Please look at week 2 assignment to assist with week 4. Here is the feed back from week 2 A mission statement is a brief description of the overarching meaning of the company or nonprofit. A missi

MKT/574 v2 Strategic Marketing Plan Template Wk 2 - Part A: Environmental Analysis and SWOT Analysis Business Description Nike is the company of focus with the company’s mission statement indicating “To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete.” Its vision statement is “To remain the leading innovator in athletic footwear, apparel, equipment, and accessories globally, empowering athletes to achieve their full potential while fostering a culture of sustainability and social responsibility.” Nike designs and manufactures sports footwear, apparels equipment, accessories. Its product line up includes athletic footwear, clothes, equipment, and accessories. Nike is a multinational company with about 560 Nike brand factory stores and 49 Nike brand in-line store. The company has employed over 80,000 workers.

Environmental Analysis Competitive Forces Nike’s main competitors are Addidas and Puma. Addidas has a revenue of about $21 billion while Puma has a revenue of about 9.32$ billion. Addidas is that largest sportwear manufacturer in Europe and operates in 55 countries. On the other hand, Puma operates in about 120 countries. In comparison, Nike had a revenue of $51.22 billion in 2023 with a market share of 38.23% (Tran, 2023). The competitive advantage for Nike lies in its brand recognition, a broader product range, innovation, and elite endorsements. The Nike brand is recognized globally and this is boosted by the endorsement from famous and successful athletes in multiple Copyright 2023 by University of Phoenix. All rights reserved. Strategic Marketing Plan Template MKT/574 v2 Page 2 of 8 sports. A recent strategic move by Addidas is a focus on direct-to-consumer sales through online platforms. Online sales are the next avenue for Nike to also focus on and improve its reach and margins.

Economic Forces A concern for Nike is that its global manufacturing and supply chain have a significant environmental impact. The manufacturing of products including athletic footwear and apparel usually requires raw materials, water, and energy will leads to the generation of waste and carbon emissions. Nike has recently been concerned with reducing its environmental impact and is focusing on improving the sustainability of the supply chain. As a result, the company has set targets for reducing greenhouse emission. The situation is more serious as consumers are become more aware of climate change and want the products; they consume to reflect environmental consciousness. Nike’s focus on sustainable products will align with consumer expectations and attract new eco-friendly customers. Political Forces As a multinational corporation, political stability is a major concern for Nike. The company must ensure that it operates in countries with there is relative calm without drastic changes in policy and a stability in markets. Nike reduces risk by spreading out its operations in multiple countries and having a global presence. Labor laws and trade regulations can also affect Nike’s financial performance as tensions between countries such as the US and China can affect how goods flow and make exports or imports more expensive. As an innovator, Nike is keen on intellectual property protection. Nike is especially facing challenges in counterfeit sports wear with its branding coming from China (Yi et al., 2020). Nike requires cooperation from the Copyright 2023 by University of Phoenix. All rights reserved. Strategic Marketing Plan Template MKT/574 v2 Page 3 of 8 Chinese government to crack down on counterfeiting and enforce intellectual property performance.

Legal, Regulatory, and Ethical Issues Nike manufactures in different countries where labor laws differ from those in the US.

Compliance with labor laws is essential to maintain the reputation of Nike. The company has in the past faced criticism for the labor practices of some of its suppliers. However, Nike is now keen on engaging with suppliers who comply with labor laws. It is also essential for Nike to ensure that property rights are respected especially from countries like China that contribute substantially to the counterfeit market of Nike products. Environmental regulations will also affect Nike’s operations with countries now focused on reducing carbon emissions. Jurisdictions like the EU will expect Nike to progressively reduce its emission.

Technological Forces 3D printing is a cutting-edge manufacturing development will the potential to improve Nike’s operations. Nike if one of the companies interested in 3D printing with the aim of developing an entirely new market of 3D printed footwear (Schwaar, 2023). On the other hand, there is also a significant growth in the online sales and e-commerce sector. Nike is also looking to exploit this space by developing an online presence integrated with an app and website that can enable customers to browse product offerings.

Social Forces A trend that may impact Nike’s operations is the focus on health and fitness. The popularity of sport is also increasing and physical exercise. Nike can benefit substantially by aligning its product offerings with these needs. A demographic change is also occurring as Western nations are becoming older while the global South is very young. Nike must consider Copyright 2023 by University of Phoenix. All rights reserved. Strategic Marketing Plan Template MKT/574 v2 Page 4 of 8 the emerging markets as the next avenue for aggressive expansion to capitalize on the young generation in these regions.

Current Target Markets Nike’s current target market is athletes who participate in professional sports. In addition, the company is also interested in serving fitness enthusiast who engage in physical activities such as running, training, and workouts. Nike serves these two groups by providing equipment that improves their performance. Another target market for Nike is the youth who view the brand as part of an exclusive lifestyle. They also want to sell to individuals who identify with the brand for its innovation and uniqueness.

Current Marketing Tactics Endorsement and sponsorship are key marketing strategies for Nike. The company always collaborates with elite athletes and sport teams worldwide to improve brand image through association. The company also advertises through regular promotional channels including TV commercials, digital marketing, social media, and outdoor advertisements (Ahmed et al., 2016). Nike engages fashion designers and artists to attract new audiences and to ensure that it remains relevant in the public imagination. The company also participates in community engagement through programs for sports participation, youth development, and sustainability that also improve its reach.

SWOT Analysis Strengths A key strength of Nike is its brand. Nike’s brand has global recognition. Nike has the most valuable apparel brand with a valuation of $31.3 billion (BrandFinance, 2023). Another Copyright 2023 by University of Phoenix. All rights reserved. Strategic Marketing Plan Template MKT/574 v2 Page 5 of 8 strength is that the company has a large and global customer base who are up-do-date on the company’s offerings. Nike also has strategic partnerships with global icons such as Michael Jordan who emphasize the brand’s value. Nike’s marketing is elite and this has propelled the company through endorsements, promotions, and deals that have made Nike a household name.

The company also has low production costs since it offloads production in other countries such as China and Brazil. This has reduced expenses which would have been much higher in North America.

Weaknesses A weakness for Nike is that the company’s reputation is negatively affected by allegations that some of its manufacturing plants in foreign countries are unsafe. This can also be considered as exploitative by providing low wages and poor working conditions. Another weakness is that Nike is highly dependent on the North American market. The dependence is concerning as the North American market is oversaturated and there are better emerging markets overseas. There is minimal diversification effort within Nike; this is a weakness as an impact on the sporting and athletics industry such as COVID could affect multiple aspects such as sales, brand visibility, and marketing.

Opportunities An important opportunity for Nike is the emerging markets. The global South is an avenue for expansion that can help the company reduce its dependence on North America. Nike can also invest in the rise of wearable technology with considerable opportunities for growth considering the company already has brand recognition. Another opportunity is for Nike to stop selling to large retailers and instead develop a customer-centric operation that provides to loyal customers. This aligns with ceasing wholesale distribution within the US that will enable direct Copyright 2023 by University of Phoenix. All rights reserved. Strategic Marketing Plan Template MKT/574 v2 Page 6 of 8 contact with customers through Nike stores. The official website and app will support this and an overall e-commerce strategy.

Threats A major threat for Nike is counterfeit products. The global counterfeit market is growing with these representing sales that are not going to Nike but to criminals. These products are usually substandard and end up negatively affecting the Nike brand. Another threat is that there is fierce competition with other companies in the industry such as Adidas and Puma. The companies aggressively want to take Nike’s position and have the potential to overtake the company should Nike make any mistakes. Global uncertainty is another threat as COVID demonstrated, financial crisis will negatively impact Nike sales.

Converting Weaknesses and Threats to Strengths & Converting Strengths to Opportunities Nike should implement stricter standards for is suppliers to ensure wages are fair and there are good working conditions. transparency will ensure that the supply chain operates under principles of ethical manufacturing. Dependence on North America can be reduced by investing in countries in the global south such as Brazil, South Africa, and India. In line with this, the company should also diversify its product offering by investing in new product lines and apparels that are not entirely sport dependent. Nike can address counterfeiting by implementing counterfeiting technology that can enable customers to easily discern which products are genuine and which are fake. Finally, Nike should invest in making its supply chain flexible to respond to global financial vulnerability.

Copyright 2023 by University of Phoenix. All rights reserved. Strategic Marketing Plan Template MKT/574 v2 Page 7 of 8 Marketing Objectives Nike will expand operations in three new emerging markets in the global South within the next 18 months, Brazil, South Africa, and India. The completion for this expansion is September 2025. Nike should aim for a minimum of 15% increase in market share within the first year of entry. The company should also introduce a new line of sustainable and technologically advanced apparels targeted at eco-conscious consumers and fitness enthusiasts by June 2024. Nike should aim for a 25% increase in revenue from the sustainable product line within the first six months of launch. Finally, Nike should anhance e-commerce capabilities and transition towards a customer-centric model by prioritizing direct sales through Nike's official website and app by December 2024. Online sales should increase by 40% by the end of 2025.

Copyright 2023 by University of Phoenix. All rights reserved. Strategic Marketing Plan Template MKT/574 v2 Page 8 of 8 References Ahmed, R. R., Brohi, H., Bhutto, A. H., Prithiani, J., Khubchandani, R., Kumar, S., & Abbas, Z.

(2016). „Strategic Marketing Plan of Nike “. ResearchGate, Indus Institute of Higher Education .

BrandFinance. (2023,). Nike retains crown as world’s most valuable apparel brand, brand value USD31.3 billion | Press Release | Brand Finance . https://brandfinance.com/press- releases/nike-retains-crown-as-worlds-most-valuable-apparel-brand-brand-value-usd31- 3-billion Schwaar, C. (2023). 3D Printing Meets The Billion-Dollar Footwear Industry . Forbes.

https://www.forbes.com/sites/carolynschwaar/2023/07/19/3d-printing-meets-the-billion- dollar-footwear-industry/?sh=13137161520f Tran, H. (2023). Nike: A Decade of Market Resilience . https://finance.yahoo.com/news/nike- decade-market-resilience-t Yi, Z., Yu, M., & Cheung, K. L. (2020). Impacts of counterfeiting on a global supply chain.

Manufacturing & Service Operations Management , 24 (1).