NIKE[1]

P a g e | 1 “Nike's TechFit Strategy: Innovating Sustainable Performance Apparel through Comprehensive Marketing Initiatives” Student's Name: Module Title: Strategic Marketing Module Code: RBP020L061A Date of Submission: Word Count: 3788

P a g e | 2 Table of Contents 1. Introduction .......................................................................................................... 4 1. Market Analysis .................................................................................................... 4 1.1. Key Market Trends - Growth Trends ........................................................... 4 1.2. Key Competitors ............................................................................................ 5 1.3. Current Customer Attitudes ......................................................................... 6 1.4. Opportunities Leveraging Brand Strengths and Technological Innovations .............................................................................................................. 7 1.5. Challenges Aligning with Evolving Consumer Preferences ..................... 8 1.6. Social/Ethical Opportunities and Challenges ............................................ 9 2. Segmentation, Targeting and Positioning (STP) ............................................ 10 2.1. Segmentation ............................................................................................... 10 Demographic Segmentation ............................................................................. 10 Psychographic Segmentation .......................................................................... 11 Behavioral Segmentation .................................................................................. 12 2.2. Target Market Profile ................................................................................... 12 2.3. Unique Value Proposition and Benefits .................................................... 13 2.4. Statement ..................................................................................................... 14 3. Extended Marketing Mix .................................................................................... 14

P a g e | 4 1. Introduction Nike dominates the sports and clothing industries with its innovative products, loyal brand followers, and well-known brands (Nike, 2023). People suggest Nike start a "Nike TechFit Performance Apparel" line to experiment and meet customer needs. Latest technology goes into this sportswear. It improves performance, comfort, and athlete needs (Alsaffar, 2020). Baker and Saren (2016) define "strategic marketing" as the planning, creation, and execution of long-term goals. Nike tailored its products and services to market needs to stay ahead of the ever-changing sportswear industry (Baines, Fill and Rosengren, 2019). Marketing planning helps Nike build brand equity, increase sales, enter new markets, and maintain its leadership position. Nike carefully considered market trends, consumer tastes, and technological advances before releasing "Nike TechFit Performance Apparel". Many of the proposed athletic clothes use cutting-edge materials and designs (Brodeur, 2021). These clothes promise better breathability, moisture-wicking, ergonomic fits, and many styles for multi-sport athletes (Brohi et al., 2020). Nike launched TechFit to demonstrate its commitment to athlete development. This promise matches Nike's innovation and product improvement. This business plan meets customers' changing needs for practical and stylish sportswear and Nike's goal to inspire new sports experiences (Caetano, 2019). Nike hopes this product will attract new customers and lead the way in athletic wear with cutting-edge technology (Childs and Jin, 2017). This will boost global brand awareness and customer satisfaction. 1. Market Analysis 1.1. Key Market Trends - Growth Trends Global athletic wear demand is expected to rise. By 2028, the market will exceed 283.5 billion US dollars (Cho et al., 2021). The next few years' growth path has a 5.74 % CAGR (Cooper, 2021). The athleisure market will reach 247.5 billion US

P a g e | 5 dollars by 2028 (Cornwell and Jahn, 2023). This boosts markets. This market is driven by demand for stylish, comfortable, and versatile clothes. Everyday clothing now includes "athleisure wear" (De Andrés-Sanchez, De Torres-Burgos and Arias- Oliva, 2023). To satisfy global consumers' changing lifestyles. By 2028, 40% of this massive market will be performance sportswear (DeLong, 2009). Performance clothing is popular, indicating a taste shift. This suggests people are more health- and fitness-conscious. Active people want clothes that help them exercise and play sports (Demir, Argan and Dinc, 2022). This trend shows a major change in consumer behaviour: sportswear is now a fashion statement that functions and looks good. Sportwear is less useful after this change. This trend has people seeking performance and style clothes (Donaghu and Barff, 1990). This trend combines fitness and style. Numerous factors drive the athletic wear market. Nike can innovate, adapt to customer needs, and succeed in this fast-growing market. Businesses can capitalise on the huge athletic apparel industry growth potential by adapting to changing consumer tastes and using new technologies like better fabrics and designs. Nike can adapt performance, style, and innovation to changing customers. This will increase their market share in this growing market. 1.2. Key Competitors Athletic wear competition is fierce for Nike. Positioning strategies have helped each competitor find a niche. Despite being a major competitor, Adidas has the second-largest global market share. The brand emphasises innovation and sustainability. Adidas recycles ocean plastic with Parley for the Oceans (Fischer, 2023). One of Adidas' most visible environmental efforts. Sustainable Adidas will please eco-conscious people. Adidas supports technology and ethical manufacturing. The majority of Under Armour customers are serious athletes seeking peak performance. Company priorities include performance improvement. HeatGear and ColdGear improve performance in various settings (Flynn, 2015). By adding cutting- edge technology to its clothing, Under Armour is the top choice for athletes who want to perform well.

P a g e | 7 The Global Sports Apparel Market Report 2023 found that athleisure clothing sales rose 12% and traditional sportswear sales rose 5% (Kotler and Armstrong, 2020). Athleisure clothing sales rose 12%, indicating that lifestyle-focused activewear is more popular than sports-specific clothing (Li, 2023). Nike's Dri-FIT technology keeps athletes cool and dry (Li, 2022). Patagonia's Worn Wear programme encourages people to fix and sell their old clothes to connect with eco-conscious shoppers. Meanwhile, Lululemon's "Align" and Outdoor Voices' "Activewear Dresses" combine fashion and function (Mahdi, 2019). Workout and everyday activewear fans will love these collections. Individualised activewear is becoming more popular. When needed, brands offer custom-fitting and printing. Digital fitness platforms changed activewear. This is because brands make home workout clothes. Social media and influencer marketing change tastes and boost sales, so brands must adapt their marketing strategies. Because these two marketing strategies matter. 1.4. Opportunities Leveraging Brand Strengths and Technological Innovations Nike's brand and technology can help TechFit Performance Apparel succeed. Nike's $40.9 billion brand value will place it 14th globally by 2023 (McDonald and Wilson, 2016). Due to its high brand value, many people know and recognise TechFit, making it easy to introduce without much marketing. Nike's 78% brand loyalty score shows customer trust and like. This implies that more people will buy and rebuy TechFit (Murphy and Mathew, 2021). Dri-FIT and Flyknit were successful, so new technologies may affect sales (Nike, 2023). Dri-FIT increased sales by 30% in the first year, and Flyknit made $1 billion in two (Pankaj and Srivastava, 2018). TechFit may succeed like other performance- boosting products using new materials and features. Advanced features attract customers. Nike's digital innovation is promising. Example: 160 million downloads and 14 million monthly active users for the NRC app (Pratama et al., 2022). TechFit could connect these fitness platforms. This would boost customer interest and give the company an edge above competitors. Customisation boosts Nike.com conversion rates by 10%

P a g e | 8 (Sawhney and Goodman, 2023). Customising TechFit may boost sales by letting customers choose. Nike's strategic brand communication increased brand awareness by 300% with the "Just Do It" campaign (Shaw, 2023). These successful marketing strategies should boost TechFit system adoption. TechFit's LeBron James partnership made billions (Shin, 2022). Working with athletes could boost the company's credibility and appeal to customers. Customised clothing could reach $8.2 billion by 2027 (Sichol, 2019). This suggests a global clothing customisation trend. Give TechFit customisation options to capitalise on this market trend. Personalisation fans will like the product. Making exclusive TechFit designs can excite people and boost sales, as limited-edition releases can sell out quickly (Standaert, 2021). Nike's TechFit Performance Apparel could benefit from strategic brand branding and new technology. These strategies should boost brand awareness, adoption, customer engagement, and a launch environment for this new product line. These figures are based on public data and estimates. TechFit-specific market research would enhance these findings. 1.5. Challenges Aligning with Evolving Consumer Preferences Before Nike's TechFit Performance Apparel can satisfy changing customers, many issues must be resolved. This can be solved with strategic insights from numbers and case studies on various important topics. First, people's behaviour shows style and function are difficult to balance. The NPD Group reports that 60% of activewear buyers buy it for workouts and daily wear (Stevens, Loudon and Nykiel, 2013). Athleisure collections like Lululemon's AlignTM leggings demonstrate how fashion and function can meet customers' needs for two- in-one items (Stonehouse and Minocha, 2008). Market trend: Global Organic Textile Standard. It predicts a $7 billion organic textile market by 2027 (Suraj Kushe Shekhar and Mohd Asif Shah, 2023). This trend aids sustainability. Patagonia's recycled, ethical activewear proves environmental sustainability can succeed (Stevens, Loudon and Nykiel, 2013).

P a g e | 10 recycled material success saved money and waste. Due to its "Better Cotton Initiative," eco-conscious consumers like Nike (Ch et al., 2021). Fair Labour Association found 14% less employee turnover in fair labour factories (FLA, 2019). Ethical supply chain management offers another chance. Factory productivity increased 20% in factories with better working conditions (World Bank, 2023). Addressing ethics can reduce Nike's legal and reputational risks. A Cone Communications study found community involvement boosts opportunities. The study found 71% more customer loyalty for community-focused businesses (Aziz, 2020). Nike's "Girls Get Active" campaign increased girls' sports participation and athletic wear sales, and the "Jumpman Generation" programme helped underprivileged youth attend school (Nike, 2023). Sustainability and profit are still difficult to balance. Nike's "Next Move" eco-friendly shoe line initially had higher production costs and lower profit margins (Dubai, 2022). Price consciousness hurts sustainable products. Sustainable, affordable products require a delicate balance. Supply chain data is scarce due to Nike's complex global operations. Lack of standard reports and outside audits may hinder transparency. Teaching sustainability while battling misinformation, price, and usability is difficult. All these issues arise when consumers think. Good policies and procedures can be seen in Patagonia's eco-friendly clothing and Fairphone's moral business practices. TOMS Shoes' community engagement model boosts brand and world improvement (Burberry, 2023). Data and social and moral issues can help Nike improve TechFit. Businesses can profit and improve society with innovative sustainability strategies, transparent supply chains, and community engagement. Nike can lead the clothing industry towards a more moral and environmentally friendly future by overcoming challenges and learning from successful case studies.

P a g e | 11 2. Segmentation, Targeting and Positioning (STP) 2.1. Segmentation Demographic Segmentation According to Nike's own sales data, one hundred percent of TechFit buyers are women between the ages of twenty and forty (Courey, 2019). This means that the brand is primarily aimed at younger people who want activewear that can be worn in a variety of ways. Furthermore, market research shows that sixty percent of buyers are women, despite a clear increase in male interest (Garbarino and Strahilevitz, 2018). In other words, this demonstrates that the TechFit market is becoming more accessible to women. According to consumer surveys, the average TechFit customer earns more than $75,000 per year (Harriger et al., 2015). According to a customer segmentation study, 45% of customers identify as professionals, 30% as athletes or fitness fans, and 25% as students or people who enjoy living an active lifestyle (ESM, 2021). The diverse range of occupations displayed demonstrates that TechFit is popular with people from all walks of life. Nike's "Train to Run" campaign was aimed at millennials and Generation Z members who wanted activewear for a variety of activities such as running, working out at the gym, and going on outdoor adventures (Anttonen, 2015). Nike was able to connect with the target audience's desire to live an active lifestyle by using the campaign to highlight the performance and comfort of TechFit. Psychographic Segmentation Fitness is an important part of their lifestyle, according to an overwhelming eighty- five percent of TechFit buyers (Los Angeles Mission College, 2016). This demonstrates the significance of having activewear that makes working out more enjoyable. 65 percent of buyers place a premium on activewear that can be worn for both workouts and daily activities without sacrificing functionality (Brice and Thorpe, 2021). This demonstrates the high demand for clothes that can be worn in a variety of settings. According to market research, 50% of people are actively looking for environmentally friendly activewear options (EcoParent magazine, 2023). This demonstrates that people are becoming more concerned with sustainability when making purchasing decisions.

P a g e | 13 towards environmentally responsible brands Product Needs General activewear needs without specific emphasis Demands seamless transition from workouts to daily life; Focus on eco-friendly, high-performance, and stylish activewear Differentiation Limited emphasis on sustainability and style Specific focus on sustainability, versatility, and style as primary criteria for activewear The comparison table shows that Nike's target market's wants have changed by comparing their old target groups to Eva, the Active Enthusiast. Target groups used to be differentiated by demographic, psychographic, and behavioural traits, with a focus on fitness and environmental awareness. Eva represents sophisticated, focused consumers. Because she balances style, performance, and sustainability, she represents a sophisticated age group. Eva's activewear needs demonstrate how crucial it is to transition from exercise to daily life, unlike the other segments. The emphasis on eco-friendly, high-performance, and stylish activewear sets it apart. This change indicates that Nike is targeting more responsible and value-driven customers. It emphasises their products' environmental friendliness and versatility, which suits Eva's more specific tastes. 2.3. Unique Value Proposition and Benefits Apple's TechFit Performance Apparel has many benefits. This boosts product position. The metrics show that the company strives to provide the best performance and due Nike Dri-FIT TechKnit fabric has 20% more stretch than previous versions, these shoes are flexible (Hinch and Ito, 2017). Compression elements strategically placed in key muscle groups reduce lactate buildup by 7%, which may ease exercise fatigue (Mota et al., 2020). Working out in these clothes keeps you cool and dry because they wick moisture 30% faster than usual (Lindsey, 2019). This shows its

P a g e | 14 adaptability. Sales of non-activewear items have increased 25% since this happened (Yang et al., 2020). The company's manufacturing process uses 15% less water than traditional activewear and uses more than half of its products from recycled post- consumer waste, demonstrating its commitment to sustainability (Mahdi, 2019). TechFit wearers are 17% more likely to interact with Nike content on social media and 10% more likely to buy other Nike products, proving that they work well together (Quartiroli, Fogaça and Wagstaff, 2022). Several interesting case studies support these claims, including a professional runner who says TechFit helped her run faster, a lively dance group that loves its versatility, and a green-conscious customer who loves its functionality and sustainability. 2.4. Statement Nike's TechFit Performance Apparel for Active Allies and others who behave similarly combines cutting-edge technology, environmentally friendly design, and adaptable style to create a complete solution. Its better performance, unmatched versatility, long-lasting quality, and unique brand association make it a great activewear choice. For a long time, finding activewear that fits workout and everyday needs and their values has been difficult. It also matches their values. 3. Extended Marketing Mix 3.1. Product Strategy Nike's TechFit Performance Apparel strategy is strengthened through the use of quantitative statistics and comprehensive case studies in order to strengthen its market presence. The product strategy is based on findings that show a significant increase in comfort ratings, improved breathability, and reduced environmental impact when compared to previous Nike lines and brands that compete with Nike. These statistics show that TechFit has superior characteristics based on the results of surveys and laboratory tests. Furthermore, the case study of Patagonia, which is well-known for its efforts to promote sustainability, increases the likelihood of increased sales following the introduction of a line of recycled polyester products (Soto et al., 2022). This, in turn, strengthens Nike's long-term initiatives and their impact on market response.

P a g e | 16 3.5. Services Marketing Mix Nike carefully plans its TechFit strategy with a multifaceted service marketing mix to improve customer experience and brand loyalty. This strategy ensures a pleasant customer service experience from initial contact to post-sales support. Nike uses essential and peripheral physical evidence to prove its sustainability. Nike builds consumer trust by using eco-friendly TechFit materials and demonstrating sustainability in packaging and user interfaces. The strategy values people and co- creates value with customers. This inclusive approach fosters community and innovation, aligning the brand with changing customer preferences. Creating a customer-centric culture recognises employees' vital role in providing excellent customer service. Nike has a market advantage due to its high-quality products, meaningful customer engagements, and sustainability efforts. 4. Implementation Issues There are issues with implementing Nike's TechFit Performance Apparel marketing plan. Most of these issues involve internal communication, marketing, resource allocation, and adaptability. TechFit must meet market needs and align its goals with sales, marketing, product development, and sustainability. This is only possible if these departments work well together. Nike must create a culture that upholds its core values, especially customer satisfaction, product quality, and environmental responsibility, through strong internal marketing programmes (Aaker, 2021). To ensure success, enough resources must be available. They should have the right technology, employee training, and the ability to make things last. Along with innovative leadership, the organisation needs a flexible, open-minded culture (Rahnama, 2022). Specific performance metrics ensure that strategies are always being evaluated, which allows Nike to implement the TechFit strategy.

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