| quo;s marketing strategy rested entirely upon a brand | | | | Nike uses the vertical integration pricing strategy in |
| image which is favourable and has evolved into a | | | | which they take ownership of the participants at |
| great multinational enterprise over time. The favourable | | | | channel levels that differ and they also engage in |
| brand image has been kept afloat due to the strong | | | | multifarious channel level operations both in a bid to |
| association with the Nike’s logo which is quite | | | | control costs and thus influence pricing function |
| distinctive and the slogan Just Do It which has | | | | (Goldman S, 2000, pp154) |
| been used in advertisement for quite some time. The | | | | Distribution Strategies |
| company has been known to invest heavily in | | | | Distribution strategies embraced by an organization |
| advertisements and brand promotion (Fill C, 2005 p.54). | | | | can either give them an edge in market or make them |
| Market Segmentation | | | | lag behind the winners in the market. The more |
| Most of the consumers of Nike’s products are | | | | efficient the product distribution is the more sales and |
| mainly sportsmen. This is so because of the utility that | | | | thus more profits. The delivery of the right product and |
| comes with the products. An athlete is more likely to | | | | at the right time to the consumer not only effects utility |
| go a sports shoe designed and marketed by Nike | | | | but also leads to high degree of consumer satisfaction |
| more than a person who detests sporting and | | | | and loyalty. Nike distributes its products on level basis. |
| exercises. Nike targets these consumers by | | | | The high priced premium products are given to certain |
| agreements between Nike and athletic teams, | | | | distributors while leaving the low priced to be sold at |
| college’s athletic teams1 etc for product | | | | highly discounted prices at mega retail stores such as |
| sponsorship and eventual promotion to the members | | | | Wal-Mart. Whereas Reebok embraced a limited |
| of these teams. In this way, Nike is able to reach a | | | | distribution strategy Nike ventured more into a global3 |
| wide number of consumers and consumers who are | | | | market capitalization (Jeannet J, 2000, pp 44). |
| more likely to buy. Even though others are likely to buy | | | | Promotional and Communication Strategies |
| the products, Nike pays specific emphatic targeting to | | | | Apart from Nike selling quality products which have |
| the athlete more than any group of individuals even | | | | lead to a high degree of customer loyalty, the |
| though it also targets the youth who have embraced | | | | promotional strategies that the company employs are |
| the hip hop culture (Mercer David, 1996, pp 171). | | | | simply superb. Nike has contracted a number of |
| Targeting strategies | | | | professional and celebrity athletes which have |
| Nike lays a number of strategies to target their | | | | managed to draw a considerable attention to their |
| immediate consumers; athletes and other sportsmen. | | | | products. Some of the sportsmen signed by Nike |
| The targeting strategies include among others the | | | | include soccer stars such as Ronaldinho, Ronaldo and |
| sponsorship of products by professional athletic teams, | | | | Roberto Carlos, Basketballers such as Jermaine |
| celebrity athletes and college athletic teams. This | | | | O'Neal and Lebron James2, triathlete Lance Armstrong |
| strategy is specifically successful because of its ability | | | | and golf superstar Tiger Woods. This has created a |
| to reach a large number of athletes. If the athletic | | | | relatively high degree of Nike products’ |
| team manager prescribes a specific type of track | | | | awareness. Besides the signing of celebrity sportsmen |
| shoes made by Nike, the trainees have no option other | | | | to promote their products, Nike has also employed a |
| than to buy them. The teams can as well buy the | | | | great deal of advertisements through the mass media. |
| track shoes in bulky and supply them to the team | | | | Nike employs a selective- demand advertisement |
| members. | | | | focused on the high priced shoes used for traditional |
| The second strategy that Nike applies is the designing | | | | sports (Goldman S, 2000, pp154). |
| of product destination. It does this by associating | | | | Conclusion |
| success with the product. For example, when a | | | | Nike has remained and continues to remain at the top |
| celebrity athlete sponsors a specific brand of athletic | | | | of production and distribution of sports gear and |
| shoes, the brand will be associated with success. This | | | | equipment. However, it should be noted that |
| psychological effect is reinforced with advertisements | | | | competitive pressure cannot allow Nike to sleep at |
| that affirm this position. | | | | the top’. The recent Reebok- Adidas merger |
| Finally, Nike targets the consumers who are likely to | | | | poses a great challenge to devise new marketing |
| develop product intimacy; those who care more about | | | | strategies to continue leading or recede to oblivion. The |
| the utility and quality of the product than the price. In | | | | following recommendations are suggested in a |
| this way, the pricing is not affected too much in a bid | | | | situation where marketing management is competent. |
| to accommodate a large number of consumers. | | | | These include: |
| However, price has also been factored in Nikes | | | | Increased market share through a new product |
| marketing strategies as shall be seen later in this paper | | | | development, competent pricing strategies, |
| (Frank, 2004, p.173) | | | | advertisement and other sound promotional activities. |
| Pricing Strategies | | | | Restructure market dominance by driving away |
| As stated in the foregoing section, Nike targets the | | | | competitors mainly through fierce promotional strategy |
| consumers who embrace product intimacy and thus | | | | coupled by pricing function that will make the market |
| care less about the product. This has enables Nike to | | | | quite unattractive for the competitors. |
| set relatively higher prices than its competitors. This is | | | | Increased social responsibility to strengthen the image |
| a strategy that calls for higher pricing points so as to | | | | of the company |
| push the perceived product value. It has been | | | | Diversification of market through factoring the Asians |
| established that consumers who consider a product to | | | | and Black Americans in their product promotion |
| be of high quality are likely to pay the high price more | | | | besides doing a research to establish the tastes of |
| often and consistently. Once consumers develop | | | | these groups. |
| product intimacy, they come to associate their person | | | | Venture into new distribution channels especially in |
| with the product and will pay whatever price quoted | | | | international markets |
| on the product provided it has the Nike logo on it. | | | | Different pricing strategy so as to open up a new |
| Another very important thing to note is the fact that | | | | market segments. |
