Final Project Fashion in Technology and Retailc.docx

Final Project: Fashion in Technology and Retail c Fashion in Technology and Retail Professor Jennifer Lezan Final Project By Jeimy M. Jimenez About Sephora Sephora is a leader in global prestige retail, teaching and inspiring clients to play in a world of beauty. Owned by LVMH Moët Hennessy Louis Vuitton, the world's leading luxury goods group, Sephora has earned its reputation as a beauty trailblazer with its expertise, innovation, and entrepreneurial spirit. At Sephora, beauty is in our DNA. Our revolutionary beauty-retail concept, founded in France by Dominique Mandonnaud in 1970, is defined by its unique, open-sell environment with an ever-increasing assortment of products from carefully curated brands, featuring indie darlings, emerging favorites, trusted classics, and Sephora’s own, SEPHORA COLLECTION. Today, Sephora is not only the leading retailer of perfume and cosmetics stores in France, but also a powerful beauty presence in countries around the world thanks to its unparalleled assortment of prestige products in every category, unbiased service from experts, interactive shopping environment, and innovation. Sephora believes every stroke, swipe and dab reveals possibility, and we share our client’s love for the confidence that our products, services, and expertise brings to their life every day. In every store, clients unlock their beauty potential at our Beauty, Skincare and Fragrance Studios through intuitive technology and guidance from the most knowledgeable and professional team of product consultants in the beauty industry. Sephora stores – Sephora operates approximately 2,300 stores in 33 countries worldwide, with an expanding base of over 430 stores across the Americas. Sephora opened its first U.S. store in New York’s Soho neighborhood in 1998, and its first Canadian store in Toronto in 2004. The Sephora Americas headquarters and Innovation Lab are located in San Francisco, with corporate offices in New York, Mexico City, Montreal, Toronto and São Paolo. Sephora.com - Launched in the U.S. in 1999 and Canada in 2003, the foremost prestige beauty site on the Internet is also Sephora's largest North American store and is where clients can engage with an inclusive beauty community on our award-winning Beauty Board, and interactive Beauty Talk. Sephora mobile – Obsessed with teaching and inspiring clients to play in a world of beauty, Sephora has pioneered the use of mobile in beauty, creating groundbreaking content on its intuitive Sephora app and on social media to bring Sephora’s expertise to our clients whenever and wherever they want. Beauty Insider - In 2007, Sephora launched a client loyalty program to feed their addiction to beauty with unique rewards and experiences. The Beauty Insider program is available in Sephora stores nationwide and at www.sephora.com. In 2009, Sephora launched V.I.B. [Very Important Beauty Insider], and in 2013, added VIB Rouge, two premium levels for Beauty Insiders th ...

Final Project: Fashion in Technology and Retail
c
Fashion in Technology and Retail
Professor Jennifer Lezan
Final Project
By Jeimy M. Jimenez
About Sephora
Sephora is a leader in global prestige retail, teaching and
inspiring clients to play in a world of beauty. Owned by LVMH
Moët Hennessy Louis Vuitton, the world's leading luxury goods
group, Sephora has earned its reputation as a beauty trailblazer
with its expertise, innovation, and entrepreneurial spirit.
At Sephora, beauty is in our DNA. Our revolutionary beauty-
retail concept, founded in France by Dominique Mandonnaud in
1970, is defined by its unique, open-sell environment with an
ever-increasing assortment of products from carefully curated
brands, featuring indie darlings, emerging favorites, trusted
classics, and Sephora’s own, SEPHORA COLLECTION. Today,
Sephora is not only the leading retailer of perfume and
cosmetics stores in France, but also a powerful beauty presence
in countries around the world thanks to its unparalleled
assortment of prestige products in every category, unbiased
service from experts, interactive shopping environment, and
innovation.
Sephora believes every stroke, swipe and dab reveals
possibility, and we share our client’s love for the confidence
that our products, services, and expertise brings to their life
every day. In every store, clients unlock their beauty potential
at our Beauty, Skincare and Fragrance Studios through intuitive
technology and guidance from the most knowledgeable and
professional team of product consultants in the beauty industry.
Sephora stores – Sephora operates approximately 2,300 stores in
33 countries worldwide, with an expanding base of over 430
stores across the Americas. Sephora opened its first U.S. store
in New York’s Soho neighborhood in 1998, and its first
Canadian store in Toronto in 2004. The Sephora Americas
headquarters and Innovation Lab are located in San Francisco,
with corporate offices in New York, Mexico City, Montreal,
Toronto and São Paolo.
Sephora.com - Launched in the U.S. in 1999 and Canada in
2003, the foremost prestige beauty site on the Internet is also
Sephora's largest North American store and is where clients can
engage with an inclusive beauty community on our award-
winning Beauty Board, and interactive Beauty Talk.
Sephora mobile – Obsessed with teaching and inspiring clients
to play in a world of beauty, Sephora has pioneered the use of
mobile in beauty, creating groundbreaking content on its
intuitive Sephora app and on social media to bring Sephora’s
expertise to our clients whenever and wherever they want.
Beauty Insider - In 2007, Sephora launched a client loyalty
program to feed their addiction to beauty with unique rewards
and experiences. The Beauty Insider program is available in
Sephora stores nationwide and at www.sephora.com. In 2009,
Sephora launched V.I.B. [Very Important Beauty Insider], and
in 2013, added VIB Rouge, two premium levels for Beauty
Insiders that give clients access to even more exclusive gifts,
event invitations, and early access to select products.
Sephora Stands – Sephora encourages bold choices in beauty –
and in life with the purpose of inspiring fearlessness. Launched
in 2016, Sephora Stands social impact programs utilize our
strengths to promote even greater good by supporting female
entrepreneurs in beauty via Sephora Accelerate, our
communities via Classes for Confidence and our people via
Sephora Stands Together.
Sephora Innovation Lab – Sephora has always had innovation at
the core of its DNA. Opened in 2015 in San Francisco’s
Dogpatch district, the Innovation Lab was a natural progression
of Sephora’s client centric, continual ideation and innovation.
Responsible for groundbreaking tools like Sephora Virtual
Artist, fun ways to play with beauty like Sephojis emoticons,
opening new lines of client communication with chatbots, as
well as fostering creative talent across the entire organization
through their unique Think Tank program and Hackatons, the
Innovation Lab aims to aid clients in easily navigating the
beauty world to find the right products.
Sephora PRO – The Sephora PRO Team is an elite group of
makeup artists handpicked for their superior skill,
unprecedented creativity and ability to inspire through
education. The Sephora PRO artists are among the industry's
most knowledgeable in beauty expertise and application,
lending their aptitude and know-how to product ideation and
development, sharing beauty education tips on Sephora’s social
channels, speaking on behalf of the retailer to media, and
applying their industry prowess at a variety of national and
local client events. Each Sephora PRO artist is a permanent
appointee and based in a specific region, broadening their
influence across the Americas.
Sephora inside JCPenney – A 10-year partnership with the
nation’s largest apparel and home furnishings retailer, Sephora
inside JCPenney stores are situated in the center of the store
and feature the signature Sephora look and experience in a
smaller footprint, in over 590 locations across the U.S.
(Sephora, 2017)
My Chosen Online Fashion Retailer
The Online retailer of my choice is going to be Sephora I chose
this company because it has a strong business presence and a
strong reputation online as well as with its brick and mortar
stores as well; not to mention it's one of my favorite cosmetic
stores to shop in. Not only do they offer name brand cosmetics
as well has as its product line, but Sephora also offers skin
products, fragrance, nail care, and hair products as well.
Identify the Marketing Mix
Product: Products are a little higher priced than those you
would find in a drug store. The Concept behind this is that they
are quality products that are also backed up by the name of the
brand
Place: Strong reputation online as well as with its brick and
mortar stores. Sephora is also strategically placed in the middle
of department stores for customer visibility and product
placement
Promotion: Sephora uses the reward tactic; it is an excellent
way to get Sephora's target market to engage in your online
efforts. It's a great way to retrieve valuable information that can
assist in reaching a broader audience and understanding your
consumer, as well as helping create loyalty to the brand
Product-related questions
What new products has this retailer designed or developed in
the last three to five years?
Products in Sephora are constantly being introduced and
evolving. Sephora is always adding new products to their stores
as well as new products from their line. For example, their
expansion of male products for hair, skin, and fragrances
Price-related questions: What are the pricing strategies for these
new products?
Products are a little higher priced than those you would find in
a drug store. The Concept behind this is that they are quality
products that are also backed up by the name of the brands.
The retailer uses a combination of different selling strategies:
Internet sales, word of mouth, and brick and mortar stores
What media is used to promote these new products?
I would say social media would be the primary promotion
vehicle for Sephora
· Cite the retailer's web page (or, if imaginary, the web pages
that you referenced to create your retailer).
· http://www.sephora.com
· Are you able to purchase directly from the web page?
· Yes
· Does it link to social media sites?
· Yes
What Benefits Does Having a Website give the Particular
Retailer?
The site gives Sephora more visibility as well as the option for
the customer to shop in the comfort of their own home. The
customer can view important details of the products and also
recommendations of other similar products based on search
criteria and patterns of shopping.
Identify the Target Market: Who are its customers?
Sephora's general target market is higher-income women, but
the stores are cleverly designed to break down the target market
into smaller segments. Sephora tries to appeal to women who
value quality and are willing to pay for it
Sephora also caters to other customers that include tweens,
teenagers, and men. Sections of the store fronts are brightly
colored to appeal to this market while other sections dedicated
to men are more decorated more modestly. This target market is
more geared towards contemporary women and men who have
an interest in fashion and are fashion forward. They have a
compelling interest in beauty and enjoy having products that
help them maintain a youthful look as well as looking and
feeling their best.
Age: 18-55
Location: Throughout the United States in 29 countries with an
expanding
Gender: Women and men
Income level: High disposable income
Education level: College educated
Marital or family status: Single or career oriented married
couples
STRENGTHS
· Current manufacturing, distribution and selling of beauty
products.
· Already has a base of shoppers
· Established operations already in place for their current
products, including employees and brand ambassadors
· Established within department stores
· Company is always eager to expand and is always evolving
with new products and locations
· New products heighten store's sales
WEAKNESS
· Competition is already established within
· industry, (MAC, ULTA)
· May have strict pricing due to high end brands.
· Sephora may be missing out on the customers because of high
pricing
· Not enough marketing effort toward the male fanbase
OPPORTUNITIES
· With the eagerness to expand, Sephora has an opportunity to
branch into a male focused branch of the brand.
· With consumers, already in place buying from existing
products and the brand already having an industry presence,
Sephora can market their new expansion to those users.
· Can take the knowledge and practice of selling some male
products as a way of testing the market with new products
· Use positive feedback from test market results to establish the
new male product line and customer segment.
· Brining in a new branch can give Sephora the opportunity to
expand their customer by making it a focal point for shoppers
by having a larger variety
THREATS
· The biggest threat is cost! Adding a new product/branch
within the company's line will be costly,
especially if the return isn't positive.
· Pricing, competition may have better pricing so it's important
for Sephora to research that important area.
· New product line and customer base could take away sales
from the existing store/product.
Market Segmentation
The market segmentation will happen geographically,
demographically, behaviorally, as well as psychographic
segmentation. Geographic segmentation will separate the market
into various geographical areas. The demographic segmentation
will separate the market into demographic indicators such as
education level, gender, age, and income. Psychographic
segmentation will separate the market into lifestyle and belief.
On the other hand, behavioral segmentation separates the
market into buying and shopping behaviors. Customer relations
management will be applied based on the best criterion that
suits any markets segment as discussed above.
Marketing to the various segments is done through various
methods or ways using the most appropriate technology. The
first marketing platform is via online method, which may
involve the creation of a website that will allow online
placement. The second method involves the packaging of goods
to appeal to various classes of people and gender. To this end,
the products should be packaged to appeal to capture both
genders in order to increase the market base. Additionally, the
packaging should be such that the high and low income earners
are catered for. Therefore, the products should be in such a way
that they are differentiated in term of price to meet the demand
of both the high and the low-income earners. Establishing a
proper supply chain is essential to ensure that the market
segments located away from the manufacturing are essentially
supplied. This means that the meeting the shipping cost is
crucial.
Creative use of technology is essential in amplifying,
accelerating, and activating product promotion through various
campaigns or the injection of fresh or new customer
experiences. Technology is therefore a powerful tool to create
awareness on the existence of a new product in the market. The
use of technology creates experiences that excite the customers
as well as engaging them. Creative technology draws the
attention of the consumer, making theme delve deep into the
new product, and get them hooked to ensure expanded base that
pushes the business into greater sales heights due to aggressive
and creative heights.
Supply Chain
The best supply chain is to adopt the contemporary western
fashion model, which includes design, inventory, and sale to the
final consumer. This implies that the designs are carried out via
the company, which the n manufactures, keeps the inventory
and ship to the final consumer when need arises. This model is
relevant as it shares the commitment and the dedication
throughout the value chain. In essence, when the customers
place any order, the manufacturer or the designer will readily
ship the meet the customer demands wherever they are. The key
to the success of this model lies on the fact that delivery is first
done to the nearest point of contact.
Technology
The use of technology enhances advertisement by creating
awareness, constantly reminding the consumer of the existence
of the product, and finally reaching out to new market
segments. Advertisement is done through the various available
media that include but not limited to the television, the social
network, the radio, and the various many online platforms.
Technology also enhances public relations. The use of
technology ensures that many customers are reached, potential
or rebound.
Improving communication is important making supply chain
quite effective or efficient. This ensure that the impending
logistical challenges are addressed by finding better solutions of
handling them. Achieving this is pegged on effective training
of the team to adapt to the uses of new technology or upcoming
invention s in the field.
Market Segmentation
The market segmentation will happen geographically,
demographically, behaviorally, as well as psychographic
segmentation. Geographic segmentation will separate the market
into various geographical areas. The demographic segmentation
will divide the market into demographic indicators such as
education level, gender, age, and income. Psychographic
segmentation will separate the market into lifestyle and belief.
On the other hand, behavioral segmentation separates the
market into buying and shopping behaviors. Customer relations
management will be applied based on the best criterion that
suits any markets segment as discussed above.
Marketing to the various segments is done through different
methods or ways using the most appropriate technology. The
first marketing platform is via online method, which may
involve the creation of a website that will allow online
placement. The second approach includes the packaging of
goods to appeal to various classes of people and gender. To this
end, the products should be packaged to appeal to capture both
sexes to increase the market base. Additionally, the packaging
should be such that the high and low-income earners are catered
to. Therefore, the products should be in such a way that they are
differentiated in term of price to meet the demand of both the
high and the low-income earners. Establishing a proper supply
chain is essential to ensure that the market segments located
away from the manufacturing are mainly provided. This means
that the meeting the shipping cost is crucial.
Creative use of technology is essential in amplifying,
accelerating, and activating product promotion through various
campaigns or the injection of fresh or new customer
experiences. Technology is, therefore, a powerful tool to create
awareness on the existence of a new product in the market. The
use of technology creates experiences that excite the customers
as well as engaging them. Creative technology draws the
attention of the consumer, making theme delve deep into the
new product, and get them hooked to ensure expanded base that
pushes the business into greater sales heights due to aggressive
and creative heights.
Supply Chain
The best supply chain is to adopt the contemporary western
fashion model, which includes design, inventory, and sale to the
final consumer. This implies that the plans are carried out via
the company, which then manufactures, keeps the inventory and
ship to the ultimate consumer when the need arises. This model
is relevant as it shares the commitment and the dedication
throughout the value chain. In essence, when the customers
place any order, the manufacturer or the designer will readily
ship the meet the customer demands wherever they are. The key
to the success of this model lies in the fact that delivery is first
done to the nearest point of contact.
Technology
The use of technology enhances advertisement by creating
awareness, always reminding the consumer of the existence of
the product, and finally reaching out to new market segments.
The advertisement is done through the various available media
that include but not limited to the television, the social network,
the radio, and the various many online platforms. Technology
also enhances public relations. The use of technology ensures
that many customers are reached, potential or rebound.
Improving communication is important making supply chain
entirely effective or efficient. This ensures that the impending
logistical challenges are addressed by finding better solutions
for handling them. Achieving this is pegged on the active
training of the team to adapt to the uses of new technology or
upcoming inventions in the field.
Identify the Supply Chain for the Business: What role has the
technology played in the logistics of this supply chain? How
will the technology play a role in this situation?
The fast-growing world in every field of life need to have the
industry developed through the supply chain management. As in
case of the product chosen named as Sephora; the fashion
industry. This is a cosmetics product that requires a challenging
role in the market. The fashion industry is growing more rapidly
in the new era of the fashion where there is need to develop a
supply chain structure to provide each and every product the
line to reach the customer. Supply chain has a focus on the
consumer and provides the techniques that how the business
could be enhanced and developed nationally and internationally
with a view to handle the product more tactfully. For the firm
the growing need is to handle the supply of the product through
the help of the information technology where the data could be
integrated easily and internal improvements of the company
management for the supply chain (Inda and et al, 2014). The
company is using different methods to control supply chain
management such as the data base management system help.
This software provides help to control the inventory and label
the manufacturing and the finishing of the product and also its
supply t end user. This system helped to maintain the relevant
data of the company and the company products. Global market
could be handled easily with the help f this system where the
relative information of each and everything, inventory and even
the client is saved and could be accessed easily any time (Singh,
2002). The need to have the quality relationship and the
information is resolved through this about the supply chain
management.
Identify and describe the elements of the promotional mix: How
has the technology enhanced or hindered each element?
There are five different tools or instruments for the provision of
the supply chain management system. These five instruments
used for this purpose are relation with the customer, relation
with the people whom we work with or the investor, information
sharing method, relationship with the customer and the internal
or institutional performance management. The growing needs of
the competitive environment is to develop the healthy relation
with the partner, investor as well as with the customer who are
the end user from where the company earn. These multi-
dimensional policies provide the basic structure to the
performance meter where the need for the competitive business
environment could be resolved. Supply chain performance is
related to the internal and external resources building about the
company and the company product (Zaim, et al, 2007). The
supply chain management implications are a useful tool to get a
beneficial production and the return of the product. In case if
the company wants to increase the volume of its sales and return
or should better take help from these strategies where the
relation earning provides the best instrument. Joint ventures
could be made so as to create and increase the supply chain of
the product and the production (Obeida, 2014).
Explain how the element will or should be combined into an
integrated marketing plan. Which media are utilized: Which
media are being under or over utilized?
Global market has taken place drastically. The companies are
expanding through the social media networking and the
economies are getting closer to each other with every day
passing. The supply chain management has helped us to create
healthy relation with the outside world. Product quantity and
quality are both enhanced through this as we learn more and
better ways to earn the return on the products. There are more
opportunities and markets through the logistics of the supply
chain management. It has taken the economies closer and
stronger than before through collaborating within the business
structure and organizations are integrating their supply
structures (Irfan And Raja, 2014). Conceptual framework
provided for this purpose has helped to integrate globally and
internal potential of the company could be fully utilized through
developing new strategies by integration. The window model
structure has helped to explain the supply chain markets and the
strategies to analyze business more potentially (Agus, 2014).
What can be done to make the supply chain more efficient?
A systematic planning process is made for the quantitative
measurement of the supply chain performance. Through a
collaborating supply chain management system, the long and
short run objectives of the management could be achieved. The
market integrating policy and the market sharing method has
helped to resolve this issue. For measuring the supply chain
performance, we need to build better customer rationing and the
improve supplier and customer relationships. These could be
achieved with the help of market information sharing about the
company and the company product line that differ with country
and region (Ahmad, 2014). Strategic supplier partnerships are
needed to organize the company internal structure to build long
run relations with the supplier and the customer that has a
significant impact on the company performance and
management techniques.
How can technology help make the supply chain more effective
and efficient?
In the supply chain performance measurement, the role of
technology could not be ignored. The fast-growing economies
and the business relations need to be integrated through the
social networking and the internet. IT has helped us to stay in
touch with the internal management as well as external market.
The database management system is requiring to keep the large
set of information about the company working. It has the
complete record about the inventory, supplier, customer,
investor, employee and others in a systematic way. Data
analysis is used to have the identification of the data in an
organization through placing logical groups. System analyst
usually required to make flow charts through a conceptual
framework. The development of the techniques and methods for
the data analysis the organizations are using conventional
methods to avoid complexities of data. The large forms are
adopting these measures to control the manufacturing and the
external networking with supplier, partner and the customer
through this medium (Byrd & Davidson, 2003).
REFERENCES
Agus., A. 2014. Supply Chain Management: The Influence of
SCM on Production Performance and Product Quality. Journal
of Economics, Business and Management. Vol. 3, No. 11.
Ahmad, N.A., 2014. The Effect of Supply Chain Management
Practices on Strategic Flexibility: Applied Study on the
Jordanian Manufacturing Companies. European Journal of
Business and Management, Vol.6, No.5.
Byrd, T. A., & Davidson, N. W. 2003. Examining possible
antecedents of IT impact on the supply chain & its effect on
firm performance. Information and Management, 41 (2), pp.
243-255.
Baral., R. And Krishanpriya, V. 2014. Supply Chain
Integration- A Competency Based Perspective. International
Journal of Managing Value and Supply Chain (UMVSC) Vol. 5,
No. 3.
Irfan., M. And Raja, I. S. 2014. Levels and Barriers to Supply
Chain Integration: A Conceptual Model Of Supply Chain
Performance. International Conference of Business
Management. Vol, 1, Issue 1. PP: 52-59.
Inda, S., Abu, B.H., Rohaizat, B., Rosman, M.Y., (2012). The
Study of Supply Chain Management Strategy and Practices on
Supply Chain Performance. International Conference on Asia
Pacific Business Innovation & Technology Management, 40
(2012) 225 – 233.
Inda., S., and et al, 2014. A Study Of Supply Chain
Management Practices: An Empirical Investigation on
Consumer Goods Industry In Malaysia. International Journal Of
Business And Social Science, Vol. 2 No. 17.
Obeid., B. 2014. The Impact of the Supply Chain Management
Practices On Supply Chain Management Performance In Jordan:
The Moderating Effects Of Competitive Intensity. International
Business Research 7(3): 13-27.
Rao., S. S. And Et Al., 2006. The Impact of the Supply Chain
Management Practices On The Competitive Advantage And
Organizational Performance. Vol 34. PP: 107-124.
Singh., M. And Mahesh, S. R. 2002. Global Supply Chain
Management In The Telecommunication Industry: The Role Of
Information Technology In Integration Of Supply Chain
Entities. Journal of Global Information Technology
Management; 2002. 5, 2.
Zaim., Et Al, 2007. The Impact of the Supply Chain
Management On Performance Of SMes. Emerald.
Zain., D. And Et Al, An Empirical Internal Perceptions Study
Of The Implementation Supply Chain Management In
Indonesian Manufacturing Companies As A Mediating Factor of
Information Technology Utilization To Organization
Performances. European Journal of Business and Management.
ISSN: 2222-1905 (Paper) ISSN: 2222-2839. Vol. 5, No. 16.
About Us. (n.d.). Retrieved June 25, 2017, from
http://www.sephora.com/about-us
18
MKT 228 Online Advertising Campaign Short Paper Guidelines
and Rubric
Overview
Using your final project, create an online advertising campaign
for your company. Specifically, make a list of the media (at
least five) that would be most effective
in reaching your target audience. Explain your reasoning for
each. Hint: Utilize the advertising objectives to help convey
your message.
Format: This case analysis should follow these formatting
guidelines: 1–2 pages, double spacing, 12-point Times New
Roman font, 1-inch margins, and a
minimum of 2 sources.
Instructor Feedback: Students can find their feedback in the
Grade Center. This activity uses an integrated rubric in
Blackboard. Students can view instructor
feedback in the Grade Center. For more information, review
these instructions.
Critical Elements Exemplary (100%) Proficient (85%) Needs
Improvement (55%) Not Evident (0%) Value
Advertising
Objectives
Meets “Proficient” criteria and
uses clear and relevant
examples to establish the
context for the media selection
Identifies the advertising
objectives and connects them to
media selection
Identifies the advertising
objectives, but does not
connect them to media
selection
Does not include advertising
objectives
30
Media Selection Meets “Proficient” criteria and
also provides unique media
suggestions
Identifies appropriate media
selections for an advertising
campaign
Identifies media selections for
an advertising campaign, but
they lack appropriateness
Does not include media
selection
30
Reasoning Meets “Proficient” criteria and
justifies the reasoning with clear
and relevant examples that
firmly establish the
effectiveness of the choices
Provides appropriate reasoning
for the selection of the media,
using clear and relevant
examples
Provides reasoning for the
selection of the media, but does
not use clear examples
Does not include reasoning
30
Articulation of
Response
Submission is free of errors
related to citations, grammar,
spelling, syntax, and
organization and is presented in
a professional and easy-to-read
format
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact
readability and articulation of
main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
10
Total
Comments:
100%
http://snhu-
media.snhu.edu/files/production_documentation/formatting/rubr
ic_feedback_instructions_student.pdf
MKT 228 Nike Case Analysis Guidelines and Rubric
Overview
Reference Case Study 2.1: “Nike Shifts With Its Environment”
in the text. Answer the three questions as listed. Write out the
questions with your full responses
for full credit. Make sure to include the role technology plays
within each of your answers.
1. From what you can tell by reading the case, in addition to
other information you know about Nike, how has each element
of the company’s
microenvironment contributed to its development of the new
stores and their innovative features?
2. What is the influence of the various components of the
macroenvironment on the company’s present situation?
3. Concerning current social attitudes and values, do you
believe Nike is on the right track in its approach? Why or why
not? What additional suggestions
would you offer the company?
Format: This case analysis should follow these formatting
guidelines: 1–2 pages, double spacing, 12-point Times New
Roman font, 1-inch margins, and a
minimum of 2 sources.
Instructor Feedback: Students can find their feedback in the
Grade Center. This activity uses an integrated rubric in
Blackboard. Students can view instructor
feedback in the Grade Center. For more information, review
these instructions.
Critical Elements Exemplary (100%) Proficient (85%) Needs
Improvement (55%) Not Evident (0%) Value
Microenvironment Meets “Proficient” criteria and
uses clear and relevant
examples
Analyzes the microenvironment
and provides clear examples of
how this environment
contributed to the development
of new stores and innovative
features
Analyzes the microenvironment
but does not provide clear
examples of how this
environment contributed to the
development of new stores and
innovative features
Does not include
microenvironment
25
Macroenvironment Meets “Proficient” criteria and
uses clear and relevant
examples
Analyzes the macroenvironment
and proposes its influence on
the company’s present situation
Analyzes the macronvironment,
but does not sufficiently
propose its influence on the
company’s present situation
Does not include
macroenvironment
25
Social Attitudes and
Values
Meets “Proficient” criteria and
compares the social attitudes
and values to other companies
in the market
Evaluates the current social
attitudes and values of the
company, using clear and
specific examples
Evaluates the current social
attitudes and values of the
company, but does not use
examples
Does not include social attitudes
and values
25
Suggestions Meets “Proficient” criteria and
provides unique suggestions
Proposes specific suggestions on
how Nike could improve social
attitudes and values
Proposes suggestions on how
Nike could improve social
attitudes and values, but is not
specific
Does not include suggestions
15
http://snhu-
media.snhu.edu/files/production_documentation/formatting/rubr
ic_feedback_instructions_student.pdf
Articulation of
Response
Submission is free of errors
related to citations, grammar,
spelling, syntax, and
organization and is presented in
a professional and easy-to-read
format
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact
readability and articulation of
main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
10
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Comments:
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HOME // UNCATEGORIZED // A MARKETING CASE STUDY
ON NIKE
A MARKETING CASE STUDY ON NIKE
WRITTEN BY MILES MEDIA ON APRIL 10, 2016. POSTED
IN UNCATEGORIZED
1.0 INTRODUCTION OF NIKE
Nike is a major publicly traded sportswear, footwear and
equipment supplier based in the US which was founded in 1962
originally know
as Blue Ribbon Sports. Nike is the world leader in the
manufacturing of sportswear and gear with more than 47 market
shares across the
global (Nike.com, 2011).
Nike produces a wide range of sports equipments such as
running shoes, sportswear, football, basketball, tennis, golf, etc.
Now Nike
follows the global fashion trends and is well known and popular
in the youth culture and hip hop culture to supply some fashion
products.
Nike recently teams up with Apple Company to produce the
Nike+ products which can monitor a runner’s performance
through a radio in
the shoe that can link to the iPods. Besides that, Nike also
becomes the top of three companies which are climate-friendly
companies
which build better image to customers.
Nike’s excellence marketing strategies are their energy to
achieve their market goals. Nike believes the “pyramid
influence” that the
preferences of a small percentage of top athletes influence the
product and brand choice. So Nike contracted with many
athletes’
spokesperson, professional teams and college athletic teams to
advertise and promote their products to customers. Nike
seriously pay
attention on the technology producing, design and selling such
as e-commerce, high-tech running shoes, Nike+ with Apple, etc.
Nike
outsourcing their products most of the factories are located in
Asia such as China, Indonesia and India.
2.0 PROS OF NIKE’S CORE MARKETING STRATEGY
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Nike put heavily proportion in their marketing strategies and
products deign. In order to sustain their dominance in the
industry and retain
their competitive advantages, Nike actively responds to the
market trends and changes in consumer preference by adjusting
their
marketing strategies, the mix of existing product offerings,
developing new products, styles and categories, and influencing
sports and
fitness preferences through various marketing strategies. Now
we discuss the pros of Nike’s core marketing strategies and
related them
to the relevant marketing theories help us to depth
understanding.
2.1 Distribution
More efficient product distribution is the more sales and thus
more profits. The delivery of the right products and at the right
time to the
customers is not only effect the utility but also leads to high
level of consumer’s satisfaction and loyalty. Nike distributes its
products on
different level basis. The high premium products are given to a
certain distributors while leaving the low priced to be sold at
highly
discounted price at the retail stores such as Wal-Mart (Jeannet
J, 200, pp 44).
Nike has become the leader in the e-commerce by being the first
to the market with its e-commerce website. Nike launched its e-
commerce site in April 1999 by offering 65 styles of sport shoes
to the US market for purchasing (Nike, 2000). This program
represents
the first time a company has offered mass footwear through the
Internet and provides competitive advantages to Nike.
2.2 Advertising and Promotion
Nike makes contracts with some celebrity athletes which can
draw attention to their products such as Tiger Woods, Ronaldo.
This has
created a relatively high level of Nike’s awareness. Besides
that, Nike also employed a large amount of advertisements
through the
mass media (Goldman S, 2000, pp 154). Nike’s brand images,
including the Nike’s name and the trademark are considered to
represent
one of the most recognizable brands in the world. The Nike
name and associated trademarks have appeared from players’
shirts, pants
and everywhere. Their aggressive advertising campaigns,
celebrity endorsements and quality products all enhance their
brand and
image. For example, when a celebrity athlete sponsors a specific
brand of athletic shoes, the brand will be associated with
success.
2.3 Price
Nike targets on the consumers who care more about the utility
and quality of the products rather than the price. In this way,
the price is
not affect too much (Frank, 2004, pp173). This has make Nike
to set relatively higher price than its competitors. This strategy
focuses on
the consumers who like Nike and pushes the products value to a
higher level. The customers who consider a product to be high
quality
are likely to pay the high price more often and consistently.
Once the consumers develop the product intimacy, they come to
associate
their person with the products and will pay whatever price
quoted on the products.
Nike use vertical integration price strategy in which they take
ownership of the participants at channel level that differ and
they also
engage in various channel level operations both to control costs
and thus influence the pricing function (Goldman S, 2000,
pp154).
2.4 Market Segmentation and Target
Most of the consumer of Nike’s products is mainly athletic.
Nike is the master of segmentation, their segmenting market
typically target’s
athletes, both women and men from the age 15 to 35. Nike’s
targeting market is active people who enjoy high quality
sporting goods,
especially footwear. Nike focuses on creating premium
consumer experiences on product innovation, brand leadership
and elevated
retail presence. Nike targets on these customers by agreements
between Nike and athletic teams, college’s athletic teams for
products
sponsorship and eventual promotion to the members of these
teams. Even though others are likely to buy the products, Nike
focuses on
the athlete more than any group of individuals even though it
also target on the youth. This strategy is especially successful
because of
its ability to reach a large number of athletes.
3.0 CONS OF NIKE’S CORE MARKETING STRATEGY
Although Nike’s marketing strategies had brings lot of positive
implications to the company, but it will bring negative
implications to Nike
too. The negative implications that will identify in this
assignment are high cost incurred, influence of spokesperson,
and competitors.
3.1 Costly
Since Nike has implemented several marketing strategies, it had
incurred high costs in producing and promoting its products.
The costs
are increase among handling inventory, designing, advertising
and production. (Abhiroopsur, 2009) Beyond that, the inflation
had raised
the costs of raw materials and transportation. To deal with these
problems, Nike has increased the products’ prices and reduces
its
marketing budget. Therefore, this could hurt the long-term
growth of the Nike. (Taulli, 2011) According to Boggan (2001),
Nike had also
employed child labor in Cambodia to reduce its production and
labour costs. This had affected its brand image, and it might
have many
people boycott Nike and stop to buy anything from Nike.
(Boggan, 2001) Furthermore, Nike has been using child labour
in the production
of its soccer balls in Pakistan. (TED, 2011)
3.2 Influences of spokesperson
One of the Nike’s core marketing strategies is depend on a
group of athletes to promote its products. Nike prefers to have
high profile
athletes as its endorsers, like Runner Steve Prefontaine, Michael
Jordan, and LeBron James. The athletes had positive and
negative
influence on changing consumer preferences, changes in
consumer tastes and priorities, and also consumers’ buying
decisions. The
action and attitude of Nike’s chosen spokespersons could bring
the impacts on its promotional strategies. For instance, it will
attract the
athlete’s idolater to purchase the products if Nike using a
popular athlete as endorser. On the other hand, if the athlete
were caught in
drug addicted or any immoral attitude, it will affect the
customers not to buy Nike’s products, thus will affect Nike’s
sales, revenue and
profit. (Cloke M., 2011)
3.3 Intense Competitors
There is intense competition faced by Nike. Their competitors
are Adidas, Reebok, Puma, and so forth, whilst competition is
tighter with
the coming of Adidas. More, the product line is slightly
different between Nike and Adidas. Nike is mainly focus on
footwear for men and
women who between 15 to 35 years old, while Adidas is
specialize in footwear for men, women and children between the
age of 10 to
30. This had shown that there is less diversification of Nike
marketing strategy. They could also provide footwear for
children to attract
more parents to become their potential customers. Additionally,
Nike distribution strategy is mainly focus in domestic market
which is
United States of America, whilst Adidas’s main office is located
at Germany, but it focus in European market. Therefore, Nike
should
distribute its products to more region and countries in order to
capture more potential customers and achieve greater
reputation. (Allick et
al., 2000)
4.0 RISKS OF NIKE’S CORE MARKETING STRATEGY
Nike faces many risks when they use their core marketing
strategies to achieve their goals and these risks can come from
both internally
and externally environmental circumstance. The risks will have
a negative influence about Nike’s future development, for
example, the
market share in the world, reputation, brand image and customer
loyalty.
4.1 Changes in Market Trends, Consumer Tastes and
Preferences
Nike needs to stay on the top of changes in consumer taste and
preferences as evidenced by changes in fashion. So Nike face
the risk
that fashion trends may change so fast that Nike fails to follow.
For example, for a period, the global athletic sportswear is
focus on
personality and Nike’s products still be general to the customers
this will lead Nike go behind of their competitors if their
competitors can
follow the trends. For another example, such as the social
changes, women are becoming more fitness-conscious and are
increasingly
being targeted as growth potential in the sporting apparel and
footwear industries. Due to constant changes in consumer tastes
and
fashion, these industries are always changing. If Nike cannot
follow the fitness trends in the market they will face risks of
losing market
shares. To compete with this risks and problems, Nike should
position it as a trendsetter and not a trend follower and be
responsible to
their customers. (St. John University, 2004)
4.2 Fast changing of Nike’s products
From the above risk, the changing in fashion and customers’
preference had brings negative effect on its marketing
strategies. Hence,
Nike should introduce new products to maintain its customer
loyalty as well as attract new customer markets. However, it
will also have
negative implication if Nike’s implement new products rapidly.
As we know, Nike’s products are focus on the athlete’s shoes,
apparels and equipments and their target consumers are for the
athletes.
But now the global trends are to be fashion and personality. So
Nike change its marketing strategies and products design to
become
more fashion and focus on the youth consumers. It brings risks
to Nike because in the traditional mind of customers, they
consider Nike
only sell the athletic products. The fashion or the changing style
products is unimaginative for customers to purchase. Not all the
customers can follow the changing of Nike. Sometimes
customers maybe feel fed up because they cannot follow the
changing of Nike’s
products will lead Nike lose customers which drop down the
customer loyalty and market shares. (St. John University, 2004)
Therefore, Nike should analyse the market and customers’
preference as well as customers’ buying behavior from time to
time. Nike
could prepare survey form to their customers in order to have
more understanding on customers’ taste, requirements when
buying
sportswear or footwear, and also collect the feedback and
recommendation from consumers.
4.3 Expanding to the Overseas
One of Major Nike’s marketing strategies is to expand to
overseas and become the leader in the world. It also will bring
risks to Nike
when they expand their business globally. For example, Nike
outsources their products to developing countries such as China,
Indonesia, and Thailand. Currency exchange rate fluctuations
can disrupt the business of the independent manufacturers that
produce
Nike products by making their purchase of raw materials more
expensive and more difficult to finance. Besides that, the global
economic
recession influence the overall business operation in the
outsourcing countries. For example, inflation rate too high in an
outsourcing
country will increase the cost and reduce the profits for Nike.
What’s more, the war and fuel price fluctuations also can lead
to unstable
situation for Nike over the long period. (Florzak, 2011)
5.0 COMPETITORS – ADIDAS
5.1 IFFICULTIES FACED BY ADIDAS WHEN COMPETE
WITH NIKE
5.1.1 Marketing Strategies
One difficulty most likely to be faced by Adidas is in its
marketing, compared to its competitor Nike, Nike spends more
money on
advertising and promoting their products reputation, Nike spend
about $1.13 billion as of 1998 involving celebrities like Tiger
Woods,
Micheal Jordan, Carl Lewis etc. while paying these celebrities
large amount of money (Bedar, 2002), as of 2010, Nike spent
about $800
million on Nontraditional advertising by using other medium of
advertising their products other than TV and has reduce TV and
Print
advertising by 40%, and in 2006, Nike introduced the Nike +
Platform which is a multi-channel, multi-sensory integration
between apple
and Nike technologies that allows persons to track performance
(Fluffylinks, 2012) in essence, Adidas will have a hard time
trying to
compete with Nike in terms of advertising and promotion,
considering Nike’s utilization of low labor cost of production,
Nike can afford to
spend so much money in creating awareness for their products
and gaining consumers loyalty by utilizing celebrities. Adidas
will have to
invest more money on advertising and create innovative means
of advertising their product, having consumers in mind and
following the
trends of technologies, for example, Adidas can collaborate
with IT companies such as Samsung to create innovative means
of
advertising their products.
5.1.2 Adidas and Reebok Reputation on Its Finances
Adidas and Reebok joining up together as a merger would be a
good deal for leading over Nike but the two companies have a
bad
reputation due to financial problems which almost led them to
bankruptcy and since they are to work together. The expansion
of their
business will take a while to develop because they have to have
strong advertising strategies until the Asians .If the Asians like
their
ideas then they might as well adjust to the culture in countries
like china since it has the biggest population. In the long run
Asian
countries like China might as well take a long time to work with
the company in terms of coming up with factories in china. This
might be
one of their biggest problems which will enable them take a
long time to lead Nike in terms of their market Nike. To go
through all that
they will be a lot of expenses thus the company might run
bankrupt again. (Adidas-Rebook, 2011)
5.2 HOWADIDAS COMPETE WITH NIKE?
5.2.1 Develop the Small Computer “Smart Shoe” Product Line
The development of a product line of smart shoes will build on
this reputation and show buyers that Adidas is humorless about
innovation and using technology to advance athletic
accomplishment. The line of smart shoes combines a
microprocessor or implanted
controller, sensors, and tiny motors along with memory and
battery. The sensors work to steadily monitor, measure, and
supply data
looking at the landscape, impact of each step, athlete’s body
temperature, environment temperature, and athlete’s heart rate.
This data
can steadily be fed to a microprocessor which agent motors to
adjust padding and airflow within the shoe. (Dogiamis et al.,
2009)
Wireless GPS system is another feature on the small computer
production line that enables runners to decide their accurate
location,
distance traveled, and speed from the shoe’s GPS by wearing a
small wireless GPS wrist strap. The shoes implanted memory
can keep
data about workouts such as average heart rate, body
temperature, calories burnt and force of each step. For situation,
in basketball the
micro can watch how high the athlete jumps and how hard of a
landing they make. As many athletes demand goods created
that can
deliver both watching and accomplishment bettering
capabilities, they will find Adidas the solution thus leading to
much higher revenue,
profit, and market share in sports that Adidas already leads and
in sports where Adidas lags in revenue, profit, and market share
(Dogiamis et al., 2009)
5.2.2 Implementation of Rebranding Reebok Program
Adidas Group should phase out its high accomplishment athletic
shoe line and reposition itself in the casual footwear and active
footwear
market within the next years. The high accomplishment athletic
shoe line can be sponged up into the Adidas brand. Adidas It
should
consider opening Reebok retail outlets that market Reebok as
well stylish Reebok at more upscale department stores such as
Macy’s
and Nordstrom. Reebok should ensure keeping up a very high
level of quality and durability of its shoes. However, it should
work with
major fashion designers such as Calvin Klein to come up with a
well stylish product line of shoes meant for active, casual use,
gain
brand image as an upscale and more cultured shoemaker.
Reebok should first come up with a line of casual but well
stylish shoes
designed by Calvin Klein that blend quality and style.
(Dogiamis et al., 2009)
The rebranding of Reebok can help Adidas to make larger
advancements with women. They want a shoe that can be useful
for all visible
feature of an active lifestyle. Therefore, marketing Reebok as a
well stylish line of shoes meant for active lifestyle might allow
Adidas to
make larger in roads with women. Reebok should start a line of
well stylish shoes prepared toward women with active lifestyles.
(Dogiamis et al., 2009)
The overall rebranding of Reebok should be finished to avoid
internal competition within Adidas Group where the Reebok
division is
seen as the less profitable sibling of Adidas and to keep buyers
from believing that Reebok is not an expensive substitute for an
excellent Adidas product. (Dogiamis et al., 2009)
5.2.3 Expand Its Sponsorship Program (Marketing)
Adidas mainly focuses in the European market even though it is
known in other parts of the world, which is because of its
collaboration
with soccer events all over the world and football associations
with bodies such as FIFA, UEFA, leagues, clubs and individual
players, in
2010, Adidas experience its most successful year in the history
of football with sales above 1.5 billion Euros. It also had a sure
climax
during the 2010 FIFA World Cup of which it sponsored the
wining team Spain and the adiZero F50 which is also an Adidas
product had
the top scoring boot in the event, lastly, Adidas Football group
on Facebook massively increased from 100,000 members to over
6 million
members presently. Adidas has been an official sponsor of the
Olympics and has also been included as a sponsor of the 2012
Olympics;
this gives it an edge over its competitor Nike. (AdidasGroup,
2011) It should use this opportunity to carry out precise
marketing, by
focusing on its segment market which includes the soccer,
tennis and athletics teams and probably expand its focus to the
up and
emerging local teams in the grassroots, because, this group of
people are keen about sports and spend time watching them on
the TV
but hardly get access to them unless they purchase the product
themselves.
5.2.4 Change in Consumer Perception to Products
Adidas can also change the consumer’s perception about its
products, most consumers perceive Adidas product as being too
stiff and
therefore are uncomfortable with it, Adidas can come up with a
durable but use soft materials for its product as well as rebrand
it product
as not just a sporting shoe but also a fashionable shoe which
consumers can wear on a casual basis example for outings,
parties etc.
when this is instilled in the minds of the consumers, more of
Adidas product will be purchased by consumers as it will be
perceived as
durable and fashionable.
5.2.5 Encourage Product Customization
Adidas can also make provisions for consumers to customize
their products online before it is delivered to them, this will
give customers
unique and a wide range of their products to choose from and
will also allow them to understand what their consumers really
want and
focus on satisfying their consumer. With each consumer trying
to be very creative and unique in their way, Adidas will shift its
focus on
their consumers from how much they are to pay for the product
to how much they can benefit from the product. Adidas can
promote this
feature through its Facebook page which has over 6 million
members.
5.2.6 Focus on Emerging Market
Adidas can capitalize on Nike’s weakness which is its focus on
local market, Adidas can capture emerging markets, and already
it has a
lead in market such as India and Japan. In Latin America, it
experiences a growth sale of 38% in 2007. (ReComparison,
2012) Although
it is competing with Nike in China, it should focus on ranking
its investment solely on markets which offer superior channels
to long-term
growth and profit prospects and should also focus on expanding
its share to unreached areas especially in China, Russia, Africa
and the
United States. It should also ensure that it differentiates
consumers’ buying behaviors as it differs in different regions
and countries and
understanding this will be an added advantage to Adidas.
6.0 CONCLUSION AND RECOMMENDATIONS
From the above analysis, we had understanding about the pros,
cons and risks of Nike’s core marketing strategies with relevant
marketing theories. Besides that, the difficulties Nike faced
when they competing with Adidas. We discuss from the
distribution, price,
products design, promotion and advertising, market
segmentation to analysis Nike’s competitive advantages in the
global market. We
also find that the other side influences of Nike’s core marketing
strategies such as costly advertising, raw materials costs
affected by the
global economic, the spokesperson’s behaviors which has
negative influences to the Nike’s brand images. What’s more,
the risks of
Nike’s core marketing strategies such as Nike cannot follow the
world fashion trends, the profits has affected by the currency
exchange
and economic recession when expand to the global.
Nike has remained and continues to remain at the top in
producing and distributing their sports clothes and equipments.
However, Nike
should consider the competitive pressure is very heavy and not
allow the “sleep at the top”. So Nike should continuously find
efficient
marketing strategies to keep their top leaders positions.
The following recommendations are suggested in a situation
where marketing management is competent. Nike should
increase their
market shares through issue new products, competitive pricing
strategies, and advertisement and promotions activities. Nike
also should
restructure market dominance by separate themselves from the
competitors mainly through mass promotion strategies and
pricing
strategies which make Nike more attractive to customers.
Besides that, Nike must increase their awareness of corporate
social
responsibility to strengthen their image of themselves. What’s
more, Nike should pay much attention to their R&D department
to
research out different kinds of people with different taste to get
the market diversification goals.
All the above show a competent marketing management which
can help Nike Keep their top market leaders and keep their
competitive
advantages.
7.0 REFERENCES
Abhiroopsur (2009) ‘Nike – How the Brand Survived until
Today’, (online) (cited 1st March 2012).
Adidas Group (2011) ‘Adidas Strategies’, (online) (cited 10th
March 2012). Available from
Adidas-Rebook (2011) ‘Adidas-ReebokMerger’, (online)
(accessed 11th March 2012).
Allick M., Keany E., Koslow J., Tansamrit A., Thorkelson D.
(2000) ‘Comparison between Nike and Adidas’, (online) (cited
26 Feb 2012).
Available from Soc.duke.edu/~s142tm17/compare.htm
Bedar S. (2002) ‘Putting the Boot In’, The Ecologist, 32:3,
(online) (cited 11th March 2012).
Boggan S. (2001) ‘Nike Admits to Mistakes Over Child Labor’,
(online) (cited 2nd March 2012). Available from:
http://www.commondreams.org/headlines01/1020-01.htm
http://www.commondreams.org/headlines01/1020-01.htm
Cloke M. (2011) ‘Marketing Management 01′, (online) (cited 26
Feb 2012). Available from URL:
http://www.slideshare.net/michaelcloke/marketing-management-
01-8568487
Dogiamis G., Vijayashanke N. (2009) ‘Adidas: Sprinting Ahead
of Nike’, (online) (cited 4th Feb 2012).
Enderle K., Hirsch D., Micka L., Saving B., Shah S., Szerwinski
T. (2000) ‘Strategic Analysis of Nike, Inc’, (online) (cited 26
Feb 2012).
Florzak A. (2011) ‘Strategic Analysis: Nike’, (online) (cited
29th February 2012).
Fluffylinks (2012) ‘How Nike’s Marketing Revolution has
Resulted in a 40% Reduction in TV and Print Advertising in the
U.S.’, (Online)
(accessed 11th March 2012).
Jerome A. (2005) ‘Pros, Cons and Risks of Nike’s Marketing
Strategies’, (online) (cited 12th March 2012).
Jones, S (2012) http://www.study-
aids.co.uk/busman/busman2.html MBA Dissertations
Sarah Hopkins (2008) ‘Nike’s Marketing Strategies’, (online)
(cited 9th March 2012).
Smith L. C. (2010) ‘Marketing Strategies of Nike’ (online)
(cited 10th March 2012).
St. John University (2004) ‘Nike (Nke)’, (online) (cited 1st
March 2012).
Taulli T. (2011) ‘Nike Shares’, (online) (cited 2nd March
2012).
TED (2011) ‘NIKE: Nike Shoes and Child Labor in Pakistan’,
(online) (cited 28th Feb 2012).
Source by Steve Jones
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Final Project Fashion in Technology and Retailc.docx

  • 1. Final Project: Fashion in Technology and Retail c Fashion in Technology and Retail Professor Jennifer Lezan Final Project By Jeimy M. Jimenez About Sephora Sephora is a leader in global prestige retail, teaching and inspiring clients to play in a world of beauty. Owned by LVMH Moët Hennessy Louis Vuitton, the world's leading luxury goods group, Sephora has earned its reputation as a beauty trailblazer with its expertise, innovation, and entrepreneurial spirit.
  • 2. At Sephora, beauty is in our DNA. Our revolutionary beauty- retail concept, founded in France by Dominique Mandonnaud in 1970, is defined by its unique, open-sell environment with an ever-increasing assortment of products from carefully curated brands, featuring indie darlings, emerging favorites, trusted classics, and Sephora’s own, SEPHORA COLLECTION. Today, Sephora is not only the leading retailer of perfume and cosmetics stores in France, but also a powerful beauty presence in countries around the world thanks to its unparalleled assortment of prestige products in every category, unbiased service from experts, interactive shopping environment, and innovation. Sephora believes every stroke, swipe and dab reveals possibility, and we share our client’s love for the confidence that our products, services, and expertise brings to their life every day. In every store, clients unlock their beauty potential at our Beauty, Skincare and Fragrance Studios through intuitive technology and guidance from the most knowledgeable and professional team of product consultants in the beauty industry. Sephora stores – Sephora operates approximately 2,300 stores in 33 countries worldwide, with an expanding base of over 430 stores across the Americas. Sephora opened its first U.S. store in New York’s Soho neighborhood in 1998, and its first Canadian store in Toronto in 2004. The Sephora Americas headquarters and Innovation Lab are located in San Francisco, with corporate offices in New York, Mexico City, Montreal, Toronto and São Paolo. Sephora.com - Launched in the U.S. in 1999 and Canada in 2003, the foremost prestige beauty site on the Internet is also Sephora's largest North American store and is where clients can engage with an inclusive beauty community on our award- winning Beauty Board, and interactive Beauty Talk.
  • 3. Sephora mobile – Obsessed with teaching and inspiring clients to play in a world of beauty, Sephora has pioneered the use of mobile in beauty, creating groundbreaking content on its intuitive Sephora app and on social media to bring Sephora’s expertise to our clients whenever and wherever they want. Beauty Insider - In 2007, Sephora launched a client loyalty program to feed their addiction to beauty with unique rewards and experiences. The Beauty Insider program is available in Sephora stores nationwide and at www.sephora.com. In 2009, Sephora launched V.I.B. [Very Important Beauty Insider], and in 2013, added VIB Rouge, two premium levels for Beauty Insiders that give clients access to even more exclusive gifts, event invitations, and early access to select products. Sephora Stands – Sephora encourages bold choices in beauty – and in life with the purpose of inspiring fearlessness. Launched in 2016, Sephora Stands social impact programs utilize our strengths to promote even greater good by supporting female entrepreneurs in beauty via Sephora Accelerate, our communities via Classes for Confidence and our people via Sephora Stands Together. Sephora Innovation Lab – Sephora has always had innovation at the core of its DNA. Opened in 2015 in San Francisco’s Dogpatch district, the Innovation Lab was a natural progression of Sephora’s client centric, continual ideation and innovation. Responsible for groundbreaking tools like Sephora Virtual Artist, fun ways to play with beauty like Sephojis emoticons, opening new lines of client communication with chatbots, as well as fostering creative talent across the entire organization through their unique Think Tank program and Hackatons, the Innovation Lab aims to aid clients in easily navigating the beauty world to find the right products. Sephora PRO – The Sephora PRO Team is an elite group of
  • 4. makeup artists handpicked for their superior skill, unprecedented creativity and ability to inspire through education. The Sephora PRO artists are among the industry's most knowledgeable in beauty expertise and application, lending their aptitude and know-how to product ideation and development, sharing beauty education tips on Sephora’s social channels, speaking on behalf of the retailer to media, and applying their industry prowess at a variety of national and local client events. Each Sephora PRO artist is a permanent appointee and based in a specific region, broadening their influence across the Americas. Sephora inside JCPenney – A 10-year partnership with the nation’s largest apparel and home furnishings retailer, Sephora inside JCPenney stores are situated in the center of the store and feature the signature Sephora look and experience in a smaller footprint, in over 590 locations across the U.S. (Sephora, 2017) My Chosen Online Fashion Retailer The Online retailer of my choice is going to be Sephora I chose this company because it has a strong business presence and a strong reputation online as well as with its brick and mortar stores as well; not to mention it's one of my favorite cosmetic stores to shop in. Not only do they offer name brand cosmetics as well has as its product line, but Sephora also offers skin products, fragrance, nail care, and hair products as well. Identify the Marketing Mix Product: Products are a little higher priced than those you would find in a drug store. The Concept behind this is that they are quality products that are also backed up by the name of the brand Place: Strong reputation online as well as with its brick and mortar stores. Sephora is also strategically placed in the middle of department stores for customer visibility and product
  • 5. placement Promotion: Sephora uses the reward tactic; it is an excellent way to get Sephora's target market to engage in your online efforts. It's a great way to retrieve valuable information that can assist in reaching a broader audience and understanding your consumer, as well as helping create loyalty to the brand Product-related questions What new products has this retailer designed or developed in the last three to five years? Products in Sephora are constantly being introduced and evolving. Sephora is always adding new products to their stores as well as new products from their line. For example, their expansion of male products for hair, skin, and fragrances Price-related questions: What are the pricing strategies for these new products? Products are a little higher priced than those you would find in a drug store. The Concept behind this is that they are quality products that are also backed up by the name of the brands. The retailer uses a combination of different selling strategies: Internet sales, word of mouth, and brick and mortar stores What media is used to promote these new products? I would say social media would be the primary promotion vehicle for Sephora · Cite the retailer's web page (or, if imaginary, the web pages that you referenced to create your retailer). · http://www.sephora.com · Are you able to purchase directly from the web page? · Yes · Does it link to social media sites? · Yes What Benefits Does Having a Website give the Particular Retailer? The site gives Sephora more visibility as well as the option for
  • 6. the customer to shop in the comfort of their own home. The customer can view important details of the products and also recommendations of other similar products based on search criteria and patterns of shopping. Identify the Target Market: Who are its customers? Sephora's general target market is higher-income women, but the stores are cleverly designed to break down the target market into smaller segments. Sephora tries to appeal to women who value quality and are willing to pay for it Sephora also caters to other customers that include tweens, teenagers, and men. Sections of the store fronts are brightly colored to appeal to this market while other sections dedicated to men are more decorated more modestly. This target market is more geared towards contemporary women and men who have an interest in fashion and are fashion forward. They have a compelling interest in beauty and enjoy having products that help them maintain a youthful look as well as looking and feeling their best. Age: 18-55 Location: Throughout the United States in 29 countries with an expanding Gender: Women and men Income level: High disposable income Education level: College educated Marital or family status: Single or career oriented married couples STRENGTHS · Current manufacturing, distribution and selling of beauty products. · Already has a base of shoppers · Established operations already in place for their current products, including employees and brand ambassadors · Established within department stores · Company is always eager to expand and is always evolving with new products and locations
  • 7. · New products heighten store's sales WEAKNESS · Competition is already established within · industry, (MAC, ULTA) · May have strict pricing due to high end brands. · Sephora may be missing out on the customers because of high pricing · Not enough marketing effort toward the male fanbase OPPORTUNITIES · With the eagerness to expand, Sephora has an opportunity to branch into a male focused branch of the brand. · With consumers, already in place buying from existing products and the brand already having an industry presence, Sephora can market their new expansion to those users. · Can take the knowledge and practice of selling some male products as a way of testing the market with new products · Use positive feedback from test market results to establish the new male product line and customer segment. · Brining in a new branch can give Sephora the opportunity to expand their customer by making it a focal point for shoppers by having a larger variety THREATS · The biggest threat is cost! Adding a new product/branch within the company's line will be costly, especially if the return isn't positive. · Pricing, competition may have better pricing so it's important for Sephora to research that important area. · New product line and customer base could take away sales from the existing store/product.
  • 8. Market Segmentation The market segmentation will happen geographically, demographically, behaviorally, as well as psychographic segmentation. Geographic segmentation will separate the market into various geographical areas. The demographic segmentation will separate the market into demographic indicators such as education level, gender, age, and income. Psychographic segmentation will separate the market into lifestyle and belief. On the other hand, behavioral segmentation separates the market into buying and shopping behaviors. Customer relations management will be applied based on the best criterion that suits any markets segment as discussed above. Marketing to the various segments is done through various methods or ways using the most appropriate technology. The first marketing platform is via online method, which may involve the creation of a website that will allow online placement. The second method involves the packaging of goods to appeal to various classes of people and gender. To this end, the products should be packaged to appeal to capture both genders in order to increase the market base. Additionally, the packaging should be such that the high and low income earners are catered for. Therefore, the products should be in such a way that they are differentiated in term of price to meet the demand of both the high and the low-income earners. Establishing a
  • 9. proper supply chain is essential to ensure that the market segments located away from the manufacturing are essentially supplied. This means that the meeting the shipping cost is crucial. Creative use of technology is essential in amplifying, accelerating, and activating product promotion through various campaigns or the injection of fresh or new customer experiences. Technology is therefore a powerful tool to create awareness on the existence of a new product in the market. The use of technology creates experiences that excite the customers as well as engaging them. Creative technology draws the attention of the consumer, making theme delve deep into the new product, and get them hooked to ensure expanded base that pushes the business into greater sales heights due to aggressive and creative heights. Supply Chain The best supply chain is to adopt the contemporary western fashion model, which includes design, inventory, and sale to the final consumer. This implies that the designs are carried out via the company, which the n manufactures, keeps the inventory and ship to the final consumer when need arises. This model is relevant as it shares the commitment and the dedication throughout the value chain. In essence, when the customers place any order, the manufacturer or the designer will readily ship the meet the customer demands wherever they are. The key to the success of this model lies on the fact that delivery is first done to the nearest point of contact. Technology The use of technology enhances advertisement by creating awareness, constantly reminding the consumer of the existence of the product, and finally reaching out to new market segments. Advertisement is done through the various available media that include but not limited to the television, the social
  • 10. network, the radio, and the various many online platforms. Technology also enhances public relations. The use of technology ensures that many customers are reached, potential or rebound. Improving communication is important making supply chain quite effective or efficient. This ensure that the impending logistical challenges are addressed by finding better solutions of handling them. Achieving this is pegged on effective training of the team to adapt to the uses of new technology or upcoming invention s in the field. Market Segmentation The market segmentation will happen geographically, demographically, behaviorally, as well as psychographic segmentation. Geographic segmentation will separate the market into various geographical areas. The demographic segmentation will divide the market into demographic indicators such as education level, gender, age, and income. Psychographic segmentation will separate the market into lifestyle and belief. On the other hand, behavioral segmentation separates the market into buying and shopping behaviors. Customer relations management will be applied based on the best criterion that suits any markets segment as discussed above. Marketing to the various segments is done through different methods or ways using the most appropriate technology. The first marketing platform is via online method, which may involve the creation of a website that will allow online placement. The second approach includes the packaging of goods to appeal to various classes of people and gender. To this end, the products should be packaged to appeal to capture both sexes to increase the market base. Additionally, the packaging
  • 11. should be such that the high and low-income earners are catered to. Therefore, the products should be in such a way that they are differentiated in term of price to meet the demand of both the high and the low-income earners. Establishing a proper supply chain is essential to ensure that the market segments located away from the manufacturing are mainly provided. This means that the meeting the shipping cost is crucial. Creative use of technology is essential in amplifying, accelerating, and activating product promotion through various campaigns or the injection of fresh or new customer experiences. Technology is, therefore, a powerful tool to create awareness on the existence of a new product in the market. The use of technology creates experiences that excite the customers as well as engaging them. Creative technology draws the attention of the consumer, making theme delve deep into the new product, and get them hooked to ensure expanded base that pushes the business into greater sales heights due to aggressive and creative heights. Supply Chain The best supply chain is to adopt the contemporary western fashion model, which includes design, inventory, and sale to the final consumer. This implies that the plans are carried out via the company, which then manufactures, keeps the inventory and ship to the ultimate consumer when the need arises. This model is relevant as it shares the commitment and the dedication throughout the value chain. In essence, when the customers place any order, the manufacturer or the designer will readily ship the meet the customer demands wherever they are. The key to the success of this model lies in the fact that delivery is first done to the nearest point of contact. Technology The use of technology enhances advertisement by creating awareness, always reminding the consumer of the existence of the product, and finally reaching out to new market segments. The advertisement is done through the various available media
  • 12. that include but not limited to the television, the social network, the radio, and the various many online platforms. Technology also enhances public relations. The use of technology ensures that many customers are reached, potential or rebound. Improving communication is important making supply chain entirely effective or efficient. This ensures that the impending logistical challenges are addressed by finding better solutions for handling them. Achieving this is pegged on the active training of the team to adapt to the uses of new technology or upcoming inventions in the field. Identify the Supply Chain for the Business: What role has the technology played in the logistics of this supply chain? How will the technology play a role in this situation? The fast-growing world in every field of life need to have the industry developed through the supply chain management. As in case of the product chosen named as Sephora; the fashion industry. This is a cosmetics product that requires a challenging role in the market. The fashion industry is growing more rapidly in the new era of the fashion where there is need to develop a supply chain structure to provide each and every product the line to reach the customer. Supply chain has a focus on the consumer and provides the techniques that how the business could be enhanced and developed nationally and internationally with a view to handle the product more tactfully. For the firm the growing need is to handle the supply of the product through the help of the information technology where the data could be integrated easily and internal improvements of the company management for the supply chain (Inda and et al, 2014). The company is using different methods to control supply chain management such as the data base management system help. This software provides help to control the inventory and label the manufacturing and the finishing of the product and also its supply t end user. This system helped to maintain the relevant data of the company and the company products. Global market
  • 13. could be handled easily with the help f this system where the relative information of each and everything, inventory and even the client is saved and could be accessed easily any time (Singh, 2002). The need to have the quality relationship and the information is resolved through this about the supply chain management. Identify and describe the elements of the promotional mix: How has the technology enhanced or hindered each element? There are five different tools or instruments for the provision of the supply chain management system. These five instruments used for this purpose are relation with the customer, relation with the people whom we work with or the investor, information sharing method, relationship with the customer and the internal or institutional performance management. The growing needs of the competitive environment is to develop the healthy relation with the partner, investor as well as with the customer who are the end user from where the company earn. These multi- dimensional policies provide the basic structure to the performance meter where the need for the competitive business environment could be resolved. Supply chain performance is related to the internal and external resources building about the company and the company product (Zaim, et al, 2007). The supply chain management implications are a useful tool to get a beneficial production and the return of the product. In case if the company wants to increase the volume of its sales and return or should better take help from these strategies where the relation earning provides the best instrument. Joint ventures could be made so as to create and increase the supply chain of the product and the production (Obeida, 2014). Explain how the element will or should be combined into an integrated marketing plan. Which media are utilized: Which media are being under or over utilized? Global market has taken place drastically. The companies are expanding through the social media networking and the economies are getting closer to each other with every day passing. The supply chain management has helped us to create
  • 14. healthy relation with the outside world. Product quantity and quality are both enhanced through this as we learn more and better ways to earn the return on the products. There are more opportunities and markets through the logistics of the supply chain management. It has taken the economies closer and stronger than before through collaborating within the business structure and organizations are integrating their supply structures (Irfan And Raja, 2014). Conceptual framework provided for this purpose has helped to integrate globally and internal potential of the company could be fully utilized through developing new strategies by integration. The window model structure has helped to explain the supply chain markets and the strategies to analyze business more potentially (Agus, 2014). What can be done to make the supply chain more efficient? A systematic planning process is made for the quantitative measurement of the supply chain performance. Through a collaborating supply chain management system, the long and short run objectives of the management could be achieved. The market integrating policy and the market sharing method has helped to resolve this issue. For measuring the supply chain performance, we need to build better customer rationing and the improve supplier and customer relationships. These could be achieved with the help of market information sharing about the company and the company product line that differ with country and region (Ahmad, 2014). Strategic supplier partnerships are needed to organize the company internal structure to build long run relations with the supplier and the customer that has a significant impact on the company performance and management techniques. How can technology help make the supply chain more effective and efficient? In the supply chain performance measurement, the role of technology could not be ignored. The fast-growing economies and the business relations need to be integrated through the social networking and the internet. IT has helped us to stay in
  • 15. touch with the internal management as well as external market. The database management system is requiring to keep the large set of information about the company working. It has the complete record about the inventory, supplier, customer, investor, employee and others in a systematic way. Data analysis is used to have the identification of the data in an organization through placing logical groups. System analyst usually required to make flow charts through a conceptual framework. The development of the techniques and methods for the data analysis the organizations are using conventional methods to avoid complexities of data. The large forms are adopting these measures to control the manufacturing and the external networking with supplier, partner and the customer through this medium (Byrd & Davidson, 2003). REFERENCES Agus., A. 2014. Supply Chain Management: The Influence of SCM on Production Performance and Product Quality. Journal of Economics, Business and Management. Vol. 3, No. 11. Ahmad, N.A., 2014. The Effect of Supply Chain Management Practices on Strategic Flexibility: Applied Study on the Jordanian Manufacturing Companies. European Journal of Business and Management, Vol.6, No.5. Byrd, T. A., & Davidson, N. W. 2003. Examining possible antecedents of IT impact on the supply chain & its effect on firm performance. Information and Management, 41 (2), pp. 243-255. Baral., R. And Krishanpriya, V. 2014. Supply Chain Integration- A Competency Based Perspective. International Journal of Managing Value and Supply Chain (UMVSC) Vol. 5, No. 3. Irfan., M. And Raja, I. S. 2014. Levels and Barriers to Supply Chain Integration: A Conceptual Model Of Supply Chain Performance. International Conference of Business Management. Vol, 1, Issue 1. PP: 52-59. Inda, S., Abu, B.H., Rohaizat, B., Rosman, M.Y., (2012). The
  • 16. Study of Supply Chain Management Strategy and Practices on Supply Chain Performance. International Conference on Asia Pacific Business Innovation & Technology Management, 40 (2012) 225 – 233. Inda., S., and et al, 2014. A Study Of Supply Chain Management Practices: An Empirical Investigation on Consumer Goods Industry In Malaysia. International Journal Of Business And Social Science, Vol. 2 No. 17. Obeid., B. 2014. The Impact of the Supply Chain Management Practices On Supply Chain Management Performance In Jordan: The Moderating Effects Of Competitive Intensity. International Business Research 7(3): 13-27. Rao., S. S. And Et Al., 2006. The Impact of the Supply Chain Management Practices On The Competitive Advantage And Organizational Performance. Vol 34. PP: 107-124. Singh., M. And Mahesh, S. R. 2002. Global Supply Chain Management In The Telecommunication Industry: The Role Of Information Technology In Integration Of Supply Chain Entities. Journal of Global Information Technology Management; 2002. 5, 2. Zaim., Et Al, 2007. The Impact of the Supply Chain Management On Performance Of SMes. Emerald. Zain., D. And Et Al, An Empirical Internal Perceptions Study Of The Implementation Supply Chain Management In Indonesian Manufacturing Companies As A Mediating Factor of Information Technology Utilization To Organization Performances. European Journal of Business and Management. ISSN: 2222-1905 (Paper) ISSN: 2222-2839. Vol. 5, No. 16. About Us. (n.d.). Retrieved June 25, 2017, from http://www.sephora.com/about-us 18
  • 17. MKT 228 Online Advertising Campaign Short Paper Guidelines and Rubric Overview Using your final project, create an online advertising campaign for your company. Specifically, make a list of the media (at least five) that would be most effective in reaching your target audience. Explain your reasoning for each. Hint: Utilize the advertising objectives to help convey your message. Format: This case analysis should follow these formatting guidelines: 1–2 pages, double spacing, 12-point Times New Roman font, 1-inch margins, and a minimum of 2 sources. Instructor Feedback: Students can find their feedback in the Grade Center. This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value Advertising Objectives Meets “Proficient” criteria and uses clear and relevant
  • 18. examples to establish the context for the media selection Identifies the advertising objectives and connects them to media selection Identifies the advertising objectives, but does not connect them to media selection Does not include advertising objectives 30 Media Selection Meets “Proficient” criteria and also provides unique media suggestions Identifies appropriate media selections for an advertising campaign Identifies media selections for an advertising campaign, but they lack appropriateness Does not include media selection 30
  • 19. Reasoning Meets “Proficient” criteria and justifies the reasoning with clear and relevant examples that firmly establish the effectiveness of the choices Provides appropriate reasoning for the selection of the media, using clear and relevant examples Provides reasoning for the selection of the media, but does not use clear examples Does not include reasoning 30 Articulation of Response Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to-read format Submission has no major errors related to citations, grammar, spelling, syntax, or organization
  • 20. Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 10 Total Comments: 100% http://snhu- media.snhu.edu/files/production_documentation/formatting/rubr ic_feedback_instructions_student.pdf MKT 228 Nike Case Analysis Guidelines and Rubric
  • 21. Overview Reference Case Study 2.1: “Nike Shifts With Its Environment” in the text. Answer the three questions as listed. Write out the questions with your full responses for full credit. Make sure to include the role technology plays within each of your answers. 1. From what you can tell by reading the case, in addition to other information you know about Nike, how has each element of the company’s microenvironment contributed to its development of the new stores and their innovative features? 2. What is the influence of the various components of the macroenvironment on the company’s present situation? 3. Concerning current social attitudes and values, do you believe Nike is on the right track in its approach? Why or why not? What additional suggestions would you offer the company? Format: This case analysis should follow these formatting guidelines: 1–2 pages, double spacing, 12-point Times New Roman font, 1-inch margins, and a minimum of 2 sources. Instructor Feedback: Students can find their feedback in the Grade Center. This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
  • 22. Microenvironment Meets “Proficient” criteria and uses clear and relevant examples Analyzes the microenvironment and provides clear examples of how this environment contributed to the development of new stores and innovative features Analyzes the microenvironment but does not provide clear examples of how this environment contributed to the development of new stores and innovative features Does not include microenvironment 25 Macroenvironment Meets “Proficient” criteria and uses clear and relevant examples Analyzes the macroenvironment and proposes its influence on
  • 23. the company’s present situation Analyzes the macronvironment, but does not sufficiently propose its influence on the company’s present situation Does not include macroenvironment 25 Social Attitudes and Values Meets “Proficient” criteria and compares the social attitudes and values to other companies in the market Evaluates the current social attitudes and values of the company, using clear and specific examples Evaluates the current social attitudes and values of the company, but does not use examples Does not include social attitudes and values
  • 24. 25 Suggestions Meets “Proficient” criteria and provides unique suggestions Proposes specific suggestions on how Nike could improve social attitudes and values Proposes suggestions on how Nike could improve social attitudes and values, but is not specific Does not include suggestions 15 http://snhu- media.snhu.edu/files/production_documentation/formatting/rubr ic_feedback_instructions_student.pdf Articulation of Response Submission is free of errors related to citations, grammar, spelling, syntax, and
  • 25. organization and is presented in a professional and easy-to-read format Submission has no major errors related to citations, grammar, spelling, syntax, or organization Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 10 Total Comments: 100% HOME // UNCATEGORIZED // A MARKETING CASE STUDY
  • 26. ON NIKE A MARKETING CASE STUDY ON NIKE WRITTEN BY MILES MEDIA ON APRIL 10, 2016. POSTED IN UNCATEGORIZED 1.0 INTRODUCTION OF NIKE Nike is a major publicly traded sportswear, footwear and equipment supplier based in the US which was founded in 1962 originally know as Blue Ribbon Sports. Nike is the world leader in the manufacturing of sportswear and gear with more than 47 market shares across the global (Nike.com, 2011). Nike produces a wide range of sports equipments such as running shoes, sportswear, football, basketball, tennis, golf, etc. Now Nike follows the global fashion trends and is well known and popular in the youth culture and hip hop culture to supply some fashion products. Nike recently teams up with Apple Company to produce the Nike+ products which can monitor a runner’s performance through a radio in the shoe that can link to the iPods. Besides that, Nike also becomes the top of three companies which are climate-friendly companies which build better image to customers. Nike’s excellence marketing strategies are their energy to achieve their market goals. Nike believes the “pyramid influence” that the preferences of a small percentage of top athletes influence the product and brand choice. So Nike contracted with many athletes’
  • 27. spokesperson, professional teams and college athletic teams to advertise and promote their products to customers. Nike seriously pay attention on the technology producing, design and selling such as e-commerce, high-tech running shoes, Nike+ with Apple, etc. Nike outsourcing their products most of the factories are located in Asia such as China, Indonesia and India. 2.0 PROS OF NIKE’S CORE MARKETING STRATEGY http://milesonmedia.com/ http://milesonmedia.com/category/uncategorized/ http://milesonmedia.com/author/theraymiles/ http://milesonmedia.com/category/uncategorized/ http://milesonmedia.com/ Nike put heavily proportion in their marketing strategies and products deign. In order to sustain their dominance in the industry and retain their competitive advantages, Nike actively responds to the market trends and changes in consumer preference by adjusting their marketing strategies, the mix of existing product offerings, developing new products, styles and categories, and influencing sports and fitness preferences through various marketing strategies. Now we discuss the pros of Nike’s core marketing strategies and related them to the relevant marketing theories help us to depth understanding. 2.1 Distribution
  • 28. More efficient product distribution is the more sales and thus more profits. The delivery of the right products and at the right time to the customers is not only effect the utility but also leads to high level of consumer’s satisfaction and loyalty. Nike distributes its products on different level basis. The high premium products are given to a certain distributors while leaving the low priced to be sold at highly discounted price at the retail stores such as Wal-Mart (Jeannet J, 200, pp 44). Nike has become the leader in the e-commerce by being the first to the market with its e-commerce website. Nike launched its e- commerce site in April 1999 by offering 65 styles of sport shoes to the US market for purchasing (Nike, 2000). This program represents the first time a company has offered mass footwear through the Internet and provides competitive advantages to Nike. 2.2 Advertising and Promotion Nike makes contracts with some celebrity athletes which can draw attention to their products such as Tiger Woods, Ronaldo. This has created a relatively high level of Nike’s awareness. Besides that, Nike also employed a large amount of advertisements through the mass media (Goldman S, 2000, pp 154). Nike’s brand images, including the Nike’s name and the trademark are considered to represent one of the most recognizable brands in the world. The Nike name and associated trademarks have appeared from players’ shirts, pants and everywhere. Their aggressive advertising campaigns,
  • 29. celebrity endorsements and quality products all enhance their brand and image. For example, when a celebrity athlete sponsors a specific brand of athletic shoes, the brand will be associated with success. 2.3 Price Nike targets on the consumers who care more about the utility and quality of the products rather than the price. In this way, the price is not affect too much (Frank, 2004, pp173). This has make Nike to set relatively higher price than its competitors. This strategy focuses on the consumers who like Nike and pushes the products value to a higher level. The customers who consider a product to be high quality are likely to pay the high price more often and consistently. Once the consumers develop the product intimacy, they come to associate their person with the products and will pay whatever price quoted on the products. Nike use vertical integration price strategy in which they take ownership of the participants at channel level that differ and they also engage in various channel level operations both to control costs and thus influence the pricing function (Goldman S, 2000, pp154). 2.4 Market Segmentation and Target Most of the consumer of Nike’s products is mainly athletic. Nike is the master of segmentation, their segmenting market
  • 30. typically target’s athletes, both women and men from the age 15 to 35. Nike’s targeting market is active people who enjoy high quality sporting goods, especially footwear. Nike focuses on creating premium consumer experiences on product innovation, brand leadership and elevated retail presence. Nike targets on these customers by agreements between Nike and athletic teams, college’s athletic teams for products sponsorship and eventual promotion to the members of these teams. Even though others are likely to buy the products, Nike focuses on the athlete more than any group of individuals even though it also target on the youth. This strategy is especially successful because of its ability to reach a large number of athletes. 3.0 CONS OF NIKE’S CORE MARKETING STRATEGY Although Nike’s marketing strategies had brings lot of positive implications to the company, but it will bring negative implications to Nike too. The negative implications that will identify in this assignment are high cost incurred, influence of spokesperson, and competitors. 3.1 Costly Since Nike has implemented several marketing strategies, it had incurred high costs in producing and promoting its products. The costs are increase among handling inventory, designing, advertising and production. (Abhiroopsur, 2009) Beyond that, the inflation had raised the costs of raw materials and transportation. To deal with these
  • 31. problems, Nike has increased the products’ prices and reduces its marketing budget. Therefore, this could hurt the long-term growth of the Nike. (Taulli, 2011) According to Boggan (2001), Nike had also employed child labor in Cambodia to reduce its production and labour costs. This had affected its brand image, and it might have many people boycott Nike and stop to buy anything from Nike. (Boggan, 2001) Furthermore, Nike has been using child labour in the production of its soccer balls in Pakistan. (TED, 2011) 3.2 Influences of spokesperson One of the Nike’s core marketing strategies is depend on a group of athletes to promote its products. Nike prefers to have high profile athletes as its endorsers, like Runner Steve Prefontaine, Michael Jordan, and LeBron James. The athletes had positive and negative influence on changing consumer preferences, changes in consumer tastes and priorities, and also consumers’ buying decisions. The action and attitude of Nike’s chosen spokespersons could bring the impacts on its promotional strategies. For instance, it will attract the athlete’s idolater to purchase the products if Nike using a popular athlete as endorser. On the other hand, if the athlete were caught in drug addicted or any immoral attitude, it will affect the customers not to buy Nike’s products, thus will affect Nike’s sales, revenue and
  • 32. profit. (Cloke M., 2011) 3.3 Intense Competitors There is intense competition faced by Nike. Their competitors are Adidas, Reebok, Puma, and so forth, whilst competition is tighter with the coming of Adidas. More, the product line is slightly different between Nike and Adidas. Nike is mainly focus on footwear for men and women who between 15 to 35 years old, while Adidas is specialize in footwear for men, women and children between the age of 10 to 30. This had shown that there is less diversification of Nike marketing strategy. They could also provide footwear for children to attract more parents to become their potential customers. Additionally, Nike distribution strategy is mainly focus in domestic market which is United States of America, whilst Adidas’s main office is located at Germany, but it focus in European market. Therefore, Nike should distribute its products to more region and countries in order to capture more potential customers and achieve greater reputation. (Allick et al., 2000) 4.0 RISKS OF NIKE’S CORE MARKETING STRATEGY Nike faces many risks when they use their core marketing strategies to achieve their goals and these risks can come from both internally and externally environmental circumstance. The risks will have a negative influence about Nike’s future development, for example, the market share in the world, reputation, brand image and customer
  • 33. loyalty. 4.1 Changes in Market Trends, Consumer Tastes and Preferences Nike needs to stay on the top of changes in consumer taste and preferences as evidenced by changes in fashion. So Nike face the risk that fashion trends may change so fast that Nike fails to follow. For example, for a period, the global athletic sportswear is focus on personality and Nike’s products still be general to the customers this will lead Nike go behind of their competitors if their competitors can follow the trends. For another example, such as the social changes, women are becoming more fitness-conscious and are increasingly being targeted as growth potential in the sporting apparel and footwear industries. Due to constant changes in consumer tastes and fashion, these industries are always changing. If Nike cannot follow the fitness trends in the market they will face risks of losing market shares. To compete with this risks and problems, Nike should position it as a trendsetter and not a trend follower and be responsible to their customers. (St. John University, 2004) 4.2 Fast changing of Nike’s products From the above risk, the changing in fashion and customers’ preference had brings negative effect on its marketing strategies. Hence, Nike should introduce new products to maintain its customer
  • 34. loyalty as well as attract new customer markets. However, it will also have negative implication if Nike’s implement new products rapidly. As we know, Nike’s products are focus on the athlete’s shoes, apparels and equipments and their target consumers are for the athletes. But now the global trends are to be fashion and personality. So Nike change its marketing strategies and products design to become more fashion and focus on the youth consumers. It brings risks to Nike because in the traditional mind of customers, they consider Nike only sell the athletic products. The fashion or the changing style products is unimaginative for customers to purchase. Not all the customers can follow the changing of Nike. Sometimes customers maybe feel fed up because they cannot follow the changing of Nike’s products will lead Nike lose customers which drop down the customer loyalty and market shares. (St. John University, 2004) Therefore, Nike should analyse the market and customers’ preference as well as customers’ buying behavior from time to time. Nike could prepare survey form to their customers in order to have more understanding on customers’ taste, requirements when buying sportswear or footwear, and also collect the feedback and recommendation from consumers. 4.3 Expanding to the Overseas One of Major Nike’s marketing strategies is to expand to overseas and become the leader in the world. It also will bring risks to Nike when they expand their business globally. For example, Nike
  • 35. outsources their products to developing countries such as China, Indonesia, and Thailand. Currency exchange rate fluctuations can disrupt the business of the independent manufacturers that produce Nike products by making their purchase of raw materials more expensive and more difficult to finance. Besides that, the global economic recession influence the overall business operation in the outsourcing countries. For example, inflation rate too high in an outsourcing country will increase the cost and reduce the profits for Nike. What’s more, the war and fuel price fluctuations also can lead to unstable situation for Nike over the long period. (Florzak, 2011) 5.0 COMPETITORS – ADIDAS 5.1 IFFICULTIES FACED BY ADIDAS WHEN COMPETE WITH NIKE 5.1.1 Marketing Strategies One difficulty most likely to be faced by Adidas is in its marketing, compared to its competitor Nike, Nike spends more money on advertising and promoting their products reputation, Nike spend about $1.13 billion as of 1998 involving celebrities like Tiger Woods, Micheal Jordan, Carl Lewis etc. while paying these celebrities large amount of money (Bedar, 2002), as of 2010, Nike spent about $800 million on Nontraditional advertising by using other medium of advertising their products other than TV and has reduce TV and
  • 36. Print advertising by 40%, and in 2006, Nike introduced the Nike + Platform which is a multi-channel, multi-sensory integration between apple and Nike technologies that allows persons to track performance (Fluffylinks, 2012) in essence, Adidas will have a hard time trying to compete with Nike in terms of advertising and promotion, considering Nike’s utilization of low labor cost of production, Nike can afford to spend so much money in creating awareness for their products and gaining consumers loyalty by utilizing celebrities. Adidas will have to invest more money on advertising and create innovative means of advertising their product, having consumers in mind and following the trends of technologies, for example, Adidas can collaborate with IT companies such as Samsung to create innovative means of advertising their products. 5.1.2 Adidas and Reebok Reputation on Its Finances Adidas and Reebok joining up together as a merger would be a good deal for leading over Nike but the two companies have a bad reputation due to financial problems which almost led them to bankruptcy and since they are to work together. The expansion of their business will take a while to develop because they have to have strong advertising strategies until the Asians .If the Asians like their ideas then they might as well adjust to the culture in countries like china since it has the biggest population. In the long run Asian countries like China might as well take a long time to work with
  • 37. the company in terms of coming up with factories in china. This might be one of their biggest problems which will enable them take a long time to lead Nike in terms of their market Nike. To go through all that they will be a lot of expenses thus the company might run bankrupt again. (Adidas-Rebook, 2011) 5.2 HOWADIDAS COMPETE WITH NIKE? 5.2.1 Develop the Small Computer “Smart Shoe” Product Line The development of a product line of smart shoes will build on this reputation and show buyers that Adidas is humorless about innovation and using technology to advance athletic accomplishment. The line of smart shoes combines a microprocessor or implanted controller, sensors, and tiny motors along with memory and battery. The sensors work to steadily monitor, measure, and supply data looking at the landscape, impact of each step, athlete’s body temperature, environment temperature, and athlete’s heart rate. This data can steadily be fed to a microprocessor which agent motors to adjust padding and airflow within the shoe. (Dogiamis et al., 2009) Wireless GPS system is another feature on the small computer production line that enables runners to decide their accurate location, distance traveled, and speed from the shoe’s GPS by wearing a small wireless GPS wrist strap. The shoes implanted memory can keep data about workouts such as average heart rate, body temperature, calories burnt and force of each step. For situation, in basketball the
  • 38. micro can watch how high the athlete jumps and how hard of a landing they make. As many athletes demand goods created that can deliver both watching and accomplishment bettering capabilities, they will find Adidas the solution thus leading to much higher revenue, profit, and market share in sports that Adidas already leads and in sports where Adidas lags in revenue, profit, and market share (Dogiamis et al., 2009) 5.2.2 Implementation of Rebranding Reebok Program Adidas Group should phase out its high accomplishment athletic shoe line and reposition itself in the casual footwear and active footwear market within the next years. The high accomplishment athletic shoe line can be sponged up into the Adidas brand. Adidas It should consider opening Reebok retail outlets that market Reebok as well stylish Reebok at more upscale department stores such as Macy’s and Nordstrom. Reebok should ensure keeping up a very high level of quality and durability of its shoes. However, it should work with major fashion designers such as Calvin Klein to come up with a well stylish product line of shoes meant for active, casual use, gain brand image as an upscale and more cultured shoemaker. Reebok should first come up with a line of casual but well stylish shoes designed by Calvin Klein that blend quality and style. (Dogiamis et al., 2009)
  • 39. The rebranding of Reebok can help Adidas to make larger advancements with women. They want a shoe that can be useful for all visible feature of an active lifestyle. Therefore, marketing Reebok as a well stylish line of shoes meant for active lifestyle might allow Adidas to make larger in roads with women. Reebok should start a line of well stylish shoes prepared toward women with active lifestyles. (Dogiamis et al., 2009) The overall rebranding of Reebok should be finished to avoid internal competition within Adidas Group where the Reebok division is seen as the less profitable sibling of Adidas and to keep buyers from believing that Reebok is not an expensive substitute for an excellent Adidas product. (Dogiamis et al., 2009) 5.2.3 Expand Its Sponsorship Program (Marketing) Adidas mainly focuses in the European market even though it is known in other parts of the world, which is because of its collaboration with soccer events all over the world and football associations with bodies such as FIFA, UEFA, leagues, clubs and individual players, in 2010, Adidas experience its most successful year in the history of football with sales above 1.5 billion Euros. It also had a sure climax during the 2010 FIFA World Cup of which it sponsored the wining team Spain and the adiZero F50 which is also an Adidas product had the top scoring boot in the event, lastly, Adidas Football group on Facebook massively increased from 100,000 members to over 6 million members presently. Adidas has been an official sponsor of the Olympics and has also been included as a sponsor of the 2012
  • 40. Olympics; this gives it an edge over its competitor Nike. (AdidasGroup, 2011) It should use this opportunity to carry out precise marketing, by focusing on its segment market which includes the soccer, tennis and athletics teams and probably expand its focus to the up and emerging local teams in the grassroots, because, this group of people are keen about sports and spend time watching them on the TV but hardly get access to them unless they purchase the product themselves. 5.2.4 Change in Consumer Perception to Products Adidas can also change the consumer’s perception about its products, most consumers perceive Adidas product as being too stiff and therefore are uncomfortable with it, Adidas can come up with a durable but use soft materials for its product as well as rebrand it product as not just a sporting shoe but also a fashionable shoe which consumers can wear on a casual basis example for outings, parties etc. when this is instilled in the minds of the consumers, more of Adidas product will be purchased by consumers as it will be perceived as durable and fashionable. 5.2.5 Encourage Product Customization Adidas can also make provisions for consumers to customize their products online before it is delivered to them, this will
  • 41. give customers unique and a wide range of their products to choose from and will also allow them to understand what their consumers really want and focus on satisfying their consumer. With each consumer trying to be very creative and unique in their way, Adidas will shift its focus on their consumers from how much they are to pay for the product to how much they can benefit from the product. Adidas can promote this feature through its Facebook page which has over 6 million members. 5.2.6 Focus on Emerging Market Adidas can capitalize on Nike’s weakness which is its focus on local market, Adidas can capture emerging markets, and already it has a lead in market such as India and Japan. In Latin America, it experiences a growth sale of 38% in 2007. (ReComparison, 2012) Although it is competing with Nike in China, it should focus on ranking its investment solely on markets which offer superior channels to long-term growth and profit prospects and should also focus on expanding its share to unreached areas especially in China, Russia, Africa and the United States. It should also ensure that it differentiates consumers’ buying behaviors as it differs in different regions and countries and understanding this will be an added advantage to Adidas. 6.0 CONCLUSION AND RECOMMENDATIONS From the above analysis, we had understanding about the pros, cons and risks of Nike’s core marketing strategies with relevant
  • 42. marketing theories. Besides that, the difficulties Nike faced when they competing with Adidas. We discuss from the distribution, price, products design, promotion and advertising, market segmentation to analysis Nike’s competitive advantages in the global market. We also find that the other side influences of Nike’s core marketing strategies such as costly advertising, raw materials costs affected by the global economic, the spokesperson’s behaviors which has negative influences to the Nike’s brand images. What’s more, the risks of Nike’s core marketing strategies such as Nike cannot follow the world fashion trends, the profits has affected by the currency exchange and economic recession when expand to the global. Nike has remained and continues to remain at the top in producing and distributing their sports clothes and equipments. However, Nike should consider the competitive pressure is very heavy and not allow the “sleep at the top”. So Nike should continuously find efficient marketing strategies to keep their top leaders positions. The following recommendations are suggested in a situation where marketing management is competent. Nike should increase their market shares through issue new products, competitive pricing strategies, and advertisement and promotions activities. Nike also should restructure market dominance by separate themselves from the competitors mainly through mass promotion strategies and
  • 43. pricing strategies which make Nike more attractive to customers. Besides that, Nike must increase their awareness of corporate social responsibility to strengthen their image of themselves. What’s more, Nike should pay much attention to their R&D department to research out different kinds of people with different taste to get the market diversification goals. All the above show a competent marketing management which can help Nike Keep their top market leaders and keep their competitive advantages. 7.0 REFERENCES Abhiroopsur (2009) ‘Nike – How the Brand Survived until Today’, (online) (cited 1st March 2012). Adidas Group (2011) ‘Adidas Strategies’, (online) (cited 10th March 2012). Available from Adidas-Rebook (2011) ‘Adidas-ReebokMerger’, (online) (accessed 11th March 2012). Allick M., Keany E., Koslow J., Tansamrit A., Thorkelson D. (2000) ‘Comparison between Nike and Adidas’, (online) (cited 26 Feb 2012). Available from Soc.duke.edu/~s142tm17/compare.htm Bedar S. (2002) ‘Putting the Boot In’, The Ecologist, 32:3, (online) (cited 11th March 2012). Boggan S. (2001) ‘Nike Admits to Mistakes Over Child Labor’, (online) (cited 2nd March 2012). Available from:
  • 44. http://www.commondreams.org/headlines01/1020-01.htm http://www.commondreams.org/headlines01/1020-01.htm Cloke M. (2011) ‘Marketing Management 01′, (online) (cited 26 Feb 2012). Available from URL: http://www.slideshare.net/michaelcloke/marketing-management- 01-8568487 Dogiamis G., Vijayashanke N. (2009) ‘Adidas: Sprinting Ahead of Nike’, (online) (cited 4th Feb 2012). Enderle K., Hirsch D., Micka L., Saving B., Shah S., Szerwinski T. (2000) ‘Strategic Analysis of Nike, Inc’, (online) (cited 26 Feb 2012). Florzak A. (2011) ‘Strategic Analysis: Nike’, (online) (cited 29th February 2012). Fluffylinks (2012) ‘How Nike’s Marketing Revolution has Resulted in a 40% Reduction in TV and Print Advertising in the U.S.’, (Online) (accessed 11th March 2012). Jerome A. (2005) ‘Pros, Cons and Risks of Nike’s Marketing Strategies’, (online) (cited 12th March 2012). Jones, S (2012) http://www.study- aids.co.uk/busman/busman2.html MBA Dissertations Sarah Hopkins (2008) ‘Nike’s Marketing Strategies’, (online) (cited 9th March 2012). Smith L. C. (2010) ‘Marketing Strategies of Nike’ (online) (cited 10th March 2012).
  • 45. St. John University (2004) ‘Nike (Nke)’, (online) (cited 1st March 2012). Taulli T. (2011) ‘Nike Shares’, (online) (cited 2nd March 2012). TED (2011) ‘NIKE: Nike Shoes and Child Labor in Pakistan’, (online) (cited 28th Feb 2012). Source by Steve Jones Tags: marketing, small business marketing Trackback from your site. MARKETING SERVICES WEB DESIGN GRAPHIC DESIGN http://www.slideshare.net/michaelcloke/marketing-management- 01-8568487 http://www.study-aids.co.uk/busman/busman2.html http://www.articlesbase.com/international-marketing-articles/a- marketing-case-study-on-nike-5907782.html http://www.articlesbase.com/authors/steve-jones/103269 http://milesonmedia.com/tag/marketing/ http://milesonmedia.com/tag/small-business-marketing/ http://milesonmedia.com/a-marketing-case-study-on- nike/trackback/ http://milesonmedia.com/website-design-and-development/ http://milesonmedia.com/graphic-design/ MARKETING BLOG
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