Nike Marketing Plan

Nike

Marketing Plan

By:

Marketing Management - MM522

March 2004

Outline

I. Executive Summary

II. Table of Contents

III. Company History

IV. Marcoenvironment

a. Demographic

b. Economic

c. Social

d. Political

e. Technological

f. Ecological

V. Competitive Advantage

a. Industry Environment

b. Operating Environment

VI. Four P's of Marketing

a. Product

b. Place

c. Promotion

d. Price

VII. Core Competencies

a. Strengths

b. Weaknesses

c. Opportunities

d. Threats

VIII. Business Life Cycle

IX. Marketing Goals

X. Strategies and Implementation

XI. Conclusions and Recommendations

Executive Summary

Nike is a worldwide powerhouse in the athletic shoe and apparel industry. Nike's short, but yet effective mission statement is characteristic of such success. Nike paints a picture of their company for the world to see their, "inspiration and innovation", as well as their "commitment to serve everyone in the world". Through a continuous effort by Nike to remain at the apex of technology and innovation, they are the market leader by a significant margin. As a result of Nike's pursuit of selling a broad spectrum of products, they possess a formidable competitive advantage.

Nike exhibits significant strength in market share, brand image and recognition, as well as research and development. Through the use of intuition and analysis I have concluded that opportunities exist for Nike to increase market share. Specifically, I recommend horizontal integration, global expansion, European concentration, and segmented marketing to target various generational demographical opportunities. The focus will lie using various methods of segmentation to develop the targeted markets and increase market share.

Table of Contents

Executive Summary..................................................................................3

Company History.....................................................................................5

Macoenvironment....................................................................................7

Competitive Advantage............................................................................11

Industry Environment..............................................................................12

Operating Environment.............................................................................14

Four P's of Marketing..............................................................................16

Core Competencies.................................................................................20

SWOT Analysis.....................................................................................20

Business Life Cycle.................................................................................25

Marketing Goals.....................................................................................27

Strategies and Implementation.....................................................................27

Conclusion...........................................................................................32

References............................................................................................33

Company History

The Nike athletic machine began as a small distributing outfit located in the trunk of Phil Knight's car. From these rather inauspicious beginnings, Knight's brainchild grew to become the shoe and athletic company that would come to define many aspects of popular culture.

Nike emanated from two sources, the first being Bill Bowerman's quest for lighter, more durable racing shoes for his University of Oregon runners. And the second being, Knight's search for a way to make a living without having to give up his love of athletics. Bowerman coached track at the University of Oregon where Phil Knight ran in 1959. Bowerman's desire for better quality running shoes clearly influenced Knight in his search for a marketing strategy. Between them, the seed of the most influential sporting company grew.

While getting his MBA at Stanford in the early '60s, Knight took a class whose semester-long project was to devise a small business, including a marketing plan. Synthesizing Bowerman's attention to quality running shoes and the burgeoning opinion that high-quality/low cost products could be produced in Japan and shipped to the U.S. for distribution, Knight found his market niche. He just didn't know how influential this project would turn out to be.

After earning his MBA in 1963, Phil Knight began a world tour that included a stop in Japan. Seemingly on a whim, Knight scheduled an interview with a Japanese running shoe manufacturer named Onituska Tiger. He presented himself as the representative of an American distributor interested in selling Tiger shoes to American runners. He then, in a moments notice,