MARKETING PLAN OF NIKE IN JORDAN-SAMPLE

Posted on January 9, 2022 by Cheapest Assignment

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Executive Summary

The Managing Director of Nike Inc, Jordan has approached for development of a marketing plan so as to facilitate delivering further value to its customers and achieve market growth in the next five years. For this purpose, a situational analysis of the market has been conducted to understand the competitive and consumer behaviour. The internal and external market analysis has been done to comprehend the competitive and consumer behaviour. In order to understand the target market, segmentation and target market analysis have been conducted which also helps in positioning the products in the market depending on the preference of the customers. The marketing mix strategy has also been applied to understand the fundamental aspect of product, price, place, and promotion required for the marketing strategy. The implementation and control aspect of the marketing strategy as well as the budgeting and sales has been discussed to understand the enforcement as well as the financial aspect of the marketing plan.

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Introduction

The development of a marketing plan is required for Nike for enhancing the value towards the customers and achieve higher market growth in the coming 5 years in Jordan. Nike desires to enhance its footprint in Jordan and desires to offer products as per the preferences of the customers. Nike also desires to improve various aspects of the product and customer experience so as to deliver enhanced value to its customers. In this connection, a comprehensive marketing plan is desired to be developed by the managing director of Nike for the fulfilment of the business objectives of the organisation. The marketing plan for Nike comprises the situation analysis which is conducted through evaluation of the internal as well as the external parameters of the organisation to comprehend the competitive position and consumer behaviour in the market. In order to comprehend the taste and preference of the consumers in the market, the target market analysis and segmentation analysis has been conducted. The segmentation and target market analysis would help in comprehending the preference of the customers in the market and position the customers as per the segmentation of the consumers. The marketing strategy thereafter describes the fundamental aspect of the marketing strategy such as product, price, place and promotion which would assist in comprehending the features of the product, aspect of pricing, place of marketing the product and the manner of promoting the products. Finally, the implementation and control together with the budgeting and sales are also discussed to understand the implementation and financial aspect of the marketing strategy by Nike.

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The objective of Nike would be: –

  • Deliver value to the customer as per the prices of the product
  • Enhance market share within the next 5 years
  • Mitigate the competitive pressure through higher market share and competitive pricing within the next 5 years.

Market Situational Analysis

The market situational analysis comprises the comprehension of the internal and external environment pertaining to the organisation so as to formulate a comprehensive marketing strategy (Ferrell, 2016). The situational analysis can be conducted by way of SWOT analysis which can be highlighted as under: –

Strength: –

  • Depending on the internal environment of Nike, the following strength of Nike Inc can be identified: –
  • Nike enjoys strong global presence and brand value which high regard among customers.
  • Product development, tight brand control and huge expenditure on marketing allow the organisation to attract more customers.
  • Nike enjoys high brand recognition endorsed by sports event sponsorship, endorsements, and its portfolio of globally-recognised brand ambassadors

Weakness

  • Depending on the internal environment of Nike, the following weaknesses of Nike Inc can be identified: –
  • Nike is suffering from various inefficiencies and slow growth
  • Nike has huge costs which is reducing its margins and the organisation is looking forward to downsizing which has hurt the sentiments of the investors
  • High level of product development to suit the requirement of the customer is a major challenge (Ferrell, 2016).

Opportunities

Depending on the external environment of Nike, the following opportunities of Nike Inc can be identified: –

  • The primary area of opportunity for Nike Inc is to explore the possibility of Direct to consumer selling which can improve the share in retail segment
  • Product innovation and assigning suitable support prices would attract more customer and enhance market growth for Nike.
  • Enhance production of fashionable sportswear
  • Expansion of the brand and store in the emerging areas would enhance market share and consumer value.

Threats

Depending on the external environment of Nike, the following threats of Nike Inc can be identified: –

  • Nike is facing severe competition from brands like Adidas and Puma
  • The competition of Nike is engaging in product development especially in the fashionable segment which can reduce the market share
  • Nike is facing competitive pricing from other competitors which can make operations highly challenging for Nike.

From the SWOT analysis it can be comprehended that the consumers of Nike endorse its brand value and the products of Nike are preferred by its consumers. However, Nike requires to innovate and new products and engage in fashionable product development to enhance its market share. The pricing of the products needs to be competitive so as to attract more customer, deliver consumer value and most importantly gain competitive edge. The competitors of Nike being Adidas are engaging into aggressive product development to enhance market share along with aggressive pricing strategy. Nike needs to focus on both the product and pricing to mitigate competitive pressure (Etzel, Stanton & Walker, 2007).

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Competition:

Considering the level of competition for Nike in the Jordanian market, it can be said that, the level of competition existent in the market is considerable. There are a number of brands operating in the market, which deal in sports apparel such as Nike, Adidas, Under Armour, Reebok, Joma and Abbas. These can be considered as the competitors of Nike in the Jordanian market. However, the closest competitor of Nike would be Adidas. Considering the outcomes of the marketing survey conducted in the Jordanian market, it has been found that, from the point of popularity, it has been found that 49% of the customers have chosen Adidas, whereas, 35% of the customers have chosen Nike, while 9% of the respondents have chosen Under Armour and 75 of the customers have chosen the rest of the brands. Considering the result it can be said that Nike has acquired a greater market share (Etzel, Stanton & Walker, 2007).

Considering the perspective of customer loyalty, as per the survey result, 31% of the customers are loyal towards Nike, 30% of customers are loyal towards Adidas and another 33% of the customers keep on switching brands. This can be considered as an important point as Nike has a greater number of loyal customers as compared to Adidas. And the competition is intense between Nike and Adidas as 33% of the customers, which is a major share continue switching brands hence, both the market giants will compete to get them on their side.

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From the perspective of popularity, it has been found that Adidas has been able to leave Nike far behind in the competition. Considering the responses provided by the participants in the survey, it has been found that, 74% of the respondents have stated that Adidas is the most popular brand in Jordan and compared to that 19% of the respondents have stated that Nike is the most popular brand in Jordan. This implies that the popularity of Adidas is comparatively stronger than Nike (Etzel, Stanton & Walker, 2007).

There are various factors such as customer service, which have been considered to make a comparison between Nike and its biggest competitor, Adidas:

Comparing Element Nike                              Adidas
Kids & baby born apparel No such apparel is available in physical stores. They are available online only.

Not available, just online.

Such apparels are available, Adidas has been able to attract a considerable volume of customers in the kids and baby born apparel section and especially during the time of the EID Festival. Moreover, it has been found that parents generally prefer to purchase products for the entire family from a single shop.
Customer service Good customer service The customer service provided by Adidas is excellent. Moreover, the employees at Adidas are considerably familiar with the customers. It is assumed that Adidas is intending to position its excellent customer service provided to the customers as one of its competitive advantages.
Sale/discount per the year Nike provides a discount of the maximum of 40% on selected products Adidas provides discounts at a flat rate of 40% on all items.
Colours!! Only regular colours are available such as, black, white, pink, blue, red etc.

 

Adidas offers a wide variety of colours to choose from. Apart from the regular colours, Adidas also offers different shades of colour.
Price !! Nike charges the price of its items at an exorbitant rate. Adidas offers reasonable prices.
Quality !! Considerably good Good and suitable for the functions
Comfort !! Fit and flu on the body Fit and flu on the body
Design & style The same The same
Friendly environment product!! (renewable products ) !! Yes, they have ( PARLEY ) they are using the plastic waste in the area of the ocean to create Adidas PARLEY products.
Sports team uniform !! Messi – UV – many others
Sports apparel for Muslim girls Yes, they have a specific line –announced in 2018 – selling a performance “hijab” for Muslim women athletes. Many of the apparel works with “hijab” Muslim women
Frequency vouchers at the summer period ( with the sale season ) They didn’t have any vouchers at this time. They have a 15JD voucher when the costumers buy-in 100JD until 31st OCT in 9 branches here in Amman ( so the cashier told me “while the customer buy around 70JD or more, they told them about this voucher, so he increase his total to 100JD to get the voucher benefits”
Any another branch out of our “capital city” Amman No, there was 1 branch in Irbid, but they close it. Yes, they have in 1 branch in Zarqa& 2 branches in Irbid.

 

Considering the above points of comparison between Nike and its biggest competitor, Adidas, it can be said that Nike is required to focus upon multiple areas to fight the competition with Adidas, for instance, enhancing product base, modification of the strategy to provide a discount, improve customer services, enhancing the number of outlets, enhancing variety and colours for the customers to choose, reforming pricing strategy and many more (Solomon, Marshall & Stuart, 2008).

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Customer behavior:

Considering the responses gathered through conducting the customer survey in the Jordanian market, the following can be stated, in regards to customer behavior.

Demographically, the majority of the customers in the luxury sports apparel market are within the age group of 23-30 years, hence, the number of young customers is the major market segment. The second-largest market segment is the customers within the age group of 15-22 years, while the third-largest age group is within 31-38 years. Therefore it can be said that the young people within the age band of 15-38 is the main customer base for the sport apparel companies. However, the main target market is customers between the age group of 23-30 years (Solomon, Marshall & Stuart, 2008).

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On the other hand, it has been found that the market comprises more female customers as compared to male customers. Considering the responses provided by the customers in the survey, it has been found that 52% of the participants are female, whereas48% of them are male customers (Fifield, 2016).

Considering the responses generated through the survey, it can be said that the buying behaviour of the customers in the sports apparel segment is highly influenced by the brand image of the organisation. It has been found that 66% of the respondents have stated that they are brand conscious when it comes to purchasing sports apparel (Fifield, 2016).

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It has also been surfaced that customers are more inclined towards product quality as compared to other features of a product. It has been found that among the variety of product features that have been provided to the customers to choose to provide their opinion regarding the most important element that they consider while purchasing sports apparel, 43% of the customers have stated that they consider quality the most. Therefore it can be said that the quality of the product is a major aspect that can potentially influence buyer behaviour. The second major element is a comfort as 28% of the respondents have chosen price, and the third most important element is price, 195 of the respondents have chosen it (Cadogan, 2009).

Considering the main element that customers consider while switching brands, it has been found 38% of the customers have chosen design-style, while 35% of them have chosen quality and 26% of them have chosen the price of the product. Therefore, market players must put greater focus on enhancing the variety of styles and product quality to grab more customers. Product design style and quality are the two major elements that can enhance the competitive power of a brand in the sports apparel market. And the second major element is price; therefore, organisations in this industry must also focus on strengthening pricing strategy.

Customers are also motivated by the environment of their family, friends, culture etc. It has been found that 71% of the customers have provided positive responses to the above factors, while 29% of them are negative about it. Hence, organisations must take appropriate steps to respond to the needs of the customers (Cadogan, 2009).

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Target Market/Segmentation

The target market of Nike would be based on criteria and differentiation. The target market for Nike Inc, Jordan would be to cater to fashionable sports goods which are an emerging and lucrative segment in Jordan. The customers prefer fashionable sports goods and the competitors are developing products in this area so as to enhance market share and customer value (Westwood, 2016).

The segmentation of the market for Nike Inc, Jordan can be done as under: –

Geographic segmentation:

This implies segmenting the market on the basis of geographical locations and regions. Nike is required to target different regions in Jordan. Nike used to operate a single branch in Hybrid, however, the company closed the shop. The company is required to enhance its physical outlets in different regions in Jordan to enhance its sales volume and beat its top competitor Adidas.

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Demographic: The demographic segmentation would include segmentation on the basis of age, gender or income. Based on the demographic segmentation, the product would be developed based on the preferences of the demographic segments. Nike has enhanced the growth of the organisation through catering for the demand of income, age and demographic. Nike in Jordan is required to target the customers, who come under the age group of 23-30 years of age, as the demand for sports apparel is considerably higher in this group. Moreover, Nike must target both high as well as low end customers to enhance sales. At present Nike charges a higher price for its products, it is required to offer products both at higher and lower price ranges to get the maximum number of customers (Westwood, 2016).

Behavioural:

In case of behavioural segmentation, the market is generally divided on the basis of behaviour, usage, preference, choice etc. Considering behavioural segmentation, Nike is required to segment the market on the basis of the habit of the customers. Nike is required to target young customers, who love sports or fans of different sports clubs. The company is also required to target customers who are loyal to its biggest competitor Adidas, by focusing upon design, shades, customer services and other factors to enhance its market share (Jain, Haley & Voola, 2011).

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Psychographic:

The psychographic segmentation would denote the segmentation depending the lifestyle and attitude of the customer. In the Jordanian market, the preference of the customer towards fashionable sports goods is trending. The new product development by Nike should be based on the psychographic segmentation or taste or preference of the customers. Nike is required to target customers with both high and low lifestyle. At present Nike targets only customers with higher lifestyles by setting premium product prices. The company is required to offer products at lower prices also to attract a larger share of the market, which is being targeted by Adidas.

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Marketing Mix Strategy

The marketing mix strategy depends on the fundamental aspect of marketing which are product, price, place and promotion. The marketing mix strategy can be applied in Nike as per the following: –

 

Product – Considering the taste and preference of the consumer as per the survey conducted and also the segmentation of the customer, Nike should consider its focus on fashionable sports goods which would be able to generate high customer value and loyalty. The fashionable sports good are an emerging trend in Jordan and according to the survey; the income segment and the age segment prefer branded sports goods which are fashionable and trendy. Moreover, Nike must also put greater emphasis upon the quality of the products, as the customers consider this factor as the most important element while switching brands (Lilien & Rangaswamy, 2003).

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Price – the price of the products should be competitive since Adidas, Puma and other competitors of Nike and developing new products in the fashionable sportswear segment. The competitors are looking towards the creation of value and attracting a higher number of customers and market share. Therefore, Nike Inc should consider on market penetration and keep competitive prices which delivers value to the customer and at the same time deliver upon the requirement of the customers. The competitive pricing would enhance the sales and volume and would create higher customer value and loyalty. Nike is required to offer products in both low and high price ranges to get more customers (Lilien & Rangaswamy, 2003).

Place – Jordan is the market which is desired to be marketed by Nike for its various products. The segmentation and the target market of Jordan would help in identifying the place for its retail stores which would help in enhancing the volume of sales and attract more customers towards Nike. The retail stores need to be located in the main market places so as to mitigate competitive pressures and the preferences of the customer should be considered for each retail outlet. The company is also required to spread its operations in different corners of Jordan. The company is required to open more physical outlets and stop relying on its online store. The company used to run a single brand in Ibrid and it closed the same, its biggest competitor, Adidas runs two branches in Ibrid (Bowman & Gatignon, 2010).

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Promotion – Nike undertakes huge expenditure towards marketing and promotion including branding, sporting events and endorsements. The promotional techniques used by Nike towards selling its products highlights the quality and value and the features of product development considering the preferences of the target market. However, considering the responses provided by the survey conducted, customers generally prefer comfortable and stylish apparel. Hence, Nike is required to focus upon communicating about the comfort and new styles of its products while promoting them. Considering the preferences of the customer’s social media is the strongest media, which can be used by Nike to promote its products. The company can run its Facebook page, where the company can communicate about the comfortability of its products and the new styles available. Moreover, the company can also form a short film highlighting the comfortability and design style of its products and release the same over YouTube to get maximum customer response (Jobber & Ellis-Chadwick, 2016).

Implementation and Control

The implementation of the marketing plan of Nike depends on the efficiency of the plan and proper enforcement of the same. One of the weaknesses of Nike is its declining productivity and growth and also enhancing expenditure. In this relation, it is important that Nike develops efficiency through robust processes and controlling costs. The implementation of the marketing strategy would also depend on the skills, attitude and behaviour of the people in the organisation.

The expenditure in the organisation can be controlled through budgeting and other cost control mechanisms.  The marketing plan can be controlled through a comparison of the sales target and forecast with actuals and mitigating the differences. The pricing and product development efficiency would help in the proper implementation of the marketing plan.

Statistics and business research method

Budget / Sales Projections

($ in millions)

Sales 2018 2019 2020 2021 2022
Sports apparel 240 260 280 300 310
Gear 100 110 120 130 140
Accessories 60 70 80 90 100
Total 400 440 480 520 550

Figure: Sales forecast for next five years.

The projection indicates that the sports apparel segment would witness higher volume growth in comparison to other segments and the total sales would grow by about 10% year on year.

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References

Bowman, D., & Gatignon, H. (2010). Market response and marketing mix models. Boston: Now.

Cadogan, J. (2009). Marketing strategy. Los Angeles [etc.]: SAGE.

Etzel, M., Stanton, W., & Walker, B. (2007). Marketing. Boston, Mass: McGraw-Hill/Irwin.

Ferrell, O. (2016)Marketing strategy. [S.l.]: Cengage Learning.

Fifield, P. (2016). Marketing strategy. [Place of publication not identified]: Routledge.

Jain, S., Haley, G., & Voola, R. (2011). Marketing. Melbourne: Cengage Australia.

Jobber, D., & Ellis-Chadwick, F. (2016). Principles and practice of marketing. London: McGraw-Hill Education.

Lilien, G., & Rangaswamy, A. (2003). Marketing management and strategy. Upper Saddle River, NJ: Prentice Hall.

Solomon, M., Marshall, G., & Stuart, E. (2008). Marketing. Upper Saddle River, N.J.: Pearson Prentice Hall.

Westwood, J. (2016). How to write a marketing plan. London: Kogan Page.

Appendix:

Survey responses:

MARKETING PLAN OF NIKE IN JORDAN-SAMPLE

Figure 2: Age

MARKETING PLAN OF NIKE IN JORDAN-SAMPLE

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Figure 3: Gender

MARKETING PLAN OF NIKE IN JORDAN-SAMPLE

Figure 4: Are you brand conscious of sports apparel?

MARKETING PLAN OF NIKE IN JORDAN-SAMPLE

Figure 5: If you are going to buy sports apparel, which brand you like to choose?

MARKETING PLAN OF NIKE IN JORDAN-SAMPLE

Figure 6: Which is the most important element when you buy sports apparel?

MARKETING PLAN OF NIKE IN JORDAN-SAMPLE

Figure 7: Are you a brand loyal to any brand below, in terms of the sports apparel industry?

MARKETING PLAN OF NIKE IN JORDAN-SAMPLE

Figure 8: What is the main element, if you switch to buying the sports apparel of another brand?

MARKETING PLAN OF NIKE IN JORDAN-SAMPLE

Figure 9: While buying, do you consider the environment of your (Family, Friends, Culture, …)?

MARKETING PLAN OF NIKE IN JORDAN-SAMPLE

Figure 10: Which of the below is you, while you are buying the sports apparel?

MARKETING PLAN OF NIKE IN JORDAN-SAMPLE

Figure 11: What do you think, the best form of advertising for sports apparel is?

MARKETING PLAN OF NIKE IN JORDAN-SAMPLE

Figure 12: Which brand – in your opinion – is the most popular brand in Jordan ( regardless of your favourite brand )

MARKETING PLAN OF NIKE IN JORDAN-SAMPLE

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