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Marketing Plan For NIKE

Updated on February 15, 2014


Nike, without any doubt, is the most successful and well-equipped organization of sports’ footwear all across the globe. It not only specializes in making iconic footwear but also produces other high-quality sports goods as well. Their level of success and role in average person’s life can be estimated from the fact that its market size is around $19.2 billions. Their nearest competitors only produce footwear and none of their competitors produce and other sports goods. That’s the level of demand which their product carries. Now, let us view Nike technically and have an in-depth analysis of their markets, strategies and the planning which they do.

figure 1
figure 1

Environmental Analysis

The environmental analysis of a company includes the internal and external challenges which a company encounters. So the two types of Environments are:

Internal Environment

  1. 1. What is the company’s mission and overall business objectives?

The mission and overall business objectives of the company is well described by the Co-Founder of Nike that they want,” To bring inspiration and innovation to every athlete in the world.” And when asked, how to define an athlete? He was very clear in his head and replied,” If you have a body, you are an athlete.”

He is a wise man indeed. But really Nike strength has always been its brand ambassador who is mostly top athletes. May be that’s why they are the most successful company in footwear till date.

  1. 2. What resources does the company have that make them unique?

When talking about resources, they have got it all. Starting with advertising, In 1982, Nike launched its very first television ads, produced by the recently created ad agency Wieden + Kennedy (W+K) and this was just the beginning. Their later ads having a Beatles song in it created a bit disturbance among the courts.

They were also one of the first companies to do e-marketing and use internet as a potential medium to propagate their ads.

Now, moving on to the sponsorships, Nike pays peak athletes in many games to endorse their products and sponsor and advertise their expertise and plan. Nike's very first professional athlete endorser was a tennis player and the elite list continues till date. Some of the renowned athletes and teams include:

  • Michael Jordan,
  • Indian Cricket Team,
  • Ronaldinho,
  • Ronaldo,
  • Cristiano Ronaldo,
  • Didier Drogba,
  • Neymar,
  • Zlatan Ibrahimović,
  • Mario Balotelli,
  • Wesley Sneijder,
  • Wayne Rooney,
  • Landon Donovan
  • Rory Mcllroy

Now, let us talk about the employee network of Nike. Nike Employee Networks are intended to assist Nike progress toward larger variety. Their headquarter is in USA, so in America, 6 employee networks focus thoughts on significant communities within Nike. Their planned function of each network is to promote professional growth, enhance work presentation, recognize mentors, help in recruiting miscellaneous professionals, build up amplified community relations, and encourage improved solidarity and communication within and across work groups.

These six groups are:

  • Native American Employee Network (NAEN)
  • Latino Employee Network (LEN)
  • Lesbian, Gay, Bisexual, Transgender & Friends Employee Network (GLBTFEN)
  • Ability Network (AN)
  • Asia Pacific Employee Network (APEN)
  • Black Employee and Friends Network (BEN)

The mission of each network is unique and different (as mentioned in Nike’s official website, i.e. and is respectively arranged.

NAEN: To increase consciousness and carry on to educate Nike employees about the Native American society, through instructive opportunities, discussion groups, presenters and society participation, NAEN carry on to add to the awareness of Native American morals and traditions at Nike. By sponsoring sporting procedures and a variety of youth curricula, the group creates noticeable community support and motivation for Native cultures.

LEN: To boost the consciousness of the Hispanic/Latino society at Nike, discover variety in the Nike office, develop wherewithal to boost careers and cultural development for Nike employees, fortify ties to the Hispanic/Latino society and build up initiatives that line up with Nike business plans.

GLBTEEN: To amplify wakefulness and understanding of Nike's gay, lesbian, bisexual and transgender society through the endorsement of various learning and helpful events. Hope is to form partnership prospects between Nike and the GLBT society, and to build a group and medium for sharing that is entirely encouraging of gay, lesbian, bi-sexual and transgender folks.

Ability Network: To develop Nike and society by promoting the addition of public, affected by disabilities and nurturing an atmosphere that understand everyone's complete talent. It's not about our limitations; it's about what each of us can contribute. The disabled Employees and Friends Network enhances our company-wide awareness of the contributions and potential of people with disabilities.

APEN: To endorse wakefulness and perception of Asia Pacific society in search of business purposes and member of staff development. Asia Pacific is a big market, in-fact, huge market. APEN develops our employees' wakefulness and understanding of Asia Pacific traditions. They effort to add to the participation within the Asia Pacific societies, both close by and worldwide where we do big business as well as hold up Nike's business strategies for the Asia Pacific customer.

BEN: To append worth to the Nike business by endorsing an atmosphere that draws, encourages and safeguard black employees. Nike's Black Employee & Friends Network (BEN) proposes a strong support structure for black employees to smooth the progress of a successful changeover into Nike's corporate culture.

External Environment

  1. 1. What is the overall domestic and global market for the product?

According to, “Domestic marketing of NIKE is more in U.S.A where a large number of NIKE’s products are sold.”

NIKE is earning from the money spinning NBA in the U.S.A.

NIKE collaborated with NBA stars such as Michael Jordan and Le Bron James in 2005 to produce a “niche” for its merchandise in the local bazaar. NIKE continues to do this even with Tiger Woods, fully equipped by NIKE in all his jaunts in US and outside US. NIKE also takes benefit of the “keep fit” attitude of women in U.S.A to sell its merchandise by promoting ads that they are being empowered for keeping fit. NIKE sells its merchandise to over 25000 retailers in U.S.A. However, the rivalry has not been easy with super-competition from Adidas and Reeboks and others.

  1. 2. Who are the competitors?

New Balance, Adidas, and Puma are listed as the top competitors. But demographically, socially, age-wise and culturally the list of competitors varies. The figure 1 will give you a complete picture of the competitors of NIKE.

  1. 3. How does the economic environment affect demand for the product?

The economic recession too is posing a tough challenge for NIKE.” (

  1. 4. What is happening in the social and cultural environment that affects the product?

Social and cultural environment directly affect the sale and purchase of a product. Political instability, religious uproars and cultural differences play a major role in the market of a product. For example, if we see Pakistan, majority of its population (almost 60%) wears their national dress (i.e. Shalwar Kameez), so it is very unlikely that these people would wear Nike sports shoes with their dresses. So cultural an d social environment do play an essential and vital role in the sale and purchase of the product.

  1. 5. How does the technological environment affect the business?

Technological environment has a major impact on the business of companies like NIKE. Due to the creation and invention of new materials, rubbers, fibers, plastics, etc. there is a constant need to upgrade the technology in terms of the material of the product as well as the machines which make their product. So, in short, technical and tactical up gradation is necessary for a company like NIKE to retain their spot at the top.

Have You Ever Bought A NIKE?

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SWOT Analysis

Strength, Weakness, Opportunity and Threat, that’s what SWOT stands for.

A. Strengths

1. Nike’s product division strategy is the result of a strong marketing orientation, commitment to high quality, and customization of products and support services.

2. There is modest revenue sharing among employees who are well salaried and liked by clientele. The fairly small size of the workforce divisions (as mentioned above) encourages acquaintance with co-worker and customers, and further communication and quick reply to clients’ requirements.

3. The niche market of Nike products is because of the affiliation of superstars and sports celebrities with the product which is a plus for the company.

4. Their product is non-seasonal. I mean one don’t purchase a Nike for a specific season. It is for all seasons, all weather and almost every climate.

B. Weaknesses

1. The Original Nike footwear is relatively expensive for ordinary people to purchase.

2. They are yet to conquer Asia, specifically India, Bangladesh, Indonesia, China and Pakistan. They do not have an established market in these densely populated countries which is a weakness, since their overall revenue would reach a great height if they establish strong ground in these countries.

3. Ethnic and racial categorization of employees and customers can be troublesome if not managed properly.

C. Opportunities

1. As mentioned earlier, the biggest opportunity for Nike is Asia, you capture the market of Asia, means you have captured world’s market.

D. Threats

1. Since the customers of Nike are immensely influenced by the celebs and stars who endorse their brand. In case of any controversy related to any of the celebrity, the sales of the product would be affected.

2. If Asian Markets are captured by any of Nike’s rival company then that brand would have a chance to dethrone Nike from its no.1 position.


Executive Summary

NIKE was founded on January 25, 1964. Its original name was “Blue Ribbon Sports” and the duo owners were Bill Bowerman and Phil Knight, “Blue Ribbon Sports” officially got the name “Nike”, Inc. on May 30, 1971. The literal meaning of the company’s name Nike,comes from Greek language which means “goddess of victory.”

NIKE has up till now a targeted audience. Their business is well-spread in the U.S. and Canada and most of the parts of Europe. The do not have grip on Asian markets, otherwise they have got every recipe in their book. They just do everything right. They are the Apple of the sportswear market. They have a satisfied customer base, their employees are loyal, and they are doing great as a company and as a unit. They have big companies like Puma, Reebok, Adidas, Fila, etc. as their potential competitors but NIKE, due to their marketing strategies and effective planning are resting safely on the top. But this does not mean that they have had their feet got cold. They are constantly looking to expand and emerge once more to the top. But this time the peak would be of the mountain called World. And yes another reason for they being at the top is evident in their tagline, they JUST DO IT!!


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