Nike is a multi-billion dollar company dealing in the design, marketing and distribution of sports apparel. Nike was humbly established in 1972 and has grown to be a dominating athletic brand in the sports industry. From shoes to eyewear, Nike has established itself as an innovative and diverse sportswear company. With over 700 stores globally and a twenty billion dollar increase in revenue, all in twenty years, Nike continues to dominate the international sportswear market. Nike’s success can be attributed to its extensive marketing strategies that will be discussed in this paper.
“Sustainability and business growth are complementary,” (Keller, 2016). Sustainability as a marketing strategy aims at achieving production and sales with minimal impact on the environment, in terms of pollution. Nike tries to achieve maximum sustainability by reducing its total carbon dioxide emissions and prioritizing sustainability on consumer brands.
Nike always tries to outdo the competition and innovation is a way to do it. The sportswear market has a lot of big companies such as Puma and Adidas. These brands are quite famous but, “The differentiation strategy of Nike is quite competitive…”. This differentiation and innovation have led to Nike having products in all manner of sports, effectively pushing the company past the competition.
Ensuring the production of quality products, aimed at the consumer's satisfaction is a great marketing strategy. Nike values its consumers, and its products are geared towards helping the athletes. In the Rio Olympics 2016, seventy-nine medals were won by athletes who wore the Nike sneaker brand. This was almost five times more than the brand in second place.
Nike embraces technology. Taking social media as an example, as of April 2016, Nike had the most massive following on all major platforms combined. Through social media and its website, Nike has access to the e-commerce platform, which increases its reach to countries that lack Nike stores. In fact, Nike had launched their website seven years ahead of Adidas. Still, on technology, Nike is miles ahead with the HyperAdapt 1.0 that ties the shoelaces automatically.
Nike has been seen to react to other competitive sportswear brands by buying them. Several examples are, Canstar, which was acquired in 1994 for four hundred million dollars. Nike also acquired Converse in 2003 for three hundred and five million dollars. This is a sound marketing strategy since by buying a rival company, Nike has essentially eliminated part of the competition.
Nike's advertising is a crucial factor in marketing. Nike offers endorsement deals to celebrities and athletes who have a vast social media influence. The celebrities and athletes, in turn, wear the Nike apparels and market Nike's products. Nike also has a lot of commercials involving celebrities and athletes. By spending over three billion dollars in advertising per year, Nike’s international marketing strategy reaches all corners of the world.
International marketing can be tricky due to socio-cultural differences across different borders. Some countries may be against Nike’s methods, but Nike has to find a way to reach out. The use of campaigns, celebrity endorsements, advertisements, and sustainable manufacturing are international marketing strategies most people can agree on. The use of Social media allows Nike to capitalize on e-commerce. Nike fully utilizes these marketing strategies, making it the largest sportswear company in the market.