Since the end of the 20th century, fundamental and profound changes have taken place in the world of business and marketing in particular. Therefore, for the past decades, attempts to keep in pace with fast-moving and ever changing environment of the sports world has been one of the greatest challenges for sport companies and producers of sport goods. “The evolution of sports marketing strategies to meet the needs and wants of the consumer continues to be a priority of practitioners worldwide” (Shank 6). Consequently, companies engaged in sports business have to encounter numerous challenges on a daily basis and have to adjust their marketing mix to the ever-changing and challenging environment of the modern business world in order to stay afloat under the conditions of intense competition. The basic elements of marketing mix are the sports product, price, promotion, and distribution. The marketing mix of Nike, Inc. consists of the following elements:
Product: “One of the basic sports marketing activities is developing product and service strategies” (Shank 27). Nike, Inc. is a multinationational company that specializes in the production of sport goods, including sport shoes, apparel, athletic bags, and accessories. The product mix of the company comprises shoes and clothes both for men and women, as well as for children and adults. The available range of products also includes apparel for different sports, such as running, baseball, tennis, swimming, football, soccer, fitness and golf collections. Nike also has a special line of casual footwear and apparel for men and women. What is more, the company produces sport gear and equipment, including sport balls, skates, hockey sticks, protective gear, etc. Taking into consideration that since 1970s, demand for sport and sport-related goods continued to gain momentum, “the majority of the existing and emerging commercial entities, including Nike, fought to snatch up endorsement opportunities” (Shank 5). For instance, that is how the golf division of Nike appeared, which eventually found its niche in the market and made sales from apparel “club up more than 50%” during just one fiscal quarter (Kang 1). I would not only adhere to the existing product strategy, but I would continue diversifying the product range on the ground of ever-increasing needs of the company’s customers.
Pricing: The overall pricing strategy of Nike, Inc. can be defined as that combination of psychological pricing strategies and product mix pricing strategies. The pricing strategy of the company is elaborately designed to be competitive to the other companies producing sport goods. Moreover, the pricing on Nike sport shoes and casual footwear is considered to be premium segment, or prestige, pricing, which is one of the psychological pricing strategies. Nike, Inc. also practices price adjustments, including practices such as price reductions, price allowances, and discounts. In general, I consider this pricing strategy to be efficient and profitable. However, I would put greater emphasis on psychological pricing strategies.
Promotion: “In addition to advertising, promotional elements include communicating with the various sports publics through sponsorships, public relations, personal selling, or sales promotions” (Shank 28). Nike, Inc. successfully employs all of the above-mentioned elements of promotion mix. The company pays top athletes and celebrities to promote its products. Nike, Inc. sponsors various sport events and teams and provides uniforms for them, including National Football League. I personally consider such combination of promotion elements to be an effective promotion strategy and, therefore, I would adhere to this existing strategy by extending ties and relations with external companies and organization, e.g. sport teams that Nike might sponsor. I would also put a great emphasis on public and community relations by increasing consumer awareness not only of Nike products, but also of the company’s CSR, its commitment to the community we live in as well as its activities in this field.
Placement: As of today, Nike products are sold in exclusive Nike stores as well as in multi-brand stores of sport apparel in more than 200 countries all over the globe. On the international scale, the company sells its goods through independent distributors, licensees and subsidiaries. The majority of production facilities are located in Asia due to the cheap cost of labor. I would also adhere to the existing placement strategy as it seems to be rational enough. In the meantime, I would like to increase the number of exclusive Nike stores worldwide to attract as many customers as possible and to win popularity as a premium segment.
Works Cited
Kang, Stephanie. "Nike Golf Finds the Sweet Spot." Wall Street Journal: D1-D2. Print.
Shank, Matthew D. "Emergence of Sports Marketing." Sports Marketing: A Strategic Perspective. 4th ed. Prentice Hall, 2008. 3-45. Print.
