Marketing Strategy and Action Plan

WORK ON MARKETING STRATEGIES
NIKE
MEMBERS:
PAULA CELIS QUINTERO
GABRIELA DE SANTIS NOGUERA
RODOLFO GALINDO VANEGAS
JUAN DIEGO RODRÍGEZ
DELIVERED TO:
SANTANDER PINTO MARGARITA
SANTO TOMÁS UNIVERSITY – BUCARAMANGA

2020
Introduction
The product chosen for a strategic horizon is the Nike Proto React Z shoe, which has been
praised for its silhouette inspired by space suits and many users also certify that they
receive praise with the shoes so it is socially very well accepted. Many comments from
Nike consumers claim that it is a very notable product despite not being a numbered Jordan,
and many critics also praise the overall design of the shoe. Several reviews also mention
that the fit of the shoes feels comparable to the Fly-knit, associated with a comfortable
shoe, its rating for such a short time on the market is 4.7 out of 5 points. Its price and
quality standards compete with the iconic Jordan Air 1 MID and its target audience is quite
attractive, being in the same segment as the aforementioned Jordans.
Therefore, unlike the Nike Jordan XX9, the Proto React has a high probability of becoming
a star product, but due to some problems with comments regarding its duration, it may lose
the growth it has achieved, so which is necessary to apply intensive strategies.
Analysis of the situation
From the results of the PCI and POAM matrices, it is concluded that Nike Inc has a very
solid strategic position, being a company with organizational, competitive and financial
strengths that allow it, among other things:
1. Investment capacity for projects
2. Greater market share compared to suppliers
3. High production capacities
4. Know your customers better
5. Added value in your products
However, one of the company's greatest weaknesses is its ability to compete on prices, and
having such a broad portfolio is not always efficient, since not all of its products are
positioned well.
One of its main threats are competitors, with portfolios that are equally complex and with
added value comparable to those of the company, who have more competitive prices and
which, therefore, in the long term can affect its positioning and participation.
Furthermore, Nike does not have as much competitive strength in Latin American markets
as Adidas does, having the financial muscle to reach these markets and position itself with
appropriate strategies for its product lines.
In conclusion, the biggest problem for Nike now is its competitors, which, while not a
problem in monetary terms, are a problem in terms of marketing.
Marketing Strategy for Nike Proto React Z sneakers

The most effective strategy then for this type of product is based on market penetration .
General objectives
1. Increase the market share that corresponds to the question product, the Nike Proto
React Z.
2. Achieve a large number of sales.
To achieve this, Nike must make the product offered on the greatest number of surfaces,
making it easier for the consumer to search.
Specific objectives
a) Maximizing the number of sellers and reorganizing the distribution channel
1. Through sales intermediaries in markets where Nike stores are not positioned,
for example, in countries like Colombia where Mercadolibre has more market
acceptance than clothing brands, they also know the market better and are
geographically closer to the consumer market. and potential than the producer
himself.
2. Horizontal integration: Using more efficient distributors and establishing a
minimum quantity per order. To reach new markets and take advantage of
economies of scale to reduce costs.
b) Maximize marketing efforts and attract customers from competitors.
1. Search for new users: Reinforcing the value of the product, stimulating
consumers, reminder advertising, Suggestive, Influencer Marketing, social
media campaigns, etc.
2. Search for new uses: Developing product line extensions, new applications in
this case within the basketball playing field, promotion along with
complementary products such as Nike basketball balls, etc.
3. Increase in the quantity or frequency of use and consumption: Provision of a
greater volume of merchandise, increase the purchase volume and decrease in
prices.
This strategy makes it possible to take advantage of foreign opportunities to ensure that the
company is in a position within the market that allows it to maintain indicators above the
break-even point.
The drawback of this strategy is a greater cost and difficulty of control than the selective
strategy. However, Nike has a large investment portfolio in addition to its strategic position
in 2020 as the best brand for athletes, so the costs and advertising actions to acquire new
users would not be a problem, where drawbacks are found is in the distribution section
because Nike should abandon its selective and exclusive distribution strategy on its
websites and increase the number of intermediaries. That without losing control of
distribution.
Policies
1. Product policies: Categorize the product as superior to those of the competition, having the
following variables in our favor:
a. That has unique characteristics for the consumer
b. That it has a high relative quality
c. That reduces the cost for customers
d. Make it innovative
e. That solves a problem for the consumer
2. Communication policies: A well-conceived and correctly executed launch.
For effective communication, significant investments must be made in product promotion.
By developing a local and global marketing plan.
a. Sales promotion encouraging product testing
b. Advertising and Word of Mouth Marketing
c. Personal sale
3. Distribution policies: Proto React Z sneakers will be available to consumers at the place
and time of demand, in the most relevant stores within their market niche in their respective
geographic areas, exercising control over the product throughout the distribution channel to
guarantee its efficiency.
4. Pricing policies : The prices set compared to the competition will be lower. The objective
is to quickly penetrate the market with a high participation thanks to the generation of a
significant sales volume.
Action plan
Product
As mentioned previously in the policies and in the introduction, the Nike: Proto React Z sneakers
are already on the market, so there is no need for an action plan for their production, however the
production policies will be more detailed. Quality for future productions.
The Proto React Z are sports shoes whose main function will be to give the shoe better cushioning
and unlock the athlete's potential. In this way you will achieve your physical performance and avoid
fatigue in matches.
a. Attributes
The main attribute will be to increase cushioning and energy supply for running and falling,
all pointing towards an improvement in the cardiovascular system and an increase in blood
flow.
b. Packing
The package design will be faithful to previous designs: With recycled cardboard that meets
economic standards set by the brand.
Primary colors: Red and Black
Secondary colors: Gray
c. Materials
The materials that will be used to manufacture the new shoe will be the same as those of the
other Jordan shoe lines. Additionally, existing products will be used to reduce production
costs. Detailed materials are shown below.
1. Canvas construction that combines perfectly with the minimalist details, this pair is
ready to blow you away.
2. The mesh upper construction provides lightness, flexibility and greater freshness.
3. Engraved exterior pattern increases traction.
4. High quality Premium leather inside, generally bovine, subjected to a grinding process
to achieve a uniform skin .
5. Low intensity expanded polyurethane rubber sole
Communication
The objectives for this product line are oriented to the positioning of the product, therefore, the
message is the most important thing, for which the iconic Just Do It will be used, but aimed at
basketball athletes who have not yet decided on Buy quality shoes for your training and matches.
This communication must reflect quality and affinity with the product to help consumers strengthen
their physical, social and mental aspects. Therefore, the objectives of this communication plan will
be:
1. Create notoriety by launching the product to new segments.
2. Strengthen its positioning in the sports market for men and women.
3. Attract new consumers.
4. Achieve a greater market share in the United States (Local Market).
The communication stage will have 4 stages: Discovery, Evaluation, Conversion, Loyalty.
a. Discovery
Communication of this activity will be carried out throughout the United States, with
invitation messages to see and try the new shoes on the Nike website.
This will be achieved through various means of communication such as:

- Offline points of sale: Specialized stores for basketball players, sporting goods stores
and department stores. In these places there will be posters, with all the information to
know the shoes.
- Subway stations: The United States has more than 20 subway stations spread across:
Atlanta, Baltimore, Boston, Rail, Chicago, among others, which run throughout the
country. With this background, advertising panels will be placed at the most important
and busy stops. Its objective will be to inform about the new shoes.
- Online sales points:
The tactics used will be:
1. Videos on YouTube with the hashtag #ProtoReact
2. Invitation to try the footwear from influencers
3. Landing Page on the Nike page with the new line of footwear with a 20% discount
for the first to order it online.
4. Articles in sports magazines
5. Communication campaigns on Twitter
Time to achieve the first phase: 3 months

Delay accepted: 1 month
Budget: 15,000 USD for Offline media, 5,000 USD for Online media.
b. Assessment
In this, the most important thing is to reinforce communication so that there is greater
recognition and generate leads to nurture them.
With the objective of:
1. Test whether customers have accepted the product or not, taking the degree of
acceptance and satisfaction as the main variable.
This will be achieved through:
a. Study cases
- Forms, surveys on social networks and forms.
b. Analytical reports
- Establish important KPIs such as: Engagement, conversion rate, number of
clicks on the buy button, visitors by geographic area, number of registered
users, Bounce Rate.
- Number of users who bought the shoes, number of users who returned the
product, number of positive reviews.
Time to complete the evaluation phase: 15 days.
Accepted delay: 15 days.
c. Conversion
The goal is:
1. Convert leads into customers
The tactics to achieve this will be through:
- Share testimonials on social networks
- Positive reviews on the product page
- Free product trials in official stores
- Comparison guides with other shoes
Time to achieve the conversion phase: 4 months

d. Loyalty
The final stage has the following objectives:
1. Client retention
2. Increase your purchases
3. Convert customers into evangelizers
Which will be achieved through:
- Customer support
- After sales service
- Training programs through the Nike app
Time to achieve the Loyalty phase: 3 and a half months
Schedule of activities
1. General Schedule
2. Schedule by stages
Distribution
The American company does not seek to have a direct presence in countries where it is not yet
located, since it is greatly facilitated for it to associate with companies in charge of the distribution
of its products. The brand will keep in mind its commitment to its consumers, to whom it will
continue to offer the best of the innovation, services and experience of Nike products.
This strategy will be carried out through a distributor that will help you achieve sustainable and
profitable growth, which will also allow you to improve your services in a more personalized way
and invest in long-term growth opportunities.
All of the above through allies such as Linio, Mercadolibre or the Nike virtual store itself with
shipments to Latin America. Therefore it can be seen that alternative distribution channels could be
suitable for the product.
Nike's marketing strategy varies depending on the sport being played. For this reason, the ways of
generating value change; in basketball, Nike is associated with successful athletes with media
projection. In the end, it's a win to win. Traditionally, the company has opted for the sponsorship of
franchise players.
Time to achieve distribution phase: 3 months

Budget: 30,000 USD
Price
The price is an important factor when making the purchase, since the values of the products vary
depending on the country where the consumer is located.
Nike must work on consolidating its market prices so that the product maintains its price regardless
of which country it is located in (150 USD). Therefore, the objectives of the pricing plan will be:
1. Nike must have direct distributors in each country where it decides to apply the strategy, so
that it can reduce shipping costs and not cause an increase in price.
2. Identify strategies for the development of packaging in countries where the reduction of
import costs is planned.
3. In the long term, Nike can think about developing production plants in the countries where
the strategy is being applied, in this way costs will be reduced and it will have more options
to offer a better price, even adapting it to the economic acquisition of the country where it is
located. or simply maintain the standard international sales price.
Conclusion
Nike is a company that adapts quickly to changes and has the portfolio capacity to invest in
innovation in development, which is why it has positioned itself as a strong company in the
technology and fashion sector, which is why it has found a opportunity to penetrate the market with
its new Proto React Z sneakers.
Through a communication campaign aligned with the brand concept, it has been positioned as
innovative and youthful, making it a leader in sports footwear for men and women, demonstrating
its high quality. Additionally, thanks to its pricing and distribution plan, it will be able to position
itself as an accessible brand for athletes.

Marketing Strategy and Action Plan

Uploaded by

Copyright:

Available Formats

Marketing Strategy and Action Plan

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Marketing Strategy and Action Plan

Uploaded by

Copyright:

Available Formats

WORK ON MARKETING STRATEGIES

SANTO TOMÁS UNIVERSITY – BUCARAMANGA

Marketing Strategy for Nike Proto React Z sneakers

This will be achieved through various means of communication such as:

Time to achieve the first phase: 3 months

Time to achieve the conversion phase: 4 months

Time to achieve distribution phase: 3 months

You might also like