耐克公司4ps营销策略对我国体育用品产业的启示.doc

Abstract

With the fast economic prosperity in the last three decades, researchers at home gradually attach enthusiasm to the studies of marketing strategies in sports goods brands. Consequently, a few studies have emerged in China, while those of foreign capitalism countries have been flourished. Therefore, this study attempts to exploit marketing strategies of Nike to enlighten sports goods brands in china.
In this study, the author looks into the history and development regarding to marketing strategies of Nike, and then selects Nike’s 4Ps marketing strategies advantages on the chosen subjects. Through the 4Ps analysis comparison of both Nike and domestic brands, we found out Nike’s strengths to conclude viewpoints to redeem our brands shortages. We hope that this study can provide some insightful viewpoints to enlighten our brands.
Key Words: Nike; 4Ps analysis; marketing strategies; domestic brands

摘 要

随着改革开放30年经济的快速发展，有关于体育用品品牌营销策略的研究逐渐引起了国内学者研究的兴趣。其结果是，国内涌现出一批相关研究，尽管国外资本主义国家关于这方面的研究已相当发达。有鉴于此，此篇论文尝试去挖掘耐克公司的市场营销策略对我国体育用品品牌产生的启示作用。
在这次研究中，作者首先研究了耐克市场营销策略的历史和发展，然后根据选定的主题挑选出耐克市场营销策略的优势。 通过4Ps分析方法比较耐克和国内品牌，我们发现耐克的优势，并总结出来有助于弥补国内品牌此方面的不足之处。我们希望本研究能够提出一些对中国体育用品品牌起到启示作用的观点。
关键词：耐克；4Ps分析方法；市场营销策略；国内品牌

Contents

Abstract i
摘要 ii
1. Introduction 1
1.1 Rationale 1
1.2 Aim and objectives 1
1.3 Organization of the paper 2
2. Literature Review 3
2.1 Definition of marketing strategies 3
2.2 Previous studies on marketing strategies of Nike 3
3. Main Content of 4Ps Theories 4
4. Analysis and Application of Nike’s 4Ps Theories 5
4.1 Product 5
4.1.1 Technology renewal according to realistic needs 5
4.1.2 Crossover product through non-competitive strategic alliance 5
4.1.3 Actively imitating competitor 5
4.1.4 Focusing on design and contribution, outsourcing the production 6
4.2 Price 6
4.2.1 Specific price location according to different market 6
4.2.2 Fixed price 7
4.3 Place 7
4.3.1 Distribution through E-commerce 7
4.3.2 Reasonable distribution 7
4.4 Promotion 7
4.4.1 Diversified investment on well-known athletes and teams to gain attention 7
4.4.2 Skills in implementing consumers’ emotional acquiring 8
5. Conclusion 10
5.1 Major findings 10
5.2 Suggestions to our brands 10
5.3 Shortages of this paper 11
References 12
Acknowledgements 13

1. Introduction
1.1 Rationale
Studies on analyzing marketing strategies of successful sports goods companies have gained great attention in developed countries, because not only the scholars but also the entrepreneurs want to find out the hidden secret of those companies.
Sports industry has a rapid development in the last decade. Early in the 2000, the global sports industry’s gross output has attained 400 billion dollars, meanwhile an average 20% increase achieved each year. Moreover, in Australia, Canada, Japan, UK, German, France, Italy, etc., sports industry contribute 1%-1.5% GDP in those developed country. (Zhou Xikuan, 2003: 347)
Although our national sports industry did not keep pace with the trend, encouragingly several national sports goods’ brands, Like Li Ning, Peak, Anta, 361, and so forth, emerge one after another not only in the domestic market, but also penetrate foreign markets, concluding from the NBA stars wearing those brands’ shoes in the games.
We can’t deny that “made in China” products make a remarkable sales volume globally. In another words, the workshop of the world is put forward to describe China acts an important role in manufacturing and processing. Actually, a great majority of consumers associates Chinese products with image of low price, inferior quality, and bad after-sales service.
Can Chinese athletic brands get rid of the negative image? Can they transform their traditional operating ideas into far-sighted and establish globally well-known sports empire as other sports industry giants, like Nike?
Confucius said, among any three people walking, I will find something to learn for sure. Their good qualities are to be followed, and their shortcomings are to be avoided. Nike, the most valuable brand, can be regarded as a successful model and we can extract some useful, advanced methods to follow.
1.2 Aim and objectives
This study aims to find out Nike’s effective marketing strategies and provide some suggestions on how to develop our own brands. In general, the study has the following three objectives: (i) to investigate the influential events in Nike’s history and the current situation; (ii) to conduct an analysis on specific branches of Nike’s marketing strategies; (iii) to extract essence of Nike’s 4Ps marketing strategies to enlighten our sports goods brands.
During the process of the study, we first accumulate both domestic and abroad dissertations about Nike’s marketing strategies. Then we allocate them under each category of Nike’s 4Ps marketing strategies and analyze the certain effect on customers.
1.3 Organization of the paper
This paper is divided into six chapters. Chapter one serves as an introduction of the rationale and aim of the study. Chapter two is an overview of the theories and studies related to marketing strategies learning. Chapter three describes the research methodology—4Ps marketing strategies. In chapter four, we separate Nike’s development into three periods to reveal its focuses on strategies change. Chapter five focuses on dividing Nike’s marketing strategies into four categories: product, price, place, promotion, which is the core element in the whole study. Chapter six concludes the findings of Nike’s 4Ps marketing strategies and provides suggestions to our country sports goods industry strengths, as well as the shortages of this paper.

2. Literature Review
In this chapter, we will briefly introduce the theories and studies concerning Nike’s 4Ps marketing strategies.
2.1 Definition of marketing strategies
Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.
Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives
Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. The 3C’s Model is a business model, which offers a strategic look at the factors needed for success. The 3C’s model points out that a strategist should focus on three key factors—the corporation, the customer, and the competitors, for success. And then the 4Ps can be utilized to form a marketing plan to pursue a defined strategy.
Marketing strategy involves careful scanning of the internal and external environments. Internal environmental factors include the marketing mix, plus performance analysis and strategic constraints. (Almaney, 2000: 3) External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success. A key component of marketing strategy is often to keep marketing in line with a company’s overarching mission statement.
2.2 Previous studies on marketing strategies of Nike
In recent decades there were large amounts of research achievements about the studies regarding learning strategies both in the foreign countries and in China. For example, among the foreign studies, Donald Katz (2001) studied how Nike benefit from exploiting the sports stars’ potential values; A. J. Almaney (2000) instructs his team prove their findings through professional data and segment strategies by 4Ps analysis. In China, Chen Limin (2008) conducted a study on two typical advertisements of Nike, emphasizing Nike well implementing customers’ emotion to increase its brand recognition; Xue Jie (2009) conducted non-competitive alliance study how Nike and Apple cooperate on perfectly integrating product.

3. Main Content of 4Ps Theories
The marketing mix is a business tool used in marketing products. The marketing mix is often crucial when determining a product or brand’s unique selling point (the unique quality that differentiates a product from its competitors), and is often synonymous with the “four Ps”: “price”, “product”, “promotion”, and “place”. However, in recent times, the “four Ps” have been expanded to the “seven Ps” with the addition of “process”, “physical evidence” and “people”. Recently, “four Cs” theory is also in the limelight.
The term “marketing mix” was coined in 1953 by Neil Borden in his American Marketing Association presidential address and became popular in the article written by Neil Borden called “The Concept of the Marketing Mix.” He started teaching the term after he learned about it with an associate.
The prominent marketer, E. Jerome McCarthy, proposed a Four Ps classification in 1960, which has since been widely used by marketers throughout the world. Since consumerism appeared late in the 1960s, Four Cs theory has been proposed in Japan (1973) and the United States (1993).
The “four Ps” consist of the followings:
(1) Product. A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible good or an intangible service.
(2) Price. The price is the amount a customer pays for the product. The price is very important as it determines the company’s profit and hence, survival.
(3) Place. Place refers to providing the product at a place which is convenient for consumers to access. Place is synonymous with distribution.
(4) Promotion. Promotion represents all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion

4. Analysis and Application of Nike’s 4Ps Theories
4.1 Product
4.1.1 Technology renewal according to realistic needs
Continuous emphasis on technical innovation in the design of footwear, apparel, and athletic equipment has been the key for company’s leadership position in the footwear and apparel market. The company employs its own staff specialists in the areas of biomechanics, chemistry, exercise physiology, engineering, industrial design, and related fields, in order to pursue the simple goal-products best suited to athletic needs. Besides, the company also utilizes research committees and advisory boards made up of athletes, coaches, trainers, equipment managers, orthopedists, podiatrists, and other experts for consultations on designs, materials, and concepts for product improvement. Furthermore, the company employs services of athletes, either employed with the company or engaged under sports marketing contracts, to evaluate products during the design and development process. They will, in certain time, meet the company’s staff, scrutinize various design projects, product stuff and think of product improvement.
4.1.2 Crossover product through non-competitive strategic alliance
Crossover product is a heated topic nowadays. Two unrelated elements can be elaborately assemble into one new product, like BMW’s automobile offering its brake techniques to bicycle manufacturing. Apparently, this crossover attempt should follow the non-competitive alliance principle. The parties including the non-competitive strategic alliance are usually not in the same industry line, not even subject to limitation of the tradition supply chain. Consequently, their corporation is based on resource complementary, that is, through core resource sharing, including visible source like product, techniques, equipment, and invisible source brand, like intellectual property, the alliance member can reach a win-win situation position.
For example, Nike launched Nike & GPRS App on the App Store in September 2010. The new Nike & GPRS App includes several features which allow runners to use their iphones to map every run while tracking pace, distance time and calories-burned. It also provides instant feedback during and after each run from athletes. Nike partnered with Apple to develop a shoe with embedded chip that communicates data on speed and distance covered to the runner’s iPod. The popularity and customer penetration of iPods and other mobile devices that runners often use during exercise showcases Nike’s competency in innovative product design.
4.1.3 Actively imitating competitor
Creativity doesn’t merely mean continuously exploiting undiscovered aspects, it also means digesting other’s successful experience and then it internalizes, and improves. Nike never conceals its respect and interest to Adidas, especially Adidas product strategy. We can conclude this strategy as the followings: (i) Manufacturing new-design, different model product to segment market, fulfilling different needs; (ii) Associating product with contracted famous athletes, wearing the product with company’s logo; (iii) Updating product to follow the pace of product development. Nike imitates its competitor and shortens its time to success.
4.1.4 Focusing on design and distribution, outsourcing the production
The complete process of sale contains three elements: product design, product manufacturing, and product distribution. Outsourcing the manufacturing part with low added value, Nike can make no spare effort on design and distribution. Nike’s production facilities, mostly situated throughout Asia and South America, are located close to raw materials and cheap labor sources. The cost savings due to the placement of production facilities allows for cheaper production of products.
4.2 Price
Nike aims at the consumers who are likely to develop product intimacy; those who care more about the utility and quality of the product than the price. In this way, the pricing is not affected too much in a bid to accommodate a large number of consumers. Nike targets the consumers who embrace product intimacy and thus care less about the product. This has enabled Nike to set relatively higher prices than its competitors.
This is a strategy that calls for higher pricing points so as to push the perceived product value. It has been established that consumers who consider a product to be of high quality are likely to pay the high price more often and consistently. Once consumers develop product intimacy, they come to associate their person with the product and will pay whatever price quoted on the product provided it has the Nike logo on it.
Another very important thing to note is the fact that Nike uses the vertical integration pricing strategy in which they take ownership of the participants at channel levels that differ