Nike Corporations Marketing Strategies and Objectives

Nike Corporations Marketing Strategies and Objectives Purpose and Mission Two university students, Philip Knight and Bill Bowerman in the Early 1964, founded Blue Ribbon Sports, a company that later changed its name to Nike, Inc. in 1978. The company trades mainly in sportswear and equipments. It was founded in Beaverton, Oregon a small part of Portland.Advertising We will write a custom report sample on Nike Corporation’s Marketing Strategies and Objectives specifically for you for only $16.05 $11/page Learn More This is the very same place where the headquarters of the company is situated. From its humble beginnings, the company has grown to become the leading sports label in the entire universe (Rodman 126). Initially, the company only operated in the United States of America. At the present moment, it is operating in over 160 different countries. It has employed over 30,000 individuals directly who operate in the six continents of the world. Furthermore, it has an indirect involvement of over 1millio n individuals who depend on the company. This includes shipping and warehousing employees, marketers, suppliers, retailers and other individuals who are involved in the supply chain of the company`s products (Nike, 2011). If you have a body, you are an athlete: this is the motto of Nike, Inc. (Nike, 2011). This observation was made by Bill Bowerman who used it as an inspiration to create products that would take the talent and enthusiasm of athletes to another level. These very same words are an inspiration to the employees of Nike, Inc. They lead them in meeting the needs and desires of their customers. In the process, they have been able to maintain the legacy of the company making it stand ahead of its competitors in terms of creativity and innovation. The company`s mission is to bring inspiration and innovation to its customers (Nike, 2011). Employees of Nike, Inc. work hard to ensure that this mission statement is realized. To achieve this, the company has set up several object ives in the course of its operations. These objectives not only work to attain the mission and vision of the organization but also ensure that the company is viable in the market. At the present moment, the objective of the company is to supply its customers with state of the art sportswear and equipment that will take them to a new level of excellence (Nike, 2011). With the highly qualified staff, well set priorities and objectives, the company has become a leader in the industry. Through out its operation, the company has established a strong portfolio of brands that are highly recognized and respected in the market. The company started off as a distributor for a Japanese shoe making company, Onitsuka Tiger (now ASICS). Since then, it has grown and developed several brands of its own. These include: Nike Golf, Nike Pro, Nike+, Air Jordan and Nike Skateboarding. Other subsidiary brands include: Cole Haan, Hurley International, Umbro and Converse (Nike, 2011).Advertising Loo king for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The actual customers of the company are the athletes from all around the world. The company has commanded a strong market share by diversifying its products to accommodate athletes of all sports. This includes soccer, football, basketball, tennis, track and field, baseball, golf, hockey and so on. The company supplies these athletes with sportswear and equipment. At the same time, the company has also been targeting the public by supplying them with comfortable sportswear. This initiative has been successful and at the present moment, Nike is the most famous sportswear label in the universe. The company has been facing a lot of competition from other rival companies. Adidas, Reebok, Fila, Fubu, Dada, Wilson and so on are among the main competitors of the company. Despite the stiff competition that Nike is facing, the company has been and still is the lea der in the market. It operates in over 160 different countries (Kim 14). Situational Analysis Since its incorporation, Nike, Inc. has been able to identify its strengths, weaknesses, opportunities and threats. The main strength of the company is its large market share coupled with the competitive advantage that the company has over its rivals. As stated earlier, the company is well established in the industry. It supplies athletes in various sports with sportswear and equipments. This ranges from apparels, footwear, balls and other equipments that are necessary for sports. The high quality products that the company has been supplying to these athletes have created a tight relationship between the company and its customers. Due to this, consumer loyalty has developed. This has led to high rates of consumer retention and acquisition of new customers. At the same time, the company has expanded its markets. It is now targeting not only athletes but also the entire population. This move has increased its operation. Due to this fact, the company is now operating in over 160 countries worldwide targeting almost every individual regardless of their age or sex. This has boosted the operations of the company by increasing the total revenue that it collects. Despite this, the company has some weaknesses. First, the products the company is producing are somehow expensive to individuals who are living in developing countries. Due to this fact, only a small portion of the population in these countries is able to afford their products. To work on this, the company has introduced new brands that are of high quality but affordable by majority of its customers. This move was initiated to fulfill its mission.Advertising We will write a custom report sample on Nike Corporation’s Marketing Strategies and Objectives specifically for you for only $16.05 $11/page Learn More Nike, Inc. is the most popular sports brand in the world. At the same time, th e management of the company has been effective and efficient since it was incorporated. Due to this fact, the company has had the opportunity to grow and expand its market. As a result, the company has been able to take advantage of this opportunity and increased its market size. Due to this fact, the company has found it easier to enter into new markets and command a large market share. However, the company has been facing several threats in the course of its operations. First, it has been facing stiff competition from its rivals. This includes companies like Reebok, Fila, Fubu, Dada, Adidas and Wilson. This creates a lot of pressure that in turn reduces the revenue earned by each company. At the same time, there have been allegations that Nike has been contracting with manufacturing industries that offer poor working conditions for its employees. These companies are mainly situated in Asia (China, Vietnam and Indonesia). Due to this fact, Nike, Inc. has been facing a lot of critic ism from humanitarians and other welfare organizations. This threat has raised negative attitudes to its customers. To its response, Nike, Inc. ensured that all employees in the contracted companies have a conducive working environment and receive desirable wages that reflect the work that they have done. In the course of its operations, external micro and macro factors have been affecting the operations of the company. Over the years, the company has been producing high quality products and meeting the requirements of its customers. Due to this fact, the demand for its products has been increasing drastically. During the early 1970s, the company was only operational in the United States. However, the demand for its products has increased globally. To meet this demand, the company has expanded its operations to over 160 different countries. To ensure that its operations are effective and efficient, the company has increased its factors of production. It has qualified personnel, uses high tech equipments and employs innovative ideologies in its production process (Kim 21). Due to this fact, the company has been able to meet the demand of its customers, earn consumer loyalty and attract new customers. To meet the ever-changing needs of its customers, Nike, Inc. has been incorporating state of the art technology in its products and operations. Nike Air, for example is one of their brands that uses sophisticated technology to reduce the chances of occurrence of harm to a user of this product.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It contains a special gas known as Nike gas that flattens out and expands depending on the pressure that the shoe is experiencing (Kim 33). This reduces the chances of injury and increases comfort while using the shoe. At the same time, the company has incorporated the use of IT and ICT in its operations. This has made the running of operations within the company to be smooth. Due to its efficiency, the company has been successful in boosting its production and increased its revenue (Kim 6). Marketing Strategies and Objectives To achieve its mission, Nike has employed a number of strategies and objectives. Due to this fact, Nike, Inc. has maintained its standards of producing quality footwear and sports equipments to individuals and institutions of all ages and lifestyles. At the same time, the company has come up with measures and strategies that ensure that their products are easily available to their clientele. To achieve this, Nike, Inc. has a long-term corporate goal that aims at improving its stockholders return on equity by 20% and increases the earnings per share by 2.7% (Kim 21). This will ensure that the company growth in the company is coupled with gains in terms of shares and revenue. In this respect therefore, Nike Inc has a grand strategy that aims at increasing the quality of its products to meet the needs of all their customers all around the world. This will ensure that the company maintains its position as a leader in the market. Currently, Nike Inc is at the cash cow stage under the BCG matrix model. It is experiencing a great return on its capital. To ensure that the company continues to expand and remain sustainable in the short run and the long run, the company has put a lot of emphasis on research and development, incorporation if technology and ICT, improved consumer services and expansion of its markets (Kim 11). In addition, the company has formulated a number of marketing and pricing strategies. Tactical Programmes The main marketing objective of Nike, Inc. has been its expansion into new markets. To understand the consumer behavior in these new markets, the company normally hires a research firm that was familiar with the region. These firms critically analyze the markets and identify the factors that would motivate consumers to purchase athletic equipments and footwear. This information therefore makes it easy for the company to enter and command these markets. The pricing mechanism of the products is determined by the consumers` purchasing power, competition and value of their currency. Advertisement is the main method that the company uses to market its products. This is achieved by sponsoring local sports and athletics events, running adverts in the media, offering of rebates and discounts on their products and running of fashion shows that showcase their latest products (Kim 13). Monitoring and Control To ensure that there is a smooth running of the organization, the company has to monitor and control all its operations. To achieve this, the company has internal and external control systems that ensure that all the operations that are conducted at the company are in accordance to the set rules, regulations and standards. At the same time, the company has specific goals and objectives that have to be achieved within specified time periods. The company also has a budget that controls its revenue and expenditure. It also has copyrights for its products and logos. This protects their brands and properties from unfair competition and counterfeits. Kim, Enderle. Strategic Analysis of Nike, Inc. Chicago, IL. DePau University: 2000. Nike. Nike, Inc. Official Cite: World`s Leading Athletic Brand. Nike, Inc. Web. Rodman, Thomson. Market Planning and Analysis. New York: Sage, 2006