Nike's primary target market is active teens and young adults who enjoy high-quality sporting goods. Nike positions itself as the premier brand through sponsoring famous athletes and running prominent advertising campaigns. It dominates the $278 billion global sports apparel market with a 33% market share, distributing its premium-priced footwear and apparel worldwide through various retail channels.

1. 1
10 STEP
Marketing Plan for NIKE
Tanya Marie Labrador
October 2010

2. 5 Steps for Part 1
(PTM and Positioning)
1. Nike PTM is active people who enjoy high-
quality sporting goods, especially footwear.
2. Good association with no. 1 sports/ fashion
brand
3. Adidas, Fila, Reebok, Puma
4. Other brands don’t sell accessories such as
sunglasses, jewelries and apparel
5. The market size is $19.2 Billion.

3. 5 Steps for Part 2
(Marketing Mix & Strategy)
6. Sports apparel (Footwear)
7. Based on the basis of premium segment
as target customers
8. Uses famous athletes as brand
ambassadors, TV ads, targeted advertising
in print ads and sports events
(sponsorships)
9. Distributed worldwide (Nike stores
across the globe)
10. Market Leader – Nike is a global brand
(enormous brand awareness)

4. 4
Positioning to the
Primary Target Market
Part 1:
Steps 1 to 5

5. 1. Nike’s primary target
market (PTM) are teens
 Demographics (18-40 [largest are teens],
M/F, social class AB, single/ married)
 Lifestyle (active teens, athletic/ sporty
individuals, casual lifestyle with
fashionable taste)
 Behavior (sneakers as fashion statement,
fitness craze, multipurpose shoes, “hip”,)

6. I want to belong to
the coolest group
I’m fulfilled when I feel
important and recognized
I want the
status symbol of
being the best

7. 2. Nike PTM’s NWE
Teens need -
To belong (social), be recognized (self-Esteem), know
they are important & self fulfilled (Self
actualization)
Teens choose Nike over other brands because of ….
Quality, Durability, Style, good reputation, breakthrough
design and technology of products, packaging, sense
of being associated with the best, no. 1 brand;
Teens expect this when they use Nike products:
Cool, Confident, Stylish, having a positive attitude
when they exercise/ workout

8. 3a. Nike has several
competitors
 Direct: Adidas, Fila, Puma, Reebok, New
Balance, And One, Umbro
 Indirect: Non-athletic footwear brands,
Crocs, K-swiss, Converse, Sketchers,
Timberland
 Variables: Age, Price, lifestyle, specific use,
desirability of product, brand

9. Nike is #1 leader in the market:
high priced product for 18-27yrs
Price/
Age
Matrix
7-17yrs 18-27yrs 28-40 yrs 40yrs up
High
price
Low
Price
Adidas
Puma
New
Balance
Reebok
New
Balance
Nike
Kids
Fila
Price vs. Age Matrix
Nike
Puma
Fila

10. 4. Nike positions itself as the
no. 1 brand
Nike is the brand
 that top athletes use
 for teenagers and “hip” individuals
 that makes shoe better for everyone
 that offers a new style
NWE not being addressed: Other brands are still
cheaper ; Substitutes
USP: Professional athletes from around the world
use Nike even today

11. 5a. Based on competitor data,
sports apparel market is P13.3
billion
http://www.mcafee.cc/Classes/BEM106/Papers/2009/Adidas.pdf

12. 5a. Based on competitor data,
sports apparel market is P13.3
billion
http://www.wikinvest.com/stock/Adidas_AG_(ADDYY)

13. 5b. Based on Nike data, Nike
share is 33% from total market
size of $278.4 billion
1. Nike sales is $18.6 billion
2. Market share is 33%
3. Total sports apparel market size is
$278.4B as of 2007
(http://www.marketingcharts.com/direct/global-sports-equipment-
apparel-and-footwear-market-nearly-280b-5548/)

14. 5c. Consumer data indicates
a size of $ 278.4 billion
Nike’s demand:
6,877,800,000 worldwide population,
33% market share, $ 278.4 B market
size
91.8B (33% of market share)/ 22,000
stores = $4172.72 sales per store/ yr

15. 5. Concluded that sports
apparel market is 278.4 billion
1. Competitor data = $ 13.3 B
2. Company data = $ 18.6 B
3. Usage data = $ 278.4 B

16. 16
The Marketing Mix Strategy
Part 2:
Steps 6 to 10

17. 6a. Sports apparel industry is
dominated by 5 major brands

18. 6b. Product Description
 Nike’s is known for their footwear. It has designed a
whole line up of footwear for almost every sport.
 Different types of shoes: running, basketball, soccer,
cross training, football, tennis, golf
 2.5c – 6y for kids
 5.5 – 11 inches for women
 7 – 15 inches for men

19. 7. Price-
Nike is 30% premium priced
than 2nd leading competitor
 Nike Trainers = $80
 Nike Shox = $73
 Nike Air Max = $78
 Nike Air Jordan = $150
 Lunarglide = $85 - $100
Nike as a brand commands high
premiums and is often more expensive
than products of its competitors.

20. 8a. Promo: Print Ads

21. 8a. Promo: Athletes

22. 8a. Promo: Catchy
Phrases/ Taglines

23. 8b. Competitor promo

24. 8b. Competitor Promo:
Print Ads (Olympics)

25. 8b. Competitor Promo:
Athletes

26. 8b. Competitor Promo:
“Impossible is Nothing”

27. 8b. Competitor promo
Nike ads are powerful and positive that
stays in everyone’s memory.
Their ads exude greatness and are loaded
with look of triumph.

28. 9. Nike products are
distributed worldwide
 Malls
 Retail stores
 Partnered stores
 Factory outlets
 Worldwide
 Online stores
 Shipping
 Cash and Credit transaction

29. 10. Nike is a market leader
 Nike’s main strategy rests on a favorable brand
image. In order to maintain and sustain this image,
the company makes huge investments in advertising
and brand promotion.
 It benefits from subcontracting their products to low
cost manufacturers (cheap labor = high selling price)
 Consistent and timely shipment of goods
 Has an excellent, premium priced and excellent
product distribution worldwide.

30. 30
SUMMARY

31. 5 Steps for Part 1
(PTM and Positioning)
1. Nike PTM is active people who enjoy high-
quality sporting goods, especially footwear.
2. Good association with no. 1 sports/ fashion
brand
3. Adidas, Fila, Reebok, Puma
4. Other brands don’t sell accessories such as
sunglasses, jewelries and apparel
5. The market size is $19.2 Billion.

32. 5 Steps for Part 2
(Marketing Mix & Strategy)
6. Sports apparel (Footwear)
7. Based on the basis of premium segment
as target customers
8. Uses famous athletes as brand
ambassadors, TV ads, targeted advertising
in print ads and sports events
(sponsorships)
9. Distributed worldwide (Nike stores
across the globe)
10. Market Leader – Nike is a global brand
(enormous brand awareness)

33. 33
10 STEP
Marketing Plan for NIKE
Tanya Marie Labrador
October 2010