Detailed case study on the Marketing Strategy of Nike with a complete explanation of its 4Ps.

Nike is the world’s leading manufacturing giant of athletics shoes, apparel, sports equipment, and other sports-related services. According to investing.com, Nike holds a whooping 38.68% of the total market share making it the largest brand in the world. So, let us learn how the company used a variety of different marketing strategies to accomplish its leading position.

In this blog, you will understand all of its Marketing Strategies with the 4 p’s i.e. (product, price, place, and promotion). But first, let’s learn more about Nike’s history as a company.

About Nike 

Nike is an American Multinational Company, which is famous for its production of athletic shoes for a long time. But as time has passed they not only manufacture footwear but also apparel, accessories, and equipment which are sold all over the world. 

It was established in 1964 when it was named Blue Ribbon Sports. It officially became Nike in 1971 inspired by the Greek goddess of victory. Its headquarters is near Beaverton, Oregon in the Portland metropolitan area in the US. Nike has 700+ shops worldwide. In the US Fortune 500 list of companies, Nike ranked at number 85 in 2020.

Nike came to India in 1996 and became popular in 2004 by successfully launching brands such as Nike+, Nike Pro, Jordan, Nike Blazers, and many other subsidiaries. Currently, Nike ranks in the 85th position in the Fortune 500 list of companies and has employed over 76,000 people in its business worldwide.

Current News About the Brand Nike

• 14 November,2022: Nike to open its own virtual sneaker store and trading platform
• 21 December,2022: Nike reports robust sales amid sustained inventory pileups
• Global sales rose 17 percent to US$13.3 billion in the quarter that ended Nov 30, surpassing the average estimate of US$12.6 billion 
• 20 February 2023: Vietnam shoemaker for Nike, Adidas to cut 6,000 jobs
• One of Vietnam’s largest shoe manufacturers for major brands such as Nike and Adidas will cut thousands of workers at the end of the month due to a slump in orders, according to local authorities.
• 19 May,2023: Nike removes Ja Morant signature shoe from site, app
• 4 July 2023: The sneaker bubble is bursting around Nike

User Persona

Now that we know the company, let us learn the Marketing Strategies of Nike.

Marketing strategies of Nike

In the current competitive landscape, Nike has been able to differentiate itself, compared to its competitors, and has become the global leader in the athletic footwear/apparel industry. The key to Nike’s success has been its excellent marketing strategies that allow the company to sell a massive quantity of its innovative products. Nike not only produces a wide range of products but also makes sure to maintain the mark of quality.

Nike’s marketing strategy isn’t something difficult to understand as its products are strategically displayed aiming to connect through various ad campaigns stirring the emotions of their target audience.

To further understand the marketing strategy of Nike, let us take a look at how the company uses the concept of “marketing mix” as a tool to promote and market their products to their targeted audience.

Product Marketing

The company designs different products for each kind of sport which makes its products comfortable for athletes. Nike’s infamous logo, the swoosh which attracts the eye of customers, is related to athletes themselves. Nike has produced different shoes for different purposes like running, golf, football, cricket, skateboarding, tennis, cycling, and other sports. They also sell casual footwear for non-athletes in vibrant colors which attracts youngsters. They manufacture different styles of sneakers for men, women, and kids. The most famous products of Nike are:

The Nike Cortez – The retro-looking natural fit that was originally designed for running.

Nike Air Max – The crown jewel of Nike’s sneaker collection

Nike Blazer – Casual cool-looking sneakers also used for skateboarding. Designed to make a big swoosh.

Nike Air Force 1 – The  Most iconic basketball sneaker which was not only popular as a casual streetwear shoe but also a sports shoe.

Nike Air Jordan – Last but not least, the most iconic streetwear sneaker that became popular with Michael Jordan’s success on the basketball court.

 

Nike has different products for men, women, and kids. They also make some unisex products for their customers. Pricing is one of the important factors of the marketing mix and having an accurate pricing mix can help strongly in customer retention.

Price Marketing 

Nike uses value-based pricing and premium-based pricing strategies for their products. Value-based pricing means the company considers the current market price while setting the prices of products. Before setting up the prices, they measure what overall customers are willing to pay for a product. This value-based price strategy helps Nike to increase its profit over time.

Premium-based pricing means pricing more high-quality products than the value of competing products. Nike sets premium prices for its high-quality products. By gradually increasing prices the company enjoys higher sales and revenues.

From time to time Nike has offered discounts on all its products like “Easter sales” on its online website and stores. Which helps them to attract new customers and retain the existing ones. They are also given the option to sign in and be the first ones to get any new arrivals. Making your products available for your customers at all times is very crucial and that is where a company’s strategy comes in.

Place Marketing

Nike has 1000+ shops all over the world and offices located in 45 countries outside the US. Most of the Nike products are sold in retail shops as many customers prefer to physically select the products by trying on sportswear. Retail stores are easily available in every city and it is convenient for customers to find Nike products.

The company has its outlet named Niketown. These are the big stores occupying 4 floors with premium experience with a variety of services. Niketown stores are fancy stores where new and emerging products are sold. They have a customization booth, service, and professional zone where you can get advice for the right product.

The customer’s shopping experience is unique and is valued. Nike products are also sold through their Online Nike store and also through other online stores like Amazon, Flipkart, and Myntra. The more you promote your product the more your sales increase..

Promotion Marketing

Nike’s main source of promotion is advertisement and sponsorships. The company does advertisements involving high-profile celebrities and athletes of different countries.

Some celebrities who promote Nike’s products are Serena Williams, Christiano Ronaldo, Mo Farah, Kunal Rajput, Rafael Nadal, and LeBron James. It also Sponsors sports teams like cricket, NFL, and NBA.

The company does direct marketing by personal communication with organizations, schools, colleges, and local sports teams. They also give time-to-time discounts and great offers to their customers which comes under sales promotion tactics. They give financial support to the NGOs to make public relations strong and able to promote their products through it. Nike’s target audience is fitness-centric, elite-class, and sports-enthusiastic people especially youngsters. 

As many youngsters are on social media, Nike also promotes its products through social media by connecting with millions of people and interacting with them through  Instagram, Twitter, Facebook, and YouTube.

Nike’s ” Just Do It ” campaign launched in 1988 motivates all people to do their job efficiently. To date, this slogan is a trademark of Nike. The company’s Latest hashtag #YouCantStopUs for their new campaign tells us that every sports field is equal which has gone viral on social media. Nike does such inspiring campaigns of different themes from time to time and gains the emotional trust of their customer. Nike does such inspiring campaigns of different themes from time to time and gains the emotional trust of their customer.

Let’s take a look at one of the ad campaigns launched by Nike, that gained a lot of eyeballs, The How We Do campaign aimed at aiding youth in overcoming barriers to sports participation and promoting the idea that sports should conform to an individual’s needs, rather than the other way around. Check it out here-

Nike in the sports area should diversify and use different kinds of clothing material rather than dry fits. But with several types of camping and advertisements placed by the company worldwide, they are on a great path.

Also, it would be great if they were able to market their product by using the current scenarios and famous incidents taking place all over the world and specifically in countries like India advantage of various famous incidents taking place their products making memes on social media is by far the best way of marketing products.

New Things Tried by Nike in Digital Marketing 

The world-famous sportswear brand Nike is currently at the peak of its marketing strategy. Here are some of the digital marketing strategies of the company.

1. HOW WE DO AD: In this ad, Nike’s advertising strategy focuses on helping young people overcome obstacles to participating in sports, showing that you don’t have to fit into sports; rather, sports should fit you.
2. THE WONDER WOMAN OF VOGUE SHORT FILM: The company has collaborated with a transgender Vogue artist and ballroom dancer Leiomy Moldonado for this short film to promote the #BeTrue collection and also to celebrate Pride Month. This film helps the company to promote themselves as well as give out a social message. The clip includes narration by artist Precious Angel Ramirez.
3. EQUALITY: In 2017, Nike launched a 90-second spot from Wieden + Kennedy Portland. The ad encourages athletes to respect and be fair to each other on and off the field.

Competitors List

1. ADIDAS formerly known as Dassler Brother Shoes is the designer, manufacturer, and marketer of shoes, clothing, and accessories.

2. REEBOK is another competitor of Nike Inc. Reebok is a footwear and apparel company that designs, manufactures, and distributes CrossFit, fitness, running footwear, and clothing.

3. PUMA is a German multinational brand that designs and manufactures a variety of athletic and casual footwear, apparel, and accessories. Puma offers many sports-inspired products like training and fitness, golf, basketball, football, and motorsports.

4. UNDER ARMOUR was founded in 1996 by Kevin Plank headquartered in Baltimore, Maryland, United States. Under Armour manufactures casual and sports footwear and apparel.

5. NEW BALANCE ATHLETICS Inc. also New Balance was founded in 1906 by William J. Riley. New Balance is a Multinational Corporation headquartered in Boston, Massachusetts, United States.

Comeback From Losses

Nike’s vision statement says, “To bring inspiration and innovation to every athlete in the world.”

Nike’s mission statement says, “Our mission is what drives us to do everything possible to expand human potential. We do that by creating groundbreaking sports innovations, by making our products more sustainable, by building a creative and diverse global team and by making a positive impact in communities where we live and work.”                                                                               

According to a news report of 26 June 2020, Nike CEO John Donahoe announced in a company-wide email on Thursday that the brand will soon be “forced to make some difficult choices” that will “likely result in a net reduction of jobs.”

The email, viewed by Complex, comes after Nike posted a net loss of $790 million in its latest quarterly earnings report on the same day. The company attributed the loss in part to the strain COVID-19 placed on its business globally.

In a statement provided to Complex, Nike underlined that the anticipated job cuts are not a result of the loss it posted this week. The brand’s full statement appears below:

“Consumer Direct Acceleration is the next digitally empowered phase of our strategy. We are building a flatter, nimbler company and transforming Nike faster to define the marketplace of the future. We are shifting resources and creating capacity to reinvest in our highest potential areas, and we anticipate our realignment will likely result in a net loss of jobs. Reductions are not being done for cost savings. Any savings will be reinvested into our priorities.

Conclusion

These are the complete 4 Ps marketing mix of Nike. It surely is a leading brand of sportswear. The company uses a different promotion strategy than its competitors to make unique bonds with its customers. Its products will always have a premium value which means its marketing mix makes sure that the business will thrive.

The company’s marketing efforts are largely focused on urban areas with high markets which leads them to earn more. Using a marketing mix the company can deliver according to customer’s choice, which leads them to see greater results and become more sustainable and agile.

Wasn’t it interesting to know Nike’s marketing mix and different marketing strategies? Learn how to market your brand online using interesting digital marketing techniques, check our website to learn more about it. Also, you can check out Free Digital Marketing Masterclass by IIDE to understand what digital marketing is all about.

Thank you for reading the blog. We hope that you came to know something new about the Nike 4 Ps Marketing Mix from this blog. Let us know your thoughts in the comments below. If you like our blog then do share it with your family and friends and explore more of our blogs.