Nike, Inc. is a global organization which manufactures, and sells athletic footwear, apparel and other products to consumers around the world, including men, women, and children. Nike is synonymous with its very recognizable symbol, the swoosh, which is stamped on its products sold worldwide, accompanied by its primary slogan of “Just Do It.” The company has been in existence since 1964 and was originally known as Blue Ribbon Sports, changing its name to Nike, Inc. in 1971 (O’Reilly). The organization has been highly successful in its marketing campaigns throughout its history and has attracted a large number of athletes as spokespersons for the brand, such as Michael Jordan and LeBron James, enabling them to market and sell a variety of lines of shoes and clothing to its loyal customer base.
Nike, Inc. is headquartered in Beaverton, Oregon and spent approximately $3.3 billion on its marketing strategy in 2015, utilizing this “demand creation” approach to attract and retain consumers over the long term (Dunne). Nike employs individuals from a variety of specialty areas and operates with the intent to maintain a vast customer base from all corners of the world. Nike is also in a position to expand its growth, given its dominance in the market and in spite of some of its closest competitors, such as Under Armour.
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Strategic Objectives
Nike has established a variety of marketing objectives to accomplish its goals, including expanded partnerships with world-renowned celebrities to attract loyal followers who demand exclusivity. Furthermore, the company recognizes its mission to achieve greater sustainability and to strengthen its customer base. Via unique marketing campaigns, Nike thrives on creativity to ensure that it can continue to explore new markets and attract new customers to be loyal to the brand and its products moving forward.
SWOT Analysis
Strengths: Nike has a strong and recognizable brand around the world and has mastered the ability to market its vast array of products to attract loyal customers, using celebrities and exclusive product lines in a successful manner.
Weaknesses: Nike has struggled in recent years to maintain high revenues because a significant component of its market share is related to the sale of men’s footwear. As the competition increases, the company may become increasingly vulnerable within this platform.
Opportunities: Nike can continue to expand its product development to attract customers with disabilities and with products which are specifically designed for different types of sports to expand its customer base.
Threats: Nike has struggled in its efforts to maintain its market share in recent years with the emergence of strong competitors such as Under Armour and celebrity endorsements such as Steph Curry.
STP Analysis
Nike’s customer base continues to evolve in different ways. It reflects the desire to attract fans of its long-term celebrity endorsers as well as new athletes to the mix. In addition, Nike has the opportunity to improve its male customer base through increased advertising and promotion.
Nike can also attract new female customers and children through its specialized athletic shoe lines. Children and adults with disabilities, for example, may benefit from shoes designed for greater accessibility (Heasley). This also reflects the need to become more specialized to attract new sales and improve customer loyalty.
Marketing Mix
Products/Services Offered: Nike must expand its specialty lines to attract new customers, such as those with disabilities, to promote greater inclusion and to strengthen its overall brand image.
Price: Nike must explore the options available to manufacture its products in a sustainable manner and to be cognizant of its pricing strategy to make these products affordable for a larger customer base.
Place or Distribution: Nike must explore its retailer options and its online platforms to ensure that all customers have access to and can purchase their products with ease.
Promotion: Nike must examine its options in regards to marketing and continue its creative advertising campaigns for the foreseeable future.
