Report on Marketing Strategy and Product Quality of Nike

Introduction

When talking about brands, many renowned names strikes in our mind. Creating a Brand and its extension among competitors are two different things. Brand value is not just depending on the product quality but how it targets its customers. Nike is known for its athletic shoes, creative advertisements and its name associated with famous sports players. Nike is a brand with not just one or two product line- it deals in clothing, shoes, sports gear and other accessories. We believe that Nike is the best athletic brand because it comprehends the customer needs and fulfill them effectively. This report will explore the following areas:

1. Marketing strategy
2. Design, quality, and comfort
3. Acquisitions

Marketing strategy

Nike use innovative ads, effective distribution channel, and communication channel. Nike use emotions in its advertisement and ambassadors of advertisements are famous sports personalities. Nike sponsor its products through most watchable sports like NBA, Football, tennis and Cricket. Sportsperson who are sponsored by Nike are Michael Jordon ($60 m./year), LeBron James ($15 m./year), Kobe Bryant ($8 m./year),Kevin Durant ($8.5 m./year), LeBron James ($15 m/year), Rafael Nadal($10 m./year), Roger Federer($10 m./year) and Maria Sharapova($8.75 m/year) ( Louie Andre, n. d. ).

Nike represents its product through games so that people watching that game could create an emotional connection with players through their product. Nike has 1182 store outlets worldwide (Liam O’Connell, august 30, 2018). Nike distributes its variety of products all over the world through different channels such as resellers, supermarkets, e-commerce sites, retailers, licensees. The Company offers its items to retail accounts, through its retail locations and Internet Websites, and through a blend of autonomous merchants and licensees over the world.

Attractive Design, Quality and Comfort

Nike has taken the responsibility for making shoes that help athlete persons to go smooth and faster. The weight of Nike shoes is much lighter as compared to the other sneakers. In 2019, Nike had innovated Air Sole Design, which includes two air filled bags in the midsole to absorb socks (Charboneau, 2019). Nike provides quality and comfort to its customers because it plays a major role in Nike’s success. Nike customers are kids, youngsters, adults, and senior citizens. Nike study its client needs and offer them the same to fulfill the requirement.

Acquisitions

Nike’s brand value is on no. 1 ($19 billion) beating all other popular brands (Forbes February 04, 2014) but Nike did not stop at just promoting their own products and expansion of product line but it knows the benefit of acquiring and working with other companies. On July 9, 2003 Nike bought Converse shoe brand for $305 million (Leslie Wayne, July 10, 2003). Nike also bought another surf wear maker Hurley international on May 12, 2004 with undisclosed amount. By acquisitions Nike is exercising strategy of “buy rather than build”. Converse shoes designs are totally different from Nike articles. It facilitates the benefit of diversity of products attributes. On the other hand, Hurley International is also unique. Apart from making clothes, Hurley international manufactures surfboards, swimwear and equipment too. These kind of acquisitions results in covering more market share of profit.

Conclusion

To conclude, Nike is the well-established brand and utilising its resources efficiently in every aspect like products innovation, design, marketing strategies, and targeting potential customers. Nike target is to bring inspiration to everyone to be an athlete. Nike is a leading sports company and it struggles continuously to be on forefront by offering wide range of innovative products and attractive designs to its customers.