abhishreshthaa

New member
Nike, Inc. (pronounced /ˈnaɪkiː/) (NYSE: NKE) is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area. It is the world's leading supplier of athletic shoes and apparel[4] and a major manufacturer of sports equipment with revenue in excess of US$18.6 billion in its fiscal year 2008 (ending May 31, 2008). As of 2008, it employed more than 30,000 people worldwide. Nike and Precision Castparts are the only Fortune 500 companies headquartered in the state of Oregon, according to The Oregonian.

The company was founded in January 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight,[1] and officially became Nike, Inc. in 1978. The company takes its name from Nike (Greek Νίκη pronounced [níːkɛː]), the Greek goddess of victory. Nike markets its products under its own brand as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding and subsidiaries including Cole Haan, Hurley International, Umbro and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008.[5] In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high profile athletes and sports teams around the world, with the highly recognized trademarks of "Just do it" and the Swoosh logo.

Marketing mix may be defined as the identification of customer needs under four main aspects. Identification of client needs is done in order to meet them. Businesses normally have two distinct functions. The first is identification of a marketing mix while the other is innovation. The marketing –mix aspect is concerned with getting clients while the innovation apect is concerned with creation of new products or services for clients. As soon as a business is able to fulfill these two obligations, then it will be well on its way to success. Details of the marketing mix will be elaborated in detail below then they will be linked to the company under study. (McGahan, 2004)

The Company chosen for analysis is a sports equipment and clothing company. It is global and can be identified with a number of products that include golf equipment, tennis rackets, skateboards, basketballs, footballs, shoes and athletic equipment. The company has established its name as one of the best in the sports industry. It has a trademark that aims at bringing out the sporting spirit i.e. 'just do it'. It has built about five hundred manufacturing industries in different parts of the world. Additionally, the company has gone out of its way to market itself, this is because it has such a huge production potential and needs to back this up with a wide client base. Nike's marketing mix serves as an example to other dealers in the sports wear industry and it is definitely a force to recon with.

Product
McGahan (2004) describes a product as a service or tangible good that is made available for exchange. In marketing terms, a good may be used to refer to a single product, a series of products that fall within a product line or a service. Products are crucial to the marketer because they act as a means to measure level of demand. This is because the more the goods sold, the higher the demand for the item and the greater its success.

Products must be created in such a way that they fulfill a number of marketing issues. First and foremost, the product must be unique. This means that the product should have the ability to meet special needs in the market that no other product can. A product should also be part of a brand family. However, when introduced into this brand family, it should possess the ability to appeal to a different market segment or increase the consumer base currently. A product should also be created in such a way that it will contribute positively to a client's life.

Other aspects of the 'product' include a brand name. Marketers need to ensure that the brand name they select captivates consumers' attention. This is because it is the first aspect of the product that customers encounter. The product must also be packaged in such a manner that it draws customer's attention. Care must be taken to ensure that the entire product package speaks volumes because customers do not just buy the item itself.
Extra features included in the product offering are also deemed a part of the 'product mix'. For example, when selling hair chemicals, inclusion of a comb could be termed as part of the product mix. Companies need to ensure that they also offer after sale services such as free delivery or issuance of warranties. On top of that, if a marketer adds some information about how to use a given product, then they will be adding value to their product and this will go along way in securing sales.

Nike has followed the above examples in its product mix strategy. The Company offers a wide range of products from
• shoes
• apparel
• equipments

These are all ways in which the company is trying to meet consumer needs. It realizes that there clients could be participating in more than one sporting event. This means that they may require a range of products to meet all their sporting needs. The Company has also gone out of its way to add some value to its products. For example, there are some Nike shoes that have been installed with radio devices intended on measuring a runner's pace. Another example of how the Company has added value to its products is by adding a trendy feel to their clothes. They usually make them in a hip-hop manner. The company also takes time to create quality goods. This is especially in relation to its shoes. The Company has established a reputation of quality in their industry.

Price
Hunger (2003) define price as that thing that must be given up in order o derive value form a product. To the client, price is negative since they have to part with it. To the supplier, price is positive because it demonstrates the revenue they are obtaining from the goods they are producing. It should be noted that price has a number of implications to the marketer.

This is because price can be used by the marketer to lure more clients by making them lower than thir competitors. However, it is a tricky process to make out the perfect price. One must consider any discounts offered or distances that the goods will have o travel. Producers also need to consider all the losses that will occur in the distribution chain and these must be accommodated in the quoted price. Marketers need to ascertain that their goods have lower prices when entering a given market. This type of strategy is called introductory pricing. However, prices need to include market forces and as a company establishes itself in the market, prices need to reflect that too.

The Nike Company has applied a number of pricing strategies. First of all, it used penetration/ introductory strategies when entering the market. However, after establishing itself in the industry, the company has adopted a premium pricing strategy. The premium strategy is application of a fixed price based on the quality of the product. Some critics have claimed that Nike prices are rather high. However, experts claim that prices should reflect quality of the product. This strategy seems to be working because most clients who choose to purchase Nike products assert that they are ready for their prices since they feel that Nike is justified. (Hampy, 2006)

Place
Place may be interpreted to mean the exact location of a product or it may also refer to type of distribution channel. Distribution channels include any of the following activities or groups;
• selling
• feedback
• displaying
• promotion
• shipping
• ordering
• storage
(Hunger & Wheelen, 2003)

Companies have the option of choosing specialty firms or resellers. Resellers are those groups that buy products from manufacturers and become owners of the product. Specialty firms on the other hand refer to all the groups that will be involved in helping the company sell its wares but will not become owners of the products. Resellers may include wholesalers, retailers and industrial distributors. Specialty firms normally come in the form of agents or companies. Some of them may deal in the area of transportation while others may assist manufacturers in the storage aspect.

One of the most interesting aspects of place is retailing. This is because retailers have direct contact with clients and can therefore analyze consumer preferences. They area also in position to determine the level of demand for a good because they can measure the exact sales made for that particular product. Some producers may opt to do retailing on their own.

This is because they can improve customer care and make it part of their marketing strategy. Additionally, there are able to save themselves some of those additional expenses that they incur with long distribution channels. However, companies that choose to do the retailing themselves, may experience some difficulties. This is because customers tend to prefer locations where they can get all the goods they require under one roof. But when manufacturers are selling their own products, they eliminate that option; customers have to move form location to location just to buy all the goods they require. (McGahan, 2004)

In the process of distribution, marketers need to choose methods that are the most economically viable. Companies may not necessarily make any money in the distribution aspect, but if they choose the right method, they may save up a lot of valuable resources. A case in point is when a company chooses to hire a delivering company to take goods to clients. While clients may prefer delivery companies that do it as fast as possible, producers may have o part with hefty sums to acquire such deliverers. Consequently, companies to ascertain that they choose distribution channels that meet these two conflicting needs half way.

The Nike Company has tried to maximize distribution channels in order to increase sales. It has achieved this through two approaches. The Company sometimes sells its products directly or it also uses subsidiaries and distributors. When selling its products directly; the company has created the idea of Nike towns in different parts of the US in order to bring something unique to the market. Additionally, the company has also utilized the internet to distribute some of its products. This can be deemed as a virtual store. Such a strategy was quite feasible in the current age of technology. Because the company is located all over the world, it also had to use licensed distributors because it is rather difficult to reach all those parts of the globe.

Promotion
Promotion is one of the most critical aspects of any marketing mix. It may be defined as the issuance of corporate communication to certain target groups. It may involve advertisements, public relations, and direct sales among others. Promotions need to reflect the type, size and level of importance of a certain product. This means that a promotion can be done by paying up a well know celebrity to endorse a given product or they may simply be done through word of mouth depending on the level of importance. (Hunger & Wheelen, 2003)

Advertisements are usually chosen in cases where a message is intended on reaching large numbers of audiences at a particular time. They may come in the form of television, magazine, newspaper or internet advertisements. Another advantage of this form of promotion is that it can create a lasting image in a customer's mind. However, this does not undermine the fact that advertisements do have some disadvantages; they do not target specific groups and messages are received by all who happen to be at a certain location even when they will never buy it. Experts have argued that this may be deemed as a waste of resources. However,, advertisements can achieve what all other forms of promotion cannot; they break geographical barriers and can reach people on other parts of the world.

Public relations are a means of portraying a good image of a given company. This is normally achieved through charitable events and donation to worthy causes. Companies can also encourage their staff members to participate in community activities. The main advantage of such a method of promotion is the fact that third parties get to talk about a given company. When a newspaper or magazine writes a good review about a certain company, clients are more likely to believe it than if they just saw a huge poster created by the company. The reason for this is that reviews are assumed to be more neutral and less susceptible to biases. (Hunger & Wheelen, 2003)
Nike Has tried to maximize this aspect of its marketing mix. First of all, the company normally sponsors numerous sporting personalities in a wide range of sporting activities. Examples of such people include Kobe Bryant in basketball, Ronaldhinho, Wayne Rooney and Christiano Ronaldo in football, Tiger Woods in Golf and Roger Federer in tennis. The purpose of doing this is to establish a strong brand in those sporting activities. This has really boosted the Company. There are thousands of Nike advertisements that can be found on televisions, the internet and posters. Advertisements have been instrumental in marketing most of Nike's products. (Hunger & Wheelen, 2003)

Conclusion
Nike's marketing strategy is to continuously improve its products and services. It does this through measures of product movements, assessments of their competitor's products and innovation. They have achieved competitive edge through the employment of sound marketing techniques in the four aspects hence their performance.
 
Nike, Inc. (pronounced /ˈnaɪkiː/) (NYSE: NKE) is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area. It is the world's leading supplier of athletic shoes and apparel[4] and a major manufacturer of sports equipment with revenue in excess of US$18.6 billion in its fiscal year 2008 (ending May 31, 2008). As of 2008, it employed more than 30,000 people worldwide. Nike and Precision Castparts are the only Fortune 500 companies headquartered in the state of Oregon, according to The Oregonian.

The company was founded in January 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight,[1] and officially became Nike, Inc. in 1978. The company takes its name from Nike (Greek Νίκη pronounced [níːkɛː]), the Greek goddess of victory. Nike markets its products under its own brand as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding and subsidiaries including Cole Haan, Hurley International, Umbro and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008.[5] In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high profile athletes and sports teams around the world, with the highly recognized trademarks of "Just do it" and the Swoosh logo.

Marketing mix may be defined as the identification of customer needs under four main aspects. Identification of client needs is done in order to meet them. Businesses normally have two distinct functions. The first is identification of a marketing mix while the other is innovation. The marketing –mix aspect is concerned with getting clients while the innovation apect is concerned with creation of new products or services for clients. As soon as a business is able to fulfill these two obligations, then it will be well on its way to success. Details of the marketing mix will be elaborated in detail below then they will be linked to the company under study. (McGahan, 2004)

The Company chosen for analysis is a sports equipment and clothing company. It is global and can be identified with a number of products that include golf equipment, tennis rackets, skateboards, basketballs, footballs, shoes and athletic equipment. The company has established its name as one of the best in the sports industry. It has a trademark that aims at bringing out the sporting spirit i.e. 'just do it'. It has built about five hundred manufacturing industries in different parts of the world. Additionally, the company has gone out of its way to market itself, this is because it has such a huge production potential and needs to back this up with a wide client base. Nike's marketing mix serves as an example to other dealers in the sports wear industry and it is definitely a force to recon with.

Product
McGahan (2004) describes a product as a service or tangible good that is made available for exchange. In marketing terms, a good may be used to refer to a single product, a series of products that fall within a product line or a service. Products are crucial to the marketer because they act as a means to measure level of demand. This is because the more the goods sold, the higher the demand for the item and the greater its success.

Products must be created in such a way that they fulfill a number of marketing issues. First and foremost, the product must be unique. This means that the product should have the ability to meet special needs in the market that no other product can. A product should also be part of a brand family. However, when introduced into this brand family, it should possess the ability to appeal to a different market segment or increase the consumer base currently. A product should also be created in such a way that it will contribute positively to a client's life.

Other aspects of the 'product' include a brand name. Marketers need to ensure that the brand name they select captivates consumers' attention. This is because it is the first aspect of the product that customers encounter. The product must also be packaged in such a manner that it draws customer's attention. Care must be taken to ensure that the entire product package speaks volumes because customers do not just buy the item itself.
Extra features included in the product offering are also deemed a part of the 'product mix'. For example, when selling hair chemicals, inclusion of a comb could be termed as part of the product mix. Companies need to ensure that they also offer after sale services such as free delivery or issuance of warranties. On top of that, if a marketer adds some information about how to use a given product, then they will be adding value to their product and this will go along way in securing sales.

Nike has followed the above examples in its product mix strategy. The Company offers a wide range of products from
• shoes
• apparel
• equipments

These are all ways in which the company is trying to meet consumer needs. It realizes that there clients could be participating in more than one sporting event. This means that they may require a range of products to meet all their sporting needs. The Company has also gone out of its way to add some value to its products. For example, there are some Nike shoes that have been installed with radio devices intended on measuring a runner's pace. Another example of how the Company has added value to its products is by adding a trendy feel to their clothes. They usually make them in a hip-hop manner. The company also takes time to create quality goods. This is especially in relation to its shoes. The Company has established a reputation of quality in their industry.

Price
Hunger (2003) define price as that thing that must be given up in order o derive value form a product. To the client, price is negative since they have to part with it. To the supplier, price is positive because it demonstrates the revenue they are obtaining from the goods they are producing. It should be noted that price has a number of implications to the marketer.

This is because price can be used by the marketer to lure more clients by making them lower than thir competitors. However, it is a tricky process to make out the perfect price. One must consider any discounts offered or distances that the goods will have o travel. Producers also need to consider all the losses that will occur in the distribution chain and these must be accommodated in the quoted price. Marketers need to ascertain that their goods have lower prices when entering a given market. This type of strategy is called introductory pricing. However, prices need to include market forces and as a company establishes itself in the market, prices need to reflect that too.

The Nike Company has applied a number of pricing strategies. First of all, it used penetration/ introductory strategies when entering the market. However, after establishing itself in the industry, the company has adopted a premium pricing strategy. The premium strategy is application of a fixed price based on the quality of the product. Some critics have claimed that Nike prices are rather high. However, experts claim that prices should reflect quality of the product. This strategy seems to be working because most clients who choose to purchase Nike products assert that they are ready for their prices since they feel that Nike is justified. (Hampy, 2006)

Place
Place may be interpreted to mean the exact location of a product or it may also refer to type of distribution channel. Distribution channels include any of the following activities or groups;
• selling
• feedback
• displaying
• promotion
• shipping
• ordering
• storage
(Hunger & Wheelen, 2003)

Companies have the option of choosing specialty firms or resellers. Resellers are those groups that buy products from manufacturers and become owners of the product. Specialty firms on the other hand refer to all the groups that will be involved in helping the company sell its wares but will not become owners of the products. Resellers may include wholesalers, retailers and industrial distributors. Specialty firms normally come in the form of agents or companies. Some of them may deal in the area of transportation while others may assist manufacturers in the storage aspect.

One of the most interesting aspects of place is retailing. This is because retailers have direct contact with clients and can therefore analyze consumer preferences. They area also in position to determine the level of demand for a good because they can measure the exact sales made for that particular product. Some producers may opt to do retailing on their own.

This is because they can improve customer care and make it part of their marketing strategy. Additionally, there are able to save themselves some of those additional expenses that they incur with long distribution channels. However, companies that choose to do the retailing themselves, may experience some difficulties. This is because customers tend to prefer locations where they can get all the goods they require under one roof. But when manufacturers are selling their own products, they eliminate that option; customers have to move form location to location just to buy all the goods they require. (McGahan, 2004)

In the process of distribution, marketers need to choose methods that are the most economically viable. Companies may not necessarily make any money in the distribution aspect, but if they choose the right method, they may save up a lot of valuable resources. A case in point is when a company chooses to hire a delivering company to take goods to clients. While clients may prefer delivery companies that do it as fast as possible, producers may have o part with hefty sums to acquire such deliverers. Consequently, companies to ascertain that they choose distribution channels that meet these two conflicting needs half way.

The Nike Company has tried to maximize distribution channels in order to increase sales. It has achieved this through two approaches. The Company sometimes sells its products directly or it also uses subsidiaries and distributors. When selling its products directly; the company has created the idea of Nike towns in different parts of the US in order to bring something unique to the market. Additionally, the company has also utilized the internet to distribute some of its products. This can be deemed as a virtual store. Such a strategy was quite feasible in the current age of technology. Because the company is located all over the world, it also had to use licensed distributors because it is rather difficult to reach all those parts of the globe.

Promotion
Promotion is one of the most critical aspects of any marketing mix. It may be defined as the issuance of corporate communication to certain target groups. It may involve advertisements, public relations, and direct sales among others. Promotions need to reflect the type, size and level of importance of a certain product. This means that a promotion can be done by paying up a well know celebrity to endorse a given product or they may simply be done through word of mouth depending on the level of importance. (Hunger & Wheelen, 2003)

Advertisements are usually chosen in cases where a message is intended on reaching large numbers of audiences at a particular time. They may come in the form of television, magazine, newspaper or internet advertisements. Another advantage of this form of promotion is that it can create a lasting image in a customer's mind. However, this does not undermine the fact that advertisements do have some disadvantages; they do not target specific groups and messages are received by all who happen to be at a certain location even when they will never buy it. Experts have argued that this may be deemed as a waste of resources. However,, advertisements can achieve what all other forms of promotion cannot; they break geographical barriers and can reach people on other parts of the world.

Public relations are a means of portraying a good image of a given company. This is normally achieved through charitable events and donation to worthy causes. Companies can also encourage their staff members to participate in community activities. The main advantage of such a method of promotion is the fact that third parties get to talk about a given company. When a newspaper or magazine writes a good review about a certain company, clients are more likely to believe it than if they just saw a huge poster created by the company. The reason for this is that reviews are assumed to be more neutral and less susceptible to biases. (Hunger & Wheelen, 2003)
Nike Has tried to maximize this aspect of its marketing mix. First of all, the company normally sponsors numerous sporting personalities in a wide range of sporting activities. Examples of such people include Kobe Bryant in basketball, Ronaldhinho, Wayne Rooney and Christiano Ronaldo in football, Tiger Woods in Golf and Roger Federer in tennis. The purpose of doing this is to establish a strong brand in those sporting activities. This has really boosted the Company. There are thousands of Nike advertisements that can be found on televisions, the internet and posters. Advertisements have been instrumental in marketing most of Nike's products. (Hunger & Wheelen, 2003)

Conclusion
Nike's marketing strategy is to continuously improve its products and services. It does this through measures of product movements, assessments of their competitor's products and innovation. They have achieved competitive edge through the employment of sound marketing techniques in the four aspects hence their performance.

Hey abhi, i think you did a great job and your marketing mix report on Nike would help many people. BTW, i thought i should also add something so i am uploading a document which would give useful information on Nike.
 

Attachments

  • Nike.pdf
    2.1 MB · Views: 0
Top