Marketing Mix of Nike and 4Ps (Updated 2023)

The Marketing mix of Nike analyses the 4Ps of Nike, which includes the Product, Price, Place, and Promotion of Nike. The Nike marketing mix (4Ps) is a comprehensive tool that the American multinational company uses to create various marketing strategies like Nike’s product strategy, product innovation, pricing strategy, price hike, place strategy, distribution network, promotion strategy, and a comprehensive marketing plan.

Nike’s marketing mix laid the groundwork for boosting the brand image, enhancing customer perception, and increasing the Nike customer base in the target market. It wants to be the brand that customers prefer over any other sports brand, so it has created robust marketing strategies that will help it achieve desired business goals in the industry.

Introduction of Nike

# Nike Inc

• Origin Country: United States of America
• Founder: William Bowerman and Phil Knight
• Founded: 1964
• Headquarters: Beaverton, USA
• Employees: 79,100
• Annual Revenue in 2023: 46.710 billion USD
• Net Income in 2023: 6.046 billion USD
• Global Sportswear Sales in 2023: 44.54 billion
• Market Cap in 2023: 160.65 billion USD

The American multinational company Nike is the biggest sportswear brand in the sportswear industry based on sportswear sales. Nike’s sneaker crown makes it the largest supplier of sporting apparel and athletic shoes and one of the largest sports equipment manufacturers in the world.

Nike was founded as Blue-Ribbon Sports in 1964 but changed its brand name from Blue-Ribbon Sports to Nike Inc. in 1971. Bill Bowerman, the co-founder of Nike, was a track and field coach credited with designing the “Moon Shoes,” sold later for a whopping amount to Miles Nadal at a Sotheby’s auction.

The company markets products under brand names like Nike, Nike CR7, Nike Air Jordan, Converse, Nike Dunk, Nike Blazers, Nike Skateboard, Nike Cortez, Nike Air Max, Nike+, Nike Air Force 1, Nike Golf, Nike Pro, etc.

Nike operates with the help of subsidiaries Converse and Nike Air Jordan and retail stores under the brand name Niketown. It sponsors international and local sports teams and professional athletes of Lawn Tennis, football, and other sports like Golf, swimming, etc., with the help of the Swoosh Logo and trademark Just-Do-It.

Nike’s Target Market: Nike’s Marketing Mix

Nike’s marketing strategy favors the brand as it helps target the older and younger generations easily. Nike products are a favorite of every gender, irrespective of age; hence, Nike’s target audience is men, women, and children.

The brand believes in premium branding and offers casual footwear, athletic footwear, sports equipment, sports shoes, running shoes, etc. It is loved by sports teams and professionals looking for high-quality branded products.

Nike’s target market is also the middle-class masses who love value-based pricing products and are looking for quality products that they see sports stars and professional athletes like Serena Williams, Michael Jordan, and Lebron James supporting through advertising and marketing campaigns.

Nike Marketing Mix (4Ps) and Nike’s Marketing Strategy

The Nike marketing mix focuses on Nike customers. Hence, it has created customer-friendly marketing strategies to help attract both existing and potential Nike’s target audience in the sportswear industry.

The Nike marketing strategy is one of the significant reasons for premium branding, product innovation, and direct marketing in the target market. It has helped to maintain the consumer perception of Nike as a premium brand with quality products. Nike’s sneaker crown as the best brand in the sneaker industry is because of its marketing mix framework and marketing strategies.

Nike Product Strategy

Nike develops, designs, markets, and manufactures clothing, sports equipment, accessories, footwear, and related services. Innovative styles, unique designs, and the highest quality materials have made the brand a favorite of international and local sports teams worldwide.

The company designs Nike products and sports equipment for sports like football, baseball, volleyball, cycling, cross-training, aquatic activities, lawn tennis, Golf, etc. The first athletic shoe from the brand was a track sports shoe, and since then, the brand has launched several Nike Products under Air Max, Nike NYX, Nike Cortez, Nike SB shoes, etc. Casual footwear, sports, jogging, and athletic footwear from the premium brand have become revered Nike products worldwide.

Apple Inc. collaborated with Nike for the Nike+ product line that helps monitor a runner’s performance. The newest pair of Nike shoes have flywire and Lunarlite foam for minimizing and distributing weight. Nike shoe Air Zoom boasts air-cushioned sole and Nike ZoomX Vaporfly NEXT of ZoomX foam.

Nike’s Products (Product Mix): Nike Marketing Strategy

Nike’s product mix in the Nike marketing strategy includes shorts, jerseys, shoes, cleats, baselayers, sports equipment, etc. It is one of the top Athletic footwear brands, and its sports shoes are revered by professionals worldwide. The retro-looking Nike Cortez has been designed for running, and the younger generation loves the sports shoes.

Customer preference for Nike products has made this brand a status symbol. Its distinct Swoosh logo is synonymous with hip-hop and urban fashion. Since the 1980s, Nike shoes, sports equipment, and clothing, especially Nike Blazer, leggings, crop tops, sweatpants, slouch socks, leg warmers, bomber jackets, baseball caps, shell suits, tracksuits, Nike Air Force 1’s and Nike Air Max shoes have become the preferred product of the younger generation. Customers prefer the casual and relaxed Nike Blazers for skateboarding.

In 2015, the brand introduced a self-lacing Nike Shoe called Nike Mag and a premium line of streetwear called NikeLab. The popularity of Nike sports shoes is unmatched in the world.

Some of the best Nike products are

Nike AIR JORDAN 2 RETRO LOW TWO 18 MEN’S SHOES

• NIKE AIR MAX RUNNING SHOES
• NIKE BLAZER MID-77 VINTAGE
• NIKE SUSTAINABLE MATERIALS NIKECOURT DRI-FIT ADVANTAGE
• NAOMI OSAKA COLLECTION – WOMEN’S HIGH-WAISTED CROPPED TRAINING LEGGINGS
• NIKE AIR FORCE 1 ’07 LV8 EMB
• NIKE ZOOM FLY 5 SPORTS SHOE
• NIKE BLAZER MID 77 JUMBO
• NIKE LEBRON JAMES 17 BASKETBALL SHOES

Nike, a global leader in athletic footwear, apparel, equipment, and accessories, offers a diverse product mix that caters to various sports and lifestyle needs.

The product mix of Nike in 2023 is as follows (Source)

1. Footwear: Nike’s most prominent product category, featuring a wide range of shoes for sports like running, basketball, soccer, and more. This includes famous lines like Air Max, Nike Free, and Air Force 1 and specialized footwear for athletics, skateboarding, and Golf.
2. Apparel: Includes athletic and casual wear for men, women, and children. This category covers everything from sports-specific clothing (like soccer kits and basketball jerseys) to general fitness wear (like leggings, t-shirts, and sports bras). Nike also offers lifestyle apparel under its Nike Sportswear line.
3. Equipment: Nike produces a variety of sports equipment, such as basketballs, soccer balls, and golf clubs. They also offer fitness accessories like yoga mats, gloves, and protective gear.
4. Technology: Nike integrates technology into its products, such as the Nike+ ecosystem, which includes fitness-tracking devices and apps designed to enhance athletic performance and engagement.
5. Sports and Team Merchandise: Producing official merchandise for sports teams, including national teams and significant sports clubs worldwide, in sports like soccer, basketball, and American football.
6. Accessories: This includes a wide range of products like socks, bags, hats, sunglasses, and watches. These accessories often complement Nike’s primary product lines.
7. Customized and Limited Edition Products: Nike offers customization options through its NIKEiD service, allowing customers to design shoes and gear. They also regularly release limited edition and collaboration products, often with high demand.
8. Sustainable Products: Nike focuses on sustainability, developing products with environmentally friendly materials under its ‘Move to Zero’ initiative.

Nike’s product mix is dynamic and continuously evolves to meet changing market trends, consumer preferences, and technological advancements.

Nike Place Strategy

The place and distribution marketing strategies in Nike’s marketing mix focus on creating and selling innovative product lines to boost customer perception of the brand. Nike has a vast distribution network and several channels to efficiently distribute its products from the manufacturing centers to the end customers.

Nike sells its products through retail outlets, fancy stores, Nike Stores, its company’s online stores, and other online stores. The company has chosen online and retail shops as its selling points because it wants to move with changing times and realizes that some customers might prefer shopping online. In contrast, others might want to look at the product in the retail stores and then make a purchase.

Nike Place and Distribution: Nike Marketing Strategy

The Nike marketing strategy for place and distribution is quite simple. It wants its products to reach as many customers as possible and hence has taken the help of retail outlets and online stores to sell the products.

The place and distribution channels in the Nike marketing strategy include the following.

Retail Stores

Nike sells its products with the help of more than 1000+ retail stores worldwide. These brick-and-mortar retail outlets are popular amongst customers who prefer to browse and buy at physical stores. Niketown, the first of the Nike retail outlets, was opened in Downtown Portland, and since then, the company has opened many more. The Nike stores are big fancy stores with a professional zone and a customization booth offering consumers premium experiences and emerging products.

Online Store

Although the company’s physical retail outlets are popular, so is the company’s website, where consumers can buy the products hassle-free. Consumers can also purchase products from other online stores like Amazon, Myntra, and Flipkart.

Nike App

Products can also be ordered via the Nike App, where the Nike Fit feature uses AI and data science to measure the right product size accurately.

Nike’s place strategy is as follows:

1. Global Retail Stores: Nike operates numerous brick-and-mortar retail stores worldwide, including flagship stores, factory outlets, and NikeTown locations, offering a comprehensive and immersive brand experience to customers.
2. Online Platforms: The company heavily emphasizes its online presence through its e-commerce platform, Nike.com, and mobile apps, providing a convenient shopping experience and broader reach.
3. Third-Party Retailers: Nike products are widely available at various third-party retailers, including sports stores, department stores, and specialty shops, ensuring accessibility to a broad customer base.
4. Geographic Expansion: Nike strategically enters and expands internationally, tailoring its presence to local consumer preferences and trends, particularly in emerging markets.
5. Selective Distribution: The brand uses a selective distribution strategy for its premium and limited-edition products to maintain exclusivity and prestige, often releasing them in specific stores or online platforms.

Nike Pricing Strategy

The Nike marketing strategy and marketing mix is quite clear on price. The products are of high quality; hence, the brand has opted for value-based and premium-based pricing strategies. Nike wants to spread its product presence and create a strong customer base; hence, it offers incentives to its customers like periodic discounts and Easter Sales.

Nike’s Prices and Pricing Strategies: Marketing Mix of Nike

Nike’s marketing strategy focuses on pricing strategies to maintain its existing customers and lure potential consumers.

Value-Based Pricing Strategy

Nike’s marketing mix has adopted a value-based pricing strategy for its products. It considers the prevailing prices in the market and measures what the customers are willing to offer for the brand’s products. The value-based pricing strategy has worked in favor of the brand and has resulted in high sales volumes.

Premium-Based Pricing Strategy

Nike’s marketing mix focuses on product quality and innovation that demands a premium price for a product. Nike has adopted a premium-based pricing strategy for its superior products as its customers belong to the upper middle class and professionals who do not mind the premium prices of the product.

Products with premium prices are often considered luxury items, as with Nike, whose premium products are in great demand amongst all customers.

As a leading brand in the sportswear industry, Nike employs a multifaceted pricing strategy that balances competitiveness with brand prestige. Here’s an overview:

1. Premium Pricing: Nike typically adopts a premium pricing strategy for its high-quality products. This approach reflects the superior quality and technological innovation in their products and helps maintain the brand’s prestigious image.
2. Market-Based Pricing: Nike often sets prices based on market and competitive conditions. This dynamic approach allows them to stay competitive in different segments, adjusting prices based on consumer demand, competitor pricing, and market trends.
3. Skimming Strategy: Nike sometimes uses a price skimming strategy for new and innovative products, especially in their high-tech footwear and exclusive designer collaborations. They initially set higher prices to target early adopters and enthusiasts, gradually lowering prices as the product reaches a broader market.
4. Psychological Pricing: Nike skillfully employs psychological pricing strategies, setting prices just below a round number (e.g., $99.99 instead of $100). This tactic subtly encourages purchases by making prices appear lower than they are.
5. Segmented Pricing: Understanding the diversity of its consumer base, Nike adopts segmented pricing. Different products are priced differently based on factors like product line, performance features, and target demographic, ensuring that there’s something for every market segment, from budget-conscious buyers to luxury seekers.
6. Discount and Sales Strategy: To manage inventory and attract a broader range of customers, Nike periodically offers discounts and sales, especially on out-of-season or slower-moving products. This strategy not only helps in clearing stock but also makes the brand accessible to price-sensitive customers.

Through this multifaceted pricing approach, Nike caters to a diverse customer base, sustaining its position as a premium brand while remaining competitive and accessible in a global market.

Nike Promotion Strategy

Nike’s marketing strategy uses an aggressive promotional strategy and premium branding to boost its brand image and visibility in the market. Its marketing plan involves digital marketing, personal communication through social media, and direct marketing to increase consumer perception of the brand.

Traditional Media

Nike uses traditional media to market its products and boost its brand image. Catchy ad campaigns with celebrities are shown on television channels, radio, in newspapers, magazines, billboards, and hoardings.

Sales Promotion Marketing Strategies

As part of its sales promotion marketing strategies, the brand offers bulk and timely discounts like Christmas and Eater Sales through online and retail shops.

Social Media Channels

The world-renowned company realizes the importance of social media channels and has effectively used social media platforms to its advantage. The objective is to create compelling content so that simple keyword research will highlight the brand, its products, its promotion strategy, and its achievements.

Nike has created user-generated content and shown them on social media channels. For example, “NikeWomen” is an Instagram channel for women that encourages a sporty and healthy lifestyle. The brand is highly active on Twitter and welcomes customer feedback and conversations as they reflect a consumer’s thoughts.

The bold website design and stunning visuals shown on the company website are part of an active promotion strategy where the company projects itself as a youthful, unique, and vibrant brand.

Celebrity Endorsements

The company has partnered with celebrities, sports stars, and influencers like Serena Williams and Rafael Nadal to gain maximum brand visibility. The company has used affiliate marketing and famous athlete endorsements to promote lifestyle, fashion, and sports topics on YouTube.

Celebrity Collaborations

Nike has collaborated with British Designer Samuel Ross to produce The Nike x A-COLD-WALL Capsule Collection and with Michael Jordan to produce some of the finest footwear in the world.

Loyalty Programs

Nike’s marketing strategy realizes the importance of loyalty programs and has constantly improved its rewards program to make it one of the finest loyalty programs in eCommerce. Shoppers can sign up via the Nike website or app, become a member, and enjoy related benefits like an early entrance to product launches, rewards for being regular customers, free delivery, and special offers.

Product Positioning

Nike is a sportswear brand and has used market segmentation to position its products effectively in the industry. Whenever a customer thinks of a product, he automatically connects it with its unique features.

Swoosh Logo and Just Do It Trademark

The “Swoosh” logo and “Just Do It” trademark are used to sponsor professional teams and athletes worldwide.

Nike Digital Strategy – Notable Digital Marketing Campaigns

Nike Golf – Tiger Woods Ball Juggling

Released in 1999, the ad campaign “Nike Golf – Tiger Woods Ball Juggling: is one of the best golf commercials from the company

Nike Football – “Write the Future”

Released in 2010, “Write the Future” was a 3-minute shot with star players Wayne Rooney, Cristiano Ronaldo, Didier Drogba, Frank Ribery, Ronaldinho and Fabio Cannavaro. It created records and won the Film Grand Prix award at the Cannes Lions Marketing Awards in 2011.

Just Do It

The first Do It ad was released in 1988, featuring Walt Stack running over the Golden Gate Bridge. The inspirational slogan has repeatedly been used to gain better visibility.

key Takeaways from the Nike Marketing Mix (4Ps)

The key takeaways from the Nike marketing mix and Nike’s marketing strategy are-

• Figuring out the needs of the audience
• Creating content that addresses the audience’s needs and requirements
• Making sure that the marketing strategies can meet customer demands successfully
• Keeping the momentum going with eye-catching ad campaigns

Nike’s promotion strategy is as follows:

1. Celebrity Endorsements and Sponsorships: Nike leverages high-profile athlete endorsements and sponsorships in various sports to enhance brand visibility and credibility.
2. Innovative Advertising: The company employs creative and often inspirational advertising campaigns across multiple media platforms, including TV, online, and print, focusing on storytelling and emotional connection.
3. Digital and Social Media Marketing: Nike extensively utilizes digital marketing and social media platforms, engaging customers through interactive campaigns, influencer partnerships, and personalized online experiences.

Some Recent Video ads and Print ads of Nike are:

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