Question

Compose an Analysis on the following company.

(COE)/Company: NIKE

(COS)/Country: Australia

6.1.1 Current product strategy with examples. (Discuss 2 strengths and 2 weaknesses of the current product strategy. Bullet each point)

6.1.2 Recommended product strategy.

6.2 Price Strategy

6.2.1 Current price strategy with examples. (Discuss 2 strengths and 2 weaknesses of the current price strategy. Bullet each point)

6.2.2 Recommended price strategy.

6.3 Promotion Strategy

6.3.1 Current promotion strategy with examples. (Discuss 2 strengths and 2 weaknesses of the current promotion strategy. Bullet each point)

Answer 1

Ans)

NIKE product strategy

Nike is successful because it has some of the best, if not the best, marketing in the world. Their brand is the 1 brand in the sporting goods industry and is the 14th most valuable brand in the world. 61 The Nike business strategy is clear, invest in building your brand through emotional marketing and sports celebrity endorsements, develop products that have high-quality, market-leading technology and buy out competing sports brands. .

1Nike Has Established their Brand and Logo through Extensive Marketing Investment

2 main Focuses on Selling the "Emotional Benefits" of their Product.

3 inovates New Technologies

4 Nike Provides a Wide Variety of Products To A Large Number Of Sports To Capture Greater Market Share

5 Nike Focuses on Quality and Creating Products better for Athletes Perform .

6 Nike Buys Out Competing Sport Product Brands

7 Nike promotes their products with celebrities.

For example, Nike increases its stores and retailers in the United States to sell more athletic shoes to American consumers.

Two strength of Nike

A) strong brand image

The Nike has very huge brand image or name in the world The company’s effective marketing campaigns also contribute to this strength

B) rapid innovation process

Also, rapid innovation processes are a core factor in Nike’s ability to create cutting edge designs for its athletic footwear, equipment and apparel.

Two weakness of Nike

A) Labor controversies

Labor controversies continue to plague Nike’s business, especially in considering production facilities in developing countries. This weakness negatively impacts the company’s brand image.

B) Limitations in the product mix

The Nike has expanded its product mix through the years, the resulting product lines are still limited in capturing a larger share of the sports shoes, equipment and apparel market

Recommended product strategy

Improve labor/employment practices

Nike has the opportunity to improve its labor practices to address controversies in this area of the business. Proactive strategies for this concern can lead to an improved brand image.

2 Improvehe product mix

Anotheropportunity is for Nike to improve its product mix to attract more customers, especially non-athletes.

3 Increase in market presence in developing countries

The company also has the opportunity to improve its presence in developing markets to benefit from these markets’ high growth potential.

Price strategy

Pricing can be used strategically to adjust performance to meet revenue or profit objectives, as in the Nike example above. Or, as the airline-industry example shows, pricing can also have unintended or adverse effects on a company’s objectives. Product pricing will impact each of the objectives below:

Profit objective: For example, “Increase net profit in 2016 by 5 percent”

Competitive objective: For example, “Capture 30 percent market share in the product category”

Customer objective: For example, “Increase customer retention”

over the long run, no company can really say, “We don’t care about profits. We are pricing to beat competitors.” Nor can the company focus only on profits and ignore how it delivers customer value. For this reason, marketers talk about a company’s “orientation” in pricing. Orientation describes the relative importance of one factor compared to the others. All companies must consider customer value in pricing, but some have an orientation toward profit. We would call this profit-oriented pricing.

Market strategy

Segmentation, targeting, positioning in the Marketing strategy of Nike – Nike uses psychographic segmentation variables to make its offerings more attractive to the target customers. It uses separate campaign or strategy to cap the market potential of the different segments.