This document provides information about Nike's marketing plan, including the company's profile, history, current status, mission, vision, target market, competitors, strategies, and integrated marketing communications approaches. Specifically, it outlines that Nike is an American company founded in 1964 that is now the world's largest athletic shoe and apparel supplier. It discusses Nike's target market of athletes, positioning as a leader in sports goods, and strategies around pricing, market expansion, outsourcing, and utilizing celebrity endorsements and sponsorships. The document also describes Nike's use of various marketing communications channels as part of an integrated approach.

1. University of Jordan
School of Business
Marketing Plan of Nike
Submitted to:
Dr. Ali Al-Alwan
Submitted by:
Tuqa Afaneh
Anas Abdallah
Suzan Sarhan
Ahmad Horani
Rasheed Sharfat
Mo’men Hijazi

3. Company’s Profile:
- Nike, an American multinational corporation, the
world’s largest supplier and manufacturing of athletic
shoes, apparel and other sports equipments , based on
US.
- The name Nike inspired by ancient Greek goddess of
victory and it helps to build a strong association and
image.
- Nike operates across 160 country , it Markets its
products under its own brand as well as Nike Golf, Nike
Pro, Nike+, Air JORDAN and Nike

4. The Journey
- Establishment: in 1964 in Oregon
- Its original name was Blue Ribbon Sports (BRS)
- Founder: Phil Knight and Bower Man
- Nike initially operated as a distributor for Japanese
shoemaker Onitsuka Tiger
--Headquarters: Washington Country, Oregon(US).
- History of logo as below :

5. Current Status and Future Orientation
According to NYSE reported for fiscal year 2018:
Revenues for NIKE, Inc. rose 6 percent to $36.4 billion, up 4 percent on a currency-
neutral basis
Gross margin decreased 80 basis points to 43.8 percent driven by 90 basis points of
unfavorable changes in foreign currency exchange rates.
Selling and administrative expense increased 9 percent to $11.5 billion. Demand
creation expense was $3.6 billion, up 7 percent, primarily due to sports marketing
investments. Operating overhead expense rose 10 percent to $7.9 billion, largely due
to investments to activate the Consumer Direct Offense including product innovation
and digital and speed capabilities.

6. Current Status and Future Orientation
CONT’ :
The effective tax rate was 55.3 percent, compared to 13.2 percent in fiscal 2017 due
to significant charges related to the enactment of the Tax Act.
Net income decreased 54 percent to $1.9 billion primarily related to the impact of the
Tax Act, which offset strong revenue growth. Diluted earnings per share decreased 53
percent to $1.17, which includes a decline in the weighted average diluted common
shares outstanding.
NIKE's wholesale market would continue constantly and be the key driver for deal
development. In future, it is estimated that Nike will increase its prices due to which it
can positively impact and increase the profitability from its products

7. Mission and Vision Statement
‘To bring inspiration and innovation to every athlete in
the world’
If you have a body, you are an athlete.
‘The Nike goal is to carry on his legacy of innovative
thinking, whether to develop products that help
athletes of every level of ability to reach their potential,
or to create business opportunities that set Nike apart
from the competition and provide value for our
shareholders.’

8. Market Overview and Competition
Because Nike creates goods for a wide range of sports, they
have competition from every sports fashion brand. After
surpassing Adidas in the 1970s, Nike had no direct
competitors because there was no single brand which could
compete directly with Nike’s range of sports and non-sports
oriented gear until Reebok came along in the 1980s. Reebok
now has merchandising contracts with the National Football
League and the National Hockey League in the United States,
and was purchased in 2006 by Adidas. Nike’s other competitor
is Puma, the third largest shoe and sports clothing supplier.

9. Market Trend and Evolution
- Nike’s initial product advertising strategy of using
professional athletes for increasing demand was through word
of mouth and also provides the good publicity.
- Nike changes its target market from teenagers to younger
consumers due to intense competition with Adidas and
Reebok and also to expand its target market.
- During the time of recession consumers was willing to pay on
that brand because Nike having superior quality, style and
reliability.

10. Consumer Behavior
If any company creates the good relationship with its
consumers, so they must find out the needs and wants
of the consumers. For Nike; consumers choices to shop
is to buy online , by distribution stores , by chain stores
or from Nike factory stores
“Nike, whose shoe can command $150 a pair;
maintains customers loyalty because the perception is
it’s quality brands ” Robert Passikoffq

11. SWOT Analysis
-Economic recession and fluctuations in the currency can
lead Nike to losses
-Higher competition as competitors are becoming more
aggressive and creating high quality products
- Fake imitations and replicas often cause a problem for a
brand like Nike
-Its sales highly depend on the footwear segment
- It has violations in history and they provide minimal
wage rate to its workers
- Has poor conditions in work places
- Has higher price compared to its competitors as Adidas
- It can develop products such as sport’s wear, sunglasses
and jewelry
- Its brand can also developed internationally
- It can support different market events globally as (the
Olympics, FIFA)
- It can increase demand and introduce fashion brand
image in market
- Enhance brand visibility by opening sports academies
across the world for nurturing talent
- Nike is the world’s leading brand for sports shoes
- Nike has the joint venture with Apple’s IPod in
continued innovation
- It has strong distribution channels
- Has innovative shoe design which enable consumer to
design their own shoe online
- It has diversified products worldwide
- Has strong marketing campaigns and endorses different
products
- Exclusive shops all over the world apart from availability
through multi-brand retail stores
- It is ranked among the top companies for climate-
friendly companies
- It has been constantly been involved sponsorship of
sports events and teams across various sports

12. Pest analysis
-There are worker
rights and employee
laws which affect the
Nike’s internal
procedures
-It has positive
government policies
which support it in
increasing their
growth prospects
especially in US.
- Nike can take help
from government as
well as from foreign
countries which have
favorable relationship
with Nike in making
the products.
-Nike get sponsorship from
different other companies
-Due to economic downturn
consumers can be affected
and it can reduce consumer
confidence towards products
of Nike
-There can be risk of
currency, interest rate and
exchange rates for Nike’s
product
-Increasing material prices
and labor cost in production
countries or outsourcing for
increasing the living
standards can also affect
Nike’s product sales
-Consumers are
becoming more loyal
towards the brand
and becoming brand
conscious that can be
advantageous for Nike
-Changes in life style-
health awareness,
sport participation
which is increasing
the demand of sport
products
-Consumers
preferences and
demand are being
diversified hence Nike
can broaden its
product range
-New technology
affects Nike because
it incorporates it in
its products.
-Through technology
it makes highly
innovative products
as shoe
construction/ design
-It can create mobile
app and different
facilities and website
from which
customers can do
online shopping
through new digital
trends.

13. NIKE Objectives
- To increase 3-4% profitability in each of its product
lines (i.e. increasing sales growth by 10% annually)
- To Increase marketing communication tactics
- To produce quality and low cost products
- To meet the demands and requirements of target
market
- To make sustainable development of product
worldwide
- To apply continuous marketing strategies to broaden
its product range (increasing aerobic products)

14. Targeting
Market Segmentation:
It has following segmentation to create consumers
groups to target:
- Demographics segmentation
- Psychographics and behavioral segmentation
- Geographic segmentation
Market Targeting:
As for market segmentation, Nike has niche market to
serve that is Nike focuses and targets athlete or
sportsperson segment and provides required products
to them.
Segmentation Positioning

15. CONT’ STP
Its target strategies include aggressive marketing to
make aware its target consumers about its product and
even Nike make its target consumers enable to get their
desired products through customization process as own
signature shoe is offered to athlete that is it enabled
Michael Jordan to have his name Jordan shoes.
Apart from this, its targeting strategies include
sponsorship of its products through sports team or
celebrities.

16. CONT’ STP
It has objective of styling its product through
psychological tactics on target market by linking
triumph with apparel that is products are viewed as
victory when sponsorship is done by athlete celebrities.
Another targeting strategy is Nike cross training
established in 1989 which caters all the athlete
participants all over the world and trains different sport
activities which has also become way to make its target
market satisfied.

17. CONT’ STP
Its positioning statement is:
‘For every serious athlete Nike provides perfect shoe or sports
products that gives confidence for every sport activity’
Market Positioning
Nike has positioned itself in the mind of its target
customers as a leader in sports goods.
Its slogan ‘Just do it’ has made an appeal to target
customers to buy the product with sense of inspiration
and confidence and which has made it major
competitor in athlete industry.

18. CONT’ STP
It has following positioning strategies:
• Enhancing athletic lifestyle or fantasy in consumers
mind
• Appealing style and attitude
• Positions itself as premium brand with well-designed
products
• Appealing quality level and valuable products

19. Strategy Summary
Pricing strategy: Nike has value based/price leadership
strategy that offers the customer with the price that customer
value so it has high prices for its products as it has niche
market to serve with valuable products.
Market expansion strategy: Nike has strategy to expand its
distribution channels all over the world through constant
improvement in products lines.
Outsourcing strategies: Nike has relied on outsourcing of its
product manufacturing; it has contracts with different
countries like China, Japan, Indonesia, Brazil, Vietnam etc.

20. Competitive Advantage
Technology: Nike has incorporated technology in their
product as it has collaboration with technology based
companies as Apple, through which it has made most
competitive products that enables the consumers to connect
their iPod devices to sensors inside the Nike shoes that help
them to record time, distance and pace.
Manufacturing cost: Nike has SCM capabilities as it has got
competitive advantage in terms of having global outsourcing
strategy that enables it to get low cost in their production and
it has about 715 contracts with the countries of the world
which help it in supply chain process.

21. CONT’ Competitive Advantage
Economies of scale: It has got the Economies of scale through their
efficiency in production i.e. they have continuous improvement in their
production by incurring low cost with increased level of production and
revenue.
Patents: Nike’s strength is also having valuable and non-replicable
products, which are it has strong patents and copyrights on its products
so that they would not copied easily and remain unique in the market.
Research and development strength: Nike is considered as fully
innovative company, it has new product development strategy which
suggest that it updates or redesigns its products every six month with
new modifications and also it incorporates the comfort, value and
performance in its product so that its target market remain satisfied
long term.

22. Marketing Mix
The type of products to be marketed will
affect the price of a product.
· Nike’s pricing strategy is based on the
basis of target customers as a premium
segment.
· Pricing strategy makes use of vertical
integration in which they participants
(Marketing mix of Nike).
· Most people will pay more dollar for
quality products.
· Nike uses Cost Based/Value Based
Pricing.
· Comparing the quality at a reasonable
price from competitor service and prices
are fairly charged (Nike Marketing Plan).
Nike shoes are conceded by other multi brand
stores and exclusive Nike stores worldwide.
· Nike long term plans to open more stores and
franchise to reach target customers.
· Nike town product offers a complete experience,
this store has all the products, but will not stay
there again create a memorable experience for the
customer to bring back again (Nike 4PS).
· Outsourcing strategy with China, from developing
countries in Asia, such as Vietnam
· Nike has independent distributors, licenses and
subsidiaries which sell its products. To reduce the
cost of Nike’s products.
· Do more business online because Nike tradition is
as spending on online advertising
· Nike has some specific distribution methods:
- Nike town shop: In big cities of countries
- Flagship stores: which serve with high volume of
Nike’s products to consumers.
- Nikeid: It is a Nike’s online store that is website.
- Big retail discount stores: big stores of country
also serve with some high demand Nike products
for the target customers.
Nike offers a wide range of products
including shoes, apparel and equipment.
Currently these are top selling product
categories, all these products clothing
and equipment specialized for sports
product.
The first product of Nike is running
shoes. Apart from this, it offers currently
in athletics, baseball, ice hockey, tennis,
soccer, lacrosse, basketball products and
has wide range of sports products such
as cricket shoes, shirts, and shorts.
(Nike marketing communications-mix): Nike
attracts new customers and creates balance
between keeping existing customers.
· This is one of the strengths of Nike. Nike
has introduced its offers to almost any
environment
· Print advertisement in general, simple but
send a strong message.
· Nike are almost always uses a popular
athlete to promote its product.
· Nike uses Commercials, celebrities or
billboards as ways to make its Target
customer aware about its offers. But Nike
needs other ways for promotion as to
encourage more new products
· Marketing implication is that Nike is a
marketing strategy for online ecosystem

23. Integrated Marketing communication
Integrated marketing communications (IMC) is the strategy
that takes your marketing department from disparate
functions to one interconnected approach. IMC takes your
various marketing collateral and channels — from digital, to
social media, to PR, to direct mail — and merges them with
one dependable message , thus its vital and crucial that all
the communication channels convey the same values , ideas ,
about the company mission .

24. CONT’ IMC
Advertising :
Nikes goal is to create an advertisement with the greatest impact on its target
audience , though its very costly , but if applied well , the strong brand image of nikes
product will reap or yield the rewards .
Nike use celebrities to advertise their products to their target clients , for example
Cristiano Ronaldo , the most famous athlete on the planet , have a lifetime contract
with Nike to represent and advertise their products , so imagine the influence he will
make on sports fan when he advertise a new boot , or a line of sports wear .
Here are the numbers behind Ronaldo’s value to Nike. He posted 1,515 times overall
on social media during the first 11 months of the year 2016 with 21.7% of those posts
promoting Nike via a hashtag, mention or logo. Those posts generated 443.5 million
total interactions (likes, comments, shares, retweets and views on videos). (forbes)

25. CONT’ IMC
Personal selling :
Nike has in store sale persons , the sales staff provide customers with the information
about the products , at the same time they are communicating with clients , building
some kind of a nice relationship , which in turn has the effect on family members ,
friends , and colleagues via word of mouth .
Thus Nike trained sales staff have improved customer experience , by promoting the
company’s product .
Sales promotion :
Nike sales promotion include , coupons , vouchers, discounts and other special offers ,
Nike uses this strategy for the acquisition of new customers , who may be motivated to
purchase based on the perceived value or benefit .

26. CONT’ IMC
Direct marketing :
Nike is also cutting the intermediaries between itself and its target audience , for this
IMC strategy , Nike can directly promote or advertise its products with no advertising
middleman , via text messages , email , targeted ads , magazines , websites etc , easy
to measure also by means of response rate .
Nike use this strategy to introduce a new product to the target market , they advertise
them heavily , to make a large impact , also by using sales representatives to approach
certain individuals or organizations in the market segment .
Public relations :
in general , (PR) is a communication strategy that companies , individuals and
organizations use to build mutually beneficial relationship with the public , nike rarely
used PR as a an IMC strategy , but the company rely on workshops that helps to solve
social problems as a way of communicating with the public , it may sponsor charity
events as way to build a good relationship with community or society at large , thus
they have a better perception and brand image of nike .

27. CONT’ IMC
social media :
as one of the biggest brands in the world , it may not be a surprise that( 86.7 M) are
following Nike on Instagram , and (32.7 M) on Facebook . in this time of technological
revolution and automotive way of life , this is definitely the most important tool that
firms in general including Nike , are trying to conquer .
also the budget of social media content is high , but the expectations of getting this
IMC strategy is very rewarding .
Nike are cleverly using this strategy , for example , they launched a campaign on social
media for a competition in order to promote the brand products , participants or
customers , are requested to film themselves in social sites demonstrating their sports
skills , then upload them , and the winner will receive a 500$ in cash , or a scholarship ,
thus Nike , has used social media for its own benefit , while reaching out for society
and enhancing its brand image by not forgetting about its social responsibility .

28. Financial Cost and Budgeting
Nike’s Income Statement:
31 May 201631 May 201731 May 2018Period ending
32,5 Billion34,5 Biliion36,4 BiliionTotal revenue
21,2Billion31,3 Billion20,5 BiliionCost of revenue
2,47 Biliion2,69 Billion3,2 BillionNet Income
As shown Above :
-Total Revenue of Nike for year 2018 has increased to 36,4B$
- Net Income for year 2018 has increased to 3,2B$
-Sales Revenue has increased by 5,5%

29. Implementation of Marketing Plan
- Nike’s implements its Marketing Plan to achieve long term
objectives and short term objectives
- Long term objectives include enhancement of market share
among the rising economic
-Short term objectives include the increases of market share
in the current fiscal year
-Nike can ensure its correct marketing plan through
controlling procedures of top management and with proper
guidance to all departments of organization.

30. Contingency Plan
Nike is a famous company so, its goal is to meet all its
customers needs.
In order to satisfy its customers and meet their needs , Nike
should has a contingency plan ; if its marketing plan doesn't
work very well and doesn’t achieve the target.
-Nike has lose a lot of resources and revenues because of not
having a contingency plan,
If all the set standards and controlling procedures wouldn’t
meet marketing plan execution, then alternative plan would
be there to set as marketing plan, the alternative plan include
the: Backhouse resources in terms of extra budget plan,
remedy for new designs and communication ways, redefine
or redesign marketing plan and strategies.

31. Conclusions and Recommendations
It is noticed from market and company’s analysis that Nike
has the potential to execute its objectives, can offer new
products and expand its share so by looking to Nike’s overall
strategies and objectives the following points are
recommended:
- Nike should increase its marketing communication ways i.e.
using more social media
- Nike can have collaboration with a big company like Apple
for incorporating technology

32. Conclusions and Recommendations
- Nike should have proper management in controlling the
labor issues.
- Nike can include online video training sessions for athletes
celebrities and as to increase its product awareness to them.
- Nike can have merger and acquisition with other companies
to expand its business and to implement its Global growth
strategy.