Market
Product focus
The introduced product seeks to transform Nike’s business model and profitability. This goal will be achieved by presenting a superior product that tackles the problem of rivalry in the industry. The production of a shoe with a changeable sole is an approach that seeks to meet the diverse needs of many customers (Rivoli, 2015). The strategy is also aimed at increasing the company’s revenues within a period of two years. Consequently, the corporation’s market share will increase significantly.
Objectives
Several goals will be considered to ensure that the targeted NikeMPx is produced and marketed successfully. To begin with, Nike Incorporation plans to increase its revenues by over 10 percent in two years. This goal is possible since the corporation’s established model supports the needs of different customers (Shen, Li, Dong, & Perry, 2017). Secondly, the organization is expecting to increase the number of its loyal customers. The aim is supported by the fact that many individuals who purchase the company’s products tend to become repeat customers. The third objective is to redefine the corporation’s business model and deliver positive results.
Segmentation
The wider market will be segmented using several approaches to ensure that more customers are informed about the intended product. The first one is that of demographics. Throughout the marketing process, attributes such as income, occupation, age, and gender will be taken into consideration. The aspect of income will also be identified to ensure that families and individuals who have average salaries purchase the shoe. Professional athletes, trainers, and coaches will also be identified in an attempt to support the marketing process (“Nike mission statement,” n.d.). Females and males aged between 14 and 45 will form the backbone of the segmentation process. Geographic segmentation will be used to divide markets into various regions. This will include North America, Europe, Asia, Middle East, South America, Africa, and Australia (Lechner & Boli, 2015). The final approach will be behavioral in nature. Individuals who engage in various sporting activities will be identified and targeted throughout the marketing process.
Targeting
People in different geographic regions exhibit diverse behaviors and cultural practices. Similarly, their actions and goals differ significantly. This information explains why a differentiated targeting strategy is appropriate for NikeMPx. This means that diverse promotional approaches will be implemented to meet the needs of different segments (Rivoli, 2015). The main aspect to change in each region is the formulated promotional message. The message will resonate with the needs of different customers.
Positioning
In terms of positioning, the identified product will be marketed as a superior shoe that delivers numerous benefits to the user. The shoe will be appropriate for people who engage in various sporting activities. It will also be useful for those who want to achieve their professional or career objectives (Alexander, 2015). The multipurpose shoe will be the best bet for saving money and promoting the concept of sustainability.
Competitive advantage
NikeMPx is an innovative product that addresses the problem of increased competition in Nike’s market segment. This shoe is capable of delivering numerous benefits to the end-user. The product is also of the highest quality due to the company’s R&D practices. It also takes the idea or issue of environmental conservation to the next level. This means that the shoe will reduce every person’s ecological footprint (Shen et al., 2017). Additionally, the product is supported by Nike’s extensive logistical and distribution network systems. These attributes will sustain the marketing process and make the shoe successful in different market segments or regions.
Current markets
Presently, Nike Incorporation has markets in different parts of the world such as Latin America, Europe, North America, and Asia. These segments have been targeted in such a way that only those individuals involved in various sporting activities or exercises are encouraged to purchase Nike’s products (Alexander, 2015). The existence of these markets will make it easier for the corporation to achieve its objectives and revenues. However, such regions might not be effective or capable of delivering positive results.
New markets
The success of NikeMPx will be possible if new markets are identified and supported using appropriate initiatives. The first issue is to select new markets in Asia and Africa. This decision is relevant since such regions have not been taken seriously before. Alexander (2015) indicates that such markets have been recording an increased number of potential customers. More people in these areas are earning better salaries than ever before. Additionally, these new and existing markets will be analyzed in an attempt to attract more people who have not been embracing Nike’s superior products and apparel (Paiva, Marques, da Silva, Antonio, & Aran-Ais, 2015). This means that the marketing model will be expanded in such a way that it addresses the diverse needs of individuals who are not engaged in professional sporting activities.
Marketing Program
Nike’s Multi-Purpose shoe (NikeMPx) is capable of transforming the experiences of many customers. This product should be supported using a powerful marketing mix (4Ps) if positive results are to be realized (Paiva et al., 2015). The involvement of different stakeholders, supervisors, and product ambassadors will make the process sustainable and profitable. The major aspects of the 4Ps marketing mix are described below.
Product
Many people in need of sporting shoes focus on three major issues. These include safety, usability, and quality. NIkeMPx is a superior product that addresses these demands. The product is of the highest quality due to the company’s ability to embrace the power of research and development (R&D). The shoe has a changeable sole, thereby making it usable or applicable in different activities such as jogging, running, or walking (Mahdi, Abbas, Mazar, & George, 2014). It also carries the unique attributes such as quality and efficiency that are associated with Nike Incorporation.
Pricing
Successful services and products in the market are characterized by competitive prices (Shen et al., 2017). At Nike, the issue of pricing for this revolutionary shoe must be taken seriously. Due to the nature of this product and its ability to deliver, a slightly higher price will be considered. This approach will ensure that the company does not operate at a loss (Sage, 2016). At the same time, customers who realize that the shoe can meet their diverse needs will be willing to purchase it. Additionally, this pricing strategy has the potential to tackle the challenge of competition and make NikeMPx successful in the market.
Place
The effectiveness of NikeMPx in the market will be supported using this attribute. With Nike having its strategic stores across the globe, the shoe will be noticed and delivered to more potential customers (Mahdi et al., 2014). The company’s website and social media presence will also be considered to support the marketing process.
Promotion
In order to make this shoe successful in different markets, an effective promotion strategy will be put in place. Several approaches will be used to achieve this goal. The first one is the use of free samples. For instance, individuals who buy three or more NikeMPx shoes can be rewarded with an extra pair. Brand ambassadors and celebrities can be identified to support the targeted promotional strategy (Sage, 2016). Social media platforms will also be used to reward individuals who refer the product to more potential buyers.
Financial Data and Projections
Nike plans to achieve its financial goals within two years. The new NikeMPx shoe is expected to support the company’s business performance. The estimated profit within a period of one year is 40 million US dollars from this product. Operational expenses will also be expected to increase by 5 percent within the same period. This is the case because the organization will have to hire more employees to implement and support the marketing process. The need to open new stores or outlets in underserved markets in Latin America and Africa will also result in increased expenses. The projected average variable cost percentage is 12 percent (Mahdi et al., 2014). The company also plans to improve its financial position within a year. The new shoe is, therefore, expected to support this aim.
Organization
In terms of organization, competent individuals will be hired to support the outlined marketed strategy. The most important goal is to ensure that the marketing plan improves the company’s profits within a year (Mahdi et al., 2014). Extra expenses will be incurred to hire or employ different celebrities and brand ambassadors to make the promotional attribute of the above marketing mix successful. Regional managers will coordinate various activities in order to deliver positive results.
Implementation Plan
As indicated above, an efficient implementation strategy will be put in place in order to deliver desirable results. If positive financial gains are to be recorded, a competent team in every region will be put in place to support the marketing strategy for the intended NikeMPx shoe. New and existing markets will be identified and supported using competent teams. The right resources and logistical operations will be considered in an attempt to make the process successful (Mahdi et al., 2014). This model will ensure that different regions are supported using the best processes. Additional expenses will have to be incurred to ensure that the company operates smoothly.
Evaluation
Throughout the implementation period, different issues that might affect the profitability and revenues of this new shoe will be monitored. Obstacles that are capable of disorienting the effectiveness of the marketing process will be identified and addressed immediately (Sage, 2016). This process will also ensure that new marketing incentives are taken into consideration in order to maximize the company’s revenues and profits. Insights from different stakeholders such as customers in different regions will be considered to come up with superior approaches or practices.
Conclusion
NikeMPx is an innovative product that resonates with the needs of many people in every part of the world. With the use of a powerful marketing mix, it will be possible to record positive financial results. The accrued profits will be also used to improve the marketing approach. Finally, the insights gained from the evaluation process will be used to inform new practices in order to achieve positive results.
References
Alexander, P. (2015). Corporate social irresponsibility. New York, NY: Routledge.
Lechner, F. J., & Boli, J. (2015). The globalization reader (4th ed.). New York, NY: Wiley.
Mahdi, H. A., Abbas, M., Mazar, T. I., & George, S. (2014). A comparative analysis of strategies and business models of Nike, Inc. and Adidas Group with special reference to competitive advantage in the context of a dynamic and competitive environment. International Journal of Business Management and Economic Research, 6(3), 167-177.
Nike mission statement. (n.d.). Web.
Paiva, R. M., Marques, E., da Silva, L. F., Antonio, C. A., & Aran-Ais, F. (2015). Adhesives in the footwear industry. Journal of Materials: Design and Applications, 230(2), 1-13. Web.
Rivoli, P. (2015).The travels of a T-shirt in the global economy: An economist examines the markets, power, and politics of world trade (2nd ed.). New York, NY: Wiley.
Sage, G. H. (2016). Globalizing sport: How organizations, corporations, media, and politics are changing sports. New York, NY: Routledge.
Shen, B., Li, Q., Dong, C., & Perry, P. (2017). Sustainability issues in textile and apparel supply chains. Sustainability, 9(1592), 1-6. Web.