What are the pros, cons, and risks associated with Nike’s core marketing strategy?

What are the pros, cons, and risks associated with Nike’s core marketing strategy?

Ø INTRODUCTION OF NIKES BRAND

Nike is a major publicly traded sportswear, footwear and equipment supplier based in the US which was founded in 1962 originally know as Blue Ribbon Sports. Nike produces a wide range of sports equipments such as running shoes, sportswear, football, basketball, tennis, golf, etc. Nike recently teams up with Apple Company to produce the Nike+ products which can monitor a runner's performance through a radio in the shoe that can link to the iPods. Besides that, Nike also becomes the top of three companies which are climate-friendly companies which build better image to customers. 

Ø PROS OF NIKE'S CORE MARKETING STRATEGY

 Nike actively responds to the market trends and changes in consumer preference by adjusting their marketing strategies, the mix of existing product offerings, developing new products, styles and categories, and influencing sports and fitness preferences through various marketing strategies.

·        Nike's core marketing strategies 

DISTRIBUTION

 Nike distributes its products on different level basis. The high premium products are given to a certain distributors while leaving the low priced to be sold at highly discounted price at the retail stores such as Wal-Mart (Jeannet J, 200, pp 44).

ADVERTISING AND PROMOTION

Nike makes contracts with some celebrity athletes which can draw attention to their products such as Tiger Woods, Ronaldo.  Their aggressive advertising campaigns, celebrity endorsements and quality products all enhance their brand and image. For example, when a celebrity athlete sponsors a specific brand of athletic shoes, the brand will be associated with success.

PRICE

Nike targets on the consumers who care more about the utility and quality of the products rather than the price. In this way, the price is not affect too much.

MARKET SEGMENTATION AND TARGET

Most of the consumer of Nike's products is mainly athletic. Nike is the master of segmentation, their segmenting market typically target's athletes, both women and men from the age 15 to 35. Nike's targeting market is active people who enjoy high quality sporting goods, especially footwear. Nike focuses on creating premium consumer experiences on product innovation, brand leadership and elevated retail presence.

·       CONS OF NIKE'S CORE MARKETING STRATEGY

Although Nike's marketing strategies had brings lot of positive implications to the company, but it will bring negative implications to Nike too. The negative implications that will identify in this assignment are high cost incurred, influence of spokesperson, and competitors.

COSTLY

 The costs are increase among handling inventory, designing, advertising and production. (Abhiroopsur, 2009) Beyond that, the inflation had raised the costs of raw materials and transportation. To deal with these problems, Nike has increased the products' prices and reduces its marketing budget. Therefore, this could hurt the long-term growth of the Nike.

INFLUACE AND SPOKEPERSONES

 The athletes had positive and negative influence on changing consumer preferences, changes in consumer tastes and priorities, and also consumers' buying decisions. The action and attitude of Nike's chosen spokespersons could bring the impacts on its promotional strategies. For instance, it will attract the athlete's idolater to purchase the products if Nike using a popular athlete as endorser.

INTENSE COMPETITORS

There is intense competition faced by Nike. Their competitors are Adidas, Reebok, Puma, and so forth, whilst competition is tighter with the coming of Adidas. More, the product line is slightly different between Nike and Adidas. 

·        RISKS OF NIKE'S CORE MARKETING STRATEGY

Nike faces many risks when they use their core marketing strategies to achieve their goals and these risks can come from both internally and externally environmental circumstance. The risks will have a negative influence about Nike's future development, for example, the market share in the world, reputation, brand image and customer loyalty.

Changes in Market Trends, Consumer Tastes and Preference

Nike needs to stay on the top of changes in consumer taste and preferences as evidenced by changes in fashion. So Nike face the risk that fashion trends may change so fast that Nike fails to follow. For example, for a period, the global athletic sportswear is focus on personality and Nike's products still be general to the customers this will lead Nike go behind of their competitors if their competitors can follow the trends. 

Fast changing of Nike's products

 Nike change its marketing strategies and products design to become more fashion and focus on the youth consumers. It brings risks to Nike because in the traditional mind of customers, they consider Nike only sell the athletic products. The fashion or the changing style products is unimaginative for customers to purchase.

If you are adidas, how would you with Nike?

 If I were adidas I would compete with Nike by following strategies.

If I were adidas I would emphasize my international scope of producing great soccer shoes and could extend my marketing to emphasize every day every one usage for my product. I had look into rebranding the adidas image as a life style shoe company.

·        Innovative products

I would make this possible by creating a strong brand based on high quality, innovative products that top athletes chose to use in training and competition.

·        Chose winning team

Adidas can gain its recognitions as providing the winning team with the shoe needed for victory but also marketing to the consumer a specific adidas product.

·        Target market

I would create a premium product but target it to young people, women and other who are in fashionable shoes.

·        Emerging market

I would compete with Nike is by focusing on emerging market such in Asia and Latin America by giving adidas significant leverage over Nike.