Assignment #3 Final Marketing Plan MKTG 315

Assignment #3: Final Marketing Plan

MKTG 315

Falll 2014

The Marketplace &amp Consumers

School of Business Administration

Stetson University

DeLand, FL

Executive Summary

Nike Inc. is an internationally recognized brand. The targeted marketis professional athletes, sports enthusiasts, fashion aficionados andfans of particular sports. The products are designed using innovativetechnology intended to enhance the athletes’ comfort. For instance,the jerseys are made using a unique material that feature sweat guardtechnology. As a result, it quickly absorbs and eliminates moisture,thereby, preventing the jersey from being attached to the wearers’wet skin. On the same note, Nike sports gear has achieved anotherprimary milestone of producing trendy outfits and shoes for the fans.The clothes are available for a broad market ranging from children,teenagers, adults and even senior citizens. Besides, skin therapistsoften advise patients suffering from severe skin sensitivityassociated with regular materials to consider Nike fabrics becausethe outfits are made from special fabric that suppresses skinallergy. The development technology is better than its competitorsbecause it has a vibrant research and development team dedicated toensuring that all the products meets and surpass the minimum marketstandards (Hall &amp Leonard, 2014). Furthermore, the organizationalso designs special shoes that support proper weight distributionfor people with flat feet or leg injuries that may otherwise preventthem from playing games efficiently. In order to access the vastmarket effectively, the organization is planning to establish newbranches in strategic countries that will manufacture the productsfor the given countries. One of the crucial benefits associated withthe operation strategy is that third parties may own thesubsidiaries, which in turn reduces potential losses from the centralorganizations. Additionally, the local branches have research anddevelopment teams that are essential to customize the products to theneeds of the local users. The short term objectives of theorganization are to establish subsidiaries of the organization acrossthe world so that it can manufacture a wide variety of products ingiven localities. Conversely, the company aims to set up localresearchers so that they can develop gear designed to suit theparticular climate, skins, target clients and diehard fashionfollowers. In fact, the company aims to position itself as a leadinginventor through innovative technology. Besides, it is enhancing itsfocus on the markets that promise the highest potential in terms ofreturns (Mishra, 2011).

Marketing StrategyProductStrategy

Features

Benefits

Lightweight

Shoes come with thick innersole that helps to decrease the weight of the shoes with no compromise to the comfort of the wearers (Mishra, 2011).

Flexibility

Clients can request for customized shoe from the company to meet their specific medical needs

Cushioning

Nike Air shoes absorb the impact of athletes when they are in action, thereby, keeps their muscles, tendons and joints safe from harm (Mishra, 2011).

Affordability

Uses economics of large scale to manufacture high quality products at a lower cost than its competitors (Mishra, 2011).

Innovation

The researchers keep coming up with new designs that stir up the fantasy and desires of the target customers (Mishra, 2011).

Scope

Manufacturers diverse products that enlarges its target market

Brand Personality – reflects the athletes, women segment, as wellas the health fitness clients

PriceStrategy

Pricing Objectives:

  1. Enhance expansion plans outside the home country to enhance the economics of large scale that are essential to lower the production cost per unit

  2. Focus on online retails that makes it possible to sell shoes at a lower cost because it eliminates the operation costs of brick and mortar stores

Introductory Price Strategy

Introductory price will is high since the organization receivesnumerous bookings, but the clients who cannot afford it should waitfor the store clearance sales that comes with discounted prices(Mishra, 2011).

Suggested List Price:

Nike Air shoes: USD 90 -350

Nike Jerseys: USD 20 – 100

Outdoor gear: USD 50 – 100

Pricing Adjustments

The introductory prices will be adjusted after every fourteen daysdownwards. However, the price revision will be determined by theexisting demand. If the number of customers will still be high, theprice revision will take longer since the intention of the high priceis to control the number of products the clients demand at a go (Hall&amp Leonard, 2014).

Price Quality Perceptual Map

Nike ensures that its products meet and surpass the quality of theproducts in its given category through continuous product innovationthat is accomplished via Nike Sport Research Lab (Mishra, 2011).

DistributionStrategy

Availability: available throughout the world

Channel Structure: access clients through both physical and onlineretail stores

Margin Structure: 10.60 % (2015).

Channel Relationships:

  • competent staff

  • integrated research lab

  • Efficient marketing tactics

  • Reputation in the industry

  • Online retailers

PromotionStrategy

Objectives

  1. Enhance the sales volume

  2. Position the brand as innovative and the leader in the industry

Advertising Plan

  • Recommended Media – billboards, print publications, television and online advertisements

  • Advertising Execution – Celebrity endorsement

  • Frequency/Estimated Cost – between 20 and 400 USD per unit

Sponsorship Plan

Category

Name/Organization

Benefit to Brand

The NIKE N7 Fund

Native American and aboriginal communities

Enhances the popularity of the product

Promotion Plan

  • Consumer Promotions

  • Celebrity endorsement

  • Trade Promotions

Sales Plan

  • Personal Selling

  • Trade Show

References

Mishra, D. (2011). Nike, Competitive Advantages. Retrieved on April24, 2015 fromhttp://www.slideshare.net/divya-mishra/nike-competitive-advantages

Hall, K. &amp Leonard, K. (2014). Nike, inc. reports fiscal 2014first quarter results. PGA Magazine, retrived on April 24,2015 fromhttp://pgamagazine.com/wp-content/media/2013/09/Nike-Q1-2014-Financials.pdf

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