Nike is the largest seller of athletic footwear and apparel in the world. It designs, develops, and markets athletic footwear, apparel, equipment, and accessories. Nike's marketing strategy focuses on creating a lifestyle brand through innovative product design, sponsorship of athletes and teams, and large marketing campaigns. The marketing mix discusses pricing, placement in distribution channels, extensive advertising and promotion, and high-quality customer service. The target markets are recreational athletes, fitness enthusiasts, competitive athletes, sports fans, and students across various age groups and demographics globally.

1. Marketing Management
Tropic: Assignment on Marketing plan on Nike shoes
Supervised By
Jannatul Mawa Nupur
Assistant Professor of Marketing
Submitted To:
Department of Business Administration
Northern University Bangladesh
Submitted By:
Section- A
Submission Date: 07-04-2014
Sl No Name ID
01 S.M. Al-Shahriar BBA 120304790

2. Executive Summary
Nike is the most renowned supplier of athletic shoes and apparels. NIKE, Inc. was incorporated in 1968 under
the laws of the state of Oregon. The brand can be found everywhere, examples of its major target areas are:
USA, Europe, Asia Pacific and the Americas.
Our principal business activity is the design, development and worldwide marketing and selling of athletic
footwear, apparel, equipment, accessories and services. NIKE is the largest seller of athletic footwear and
athletic apparel in the world. We sell our products to retail accounts, through NIKE-owned retail stores and
internet websites (which we refer to as our “Direct to Consumer” operations) and through a mix of independent
distributors and licensees, in virtually all countries around the world. Virtually all of our products are
manufactured by independent contractors. Virtually all footwear and apparel products are produced outside the
United States, while equipment products are produced both in the United States and abroad.
The business has obtained a huge position in the market of these places thanks to the innovative and attractive
design, quality production of the product and wise marketing strategies.

3. [Table 1.0] Sales Forecast
Sales 2014 2015 2016
Recreational $911480 $1197754 $1375530
Competitive $145836 $191640 $220084
Total sales $1057316 $1389394 $1595614
Direct cost of sales 2014 2015 2016
Recreational $164066 $215596 $247596
Competitive $26250 $34496 $39616
Subtotal Cost of Sales $190316 $250092 $287210

4. 2.0 Situation Analysis
The marketing environment for NIKE represents overwhelming opportunities. It also contains some challenges
that the firm believes it can meet successfully. It’s products have been well recived, and marketing will be key
to the development of band and product awarness as well as growth of the customer base. Nike has built some
impressive strength while looking forward to new opportunities. Its dedicated founders, the growing number of
brand-loyal customers, and sound financial management place the company in a good position to grow.
However, building strong relationships with consumers, retailers, and suppliers should help thwart competitors.
2.1 Market Summary
NIKE is a consumer products company, the relative popularity of various sports and fitness activities and
changing design trends affect the demand for our products. We must, therefore, respond to trends and shifts in
consumer preferences by adjusting the mix of existing product offerings, developing new products, styles and
categories, and influencing sports and fitness preferences through extensive marketing.
NIKE has good information about the market. This information is helpful to better understand who is served,
what their specific needs are, and how Nike can better communicate with them.
NIKE brand operations based on our internal geographic organization. Each NIKE Brand geography operates
predominantly in one industry: the design, development, marketing and selling of athletic footwear, apparel,
equipment, accessories, and services. Our reportable operating segments for the NIKE Brand are: North
America, Western Europe, Central & Eastern Europe, Greater China, Japan, and Emerging Markets. Our NIKE
Brand Direct to Consumer operations are managed within each geographic segment.

5. Target Market
Recreational
Fitness
Athletes
Sports
Students,
[Table2.1] Target Market
Target Market Forecast
Potential
Customers
Growth 2014 2015 2016 2017 CAGR
Recreational
Fitness
Athletes
Sports
Students,
Total
10%
15%
10%
6%
4%
10.48%
42113500
15686000
852500
5257600
4513600
68423200
46324850
18038900
937750
5573056
4694144
75568700
50957336
20744736
1031526
5907440
4881910
83522948
56053070
23856446
1134678
6261886
5077186
92383266
10.00%
15.00%
10.00%
6.00%
4.00%
10.48%

6. 2.1.1 Market Demographics
Profile for the typical NIKE customer consists of the following geographic, demographic, and behavior factors.
Geographics
Nike’s geographic market consists of major markets throughout the globe. Until 2009 Nike’s geographical
markets consisted of United States, Asia-Pacific, Americas and an area comprising of Europe, Middle East and
Africa. However Nike announced its plan to reorganize its global business in order to bring goods closer to the
markets and in turn consumers as well as to reduce management overlap. Following this plan Nike then decided
to develop its market share in North America, Western Europe, Eastern/Central Europe, Greater China, Japan
and Emerging Markets.
Demographics
Male•
Running•Training• Basketball• Nike Sportswear• Soccer• Action Sports• Football• Golf• Jordan• Lacrosse•
Outdoor• Baseball• Tennis• Track & Field
Female•
Running• Training• Basketball• Nike Sportswear• Walking• Soccer• Action Sports• Golf• Outdoor• Softball•
Tennis• Track & Field• Volleyball
Youth•
Pre School• Infant/Toddler• Kids•

7. Age:
From 13-46 years (80%)
Education:
64% have an undergraduate degree
Income:
Median personal income around $50,000
Behavior Factors:
Users spend money on typically sports equipment .Users have active lifestyle, Users enjoy fitness activities for
a healthy life and recreation.
2.1.2 Market Needs
As nike is a customer friendly company it gives most empasis on customer needs and choice. The company
seeks to fulfil the following benefits that are important to it’s customers:
Quality product: the customer work hard for their money and innterested to spend their money only for quality
product that have high working period.
Well-Thought-Out Desigs:NIKE have industry exprencece and personal dedication to produce best designed
products.

8. Customer service: To build a sustainable business the most considerable factor is good customer service. It
refers after sales service and loyality building program.
2.1.3 Market Trends
We believe Nike will be able to maintain its strong growth performance in fiscal 2014. High demand in running,
basketball and football categories coupled with healthy growth in North America, emerging markets, and
central and eastern Europe bodes well for the company’s outlook. We expect Nike to increase its prices in the
future, which will positively impact its profitability. Excess inventory in China represents a near term threat,
and addressing this problem faster than expected could help the company outpace market expectations Nike
U.S. has eschewed both “separated toes” and “no support” shoe designs. After observing some Nike-sponsored
athletes training barefoot, Nike introduced the Nike Free shoe with a segmented, highly flexible sole in three
different levels of support that fall in-between barefoot and the most supportive shoes . The Free brand is
positioned by Nike as a “barefoot-like ride,” but the relatively thick sole separates it from true “feels the
ground” barefoot shoes and has actually helped make the brand very popular among non-runners; thus, the
brand is generally excluded when measuring sales of the minimalist running shoe segment. Nike has also
introduced another lightweight running shoe, the Flyknit brand. This is not being marketed as a barefoot
product but rather is positioned as “the perfect fit,” responding to a long-standing consumer desire for shoes that
are as light and unnoticeable as socks. Flyknit shoes are half the weight of Nike’s most popular running shoe
and made of a stretchy material with the comfort of a sock .
2.1.4 Market Growth
Strong growth in running, basketball and soccer categories is fueling demand for Nike’s products. Nike’s
strategy is to focus on discrete categories (category offense) has further helped drive its sales. In fiscal 2013,
Nike brand wholesale equivalent sales in running, basketball and soccer rose by 18%, 22% and 9% in constant
currency terms. While innovative technologies are fueling growth in the running category, the growing

9. popularity of basketball around the world coupled with Nike’s sponsorship of leading basketball players is
driving the sales in the basketball category. We expect the growth in the soccer category to accelerate in the
future owing to upcoming sporting events such as the 2014 FIFA World Cup.

11. 2.2 SWOT Analysis
The modified sneakers have various strengths, weaknesses, opportunities, and threats on the market.
The following SWOT analysis captures the key strengths and weaknesses within the company, and describes
the opportunities and threats facing NIKE.
2.2.1 Strengths
a. Broad distribution network i.e. sells its products globally
b.It’s a worldwide brand leader.
c. Nike has a large market share.
d. Nike uses new technology to innovate products and to give them a competitive edge e.g. Nikes partnership
with Apple.
e. Offers wide variety of footwear products and allows customization as well
2.2.2 Weakness
a. The highly centralized management hierarchy (the McLemores) and lack of managerial backup may impede
creativity and growth. Too few people hold too much knowledge.
b. NIKE’s current facilities are crowded. There is little room for additional employees or new equipment.
c. A challenge to find employees who possess the necessary skills and customer-centric attitude.

12. 2.2.3 Opportunities
a. Government funding towards sport and large programs set up by leading companies
b. Growing opportunities in India- increase in India’s urban middleclass; Indian government has removed
restrictions on foreign direct investment, meaning Nike can have full ownership of its Indian operations.
c. Increase in health awareness with regards to weight loss and benefiting those with problems such as high
blood pressure and cancer.
d.General growth of the global footwear market- By 2016 its predicted to increase by 28.9% since 2011.
2.2.4 Threats
a. Reengineering, right-sizing, and outsourcing trends in management may alter traditional channel relationships
with brokers, dealers, and distributors or eliminate them altogether.
b. Competition increasing day by day.
c. Natural, economic and political situation will not remain favorable always.
2.3 Competition
Sports giant Nike recorded a strong 2013, with its stock price rising nearly 60% over the year. The surge in
stock price was driven by strong performances across all divisions, product types and geographies. In Q2 2014,
revenues from North America grew by 9%, while Central & Eastern Europe and Western Europe saw revenue
growth by 14% each. We expect the strong growth to continue in 2014, on the back of strong future orders
growth and the presence of big sporting events such as the upcoming FIFA World Cup. Future orders growth at
26% in Western Europe was especially strong during the period. However, the region has traditionally been a
strong hold of competitors such as Adidas and Puma. After losing market share in the region to Nike, these
companies have amplified their marketing and demand creation activities to recover lost ground.

13. 2.4 Product Offering
NIKE, Inc. (NIKE), incorporated on September 8, 1969, is engaged in the design, development and worldwide
marketing and selling of footwear, apparel, equipment, accessories and services. NIKE is a seller of athletic
footwear and athletic apparel worldwide.
The Company focuses its product offerings in seven key categories: Running, Basketball, Football (Soccer),
Men's Training, Women's Training, NIKE Sportswear (its sports-inspired products) and Action Sports.
It also markets products designed for kids, as well as for other athletic and recreational uses, such as baseball,
cricket, golf, lacrosse, outdoor activities, football (American), tennis, volleyball, walking and wrestling. NIKE's
athletic footwear products are designed primarily for specific athletic use.
2.5 Key to Success
Nike one of the top listed shoe company in the current world begun their business in 1962. The company
focused on high-quality running shoes designed especially for the athletes. They have been able to establish a
huge customer market all over the world through their quality products and strong marketing concepts.
The key factor for Nike is that we have been able to create strong brand preferences among the customers. Nike
created their brand image into consumers mind. The company’s commitments to designing innovative footwear
for serious athletes help it build a cult following among consumers.
Another important reason for Nike’s success is that we read the consumers mind perfectly. Nike does not sell
“Nike air max” shoes, it sold a way of life, which is key to its success. This flag is the incentive for the people,
and the philosophy behind the energy and determination, is that everyone concerned, whether you are not
athletes. Nike uses a motivational type of language to inspire consumers.

14. 2.6 Critical Issues
As a start-up business, Nike is still in the early stages. The critical issues are for Nike to:
*Establish it’s self as the premier Shoe Company.
*Pursue controlled growth that dictates that payroll expenses will never exceed the revenue base. This will help
protect against recessions.
*Constantly monitor customer satisfaction, ensuring that the growth strategy will never compromise service and
satisfaction levels.
3.0 Marketing Strategy
The marketing strategy of Nike rested completely upon a product image which is favorable and allowed it to
develop into one of the best multinational companies after a while.
Nike’s favorable product icon has been kept optimistic because of the strong relation with the company logo
that is quite distinct and unique as well as the product slogan that has been utilized in commercials for a long
period of time. The marketing strategy of Nike invests a lot in commercials and product promotion.
3.1 Mission
Nike’s mission statement is “To bring inspiration and innovation to every athlete* in the world.”
The legendary University of Oregon track and field coach and Nike co-founder Bill Bowerman said, “If you
have a body, you are an athlete.”
Bowerman was a teacher who showed athletes the secrets to achievement. Nike invites you to experience our
innovative and inspiring products.

15. 3.2 Marketing Objectives
Nike’s marketing objective is to employ a range of marketing communication tactics that can cater to the
organization’s target market, who have different nationalities, genders, cultures, and ages.
Nike continuously aims to apply marketing tactics that are appropriate with the people who reside in these
continents or nations.
Nike applies an effective marketing communication and at the same time still relatively manages to be cost-
effective in terms of its marketing programs.
3.3 Financial Objectives
*Use Financial Resources Wisely
*Increase Revenue Growth Rate
*Build Accurate Financial Models
*Set Numerical Productivity Targets
*Include All Marketing Costs
*Create Realistic Financial Projections
3.4 Target Markets
With a wide line of products covering many different sports, Nike’s Target market has a very large range. The
company aims to meet the needs of people of all ages in the varying categories, and sticks by it’s mission
statement, “To bring inspiration and innovation to every athlete in the world. If you have a body, you are an
athlete.”

16. 3.5 Positioning
For Nike to be the world's leading seller of athletic footwear, they must have a pretty good position in the
market of shoes. Over half of Nike's sales are made through their shoe products, especially their athletic
footwear. They have shoes for practically every activity from aquatics to auto racing. As a company with such
versatility, it is no wonder that they are dominating the industry worldwide. It is kind of hard for consumers to
avoid Nike products when shopping for athletic shoes. They are a household name and everyone knows the
famous Nike symbol, the swoosh. Nike holds a strong position in this market because it always seems to be
ahead in the technology and style of their shoes when compared to competitors. Nike's prices are also
competitive as well. They have the high-end, high-tech shoes that people are looking to pay a little more money
for and then they have shoes such as Converse which start at $44.99. Nike provides obtainable products for
people on multiple levels of income so virtually anyone can get their hands on a Nike product. All this together
is what allows Nike to be in the firm and stable position they have in the athletic shoe market and will continue
to do so as long as they continue to do what they are doing as a company.
3.6 Strategies
*The mission is to exceed from all leading athletic companies and make it widely available across the globe.
*Maintain the leading position in the market by supplying quality products and innovative designs and attracts
maximum number of customer belonging to all ages and lifestyle.
*Guarantee the availability of all kinds of products at all leading stores and markets.
*To meet the challenging demands of customers.
*Value the labors, stake holders and other communities in the implementation of every strategy and decision.
*Encourage the environment friendly and pollution free development by reducing the emission and waste
minimizing activities with the help of various projects sponsored by WWF and other organizations.
*The company will now focus on providing quality products on low prices to have greater share in the market.

17. 3.7 Marketing Mix
Nike marketing mix is comprised of the following approaches to pricing, distribution of product, advertising
and promotion, placement and customer service.
4 P of marketing mix and their branches
*Product
Product verity
Quality
Design
Features
Brand name
Packaging
Sizes
Services
Warranties
Returns
*Price
List price
Discounts
Allowances
Payment period
Credit terms
*Promotion
Sales promotion
Advertising
Sales force
Public relations
Direct marketing
*Place
Channels
Coverage
Assortments
Locations
Inventory
Transport

18. Product:
designed for sports and also for every day usage. But the company now produces other
equipment specialized for sport activities such as sport balls and eyewear.
Price:
has designed its pricing structure in a way to be competitive with other
shoe sellers like Converse and Adidas.
apparel), type and size (for example a good pair of shoes would cost from 70 to 150
dollars).
when the company was born its aim was to break German domination in sports shoe
industry.
Placement:
stores and it is also sold in malls and department stores.
fact Nike’s mission is to make its product available all over the world.
sellers, but production units and customers services.
Promotion:
to promote their brand.
-known athletes have worked for the advertisement (for example Ronaldo).
helped WWF to reduce pollution).
makes the company recognizable all over the globe.

19. 3.8 Marketing Research
Nike is engaged in the design, development and worldwide marketing of footwear, apparel, equipment and
accessory products. It sells its products to approximately 18,000 retail accounts in the United States and through
a mix of independent distributors, licensees and subsidiaries in nearly 200 countries. Nike's athletic footwear
products are designed for specific athletic use, although some of its products are worn for casual or leisure
purposes. The company creates designs for men, women and children. Running, basketball, children's, cross-
training and women's shoes are the Company's top-selling product categories. Nike also markets shoes
designed for outdoor activities, tennis, golf, soccer, baseball, football, bicycling, volleyball, wrestling,
cheerleading, aquatic activities, hiking and other athletic and recreational uses. It sells active sports apparel that
covers most of these categories, athletically inspired lifestyle apparel and others.

20. 4.0 Financials
This section will offer the financial overview of Nike related to marketing activities. Nike will address break-
even analysis, sales forecast, expense forecast, and indicate how these activities link to the marketing strategy.
4.1 Break-evenanalysis
The break-even analysis indicate that $15520 will be required in monthly sales revenue to reach the break-even
point.
$12000
$8000
$4000
$0
($4000)
($8000)
($12000)
($16000)
$0 $5024 $10050 $15074 $20100 $25124
Monthly break-even point
Break-even Analysis
Break-even point = where line intersects with 0

21. [TABLE 4.1] Break-evenAnalysis
Break-even Analysis
Monthly Units Break-even $124
Monthly Sales Break-even $15520
Assumptions
Average per-unit Revenue $251.24
Average per-unit Variable cost$45.22
Estimated Monthly Fixed cost $12726
4.2 Sales Forecast
Nike feels that the sales forecast figures are conservative. It will steadily increase sales as the advertising
budgets allows. Although the target market forecast (Table 2.1) listed all of the potential customers divided into
two categories: Recreational and Competitive. Reducing the number of categories allows the reader to quickly
discern information, making the chart more functional.

22. Monthly sales Forecast
[Table 4.2] Sales Forecast
Sales Forecast
Sales 2014 2015 2016
Recreational $911480 $1197754 $1375530
Competitive $145836 $191640 $220084
Total sales $1057316 $1389394 $1595614
Direct cost of sales 2014 2015 2016
Recreational $164066 $215596 $247596
Competitive $26250 $34496 $39616
Subtotal Cost of Sales $190316 $250092 $287210

23. 4.3 Expense Forecast
The expense forecast will be used as a tool to keep the department on target and provide indicators when
corrections/modifications are needed for the proper implementation of the marketing plan.
[Table 4.3] MarketingExpense Budget
Marketing Expense Budget 2014 2015 2016
Website $50000 $16000 $20000
Advertisements $16100 $30000 $40000
PrintedMaterial $3450 $4000 $6000
Total salesand
MarketingExpense $69550 $50000 $66000
Percentof Sales 6.58% 3.60% 4.14%
ContributionMargin $797450 $1089304 $1242404
ContributionMargin/Sales 75.42% 78.40% 77.86%

24. 5.0 Controls
The purpose of Nike marketing plan is to serve as a guide for the organization. The following areas will be
monitored to performance:
#Revenue: monthly and annual
#Expenses: monthly and annual
#Customer satisfaction
#New product development
5.1 Implementation
The following milestones identify the key marketing programs. It is important to accomplish each one on time
and on budget.
Milestones
[Table 5.1] milestones
Milestones Plan
Milestones Start Date End Date Budget manager Deportment
Marketing plan completion 1/1/14 2/1/14 $ 0 Skim marketing
Web site completion 1/1/14 3/15/14 $40800 outside firm marketing
Advertising campaign# 1 1/1/14 6/30/14 $7000 Skim marketing
Advertising campaign# 2 3/1/10 12/30/14 $9100 Skim marketing
Development of the Retail channel 1/1/14 11/30/14 $0 Skim marketing
Totals $56900

25. 5.2 Marketing Organization
Skim Mark will be responsible for marketing activities.
5.3 Contingency Planning
Difficulties and Risks
#Problems generating visibility, a function of being an internet-based start-up organization.
#An entry into the market by an already established market competitor.
Worst Case Risks Include
#Determining that the business cannot support it’s self on an ongoing basis.
#Having to liquidate equipment or intellectual capital to cover liabilities.