. Other political factors include international trade laws, tariffs and diplomatic

relations.

f. SWOT Analysis
HELPFUL Ideas HARMFUL Concerns
Strengths Weaknesses
 Strong brand  Dependance on retailers and
 Huge customer base wholesalers
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 Iconic relationships and  Poor labor conditions in

partnerships e.g. with Michale
Jordan and Christiano Ronaldo
 Unique subsidiaries and side
brands such as Hurley and
Converse
 Leveraging low production costs
in foreign countries such as
Vietnam, China and India.
 Exceptional marketing and
promotion
 High quality products
Opportunities
 Emerging markets – Developing
countries with growing middle-
class
 Investment in Artificial
External Intelligence
 Acquiring new entrants into the
market to dilute competition
 Exiting from wholesale
distribution to increase profits
 Partnerships with fitness and
health professionals to produce
wearable devices that monitor
physical wellbeing
manufacturing facilities
 Pending debts ($8.9 billion as of
2022)
 Litigations and lawsuits
 Contradicting strategies (move
towards 100% renewable energy
contradicts policy of innovation over
sustainability)
 Overdependence on the US market
Threats
 Counterfeit products
 Competitive pressure
 Foreign exchange risks
 Patent disputes e.g. with adidas over
PrimeKnit shoes
 Threat by animal rights activists over
kangaroo population
 Economic uncertainties

g. Mission

To bring inspiration and innovation to every athlete in the world

h. Objectives and Goals

 To promote sustainable development

 To produce quality, affordable sportswear

 To help athletes reach their full potential

 To create groundbreaking sports innovations

 To build a creative and diverse global team

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5. Ethics and Social Responsibility

Nike is committed to promoting positive impact on the community. In terms of ethics, Nike is

committed to providing good working conditions for workers in its manufacturing facilities and

to eliminate discrimination. Currently, there are complaints of discrimination and poor working

conditions in Nike’s factories. There are litigations and lawsuits that have cited discrimination in

terms of nationality, gender and race. Nike has taken steps to curb case of discrimination. For

example, the compony runs a campaign with the tagline “Don’t do it” to end racial injustice

against black people.

Recommendations

Ethics and social responsibility is a big issue in the modern world. Nike as a global company

should ensure that it has no cases involving discrimination. Such cases tarnish the name of the

company and reduce sales. Nike should ensure that any lawsuits that against the company are

quickly solved to avoid heavy media presence. Moreover, the company should ensure that hiring

is transparent. Moreover, athletes sponsored by Nike should be treated equally regardless of

nationality and gender.

6. Marketing Information and Research

Research Question

How can Nike increase brand loyalty band build long-term consumers by focusing more on the

younger generation?

Information Needed
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 Popularity of Nike products among the youth

 How much young people are willing to spend on Nike products

 Fashion consciousness of the youth

 Youth interest in fitness and sports

Research Recommendations

To obtain the information above, Nike can conduct surveys and observe market trends. For

example, when making orders online, Nike should analyze the demographics of consumers.

Secondary data and primary data collection techniques can be used. Secondary data include

interviews and surveys. These may be directed towards place with high concentrations of young

people such as schools, colleges and universities. Collecting demographic data will help the

company assess its current market and determine the adjustments needed to expand consumers.

Conducting the surveys online will enable the company reach a wider audience worldwide.

Positioning Statement

Nike is a company that is committed to leverage innovation and sustainability to meet the needs

of professionals and enthusiasts in the sports world by providing products that blend fashion and

sports.

Repositioning Considerations

Nike has had a good strategy that has made stay at the top in the global sports industry. However,

the company should reposition by focusing more on the younger generation. Young people are

more conscious of fashion and fitness is in vogue in the modern world. The younger generation

is looking for a blend in fashion and sports, which is the specialty of Nike. Moreover, Nike
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should scout for younger athletes. Most of the iconic athletes in Nike’s portfolio are approaching

retirement. Scouting for younger talents will keep the company’s reputation in working with

iconic athletes in the future.

7. Branding

Brand Description

Nike can be described as a leading sportwear manufacturing brand. My strategy seeks to define

Nike as an athleisure brand that blends sports and casual fashion to meet the needs of the young

generation. Consumers of Nike consider Nike as premium and prestigious brand that

manufactures quality products.

Brand Promise

Nike’s brand promise is to bring innovation and inspiration to every athlete in the world. With

respect to this marketing strategy, this promise can be refined as; to blend sports and fashion to

create quality products that inspire young athletes to become the best version of themselves and

to project their sense of fashion to the world. This brand promise will attract majority of young

people who are fashion-conscious and young talents with promising careers in sports.

Brand Voice and Personality

 Nike is fashionable, classic, authentic, original , inspiring, dependable

 Nike is never discriminative, counterfeit, frivolous

Brand Positioning Strategy

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Nike is the only brand that does grassroot scouting of young athletes and builds their career,

making them achieve their dreams. Moreover, Nike recognizes current fashion trends and

provides vogue products that meets the fashion needs of modern youth. This strategy will

increase enable young people to resonate with Nike and increase popularity and sales.

Furthermore, it provides a potential for signing many promising young talents.

8. Marketing Mix (4Ps)

a. Product Strategy

Nike manufactures footwear and apparel for athletes and for casual fashion. Most of the products

are in the growth and maturity stage. The incorporation of age factor in segmentation of Nike

consumers is expected to bring new products into the market that will excite the youth and gain

rapid popularity. This plan focuses on the introduction and growth phases of product life cycle.

The key features of this offering are authenticity, fashion and functionality. These are in line with

the needs of the younger generation. Young athletes want functional gear that will improve their

performance. The average young person wants fashionable products that are consistent with

current fashion trends. Collectively, this group wants a premium brand that can not be likened or

compared to any other brand.

b. Pricing Strategy

The growing middle-class all over the world has ensured more young people have more money

to spend. The concern among young people is shifting from price towards value for money. This

means young people will be willing to spend as long as they feel the product provides good value

for their money. Moreover, most young people do not mind spending heavily on premium brands

because of the prestige and respected associated with such brands. This strategy aim at providing
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products that provide value for money while at the same time considering financial constraints of

some young people.

c. Place: Distribution Strategy

The current distribution strategy is mainly dependent on wholesalers and retailers. This strategy

is not efficient because it is susceptible to counterfeit products and cuts in on the profits of the

company. Direct sales would eliminate middle-men and the risk of counterfeit products. This can

be achieved by creating more Nike stores and investing more on eCommerce. Creating at least

one retail outlet managed directly by Nike in every major city where Nike products are sold

would be a good step.

d. Promotion: Integrated Marketing Communications Strategy

Approach

Young people are influenced mostly by what they see on social media. Most of them derive

fashion ideas from celebrities in music, film and sports world. The main promotional strategy

that this plan will use is leveraging celebrities to increase popularity of products. The company

will partner with celebrities to create bespoke products. Such partnerships have worked in the

past for Nike. One of the most successful partnerships is with Michael Jordan. This partnership

has resulted in high sales of Air Jordan shoes by Nike. This promotion will target the most

prominent sectors according to region for example, in the US, Nike can partner with personalities

in basketball, NFL, music and Hollywood. In Europe and South America, Nike would partner

with personalities in soccer. In Africa, Nike would go for personalities in soccer, athletics and

rugby. Collaborations with influential personalities to improve existing products is another good
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strategy. An example if such a collaboration was witnessed between Nike and Travis Scott that

saw the redesign of the Airforce, one of Nike’s most popular sneakers.

Goal

The goal of the promotional campaign is to increase sale of Nike products among youth by 40%

within the next five years by leveraging influential personalities whom the young people intend

to emulate.

Call to Action

Are you a young person who is passionate about sports and casual fashion? Leap into the Nike

community now for an immersive experience of bespoke casual wear with a unique blend of

fashion and sports.

Messages

Primary Message – The Nike online campaign provides you with the opportunity to win special

discounts and gift hampers if you can successfully recreate the dressing style sampled by our

models and celebrities.

Message Pillar – This campaign provides you with the opportunity to meet and interact with the

most influential celebrities if you successfully complete the challenge.

Proof Point – Many young people have been incorporated into the Nike community inner circle

after taking part in this campaign.

Call to Action - Are you a young person who is passionate about sports and casual fashion? Leap

into the Nike community now for an immersive experience of bespoke casual wear with a unique

blend of fashion and sports

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Promotional Mix and IMC Tools

Digital Marketing- This is the main marketing strategy that will be employed. It will integrate

social media as the primary method and advertisement in various websites. The social media

strategy will involve leveraging influential personalities to create brand awareness. Adverts will

be in form of short videos and banners involving the influential personalities.

Direct Marketing – This will include email marketing and campaigns. Email marketing will be

used to reach those who have purchased Nike products at least once before. Campaigns will be

used ty hype new products before they are launched.

Promotions and sales – There will be challenges where consumers are challenged to recreate

outfits and winners will be give giveaways in terms of gift hampers and meet and greet with

celebrities.

Sale Alignment

This campaign mainly operates in the generation of solid leads and building relationships. After

discovering those who are loyal to the brand, the Nike will commit to build long lasting

relationships with them that will cultivate strong brand loyalty. This campaign supports sales

activities by creating demand for Nike products after igniting the desire among consumers to try

out Nike products after seeing influential people using them.

Key Performance Indicators

 Overall sales

 Sales among people aged between 11 to 30 – This is the key target market. Increase in the

number of consumers in this age bracket will translate to success in this strategy.
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 Number of qualified leads generated

 Engagements and followers in social media platforms – Youth are mainly active on social

media. The number of followers Nike and its affiliates gains in social media platforms

will indicate interest among youth in the company’s products. Moreover, the

engagements in terms of comments, likes and dislikes will determine if the products are

desirable.

 Feedbacks

 Number of participants in campaigns and challenges - This will indicate how much

young people are willing to own Nike products

 Number of visitors in websites (new and traditional) – Website traffic will indicate the

number of new, productive leads established.

9. Budget

Item Purpose Cost

Social media accounts To interact with millions of young people Zero
across all social platforms and to display new
products
Three influential To increase popularity of Nike products among $1 million
personalities from young people who draw inspiration from these
sports, music and influential personalities
fashion
Online Questionnaire To assess consumer behavior and $500
and survey demographics
Adverts on google and To reach a wider audience $1million
other applications
The campaign is projected to increase the annual revenue of Nike from $51.4 billion (FY2023)
to $70 billion within a period of five years.
10. Action Plan
Timing Activity Type Brief Description Audience Owner
February, Social Media Create profiles across all General Nike
2024 presence social media platforms population
May, 2024 Sign one Add one young celebrity 11–30-year- Nike,
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influential from the sports to Nike’s olds influential

personality portfolio personality
August Outfit Challenge audience to 11–30-year- Nike
2024 challenge recreate outfit by influential olds
personality
October, Introduce new Partner with the influential 11–30-year- Nike,
2024 sneakers personality to introduce new olds influential
sneakers or rework existing personality
sneakers
February, Sign second Add one young celebrity General Nike
2025 influential from either music or population
personality Hollywood to Nike’s
portfolio
May, 2025 Outfit Challenge audience to 11–30-year- Nike
challenge recreate outfit by influential olds
personality
November, Introduce new Partner with the influential 11–30-year- Nike,
2025 sneakers personality to introduce new olds influential
sneakers or rework existing personality
sneakers
February, Sign influential Add one young celebrity 11–30-year-
2026 personality from the sports to Nike’s olds Nike
from sports portfolio
industry
May, 2026 Outfit Challenge audience to 11–30-year- Nike
challenge recreate outfit by influential olds
personality
September, Introduce new Partner with the influential 11–30-year- Nike,
2026 sneakers personality to introduce new olds influential
sneakers or rework existing personality
sneakers
November, Follow up Survey to determine the Nike Nike
2026 results of the marketing plan

11. Risk Factors

One of the most formidable risk factors is the flooding of the market with counterfeit products.

 To mitigate this risk, Nike should eliminate retailers and wholesalers and sell directly

through Nike stores and a few authorized distributors.

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 To solve patent disputes and litigations that taint the company’s image, Nike should

ensure that such cases are heard and an amicable solution in reached promptly.

 To tackle the backlash from animal right activist, Nike should seek alternative raw

material o kangaroo leather to use on its products

12. Attributions

Statista :https://www.statista.com/statistics/243199/number-of-employees-of-nike-worldwide/

Business Model Analyst :https://businessmodelanalyst.com/nike-pestle-analysis/

Nike: https://www.nike.com/

Finbox.com :https://finbox.com/NYSE:NKE/explorer/interest_rate_effective/

Nike: https://investors.nike.com/investors/news-events-and-reports/investor-news/investor-news-

details/2023/NIKE-Inc.-Reports-Fiscal-2023-Fourth-Quarter-and-Full-Year-Results/default.aspx