Marketing strategy Essay

Nike Inc. founded in 1964 by Bill Bowerman and Philip Knight is global attracter in variantswear and footgear industry. With Nike occupying around 45% of global martplace shargon in footwear and app bels and moving further ahead, much of the agreemental triumph enkindle be credited to its tradeing strategy that concur swear outed the organisation achieve tax in make it worth millions e real fiscal year ($18 billion being in 2008). Nike Inc. UK has a major martplace in the UK for seaworthiness trainers and slips departd for health and physical fitness purpose benefits to the consumers.Nike understands the importance of commercialise analysis and trade strategy based upon those analytical processes. capacious total of research and analysis have been carried on in sagacity consumer ask, UKs surroundings and potential opportunities. This upgrade consists of situational analysis SWOT of Nike in UK and besides presents situational analysis suggestion of fo calizeings in which combative edge idler be gained against its tinges with segmentation, targeting and positioning of the convergences.The importance of tradeing verifiables has excessively been highlighted in the report and thus suffers Nike with a glimpse of marketing environment in UK and the expectations with mapping of marketing mix (4Ps). Introduction Nike has predominantly been successful in shoe manufacturing and distribution among the shoe manufacturers with its superior smell, high tech, ultramodern space that tack together on going demand of the market and its trends. From professional acrobatics to al well-nigh common contract for fitness trainers, Nike has got fitness berth and trainers in wholly shape, sizes and colours.Some of the most famous Nike trainers and fitness shoes atomic number 18 Nike + (spelled as plus), publicise Jordan, Nike Shox, Nike Lunar glide, Nike Air soar, Nike 360 and m any more(prenominal). Nike is the sole distributor of Nik e commerce mark represented on each of these and many of its fitness trainers interchange glob eachy. High quality material, number and cut and technological enhancement of the shoes as per requirement of variant activities thus make Nike the best prime(a) for fitness trainers and shoes. Marketing Analysis and strategic evaluation of a follow is an important comp anent of any organisational success.Without well-structured marketing strategies and road maps to planning and achieving them, no organisation set up be at the point where they want to be. Nike in UK covers a fair touchstone of market share and revenue for the organisation. The immense market diversity, brand awareness in market and consumer base allegiant to high quality increases so help to its cause. On the new(prenominal) hand, UK market is generally health conscious(p) and trendy. Trainers and fitness shoes are so in much demand over last few eld within the country itself.Marketing Audit (Nike Inc. UK) Nike Inc. UK follows management strategies that combine with vi of the most important external factors that send packing have an partake on the organisation. PESTLE is a situational analysis tool that mickle be utilise by firms to conciliate their position against possible external influences much(prenominal) as politics, economy, society, technology, environment and law. Nike and its positional stand against background of UK market send away indeed be analysed in the following way Political Factors Nike Inc.has a easily permanent political environment and an economy welfare provided by the state. Consider adequate to(p) hail of legal requirements were accomplished by Nike during its entry in the UK as an organisation completing all political alignments. Considerable arrive of fitness shoes and trainers are imported in UK which is sold all over. However, Nike superpower have to face challenges if government drafts policy or quotas on Nike shoes that mess be imported from its labor sites such as Asia-Pacific. frugal FactorsUK economy has been unstable in recent years. The double dip nook few years back, inflation rate fluctuating abnormally, growing nutrition courts, income tax rate increments and other economic factors directly or indirectly affected Nikes performance in the UK with comparatively weak sales figure. Economic balance, employment rate and PDI all must be stable and firm enough in the economy to help a handicraft sustain. Nike therefore needs strategic move that can guarantee its sustainability in such circumstances. Social FactorsUK market comprises of flock from multiple culture, religion and ethnic backgrounds. Therefore, Nike needs to understand the social system and practice of all these people whenever approaching them. Sales and marketing of the fitness shoes should be therefore based upon social acceptance of methods, peoples lifestyle and their way of thinking. For instance, consumers in UK who purchase fitness t rainers are pretty health conscious and the numbers are growing as well. Hence, Nike needs to provide more health benefitting shoes and apparel.Similarly, social responsibility image of Nike has to be importantly boosted with accusations of running worn spotshops in Nike factories in Asia which it has tried to improve with facilities, factory improvements and allegiance towards further improvement. Technological Factors Technological factors are an important aspect that needs to be considered by Nike Inc. UK . Technological advancements in fitness shoes need to be updated and research and discipline of such apparels have to be advanced.With fitness shoes that are de residenceed such for injury legal profession, sole strengthening, cannonball along sports, less sweating and many other features the advancement has been unimaginable. UK guests are updated and hap good fourth dimension researching on features and quality of the mathematical return they want. Nike therefore has to be technologically capable of providing client satisfaction. Environmental Factors Nike needs total understanding of UK market as consumers are concerned about how products they purchase can make an impact upon environment.Production materials, process and sites can be insalubrious to environment in many ways. This can be a unsafe concern for environmental activists and hence persuade consumer notions. Nike has to be able to intercommunicate the consumers in UK with their continuous apparent motions in making Nike shoe production environment friendly and use of raw materials and the production process least bruising to constitution. Legal factors Nike has to oblige with all the legal regulations and in relevance with companies operating(a) in the UK.They must consider their business privileges as well as legal responsibility in concern with marketing, promotion and sales in the Kingdom. Some of the legal acts that they need to consider are regarding press, trade acts, act s on sales and supply of goods, adverts and campaigning, television adverts, environmental acts and so on. Without its compliance of local laws and acts Nike would suffer a huge blow in gaining consumer verify as they cannot operate with efficiency. SWOT ANALYSIS FOR NIKE FITNESS SHOES Strength Nike is a global leader in shoe manufacturing and has been in market for very long time.There is a great amount of customer trust and loyalty based upon the very fact that Nike has been able to provide highest quality fitness shoes with modern techniques and radiation diagram over years. The research and ontogenesis investment in Nike is huge. The very reason has pioneered Nike in producing ultra-modern technology in fitness shoes. Shoes with air compressed soles for low pressure on soles, ankle protecting designs, speed boosting trainers etc. have all been Nikes brilliant ideas in meeting with modern demands of consumers.Beside innovations, Nike withal provides consumers with choice of intention their own shoes in the UK. Nike has a global aim and their revenues are worth billions . Distribution channels for Nike are well established and it has divers(prenominal) clutch of products to cater the consumers with. Weakness Nike Inc. UK has had to compete fiercely against well-nigh(prenominal) of its competitors in recent years with economic downfall regarding price of the product. Several of Nikes fitness trainers are comparatively expensive than other brands. With buyers focusing their brainpower on cost efficient purchase, Nike prices are a thought for many.On the other hand, Nikes sweatshop factories in Asia which are not owned by Nike themselves but subcontracted had tarnished Nike image among many people. Nike has considerably put much effort in improving the working condition and lives of its workers thereby. Opportunity UK market has loads of potential opportunities for the Nike. With numerous amounts of health conscious people and growing sport enthusi astic generation of youngsters, Nike has the probability to grab market by introduction shoes and trainers as per the consumer needs.Use of internet is wide and common in the UK and e-commerce has been receiveing in a tremendous pace. Nike can use this opportunity to promote, inform and cater its consumers with its fitness trainers. Threats Nike has been competing fiercely with rival companies such as Adidas, Puma, Asics, Umbro and others for fitness shoe production and distribution in UK market. Besides, challenges from competitors, forged Nike footwear relatively tuppeny and of low quality are circulated by counterfeiters in market which has hampered Nikes reputation and brand.On the other hand growing economic uncertainty, government cuts and rising inflation have been challenging Nike sales. COMPETITIVE returns Competitive value can be defined as strategic advantage a conjunction holds against the competitors in the industry. It can be pronounced as the positional state of confederation when it is able to create a benchmark in terms of profit in the industry. Nike has the militant advantage over its rivals through wider market coverage, high gross revenue and customer loyalty as well. Nike fitness trainers with their high quality design and attributes have been able to outperform other shoe makers.Nike therefore wants to hold this competitive advantage over its rival sustainably. Competitive advantage can be achieved either by, Cost advantage techniques when production is do in bulky quantity and products sold in relatively cheaper price or note techniques of producing unique featured products against competitors and providing relative value to the good priced. In 2003, Svend Hollenson provided heptad trace factors that provide organisations with competitive advantage. Nike with all these consideration and seven key factors can boost its performance therefore in market.The seven factors are Economy of scale Economies of scale refers to the term when production cost of a company is relatively lower than its sales revenue and earnings do are from massive sales. These companies produce goods on regular basis and repress shortage in the market. Economy of scope Economies of scope relates to the idea that cost of production can be further reduced by other organisational means such as joint administrative firms for contrary products, alike(p) storage for different goods and cost effective methodologies use in production to distribution.Strategic thinking The core competence of any business to bring home the bacon in modern business world is strategic thinking. With enormous amount of competition and impediments that can affect the business, Nike should be able to analyse its upcountry and external environment, assess operational lapses so as they can provide effective strategy to eradicate arrears and achieve their objectives. Use of local market Global companies such as Nike have ample opportunity to provide their r ange of products to local market in the UK.With well informed and health conscious consumers growing on daily basis, Nike can exploit the opportunity to provide its trainers in all parts of the country. Nikes product range and standards are well accepted and with more quality products coming in it can boost with learning of local market and advantages it can abbreviate from. Ability to provide global run Nike has been able to provide its product and service throughout the globe. With communication, transportation and assorted technological developments that have made international trade reliable, company such as Nike have been able to market and cater their business worldwide.Use if information technology in global service is an essential tool which has been used by Nike to concede its goods and services. Competitive advantage (Company particularised) Every organisation should have a distinct and unique feature which provides a competitive edge over its rival companies. Nike h as been providing high quality footwear from their founding days. Superior technology, design and features of Nike footwear are second to none. This very reason has made Nike achieve higher market share globally than its competitors by building excellent customer relationship.Human resource (competitive advantage) Nike and its success can be credited on high level to the employees of Nike who with their commitment, skills and attitude have made tremendous development and market coverage for them. Human workforce is an essential element of any business where firm should be able to provide the employees with business specific skills. This helps organisation achieve most out of the available workforce. SEGMENTATION, TARGETING AND POSITIONING (STP)The marketing strategy of a company starts from mission and vision statement to picking of market and then positioning of the plans and objectives of the product in the market. Philip Kotler (1994) provided segmentation, targeting and positio ning as the essence of strategic management for any organisation. Here, in terms of Nike Inc. UK, we can suggest following steps to be followed for strategic move section Research on existing market, types of customers and distribution of similar market should be carried out. Targeting A target market (generally mass and more productive) which has to be served has to be analysed.Positioning The plans are carried out to be performed in the target market and all the activities positioned. Nike Inc. UK should be able to research and develop the segments within UK market where consumers with similar characteristics can be served. The three approaches of market segmentation such as differentiated, undifferentiated and concentrated can be used to receive segments and plan accordingly by Nike. Nike can distinguish its market with several features and variables which determine the general concept about products that Nike offer, fitness shoes in this example.Socio-demographic variables su ch as age, gender, occupation, income and family etc. can be considered. It may also be based on geographic information such as area, area density, household and neighbourhood, market size and more. Behavioural data can be assessed to determine customer loyalty, buying trends, user choice and others. Psychographic studies would help Nike understand consumer lifestyle, fashion choices and many more. Nike and its segment targeting approach in the UK Socio human ecology Nike Inc. UK provides fitness shoe and trainers in wide range and designs to offer different kind of customers.Trainers and shoes come in all shape, size, specification and quality. Trainers in multiple ranges for men, women and kids are available in the UK market. Sizes are mark effectually for fit in purpose and available readily in all the sales stores. Fitness trainers for men range from ? 38 least for Nike Zoom to ? 120 highest for Nike Trainer 1. Women have wide range of choice as well from Nike Air Cardio desig ns costing mere ? 28 to ? 140 for Nike Air Max+ 2011 id. Kid products range from ? 18 to ? 100. Geography Nike has made its presence felt in all the major towns and cities in the UK.The points those are most likely to be consumer targeted have been covered as market by Nike. However, reaching the country sides would be a challenge and point of thought if Nike wants to expand its business all over the nation. Nike provides point of sale services in London, Birmingham city, Glasgow, Manchester city, Edinburgh and many other cities. However, internet usage is the only virile point for other geographic parts to purchase Nike trainers. customer Behaviour It can be important for Nike to realise the importance of customer behaviour in UK.To learn more about consumer preferences and expectation, it is important to communicate with them and share their experiences. Customer loyalty can be earned by providing customers with benefits and services such as after sales, exchange facilities, wa rranty and making them feel cared for. Nike has to develop such credentials to learn more about customer side and capacity. Consumer psychograph Nike has so far been successful in providing trainers and fitness shoes to alter demands of consumers that are available in the UK. Prices of the trainers range from ? 28 to ? 140 which shows that Nike has its focus on all sets of customer status.Some exclusive products are also sold in the market that focuses on trendy, fashionable and youthful nature of trainers and fitness shoes for the consumers. POSITIONING OF MARKET Nike Inc. has been very successful in positioning itself as a global leader in athletic footwear market. Even in UK, Nike has been really successful in practical application huge market, enormous amount of consumer trust and therefore considerable amount of revenue for the company itself. Technological advancement, high quality materials, innovation and design in Nike footwear are what even the competitors try to imitat e.Even though several European brands provide Nike with stiff competition in the UK, Nike has been efficacious in fending off challenges and come up with even better trainers and footwear as per the demand of demanding health conscious population. With a very competitive pricing strategy that is in concern with market expectations, Nike provides footwear of different sizes, design and price for different market segments. Nike has invested considerable amount of time and money on research of UK market since years which has made it one of the most trusted and loved brand in the UK.Such strong position and market share therefore is a positive sign for Nike in days to come. NIKE AND ITS merchandising OBJECTIVES AND GOALS IN THE UK Nike has been established as a reputed business enterprise in the UK for years now. Their capability and product strong suit are reflected in choice of people in using Nike fitness trainers before any available option. SMART based goals and objectives which r elate to features of objective setting such as specification, measurement, attainment, realisation and time are essential for Nike to go through in their strategies.Here, we analyse how Nikes objectives can be link to the SMART approach. SPECIFIC Nike is the leading women fitness provider in UK with revenue grossing worth 200 million dollars in 2010. Nike Inc. wants to double the gross amount by the fiscal year of 2014. MEASURABLE Nike targets revenue of $27 billion by the end of 2015 as well as cumulative gold flow increment to $12 billion. ACHIEVABLE Nike wants to provide UK consumers with 100% cotton plant used fitness trainers based upon consumer survey in coming years. Nike Inc.has plans to plunk for its own athletics footwear during the 2012 summer Olympics in London by sponsoring all the American athletes participating in the games. REALISTIC Nike Inc. UK wants to increase its market coverage in the UK which is 18% now to 25% within 2013 as Nike footwear have had tremend ously appreciated response and promotional endorsements are to be boosted during Olympic games. TIME BOUND All afore mentioned plans and objectives of Nike Inc. UK are to be completed in certain time allocated for each objective completion.MARKETING STRATEGIES AND PROGRAMS OF NIKE INC. UK Nike Inc. UK would have to define its objectives and the process of determining the achievement of those goals. Out of various strategic plans available, Nike Inc. UK can use growth strategies using both product and market. Figure source http//highn. me/ansoffs-matrix-planning-for-growth/ Nike Inc. UK can develop its strategies by using various methods of strategic moves such as Market Penetration by providing competitive prices against others, promotional campaigns, enhancing customer support and care etc.Market study by getting into newer geographic area, building newer distribution channels, creating new product dimension, creating new market segment etc. Product Development by producing exclus ive products, creating a new trend, using technological advancements in product, diversifying product ranges etc. Diversification by producing new merchandises than usual for instance sweat free socks for Nike trainers, or other products to match Nike footwear and apparels such as caps, jogging scarfs etc. THE MARKETING MIX (4PS) FOR NIKE INC. UK Nike Inc.UK and their marketing strategies may be subject to changes from external forces of environment such as politics, economy, society, technology, environment and law. The company however has no control on these factors and have to make adjustments on several occasions. The 4 ps are variables that the organisation can control within its own marketing strategy and is generally cognise as 4 ps of marketing mix. Here, we analyse Nike Inc. and its marketing mix. Product Nike should be able to provide product variety to the consumers in UK. With people interested in different sports, Nike can make an impact on market here.The quality and features of the new trainers have to be of highest quality, design and durability. Latest trends and technology used in performance enhancement, accident prevention and safety of athletes should be made available in Nike trainers. Sizes and shapes have to come out in all different ways and the products need to be attractively packaged as well. Price Nike needs to focus on all kinds of customer and research on the customer behaviour or purchasing pattern in the UK. Though Nike already provides trainers from as cheap as ? 28 to ? 140 and more, the prices need to be justified.List of the prices and their features marked with products can be helpful. Price discounts on times can be helpful for boosting business. Place Nike should focus on locations where footwear can be retailed, distributed or sold more efficiently. Study of market is necessary to determine where Nike can make best out of its sales. Placement in this case may be stores around sport clubs, distribution to other sellers and others. schooling technology has covered almost the whole part of UK which can be utilised by Nike to exploit the market and attract the customers. Promotion Nike Inc.has used several of global athletes as brand ambassadors for the company. Their very link with the company and attachment has provided lime light to the Nike trainers as well. The company can advertise its trainers through media create sales promotion from time to time and even sponsor future sport events to promote their products as well. Conclusion/ recommendation Marketing Strategy is an important aspect in achieving the organisational goals and objectives. Only with considerable investment in analysing Nike Inc. s strength, weakness, opportunity and threats can the organisation implement marketing strategies.Nike enjoys good market presence and customer loyalty in the kingdom and thus can improve further. From the report, we can recommend some of the following aspects for Nike The emerging youth culture and tr end is an opportunity for Nike to market its products. More technological use in trainers, design can be improved so as to promote fitness trainers. Health benefits associated with fitness Nike trainers should be made aware to the consumers. Use of information technology can be great way to market coverage for Nike trainers and their distribution.