Principles of Marketing: Nike Inc

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Principles of MarketingNike, Inc11/25/2010|

Prepared by:
* Menino Pereira
* Karthik Gowda
* Shreyans Sethi

Prepared by:
* Menino Pereira
* Karthik Gowda
* Shreyans Sethi

* Nike’s mission statement is all about combining the love for sports with a mutinous and headstrong nature to think out of the box by means of innovation and inspiration (Katz 1994)

* Nike’s mission statement is all about combining the love for sports with a mutinous and headstrong nature to think out of the box by means of innovation and inspiration (Katz 1994)

Principles of Marketing
Principles of Marketing

TABLE OF CONTENTS

TABLE OF CONTENTS

INTRODUCTION3
The Story So Far3
MARKETING ORIENTATION3
Types of Orientation4
COMPETITIVE ADVANTAGE7
Porter’s five forces7
Porter’s Generic Strategies9
The MARKETING MIX11
Product11
The Ansoff Matrix13
BCG Matrix14
Product Life Cycle16
Price19
Nike’s pricing Strategies20
Price versus Promotion Matrix21
Price versus Quality Matrix22
Place (Distribution)23
Nike -Direct Marketing24
Nike - Indirect Marketing (Wholesalers & Retailers)25
Value added services – Intermediaries25
Distribution strategies25
Promotion26
Nike’s promotional strategies27
Communication Model28
SWOT ANALYSIS OF NIKE INCORPORATED30
Strengths:30
Strong Brand Image30
Supplier Diversity30
High Growth31
Weakness:31
Recent Setbacks31
Child Labour and Sweat Shops31
Opportunities:31
New Product Launches31
Growth of e-Retail Industry32
Threats:32
Increase in Counterfeit Products32
Increase in Wage Rates32
Intense Competition32
UNDERSTANDING AND SUSTAINING COMPETITION33
REFERENCES34

INTRODUCTION
Blessed from the mighty heavens by the Greek Goddess of Strength, Power and Victory read Nike; the brand has always captured one’s imagination and strengthened its position among the upper echelons of marketing icons. Nike’s marketing strategy draws your attention by interrupting you, attracting you, ensnaring you and finally and most importantly satisfying you. In a recent conference, Paul Knight , the charismatic founder and ex- CEO of Nike chose a divergent outlook to most other speakers on the subject of choosing Nike over competition. He asked people who run to rise from the comfort of their seats. He then asked those who run three or more times a week to keep standing. He looked on and `exquisitely announced –We are for you. “When you get up at 5 o’clock in the morning to go for a run, even if it’s cold and wet out, you go. And when you get to mile 4, we’re the one standing under the lamp post, out there in the cold and wet with you, cheering you on.  We’re the inner athlete.  We’re the inner champion.” “Just Do It is more than a tag line, it’s a motto.  It’s a cheer.  It’s a rallying cry” (Sinek 2010). A sublime demonstration which augments market segmentation, fortifies positioning, empowers brand building, and exemplifies relationship management in a snapshot, slowly and yet subtly hitting the sweet spot. The Story So Far

More than 25 years ago, Co-founder Bill Bowerman used a waffle iron to conjure up a new sole for a pair of running shoes. Nike hasn’t looked back since. Innovation has been the mainspring for a company exalting in its enduring success. With insufficient funds to indulge in advertising, Phil Knight and Bill Bowerman took to the streets, selling shoes at local athletic meets from the backs of their trucks. The word-of-foot gripped the sporting fraternity and marked the beginning of Nike’s success on track. Then came the late 80’s and with it the pain of losing out on sales to Reebok who introduced training shoes, tailor made for a growing breed – health conscious women. In a bid to regain market share, Nike played to their strength and countered punched with new models of shoes designed for various sports as per customer requirements. This was the...
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