NIKE AIR MAX

Marketing Assignment

Submitted By:
Anish Kumar
Aadesh Kumar
Nike is one of the most famous brand in the globe. The company was founded on January 25,
1964, as Blue Ribbon Sports, by Bill Bowerman and Phil Knight and officially became Nike,
Inc. on May 30, 1971. The company takes its name from Nike, the Greek goddess of victory.
Product: Nike Air Max

Company and Marketing Strategy of the brand: Nike is one of the most famous
brand in Pakistan. It is an American Multinational incorporation which manufacture footwear,
equipment, and Accessories. It is one of the top brand that provides sports Shoes. They use some
brilliant strategies to compete world class brands like, Adidas, Puma, and Reebok. They are very
successful to attract more and more customers and keep regular customers. Nike’s target market
is Young and adults.
Marketing Strategies of Nike are to provide comfort and reliability to attract new
customers. They endorse their product with famous celebrities including, athletes, artist, actors,
and with popular sports team. This helps them to capture market. Nike use Emotional branding
strategy, they try to attract new and keep old customers. They differentiate their product by
motivational advertisements. You will not usually see any product in their advertisements, they
release series of inspirational and motivational advertisement for promotion. For example, "Find
your greatness", "Just Do it." They target youngsters by advertising by famous sports person
and actors. They advertise like Nike is a symbol of higher status.
They provide flexible and durable facilities in a shoes and Nike always come up with a
new and unique product like "Airmax". They introduced very unique shoes Airmax with real air
of athletes and supportive fit. They collect air from athletes and put that air in shoes. They
always come up with surprises like Airmax, Air Jordan, Air Force 1, and Nike Blazers and they
also make leather custom shoes.
Marketing Mix of the Brand: Nike uses different approaches to attract by using 4p's
Product: Nike provide flexible, light weighted, smooth and non-irritating to the skin, with
supportive fit shoes. Airmax is available in variety of colors & in more than 50 different styles
and it's a cash cow product for Nike.
Price: Their target audience is upper class. Price is from $70 to $300. Nike is planning to
introduce low price shoes for middleclass market.
Place: Nike is easily available at online and at their outlets. Nike operated a total of 1182 retail
stores in 45 to 50 countries.
Promotion: Nike promotes their product by advertising, emotional, motivational, and
inspirational series. They attract their customers by playing with their brain with psychological
slogans. For example: “Find your greatness and just do it”.

Marketing Environment in which offering competes: Nike is competing with upper

class brands like, Puma, Adidas, and Reebok. They are ruling upper class market with their
innovative and unique products. Nike is expanding their market by introducing different sports
shoes and equipment like, Basketball and Gulf. Competitors are nowhere near to Nike’s market
share. They also have to compete with local brands in Pakistan mainly Bata and Services, but
they are not able to compete with Bata and service because of their high prices. They are
planning to introduce high quality products at lower prices so they can capture the market of
Bata and Services. They introduce their products in developed and developing countries where
income per capita is higher than average because of its expensive product.
 Economy Growing: Introducing high price products
 Economy Declining: Introducing low price products
Product Development: Nike is also trying their hand in different markets by launching new
products and also getting good response from consumers. For Example, Apparel related to
Sportswear, and Equipment like, Bags, Watches, and Goggles.
Major Competitors and their offering with respect to ours: There are many
competitors of Nike.
 Adidas  Bata
 Puma  Services
Adidas: Adidas is also top brand in world Adidas uses different targeting
strategy to target young adults and children who are addicted for fitness & sports. While it
targets customers in the age group of 13-40 years but majority of its customers are of 15-30 years
of age who are from upper middle class or the luxury class of customers.
Puma:  Puma deals in product categories such as footwear, personal care, eyewear, watches,
sports accessories and clothing.
Bata: Bata is top brand in Pakistan and they are not giving any chance to Nike for taking its
market share. They provide very low price shoes as compare to Nike. There prices are under
5000. They have recently introduced ‘Red label Collection’ for moms.
Services: Service is also a top brand in Pakistan. They provide variety of shoes for everyone
under slogan “Shoes for Everyone”. They are main competitors of Bata. Prices are also
affordable.
The target audience of Bata and Service is Middle lower class.
Characteristics Affecting consumer behavior towards brand:
Motivation: Nike uses motivational slogans include ‘Find your Greatness’, ‘Just do it’, change,
Freedom, and many more words like these which makes consumer believe that everything is
possible and if you wear Nike then you can do everything.
Perception: As we already mentioned, Nike advertise with famous and successful athletes.
Some examples are Ronaldo, Ronaldinho (Footballers), Rory Mcllroy (best golfer). We know
they are best in their fields. So we can also be best when we wear Nike.
Learning: Nike is very popular brand with brilliant advertising strategy and mouth of word
whoever use Nike they share their positive views with their family and friends.
Satisfaction: Consumer wants to buy those shoes which are comfortable, durable, and reliable--
which make them look cool and make them feel good. Nike shoes satisfy their all need and give
them satisfaction.
Family: When youngsters see their elders wearing Nike shoes that tend to buy Nike shoes.
Social Class: Nike is a symbol for upper class. It makes people feel rich and satisfied as in the
advertisements usually the top athletes are shown in them because of that the ones who keep
these athletes as role models inspire to purchase the joggers. Apart from that friends always
motivate us on buying such products we want to be recognized and affiliated with top class.
Age: It also influence buyer behavior toward product. People wants to buy products that make
them look young.
Above all characteristics pushes customers to buy Nike.
Consumer Decision Making Process:
Need Arise: Identifying the need. The need may have been triggered by internal stimuli or
external stimuli.
 Internal Stimuli: When you realize that I have need of shoes.
 External Stimuli
 Celebrities advertise  Word of Mouth
 Reliable & Durable  Warranty
 Sales and Discounts
Information: Next step is collecting information about product from different sources.
 Internet: we will search on internet  Social Media: We collect from
about Nike. Facebook brand page.
 Market Research: We will collect  Family: We take advice and
information from market. suggestion from our family.
 Advertisement: we get information  Past Experience: it also influence our
from bill boards and TV ads. buying decision. Friends also share
their experience about product.
Evaluate Alternatives: We will compare the alternatives of Nike.
Purchase: Philip Kotler (2009) states that the final purchase decision may be ‘disrupted’ by two
factors: 
 Attitude of others: Feedback from others may also affect your purchasing
decision. Like your family member or friend gave you negative feedback about
Nike. You may change your purchasing decision.
 Uncertain factors: Uncertain factors can also affect the purchasing decision.
Like, you lost your job, you lost your wallet etc.
Post Purchase Behavior: After purchase consumer will compare product with their previous
expectations. They will be either
 Highly Satisfied  Not satisfied
 Satisfied
If your customer is satisfied, this will result in brand loyalty, and the Information search and
Evaluation of alternative stages will often be skipped altogether.