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Staci Culp September 30, 2020
Marketing Plan, Part 1
Company Profile
Company Name: Nike
Industry: Apparel
Major products and/or services (names, types): shoes, clothing
Products and/or services your marketing plan will focus on shoes
Target customers: athletes
Distribution channel(s): retail stores, online
Headquarters (city, state, country): Beaverton, OR
Year founded: 1964 (Blue Ribbon Sports) 1971 (Nike)
Number of employees: 75,400
Annual revenue (estimated): 37B
Key competitors: adidas, puma, new balance, reebok
Link to Web site: www.nike.com
Link to Yahoo! Finance information page (for
public companies): https://finance.yahoo.com/quote/NKE
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Nike influences customers on their cognitive level and solves more just the basic need for
apparel. It motivates them to work harder for their physical development. It gives them a
sense of trust which motivates them to push beyond their stamina. Thus, it is more of a
cognitive need rather than basic need solving.
Main customer segments for Nike:
Nike’s target audience consists of a significant part of women. In the financial year 2019, the
section for female training expanded faster than for males. During fiscal 2018, however, the
men’s education market expanded more steadily. The fiscal year of Nike expires on 31 May.
Young athletes also play a major role in the selling strategy of Nike to ensure future success,
especially in areas such as soccer, basketball and running. Young people also belong to the
target audience of Nike. Later in this post, we will discuss these incentives and their potential.
In 2003, Nike purchased Converse. The product range of the company concentrates on the
luxury target market. Casual clothes and footwear items are included, which are athletic but
not highly effective. Converse has lost ground to brands like Vans in North America.
Adventure sports like surfing and skateboarding are Hurley’s target audience.
Nike’s Jordan Range is also a luxury label line for athletes named after Michael Jordan, the
basketball phenomenon. Nike also has developed various merchandise lines that celebrities
like LeBron James endorse. Such value lines are targeted at sportsmen and women.
Most consumers aged 15–45 years are the target market of Nike. In recent years, Nike’s
commercialization efforts have concentrated on digital space. The firm’s push towards digital
sports and e-has led to high technology.
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Along with Apple (AAPL), the firm also launched the Nike+ operating tracker. The Nike+
Fuel Band was also released. Also, worth mentioning, the fitness apps such as Nike+ Sport
Watch GPS and Nike+ Fuel Band have also been discontinued in the last year.
Key segments within this market
• Women
• Young athletes
• Runners
Factors Influencing Purchasing Power:
• Supply & Demand
• Credit & Interest Rates
• Inflation
• Percentile of Income
• Family Structure
• Urbanicity
• Current Work Status of Respondent
Economic Environment of Nike
The success of Nike’s market depends on where it markets its footwear, equipment, and
clothing. This portion of the evaluation type for PESTEL describes the financial concerns that
impact the company’s remote and macro environment. For Nike’s results, the following
external economic factors are significant:
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1. Developed market economic stability (opportunity)
2. Fast demand increase (opportunity and threat)
3. The Chinese market slowdown (threat)
Developed markets such as the USA are relatively stable, thus demonstrating that Nike Inc.
can continue its steady yet consistent growth. The organization also has the potential to
rapidly expand in high growth developed countries by growing its activities. Nevertheless,
Nike is still challenged by fast demand growth and increasing costs of labor in the supply and
manufacturing side of the company. Moreover, the downturn in the Chinese market is
affecting the success of Nike, which now relies heavily on the Chinese market for sportswear,
footwear, and accessories. The international economic conditions in this portion of the
PESTEL analysis suggest that Nike Inc. continues to prioritize global development
approaches while exploring new methods of catalyzing development.
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Staci Culp November 1, 2020
Marketing Plan 2
MARKETING INFORMATION AND RESEARCH
Research Question: How can Nike broaden their customer base to include women?
Information Needed: Target market, Demographics, Interest Surveys
