Market entry/grow opportunity for Nike in Bulgaria
Student registration No: 20019402
Lecturer:Dr. V. Blagoev
Our approach to developing a market-entry strategy follows a structured process, based on in-depth understanding of all aspects that feed into a commercial launch.
A comprehensive analysis, using market data and market research, allows us to assess all areas affecting Nike’s strategic direction:
– Current market situation: detailed consumer and business market segmentation and analysis of market drivers will be undertaken to identify the most valuable target segments and underlying reasons for market entry/opportunity. Specific target areas are evaluated to provide key inputs: product, pricing, retail structures, sales and distribution planning
– A review of competition: extensive competitive profiling in areas such as positioning, brand, target segments, value proposition, market offer, pricing, customer care, sales & distribution, enable assessment of competitors’ strengths and weaknesses
– Threats and opportunity analysis: analysis of relevant threats and opportunities that the product might face. An internal SWOT highlight areas of valid advantages and disadvantages, providing input to market entry positioning and value proposition
– Objectives and issues: description of limitations or possibilities within the current plan that affect objectives to attain or issues that might affect market and segment growth
– Identification of marketing strategy: outline of how Nike is to create customer value and the specific of target markets. It is also referred to specific strategies of the marketing mix (4Ps) and how they relate to threats and opportunities.
– Action programs: how marketing strategies will be turned into actions
– Budgets: shows expected revenue, expected marketing cost and ROI
Conclusions from the market analysis together with internal SWOT and identified strategic risk areas form the basis for describing the market entry/opportunity.
1. Executive Summary
2. Current marketing situation
3. Threats and opportunities analysis
4. Objectives and issues
5. Marketing strategy
I. Current Market Situation
1 Market description
Bulgaria isn't renowned for specialist sports stores. The news for sports goods businesses is generally positive, given Bulgaria's negative expectations for rapid economic development being one of the poorest members of the EU. Meanwhile, some analysts expect sports clothing and shoes to climb in demand. "The global economic crisis has not yet significantly affected the sport goods market because when people cannot afford to buy apartments they prefer buying goods such as trainers," said Kr Tsonov, (Director of Sport Depot). Tsonov said annual turnover of branded sport goods in Bulgaria last year was approximately Euros63 million, relatively small for a population of 7.5 million people. The figure doesn't include significant equipment imports from China and Thailand. Germany's Adidas has some 40% of the market share, with revenues of about Euros 39 million annually. The US Nike and German Puma brands each earn Euros 19 and 13 million over the same period. The Bulgarian sport goods market is still developing. Branded sport clothes and shoes are generally favored sales compared to specialized sport equipment, including that for extreme sports. But the current small volume of sales is the main reason why large international sports chains have yet to enter the market. Currently, specialized sport goods are offered by a large number of retailers, but most dealers have just one store. In Sofia, there are about 20 such stores and countrywide there are around 70. But mass...