01.

Introduction

Nike is a leading athletic apparel and footwear company with a global presence and a strong
brand reputation. To maintain its competitive edge and grow its market share, Nike must
continuously refine its marketing strategy to meet the evolving needs and preferences of
consumers. This assignment outlines a strategic marketing plan for Nike over the next two
years with the goal of increasing market share and gross sales while providing superior
consumer value compared to the competition. The plan includes a market analysis,
identification of opportunities and challenges, segmentation, targeting, and positioning
recommendations, development of a marketing budget and execution plan, as well as a
performance management plan.

02. Demonstration of the current position of Nike Brand

02.1 Brand Competes

Nike is a major player in the athletic footwear industry and competes with other well-known
brands such as Adidas, Puma, Under Armour, Reebok, and New Balance.

Figure 1 Brand Competes

(D. Tighe, 2022)

02.2 Nike’s Market Size and Growth

The global athletic footwear market size was estimated at USD 66.3 billion in 2020 and is
projected to grow at a CAGR of 5.1% between 2021 and 2028. Nike is one of the largest
players in the market, with a reported revenue of $44.5 billion in the fiscal year 2021.
02.3 Consumer Behavior and Competitor Analysis

Consumers in the athletic footwear industry tend to prioritize comfort, style, and performance
when selecting their shoes. Nike has been able to appeal to consumers by consistently
delivering innovative products that meet these criteria. In terms of competitor analysis, Nike
has a strong brand image and market share, but Adidas and Under Armour have also been
successful in capturing market share in recent years.
02.4 Pricing, Profitability, and Value Propositions

Nike's pricing strategy is a mix of premium pricing and value-based pricing. The company
positions itself as a premium brand with products priced higher than many of its competitors.
Nike's profitability is strong, with a gross profit margin of 45.8% in the fiscal year 2021. The
company's value propositions include high-quality products, innovative technology, and a
strong brand image.
02.5 Market Shares of Competitors

Figure 2 Market Shares of Competitors

(Khaveen Investments,
2022)
02.6 Present Positioning Compared to Competition

Nike is known for its innovative products, strong brand image, and celebrity endorsements.
The company has a wide range of products catering to different segments of the market, from
casual wear to high-performance athletic shoes. Nike's positioning in the market is relatively
stable compared to its competitors, although the company faces increasing competition from
newer entrants such as Allbirds and Hoka One One.
(D. Tighe, 2022) (Cascade Team, 2023)

03. PESTEL & SWOT analysis and Nike’s workable opportunities

03.1 PESTEL
Figure 3 PESTEL

(BUSH, 2016)

03.2 SWOT

Figure 4 SWOT

(S. K. Gupta, 2023)

03.3 Workable Opportunities

 Expansion into Emerging Markets: Nike should focus on expanding its presence in
emerging markets like China, India, and Brazil, where interest in sports and fitness is
growing. By entering these markets, Nike can increase its sales and market share.

 Increased Focus on Sustainability: Nike should continue to invest in sustainable and

eco-friendly products to meet the growing demand from socially and environmentally
conscious consumers. By differentiating itself from competitors through its
sustainability initiatives, Nike can increase its market share and customer loyalty.

 Expansion of Customization Options: Nike should offer more customization options

to its customers to enhance their experience and increase customer loyalty. By
providing more personalized options, Nike can differentiate itself from competitors
and increase its customer base.

 Investment in Digital Technologies: Nike should continue to invest in digital

technologies and e-commerce capabilities to enhance its online presence and improve
its customer experience. By offering seamless online shopping experiences, Nike can
increase its e-commerce sales and customer loyalty.

 Expansion into New Product Segments: Nike should explore new product segments
such as outdoor and athleisure to diversify its product portfolio and appeal to a wider
audience. By expanding into new segments, Nike can increase its revenue and market
share.
These opportunities can be quantified by setting specific goals and metrics such as revenue
growth, market share, customer satisfaction, and sustainability targets. For example, Nike
could set a goal to increase its revenue from emerging markets by 10% over the next two
years or to increase its customer satisfaction scores by 5%. (Nike Team , 2023)

Figure 5 NIKE shoe

 04. Quantification of opportunities via setting marking objectives
Below are some specific marketing objectives for Nike that can help to quantify the
opportunities analyzed using the SMART criteria.
04.1 Increase sales of sustainable products by 20% over the next year:

Figure 6 Objective 01
04.2 Increase market share in emerging markets by 5% over the next two years:

Figure 7 Objective 02

04.3 Increase online sales by 15% over the next year:

Figure 8 Objective 03
04.4 Increase sales of athleisure wear by 10% over the next year:

Figure 9 Objective 04

04.5 Increase sales to women by 15% over the next year:

(EMBA Pro,

2022)

Figure 10 Objective 05
 05. Strategy development and justification.
This marketing plan will focus on the next two years and provide details on how Nike can
achieve its objectives, grow its market share, and maintain its competitive advantage.
05.1 Objectives

 Increase revenue by 10% annually for the next two years.

 Increase market share by 2% annually for the next two years.
 Enhance brand reputation by maintaining a positive brand image and increasing
consumer engagement.
 Expand product offerings by introducing new designs and product lines.
 Enhance sustainability efforts by incorporating more eco-friendly materials in its
products.

05.2 Strategies

Figure 11 4Ps

(GREGORY, 2022)

05.3 Segmentation
The market segmentation for Nike can be done based on demographics, psychographics, and
behavior. Nike's target market includes athletes and sports enthusiasts. The demographic
segment would include age, income, and occupation. The psychographic segment would
include attitudes, values, and lifestyle. The behavioral segment would include the benefits
sought, usage rate, and loyalty. The following are some possible segments: (Wells, 2022)
  Demographic segmentation: Age, income, and occupation
 Psychographic segmentation: Attitudes, values, and lifestyle
 Behavioral segmentation: Benefits sought, usage rate, and loyalty

Figure 12
Segmentation

(Start.Io, 2022)

05.4 Targeting
Based on the
segmentation,
Nike's primary
target audience
would be active
athletes and
sports
enthusiasts
between the
ages of 18 to 34
with a moderate
to high income. This
target audience is
more likely to be
interested in
purchasing athletic
footwear and apparel
from a brand that
offers high-quality
products, innovative
technology, and
stylish designs. Nike will also target secondary audiences such as health enthusiasts, fashion-
conscious consumers, and casual wearers.
Figure 13 Targeting

According to a survey conducted by Statista in 2020, Nike was the most popular athletic
footwear brand among consumers aged 18 to 29 in the United States, with a market share of
53%. Nike's market share is higher than its competitors, such as Adidas, Puma, and Under
Armour, which had market shares of 14%, 4%, and 3%, respectively.
(Wondershare EdrawMind, 2022) (Start.Io, 2022)

05.5 Positioning
Nike's positioning strategy will focus on its brand identity, innovation, and technology. Nike
will position itself as a brand that offers the best athletic footwear and apparel in terms of
design, performance, and innovation. Nike will emphasize its brand identity and heritage by
highlighting its history, success stories, and endorsements by professional athletes. Nike will
also highlight its sustainability efforts by incorporating eco-friendly materials in its products.
 According to a 2021 Forbes
survey, Nike was ranked as
the most valuable apparel
brand in the world with a
brand value of $34.8 billion.
Nike's brand value is higher
than its competitors, such as
Adidas, which had a brand
value of $16.7 billion, and
Puma, which had a brand
value of $4.9 billion.
(Wells, 2022) (Start.Io, 2022)
Figure 14 Positioning

The segmentation, targeting, and positioning strategy proposed for Nike is justified based on
the following factors:
Consumer preferences: Nike's target market includes athletes and sports enthusiasts who
value high-quality products, innovation, and design. Nike's focus on innovation and
technology has been successful in attracting this target audience and has helped the brand
maintain its Leading position in the sportswear and footwear market.
Market share: Nike's market share is higher than its competitors, which indicates that the
brand has a strong presence in the athletic footwear and apparel market. Nike's marketing
strategy, which includes celebrity endorsements, product innovation, and social media
marketing, has contributed to its market share growth.
Brand reputation: Nike's brand reputation is strong, and the brand is associated with high-
quality products, innovation, and style. Nike's focus on sustainability has also helped to
enhance its brand reputation and appeal to consumers who are conscious about the
environment.
Competitive advantage: Nike's ability to introduce new products and designs that meet the
changing needs of consumers has helped it stay ahead of its competitors.
The proposed segmentation, targeting, and positioning strategy for Nike is supported by
consumer preferences, market share, brand reputation, and competitive advantage. By
focusing on innovation, technology, and sustainability, Nike can continue to be a leader in the
athletic footwear and apparel and maintain its competitive advantage over its rivals. (Wells,
2022)

06. An execution plan for Nike and marketing budget

06.1 Execution Plan for Nike
The execution plan for Nike's marketing strategy would include the following steps:
Develop a comprehensive marketing calendar to plan and track all marketing activities for the
next two years. The calendar should include key dates, events, and product launches.
Launch a new product line that aligns with Nike's sustainability goals, as this is a growing
trend in the industry and will attract environmentally-conscious consumers. The launch
should be accompanied by a marketing campaign highlighting the product's sustainability
features.
Leverage social media platforms to engage with consumers and promote Nike's products.
This includes creating content that resonates with Nike's target audience and encourages them
to share it with their followers.
Increase brand visibility through targeted advertising campaigns on various channels,
including television, digital, and out-of-home media. The ads should focus on Nike's brand
values and the unique features of its products.
Create a loyalty program that rewards customers for their purchases and encourages repeat
business. This program could include exclusive access to new products, early access to sales,
and personalized promotions.
Partner with retailers to showcase Nike's products in-store and online. This includes
developing co-branded marketing campaigns and creating in-store experiences that align with
Nike's brand values.

06.2 Marketing Budget

The marketing budget for Nike's footwear division for the next two years should be allocated
as follows:

Figure 15 Marketing Budget

The budget is based on the need to drive growth in sales, profit and market share while
providing superior consumer value compared to the competition. The budget allocation for
product development is aimed at the launch of a new product line that aligns with Nike's
sustainability goals. The advertising budget is significant to ensure the brand's visibility
across various media channels. The budget allocation for influencer marketing, social media,
and loyalty programs is aimed at strengthening brand awareness and consumer loyalty. The
budget allocation for retail partnerships is aimed at expanding Nike's reach through
partnerships with retailers.
The budget allocation is subject to adjustment based on the performance of each marketing
initiative and the evolving market dynamics.
(Kasi, n.d.)

07. Nike’s KPIs and suggested plan for performance management

07.1 Key Performance Indicators (KPIs)

Figure 16 KPI

07.2 Performance Management Plan

Regular tracking of KPIs: KPIs should be tracked on a regular basis, and any deviations from
the target should be analyzed to identify areas that require improvement.
Performance review meetings: Regular performance review meetings should be held to
discuss the progress of the marketing strategy and to identify areas for improvement.
Continuous optimization: Based on the insights gained from performance review meetings,
the marketing strategy should be continuously optimized to ensure that it is aligned with the
business objectives.
(Mind Tools Content Team, 2022)
07.3 Key Points to Digital Marketing
Figure 17 Digital Marketing

08. Conclusion

In conclusion, Nike's marketing strategy for the next two years should be focused on
expanding into emerging markets, increasing focus on sustainability, expanding
customization options, investing in digital technologies, and expanding into new product
segments. These strategies will help Nike increase its gross sales, bottom line and market
share while providing superior consumer value compared to the competition.
To achieve these objectives, Nike should segment its market based on demographic,
psychographic, and behavioral factors, target each segment with customized marketing
campaigns, and position its products as premium, high-quality, and sustainable. Nike should
also monitor KPIs such as revenue growth, market share, customer acquisition and retention,
customer lifetime value, website and social media engagement, customization rate,
sustainability metrics, and net promoter score to track the success of its marketing strategy.
By following the suggested plan for performance management, Nike can optimize its
marketing strategy and achieve its objectives in the next two years. Overall, Nike's strong
brand reputation, innovative products, and commitment to sustainability provide a strong
foundation for growth and success in the highly competitive athletic apparel industry.