Nike is basically an American establishment for athletic merchandises. It has managed to garner immense brand recognition around the world. They design, manufacture, produce and have an effective distribution system. The company is involved in a number in selling number of sporting gears and athletic accessories (Osayawe Ehigie, 2006). Nike has adopted multi level marketing channels in order to sell. Logistic management of the company is well known. There are a number of factors that needs to be changed in the marketing strategy in order to ensure that Nike presence increases sales in the Nigerian markets and the company manages to expand its consumer base. There is potential for the company emerges as a strong brand in under serviced Nigeria and in African continent. The purpose of this thesis is to look into current Nike presence in Nigeria and recommendations will be proposed based on the analysis
2. 2
Table of Contents
INTRODUCTION 3
LITERATURE REVIEW 3
NIGERIAN MARKET POTENTIAL INDEX 3
CONSUMER BEHAVIOR IN NIGERIA 4
OVERALL NIKE MARKETING STRATEGY 5
KEY MARKET DEMOGRAPHY 5
NIKE CURRENT PRESENCE IN NIGERIA 5
NIKE PARTNERS WITH FOOTBALL FEDERATION 6
ANALYSIS OF NIKE PRESENCE IN NIGERIA 6
RESEARCH QUESTIONS 7
RESEARCH OBJECTIVES 7
METHODOLOGY 8
CONCLUSION: 8
REFERENCE: 9
3. 3
Introduction
Nike is basically an American establishment for athletic merchandises. It has managed to
garner immense brand recognition around the world. They design, manufacture, produce
and have an effective distribution system. The company is involved in a number in
selling number of sporting gears and athletic accessories (Osayawe Ehigie, 2006). Nike
has adopted multi level marketing channels in order to sell. Logistic management of the
company is well known. There are a number of factors that needs to be changed in the
marketing strategy in order to ensure that Nike presence increases sales in the Nigerian
markets and the company manages to expand its consumer base. There is potential for the
company emerges as a strong brand in under serviced Nigeria and in African continent.
The purpose of this thesis is to look into current Nike presence in Nigeria and
recommendations will be proposed based on the analysis.
Literature review
In this literature review there will be analysis made about the overall Nigerian markets
and current Nike presence in Nigeria
Nigerian market potential index
In the current times Nigeria has been mentioned to be one of the important 3G i.e. it
means Nigeria is one of the Global Growth Generating Countries of the world (US
Exports. Gov, 2015). There is enormous market potential in the country (Kim & Heere,
2012). It has been estimated that 10 billion retail sales occurs in the country. It is one of
4. 4
the largest African economies of the world. Politically Nigeria is increasing free trade
around the world (US Exports. Gov., 2015). There is still apprehension about the political
stability. It has been found that currently the country is politically stable. The country is
changing a number of rules in order to bring foreign investors into the country (Piskorski,
& Johnson 2012). There is infrastructure to support trade and commerce in the country
when compared to other African countries. E-commerce has also developed in this
nation. There has been increase in disposable income of the people. Some challenges of
this market is that there is a large agriculture crowd and employment rate is generally
high in this region.
Consumer behavior in Nigeria
There is a strong growth in multi marketing modals in this country. The consumers prefer
brands that are of quality and reasonably priced. They are looking for affordable luxury.
Direct marketing channel has not gained prominence in this region. This is because of the
lack of infrastructure (US Exports. Gov.,2015. It is estimated that infrastructural
development undertaken by the government will facilitate the increase of direct
marketing in Nigeria.
Online sales are gaining prominence in Nigeria (Lysonski, & Durvasula, 2013). The
trends suggest that there is preference towards cashless economy. Growing number of
people in developed cities such as Lagos, Calabas, Port Harcout is using more of online
tools to make purchases. Owing to the rapid growth of the mobile technology it has been
found that Nigeria has strong mobile technology. 37% percent increase in sales has been
observed in Mobile technology (US Exports. Gov., 2015). The companies planning to
expand operations can use this medium in order to facilitate online trade.
5. 5
Consumers of Nigeria generally hold American brands with high quality. There is general
appreciation for American brands in the country. Nike can utilize this aspect in order to
increase sales in the country.
Overall Nike Marketing strategy
Nike has tried to use a number of channels and mediums in order to facilitate sales of the
product. The media consumption pattern of the consumers in Nigeria is found to be
utilizing TV medium the most when compared to other media (Purkayastha, & Samad,
2014). There is strong social media presence in the country. It has used celebrity
endorsements, social media, Television ads and digital tool medium (Cummins et al.,
2014). The area of direct marketing channels has not been developed due to lack of
infrastructure.
Key Market demography
Like all other markets, Nike has developed a marketing strategy that is relevant to the
youth demography. The average consumers of this product are young, urban and fit. They
place a high importance to sports. The target age demography of the consumers is
between 15 to 30 years. It has been developed as a youth brand. This is seen in the
partnership with the Football federation.
Nike current presence in Nigeria
Nike has a very brand image in Nigeria. However spate retail stores for the brand is very
limited (Chiu et al., 2012). The number of retail stores is very less in the country owing to
the infrastructural issues. There is no proper transport in order for the consumers to buy
the product. People can buy this product online through a number of e-commerce portals.
6. 6
There is a social media presence of Nike. It is considered to be a high-value brand in this
region. Nike has a presence however it is found to be underservice markets.
Nike partners with football federation
Traditionally Nike uses celebrity endorsements in order to sell the product. In Nigeria
there is a strong affinity for football. There is generally a strong football fans for the
country (Nike, 2015). These football fans come under the target market demography.
Hence in order to make a presence in the country Nike felt the need to form alliance with
the football federation (Nike, 2015). There were a number of contenders like Puma,
Addidas in order to obtain this deal. However these companies did not so as much
interest as Nike to strike a deal. It is to increaser brand image of the product. For this
purpose in this country the company has focused on using the Football federation players
as key endorsement. This deal was made in April 2015 (Nike, 2015). This celebrity
endorsement is expected to boost sales of Nike.
Analysis of Nike presence in Nigeria
From analysis of various literatures it has been found that Nigeria is an emerging market
with a lot of potential. Lack of infrastructure and employment has impeded retail sales
(Keller, 2012). The government is trying to make amendments by ensuring political
stability and focusing on building the nation. There are still a lot of apprehensions about
political climate of Nigeria however the government has relaxed a lot of the rules for
retail sales. It is ideal for international companies to invest more in this country in order
to increase sales in the future.
7. 7
Nike presence in Nigeria is considered to be limited under the circumstances because
Nigeria has one of the biggest economies in Africa. There is a lot of potential for growth.
There is general perception of political instability in the nation. However opening of
border lead to new prospective growth. There are some issues like majority of the
population are agriculture oriented and the employment rates can be a question of
concern. Nevertheless a number of foreign investors have started to show interest in the
nation. This is because of the new interest by the current government to increase trade.
They freely allow trade operations to be conducted.
From observational analysis it is quite clear that there is a lack of literature and research
that has been conducted for Nigerian markets for retailers.
Research questions
Nigeria in spite of having a free economy has been largely underserviced. Some key
market segments are not being serviced. This research proposal will address how to
leverage growth for Nike brand and increase sales.
Research objectives
Understand current Nike presence in Nigeria
Product innovation to the largely overlooked senior generation of the population.
Adopt multi channel marketing strategy in order to boost sales
Sustainable practices and ways of connecting with local communities.
8. 8
Methodology
Secondary method of research will be conducted for this thesis. Primary research will not
be considered as it is time consuming and there is lack of resources available to conduct
this analysis. There will be analysis done about the qualitative research done to determine
consumer behavior. Theoretical models will be compared to understand about consumer
behavior in Nigeria. In order to determine about market segmentation, target market
demography there will be quantitative analysis done. This will enable the researcher to
ensure that the information is presented in comprehensively. All ethical considerations
for research will be followed in this dissertation.
Conclusion:
To conclude the country markets are under service by the companies. This is because of
the lack of infrastructure by the government. There is a strong potential for growth.
American brands are considered to be of good value and the consumers have a good
image of Nike. Consumer disposable income has also arisen in Nigerian markets. Nike
has considerable lesser presence in Nigeria when compared to other markets where they
have invested. Nike should build a strong presence. There is lack of literature and
methodical research that has been considered for this purpose hence Nike presence in
Nigeria needs to be investigated in order to develop better marketing strategies.
9. 9
Reference:
1. Chiu, C. Y., Kwan, L. Y. Y., Li, D., Peng, L., & Peng, S. (2012). Culture and
Consumer Behavior. Marketing, 7(2), 109-179.
2. Cummins, S., W. Peltier, J., A. Schibrowsky, J., & Nill, A. (2014). Consumer
behavior in the online context. Journal of Research in Interactive Marketing,8(3),
169-202.
3. Keller, K. L. (2012). 17 Brand strategy. Handbook of Marketing Strategy, 289.
4. Kim, C., & Heere, B. (2012). Consumers from emerging markets: Perceptions and
attitudes toward global sporting brands. Sport Marketing Quarterly, 21(1), 19.
5. Lysonski, S., & Durvasula, S. (2013). Nigeria in transition: acculturation to global
consumer culture. Journal of Consumer Marketing, 30(6), 493-508.
6. Nike (2015) NIKE PARTNERS WITH THE NIGERIA FOOTBALL
FEDERATION,Available at: http://news.nike.com/news/nike-partners-with-the-
nigeria-football-federation (Accessed: 29th November 2015 ).
7. Osayawe Ehigie, B. (2006). Correlates of customer loyalty to their bank: a case
study in Nigeria. International Journal of Bank Marketing, Vol 24 No 7, pp. 494-
508.
8. Piskorski, M., & Johnson, R. (2012). Social strategy at Nike. Harvard Business
School Case, 9-712.
9. Purkayastha, D., & Samad, S. A. (2014). Digital Marketing at Nike: From
Communication to Dialog. The IUP Journal of Soft Skills, 8(2), 49-65.
10. US Exports. Gov(2015) Nigeria Country Commercial Guide, Available
at:http://export.gov/ccg/nigeria091342.asp (Accessed: 30th November 2015 ).