Nike Introduction
Nike Introduction
NIKE SHOES
GROUP MEMBERS:-
1. SANYA BAJAJ (23/534)
2. RIDA FATHIMA (23/556)
3. MOHD ANAS (23/580)
4. RISHABH RAJ GAUTAM
(23/582)
5. MOHD ARIB MANSOORI
(23/499)
SECTION B
2nd year (3rd semester)
Submitted to – Dr Swati aggarwal
INDEX
1.NIKE INTRODUCTION
2.MARKETING MIX
3.MARKETING STRATEGIES
4.TARGET AUDIENCE
5.COMPETITION
6.SUSTANABILITY
7.CORPORATE SOCIAL RESPONSIBILITY
8.TRIPLE BOTTOM LINE
9.RURAL AVALABILITY
10. QUESTIONNARE
11. PIE CHART
12.ANALYSIS
13.CONCLUSION
PRINCIPES OF MARKETING
NIKE SHOES
GROUP MEMBERS:-
1. DEEKSHA (23/501)
2. ADTIYA RATHI
(23/549)
3. DIVANSHU SIRWALIA
(23/544)
4. DEEPENDRA (23/565)
SECTION A
2nd year (3rd semester)
Submitted to – Dr Swati aggarwal
NIKE INTRODUCTION :-
Nike is one of the world's leading athletic brands, known for its footwear, apparel,
and sports equipment. Founded in 1964 as Blue Ribbon Sports and officially
becoming Nike, Inc. in 1971, the company is recognized for its iconic "Swoosh"
logo and the "Just Do It" slogan. Nike is also known for its innovative
technologies, endorsements from top athletes, and significant influence in sports
culture.
Founding: Nike was founded by Phil Knight and Bill Bowerman. Initially, it focused
on distributing Japanese running shoes in the U.S.
Brand Name: The name "Nike" is derived from the Greek goddess of victory,
symbolizing athletic achievement
NIKE SHOES :-
Nike shoes are known for their innovative designs, performance technology,
and style. Whether you're looking for running shoes, basketball sneakers, or
lifestyle kicks, Nike has a wide range of options to suit different activities and
preferences.
With a commitment to quality and performance, Nike integrates advanced
technologies like Air cushioning, Flyknit uppers, and React foam to enhance
comfort and support during physical activities. Their shoes not only prioritize
functionality but also embrace cultural trends, making them a staple in both
sports and everyday fashion.
Over the years, Nike has cultivated a strong community through collaborations,
sustainability initiatives, and inspiring marketing campaigns, solidifying its
position as a leader in the global footwear market. Whether you're hitting the
track, the court, or the streets, Nike shoes blend performance with style,
making them a popular choice for millions around the world.
MARKETING MIX USED BY NIKE SHOES :-
Nike’s marketing mix, commonly referred to as the 4Ps of marketing (Product,
Price, Place, and Promotion), plays a crucial role in maintaining its strong brand
presence in the highly competitive global sportswear market. Marketing mix
strategies used by Nike shoes are as follows:-
1. Product
Nike offers a wide range of shoes targeting various segments of the athletic
footwear market. The key factors of its product strategy include:
- Variety: Nike manufactures shoes for different sports, such as running,
basketball, soccer, tennis, and golf, along with casual wear.
- Innovation: Nike heavily invests in research and development, leading to
innovative technologies like Nike Air, Flyknit , and React Foam. These technologies
improve performance and comfort.
- Design and Customization: Nike offers stylish and functional designs. Through
Nike By You, customers can customize their shoes with colors and materials.
- Brand collaborations: Nike often partners with designers, athletes, and
celebrities (e.g., Michael Jordan, Travis Scott) to create exclusive shoe lines,
increasing brand appeal.
2. Price
Nike employs a value-based pricing strategy, setting prices based on the perceived
value of its products:
- Premium Pricing: Many Nike shoes are positioned as premium products with
high price points, especially their limited-edition or signature lines (e.g., Air
Jordans).
- Mid-Range Pricing: Nike also offers a broad range of moderately priced shoes to
reach mass markets.
- Discounts and Sales: While premium pricing is a major strategy, Nike often
offers discounts, especially on older models, to clear inventory and attract price-
sensitive customers.
3. Place
Nike's distribution strategy ensures that its shoes are available to customers
worldwide:
- Retail Stores: Nike owns branded Nike stores and Nike Factory Outlets, where it
showcases its full range of products.
- E-Commerce: The Nike website and mobile app are significant sales channels,
allowing consumers to buy directly from the brand.
- Third-Party Retailers: Nike products are sold through various retailers like Foot
Locker, JD Sports, and major department stores.
- Global Reach: Nike’s products are available in over 170 countries, with a
combination of physical retail and online platforms.
4. Promotion
Nike is renowned for its innovative and impactful promotional strategies:
- Advertising: Nike utilizes both traditional (TV, print) and digital advertising.
Famous slogans like Just Do It and ads featuring prominent athletes (e.g. Serena
Williams, Cristiano Ronaldo) have strong global appeal.
- Sponsorship and Endorsements: Nike collaborates with elite athletes, teams,
and events (e.g., the Olympics, NBA, NFL) to strengthen its brand image. Iconic
partnerships include Michael Jordan and LeBron James.
- Social Media and Digital Marketing: Nike actively uses social media platforms
like Instagram, Twitter, and YouTube for engagement and marketing. Their
campaigns are often emotionally charged and motivational.
- Event Marketing: Nike hosts and sponsors events such as marathons,
tournaments, and product launch events to engage with consumers directly.
- Influencer Collaborations: Nike also collaborates with influencers and cultural
icons to penetrate different customer bases beyond sports enthusiasts.
MARKETING STRATERGY
Nike’s marketing strategy for its shoes is multifaceted and highly effective,
focusing on brand innovation, customer engagement, and leveraging digital
technologies. Some of the marketing strategies used by Nike shoes are as
follows:-
TARGET AUDIENCE
Nike’s target audience for its shoes is broad and diverse, spanning various
demographic, psychographic, and geographic segments. Nike's brand is built to
appeal to a global market with a range of products catering to different lifestyles,
athletic needs, and fashion preferences. The key segments of Nike's target
audience:
5. Global Consumers
Nike’s target audience extends globally, reaching consumers across various
countries and regions:
- International Markets: Nike has a significant presence in markets like China,
Europe, and Latin America. The company adapts its marketing strategies to suit
local cultures and preferences, using local athletes and influencers to increase
brand appeal in different countries.
COMPETITION
Nike faces fierce competition in the global athletic footwear market from several
major brands, each with its unique strengths and market strategies. Here's an
overview of Nike's key competitors:
1. Adidas
Adidas is Nike’s most direct and formidable competitor, especially in the global
sportswear market. Both brands are highly competitive across several
dimensions, including product innovation, athlete endorsements, and fashion
collaborations.
- Product Range: Like Nike, Adidas offers a wide variety of shoes for different
sports, including running, soccer, basketball, and lifestyle sneakers.
- Innovation: Adidas is known for its ‘Boost cushioning’ technology and Primeknit
material, which compete with Nike’s Air and Flyknit technologies.
2. Puma
Puma is another global competitor that rivals Nike in both the athletic and
lifestyle segments.
- Product Focus: Puma offers a mix of performance sports shoes and fashionable
casual wear, targeting a younger, trend-conscious audience.
- Endorsements: Puma has signed big-name athletes like Usain Bolt and
celebrities like Rihanna, whose Fenty by Puma line helped Puma make inroads
into the fashion-forward segment.
3. Reebok
Reebok, owned by Authentic Brands Group after being sold by Adidas, competes
with Nike in both performance and lifestyle segments.
- Product Range: Reebok’s offerings include shoes for fitness, training, and casual
wear. It is particularly strong in the CrossFit and fitness market.
- Branding and Endorsements: Reebok focuses on fitness enthusiasts and has a
partnership with CrossFit, appealing to a niche but loyal consumer base. However,
Reebok struggles to match Nike’s broad appeal and innovation.
4. Skechers
Skechers is a more value-oriented competitor that focuses on comfort and
affordability, rather than high-performance or high-fashion footwear.
- Product Range: Skechers offers a wide range of casual shoes, walking shoes, and
some performance footwear, particularly targeting the everyday consumer.
- Market Position: Skechers focuses more on comfort and style than on athletic
performance. While it may not compete directly with Nike in the high-
performance athletic shoe category, it poses a challenge in the casual and walking
shoe markets.
5. Decathlon
-While Nike focuses heavily on premium, performance-driven products
Decathlon’s products are often more affordable than Nike’s, making it attractive
to price-sensitive customers.
-Target Audience: Nike's target audience includes professional athletes, fitness
enthusiasts, and lifestyle consumers willing to pay for premium products.
Decathlon, on the other hand, appeals to a broader audience, from casual sports
participants to hobbyists and amateur athletes. Decathlon’s focus on affordability
and functionality draws a different demographic, particularly families and those
looking for value-for-money products.
SUSTANABILITY :-
Nike has been actively pursuing sustainability initiatives to reduce its
environmental impact, especially in the production of its shoes. Its approach
focuses on reducing waste, lowering carbon emissions, promoting recycling, and
using sustainable materials, aligning with its broader corporate strategy of
corporate responsibility and innovation. Here are the key aspects of Nike’s
sustainability efforts regarding its shoes:
2. Sustainable Materials
Nike is increasingly using eco-friendly materials in its footwear to reduce the
environmental footprint of its products:
- Recycled Polyester: Nike uses recycled polyester in many of its products,
including shoes. By using plastic bottles and other post-consumer waste, Nike
reduces its reliance on virgin polyester, which has a high environmental impact.
- Nike Flyknit technology weaves the shoe's upper portion in a single, seamless
layer, significantly reduces material waste compared to traditional shoe
construction. It has helped to eliminate millions of pounds of waste since its
introduction in 2012.
- Nike Air Soles: Nike’s Air units are made from at least 50% recycled materials.
Nike Air technology, which provides cushioning in many of its shoes, has been
redesigned to be more sustainable by reducing material use and utilizing recycled
waste.
Nike, as a global leader in sportswear, incorporates the Triple Bottom Line (TBL)
approach into its business strategy to balance profitability with social and
environmental responsibility. Below is an analysis of Nike's Triple Bottom Line in
the context of its shoes:
RURAL AVAILABILITY:-
Nike’s availability in rural areas, particularly in markets like India or other
developing countries, faces challenges due to several factors such as pricing,
distribution networks, and consumer behaviour.
1. Limited Physical Presence
Nike’s physical stores and outlets are mostly concentrated in urban and
metropolitan areas, where the demand for premium sportswear and athletic
shoes is higher. Rural areas, however, typically have less access to branded retail
stores, and as a result, Nike's direct retail presence is minimal in these regions.
-Retail Strategy: Nike’s focus is largely on cities, where brand-conscious and
affluent consumers are more likely to purchase its premium-priced products.
Rural consumers, due to lower purchasing power and limited interest in luxury
sportswear, often opt for more affordable, local brands.
2. Pricing Challenge
One of the primary barriers to Nike’s widespread availability in rural areas is its
pricing. Nike’s shoes, being positioned as premium products, are often too
expensive for rural consumers in many countries. The average price of a pair of
Nike shoes may exceed what rural consumers are willing or able to spend,
especially when there are much cheaper alternatives available.
- Local Competitors: Indian brands like Bata, Relaxo, campus which offer shoes at
much lower prices, are more popular in rural areas
3. E-Commerce and Digital Expansion
Nike’s e-commerce platforms and partnerships with major online retailers (e.g.
Amazon, Flipkart, Myntra in India) have improved accessibility to Nike shoes in
rural areas. With the growth of digital infrastructure, consumers in rural areas can
now order Nike products online, making them more available despite the absence
of physical stores.
-E-Commerce Accessibility : Increasing internet penetration and the popularity of
cash-on-delivery services in rural areas have made it easier for brands like Nike to
sell directly to rural consumers via e-commerce platforms. Online sales have
become a crucial strategy for Nike to reach more rural markets.
QUESTIONNARE
NIKE SHOES
PIE CHART
ANALYSIS
1. Where do you typically purchase Nike shoes?
Analysis: A significant portion (71%) prefers online shopping (39% from online
retailers, 23% from Nike’s website), while 32% visit physical retail stores. Only
6% use sporting goods stores, showing Nike's direct and online presence
dominates.
Analysis: The top reasons for choosing Nike are style (38%) and comfort (35%).
These two factors contribute 73% of the decision-making process. Brand loyalty
and performance are secondary considerations, with price being the least
influential factor.
3. How would you rate the comfort of your Nike shoes?
Excellent: 33%
Good: 48%
Average: 17%
Poor: 1%
Very poor: 1%
Analysis: Nike scores highly in comfort, with 81% of respondents rating the shoes
as Good or Excellent, showing a strong alignment with consumer expectations for
comfort.
Analysis: Nike is also viewed favorably for durability, with 86% giving it Good or
Excellent ratings. Only 4% rate durability poorly, suggesting general satisfaction
with product lifespan.
5. Would you recommend Nike shoes to a friend or family member?
Definitely: 68%
Probably: 26%
Probably not: 4%
Definitely not: 2%
7. How satisfied are you with the availability of sizes and styles?
Very satisfied: 28%
Satisfied: 44%
Neutral: 21%
Dissatisfied: 4%
Very dissatisfied: 3%
Analysis: Most customers are either Very satisfied or Satisfied (72%) with the
size and style availability at their preferred locations, indicating that Nike is
meeting expectations for inventory variety.
8. Have you experienced any issues with Nike shoes?
No: 58%
Yes: 21%
Maybe: 21%
Analysis: While 58% of users report no issues, the remaining 42% (21% "Yes"
and 21% "Maybe") suggest some dissatisfaction or uncertainty around product
quality or performance.
Analysis: Most respondents own 1-2 pairs (63%) or 3-5 pairs (30%), showing
that the majority of Nike customers have multiple pairs, reinforcing brand
loyalty.
10. How do you usually find out about new Nike shoe releases?
Social media: 52%
Nike website: 18%
Friends/Family: 13%
In-store promotions: 7%
Analysis: Social media is the dominant channel (52%) for discovering new
releases, emphasizing the importance of digital marketing for Nike. The Nike
website and word of mouth also play important roles.
11. How do you feel about the pricing of Nike shoes compared to other brands?
Much higher: 18%
Somewhat higher: 40%
About the same: 32%
Somewhat lower: 7%
Much lower: 3%
Analysis: 58% of respondents feel that Nike shoes are priced higher than other
brands, which may reflect the premium image Nike holds. Only 7% feel they are
priced lower, suggesting that Nike is positioned as a high-end brand.
12. How would you rate your overall experience with Nike customer service?
Excellent: 32%
Good: 53%
Average: 11%
Poor: 3%
Very poor: 1%
Analysis: Nike’s customer service is viewed positively, with 85% rating it as Good
or Excellent. This indicates a largely positive service experience.
13. What factors influence your decision to remain loyal to Nike?
Quality of products: 55%
Brand values (sustainability, community involvement): 18%
Customer service: 12%
Product innovation: 8%
Price competitiveness: 7%
Analysis: Product quality is by far the most important factor for loyalty (55%),
followed by brand values at 18%. Customer service and product innovation are
secondary, while price is less influential.
14. What types of Nike shoes are you most interested in purchasing in the future?
Lifestyle sneakers: 43%
Running shoes: 33%
Training shoes: 10%
Sports-specific shoes: 7%
Casual footwear: 7%
Analysis: Lifestyle sneakers (43%) and running shoes (33%) dominate future
purchase interest, aligning with current preferences. Training and sports-specific
shoes capture smaller market segments.
15. How would you rate your overall shopping experience with Nike?
Excellent: 33%
Good: 55%
Average: 8%
Poor: 3%
Very poor: 1%
Analysis: Comfort (42%) and style/design (30%) are the top priorities for Nike
customers. Durability and performance are secondary, while brand reputation and
sustainability have lesser importance for most buyers.
CONCLUSION
The survey data reveals that comfort and style are the key
drivers behind Nike’s popularity, with over 70% of
respondents citing these as the primary reasons for their
purchases. Nike's lifestyle/casual shoes are the most
preferred category, highlighting the brand’s success in
merging athletic performance with everyday fashion. 94% of
respondents would recommend Nike to friends and family,
indicating strong brand loyalty and advocacy.