Disruptive Marketing Plan: Brand Strategy for Nike

BRAND PROPOSAL PAPER ASSIGNMENT 1 Disruptive Marketing Plan: Brand Proposal Paper Assignment Faizan Malik School of Business, Liberty University Author Note Faizan Malik I have no known conflict of interest to disclose Correspondence concerning this article should be addressed to Faizan Malik Email: FMalik@liberty.edu

BRAND PROPOSAL PAPER ASSIGNMENT 2 Introduction A proper marketing strategy can be used by businesses to achieve organizational goals by understanding their customer’s needs and developing targeted approaches to gain an advantage amongst the competition within their industry. By utilizing methods, such as the 4Ps of the marketing mix, organizations can achieve benefits such as increased revenue and stronger brand loyalty. Nike, an American-based multinational organization, is a leading producer of athletic wear across the globe. According to Johnston, Nike “designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories” with a majority of their products being manufactured by independent contractors and sold directly to their customers (Johnston, 2021). Nike has had sustained success, becoming one of the most popular and successful athletic footwear brands globally. Jurek estimates that Nike owns 48% of the United States athletic footwear market and 31% of the global market (Jurek, 2019) with Nike reporting an annual revenue of $44.53 billion in the 2021 fiscal year (Nike, 2021). By implementing strategies such as the 4Ps, Nike can further cement their position within its industry and potentially explores new areas of growth for the organization. Disruptive Brand Plan Given Nike’s sustained success, a deeper dive into its current marketing strategy is needed to explore how the organization can utilize alternative methods to enhance its brand. Nike has undergone several iterations of its marketing strategy over the years, beginning with the co-founder Bill Bowerman’s research into and emphasis on jogging as a form of physical activity which sparked the “running boom” in the ’70s (Latham, 2015) and carved a place in the market for athletic shoes. Nike then shifted to a model in which customer interests were the highest priority, basing their production based on the perceived needs of their customers. By positioning

BRAND PROPOSAL PAPER ASSIGNMENT 3 their brand as synonymous with sportswear through means such as their Nike Swoosh logo and partnering with professional athletes, Nike has positioned their products in a manner that has allowed them to become a leader within the athleticwear. Fast forward to more recent times, Nike’s market strategy has shifted its focus to include more advanced technologies, both for its products and sales. By utilizing various forms of social media and having a robust online shopping experience, Nike has adapted to the changing needs of its customers while remaining true to its vision. Despite their success, Nike continues to spend a significant amount on marketing and other forms of advertisement. According to Serrano, Nike spent $17.54 billion on advertising between 2015 and 2022 (Serrnao, 2022). As a result, Nike is forced to list their products at premium prices which alienate certain demographics from purchasing their products. Nike’s reliance on professional athletes may be detrimental to how customers view its brand and the potential growth of the organization. As such, Nike could benefit from incorporating new approaches to its marketing strategies. For example, by collaborating with other brands to explore new markets. Uggla and Asberg explain that brands can benefit from collaborations in three main forms: functional, emotional, and self-expressive benefits (Uggla & Asber, 2010). Functional benefits, which have the greatest impact on the customer, focus on attributes of a product such as the comfort of a pair of running shoes. Emotional benefits provide customers with a positive feeling when purchasing products and self-expressive benefits allow customers to promote their self-image (Uggla & Asber, 2010). Marketing Mix According to Goi, a marketing mix is used as a conceptual framework by organizations in the decision-making process when determining how to meet customer demands, both in the short

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BRAND PROPOSAL PAPER ASSIGNMENT 4 and long term (Goi, 2009). The 4Ps (product, price, place, and promotion) are used as key considerations for products by organizations and often act as a catalyst for the product’s success. Below are the 4Ps of Nike's potential collaboration with other brands. Product Although Nike is synonymous with various athletes, such collaborations only appeal to those with an interest in sports. To expand its market, Nike should seek a collaboration with a non-sports-related brand and offer products that are not necessarily tailored specifically for athletics only. By collaborating with an electronics brand such as Apple or Samsung, Nike can essentially create a new market of electronic gadgets that can also be used in athletics. By offering its line of wearable smart devices, such as smart watches, Nike can easily expand into additional markets. Price Given Nike’s marketing expenditure, potential collaboration and introduction of the new line of wearable devices must be competitively priced to ensure success. Apple’s smartwatch, the Apple Watch, is currently priced at $399 for a baseline model, and Samsung offers its Galaxy Watch for $114.99. Given the wide range of pricing models, Nike should plan to enter the market priced below both Apple and Samsung for introductory models, with options to pay for additional features. Place Nike utilizes a combination of retail stores, their online store, and their retail outlets to sell its existing products. A line of Nike smartwatches could also be sold in such locations, but could also be expanded to other electronic retailers such as Best Buy, Walmart, and Amazon.

BRAND PROPOSAL PAPER ASSIGNMENT 5 With a potential collaboration, Nike could offer their products in retail stores of brands such as Apple and Samsung. Promotion Currently, Nike engages in several promotional tactics that include advertising, direct marketing, sales promotion, and public relations. With advertising being one of the main sources of bringing in new customers, the same should be followed for their smartwatches. Advertising should be expanded into additional areas that promote technological advancement and electronic gadgets. Target Audience According to Brohi et al., Nike’s current target audience includes individuals with higher socioeconomic statuses, who identify as sports enthusiasts with active lifestyles (Brohi et al., 2016). While this target audience can remain in place, Nike should plan to market their line of smartwatches to those interested in electronic gadgets. Technology provides Nike to expand into the consumer electronics market, which covers most levels of socioeconomic status and is anticipated to have a CAGR of 5.1% over the next five years (Valuates Reports, 2022).

BRAND PROPOSAL PAPER ASSIGNMENT 6 References Brohi, H., Prithiani, J., Abbas, Z., Bhutto, A., & Chawla, S. (2016). Strategic Marketing Plan of Nike. Johnston, M. (2022). “How Nike makes money?” Retrieved from https://www.investopedia.com/articles/markets/080415/how-nike-nke-makes-its- money.asp Jurek, M. (2019). “Why Are Nike Shoes So Darn Popular?” Retrieved from https://medium.com/@michelejurek16/why-are-nike-shoes-so-darn-popular- fa3b5426730e Goi, C. L. (2009). A review of marketing mix: 4Ps or more. International journal of marketing studies , 1 (1), 2-15. Latham, A. (2015). The history of a habit: jogging as a palliative to sedentariness in 1960s America. cultural geographies , 22 (1), 103-126. Nike. (2021). “Investor News Details: Nike, Inc. reports fiscal 2021 fourth quarter and full year results.” Retrieved from https://investors.nike.com/investors/news-events-and-reports/investor-news/investor- news-details/2021/NIKE-Inc.-Reports-Fiscal-2021-Fourth-Quarter-and-Full-Year- Results/default.aspx Uggla, H., & Åsberg, P. (2010). The Benefits and Risks of Strategic Brand Collaboration. IUP Journal of Brand Management . Valuates Reports. (2022). “Consumer electronics market size to grow at a CAGR of 5.1% over the next 5 years.” Retrieved from

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BRAND PROPOSAL PAPER ASSIGNMENT 7 https://www.prnewswire.com/in/news-releases/consumer-electronics-market-size-to- grow-at-a-cagr-of-5-1-in-the-following-5-years-valuates-reports-855983723

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