(TIỂU LUẬN) FINAL ESSAY NIKE, INC course marketing management

TR¯àNG ĐẠI HÞC NGÂN HÀNG TP. HÞ CHÍ MINH
BÀI THI KT THC HịC PHắN
Mụn thi: MARKETING MANAGEMENT

Hò v tờn sinh viên: Đßng Minh Khang
MSSV: 050606180157

Lßp hßc ph¿n: MAG309_2111_H01_TA

THƠNG TIN BÀI THI
Bài thi có: (bằng số): &12& trang
(bằng chữ): &m°ái hai& trang

BÀI LÀM

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THE STATE BANK OF VIETNAM

MINISTRY OF EDUCATION AND TRAINING

BANKING UNIVERSITY OF HO CHI MINH CITY

FINAL ESSAY

NIKE, INC.
Course: Marketing Management

Student: Đßng Minh Khang
Student ID: 050606180157
Course ID: H01
Lecturer: Đinh Thu Quỳnh

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TABLE OF CONTENTS
1. COMPANY OVERVIEW ................................................................................. 2
1.1.

Nike Corporate Information:......................................................................... 2

1.2.

Nike Mission and Vision Statement ............................................................. 2

1.3.

Fiscal 2021 Income Statement Review ......................................................... 3

2. STP STRATEGY ............................................................................................... 4
2.1.

Market Segmentation .................................................................................... 4

2.2.

Market Target ................................................................................................ 5

2.3.

Market Positioning ........................................................................................ 5

3. COMPETITIVE ADVANTAGES ................................................................... 5
3.1.

Nike competitors ........................................................................................... 5

3.2.

Competitive advantages of Nike ................................................................... 6

4. MARKETING STRATEGY ............................................................................. 8
4.1.

Product – Product strategy ............................................................................ 8

4.2.

Price- Pricing Strategy .................................................................................. 9

4.3.

Place – Distribution Strategy ........................................................................ 9

4.4.

Promotion – Promotion Strategy ................................................................ 10

5. CONCLUSION ................................................................................................ 11
REFERENCES: ...................................................................................................... 12

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1. COMPANY OVERVIEW
1.1. Nike Corporate Information:
Nike is an American multinational corporation engaged in the design, development,
manufacturing, marketing, and sales of footwear, apparel, accessories, equipment and
related services sport.
About Nike (Wikipedia, 2022)
- Year of establishment: 1964

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- Formerly: Blue Ribbon Sports,

Founders: Bill Bowerman, Phil
Knight

Inc. (1964–1971)

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CEO: John Donahoe

- Type: Public

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Area served: Worldwide

- Industry: Apparel, Accessories,

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Headquarters: Beaverton, Oregon

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Employees: 75,400 (2021)

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Slogan: Just Do It

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Website: nike.com

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Traded symbol: NASDAQ: NKE

Sports equipment
- Products: Athletic footwear and
apperel; Athlectic and
recreational products; Soprts
equipment

In addition to its very own brand, Nike markets its merchandise below Nike
Pro, Nike+, Nike Golf, Nike Blazers, Air Jordan, Air Max and different
manufacturers and subsidiaries which include the Jordan manufacturers , Hurley Int
and Converse.
Nike sponsors many high-profile athletes and sports activities groups across
the world, with the fairly diagnosed emblems of (which represents the wing of the Greek goddess Nike)
1.2. Nike Mission and Vision Statement
Mission:
Nike mission statement is < To bring inspiration and innovation to every athlete in
the world.= This statement focusses at the have an impact on that Nike has withinside the
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sports activities sector. It mainly resounds the capacity of this corporation to stimulate and
flip athletes into their quality versions. In fact, it additionally tips that that is what athletes
who need to be take hold of need to appearance out for.
Vision:

Nike's vision statement is to While precisely crafted, this statement shows that the organization is no longer confining
itself to aggressive techniques in ensuring the provision of its customers with first-class
tournaments in the world. international scope of sport. Nike is now no longer accepting the
ordinary, instead, the organization is moving towards dynamic, simple but especially green
designs with beneficial effects for users.
Core Values:
Nike’s core values include connected, and distinctive.= These values define what Nike holds dear in its quest to
become the best there is.
1.3. Fiscal 2021 Income Statement Review (NIKE, 2022)
Revenue of NIKE, Inc. up 19 percent to $44.5 billion, up 17 percent on a currency-neutral
basis
• NIKE Brand revenue was $42.3 billion, up 17% on a currency neutral basis
• NIKE Direct sales of $16.4 billion, up 32% or 30% on a currency neutral basis, led
by 64% or 60% on a currency neutral basis
• Converse revenue was $2.2 billion, up 16% on a currency-neutral basis
Selling and administrative expense decreased 1 percent to $13.0 billion.
Demand creation expense was $3.1 billion, down 13 percent to prior year, due to lower
marketing and advertising expenses for our brand events and retail operations, as well as
lower sports marketing expenses as sporting events were postponed due to Covid-19.
The effective tax rate was 14 percent, compared to 12.1 percent for the same period last
year, due to decreased benefits from discrete items such as stock-based compensation.
Net income was $5.7 billion, and Diluted earnings per share was $3.56, up 123 percent.
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NIKE's strong results for this quarter and the full financial year demonstrate NIKE's
unique competitive advantage and deep connection with consumers around the world. The
Consumer Direct Acceleration Strategy became popular in the market. Driven by corporate
momentum, i continues to invest in its innovation and digital leadership to lay the
foundation for NIKE's long-term growth.
2. STP STRATEGY
2.1. Market Segmentation
Nike customer segmentation consists of four categories namely demographic, geographic,
psychographic, and behavioral market segments.
For the demographic segment, NIKE has included different age groups, genders and
based on the financial status of their target customers. NIKE has segregated their products
by different age groups, mainly 15-55 years old, and by gender. There are three types of
categories, men's products, women's products and finally children's products, which allows
customers to be better served and have a better shopping experience.
As for the geographical segment, NIKE has stores all over the world and they
understand that different countries have different cultures and lifestyle habits. NIKE has
launched different products in different countries to suit the needs of customers in the
region. For example, in winter, NIKE makes sports shoes and clothing that can withstand
the cold unlike in Singapore, where there is only one season, summer.
The psychological segmentation for NIKE is that they offer their customers a wide
range of products to suit their preferences and meet their standards. NIKE has a mission
statement their mission statement, they are doing their best to meet the needs of their customers. This
allows NIKE to find out what their individual customers like, as not all NIKE customers
like to play sports, so psychological segmentation gives Nike ideas for production. different
types of products for buyers based on their preferences.
Finally in the behavioral segment, Nike provides benefits to customers as they
provide an active lifestyle with comfortable footwear, clothing and useful sports
equipment. Nike also realized that to please the majority of people, they needed to improve

their products.

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2.2. Market Target
Nike's target audience is people who exercise regularly and who will wear fashion
trends as it goes well with modern clothing. Nike has classified their target customers
mainly into three product groups, men's products, women's products, and children's
products.
For men's products, they have twelve different categories for shoes including
lifestyle, running, gym & training, football, American football, basketball, tennis, golf,
cricket, baseball and softball, skateboarding and track and field.
For women's products, Nike offers different options for women because Nike
understands that women don't really play American football, so they substitute yoga. For
children's products, Nike primarily targets young athletes as their mission statement
inspires every athlete.
Moreover, people in society are achieving healthy lifestyle, they are starting to
exercise more and eat healthy, people tend to run or do sports nowadays. Nike sees a
change and produces items that respond to customer needs, for example, they make more
comfortable clothing and shoes that can provide customers with an enjoyable exercise
experience for them to enjoy. Their customers love the items sold at Nike.
2.3. Market Positioning
Market positioning is how Nike positions itself in the market with other competitors
like Adidas or Puma and ensures customers will buy from Nike instead of other brands.
Nike has their positioning statement as

deliver the perfect shoe for any sport=, customers who want the best for their experience.
Their workout or want to succeed in their sports career will be influenced by purchasing
products from Nike.
The reason behind is because Nike manufacture their products based on the needs
of their target customers as they research and improve their products not only for the
masses but also for other special needs customers. .
Nike always believes in the minds of customers that it is the best choice for them
when they need sports products. Due to their impressive and high quality products, Nike
has also positioned themselves as a classy brand and their product prices are more
expensive than other brands in the sports market.
3. COMPETITIVE ADVANTAGES
3.1. Nike competitors
Several competitors

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Adidas: As a global brand is Nike's top competitor. Nike and Adidas compete across
many industries, including footwear, clothing, sports equipment and accessories.
Additionally, Adidas has Reebok, TaylorMade and Runtastic in its portfolio, which gives
the company an added edge.
Puma: has a long and illustrious history dating back to 1948. Puma has been
pressuring Nike for decades. Puma is better positioned than other Nike competitors and is
the alternative to capture black Americans and women.
Under Armor: As the name suggests, Under Armor started with the production of
lightweight, sweat-wicking performance clothing that could be worn under other types of

sports clothing and equipment. Has expanded into many of the same areas as Nike,
including footwear, apparel, and sports equipment.
Vans: is an urban footwear and clothing brand founded by first-generation
Americans to honor their immigrant ancestors. Vans sneakers retail for $100, but one
percent of proceeds benefit local NGOs. Vans has an edge over Nike because of their
involvement in the community.
3.2. Competitive advantages of Nike
Unique designs, excellent product quality, product and process innovations and
marketing have helped it gain a strong competitive advantage. Some sources of Nike's
competitive advantage:
Brand value:Nike is the leading brand in sportswear because it has built high brand
value. It is a customer-oriented brand and knows its customers inside and out. Moreover,
it has focused on customer's taste and preferences.
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It devotes a lot of research and innovation as well as marketing to be able to
bring to market the best designs ahead of the competition.

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It sells products that are excellent in design and quality.

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Nike has formed a strong brand image.

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Whether it's about product quality, sustainability or supply chain, Nike has a
strong focus on ethics, accountability, and social responsibility.

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Innovation: Nike's strong focus on innovation is closely tied to its business strategy.
It invests in research and development, to learn about the tastes and fashion trends of its
customers. Athleisure products have grown in popularity in recent years.
People are looking for fashionable and durable products. That's why innovation is a
core focus for Nike and its rivals like Adidas and Under Armor.
The scale of their investment in R&D is much larger. Investing in R&D has helped
capture a large market share and the popularity of Nike products has also grown.
Global presence: Nike is a global brand. It has 1152 stores operating globally. In
addition, the brand has outsourced most of its production to external suppliers. NIKE is the
largest sportswear and footwear brand globally.
It sells its products through NIKE-owned retail stores and through digital platforms
(known as distributors, licensees and sales representatives in most countries around the world.
Marketing: Marketing is also a key strength of Nike and gives Nike a unique
advantage in the global sportswear market. Nike is known globally for its unique marketing
strategies and techniques. It uses a combination of traditional and modern methods and
tools for marketing.
Its distribution and retail network and trade channel also act as a marketing channel.
The brand engages its customers through internal and online advertising.
However, when it comes to marketing, few are as excellent as Nike. In particular,
in terms of video marketing, Nike likes to connect with the emotions of its customers. Its
promotional videos are less about promoting the product and are more meant to create an

emotional connection.
Besides it is also for online and offline advertising. Includes media releases, events,
and sponsorships.Nike also uses celebrity endorsements and sponsorships to connect with
its audience.
Customer base: Nike has the largest customer base of all athletic footwear and
apparel brands. Nike's popularity has resulted in a large number of loyal customers. Its

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leading position in the industry and large customer base remains a significant strength that
helps it stand out as a prominent brand.
Customer Loyalty: Nike is a customer-driven brand and customer loyalty is a strong
source of competitive advantage for it. At the same time, the company is also focusing on
pricing, retail and marketing strategies to bring the best products to customers. The brand
stands out and receives the highest love and customer loyalty in the sportswear industry.
Product Range: Nike has marketed a large range of products. It offers products
mainly in six categories including Running, NIKE Basketball, Jordan Brand, Soccer
(Soccer), Coaching Training and Sportswear. Its diverse product portfolio caters to diverse
customer segments.
Supply Chain & Manufacturing: Nike has managed a robust supply chain and
manufacturing network, making it nimble to respond to popular demand. Nike has
outsourced almost all of its production.
4. MARKETING STRATEGY
4.1. Product – Product strategy
Product strategy is an important element of Nike's 4P marketing strategy. Nike

focuses on adding many different product lines to shoe products – the most popular
products to meet consumer needs and match new fashion trends. Besides, Nike also invests
in integrating new technology and developing many other products.
Featured products of the Nike brand include:
Shoes
Shoes are Nike's most popular product. Shoe products such as Nike Air Max, Nike
Air Force 1, Nike Zoom Pegasus 33, Nike Air Huarache, Air Jordan 1, Air Zoom Yorker…
are familiar names and are loved by a large number of consumers across the world.
Sports equipment and equipment
Besides shoes, Nike manufactures other sports equipment and equipment such as
jerseys, shorts, basketball shoes, flats... suitable for many sports such as athletics,
basketball, football, pants. racket, ice hockey.
Nike Fashion
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Nike brand with main items of sportswear, duffle coat, baseball cap... comes with a
unique V-shaped logo that is especially loved by young people.
4.2. Price- Pricing Strategy
Investments in technology make Nike products priced higher than the average.
However, Nike still implements value-based pricing and premium pricing strategies, given
current market conditions. High-end or exclusive products will be priced significantly
higher than the market.
In a value-based pricing strategy, Nike considers consumers' perceptions of a
product's value, and this value is used to determine the maximum price a consumer is
willing to pay for that product. Nike's 4P marketing strategy is successfully used against

pricing strategy to maximize profit and emphasize high value in promoting and presenting
products.
4.3. Place – Distribution Strategy
Nike sells its products through many different distribution channels. In the US, Nike
sells its products to 20,000 retail accounts. For the international market, Nike has signed
contracts with more than 700 stores around the world and offices located in 45 countries
outside the US.
Nike implements a distribution strategy in the locations where the company's
products are sold:
Distribution Center
Nike owns 17 distribution centers, including 3 centers in the US. The remaining
centers are distributed in some parts of the world such as Japan, Belgium...
Retail store
Retail stores like Walmart, Target or local retailers help Nike reach a wide range of
customers around the world. This is where customers can choose their favorite products
and get 20-60% off prices.
Nike Town

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Nike Town is a collection of stores owned by Nike that specializes in bulk stocking
with the latest products and is not usually available in stores. Nike Town has a separate
area for each sports group, introducing new products and forms of entertainment, studios,
photo galleries of famous sports athletes.
Nike retail store

This is the largest number of Nike stores in the world, these stores often sell official
Nike prices and are under the direct control of Nike. The elements of product, service
quality, and customer care are all guaranteed according to the standards set by Nike.
Nike.com
Nike branches around the world are mostly provided with internet shopping
websites. Customers can visit the website and choose the products they love instead of
going to the store. This has brought convenience and time-saving shopping for Nike
customers.
4.4. Promotion – Promotion Strategy
Nike implements promotional tactics to communicate to the target audience about
the product and thereby convince them to buy. Nike stands out for its promotional
communication strategies such as emotional branding, using celebrity images, distributing
on multiple social media channels, and creating inspirational ads.
Emotional Branding Strategy
Emotion Branding is the use of customers' needs, inspirations or emotional states to
build a brand, making customers feel connected, loved and desired to own and accompany
the brand.
Nike applies this technique very well in marketing campaigns, they do not focus on
promoting products but mainly conveying to customers the spirit of the brand. Using the
motif of the story of the heroes conquering the enemy, but Nike made it more refreshing
when focusing on each person's own enemies such as laziness, fear...
Strategies for using celebrity images
The strategy of using celebrity images is a strategy used by many big brands because
customers often trust the products used by the stars - the people they are fans of.
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In addition to famous sportsmen, Nike also cooperates with many actors, Youtube Influencer ... to increase the awareness of its brand.
Distribution strategy on multiple social media channels
Nike uses a variety of social networking sites to interact directly with customers like
Facebook, Instagram, Twitter, Youtube. The smooth coordination between social media
channels has helped Nike conquer a wide range of customers with different interests and
behaviors.
Strategies for creating inspirational ad
Nike ads are always carefully invested with deeply inspirational messages. Nike
often collaborates with the world's top sports stars to celebrate sports and honor the efforts
and dedication to them to achieve that success. In the ads, Nike never talks about its
products, but only focuses on inspirational stories and profound messages to customers.
5. CONCLUSION
With a history of formation and development specializing in the design,
manufacture and sales of products such as shoes, clothing, accessories, etc. related to sports
services, NIKE has become a leading famous brand in the world. .
Segmenting the market and the broad target market, NIKE divides its customers
into four different groups according to demographic, geographic, behavioral and
psychographic attributes. Brands are constantly looking for new ways to increase market
penetration, eCommerce sales, and customer retention.
It leverages all audience data to create targeted and engaging campaigns that drive
sales. Most NIKE ads don't even explicitly focus on a single product; what Nike has learned
is that selling the emotions associated with its brand is what attracts customers and
increases brand loyalty.
NIKE has many competitive advantages over the competition, from brand value,
global presence or customer loyalty, diversified product portfolio and strong
manufacturing supply network all make for opponents to be wary of. In particular, NIKE's
4Ps marketing strategy is also a key strength and gives Nike a unique advantage in the
market.

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With a flexible and creative 4P marketing strategy, Nike continues to affirm its
position in the market and leave a deep impression on customers' hearts with different
inspirational advertising campaigns. This is also one of the characteristics that many
leading brands in the world are constantly learning from Nike.
REFERENCES:
GRASES. (2022, 1). Market Segmentation, Market Target and Market Positioning of
Nike Company. Retrieved from GRASES FIXER: />MISA AMIS. (2022, 1). Phân tích chiến lược marketing 4P của Nike – Thương hiệu thời
trang thể thao nổi ti ếng thế giới. Retrieved from MISA AMIS:
/>e_4P
NIKE. (2022, 1). NIKE, INC. REPORTS FISCAL 2021 FOURTH QUARTER AND FULL
YEAR RESULTS. Retrieved from INVESTOR.NIKE:
/>Pratap, A. (2022, 1). Nike Sources of Competitive Advantage. Retrieved from notesmatic:
/>SimplyGram. (2022, 1). Nike Mission and Vision Statement Analysis. Retrieved from
SimplyGram: />START.IO. (2022, 1). Nike Target Market Analysis – Demographic Segmentation
Marketing Goals. Retrieved from START.IO: />Wikipedia. (2022, 1). Nike, Inc. Retrieved from Wikipedia:
/>
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