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 Mix of Nike with the 4 Ps strategy. But first, let’s learn more about Nike as a company.
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.
Now that we have knowledge about the company, let us learn the Marketing Mix of Nike.
Marketing Mix 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.
Let us understand it better by looking at the marketing mix of Nike.
1. Nike Product Market Mix
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 according to 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 mix.
2. Nike Price Market Mix
Nike uses value-based pricing and premium-based pricing strategy 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 companies place strategy comes in.
So, let us check out Nike’s place marketing strategy.
3. Nike Place Market Mix
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, professionals zone where you can take advice for the right product. The customer’s shopping experience is made 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 mix.
4. Nike Promotion Market Mix
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 that promote Nike’s products are Serena Williams, Christiano Ronaldo, Mo Farah, Kunal Rajput, Rafael Nadal, and LeBron James. It also Sponsors the 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 which motivates all the 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.
The marketing mix of Nike has been covered now let’s conclude this blog on the topics we have covered.
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.
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