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Nike Market Strategy Analysis

Nike has approximately 30% of the market share for footwear revenue compared to other brands like Adidas, Puma, and Reebok. Nike uses strategies like celebrity endorsements, sponsorships, digital marketing campaigns, and loyalty programs to promote their products. However, they also face threats from changing consumer preferences and increased competition. A survey showed that Nike's most popular shoe lines are Air Jordan and Air Max. Respondents said they consider resale value when purchasing and have faced difficulties due to high demand and limited stock. The presentation recommends strategies like improving distribution to reduce reselling, using technology to verify purchases, and increasing awareness of customization options.

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43 views13 pages

Nike Market Strategy Analysis

Nike has approximately 30% of the market share for footwear revenue compared to other brands like Adidas, Puma, and Reebok. Nike uses strategies like celebrity endorsements, sponsorships, digital marketing campaigns, and loyalty programs to promote their products. However, they also face threats from changing consumer preferences and increased competition. A survey showed that Nike's most popular shoe lines are Air Jordan and Air Max. Respondents said they consider resale value when purchasing and have faced difficulties due to high demand and limited stock. The presentation recommends strategies like improving distribution to reduce reselling, using technology to verify purchases, and increasing awareness of customization options.

Uploaded by

najam.p23349
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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HOW HAS NIKE

BEEN DOING IT?


Presented by:
Anju Hasda
MD Najam Sayeed
Priyanka K
Rhea Tess Johny
Shreeram RP
Vedant Shukla
Upasana Nandi
COMPARATIVE ANALYSIS
Others
20%
Nike
30%

Reebok
10%

Puma
15%
Adidas
25%

Revenue from footwear segment of Nike,


Adidas and Puma from 2010 to 2022
POSITIONING MAP BCG MATRIX
Expensive
Stars Question
Marks
Jordan Lebrons
Dunks AirZoom
Mercurial AirMax

Performance Fashion
Cash
Dogs
Cows

AirForce Cortez
Pegasus Tiempo
Blazer Presto

Cheap
SWOT ANALYSIS
STRENGTHS WEAKNESS

Strong Brand Image


Global Presence Pricing - Costly
Marketing and Sponsorship - Poor Labor Conditions
Athlete Endorsements Dependency on Retailors
Diverse Product Range
SWOT ANALYSIS
OPPORTUNITIES THREATS

Sustainability- Nike committed


for 30% reduction in GHC by
Changing Consumer
2030
Preferences
E-commerce - Growing Digital
Competition
Sales
Counterfeit Products
Emerging Markets - Increase in
demand for expensive shoes
MARKETING MIX
PRODUCT PLACE
Variety - Running, sports, training Retail Stores - 124 stores in 20 states
& lifestyle shoes Nike’s Official Website-
Innovation - Technology like Air https://www.nike.com/in/
Max, Flyknit, React Foam, Zoom Nike official SNKRS application.
Air E-commerce websites- Amazon,
Customization - ‘Nike By You’ or Flipkart, Myntra, Veg Non Veg, etc.
NIKEiD
Collaboration- Dior, Tiffany, LV,
Offwhite.

PRICE PROMOTION
Premium Pricing Celebrity Endorsements
Value - Based Pricing Digital Marketing Campaigns
Bundling - gives discount for Sponsorship
products purchased as a bundle. In - store Promotions and Factory
Price Skimming - sets a high price outlets.
initially and then gradually gives Customer Engagement Programs-
discount to maximise profits. Loyalty clubs and membership rewards.
CSR Initiatives
DIGITAL PRESENCE

Nike is very active on social media,


with over 306 million followers on
Instagram and over 9.9 million
followers on Twitter.
Nike uses its social media
platforms to promote its products,
connect with its customers, and
build brand loyalty.
E-COMMERCE

Nike has a strong e-commerce


platform, which allows customers
to purchase Nike products from
anywhere in the world.
Nike's e-commerce platform is
user-friendly and offers a wide
range of products to choose from.
Nike also offers convenient
shipping and return options.
COMMUNITY BUILDING

Nike is committed to building a


community around its brand.
The company does this through a
number of initiatives, such as its
Nike+ running app, Nike Training
Club fitness app, Nike ID
program, which allows customers
to customize their own Nike
products.
SURVEY RESULTS

5000-10000
Yes
Over 10000
No Under 5000

Over 15000

Nike purchase in the past Price range usually spent

Never
Yes
Sometimes
No
Rarely

Always Indifferent

Resale value consideration Ad campaign emotional influence


SURVEY RESULTS

Social media

Billboards Yes

Television/ others No

Where do you see the ads? Purchasing difficulty due to high demand

More Insights
The most popular shoe line is Air Jordan (83%), followed by Air Max (72.3%).
Factors influencing resale value are mainly limited-edition releases, collaboration with
other brands, rarity etc.
Challenges people face during purchase include limited stock, technical issues on Nike
website, scalping & reselling etc.
RECOMMENDATIONS

Maintain a better channel distribution system so that reselling is limited.

Use technology like blockchain, captcha, etc to make reselling difficult so that customer identity is verified before
purchase.

Personalized marketing - email newsletters, purchase history-based marketing.

Increased awareness about Nike’s customization options like Nike By You.

Reduce piracy of Nike shoes by regulating e-commerce websites by providing authentication certificates.

Increase ATL marketing channels (billboards, posters, etc).

Continue partnerships with athletes.


Thank You!

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