1964 1971 – - Type: Public - Industry: Apparel, Accessories, Sports equipment - Products: Athletic footwear and apperel; Athlectic and recreational products; Soprts equipment - Founders:
Trang 1TR¯àNG ĐẠI HÞC NGÂN HÀNG TP HÞ CHÍ MINH
BÀI THI KẾT THÚC HÞC PH¾N
Môn thi: MARKETING MANAGEMENT
H ß và tên sinh viên Đßng Minh Khang :
MSSV: 050606180157 L p h c ph n: MAG309_2111_H01_TA ß ß ¿
THÔNG TIN BÀI THI
Bài thi có: (b ằng số &12& trang ):
(b ằng chữ &m°á ): i hai& trang
BÀI LÀM
Trang 2THE 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 Qu nhỳ
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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
- Formerly: Blue Ribbon Sports,
Inc (1964 1971) –
- Type: Public
- Industry: Apparel, Accessories,
Sports equipment
- Products: Athletic footwear and
apperel; Athlectic and
recreational products; Soprts
equipment
- Founders: Bill Bowerman, Phil Knight
- CEO: John Donahoe
- Area served: Worldwide
- Headquarters: Beaverton, Oregon
- Employees: 75,400 (2021)
- Slogan: Just Do It
- Website: nike.com
- Traded symbol: NASDAQ: NKE
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 <Just Do It= and the Swoosh logo (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 <Do everything possible to increase human potential.=
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 <inspiration, innovation, every athlete in the world, authentic, 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 <Bringing inspiration and innovation to every athlete in the world= and based on 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 <For serious athletes, Nike gives confidence to 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
- 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
- It sells products that are excellent in design and quality
- Nike has formed a strong brand image
- 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 <NIKE Direct= operations), to retail accounts and combinations of independent 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