Marketing Audit Of Nike Samples for Students †MyAssignmenthelp.com

Question: Discuss about the Marketing Audit Of Nike organization. Answer: Introduction In todays business environment, each and every business organization needs to createmarketing plan to stay competitive in the industry. When they introduce anything new then they need to take the assistance of tis marketing plan to bring new products and services to marketplace. This report includes differentmarketing aspects about the Nike Organization that was chosen in the previous assessments. Nike is one of the most popular brands that offer a variety of sports shoes and products. The company is planning to diversify its product range with the introduction of new product i.e. Heating Boots. This report includes the mission and vision of Nike Organization. Moreover, marketing audit is conducted by the use of different marketing tools. At the end, a high level marketing plan is prepared in context to new product of Nike Organization. Company description, Mission and Vision Nike is a well-established company that was founded in United States of America in the year 1969. The organization is engaged in designing, manufacturing and developing the footwear, equipment, accessories and services. The major products of Nike are to provide athletic footwear, shoes and equipment (Deng, 2009). The organization is operating its business in various countries such as Japan, China, Europe, India, New Zealand and other emerging markets. The mission statement of this company has developed over the time to accurately show the position of business position. The mission statement of Nike is to bring innovation and inspiration to each and every person in the world. The mission statement of the company indicates the strategic objective of reaching out to the sport shoes and equipment (Dawes, 2009). This CSRs vision statement of the company is to assist Nike and its customers to prosper in a sustainable economy where profit, people and planet are balanced. Now, the organization needs to create and publish a formal vision statement to inform investors and employees about what the business purposes to be in the future in context to the international market for sports shoes and equipment (Datta, Ailawadi, van Heerde, 2013). To attain its mission and vision, Nike is implementing effective strategies and it is going to introduce a new product i.e. Heating Boots. Marketing Audit; Current Marketing Objective and Strategies The current marketing objective of Nike is to focus on offering higher quality products on low prices so that it can gain a significant market share in the industry (Ambat, et al, 2017). To attain this marketing objective, the organization has adopted effective marketing strategies which are given below: Product: Currently, Nike is focusing on sports and athletic shoes and apparel. The products of the company are designed in the factories which are situated nearby the raw material deposits so that they can reduce the costs of production (Chowdhury, 2013). Its current products are focused on Soccer, Tennis, Football, Basketball and other athletic uses. Price: Nike has created its pricing strategy to compete with other brands like Adidas and to offer affordable and quality shoes to the customers. Place: To distribute its products to the final customers, Nike has established more than 20,000 stores all over the world. It provides its products through auxiliaries, licensees and individual (Cwinkler, 2013). Promotion: Promotion is the most important part of companys marketing strategy. It uses different types of online media to promote its products. It includes online ads, commercials and its own website. It is also using brand endorsements to promote its products all over the world. External Environmental Analysis: PESTLE Analysis Political Factors In most of the major markets, stable political conditions offer various opportunities for Nike to grow its business. In addition to this, free trade policies assist the organization in better market penetration in foreign markets. Enhancing government assistance for infrastructure in developing nations provides Nike various opportunities to expand its operations in these markets. Economic Factors There are some developed markets like; United States which are stable that provide Nike a stable growth in these nations. In the high developing nations, the company may have opportunities to enhance its operations. But these markets are threatening Nike by increasing costs of labor. For example, economy of China has threatened the performance of Nike Company (Jain, Haley 2009). Social Factors Today, the people are adopting healthy life style and they prefer to buy the sports shoes and apparel for their Gym and exercise activities. It has improved the business of Nike significantly. Considering the needs of people, this company can implement new product development strategies to fulfill the needs leisure activities products. Technological Factors The competitors of Nike are making investment in research and development activities. Through this, they are adopting new and modern technology that has threatened the performance of Nike in global business environment. Nike can use updated technology to make advancement in its products and services. Legal Factors The company needs to comply with different laws and regulations in different countries. It creates a complexity for the organization. Changes in the employment laws have increased the cost of labor for Nike. This factor offers Nike an opportunity to implement higher standards of employment and labor (Westwood, 2016). Environmental Factors The organization is already engaged in environmental sustainability and corporate social responsibility. By using these programs, the company can attract the people towards its products and services. Marketing Objectives By looking at the above analysis, it can be analyzed that Nike should establish a new marketing objective for future growth. Till now, Nike is operating its business by focusing on the sportswear and sports shoes (Deng, 2009). Under its new marketing objectives, the company will introduce a new product in the market i.e. Heating Boots. The company will establish some marketing objectives for its new products: To develop its customer base by the targeting new audiences for heating boots. To gain a significant profit margin in the first year of introduction of heating boots. To become more popular and trendy with heating boots that will serve the needs of every customer in the market. The company will introduce a new product in the market i.e. Heating Boots for travellers and other people (Sorrel, 2009). Ansoff Matrix Under Ansoff Matrix, the company will focus on two major strategic directions: Product Development From the beginning of its operations, Nike is using product development strategy. The company is continuously introducing new products to compete with rivals. Now also, the company should develop its product range by including Heating Boots for all groups like women, men and children. With this product, the major objective of the Nike will be to keep the feet of people warm in cool environment. So, it will target both senior citizen and young generation as well. In this way, it should add new products to its product portfolio so that it can grab the attention of more customers (Huang, Sarigll, 2014). Diversification Diversification is one of the most important options that Nike can choose for its new marketing objective. The organization will offer its new products in new and emerging markets so that it can enhance its brand presence all over the world. However, it will be risky for the company but it will be good if it works. Thus, the above strategies will assist the organization in approaching the mission and vision of Nike. It will help the organization to bring innovation for each and every person in the world. Marketing Plan: Customer Segments and target market Under this, Nike will identify its targeted customer by the use of different segmentation characteristics. Different characteristics of customers are stated below: Demographic Under this segmentation, Nike will target the customers on the basis of age, gender and income of people. For its Heating Boots, the company will primarily target the customers between the age of 10 and 60. It will manufacture the Heating Boots by targeting both male and females. The customers will be the people who will be able to give worth prices for its new and quality products (Lu, Liu, Rahman, 2017). Geographic The organization will use geographic segmentation to market Heating Boots in nations, cities, regions and populations in different manner. For instance, it will focus on tourists in Europe and Norway. In the winter season, the temperature of both places remains slightly above freezing. Thus, the company will primarily emphasize on the tourist places which are the coolest. Psychographic Under this segmentation, the company targets the people with specific personalities, interest and lifestyles. For its new products, the organization will target the people travels to the cool places for leisure activities. It will supply the Heating Boots during the winter season in America (Sorrel, 2009). Behavioral Under behavioral segmentation, Nike will consider the benefits sought and customer loyalty. The benefit expectations of companys new product are that Nikes products can make the peoples feet warn in the cold environment and winter season. The company seeks to create customer loyalty through its new products. Market Positioning With this new product, Nike will position itself as a premium brand that is going to introduce new and innovative product for the mass population i.e. Heating Boots. It will manufacture this product in an effective way which will fulfill the needs of niche market. The color and brand logo will entice the targeted audiences to purchase this product with the creativeness and confidence. It will create an effective positioning statement that will create a positive image in the mind of customers. Nike will offer Heating Boots which will keep the customers feet warm during their outdoor and leisure activities. In this way, the company will use functional positioning under which it will fulfill the needs or demands of leisure travellers (Peteraf, Gamble, Thompson, 2014). Market Mix for Selected Products For its new products, the company will implement new marketing strategies, which are stated below: Product As mentioned above, Nike is going to introduce its Heating Boots in the market. It will be an innovative and creative product in the footwear industry. The organization will incorporate updated technology in Heating Boots. There will be electric blanket in the boots which will be operating with battery system (Sorrel, 2009). This product will be able to fulfill the needs and demands of customers for heating their foot so that they can enjoy their trip in cold atmosphere. The product will definitely assist the Nike in attaining its mission and vision. Price Because of its exclusive style, design and advertising, Nike utilizes both competitive and skimming pricing. In the beginning, it will use skimmed pricing strategy (Gordon, 2012). As it is an innovative product in global footwear industry so company will give offers and discounts on purchasing of two pair of Heating Boots. Place Nike will offer its new products i.e. Heating Boots through retail outlets. In addition to this it will open its own stores which will sell its new products. By establishing extensive distribution channels, Nike will make efforts to approach more customers (Lu, Liu, Rahman, 2017). Promotion The company will use effective advertising and promotion strategies. It will use both offline and online media for promoting its products. Moreover, it will partner with the tourist agencies so that they can make the people aware about this new product. When the customers will contact these agencies, they can buy the Heating Boots for their trip to cool places (Westwood, 2016). IMC Plan In addition to above marketing strategies, the Nike will create an Integrated Marketing Communications (IMC) plan to communicate its brand message to the targeted customers. The company wants to state that we consider the health needs of our customers at the center of what we do. To advertise its Heating Boots, the company will use different media channels which are discussed below: Media Channel Benefits Social Media Nike can promote its new products on social media platforms such as Facebook Instagram Twitter as most of the people are active on internet. Television Television is the easily approachable media that can cover mass population. It is cost effective mode of advertising (Fine, 2017). Print media Nike can post the ads in newspaper and magazines which are read by the people who are not using social media sites. This is an effective way through which company can approach most of the leisure travellers. Events and sponsorships Events and sponsorships are the most effective way to reach the sports lovers and travellers all over the world (Keller, 2010). This IMC plan will assist Nike in approaching a large population all over the world and company can promote its products effectively. Under this IMC plan, the organization will focus on the actions where Heating Boots spread the awareness of the significance of heating blanket in cooling environment and winter season. Conclusion From the above analysis, it can be concluded that Nike is a leading player in the sportswear industry. The company is using effective strategies to market its products among targeted population. The above report includes different marketing aspects about the Nike Organization. The above report concludes that company can increase its customers base and market share by introducing this new products range of Heating Boots. References Ambat, L. M. C., Cabagnot, T. R., Flores, D. J. C., Tiong, R. C. F. (2017). 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