BM854 Strategic Marketing Assessment

Student Research Paper:

Strategic Marketing Plan for Nike, Inc.

Students:

Abdelrahman Sherif ID:202101466

Mohamed ben khadra ID:202100152
Mina Hany ID:202102513

Supervised by:
Dr.Omneya Moharam

10 May 2025

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Table of contents
1. Executive Summary.................................................................................................................4
2. Company overview.................................................................................................................. 5
3. Situation analysis.................................................................................................................... 5
3.1 Market analysis overview...................................................................................................5
3.2 Competitive landscape...................................................................................................... 6
3.3 Consumers Trends............................................................................................................ 6
3.4 Brand Positioning...............................................................................................................7
3.5 SWOT Analysis..................................................................................................................7
4. Market Analysis (External Environment)...............................................................................8
4.1 PESTLE Analysis...............................................................................................................8
4.2 Porter's Five Forces Analysis............................................................................................ 9
5. Marketing Objectives.............................................................................................................10
5.1 Short-Term Objectives (Next 1-2 Years: FY25-FY26)......................................................10
5.2 Long-Term Objectives (Next 3-5 Years: FY27-FY29)...................................................... 10
6. Target Market/Customer Analysis........................................................................................ 11
6.1 Market Segmentation....................................................................................................... 11
6.2 Target Market Selection................................................................................................... 11
6.3 Positioning Strategy Summary........................................................................................ 12
6.4 Customer Personas......................................................................................................... 12
7. Strategic Marketing Mix (4Ps)...............................................................................................12
7.1 Product Strategy.............................................................................................................. 12
7.2 Price Strategy.................................................................................................................. 13
7.3 Place (Distribution) Strategy............................................................................................ 13
7.4 Promotion Strategy.......................................................................................................... 13
8. Strategic Insights...................................................................................................................14
9. Evaluation and Control......................................................................................................... 14
9.1 Key Performance Indicators (KPIs)................................................................................. 14
9.2 Monitoring and Reporting................................................................................................ 15
9.3 Contingency Planning......................................................................................................15
10. References........................................................................................................................... 16

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1. Executive Summary
Their strategic marketing plan for Nike, Inc. The core goal of this plan was to examine Nike's
existing market status and establish measures for maintaining business leadership during the
five-year period (FY25-FY29). As the worldwide sports footwear and apparel leader Nike still
struggles with important marketplace obstacles in its competitive field. The analysis of Nike's
internal attributes and external obstacles utilized SWOT examination and PESTLE evaluation in
addition to Porter's Five Forces method for competitive environment assessment.

According to our research Nike stands strong due to its famous brand name and inventive
product creation and customer connection program termed Direct-to-Consumer. The company
should boost its DTC platform but also use digital tools to engage customers better while
prioritizing women's growth and global market penetration through midclass segments as well
as setting the standard for sustainable product development under its "Move to Zero" initiative.

Nike remains vulnerable to multiple important obstacles which affect its operation. The market
competition between Nike and Adidas and Lululemon operates at a very aggressive level. The
use of a globally efficient supply chain makes Nike prone to disruption when worldwide events
occur. The increasing customer demand for socially responsible and ethical production along
with economic uncertainties could lead to decreased premium product spending that Nike
offers.

These business goals match our proposed marketing strategy which uses the 4Ps framework.
We suggest Product development should continue through performance gear innovation as well
as lifestyle collaboration projects and sustainable design and gender-specific and app-based
integration for physical products.The Place strategy proposes Nike must enhance its website
together with its apps and physical stores while maintaining strategic partnerships with select
retail outlets. To promote Nike we advocate utilizing a combination of effectively designed
advertising messages along with endorsements from athletes together with strategic digital
marketing efforts and community events followed by benefits for loyal customers provided
through the Nike Membership service.

Nike must build stronger direct buying relationships with customers while integrating
sustainability across its core identity and develop its apps to strengthen brand bonds and
dedicate major resources to women's products at the same time of informing people through
meaningful stories and messages. The organizational structure includes a system for tracking
success through established Key Performance Indicators.

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2. Company overview
The headquarters of Nike, Inc. operates near Beaverton, Oregon and leads the world market for
sports footwear as well as apparel and equipment. Phil Knight and his coach Bill Bowerman
started Blue Ribbon Sports in 1964 to sell Japanese footwear before they launched their Nike
brand in 1971 followed by their first designs. The "Swoosh" logo together with the "Just Do It"
phrase works as a key foundation that makes up Nike's powerful brand personality. The mission
at Nike drives inspiration and innovation directly to all "athletes" throughout the world
irrespective of what kind of physical body they possess.

The Nike Company operates three distinct brands including its standard Nike products alongside
basketball-focused Jordan Brand and traditional footwear manufacturer Converse. Nike holds
the top position in worldwide sportswear market leadership with substantial dominance. Under
their Consumer Direct Acceleration (CDA) strategy Nike directs their sales approach toward
direct transactions with customers through Nike website and their main Nike App and SNKRS
app and physical retail locations as well as fitness apps. This method helps Nike develop better
relationships with customers and acquire valuable business intelligence data while maintaining
brand quality standards to achieve higher earnings than wholesaling. Commercial innovation at
Nike extends beyond their product development process to include new digital customer
channels.

3. Situation analysis
3.1 Market analysis overview
The worldwide sportswear industries maintain their expanding growth trajectory which controls
a wide market range. The market expansion persists because of several notable market
patterns. Health and wellness interests among people have grown resulting in increased sports
equipment buying and exercising behavior. Athletic-style clothing continues to dominate the
fashion industry through the athleisure trend. People prefer comfort combined with fashion in
their everyday outfits. Customers who engage in digital fitness programming such as
smartphone applications and web-based exercise sessions and smartwatch use are driving up
demand for gym equipment and digital services. Young customers along with others
demonstrate increased concern for sustainability which requires Nike and other brands to
develop responsible manufacturing practices. Brands will see major market expansion
opportunities in developing economies because more people acquire branded products
alongside adopting active life habits.

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3.2 Competitive landscape
The market where Nike operates maintains strong levels of competition. The sports company
Adidas represents Nike's biggest international rival because it competes head-to-head
throughout all product segments including footwear and clothing along with accessories. The
combination of its soccer market leadership with Adidas Originals lifestyle wear and substantial
Direct-to-Consumer initiative and sustainability push positions the company as an enduring
business threat.

Lululemon started as a yoga gear provider that evolved into one of the leading companies in
premium athleisure products for female customers. People recognize them for high-quality
products along with their dedicated customer base.

Puma together with Under Armour operate as significant competitors in the market. Puma
builds success by collaborating with lifestyle brands while focusing on motorsports as a specific
sport segment yet Under Armour excels at performance clothing but faces difficulties making
connections with standard lifestyle buyers.

The Chinese market features two specific regional brands Anta and Li-Ning that have achieved
success both domestically and are now setting their sights on international markets.

Certain small brands operating exclusively through their online platforms such as On Running,
Hoka, Gymshark materialize by serving precise market needs and foster strong customer loyalty
through their social media presence.

3.3 Consumers Trends

The way consumers prefer goods and desire service quality keeps evolving at a quick pace:

Young consumers view digital experiences as fundamental since they need user-friendly
websites with personalized recommendations and effortless mobile-based shopping that uses
comfortable interfaces. They want one continuous shopping experience that links both their
online and physical store shopping.

More customers select products based on their fundamental beliefs. Current consumers want
information about both ethical workplace wages paid to employees and product environmental
sustainability including recycled materials usage and reduced pollution.

Through personalization customers feel valued when brands show them tailored suggestions
along with customization choices (Nike By You shoes) with content relevant to their personal
interests.

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Trends among young purchasers strongly depend on elements from sneaker culture while
streetwear fashion along with music as well as gaming creates significant impacts on buying
decisions. Generations of enthusiasts quickly empty the market for limited edition products
because of their shared cultural interest.

3.4 Brand Positioning

Nike has effectively branded itself as the number one brand on the market for performance and
innovation on the one hand, and on the other hand as cool and fashionable. It utilizes
inspirational messaging (“Just Do It”) and collaborations with the best athletes in the world to
reach the hearts of consumers’ aspirations. At the same time its products, especially specific
sneakers and attires lines are at the core of street style and youth culture. This duality as both a
serious sports brand as well as a fashion leader enables Nike to command premium prices, they
promise to improve performance and yet customers should feel good.

3.5 SWOT Analysis

Strengths:

- Incredibly Strong Brand: The Swoosh and “Just Do It” are world famous, which helps create
fabulous customer loyalty.

- Amazing Marketing: Nike produces exciting ads, and uses sports stars to create excitement and
trust.

- Product Innovation: The company always finds new technologies (air soles, Dri-FIT fabric) that
improve performance and design.

- Direct Customer Connection (DTC): Their website, their apps, and their own store, are growing
very quickly granting them more control, more data and more profit.

- Global Operations: Nike’s size makes it easy for processing and sale globally.

- Financially Solid: Keen profitability of Nike is able to support substantial future growth
investment.

Weaknesses:

- Expensive Products: Pricing by Nike can put off some consumers, especially when the economy
turns down.

- Reliance on Shoes: Much of the sales is from footwear, thereby making it risky if there is a
drastic change to how shoe trends are.

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- Supply Chain Risks: With primary production in Asia, Nike becomes prone to factory problems,
shipping delays or political conflicts.

- Past Criticisms: Nike has come under fire for factory conditions, and must continue to show
ethical behavior.

Opportunities:

- Focus on Women: This portion has great growth potential. Produce more items that are
designed for women and advertise properly.

- Lead in Sustainability: Use “Move to Zero” to popularize good products that are eco-friendly
and improve the image of the brand.

- Better Digital Integration: Enhance functionality of app and examine virtual goods.

Threats:

- Tough Competition: Adidas and Lululemon as well as new brands pop up online are continuous
challenge.

- Economic Problems: The bottom line is that recessions, or high inflation, may result in reduced
expenditure on premium sportswear.

- Supply Chain Problems: Following next pandemics, trade wars or shipping shortages,
production and delivery may be disrupted.

- Changing Customer Attitudes: Consumer perceptions may change very quickly owing to social
or environmental issues.

- Fake Products: Counterfeit goods destroy sales and damage the reputation of brands.

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4. Market Analysis (External Environment)
4.1 PESTLE Analysis
- Political: Hiring of government to do things such as imposing trade tariffs between countries
like the US and China can raise Nike’s cost because many products are manufactured outside.

- Economic: The health of the world economy as a whole is critical. In recessions consumers
have less disposable income for non-essentials such as new sneakers. Inflation increases
material costs and shipping and staffing costs, and swings in the currency exchange rate affect
international sales.

- Social: Popular trends which focus on life style, and health and fitness, are in favor of Nike, too,
as well as the popularity of the athleisure style. Increasing interest of society in ethical business
practice calls for the use of transparency in sourcing and obtaining products as well as
production. Diversity and inclusion are becoming more important for brand image and social
media trends play a big role in determining the consumer’s wish list.

- Technological: Technology is essential for Nike. e-commerce websites and apps of a high
quality as well as the use of data for personalized marketing are needed. New ways of
producing, such are 3D printing will give an advantage in competition and fitness trackers, and
smartwatches create opportunities for app integration.

- Legal: Nike has to guard its brand name, logo Swoosh, and designs of it’s products. Labor laws
and sourcing regulations compliance, protection laws for consumers for products safety and
adverts are crucial. Nike’s utilization of customer information GDPR in Europe is regulated by
data privacy laws while the use of the environment is increasingly being regulated.

- Environmental: Climate change may average raw materials such as cotton and jeopardize
shipping. There is a high pressure to utilize resources sparingly, reduced waste (in form of
packaging) reduced pollution from factories and use more of sustainable materials (recycled
polyester). Nike’s “Move to Zero” program openly responds to these environmental pressures,
as consumer pressure and the need of government regulations.

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4.2 Porter's Five Forces Analysis
- Threat of New Entrants: Moderate. Branding oneself into a giant recognized globally like Nike
is difficult because of the high expense of brand creation, product innovation and global
management. However, it is possible for new brands to begin small, even online, targeting niche
markets (sustainable footwear) and some pressure continues to be exerted on Nike.

- Bargaining Power of Buyers: Moderate. There are many options for customers (Adidas, Puma,
etc.) who easily have the power to compare prices online. However, a lot of consumers are
faithful to Nike and will pay more for their products.

- Bargaining Power of Suppliers: Low to Moderate. The supplier’s power over Nike is limited by
its huge volume of material purchasing. Nonetheless, a supplier that offers a unique technology
or has only few of its kind to achieve scaling for complicated products has more negotiating
power.

- Threat of Substitute Products: Moderate. Consumer can buy cheaper and unbranded
sportswear or casuals of fashion brands instead of Nike. They may even use their money for
other hobbies other than sports gear.

- Intensity of Rivalry: High. Sports clothing market is competitive: Nike and Adidas constantly
strive to seize the existing market share. Lululemon is one threat among the emerging threat,
which include Puma, Under Armour and strong local brands.

5. Marketing Objectives
Based on our analysis, we propose specific, measurable goals for Nike's marketing efforts:

5.1 Short-Term Objectives (Next 1-2 Years: FY25-FY26)

- Boost Direct Sales: Achieve 55% of Nike Brand sales directly through Nike's website, apps, and
stores by the end of FY26.

- Grow Women's Business: Increase sales in the women's category by 15% annually for the next
two years.

- Increase App Usage: Raise the number of active users of Nike's main apps (Nike App, NRC,
NTC, SNKRS) by 25% over the next 24 months.

- Sell More Sustainable Gear: Increase the percentage of products sold that meet Nike's
sustainability standards by 5 points within two years.

- Win in Big Cities: Gain an average of 1.5 percentage points of market share across 15 key
global cities in the next 24 months.

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5.2 Long-Term Objectives (Next 3-5 Years: FY27-FY29)
- Stay number 1: Maintain the top global market share in athletic shoes and clothing through
FY28.

- Hit Sustainability Targets: Achieve the major goals set in the "Move to Zero" plan for FY28
(such as reducing emissions and using more eco-friendly materials).

- Grow in New Markets: Increase sales by 50% cumulatively over five years in 10 selected
emerging market countries.

- Increase Customer Loyalty Value: Enhance the average Nike Member's value in terms of
lifetime spending by 20% by FY29 through improved personalization and rewards.

- Lead in Connected Fitness: Establish Nike as the best brand for linking physical products with
digital fitness apps and experiences by FY28.

6. Target Market/Customer Analysis

6.1 Market Segmentation
Nike employs various strategies to segment its market:

- Geographic: Targeting specific continents, countries, and key influential cities worldwide.

- Demographic: Focusing on specific age groups especially younger adults aged 15-40, with a
significant emphasis on women and products for children.

- Psychographic: Targeting active individuals who value style, performance, achievement, and
sustainability.

- Behavioral: Analyzing purchase motivations (performance, fashion, comfort), frequency of use,

loyalty (e.g., Nike Members), and app and website engagement.

6.2 Target Market Selection

Nike focuses on certain groups including:

- Main Targets:

1) Serious athletes requiring high-performance gear.

2) Trends and sneaker culture-following style driven consumers generally younger.

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3) Out-of-doors enthusiasts on the move in search of comfy, adaptable gear.

- Important Growth Targets:

1) Women, a major area of emphasis.

2) Kids and teens – raising potential for future loyalty.

3) Consumers from emerging markets who are becoming more brand loyal to companies of the
world.

6.3 Positioning Strategy Summary

Nike dubs itself as the premier and most innovative brand for athletes, while at same time is
viewed stylish and cool. The firm uses technology and athlete narratives to validate the
performance credentials and design and cultural ties make the firm a fashion leader. Such dual
positioning makes Nike better appreciated as a premium and aspirational brand.

6.4 Customer Personas

To make these target groups more relatable, we created typical customer profiles:

- Alex (Performance Athlete): A mid-30s male runner obsessed with performance data and the
latest shoe technology like Vaporflys. He uses the Nike Run Club app daily and is willing to invest
in top performance gear.

- Maya (Style Seeker): An early 20s female student who eagerly anticipates sneaker drops on the
SNKRS app Jordans, Dunks, exciting collaborations. She follows trends on social media, valuing
fashion status and cultural relevance.

- David (Active Dad): A mid-40s male who exercises for health and buys gear for himself and his
children. He seeks reliable, comfortable, and versatile products, valuing quality and convenience
(preferring online shopping).

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7. Strategic Marketing Mix (4Ps)
7.1 Product Strategy
- Keep Innovating: Invest further in research and development, with clearly better performance
products on the back of the feedback from athletes (new Air soles, light fabrics, etc.).

- Focus on Sustainability: Use more recycled and environmentally friendly materials in popular
products. Encourage activities such as Nike Refurbished (used shoes sold) and show customers
sustainable product alternatives.

- Design for Women: Create more shoes and apparels made customized for women’s bodies and
needs instead of just shrinking down the size of men’s products.

- Connect Digital & Physical: Make products work flawlessly with Nike apps such as run tracking,
and delve into online items such as virtual sneakers on sites such as SWOOSH.

- Offer Customization: Create customer option of designing their own shoes using “Nike By You”.

7.2 Price Strategy

- Stay Premium: Still, keep decent prices for quality, innovation and image. Nike products’ worth
should be highlighted by marketing.

- Offer Tiers: Offer products at different price leveling; low price stuff that is affordable,
mid-range products and high-priced equipment.

- Smart Sales: Use discounts mainly in Factory Stores or in particular online sales. Instead of
discounts, engage Nike Members with pre-sales or earlier access or better deals to incentivize
more loyalty.

- Control Pricing via DTC: Direct sales give Nike more control of the price than it will be if it relied
only on other retailers.

7.3 Place (Distribution) Strategy

- Focus on Direct: Improve Nike’s website/app as the major shopping grounds – making them
user friendly friendly, personalized, and full of contents. Make Nike’s physical stores exciting
destinations (the way the “House of Innovation” do) or handy local hubs (the way “Nike Live”
do). This is at the core of the CDA strategy.

- Link Online and Stores: It is advisable that customers can have an effortless buying experience
online and then pick up their purchase in stores, make returns of online orders at the stores,

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and also check product availability at different platforms. The Nike Membership should have
seamless operation in all platforms.

7.4 Promotion Strategy

- Inspiring Ads: Keep churning out famous Nike ads that appeal to consumer values (“Just Do
It”), whether it’s a celebrity or a normal person. Digital video and social media are the foci.

- Use Athletes & Influencers: Support the best athletes worldwide and work with appropriate
musicians, artists and social media influencers that really connect with target audience.

- Create Experiences: Plan events such as group runs or trainings. Make flagship stores exciting
destination and provide special digital experience, possibly in the game or virtual reality.

- Sponsorships & PR: Sponsor major sporting events and make press releases on news products,
sustainability and community touchpoints.

8. Strategic Insights
- DTC is the Future: Direct to consumer sales are critical for brand control, customer data
collection, loyalty, and profitability. Nike should continue to invest a lot in this area.

- Sustainability Isn't Optional: Customers (and investors) would want brands to be at the
forefront of eco-friendly practices. Sustainability is good for both the planet and Nike’s brand
image.

- Apps Build Loyalty: Nike's apps (NRC, NTC, SNKRS) serve as more than just tools; Nike’s apps
(NRC, NTC, SNKRS) are not simply tools, they create community and engage customers long
after a purchase. This ecosystem is a great advantage.

The Women’s Market is Huge: Nike has a great opportunity to expand by actually paying
attention to female consumers with products, marketing, and experiences.

- Storytelling Wins Hearts: Nike’s special ability to tell inspiring stories is one of its strengths. The
company should keep on doing this practice but ensure that its narratives are in line with
contemporary values of inclusivity and purpose.

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9. Evaluation and Control
To ensure the success of this plan, Nike must closely monitor its progress.

9.1 Key Performance Indicators (KPIs)

We recommend tracking metrics such as:

- Sales: Overall sales growth, growth from DTC channels, and growth in the women's category.

- Profit: Gross margin (profit made on products).

- Market Standing: Nike's market share relative to competitors and measures of brand health
(how consumers perceive the brand – innovative? sustainable?).

- Customer Metrics: Number of active Nike Members, customer lifetime value (CLV), app usage,
website conversion rates, and social media engagement.

- Strategic Goals: Progress in selling sustainable products and achieving "Move to Zero"
environmental targets.

9.2 Monitoring and Reporting

Monitor digital results daily/weekly, review overall sales and marketing campaign outcomes
monthly, and conduct in-depth analyses quarterly to assess progress against goals and
competitor actions. A comprehensive review should occur annually.

Utilize data from sales systems, website/app analytics, customer surveys, social media
monitoring tools, and market research firms.

Different teams (marketing, digital, sales, finance) should be responsible for tracking and
reporting relevant KPIs.

9.3 Contingency Planning

Stay vigilant regarding potential risks (such as economic downturns, supply chain disruptions, or
significant competitor actions).

Prepare backup plans for the most likely or damaging risks.

Maintain flexibility in marketing budgets to reallocate funds based on performance and market
conditions. Establish clear 'warning signs' (like declining market share) that trigger a strategy
review.

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10. References
1.​ Nike, Inc. (2023). FY23 Annual Report (Form 10-K).
https://investors.nike.com/investors/news-events-and-reports/reports/annual-reports/default.a
spx
2.​ Nike, Inc. Investor Relations Website & Presentations. https://investors.nike.com/
3.​ Nike Newsroom. https://news.nike.com/
4.​ Nike Purpose Website (Sustainability & Impact Reports). https://purpose.nike.com/
5.​ Adidas AG Annual Report & Investor Relations. https://www.adidas-group.com/en/investors/
6.​ Lululemon Athletica Inc. Annual Report & Investor Relations. https://investor.lululemon.com/
7.​ Statista. Sportswear Market Reports & Statistics.
8.​ https://www.statista.com/
9.​ Euromonitor International. Apparel and Footwear Industry Analysis. (Subscription required).
https://www.euromonitor.com/
10.​McKinsey & Company. State of Fashion Reports.
https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion

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