Question

1. Situation Analysis for Nike
   1. Provide answers to the question “Where are we now as a company?”
      1. SWOT Analysis
      2. Industry Analysis
      3. Competitor Analysis
      4. Company Analysis
      5. Customer Analysis/Customer Characteristics

It's for a 5 year period. As a reminder, a marketing plan is a road map for the marketing activities of the company for a specified future time period.

Answer 1

i) SWOT Analysis
Strength
- It is a global brand and no.1 shoe maker
- Nike has the joint venture with Apple’s IPod in continued innovation
- It has strong distribution channels
- It has strong position over its minimal long term debt
- Has innovative shoe design which enable consumer to design their own shoe online
- It has diversified products worldwide
- Has strong marketing campaigns and endorses different products
- Have different segments as baseball, golf and footwear etc.

Weakness
- Its sales highly depend on the footwear segment
- It has violations in history and they provide minimal wage rate to its workers
- Has poor conditions in work places
- It is having bad reputation
- Has higher price compared to its competitors as Adidas

Opportunity
- It can develop products such as sport’s wear, sunglasses and jewelry
- Its brand can also developed internationally
- It can support different market events globally as (the Olympics, FIFA)
- It may have expansion in larger brand recognition in market
- It can have growing segmentation of women Athletes’
- It can increase demand and introduce fashion brand image in market

Threats
- Economic recession and fluctuations in the currency can lead Nike to losses
- Higher competition as competitors are becoming more aggressive and creating high quality products
- Sensitivity to price
- Maintaining reputation of eco-friendly (Swot analysis of Nike)

ii)/ iv) industry analysis/company analysis
The Nike Company-Overview (History and Current Status)
NIKE, Inc. is all about innovations and discovery by providing the products and experiences for athletes.
Nike was founded by University of Oregon track athlete Phil Knight and his coach Bill Bowerman in January 1964. Its original name was Blue Ribbon Sports (BRS). The company initially operated as a distributor for Japanese shoemaker Onitsuka Tiger , which meet Knight's automobile. (Nike Inc., 2016).
In 1964, BRS sold 1,300 sets of Japanese running shoes netting $8,000. After that in 1966, BRS opened its first retail location at California. By the time after the first retail store, it got expanded in different regions as in the East Coast, in Wellesley. (Directory, 2001).
After that in 1971, the relationship of BRS and Onitsuka Tiger was coming to end and BRS made its own line of footwear, which included the Swoosh planned by Carolyn Davidson. So the Swoosh was utilized by Nike in 1971 and then was registered with the U.S. Patent and Trademark Office in 1974.
Afterwards Nike had made itself as a leading brand in U.S. athletic market and covered half of its market share. Also Nike with the association with Wieden Kennedy made various marketing communication ways to reach the customer and to make them aware about products. By 1980s, it made association of games with its products offerings to its target market. (Wightman-Stone, 2015)
Current Status
• Today Nike, Inc. has widespread arrangement of its offerings, which are available throughout the world.
• It had an income of $3.27 billion before the end of financial 2015 and revenue of 30.6B in 2015.
• It has created about $12 billion of combined free income from operations through 2015. (Nike News, 2010) .
• Nike strives to expand its brand through adopting development technique. By obtaining of Umbro, Nike has expanded its position as the greatest football maker Company in the market. (Nike News, 2010)
• Nike has obtained a strong name or title in the market of running basketball and football categories in North America and central and Eastern Europe.

Future orientation
• NIKE's wholesale market would continue constantly and be the key driver for deal development, for retail accomplices at present foreseen that might representable more than 80 percent of the organization's general business by 2015.
• Nike has geographic chances that it would make its expansion arrangements to the whole six developed geographic areas as North America, Western Europe, and Japan by driving mid-single-digit development and by focusing on an extra $3.0-3.5 billion from claiming twelve-month for financial 2015. Additionally, Nike arrangements will contribute forceful over its creating business geographies in China, national & eastern Europe, and developing Markets) focusing on low double-digit development with an extra $3.0-3.5 billion from claiming twelve-month income by the limit of monetary 2015 (Peters, 2009).
• For making its customers satisfied and made them aware, Nike portrayed courses of action that will open harshly 250-300 new NIKE-marked saves overall all around the World in five years long time and to lift the customers knowledge and to increase its development through new technologies. And in this regard, NIKE anticipates that this course of action would provide additional $2.2-2.6 billion by 2015.
• For strengthen its overall retail vicinity, NIKE, proclaimed plans that set $500-600 million money for the five year considerable length of time that will add to regulate the customer business and make wholesale and retail effectiveness. (Nike Inc, 2016)
• In future, it is estimated that Nike will increase its prices due to which it can positively impact and increase the profitability from its products. (Shahriar, 2015)
• In terms of long-term financial objectives, NIKE has following future orientation that would assist development and expansion by 2015(About Nike, n.d.)
-Increment in profit by 10% annually
- Increment in Earnings Per Share growth annually
- Increasing 25% of ROI (Return on Invested Capital)
- Increasing dividends by 25-35%

Mission & Vision Statement
- Mission Statement
‘To bring inspiration and innovation to every athlete in the world’ If you have a body, you are an athlete.
- Vision Statement
‘The Nike goal is to carry on his legacy of innovative thinking, whether to develop products that help athletes of every level of ability to reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for our shareholders.’

iii) Competition analysis
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. Nike is having the no 1 seat which 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.
There are two great attributes which makes distinctive competency for Nike are its inability to be replicated and the value or benefit which they offer to its consumers. As Nike is the integrated part of the American and world culture, the brand power is basically increased and difficult to replicate. Few companies have such that image and resources to promote their company as Nike do. As the motivational Slogan of Nike is “Just Do It” with the marketing campaigns which emphasis the fitness, competition and sportsmanship, consumers having the high quality based products and a spirit of achieving the confidence where younger consumers can get benefit from the positive influence. (Deng, 2009)

The figure shows the status and market share of Nike and its competitors in athletic market, where it is seen that the Nike has highest global market share that is 31% whereas the its major competitors as Adidas and Reebok have 16% and 6% market share respectively.

v) consumer analysis
Nike products are already well-known brands through the world, with effective advertisements and word of mouth, since customers tend to share their positive views with their friends and family. After buying this Nike brand, consumers learn, and experience the quality and see themselves that they got what they expected. Consumers’ formed attitudes about the brand are buying a products that are comfortable, makes you feel good, and also look cool in it and Nike satisfy them all. (Ugur)
The public feels that Nike over charge its consumers and make its profits but they should decrease the prices which can attract the consumers to buy its products. Today, everybody wants the products which are comfortable to wear, protect our feet and keep away from injury without higher quality shoes it can harm our feet and cause injured. Sometimes Nike can affect consumers to buy the product. Consumers can be influenced by three perspectives cultural, social and personal factors. (Consumer behaviour in relation to premium products, 2015).
Young athletes can be the target market of Nike in the future. With its brand it has the powerful position of influence with young people by launching the digital platform for engaging the consumers to join it so that it may make better relationship with consumers (Kearney, 2009)
If any company creates the good relationship with its consumers, so they must find out the needs and wants of the consumers. As Nike has done this by providing the good customer service and even when customer face any type of problem so they can send email to the Nike for get rid from their problem related purchasing, Nike would solve their problems within working days and customers can solve their problems with help of websites and sending them emails. So this has made the consumers to have positive image of Nike in their minds which can increase their purchasing decisions and behavior towards the Nike products. (The consumer decicion process of Nike, 2015).