Influence of Nike Multifaceted Strategies-Free-Samples for Students

Question: To what extent is Nike's multifaceted strategy responsible for its position in the sport industry? Answer: Background of Study Multifaceted marketing strategies facilitate an organization towards selling products in various ways using different tools and techniques (Athanasopoulou et al., 2015). Nike has successfully used such their multifaceted strategies for gaining success in global sports industry. Moreover, the organization has become success in holding 31% market share in global athletic footwear market (Richelieu Desbordes, 2013). Nike spends almost $100 per second in their sports apparel advertisement for reaching their unique value to the customers. The quality of the sport apparels has built the foundation of success of Nike in the sports industry. The organization has spent more than $3.3 billion on their marketing strategies for touching the emotional part of the consumers (Davidson, 2014). Aim of the Research The aim of the research is to discuss the extent of the influence of Nikes multifaceted strategies. Research Objectives To discuss the background of the sports industry To demonstrate the extent to which Nikes product, price, promotional mix, place and market segmentation strategies are responsible for positioning it in sports industry To explore the factors for which Nike makes more profit because of multifaceted strategies Research Question What is the background of the sports industry? How Nikes product, price, promotional mix, place and market segmentation strategies are responsible for positioning it in sports industry? What makes Nike more profit because of multifaceted strategies? Outline Theory Background of Global Sports Industry Sports industry has become a wide reaching business in global market, which spans the field of play. In recent days, the worth of sports industry has been presented between $480 billion to $620 billion. By the end of 2017, global sports industry is expected to generate revenue around $91 billion. Kolt, (2013) opined that global market for sports equipment has been grown from USD 61,778.7 million in 2010 to USD 66,528.8 million in 2013. The retail sport goods industry is expected to grow by 3.4% by the end of 2020. The major market players in this industry are like Nike, Adidas, Dicks Sporting Goods, Pumaand many more. Manzenreiter, (2014) stated that the competition among these major market players are concentrated around the sports products like athletics apparel, athletic footwear and other sports equipments. Significance of Multifaceted Strategies in Sports Industry Multifaceted strategies allow an organization towards selling the products in various ways for maximizing the sales. In such marketing, organizations can use different marketing strategies for finding out the best alternative marketing strategy and eliminating the least effective marketing strategy. Singh (2013) pointed out that comfortable and good quality sports outfits boost the confidence level of the athletics. Good quality cotton and other materials help the athletics in improving their performance by keeping their body refreshed. Therefore, products strategy plays a significant role in attracting the consumers in sports industry. On the other hand, Bae et al. (2015) opined that the impact of pricing strategy is largely dependent on the type of usage intended by the potential buyers in the sports industry. The consumers do not evaluate the price of the sports equipment, when the intended usage of the products is related to sports practice. However, Yi and Yang (2014) consumers always evaluate the price of the sports equipments when the intended usage of the products is related to only pleasure. Convenient accessibility of the sports products saves the time of the sports persons in purchasing their sports equipments. Hence, place strategy plays an important role in attracting the consumers in sports industry. Proper promotional strategy reaches the unique information of the sports equipments to the customers, which enhances the loyalty level of the customers. In this way, effective promotional mix through proper advertising fosters repetitive sales of sports equipments, which can enhance the sales revenue of sport retails in sports industry. Market Positioning Factors in Sports Industry Quality of the sports equipments is the most significant factor, which can differentiate them from one another. Moreover, Pan (2014) stated that good quality sports equipments boost the confidence and enhance the performance level of the athletics. Hence, unique quality of the products can make a unique position for an organization in sports industry. Athletics are not much price sensitive and are never willing to compromise quality for price. However, Davidson (2014) opined that extreme price competition among the market players is encouraging the consumers in seeking for good quality products with low price. Hence, affordable price along with good quality products can differentiate an organization in the sports industry. Convenient accessibility of the sports equipments is extremely important for encouraging the consumers purchasing those equipments. Attractive offerings and discounts always attract the sports persons in purchasing the sports equipments. Hence, lucrative offerings and discounts can encourage the consumers in sports industry towards taking prompt purchasing decision. Research Method or Approach The research paper will select deductive research approach for collecting effective information regarding the topic of the research. Such approach will facilitate in using previous theories and models for collecting authentic research information. On the other hand, the study will use descriptive research purpose for collecting additional research information through elaborated model (Halcomb Hickman, 2015). The study will collect authentic information regarding the multifaceted strategies of Nike through various secondary sources. Moreover, the research paper will use secondary method of data collection for gathering authentic research information. Evaluation Nike has wide product ranges of portfolio, which meets several needs of wide ranges of customers groups in sports industry. Throughout the years, the organization has added more product lines in its product category, which are ranging from sports shoes, sports apparel and other sports equipments and accessories. Moreover, the organization uses high quality product materials in the sports equipments, which boosts the confidence of the athletics (Singh, 2013). In this way, unique product quality has made the organization to stand out unique in the sports industry. On the other hand, the organization uses value based pricing strategy and set the price of the sports equipments based in their value. It enhances the perceived value of the products to the customers. Nike offers retail sales, online sales and Niketownretail outlets, which provide customers convenient accessibility scope in purchasing the products. Moreover, the smooth online sales options have provided unique value to the customers in accessing their required sports equipments. Nike spends almost $100 on their advertisement per second for communication their unique value proposition to the customers (Bae et al., 2015). Moreover, the mixing of advertisement, direct marketing, personal selling, public relation and sales promotion effectively communicate the innovative features and offerings to the most important customers. Such strategy drives the customers in taking prompt decision for purchasing the products. Nike has mostly targeted the athletic customer groups for meeting their core needs and demands for making unique position in the sports industry. References Athanasopoulou, P., Giovanis, A. N., Avlonitis, G. J. (2015). Marketing strategy decisions for brand extension success.Journal of Brand Management,22(6), 487-514. Bae, J., Lu-Anderson, D., Fujimoto, J., Richelieu, A. (2015). East asian college consumer decision-making styles for sport products.Sport, Business and Management,5(3), 259-275. Davidson, A. (2014). Harvard professor mikolaj piskorski's research-based social media business development model.Strategy Leadership,42(4), 40-44. Halcomb, E., Hickman, L. (2015). Mixed methods research.Nursing Standard (2014+),29(32), 41. Kolt, G. S., PhD. (2013). The impact of global sporting events.Journal of Science and Medicine in Sport,16(6), 487. Manzenreiter, W. (2014). 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