Final Marketing Plan

Marketing Milestone 3 - Nike Company

Varshith Cherukuri

New England College

Professor – Dr. Bari Courts

CRN149 – Marketing Strategies

October 25, 2021.

Definition of 4 Ps

Having established its marketing strategy around four Ps (promotion, place, price, and product), Nike company must also align them with its marketing mix strategy to achieve set goals. “A marketing mix is a collection of marketing instruments that businesses employ to carry out their marketing strategy” (Keller & Swaminathan, 2020). Nike manufactures products for men, women, boys, and girls, as well as children. Sports shoes, socks, sports bras, coats, backpacks, gloves, and other athletic apparel comprise the majority of their products. Shoes, clothes, equipment, and accessories are among the organizational outputs available to target customers. Sports shoes are the dominating wear for Nike company. It is through continuous efforts over the years it has established and positioned its brand globally. For example, it targets a wide range of sports to supply its sports products, including cricket, cyclers, tennis and basketball.

Price policy inevitably evolved as the firm grew. Nike is now firmly planted on the ground and is the industry's dominant player. When other firms cut their profit margins, Nike raises product prices, resulting in higher profits; at least, that is what the financial report for the first quarter of 2015 shows (Borts, 2018). The firm caters to a high-end consumer base with plenty of cash to spend. The market customer desires high-quality service and fulfilment. As a result, it manufactures high-quality products that meet targeted market tastes and preferences at a relatively high cost. The high price of innovation, research and development may explain the company's large profits. Discounts throughout specific seasons, depending on the geographical location of the retail establishments, are also an important component of the price strategy.

The place is another component of the four Ps. Nike is a multinational organization; therefore, it's understandable that creating a distribution channel capable of effectively serving retail outlets is a critical element of its operations. Nike developed the following distribution places, considering available and accessible platforms for its immediate consumers. It has factory outlets, online shopping, and retail (showrooms, mega markets, brand outlets and stores) stores (Standaert, 2021).

Nike also uses its promotion strategy, a component of 4Ps, to market its products. The majority of individuals around the globe are undoubtedly familiar with their advertising slogan, "Just do it." public relations, sales promotion, advertisement campaigns, and advertising tactics are examples of promotion tools. In addition, celebrity endorsements such as Ronaldinho, Roger Federer, Ronaldo, Tiger Woods, Michael Jordan, and Maria Sharapova, among others, are used by the firm (Borts, 2018). Nike utilizes product placement in movies and sponsors teams like Barcelona, in addition to individual players. Sponsorship of various sporting events, the construction of a stadium, and many more advertising methods are available. As can be seen, Nike promotes its products in every imaginable way, and the amount of money spent on advertising and marketing is enormous.

Impact of COVID-19 pandemic on the 4Ps

The four Ps have long been used as a foundation for evaluating and tweaking a marketing plan. Faced with the extraordinary disruption created by the COVID-19 epidemic, Nike has taken the opportunity to re-evaluate its marketing strategy and guarantee that the 4Ps are properly positioned in the worldwide market.

Nike's products and services evolve gradually under normal circumstances. However, the COVID epidemic has completely disrupted the usual evolution cycle for a variety of reasons. Nike Company has had to alter its product marketing road maps due to unexpected changes in customer behavior. For example, Nike had to modify its products for online sales and, in the case of service marketing via online delivery, for service promotion. Nike's rethinking products or services marketing approach has positioned it in the online global market since many customers will continue to purchase online.

“Location, location, location,” as the old adage goes. However, the COVID crisis demonstrated that geography might be a double-edged sword. The crisis had a particularly negative impact on Nike products sold in shopping centers. Stores in the commercial streets, on the other hand, are reopening a little faster. Nike has accomplished the following: To assist engagement and information gathering activities from afar, provide more online educational content and FAQs. As another step, it developed online alternatives to in-person activities (e.g., self-guided demos, instructional videos). Finally, when a chat was not previously available, it has been added, as well as increased chat and phone support hours (Craven et al., 2020).

Nike's operational and supply expenses have risen as a result of the COVID problem. Due to the current state of the economy and difficulties, customers are exercising greater care when making purchasing decisions. Though the price is sometimes the most important consideration, the timing and events of the spending are equally critical. In the face of Covid-19, Nike Company's pricing strategy includes: lowering pricing and extending free trials even if margins are lower to support higher average order volumes; providing customers with financial options by delaying payments; and improve overall customers by changing ancillary fees (Craven et al., 2020).

Finally, the first reaction to COVID was to reduce marketing spending drastically, but this was not the greatest option for many companies. People nowadays like to buy things online. Nike uses ads to sell its products and takes advantage of this by making customized items available online. Customers are placing orders for items of their choice online, which is helping Nike make money.

Examining Nike Company promotional mix and whether it will change as we come out of the pandemic and buying perhaps shift to some degree again

Nike has a unique promotion mix. They employ well-known athletes to market their products, and they're also known as the 17 components, named after well-known players and coaches who represent their product. They've also included the swoosh, which is so well-known that anybody who sees it immediately recognizes the organization it represents. There is no need for another slogan. This has had a significant positive impact on the business. Hundreds of Nike advertisements may be found on television, the internet, and printed documents. Most of Nike's products have been promoted through advertisements. I don't think the company's promotional mix will change as a result of the epidemic because Nike expanded its digital approach and direct sales and tailored its messaging to the "new normal." Nike established various digital platforms for customers to engage with the brand's biggest influencers: high-performance athletes (Arcieri, 2020). After COVID-19, the world will be a different place, and Nike wants to fit in the “new normal” marketing environment by building an iconic brand that, even after the pandemic, will maintain and promote a lifestyle status.

Conclusion

Globally, Nike has grasped the customer’s attention as the main producer and distributor of quality sportswear. Its trademark is regarded as the most valuable in the apparel business. Over the years, the company has grown favorably. However, increasing rivalry in this area is creating severe problems that may have an impact on the company's market operations. Developing an efficient marketing plan that is responsive to dynamic environmental forces is the best method to manage the challenges posed by external environmental factors. Marketing planning is a complicated process that needs a well-defined strategy in order to be successful. Collecting relevant information regarding internal and external environmental factors is necessary for developing an effective plan. This will assist Nike in making a well-informed decision throughout the planning process.

References

Arcieri, K. (2020). Nike levels up the digital game in wake of coronavirus hit. From: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/nike-levels-up-digital-game-in-wake-of-coronavirus-hit-59265634

Borts, A. I. (2018). Nike, inc.-athletic footwear and apparel (Doctoral dissertation).

Craven, M., Liu, L., Mysore, M., & Wilson, M. (2020). COVID-19: Implications for business. McKinsey & Company, 1-8.

Keller, K. L., & Swaminathan, V. (2020). Strategic brand management: Building, measuring, and managing brand equity. Harlow: Pearson.