Tactics and marketing function audit Product(Customer benefits) Nike is focused on six product key categories: running, basketball, football, men’s training, women’s training and sportswear. Each category team is immersed in its sport’s culture, connecting with consumers and building deep relationships. Nike believes itself to be a premium brand, and they earn that reputation by delivering experiences that surpass the expectations of our consumers. Nike produces a wide range of sports equipment. Their first products were track running shoes. They currently also make shoes, jerseys, shorts, baselayers, etc. or a wide range of sports including track and field, baseball, ice hockey, tennis, association football, lacrosse, basketball and cricket. The most recent additions to their line are the Nike 6. 0 and Nike SB shoes, designed for skateboarding. Aside from that Nike has introduced cricket shoes, called Air Zoom Yorker, designed to be 30% lighter than their competitors’. In 2008, Nike introduced the Air Jordan XX3, a high performance basketball shoe designed with the environment in mind. What is also part of Nike is the program called Nike I-D at nike. om, which allows customers to customize designs of some styles of Nike shoes and deliver them directly from manufacturer to the consumer. The customer benefits are: -Nike delivers experiences that surpass the expectations of their consumers such as retail experiences and communications that can be made by their share of passion for sports and design. -Nike makes innovative products for their customers, such as the hyperdunk basketball shoe, Zoom Victory Spike, LunaRacer to Swift apparel, the Pre Cool Vest and the program that allows customers to customize designs of some styles of Nike shoes. Nike brings it authentic self to the market and give the commitment to innovate for a better world. Nike is focusing on creating products that reduce their environmental impact and showcase sustainable innovation, helping in improving working conditions across the industry’s supply chain and Nike invests in communities through different programs such as the Lance Armstrong foundation. Products function audit Nike has developed sound product-line objectives as mentioned above and in the objectives???. They have a wide and extensive product-line.
It’s important for the health of the company to add new products. Nike does that every year by investing in new innovative products. Some products would benefit from quality, style or feature changes and Nike tries to improve that every year and that is been seen back at the good results in finance (see productivity audit). Price(Compensation) Nike makes use of premium pricing, because of the uniqueness about the product and service. This approach is used, because Nike is a big name already, people know the brand for it’s quality, being innovative and trendy.
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That’s why Nike is able to ask high prices for their products, as high as the customer is willing to pay for the products and service. Prices for shoes are between 40 and 300 euro for men shoes at the online Nike store. This are above the average prices asked for sport shoes, looking at other (random) A brands: Adidas shoes are between 50 and 100 euro, Puma shoes are between 45 and 250 euro, Reebok shoes are between 50 and 150 euro. When customers buy products from Nike, they buy a qualitative, innovate and well-designed (trendy) product and then the compensation in price will be made.
Important to notice is that customers who don’t have much money to spend has also the opportunity to spend for shoes in a lower price range. There is a wide price range for the customers to choose from, but the more unique or trendy designed the product is, the higher price will be asked. Price function As described above Nike makes use of premium pricing and tries to met the expectation by being constantly renewing, innovative and being trendy in design. In this way are the prices in line with the customer perceived value.
The value will be a trendy, qualitative and innovative product and Nike invests so much in these perceived values, that the company’s products met the perceived customers values. Place(Convenience) The world headquarters of Nike is located near Beverton, Oregon, a suburb of Portland. That’s the birthplace of Nike. Nike operates in more than 160 countries around the globe. Through suppliers, shippers, retailers and online the products have been brought to the customers.
Nike sells its products in international markets through independent distributors, licensees, and subsidiaries. The convenience for the customers is that Nike products are available in almost all regular sports and shoe shops (f. e. Intersport, Perry sports in the Netherlands) and the physical Nike stores and Nike towns. Aside of these physical shops, products of Nike are also sold online on the Nike WebPages and other pages from other online retailers (f. e. sneakertom. com and shoedeals4u. com). Distribution function audit
The company has adequate market coverage as described above, by operating in more than 160 countries and working with suppliers, shippers, retailers and online, the products are brought to the customers. The distribution doesn’t have to be changed, but of course if there are more possibilities to distribute in more countries or more online this could always be improved and looked at. The company should never stay still. Promotion(Communication) One of the promotion tools is their sponsoring of different sports. Nike has signed top athletes in many different professional sports to endorsement deals in order to further promote their products.
Examples are tennis players: Roger Federer, Rafael Nadal, atletes Asafa Powell, Lio Xiang, basketball players Lebron James, football players: Ronaldinho and Christiano Ronaldo and golf player Tiger Woods and biker Lance Armstrong. Nike is also known by sponsor agreements with some of the world most famous football clubs: PSV, NEC, Juventus, Arsenal FC, Manchester United, Carlton Football Club and aside of this they sponsor football teams from many different countries. Nike also sponsors cycle racers from Discovery Cannel, the Indian Cricket team (with a the contract for US$43 Million) and the English rugby team.
Nike also sponsors various minor events including Hoop It Up (high school basketball) and The Golden West Invitational (high school track and field). Nike uses web sites as a promotional tool to cover these events. Nike also has several websites for individual sports, including nikebasketball. com, nikefootball. com, and nikerunning. com. In this way Nike communicates to it’s target group their passion for different sports and in this way this sponsoring works as a promotion tool to create brand awareness and a positive image.