Nike marketing mix determines the strategies the company uses to promote, distribute and sell its products. Nike marketing mix is the one of the best ways to assess the overall business strategy of the company. Nike has been one of the most popular and profitable sports brands in the world that is engaged in manufacturing and selling a wide range of sports apparel, shoes and clothing products almost every corner of the world. Nike marketing mix consists of 4ps—product, price, place and promotion.
Product– Nike marketing mix identifies the products and services offered by the company. As per the Nike marketing mix, the company offers a variety of sports shoes, bags, apparel, and garments for athletes and people from general population. In addition to it, Nike marketing mix for product also tells that the company is also engaged in selling several kinds of sports accessories and equipment to customers from every corner of the world. Next Nike marketing mix of the company is place which is discussed in the next section.
Place– In this section of Nike marketing mix, the company gives description about where it is going sell its products. In the context of geographical region, the company offers its product in every corner of the world including Asia, Europe, North America etc. the company makes use of offline and online retail stores to sell its products to the end consumers. The company distributes its product to the local retail stores and outlets and these stores sell the products to the customers.
Price– Nike marketing mix is incomplete without the discussion of price of product offered by the company. In the context of price of Nike marketing mix, the company has implemented two main pricing strategies which are value based pricing strategy and premium pricing strategy. As per the Nike marketing mix of price, the company considers customers’ perception about the value of the product. Nike marketing mix also involves description of the premium pricing in which the company set high prices on the basis of premium quality and high value of its product.
Promotion– Advertisement and promotion is one of the major sections of the overall business strategy of the company. Nike marketing mix reveals that the company makes use of every kind of promotional strategy to advertise and market its products and services. As per Nike marketing mix, the company makes use of both offline and online marking tactics to promote its products and services.
Nike Pestle analysis
Nike Pestle analysis refers to assessing macro environment factors affecting the sustainability and growth of the business. Nike Pestle analysis consists of five major elements which are political, economic, social, technical, legal and environment.
Political – Political factor is the first element in the Nike Pestle analysis which describes how political factors affecting the business of the company. Politically, the company gets support from the governments of the countries in which it serves as the brand promotes and encourage people to take participate in the fitness and sports industry.
Economic– Nike Pestle analysis reveals that the company’s profitability is influenced by uncertainty in the economic conditions of a nation. Economic factors such as inflation, recession, and high economic growth significantly affect the business of the company.
Social– The company has developed a good brand image among its customers in every target market. Nike Pestle analysis reveals that the company is required to make modification in its business strategy as per the demands and needs of its customers.
Technical– In the context of technical factor in the Nike Pestle analysis, it can be said that the company is getting tough completion from the market as other players are investing in the technology and innovation to produce new, unique and innovative sports products.
Legal– Nike Pestle analysis cannot be completed without the discussion over legal factors affecting the business of the company. Nike Pestle analysis reveals that every company operating in sports apparel sector are required to follow the rules and regulations set by the government.
Environment– Like every other company, Nike is also suggested to establish its manufacturing plant outside of the city area in order to minimise the negative impact of gases released from the plants. However, Nike pestle analysis suggests that the company poses no threats to the environment.
Swot analysis of Nike
Nike swot analysis is one of the best approaches to identify and assess the strengths, and weaknesses of the company. Nike swot analysis is used for several purposes including development of new business strategies and modification in the existing business strategy. Nike swot analysis consists of four elements—strengths, weaknesses, opportunities and threats. Nike swot analysis is described below:
Strengths– As per the Nike swot analysis, high brand popularity and extensive distribution network are the main strengths of the company. Nike itself is highly capable of convincing the customers to buy its products. Nike swot analysis also reveals that the company makes use of high quality raw materials to manufacture its products which makes it as one of the best sports brands in the world.
Weaknesses– Nike swot analysis has identified that high reliance on US market, pending debt and poor labour conditions in several foreign countries are some of the weaknesses of the company. Nike swot analysis has also identified that the company is not able to make changes in its pricing strategies frequently as the market is mainly driven by the retailers.
Opportunities – Increasing economy of the developing countries like India, Brazil and China is offering a huge opportunity for the company to expand its business in more geographical areas. According to Nike swot analysis, the company can invest high in R&D function product innovative products. Nike swot analysis has already revealed that the company is highly popular across the world. In addition to it, Nike swot analysis has revealed that the company can step into wearable technology to attract more number of customers from the market. The company acquire other companies in the market to secure its strong position in the market.
Threats– Rapidly growing level of competition in sports apparel sector is one of the biggest threats to the sustainability of the business. Nike swot analysis has suggested that the company can make use of merger and acquisition to remain competitive in the market. Analysing possible threats to the company’s growth and business sustainability is one of the main elements of Nike swot analysis. As per Nike swot analysis, any changes in the economy of the country can significantly affects the profitability and revenue of the company. Nike swot analysis suggests that the company should keep on trying manufacturing new and innovative apparel, shoes and accessories in order to remain competitive in the market.