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Sheena and Ross wholesale supplies
Sheena and Ross wholesale supplies
Nike 1.0 Introduction

Nike is headquartered in the United States, primarily listed sportswear, footwear and equipment supplier, was established in 1962, originally known as Blue Ribbon Sports. Nike is the world's leading sports apparel and equipment market share in excess of 47 in the entire global manufacturing (Nike.com, 2011) of.

Nike produces all kinds of sports equipment, such as running shoes, sportswear, football, basketball, tennis, golf, etc., and now Nike follows the global fashion trends, is well-known, popular youth culture, hip-hop culture provides some fashion. Nike and Apple team has recently produced the Nike + product can be linked to the iPod in the shoes of radio monitoring the performance of athletes. In addition, Nike has become the three companies which is climate-friendly company, to create a better image, top to customers.

Nike's excellent marketing strategy is to achieve its own target market. Nike believes that the "pyramid of influence" is a small part of the top athletes preferences impact product and brand choices. So many athletes Nike spokesperson, professional teams and college sports teams signing, publicity and promotion of their products to customers. Nike paid serious technical production, design and marketing, such as e-commerce, high-tech running shoes, Nike + Apple, Nike and other outsourced most of their products factories are located in Asia, such as China, Indonesia and India's attention.

2.0 PROS Nike's core marketing strategy

Nike has invested heavily in the proportion of their marketing strategy and product disdain. In order to maintain their dominance in the industry and maintain a competitive advantage, Nike company actively respond to market trends and changes in consumer preferences, by adjusting their marketing strategy, a combination of existing product lines, develop new products, styles and categories and the impact of various marketing strategies through sports and fitness preferences. Now the pros and cons core Nike's marketing strategy and we are discussing with their related marketing theory, help us to a deeper understanding.

2.1 Distribution

More efficient product distribution is more sales, thus more profit. The right product, at the right time and not only affect the effectiveness of the delivery, but also resulted in higher levels of customer satisfaction and loyalty to our customers. Nike distributed at different levels of basic products. High premium products to certain distributors, while the low price will discount the price of the high retail stores such as Wal-Mart (Nate Ĵ, 200, 44) for sale.

Nike has been used as the first to market with an e-commerce website has become a leader in e-commerce. The company offers 65 styles of Nike shoes purchased in the US market (Nike, 2000) launched its e-commerce site in April 1999. The plan is for the first time a company through the Internet to provide massive footwear, and provide a competitive advantage, Nike.

2.2 Advertising and Promotion

Nike did some celebrity athletes, can draw attention to their products, such as Tiger Woods, Ronaldo's contract. This has created Nike's relatively high level of visibility. In addition, Nike also through the mass media (Goldman S, 2000, p. 154) with a lot of advertising. Nike's brand image, including Nike name and trademark are considered to represent one of the world's most famous brands. Nike name and related trademarks appear in the player's shirt, pants and everywhere. Its large-scale advertising, celebrity endorsements, high-quality products to enhance their entire brand and image. For example, when a particular brand of sneakers celebrity sponsored athletes, the brand will be associated with success.

2.3 Price

Nike's goal who cares more about the product, rather than the effectiveness and quality of consumer prices. In this way, the price is not affected too much (Frank, 2004, pp173). Nike, which makes the set relatively high prices than its competitors. This strategy focuses on consumers who like Nike and promote product value to a higher level. Who think that a product is a high-quality customer may be more frequent, sustained costly. Once a consumer product development intimacy, they came to the people associated with the product, and will pay the cost of any product offer.

Nike price with vertical integration strategy, they took a different, they are also engaged in a variety of channels necessary to control the level of operating costs, thus affecting the pricing function (Goldman S, 2000, pp154) participants channel level ownership .

2.4 Market segmentation and target

Most of Nike's products are mainly consumer movement. Nike is a division of the master, who split the general market for athletes, both men and women aged 15 to 35 from Nike's target market is active people who enjoy high quality sporting goods, especially footwear. Nike focus on creating product innovation, brand leadership and high-level retail shopping experience. Agreement these customers between Nike and Nike sports team goals, the college's sports teams sponsored products, and eventually extended to the members of these teams. While other people might buy the product, Nike focused on athletes than any other group of people, even if it's goals for youth. This strategy is the ability to reach a large number because it is particularly successful athletes.

Nike's core marketing strategy 3.0 CONS

Although Nike's marketing strategy has brought a lot of companies have a positive impact, but the negative impact to the Nike. This will determine the allocation of the negative impact of the high cost is incurred, spokesperson of influence, and competitors.

3.1 Costly

Because Nike has implemented a number of marketing strategies, which occurs in the production and promotion of its products and high cost. This cost is to handle the increased inventory, design, advertising and production. (Abhiroopsur, 2009) In addition, inflation has raised the cost of raw materials and transportation. To solve these problems, Nike has increased the price of the product, reduced its marketing budget. Therefore, it may be harmful to long-term growth of Nike. (Tao Li, 2011) according to Boggan (2001), the Nike also employ child labor in Cambodia in order to reduce their production and labor costs. This has affected its brand image, it may be a lot of people to resist and stop Nike from Nike to buy anything. (Boggan, 2001 年). In addition, Nike has been using child labor in the production of soccer in Pakistan. (TED, 2011)

3.2 spokesperson impact

One of Nike's core marketing strategy is to rely on a group of players to promote their products. Nike high-profile athletes like to have as a spokesperson, as runner Steve Prefontaine • - Michael Jordan and LeBron James. Athlete of changing consumer preferences, changes in consumer tastes and priorities, but also positive and negative impacts consumer purchase decisions. Nike spokesperson selected action and attitudes may impact its promotional strategy. For example, it will attract athletes admirers, if you are using a popular athlete as a spokesperson for Nike products purchased. On the other hand, if the athletes were involved in drugs or any unethical attitude will affect consumers not to buy Nike products, Nike, which will affect the company's sales and profits. (Cloak M., 2011)

3.3 fierce competitor

Nike has the face of fierce competition. Their rivals Adidas, Reebok, Puma, etc., and the competition is coming closer and Adidas. In addition, the product line is slightly different between Nike and Adidas. Nike shoes, mainly in men and women who are 15 to 35 years, while Adidas is focused on footwear for men, women and children between the age of 10 to 30 This suggests that there is less diversity of Nike's marketing strategy. They can also provide children's footwear, in order to attract more parents to become their potential customers. In addition, Nike's distribution strategy focused on the domestic market is the United States, and the main office of Adidas in Germany, but it is concentrated in the European market. Therefore, Nike should distribute its products to more regions and countries in order to get more potential customers, and achieve greater reputation. (Allick al., 2000)

Nike's core marketing strategy 4.0 Risk

Nike faces many risks when they use their core marketing strategies to achieve their goals, these risks may come from the internal and external environment. Risk will have a negative impact on the future development of Nike, for example, the market share of reputation in the world, brand image and customer loyalty.

4.1 changes in market trends, consumer tastes and preferences

Nike needs to stay on top of changes in consumer tastes and preferences demonstrated by changes in fashion. So, faced with the risk of Nike fashion trends may change so fast, Nike did not follow. For example, for a period of time, the world is focused on sports personalities and Nike's products are still the majority of the customers, this will lead Nike to go back to their competitors, if they can keep up with the trends of the competitors. As another example, such as social change, women are becoming more health conscious and are increasingly being used as the target of sports apparel and footwear industry's growth potential. Due to the changing tastes and fashion consumers, these industries are always changing. If Nike can not follow the fitness trend in the market, they will face the risk of losing market share. Risks and issues with this competition, Nike should be positioned as a trendsetter, not a trend follower, and is responsible for their customers. (St. John's University, 2004)

Nike 4.2 changing product

From the above risks, changes in fashion and customer preferences adversely affect its marketing strategy. Therefore, Nike should introduce new products in order to maintain the loyalty of their customers and attract new customer markets. However, it will also have a negative implication, if Nike's rapid implementation of new products.

As we know, Nike's products focus on the athlete's footwear, apparel and equipment, and their target consumers are athletes. But now the global trend of fashion and personality. Therefore, Nike changed its marketing strategy and product design has become more fashionable and attention to young consumers. It brings, because of the risk in the eyes of customers traditional Nike, they think only sell Nike sports products. Fashion or change the product style is a lack of imagination for customers to buy. Not all customers can follow the change of Nike. Sometimes, customers may feel tired, because they can not follow the product changes will lead Nike Nike loses its pull-down customer loyalty and market share of the customer. (St. John's University, 2004)

Therefore, Nike market and customer preferences, and the time the customer buying behavior should be analyzed from time to time. Nike can, buy sportswear and footwear requirements in order to prepare a better understanding of the customer's taste questionnaire to their customers, but also to collect consumer feedback and suggestions.

4.3 extended to overseas

One of the main Nike's marketing strategy is to expand overseas, to become the world leader. This will also bring risks, Nike, when they expand global business. For example, the Nike company to outsource their products to developing countries such as China, Indonesia and Thailand. Foreign currency exchange rate fluctuations may undermine Nike products produced by its purchase of raw materials more expensive and harder to fund independent manufacturer of business. In addition, the global economic downturn affected the overall business operations outsourcing country. For example, the high inflation countries will increase the cost of outsourcing, reducing profits Nike. More importantly, the war and the fuel price volatility may also result in long-term instability Nike. (Florzak, 2011)

5.0 competitor - ADIDAS

5.1 IFFICULTIES compete when faced with ADIDAS NIKE

5.1.1 Marketing Strategy

Most likely face a difficult Adidas is, in its marketing, compared to its competitors, Nike, Nike spend more money on advertising and promotion of their product reputation, Nike spends about one hundred and thirteen billion in 1998 year, involving like Tiger Woods, Michael Jordan, Carl Lewis and other celebrities paid lots of money to these celebrities (Bedar already, 2002), as of 2010, Nike spent $ 800 million of non-traditional advertising by promoting their products in addition to television and other media and there is a 40% reduction in TV and print advertising, and in 2006, Nike launched the Nike + platform is a multi-channel, multi-sensory between Apple and Nike technology integration, allowing staff to track performance (Fluffylinks, 2012), in essence, on, Adidas will have a hard time trying to compete with Nike's advertising and promotion, taking into account the use of Nike's production of low labor costs, Nike can afford to spend so much money, to create awareness, to win consumers for their products and the use of celebrity loyalty. Adidas will have to spend more money on advertising, and create to promote their products, the minds of consumers and in accordance with the development trend of technology, such as innovative approaches, Adidas can collaborate with IT companies, such as Samsung to create advertising their products Innovation means.

In its fiscal credibility Adidas and Reebok 5.1.2

Adidas and Reebok stitching together of the merger will be a good deal led to Nike, but the two companies have a bad reputation due to financial problems almost led them to go bankrupt, because they work together. Expansion of its business will take time to develop, because they must have a strong advertising strategy, until Asians. If Asians like their ideas, then they may also be adjusted to the culture in a country like China, because it has one of the largest groups. In the long term, Asian countries such as China may also take a long time to cooperate with the company's future with Chinese factories terms. This may be their biggest problem, which will allow them to take a long time to lead one of Nike in its market areas. To go through all that they will be spending a great run so that the company could go bankrupt again. (Adidas reschedule, 2011)

5.2 HOWADIDAS compete with Nike?

5.2.6 focus on emerging markets

Adidas and Nike can use its weakness is focused on the local market, Adidas can capture emerging markets, and has market leading position as India and Japan. In Latin America, which experienced a sales increase of 38% in 2007 (ReComparison, 2012), although it is to compete with Nike in China, it should focus on its rankings provide excellent channels only invest in the market, long-term growth and profitability outlook should focus on expanding its share of the unreached areas, particularly in China, Russia, Africa and the United States. It should also ensure that it distinguishes between consumer buying behavior, because it differs in different regions, different countries and understand that this will be an additional benefit Adidas.

6.0 Conclusions and recommendations

From the above analysis, we learned about the advantages, disadvantages and risks associated with the core marketing strategy and marketing theory Nike. In addition, when Nike difficulties they face competition with Adidas. We distribution, price, product design, marketing, advertising, market segmentation to analyze Nike's competitive advantage in the global market discussion. We also found that the other side of the core of Nike's marketing strategy, such as the expensive advertising, spokesperson of the global economic behavior has a negative impact of Nike's brand image in raw material costs. More importantly, the risk of Nike's core marketing strategy, such as Nike can not follow the world fashion trends, profits have been when the exchange rate and economic recession, expanding to the world.

Nike has maintained and continues to maintain them at the top of the production and marketing of sports apparel and equipment. However, Nike should consider competitive pressure is very heavy, and not let the "sleep on it." So, Nike should continue to look for effective marketing strategies to keep their top leaders positions.

In the case of the following recommendations of the marketing and management capabilities. Nike should be through a new product release, a competitive pricing strategy, advertising and promotional activities to increase its market share. Nike should also adjust the market from competitors themselves mainly through large-scale promotion strategy and pricing strategy, Nike more attractive to the customer's advantage. In addition, Nike must improve its corporate social responsibility, enhance their own image. More importantly, Nike should pay attention to their R & D departments of different people have different tastes in order to obtain market diversification objectives.

All of the above certificate from the competent marketing management, Nike can help maintain its top market leader and maintain their competitive advantage.
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