The purpose of this text is to give a comprehensive look over the past achievements of Nike Inc. The author is offering a brief history and is presenting, Nike Inc through the Marketing Mix of a company. All 4P’s Product, Price, Place and Promotion are presented and systematically defined and explained. Examples about the 4P’s are given and suggestions are made. Some opportunities that Nike must try to achieve and threats that the company has to overcome are described. In the conclusion the writer is presenting its own opinion about the future development of the company.
The story of Nike Company started in the year 1962 when an accounting student from Oregon University Phil Knight and middle-distance runner Bowerman started a “crazy” idea to import innovative sporty shoes from Japan into USA. The beginning was encouraging and in the year 1965 the first full-time-employee joined the company a middle-distance runner called Johnson. Following, in 1966 the first retail store opened its door under the name of Nike Inc. Starting with 500$ capital and a handshake , after 35 years Nike Company is the biggest sports shoe and sportswear company in the world.
Nike Inc is counting on the Marketing mix of the 4P’s to continue it’s growing pace and maximize profits. Although all 4P’s are important for the company, product and promotion are the areas where Nike is most striving to achieve.
Product is” anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need” .Nike Inc. fully comprehends the brilliance of the 4P’s and tries to follow strictly all points of the Marketing mix. The company offers great diversity of products to its customers. Starting from sport shoes, sportswear collections and finishing with equipment for practicing extreme sports. Every year Nike is offering to its customer’s new collections with big assortment of design, variety and features. Nike is future minded firm, but the company must consider designing new brands of shoes, clothing and specialized equipment to serve better the masses. Clothes for different gender, age, style and unusual sports are produced, but there should be greater variety of choice for the customers to choose from. Only by doing this Nike Company can count on customer loyalty. Designing products more economically is an option but quality must be mainta ined so that more people can afford buying Nike goods. Although, Nike is offering to its customers, products with good quality, diverse design, lasting warranties and big amount of features there are areas where Nike must consider improvement. The company brand name is well know all around the word, offering big diversity of products, innovative design, great amount of features, excellent quality, long lasting warranties and attractive packaging.
The formulation for price is” the sum of values that consumers are willing to exchange in order for the benefits of having and using a product or service”. Nike Inc. comprehends that price is the major factor in a deal or exchange of a product, so the company is moving its production in places where labour is cheap and low wages are paid. By decreasing the cost of production, Nike is allowing itself to reduce prices and to attract more new customers. Nowadays, Nike is lowering prices, so that customers from Asia and Africa can afford theirs products. The Company is also increasing production in Pakistan and India where the working hand is low-priced. Another beneficial step for Nike is if they start to offer home deliveries (like pizza’s companies. To increase sales Nike is offering family discounts, enhanced payment periods and excellent credit periods. Only by using the forces of globalization, Nike can secure safe future.
The definition for place is “All the company activities that make the product or service available to target...