Researched Marketing Strategies of Nike with Complete Explanations for 4Ps

Nike is the leading brand of athletics shoes, apparel,  sports equipment, and sports-related services. It has a market share of $39.1 billion making it the largest brand in the world. So, let us learn how the company has used marketing strategies to accomplish its leading position.

In this blog, you will come to know about the Marketing Strategies of Nike with the 4 Ps strategy. But first, let’s learn more about Nike 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 where 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. The company has come far with its brand along with Nike+, Nike Pro, Jordan, Nike blazers, and many more subsidiaries. As of 2020, it employed 76,700 people worldwide. In 2020, the brand alone was valued in excess of $32 billion, making it the most valuable brand among sports businesses.

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 have knowledge about the company, let us learn the Marketing Strategies of Nike.

Marketing strategies of Nike

The concept of “marketing mix” is a tool used by businesses to promote and market their product. It is centered around the elements- product, price, place, and promotion. It thus holistically covers the major marketing strategies surrounding a business under the 4P’s.

Nike’s logo, the swoosh which attracts the eye of customers, is related to athletes themselves. 

Nike majorly produces sports-related items and equipment. Nike not only produces a wide range of products but also makes sure to maintain the mark of quality. The company designs different products for each kind of sport which makes its products comfortable for athletes. These are some of the examples of them:

It has a wide range of sports equipment and accessories like bags, backpacks, balls, headbands and caps, and many more. The company has also teamed up with Apple for Nike+ products to track runner’s performance through running watches.

Nike has produced different shoes for different purposes like running, golf, football, cricket, skateboarding, tennis, cycling, and other sports too. They also sell casual footwear for non-athletes in vibrant colors which attracts the youngsters. They manufacture different styles of sneakers according to men, women, and kids. The most famous shoes of Nike are :

•  The Nike Cortez – Retro-looking, the natural fit was originally designed for running.
•  The Nike Air Max   –  It is the jewel in Nike’s sneaker crown. The first visible air visible shoe.
• The Air Huarache – Mostly famous under the age of 18. Super lightweight, high-tech running shoe.
• The Nike Blazer – Casual cool-looking sneakers also used for skateboarding. Designed to make a big swoosh.
• The Nike Air Force 1 – Most iconic basketball sneaker. It is popular as a casual street shoe as well as a sports shoe.
• The Nike Air Jordan – The most iconic streetwear sneaker which is very comfortable.

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.

Let us now see Nike’s Price marketing strategy.

1. Nike Price Market strategy

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 its products like “Easter sales” on its online website and its 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. 

So, let us check out Nike’s place marketing strategy.

2. Nike Place Market strategy

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.

Let us now see Nike’s promotional marketing strategy.

3. Nike Promotion Market Strategy

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.

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-

The marketing strategy of Nike has been covered now let’s conclude this blog on the topics we have covered.

4. Better Way of Presenting It

Nike being in the sports area of wearing should diversify the area and also use different kinds of clothing material rather than dry fits. But with various kinds of camping and advertisements placed by the company all over the world, 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.

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