Nike Product & Marketing Mix

FASHION

MANAGEMENT

MARKETING

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JAYESH

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RAUSHAN

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MIX

VRINDA

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RIDHI

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PRIYANSHI

How it all started ?

In the late 1950s, coach Bill Bowerman was dissatisfied with available running spikes, which were constructed of weighty leather and metal.

Bowerman was also a mentor, coach and friend to Phil Knight, with whom he co-founded Blue Ribbon Sports, the precursor to Nike, in 1964.

Nike - A brief history

Nike - valuation

PRICING

Value based - 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.

Nike - Pricing strategies

Premium Pricing strategy 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 highprofile celebrity endorsers is indicative of such emphasis on premium branding.

Nike - Pricing strategies

Nike - SWOT analysis Nike Inc.’s SWOT Analysis emphasises the importance of product development to maintain a competitive edge. However, the results of this SWOT Analysis point out some possible new strategic directions to further enhance Nike’s strengths global performance and leadership.

Strength

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Strong brand image Rapid innovation processes Extensive global production and distribution network

Nike - Pricing strategies

Weakness

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Labor controversies Limitations in the product mix Limited presence in developing markets

Opportunities

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Improve labor/employment ● practices Improve the product mix ● Increase market presence in developing countries ●

Threats Tough competition Rapid technological innovation Imitation

PRODUCT

““Focus on making the product great… the profits will follow.”

Steve Jobs ( 1955 - 2011 )

Quality product Nike values the consumer and the importance of providing a quality product. Nike quality and durability is a critical part of their strategy to be able to command high prices for their products.

The message to consumers is that Nike wants to make your life better at something you are passionate about.

Backpacks Shoes & Sneakers

Fitness bands Digital App

Nike - product categories

Apparels

Shoes

Products Nike values the consumer and the importance of providing a quality product. Nike quality and durability is a critical part of their strategy to be able to command high prices for their products.

The message to consumers is that Nike wants to make your life better at something you are passionate about.

Nike product- Shoes

Nike Air Max

Air Jordan XX3

Air Zoom Yorker

Air Jordans

Air Force 1’s

Quickstrikes

“The people who are crazy enough to think they can change the world are the ones who do.”

– Apple’s “Think Different” commercial, 1997

Innovation The shoes sold out within 24 hours, despite an unprecedented $50 retail price.

Nike had risen to the pinnacle of sports design during the ’70s with a straightforward, utilitarian approach to product — all-purpose and highperformance shoes that had never been made before.

Marion Franklin Rudy In 1977, he presented his vision to Phil Knight and Nike had found Air.

Nike - product innovation

Innovation His new shoe, the Nike HyperAdapt 1.0.

He places a strong emphasis on, “the mix of innovation, story and an emotional connection between consumer and product is part of what informs Nike’s brand identity.”

Tinker Hatfield

Nike - product innovation

Apparels

Supply & Demand Nike has a variety of sporting products for everyone. From tracksuits, sport shorts to casual clothes such as shirts, jeans, jackets, socks, hats.

Nike has a variety of options for products, but Nike also owns Hurley, Converse, and Jordan brands.

Nike - product categories

Nike - product packagings

PLACE

Nike - Outlets

Multi-brand stores and exclusive Nike stores across the globe.They sells its product to about 20,000 retail accounts in the U.S. and in almost 200 countries around the world.

Retail stores Number of Nike stores worldwide was 1,152 in 2019 compared to 1,182 in 2018.

384 stores were located in the U.S. and 784 internationally.

Nike - Distribution Channels

Niketown retail outlets (companyowned) They allow access to business and market information.

Unique customer experience — shopping becomes an experience in itself.

Nike - Distribution Channels

Nike Online Store - E - Commerce websites like Myntra.com, Flipkart.com, Amazon.com etc to promote their products.

Online e-commerce growth of NIKE

NIKE reduces India store count to 150 Nike aims to focus on online sales in India moving forward.

Nike’ customers AGE : 18-35 YRS Nike targets professional athletes and sporty individuals (specialized and innovative products). And also for people who regularly exercises and for those who will wear for fashion Psychological tactics by sponsoring great athletes with tremendous achievements and victories.

Size, reachability, measurability and behavioral variables Nike - Target Audience

Personal selling Nike’s personal selling efforts typically happen in stores.

Store personnel are trained to provide assistance to customers.

Nike - Distribution Channels

Nike id Studio NikeiD Studio is a highly-successful NikeiD online experience, that enables customers to design and customize Nike shoes and products. ● ●

Development time was approximately eleven months.

Built in Flash client side with an ATG back end utilizing Nanonation kiosk software and Scene7 dynamic image creation.

Nike - user experience

PROMOTION

Brand - Slogan Dan Wieden, the head of ad-agency Wieden & Kennedy, dreamt of _______________

Gary Gilmore, who killed two people in Utah in 1976.

Gilmore was sentenced to death in October, and sent to Utah State Prison the same year.

When he reached the end of death. row three months later, on January 17, 1977. Facing down a five-man firing squad, Gilmore said: "Let's do it”.

Nike - Distribution Channels

Advertising Advertising is one of the biggest contributors to Nike’s ability to attract customers.

Nike spent $3.031 billion on advertising in 2014.

The company heavily relies on advertisements, especially those that involve high-profile celebrity endorsers, such as professional athletes and sports teams.

Nike - promotion

Public relations 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.

Nike - Public relations

Cristiano Ronaldo | Seriea

LeBron James | NBA

Rafael Nadal | ATP

Nike - Celebrity endorsements

Nike - Sales promotion

Air Jordan

Nike’s collaborations Nike promotes their products with having celebrities, professional and college athletes with sponsorship agreements.

Nike spends over $3 Billion in advertising a year In 1982, Nike produced their first advertisement.

Nike has been given various awards for their advertisements (Emmy award twice for best commercial, Advertiser of the Year in 1994 and 2003)

Nike - Public relations

Air Jordan For 5 continuous years, Nike reportedly offered Jordan $500,000 a year.

Jordan's agent David Falk coined the term, “Air Jordan”.

According to Falk, designer Peter Moore then sketched the brand's iconic winged logo in just a few minutes."And the rest is history”.

Nike - Celebrity endorsement

Peter Moore - Former Creative Director of Nike. Inc and Adidas

Become a Nike’s sponsored athlete of your college.