The Marketing Strategy of Nike: Combining the Market and the Media

Research Article
Open access

The Marketing Strategy of Nike: Combining the Market and the Media

Hao Xiong 1*
  • 1 Hangzhou new channel school    
  • *corresponding author 2038500266@qq.com
Published on 5 January 2024 | https://doi.org/10.54254/2754-1169/68/20241387
AEMPS Vol.68
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-267-1
ISBN (Online): 978-1-83558-268-8

Abstract

This paper using the marketing strategy related theory, first use3c analysis and the external environment and the internal environment of the Nike China, then summarizes the Nike China's own advantages and weaknesses and facing opportunities and threats, and how to expand the advantage to seize the opportunity to reduce the threat, finally combined with the actual situation of Nike China business market segmentation and target market selection for market positioning and put forward its marketing strategy combination and safeguard measures. The paper of the conclusion for Nike marketing strategy is to choose good suitable for Nike products target market namely market. adjust the product strategy to strengthen basketball, running and leisure life products and provide product portfolio, optimize the channel strategy adjustment channel division and improve the terminal store present the way has been more to adapt to the needs of consumers, with the right price strategy and the characteristics of Nike promotion strategy, make more consumers understand, love and use Nike products, and achieve the company's marketing goals, cooperate with other brands, continue to maintain Nike market share in China. At the same time, in the process of the implementation of Nike's marketing strategy, the process management should be implemented, the organizational structure should be adjusted, and the brand building and risk control should be strengthened to ensure the smooth implementation of Nike's China marketing strategy. Through the study of Nike's marketing strategy in China, the paper summarizes how to formulate and adjust Nike's marketing strategy in the new form, which has a certain guiding role for the marketing performance and sustainable development of the brands in China.

Keywords:

Nike, marketing strategy, media

Xiong,H. (2024). The Marketing Strategy of Nike: Combining the Market and the Media. Advances in Economics, Management and Political Sciences,68,167-171.
Export citation

1. Introduction

With the increasing frequency of trade activities between countries, more and more multinational brand companies are established worldwide. With the rapid development of the Internet and the remarkable improvement of the national income level, the Chinese people have a higher pursuit in both material and spiritual life. But at the present stage, China's sports industry and sports undertakings and other related industries are rapidly expanding and developing, with a broad market prospect [1]. Due to the huge cultural and audience consumption behaviour differences between the international market and China's local market, multinational companies must conduct in-depth research on the current situation of China's consumer market in order to formulate corresponding localized communication strategies, so that enterprises can better carry out marketing communication activities.Founded in 1972, Nike officially entered China's sports goods consumption market in 1980. After nearly half a century of development, it has become a sports goods enterprise with a high sense of audience recognition in China. Nike's market competitiveness is self-evident, as the highest market share of the sports brand, Nike is the industry vane, whether basketball, football, running, golf, the ball, Nike has quite high-tech products, these products of nuclear technology other brands cannot copy, and the vast majority of top athletes in order to ensure the competitive level also preferred Nike send sample top brands, which makes Nike in the market has huge appeal and competitiveness [2]. With the time goes by, the brand could still be the leader company not only in China but also in the world. It because of its unique strategy. By searching and analyzing the market,it find that some companies combining the market and the media to broaden their way in selling. As the rapid development of the social media.it showed an increasing trend and a significant advantage in market.For example, the number of the TikTok has been risen to 15 million in 2023, which given a platform for the companies in business. Nike is always good at seizing the opportunity in the way of selling and improve the awareness. The paper focus on how Nike brand use the media to attract people.

The paper explores how Nike combines market and media through the method of searching the survey. The data of Nike in several media including the fund invested in some platform, the sales volume will prove the opinion.

The paper studies Nike's unique marketing strategy in how to combine the brand and media which set a good example for other companies.

2. The introduction of Nike

2.1. Consumer group

The consumer group of Nike shoes is very wide. including athletes. fitness enthusiasts, teenagers and fashion people. The age of 23-30 accounts for 30%, and the age of 30-40 accounts for 25%, indicating that the Nike consumer group is mainly young and middle-aged people. This suggests that Nike's marketing strategy should pay more attention to the needs of some consumers of age groups, and also cater to the needs of consumers at this stage in the procurement of goods [3]. Different series of products for different groups such as Air Jordan series is mainly for basketball fans. Air Max series is more suitable for daily wear. price positioning: The price of Nike shoes is relatively high, but there are also middle and low grade products. High-end products are mainly for athletes and high-end consumers, low-end products are more suitable for daily wear.

2.2. Competitors

Nike' s competitors around the world include Adidas. Puma. New Balance and other brands. These brands also have a wide consumer base and a strong brand image. With youth, fashion, nostalgia and other products won a large number of consumers, and fast fashion brands, light luxury brand cooperation with sports brand, to sports and fashion fuzzy definition and concept, to focus on sports professional Nike was affected. According to STOCKX, Adidas is gaining more resources in the sports shoe market, including Yeezy [4]. To sum up, Nike shoes market is huge. A wide range of consumers believe that the brand image is excellent, but also facing fierce market competition. Company: the Nike has always been a representative brand of sports innovation and incentive, and its advertising and marketing efforts are also very large. Brand image has a strong quality assurance, sports performance and fashion and other advantages.

3. The marketing strategy of Nike

3.1. The media to spread their new shoes

With the improvement of young people's consumption level, Nike has paid more attention to young people. In today's era, the popularization of we-media represented by the Internet provides a platform for the public to vent their emotions and express their opinions, and expands the space of public opinion. New Internet applications such as blog, video, instant messaging, social networking sites and microblogging constitute the crisscross communication channels and become new and important platforms for public opinion expression. In this situation, the Internet is gradually becoming the main platform for the interaction between people. Nike caught the power of the media under the new media, although shoe media is not a very large media industry, but in the network developed today, the media has a great potential reading and fan groups, Nike will give the media send their current new products, let its evaluation and praise, publicity, this is a very clever way to get more consumer groups [5]. By researching, it find that the consumption percentage of Nike achieve at 40. It means that young people are more willing to consume the goods. So the Nike also try to do something that could attracted the young. For example, they sign jointly. Combined with the current research, it can be seen that the brand joint cooperation can be defined based on whether there are accurate products into two categories. One believes that brand joint-name cooperation is to support two or even more independent brands to reach an agreement and carry out corresponding market sales behavior, in order to use the brand assets to expand consumers' cognition of the brand and improve consumers' attitude towards both brands. The other is that brand joint cooperation is the deep cooperation between two or more brands within the market scope to launch a new product or service in a new market [6]. Nike has cooperated with many other fashion brands even luxury brands. It has been cooperated with supreme lv, off-white. etc. Recently, Nike cooperates with Tiffany co., and make a shoe using the model of Air Force 1 and the color of Tiffany co. The two brands’ logo are both on the shoes. As for the price, it was 10 times higher than an pair of Air Force 1. By searching on the app, it finds that the simple Air Force 1 was only about 500 yuan, but the special one achieve at 5000 yuan. Even though, it also difficult to obtain because of its limited quantity. At present, Nike sells about 50 Air Jordan limited products every year, and the selling rate of this part of the limited products has always been maintained at 100%. Many Chinese consumers line up all night to draw lots to buy the limited products. This kind of heat is difficult for competitors to replicate, even if it is copied, it is impossible to do that Nike has a large number of shoes are heated by consumers every year [7]. That’s the unique selling strategy Nike has done. It seized young people’ psychology of comparison. Not only do like this.but also concentrate on spreading effect of the brand. It sends veidoes in the short video platform like TikTok, kauishou, deeply loved by young people. In conclusion, the media worked a significant effect on Nike’ market. And the selling way, limiting quantity could work well on young people. It should be learnt by other fashion brands.

3.2. The invest in plenty areas of sports

Nike worked as a sport brand,its target consumer should be the people who like sports So they focus on sports event, Nike invested plenty areas of sports. For example, in the football World Cup. Nike has sponsored a total of 13 teams, including the host Qatar, the 2018 champion France, and Croatia and England in the 2018 quarterfinals, which is the biggest sponsor. It has invested almost 1.5 billion in 2022 world cup. Compared with the effort, Nike has got more than 10 times reward. NBA, one of the biggest basketball sports event in the world watching by millions audiences everyday. Nike provides the competition supplies like shoes, jerseys. The audiences saw that their favorite player racing in the game and wearing the shoes, jerseys. They would also willing to follow their idol. After that, the business opportunity appeared, the would buy the shoes, jerseys that their idols wears. The strategy of sponsorship effect seemed would lose fund, but it will earn much more than paid in a long run [8-9].

3.3. The strategy of idol effect.

With the rapid development of the sports events, sports stars become more and more popular which are appreciated by millions fans. Nike use the strategy of idol effect. First of all, an enterprise should have star endorsement is certain, will bring improved knowledge Name degree, establish a brand image and a series of benefits. But for the sports brand generation There are many requirements: outstanding achievements in their own competitive events, Have a good personal image outside the field. For now, Nike's ads In, make full use of creativity to brand and the most exciting events and sports Star's outstanding performance connects it, conveying its brand spirit, Make the brand deeply rooted in the hearts of the people [10]. Endorsing and cooperate with them. For example, Nike signed the lifelong contract with the famous basketball player, Leborn James as the price of 1 billion. Nike help their signed players to design their own equipment, and the players wear their equipment in the competition since 2001, top NBA stars have been visiting China almost every summer. At first, these stars visited China for nothing more than sightseeing and experience the foreign customs. But in recent years, both the number and the quality of the number of stars in China have changed a lot, beyond the past. Every summer, NBA China Travel seems to have become a traditional show for them. And these stars are no longer just for fun, and not just for first-tier cities. On the contrary, on the contrary, it gradually turned to the provincial capitals of China, and carried out interactive programs between stars and fans. For example, some stars attend fan meetings, some personally host the basketball training camp to train fans, and some directly interact with fans to send shoes to fans [9]. Then their fans saw the games,the stars wearing the shoes, they would like to copy and follow their stars. They would spend their money on the equipment that same as the player wear.

4. Discussion

With a long history development, Nike has established for more than 50 years. It made a deep impression on people as a sports brand. But nowadays, it also try to be follow the luxury brands which has their own brand culture. It creates a brand image as sports and fashion brand. Their mission Statement: (1) Create excellent products so that athletes around the world can give full play to their best level. (2) Vision: Become the world's leading, influential and innovative sports brand. (3) Core values: passion, enterprising, trust, responsibility, fairness, courage and service spirit. (4) Brand slogan: Just Do It (just do it). In addition to the above points, Nike also attaches great importance to the personal development and innovative thinking of employees, pays attention to environmental protection and social responsibility, and is committed to promoting sustainable development. Brand culture is the key of the company which promote the brand have a sustainable development. It could encourage the staffs have a activate attitude and spread aspiring spirit.

In conclusion, the reason why Nike has a sustained and stable development is its unique strategies. To be brave to take risks, it has a long-term goal and good at seizing the business opportunity.

5. Conclusion

Why the NIKE sporting goods are so popular with the Chinese public? First, it uses the strong social sports organization, high ratings of the media advantages, the sports world Superstar drive to create "artificial influence", and make such resources as the main marketing means; on the other hand, into sporting goods advanced science and technology, which is the core factor to attract Chinese consumers. For such a strong competitor, our country sporting goods industry how to leave the current predicament and be reborn?

Carry out preferential development policies to build elite sports brands.The development of sports industry economy is inseparable from the support and policy of the government Guide, the government should actively do a good job in the development of sports industry support, guide Those who are normative. The government should focus on planning the pattern of Chinese sports market. From the root This is to find out the actual development level of China's sports goods industry, for the real Force of enterprises to give preferential development policies, to help enterprises develop, brand conduct propaganda. The government should focus on planning the pattern of Chinese sports market. From the root, this is to find out the actual development level of China's sports goods industry, for the real Force of enterprises to give preferential development policies, to help enterprises develop, brand conduct propaganda [8].

Make full use of trend current affairs and nostalgia marketing preferred parallel. The current international current affairs and social trends represent the general interest of people nowadays, at this time if can timely and accurately find this trend, for the enterprise Even in the whole development process will have a strong guiding role. in compliance with Nike didn't follow the running and fitness craze, and it was hard to grow A global brand as famous as Adidas. At the same time, the AJ Series is and the use of social trend this means relative, also achieved Great success. But whatever the marketing strategy is used, Nike has always been there Around the core value of its brand in the human engaged in sports, challenge since sportsmanship.

Find the right brand spokesperson, an enterprise has celebrity endorsement, which will improve knowledge degree, and establish a brand image and a series of benefits. But for the sports brand generation. There are many requirements: outstanding achievements in their own competitive events, have a good personal image outside the field. For now, Nike's ads In, make full use of creativity to brand and the most exciting events and sports star's outstanding performance connects it, conveying its brand spirit, make the brand deeply rooted in the hearts of the people.


References

[1]. Bai Yang. Case introduction and Marketing Strategy Analysis of sports brands -- Taking Nike Brand as an example [J]. The contemporary sports science and technology, 2020, 10 (10) : 199-200 + 202. DOI: 10.16655 / j.carol carroll nki. 2095-2813.2020.10.199.

[2]. Ning Li. NIKE and Adidas to Compete in China's Sports Goods Industry[J].China's Foreign Trade, 2001(01):34-36.

[3]. Hao Hu. Research on Nike Marketing Strategy in co-branding between sports and fashion brands [D]. Donghua university, 2022. DOI: 10.27012 /, dc nki. Gdhuu. 2021.001191.

[4]. Yuyuan Shao. Analysis of brand image and marketing strategy of Nike and New Balance [J]. China Collective Economy, 2018(01):61-62.

[5]. Ning Li. 4 p mode compared with Nike business strategy analysis [J]. Productivity research, 2016 (7) : 145-148. The DOI: 10.19374 / j.carol carroll nki. 14-1145 / f 2016.07.032.

[6]. Kai Feng, Xiuli Zheng. NIKE sports goods market success factor analysis and the enlightenment to our country [J]. Journal of shandong sports science and technology, 2016, 38 (05): 28-32. DOI: 10.14105 / j.carol carroll nki. 1009-9840.2016.05.006.

[7]. Jian Zhao. NIKE's brand Expansion and the Development of China's sports goods brand [J]. Journal of shandong sports institute, 2003 (3) : 18-20. DOI: 10.14104 / j.carol carroll nki. 1006-2076.2003.03.005.

[8]. Yuhua Yang, Guangliang Wu. NIKE women advertising semiotics agent le [J]. Journal of shandong sports institute, 2014, 30 (01) : 38-41. DOI: 10.14104 / j.carol carroll nki. 1006-2076.2014.01.010.

[9]. Guangwu Luo. Existing problems and countermeasures of NIKE Sports brand development in Vietnam [J]. Modernization, 2017 (12) : 75-77. The DOI: 10.14013 / j.carol carroll nki SCXDH. 2017.12.045.

[10]. Case introduction and Marketing Strategy analysis of Sports brands—takes Nike brand as an example of Baiyang, South China University of Technology, Guangdong Guangzhou, 510000.


Cite this article

Xiong,H. (2024). The Marketing Strategy of Nike: Combining the Market and the Media. Advances in Economics, Management and Political Sciences,68,167-171.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of the 3rd International Conference on Business and Policy Studies

ISBN:978-1-83558-267-1(Print) / 978-1-83558-268-8(Online)
Editor:Arman Eshraghi
Conference website: https://www.confbps.org/
Conference date: 27 February 2024
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.68
ISSN:2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).

References

[1]. Bai Yang. Case introduction and Marketing Strategy Analysis of sports brands -- Taking Nike Brand as an example [J]. The contemporary sports science and technology, 2020, 10 (10) : 199-200 + 202. DOI: 10.16655 / j.carol carroll nki. 2095-2813.2020.10.199.

[2]. Ning Li. NIKE and Adidas to Compete in China's Sports Goods Industry[J].China's Foreign Trade, 2001(01):34-36.

[3]. Hao Hu. Research on Nike Marketing Strategy in co-branding between sports and fashion brands [D]. Donghua university, 2022. DOI: 10.27012 /, dc nki. Gdhuu. 2021.001191.

[4]. Yuyuan Shao. Analysis of brand image and marketing strategy of Nike and New Balance [J]. China Collective Economy, 2018(01):61-62.

[5]. Ning Li. 4 p mode compared with Nike business strategy analysis [J]. Productivity research, 2016 (7) : 145-148. The DOI: 10.19374 / j.carol carroll nki. 14-1145 / f 2016.07.032.

[6]. Kai Feng, Xiuli Zheng. NIKE sports goods market success factor analysis and the enlightenment to our country [J]. Journal of shandong sports science and technology, 2016, 38 (05): 28-32. DOI: 10.14105 / j.carol carroll nki. 1009-9840.2016.05.006.

[7]. Jian Zhao. NIKE's brand Expansion and the Development of China's sports goods brand [J]. Journal of shandong sports institute, 2003 (3) : 18-20. DOI: 10.14104 / j.carol carroll nki. 1006-2076.2003.03.005.

[8]. Yuhua Yang, Guangliang Wu. NIKE women advertising semiotics agent le [J]. Journal of shandong sports institute, 2014, 30 (01) : 38-41. DOI: 10.14104 / j.carol carroll nki. 1006-2076.2014.01.010.

[9]. Guangwu Luo. Existing problems and countermeasures of NIKE Sports brand development in Vietnam [J]. Modernization, 2017 (12) : 75-77. The DOI: 10.14013 / j.carol carroll nki SCXDH. 2017.12.045.

[10]. Case introduction and Marketing Strategy analysis of Sports brands—takes Nike brand as an example of Baiyang, South China University of Technology, Guangdong Guangzhou, 510000.