My first encounter with NIKE (sounds weird??) was when I first landed up in a brand outlet with billion questions in my mind! Which will be the best comrade to attain that feeling of an accomplishment that drips down my face! After a quick glance at the shelf spotted the legend on the rack with an attitude. That reminded me of a fitness enthusiast who browse the internet with a pack of chips for the best sports and fashion brand. Finally, the answer to the question has ended up in front of my eyes shouting at me, yes you are doing it right, JUST DO IT.
NIKE is not just a brand it’s an inspiration as its mission statement says it “to bring inspiration and innovation to every athlete in the world.” As the tag line effectively proclaims the strategy that is implemented to make that sense of achievement in every customer. Nike is a pioneer in the sports apparel industry and cannot be replaced by its competitors so easily because of its long-lasting Slogan “Just Do It” and symbols “Swoosh” and their sports icons are recognizable for target audience.
SQUAT IT! OH NO SWOT IT!
CRACKING THE ‘NIKE’ STRATEGY
Nike focus mostly on outsourcing and most of the products are manufactured outside the United States.The combined cost leadership and differentiation generic strategies boost Nike’s performance in the global industry. Nike’s cost leadership generic strategy sustains competitive advantage based on costs.Nike has a broader network than their competitors that enable them to cancel the alliance with any organization that fails to meet their standards.Due to the advanced technology goods are produced at a lower cost with superior quality granting them the supremacy over other copycats who cannot strive to meet the standards of the Nike. Another notable cost leadership strategy is pricing strategy of Nike over Adidas.
Differentiation can be achieved through real product features or through advertising that causes the customer to perceive that the product is unique and to create a sense of willingness to pay for the product with the desirable features.
The main competitors always of Nike are Reebok and Adidas and their product are not entirely different from Nike’s products, as all products involved in the design and marketing of both athletic footwear and apparel and for fitness projects but Nike is having differentiation and distinctive competency in the area of marketing. Nike always creates the consumer brand awareness and has strong brand power for a long time and also makes a position in the market.
THE PERFECT BLEND OF SUCCESS
The marketing mix of Nike is quiet strong and it focuses on the pull strategy.Nike has a large number of products ranging from the shoes,apparel and equipment.
Nike follows a premium pricing strategy. All credit goes to the brand name and the way it influences its customers. This strategy gives the brand an edge over the competitors and customers are willing to pay for the product due to its innovative concept and appreciable quality. That is why Nike uses Cost Based/Value Based Pricing other than its competitors.
Nike is more concentrated in US market ,but its market is extensive with large retail outlets worldwide. .The company has production facilities in Asia and customer service and other operational units worldwide.
Nike’s goal is to extend its global presence with an impact in the customers mind. As far as now it is quiet successful in act of balancing old customers and the new customers. Ads helps a company to reap profits at a higher margin. Nike advertises it products through different platforms such as print media, television and billboards and posters. The brand also includes celebrity athletes like Cristiano Rolando for soccer, Tiger Woods for golf, etc., and professional teams like Manchester United to focus attention on their products. It also has several websites for individual sports such as Nike also has several websites for individual sports such as nikebasketball.com and nikefootball.com. Nike in association with Wieden + Kennedy launches a campaign called #betterforit, which is an initiative for supporting women in their athletic journey. Its about empowering woman through innovative product and motivating each other to move up the ladder of cants do’s. The campaign gathered more attention due to unique concept providing a platform for women to share their exercise accomplishments on the social media with a hashtag #betterforit
Nike is forever an inspiration and it will be a choice of pride forever.