The aims of this paper are to conduct a marketing audit and marketing plan for a renewed brand, called Nike. The marketing audit on Nike shows that it has strengths including brand images and goodwill, good management and dedicated workforces, an effective R&D department, and a wider range of products and markets. However, the products’ prices Nike are comparably higher than their competitor’s. It also has a poor presence in many developing countries. In addition, it has been facing several challenges. The key challenges are coming from competitive rivalry, political, economic, social, technological, legal and environmental issues. But, Nike has a huge opportunity of increasing its market and product ranges in the global market.
Then, the finding of the marketing audit in this paper has promoted a marketing plan for the Nike Men’s Running Shoes brand. Nike Men’s Running Shoes brand applied differentiated targeting strategies and multisegmental strategies to attract its customers and increase revenue and profits. Nike Men’s Running Shoe brand can develop a marketing mix (4Ps) strategy to develop its market and improve revenue and profits. Most importantly, Nike Men’s Running Shoes brand can focus on reducing its product prices, increasing product ranges, maximizing business more new places, and promoting products using both traditional and digital marketing channels.
Table of Contents
Task 1: Marketing Audit
1.1 External environment analysis.
1.2 Internal environment analysis.
1.3 Nike position in the market
1.4 Nike business growth.
1.4 Competitive Advantage of Nike.
Task 2: Marketing strategies for Nike Men’s Running shoe Brand.
2.1 Segmentation, Targeting & Positioning for Nike Men’s Running Shoes.
2.2 Marketing objectives for NIKE Men’s Running Shoes.
2.3 Recommended marketing strategies.
This assignment’s purposes are to marketing audit (external and internal environments) and develop a marketing plan for a renowned and famous shoe brand named ‘Nike’. The assignment emphasizes two different major parts. The first part conducts a marketing audit focusing on both the external and internal environments of Nike. In this term, the PESTLE tool is used to analyze the external business environment, while the internal business environment is analyzed using the SWOT analysis tool. SWOT refers to the strengths, weaknesses, opportunities, and threats of the Nike brand. This part describes the position of Nike in the competitive market as well as gives an appraisal of Nike USP (Unique selling point). Lastly, Nike’s competitive performance and effectiveness are discussed.
On the other hand, the second part of this assignment establishes a marketing plan for a specific sub-brand of Nikes concentrating on the result derived from the 1st part evaluation. Here, the selected sub-brand is Nike Men’s Running Shoes. Firstly, this part chooses market positioning, market segments, and marketing purposes for developing sales volume, the share of the market, and awareness of the brand. It also concentrates on the objectives of marketing for Nike Men’s Running Shoes brand. Lastly, this part recommends Nike Men’s Running shoe brand concentrating on marketing tactics and marketing strategies.
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Task 1: Marketing Audit
1.1 External environment analysis
PESTLE analysis refers to political, economic, social, technological, legal, and environmental analysis, explains the structure of macro-environmental aspects applied in business external environment strategic management (Kotler, 2014). The PESTLE tool is useful in order to evaluate the business forces that deprive of the business external environment. This tool only explains a company’s external environment that is why a company cannot fully depend on the PESTLE tool (Palmer, 2015).
PESTLE analysis of Nike
Nike is operating in global markets including the US, EU, and Asia. Therefore, Nike faces challenges of government rules and regulations in the both domestic and international marketplace. The import and export policies, duty policies, tax, and VAT policies differ from country to country which affects the business performance of Nike. In addition, international terrorism has also been under consideration as the political issues that are now affecting the business activities of Nike (Nike Annual Report, 2016).
Nike gained $32,376 dollars in revenue and $3,760 dollars net income in 2016 that was 15% higher than in 2015. However, the economic fluctuations in global markets and monetary and fiscal policies developed in different countries affect the performance of Nike. Only in 2016, Nike had to provide $ 863 dollars of income tax that significantly affected the business performance of Nike (Nike Annual Report, 2016). According to Estimize (2016), Brexit/EU Referendum has affected the UK and EU currency and economic circumstances that may affect Nike’s performance.
Different social and demographic factors affect the business of Nike. This is because frequent changes are seen in people buying behaviors, customer needs, and expectations, income, and expenditure of people, population growth rate across the global market. These factors are affecting the performance of Nike. Nike is an international brand that has social liability when it comes to fitness and health. In addition, Nike has observed changes in the international value chain. Nike pursued the common manufacturing code and separated its work to outsourcing rising nations as a result of low salaries. Nike must attempt to increase the trust back of its consumers (Nike Annual Report, 2016).
Technological development also affects the business performance of Nike. Nike applies highly developed IT to promote its goods and objects to the customers’ needs. It applies the best form in that supply chain and transaction are connected via MPPS and SOAP. The online method has allowed consumers to create contactless costs using phones. This development has decreased the workforce cost that should be required at the service store. Nike has tried hard to create unique goods that are exactly highly developed and accomplishes the customers’ requirements (Nike, 2016).
Nike’s development approaches are dependent on internationalization. Equally, the company should adjust quickly to policy and legal frameworks in all of its trade places. However, Nike has observed legal problems in terms of its global development; pursuing assertions of worried labor, it finished its operations in different organizations in Pakistan and motivated its functions to China and Thailand. However, the dependent joblessness led to problems with Pakistani authorities and disparagement over the resultant unemployment (Nike, 2016).
Nike has been operating in a global market where it is facing a number of environmental factors. The key environmental factors Nike is facing are rough weather, global warming, climate changes, heavy rain, and other natural disasters (Nike Annual Report, 2016). These environmental mainly affect the supply chain of Nike. Nike now uses Nitrogen instead of SF6 gas by taking care of the environment and meeting social demands (Bloomberg, 2006).
1.2 Internal environment analysis
According to Kotler et al. (2014), a business’s internal environment can be analyzed using SWOT techniques.
SWOT is a tool or technique to analyze a business’s internal environment. The meaning of SWOT is strengths, weaknesses, threats, and opportunities (Palmer, 2015). However, the strength and weaknesses of the SWOT technique mainly focus on business internal factors but the opportunity and threats focus on the business external factors. Therefore, this tool is also sometimes used to analyze business external factors (Kotler et al., 2014)…………….