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- May 11
- 7 min read

Nike: Marketing Analysis

Updated: May 11

See the transcript of the video below.

Nike Marketing

Analysis

Anthony Payne

Waldorf University

Advanced Marketing

Doctor Jonathan Green

5-11-2024

Nike Company Marketing Analysis

The story of Nike started in 1964 with Phil Knight. Nike shoes got their start and sold out

of the trunk of a car. Today, Nike shoes are enjoyed by celebrities and sports stars with a

worldwide brand. Since its launching, the company’s estimated worth in 2022 was $425 billion (Johnston, M. 2023). Today, Nike is a multinational corporation based in Beaverton, Oregon, USA.

Competitive Analysis

As with any famous brand, there is usually competition. Converse footwear, formally.

All Stars sneakers by Chuck Taylor, sporting a more casual look, is a competitor; however,

Nike bought the company to put the ball in its court, so Converse will not be discussed here. However, other competitors, such as Adidas and Puma, will be the focus (Pereira, D, 2024).

Differences

The difference between Nike, Adidas, and Puma is that all three companies offer products

ranging from footwear to accessories and apparel. Nike’s products are targeted at basketball, soccer, and running. Adidas offers the same product, while Puma products are for golf, running, and soccer. All three companies offer various accessories.

Strengths And Weaknesses

Research and development, the low cost to manufacture, emerging markets,

efficient integration, cutting relationships with some retailers, artificial intelligence, mergers,

and direct relationships with consumers are good but can carry negative perceptions, like

producing the product in Vietnam, Indonesia, and China, where issues arise with cheap labor and treatment, and then there is counterfeiting of Nike's products. Overall, the above has added to the strength of Nike's Swoosh Logo, inspired by the Greek goddess of victory (Gupta, 2024).

Nike appears to be very favorable to the public and is known globally, supported

by endorsements from well-known performers, sponsors, and a large customer following.

Adding that to its high performance in basketball and running, along with the value of the Nike brand, valued at 34.8 billion dollars in 2021. The brand value may vary depending on

the date of the articles referenced here. In Nike's case, the weakness comes from conflicting

strategies, sexual harassment, retailers, having to let go of Tiger Woods, lack of diversification, pending debts, and lawsuits (Gupta, 2024). Regarding weaknesses, all three brands handle them in some form, but they are very favorable to consumers; it all depends on the customer's taste and purpose of use (Nike Inc., 2024).

Theoretical Definition of a Product

Theoretically, a product is a concept or an ideal that is either original or created

from another idea. This concept deals with customers' needs to discover what they want and how they want it. That way, consumers can be targeted more effectively, and this happens by gathering ideas and feedback while adapting them along with recommendations to product information. When creating a concept or the initial ideal, one must consider the risk of completing the product. So now we have the product concept in theory and essential factors considered. The goal is to make people notice it and pay attention to it. This marketing strategy is essential and is implemented in various ways and situations.

When building on the concept using the concept or the product, the basic concept

has some issues. The disadvantages, the benefits, the quality of the product, the product's colors, and the product's style are essential factors to consider when looking at the potential of the product's success in the market, performing higher than other products of similar type. The product needs better quality and features, and the price must be right. The primary consideration in most cases or many cases is the budget to produce the product and when the product is complete. In public hands, consideration must be to the quality of the service and the cost of bringing it to market.

Nike’s Marketing Strategies

Nike’s Product

Nike has branded itself as a stylish luxury product in the footwear and apparel departments. By creating this brand, the company markets itself worldwide to an affluent clientele, portrayed in its goddess logo. Using a marketing strategy of partnerships

with celebrities and various affiliates (Gupta et al. 23, 2024).

Theoretical Definition of a Place

Conceptually, a place could be out in space in the sky, and space is vast. However, on

earth, a place may pertain to a specific geographical location, large or small. Therefore, place regarding space abstractly distinguishes it from other humanistic abstract ways. Let us look past this jargon and the levels of its agreed existence. Now, let us delve into the intriguing connection between space, place, and marketing, a topic of significant relevance (Sage Journals).

In marketing, the place can have a more spatial perspective than just a concept. Services

and goods are spatial in providing the scope to the subject or object, and place is the context. Let us look at these dimensions further. Place as a subject-object count is a city marketed to tourists, investors, residents, and other targets. Branding is involved in marketing, which may excite or scare off potential consumers. For example, one size or brand does not fit all in Las Vegas. As for Nike, they paint a landscape or brand scape that is alluring to consumers looking at the Rolls-Royce of footwear, wanting to be associated with and seen wearing the product. Moreover, many wear the logo, distinguish it from other products offering the same or similar experience, and create various feelings for the person wearing the brand. Some may even feel that they acquire superpowers when wearing the brand logo. As a marketer, there is the ability to instill multiple concepts and ideas into people’s hearts and minds; once this happens, people may say and do various things that would not have been said or done before acquiring the brand from a specific place (Sage Journals).

Nike’s Place

For the most part, Nike has had good, if not excellent, marketing product placement. Be it

paid advertising, promotional events, or pairing up with celebrities. Unfortunately, companies can get overzealous in their choice and placement of marketing platforms. With that, sometimes, events happen, and companies jump on the bandwagon to capitalize without thinking deeply about the consequences of promoting on a particular platform. Such was the case with the death of George Floyd under a police officer's knee, which invoked national outcry. With the sensitivity of the death of George Floyd, a segment of the public viewed Nike's stance and advertising on social injustice as insensitive and opportunistic. Even though Nike's value hit an all-time high on the stock market (Mueller, T. 2023).

Theoretical Definition of a Price

Pricing is more straightforward. It falls under economics. The theory of pricing boils

down to supply and demand. However, looking deeper into the theory, one sees that the price for a service or good is contingent on the relationship between demand and supply, which can vary at any time. If demand increases, then the price should increase. Conversely, if the demand decreases, then the price should decrease. Equilibrium is when demand and supply are matched. Other areas of concern can be issues like competition in having a comparable product or having access to the materials to produce the product. The public may change its perceived value, maybe because of a competitor, or it may no longer be affordable due to economic changes (Banton, C. 2023).

Nike’s Pricing strategy

Because of technology and design combined with the demand for Nike, the price

of Nike products tend to be higher than that of its competitors; leveraging the brand equity along with product differentiation, Nike keeps its market share while having a premium price because of its quality of materials and brand image. Nike also uses discounts and promotions to increase sales and roll out products with high prices, then slowly lowering the price (Cuofano, G. 2024).

Theoretical Definition of a Promotion

Promotion is the interaction between a seller of a product or service and someone

who may be looking for the product or service and providing information about a product or

service to uncover the value of the product or service to show the buyer a way to

justify purchasing the service or product.

Promotion

The various forms of promotions are paid advertisement, social media, face-to-

face, personal selling, and affiliate referrals. Promotions come in various forms

of communication. These forms can be public to the masses, privately, advertisements, items, and services on sale for a certain amount of time. Promotions have various ways of delivery. Promotions could be delivered through contests, displays, coupons, trade shows, banners, and other means. Three traditional ways of promoting are face-to-face, newspaper, and television, while digital promotions use social media, digital banners, and email marketing.

Competitive Advantage

Price

Nike’s pricing is firm compared to its competitors, positioning the company to be resilient

in a competitive market (GuruFocus.com, 2024). A vital asset is Nike’s brand. The company is in a strong position, with all-star athletes as allies and innovators.

Product

Compared to its competitors, Nike’s weaknesses are outsourcing its manufacturing and

the controversy surrounding the company regarding corporate social responsibility (CSR), as

stated above.

Place

Compared to its competitors, they all face the same risks and weaknesses regarding

Financial institutions and foreign exchange rates. Fluctuations in the exchange due to

world conditions, politics, and the cost of materials and shipping costs can affect Nike and the competition.

Promotion

Nike has done well in its promotions. If it provides high-end quality products and

continues to invest in digital platforms. Focusing on direct-to-consumer promotion also boosts the company’s bottom line. Nike has done well for itself, even with the George Floyd

controversy, with marketing being Nike’s strong suit (GuruFocus.com, 2024).