Nike is an American corporation that designs, develops, and markets athletic footwear, apparel, equipment, and accessories. It was founded in 1964 and is headquartered near Portland, Oregon. Philip Knight co-founded the company and served as chairman, while Mark Parker currently serves as CEO. Nike utilizes various marketing strategies like celebrity endorsements and sponsorships to promote its products and maintains a strong brand image. However, these strategies also carry risks if market and consumer trends change rapidly. Nike must continue innovating and adapting to stay ahead of competitors in the sportswear industry.

2. BACKGROUND
• Nike is an American Multinational
Corporation that is engaged in the design,
development, manufacturing and worldwide
marketing and sales of footwear, apparel,
equipment, accessories and services.
• The company was founded on January 25, 1964,
as Blue Ribbon Sports, by Bill Bowerman and Phil
Knight, and officially became Nike, Inc. on May 30,
1971.

3. Philip Hampson "Phil" Knight (born February 24, 1938)
is an American business magnate and philanthropist. He
is the co-founder and chairman emeritus of Nike Inc., and
previously served as chairman and CEO of the company.
Mark Parker (born 21 October 1955 in Poughkeepsie,
New York) is the Chief Executive Officer of Nike, Inc., he
was named the third CEO of the company in 2006.

4. • The company takes its name from ”Nike”, the Greek goddess of
victory.
• The company is headquartered near Beaverton, Oregon, in the
Portland metropolitan area.
• Nike is the world leader in the manufacturing of sportswear and
gear with more than 47 market shares across the global (Nike.com,
2011).
HEADQUARTER

6. Nike office in North
America
 Nike has contracted with more
than 700 shops around the world
and has offices located in 45
countries outside the United
States.
 Most of the factories are
located in Asia, including
Indonesia, China, Taiwan, India,
Thailand, Vietnam, Pakistan,
Philippines, and Malaysia.

8. BRAND PORTFOLIO
. NIKE Golf, designs and markets golf equipment,
apparel, balls, footwear, bags and accessories
worldwide.
Converse Inc., offers a diverse portfolio including
premium lifestyle men’s and women’s footwear and
apparel.
Hurley International LLC., designs and distributes
a line of action sports apparel for surfing,
skateboarding and snowboarding, and youth
lifestyle apparel and footwear.
Cole Haan, designs and distributes dress and
casual footwear, apparel, and accessories for men
and women.
Umbro. Ltd., designs, distributes, and licenses
athletic and casual footwear, apparel and equipment
primarily for the sport of football.

9. Various Products Of Nike

10. Nike Categories Structure
Footwear
Apparel
Equipments
Running
Training
Basketball
Soccer
Urban wear
Shirts
Bags
Accessories
Running Shorts
Baseball Caps
Sports Ball
Eyewear
Golf clubs
Basketball bats
Gloves

12. THE INFLUENCE PYRAMID: REACHING THE RIGHT
CONSUMERS
What’s this
now????????

13. “The Influence Pyramid is a conceptual
framework for building outreach strategies to
communities online and off. It helps you define a
methodology and an architecture to target your
content and media efforts.”

14. Did u get to know something
from the definition of pyramid
influence????????
Nike's excellence in 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.

15. Marketing Strategies
Marketing
strategies
Market
Segmentation
Targeting
Strategies
Styling of the
product
Prising
strategies

16. STRENGTS
WEAKNES
S
OPPORTUNI
TIES
THREATS
World’s no. 1
shoemaker
 “Make to
Stock” POLICY
Strong R&D
Number one sports
brand in the World
Dependent upon its
share of the footwear
market
Retail sector
Violated overtime laws
Nike is a fashion
brand
Producing
sportswear
product from
manufacturing
waste.
Emphasis on
corporate
marketing
strategy
Competitive
Market
Retail sector
becoming price
sensitive
Negative publicity
feedback
SWOT ANALYSIS

20. PROS OF NIKE'S CORE MARKETING STRATEGY
•Nike puts heavy 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.

21. PROS
Distribution
Advertising
and
Promotion
Price
Market
Segmentatio
and Target

23. Distribution
The delivery of the right products and at the right time to
the customers does 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 .
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 .
 This program represents the first time a company has
offered mass footwear through the Internet and provides
competitive advantages to Nike.

24. 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).
•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.

25. Price
Nike targets on the consumers who care more about the utility and
quality of the products rather than the price.
Nike uses 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).

26. 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.

27. CONS OF NIKE'S CORE MARKETING STRATEGY
Although Nike's marketing strategies 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.

28. CONS
Costly
Influences of
spokesperso
Intense
Competitors

29. 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. 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 labour 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.
Furthermore, Nike has been using child labour in the production of its
soccer balls in Pakistan.

30. Influences of spokesperson
One of the Nike's core marketing strategies depends 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.

31. 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.

32. 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.

33. RISKS
Changes in
Market Trends,
Consumer
and Preferences
Fast changing
Nike's products
Expanding to
Overseas

34. 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 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.

35. 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 should change its marketing strategies and products
design to become more fashion and focus on the youth consumers.
Nike should analyse the market and customers' preference as well
as customers' buying behaviour 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.

36. 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 is 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.

38. PRODUCT CUSTOMISATION

39. INTRODUCING NEW PRODUCT LINES

40. EXPAND ITS MARKETING

41. EMERGING MARKETS

42. From the above analysis, we had understanding about the pros, cons
and risks of Nike's core marketing strategies with relevant marketing
theories.
We found out 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 behaviours 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 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.

43. 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.