Nike Marketing Strategy & Marketing Mix (4Ps)

Published in Products category by MBA Skool Team

Marketing Strategy of Nike analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Nike marketing mix, help the brand succeed in the market. Let us start the Nike Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

Nike Product Strategy:

The product strategy and mix in Nike marketing strategy can be explained as follows:

Nike offers a wide range of products including shoes, apparel and equipment. The products in Nike's marketing mix are focused on high quality and wide variety of goods for sports enthusiasts. It is the market leader in sportswear industry and derives its maximum revenue from sale of sport shoes. It offers great variety of products including special type of shoes for every category of sports. For eg.

It has special quality of shoes for football, basketball, cricket and other sports . Nike has adapted to the changing times are now designing and selling smart products which have capability of connect to iPod nano bringing about the combination of products from Apple Inc and Nike which measure the performance of the sportsperson. Besides these, NIKEid is an innovative sub brand of Nike which allows its customers to design and customize the features of their desired products as per their requirements which attracts the greater audience. Nike also offers new service of personal trainer to its consumers for various types of sports.



Image: pixabay


Nike Price/Pricing Strategy:

Below is the pricing strategy in Nike marketing strategy:

Nike is a market leader in the sportswear and sports equipment and employs value based pricing strategy to facilitate growth in sales and profits of the company. By this strategy, Nike measures the value customer is willing to pay for every product.

Now this value is used in determining the maximum price the customer is willing to pay for Nike's shoes, apparels or sports equipment. By this strategy, company ensures to retain the maximum buyer’s surplus. This strategy has largely benefited the company continuously raising its profits over last 5 years. The pricing is carried out targeting the consumers of the premium segment. By this strategy company caters to the niche market yet maintains its loyal customer base of customers paying premium price for its value added products. The competition in the market is also pretty high. With local brands providing good designs and affordable prices, it puts pressure on brands like Nike. Also with global competitors like Puma, Adidas entering all the markets where Nike operates, customers have more choice hence affects the pricing strategy. Hence, from the Nike marketing mix price strategy, we understand that being a market leader, is has a significant hand in controlling the prices.

Nike Place & Distribution Strategy:

Following is the distribution strategy in the Nike marketing mix:

Nike uses three channels to sells its wide variety of the products to its consumers:

1. Retailers

2. Nike online stores

3. Nike exclusive offline stores

4. Online sale through E-commerce

Retailers are the most significant places where its products are sold. In America Nike has more than 200,000 retailers and has its presence in more than 150 countries in the world. Nike has its manufacturing units in almost every country to minimize the logistics costs and getter better efficiency in the distribution. The density of stores across the city is so high in India that Nike poses great competition to Adidas, reebok and its rival brands. Nike uses E commerce websites like flipkart, amazon for sale of its products. By this Nike gets to showcase its almost every product reaching out to millions of users over the internet. Nike exclusive stores are very common in almost every city and suburb in the country catering to the requirements of consumers of specific geography.

This covers the place strategy in Nike marketing mix.


Nike Promotion & Advertising Strategy:

The promotional and advertising strategy in the Nike marketing strategy is as follows:

Nike as a brand is known for its strong branding and marketing activities. This because the promotional strategy in the marketing mix of Nike is extremely comprehensive, aggressive and uses all tools& media of marketing. Nike carries out exhaustive promotions through online campaigns over Youtube, Instagram and Facebook reaching out to millions of its fans. Nike engages sports stars as their brand ambassadors making a huge impact on the customer’s mind through variety of advertisements and promotional campaigns. Nike also grabs opportunity to project its brand by sponsoring to marathons, international events such as NBA basketball championship. Nike spends huge quantum of money to show its presence over the kits for the various football clubs. Nike company’s swoosh logo and images plays a major role in advertising the company. It employs great media coverage through electronic, social and print media promoting about its brand image making smart use of push as well as pull strategy for its consumers. Bulk discounts, timely discounts through online and offline stores attract millions of consumers every day and catches mass attention at a bigger sale. This summarized the Nike marketing mix.


About Nike:

Found in 1964, Nike is an American conglomerate has its presence in engaged in manufacturing, design, development, and worldwide marketing and sales of apparel, footwear, equipment, accessories and services. It is one of the world's largest manufacturers and suppliers of athletic shoes, sportswear and a major manufacturer of sports equipment. With its presence worldwide Nike markets its products under its own brand, as well as Nike+, Nike Golf, Nike Pro, Nike Blazers, Air Jordan, Air Force 1, Nike Dunk, Air Max, Foamposite, etc. and subsidiaries including Converse, Brand Jordan and Hurley International. It initially operated as a distributor for Japanese shoe maker but now has presence cross the globe with net income of US$3 billion+. With highly recognized tagline of “Just do it” and Swoosh logo Nike has been the sponsor for large number of national and internal level.

It’s not popularly known but, Nike is also in manufacturing of prescription eyeglass frames in the market. Nike also offers products for aquatic activities, tennis, skateboarding, golf, association football, baseball, football, cycling, volleyball, wrestling etc.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse marketing strategy and 4Ps analysis of more brands similar to Nike. The Marketing Strategy & Mix section covers 4Ps and 7Ps of more than 800 brands in 2 categories.

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The names and other brand information used in the Marketing Strategy & Mix section are properties of their respective companies. The companies are not associated with MBA Skool in any way.

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