The purpose of this report is to analyze the marketing strategy and plan for the Nike VaporMaxtm and to provide a background and analysis of the manufacturer, product, target market, pricing strategy, promotion strategy, and placement of the product and develop recommendations to improve the success of the product (Ormsby, 2018).
Authorization would be sought for from the company for the analysis of the product.
The study would be based on the resources available on the internet regarding Nike and its product to identify the innovation strategies and features of the product, its marketing campaign and its pricing and promotional strategies. Therefore, the analysis would be limited to the resources available online, subjected to the accuracy of the details available on the official websites (Bull et al., 2016). Additionally, a time constraint is also applicable.
SWOT analysis would be done on the product to find its strengths, weaknesses, opportunity and threats. The products life cycle, classification, three layers and position would be discussed. One advertisement would be selected for the product and its execution strategy would be analyzed. Additionally, the placement of the product would be discussed for its suitability in the market. The recommendations would be proposed based on such understanding (Bull et al., 2016).
Nike Air VaporMax Flyknit Running Shoes provides a lightweight and bouncy feeling for its users. The product is top of the shelf product that was launched in 2017, and features some of the top footwear innovations developed by Nike. The shoe is designed to be ultra light and super comfortable (Nike.com, 2018; Childs & Jin, 2018).
Nike Inc is a multinational company whose headquarters is located in Washington County, Oregon, USA and was founded in 1964. It is one of the leading manufacturers of sportswear, sports accessories, sports equipments and apparels. As of 2017, the global revenue for Nike was around 36.4 billion USD and a net income of 1.93 billion USD. It holds about 26% of the market for sports footwear, and is ahead of its competitors Nike and Addidas. The company is one of the leaders in the market in sportswear and is considered as one of the most valuable apparel brand as of 2018 (news.nike.com, 2018; Childs & Jin, 2018).
The shoe can be purchased from the Nike online store and retail stores in Australia (nike.com, 2018).
The strengths of the product lies in the innovative features and technologies of the product, which includes Nike Flywear (which creates target stretching areas for the shoe to support adaptive performance), Nike Flyknit Upper (which provides a lightweight support), Outsole (which provides maximum traction using integrated TPU lugs), Integrated Rubber Pods (which is placed in areas of high impact to increase the durability of the shoe) and VaporMax technology (which provides air cushioning for best performance) (Seamarks 2017; Christensen et al. 2014). The shoe also provides true size for the owners, it comes in various color options to suit the user, has a good midsole buoyancy and support, has a better airflow and is very light (nike.com 2018).
Significant weakness of the product includes the high end price, the flyknit design not being as durable according to customer expectations and pricing, durability of the shoe tongue, durability of the air cushion, and insufficient underfoot protection (DeAlmeida, 2017).
The design of the shoe still has some scope for further development; these include increasing the durability and sturdiness of the flyknit, shoe tongue and the air cushion. The underfoot protection can also be improved so that the wearers do not feel what they are stepping on to. The price of the shoe can also be reduced to make it more competitive with other brands and increase the customer’s sense of the value for money (Pandey 2017).
Threats to the market for Nike VaporMax include its competitors such as Adidas Ultra Boost which provides very similar features for its owners as VaporMax. Other threat is from the fake imitations of Nike shoes that affects the brand value and market of Nike. Other competitors for Nike includes: Reebok, Puma, Converse, Fila apart from Adidas.( Brohi et al. 2016)
The main market of Nike is in the sector of sports and athletic footwear and accessories. Nike VaporMax specifically aims towards the sports industry sector where there is a need for high quality and high performance shoes and footwear that can maximize the performance of the athletes on the field (nike.com 2018).
The typical consumers for the product are the athletes and sports professionals who need state of the art footwear to support the optimal performance. The market also includes non professionals and enthusiasts of sports. Additionally, the products also focus on individuals who engage in running and jogging activities and fitness exercises (Mahdi et al. 2015).
The Core Benefits that was intended for the shoe includes ultra light, exceptionally comfortable, improved support and better airflow. Also the product aims to support best performance for the athletes meeting their footwear needs (Cast et al. 2016).
The Actual Product however has few shortcomings, such as the durability of the flyknit, shoe tongue and the air cushion. According to users, the shoe does not have sufficient underfoot protection.
Augmented Product specifications include a good after sales service and warranty services that provide support to the customers after the purchase of the products. Nike also provides delivery of the products to the customer’s home (Spivack 2015).
(Charter 2017)
Nike VaporMax is both a Shopping Good as well as a Specialty Product. The Specialty Product category can be attributed to the strong brand identity, and special focus of the product on sports performers providing special features to enhance their comfort and performance. The Shopping Good category can be attributed to the high price, quality and value of the product, which requires most customers to have a detailed consideration before purchasing it, comparing it with other Brands and products to understand if the show is the most suitable for them. This shoe is not intended to be bought compulsively or without a prior consideration (Vaneeckhaute et al. 2017; Burns et al. 2014).
Birth: This is the stage where the product would be designed and manufactured and marketed. It marks the beginning of the life cycle of the product.
Growth: This is the stage where the product actually hits the market through the distribution channels, thereby leading to the growth in the market of the product.
Maturity: This is the stage where the customer purchases the product and thus the products actually mature to address the brand’s objectives.
Decline: This stage marks the reduction in the use of the product due to wear and tear, and signifies the completion of the life cycle.
Revival: This is an additional stage, where the value of the product can be revitalized through reselling of the used product at a lesser price.
The brand positioning of the product includes the main attributes that are featured in the VaporMax shoes, which includes its state of the art design and crafting, top quality materials, durability of the shoe, high reliability of its performance (comfort and support) as well as the pricing of the shoe. The high end price implies the focus market of sports professionals and athletes, the high quality of the shoe places the product at the top of the shelf category. Both these attributes helps to brand the product to be superior to its competitors (Kozinets 2017).
VaporMax is priced from AUD 190 to AUD 225 (store.nike.com 2018).
Price for Adidas UltraBoost: AUD 260 (adidas.com.au 2018).
Price for Converse All Stars: AUD 130 (converse.com.au 2018)
The brand utilizes a premium pricing strategy to support the premium quality and brand image of VaporMax. The VaporMax shoes start from AUD 190 which can psychologically attract the customers in a better way though its odd price (Flynn 2015; store.nike.com 2018).
The two main factors that are affecting the price of the product are quality and the main market of the product. The high quality materials and innovative technology implies a greater cost of production, while the target market of sports professionals also result in the higher marking price, showing its exclusive nature (Flynn 2015).
The advertisement (added in the appendix) was posted on The Guardian on July 22nd, 2018. The advertisement introduces the readers to a new lighting technology used in Nike VaporMax and Vaporlight shoes for the elite competitive market (theguardian.com, 2018).
The main promotional message given in the advertisement was the new technology that introduces lights to the shoe to attract an elite and trendy customers, and boasts of its technological advances in footwear. The article mentions that the shoe lives up to the hype it created regarding this new technology and gives superior performance, and asks whether such technology should be allowed in sports (theguardian.com, 2018).
The execution strategy for the advertisement really seemed to be effective. The advertisement takes the point of view of a critique, suggesting that the technology used by the brand being too ahead of its time, thereby implying that it was indeed a top of the line quality, thereby adding to the publicity of the shoe (Aguirre et al. 2015).
The objective of the advertisement was to support the hype around the brand, and improve its market, which it was able to do successfully by supporting two important facts. Firstly the advertisement mentioned that the product was able to live up to the expectations and secondly the product was too good to be used in the sports arena due to its high technology. Both of these aspects have been utilized in the execution of the advertisement (Kingsnorth 2016).
Additional promotional elements utilized in the advertisement include the highlight on the quality of the product, the superior designing of the shoe that makes it top notch. The advertisement also highlights the story of the Olympic Athlete Kara Goucher who missed the Olympics qualifiers due to shoe technology, thus implying that a better technology in sports shoes could have prevented such a mishap (Angell and Kraemer 2017).
The advertisement was intended as a pull strategy to attract new customers to the product. The strategy focused on customers who are serious about the technology in the shoe design and on the performance of the product (Parnellet al. 2017; Sethi et al. 2018).
The VaporMax are available both online as well as retail stores. Thus it uses both direct as well as indirect channels for the marketing of the products. Direct marketing is done through the official websites, advertising campaigns and retail merchandising. The organization also indirectly markets the products through its corporate social responsibility strategies such as holding sports events and through sponsorship of sports persona such as Michael Jordan (Park et al. 2018; Salari and Backman 2017; Abdallah 2015).
The distribution of the product is extensive as it involves online stores, retail stores and sports shops that sell the Nike VaporMax shoes apart from the company’s official site and company owner stores. Nike has a global network of vendors and outlets where the product is easily available thereby suggesting a very intense distribution system. It is also very suitable method considering the costs of marketing and the hype that was developed for the product (Park et al. 2018).
The company utilizes both retail stores and online stores to sell the product. The retail sources can allow the company to utilize retail partners for selling the products through channel intermediates. The online stores help the customer to buy directly from the company’s website thereby reducing the expense of the intermediate channels (Jacobs 2015).
The first recommendation that can be provided for the product is the inclusion of lace-less shoe design which can help athletes with disabilities (such as cerebral palsy) to wear the shoe more easily. The design can also prevent tangling of the laces and changing of the laces. This can also make the shoe more comfortable to wear.
The shoe can also have an inbuilt microprocessor chip, powered by a battery that recharges from the force and kinetic energy of the shoe. Similar technologies have been implemented in several sports watches that charge it automatically. The microprocessor chip can process information such as the speed and distance covered, which can be linked wirelessly to a computer and help the athletes to monitor their own performances (Ellis 2017).
Conclusion:
NikeVaporMax is a top of the shelf sports shoe that is extremely lightweight, sturdy and comfortable, and provides a state of the art design and technology in footwear. The product represents Nike as a global leader in sportswear, and is supported by excellent marketing of the product. Even though the product has many competitors, VaporMax stands ahead of other shoes in terms of its price and quality. The materials used in the product are also of very high quality, and it ensures better durability and comfort for the user. Proprietary technologies such as Flyknit, Nike Outsole, Integrated Rubber Pods and Vapor Max ensure that the shoe is not only lightweight and comfortable, but also provides adequate support. However, the product still has scope for further improvement in terms of the durability of the flyknit design, shoe tongue and air cushions. The product still has managed to overcome its competitions in spite of such limitations, showing that the marketing of the product has been largely successful. The product mainly aims towards the sports market and the target customers mainly being athletes and sports personnel. The brand is well positioned in the market, and through sponsorships to famous sportsman like Michael Jordan has ensures success of the product in the market. Overall, Vapormax proved to be a viable product for Nike and helped to further its brand image and brand value in the current market.
References:
Abdallah, M., 2015. Indirect Marketing through Influencers on Social Media: Comparing Faceebok paid advertisement services to advertisement by influencers on social media.
adidas.com.au, 2018. Ultraboost. Retrieved on August 31, 2018. From: https://www.adidas.com.au/ultraboost
Aguirre, E., Mahr, D., Grewal, D., de Ruyter, K. and Wetzels, M., 2015. Unraveling the personalization paradox: The effect of information collection and trust-building strategies on online advertisement effectiveness. Journal of Retailing, 91(1), pp.34-49.
Angell, R.L. and Kraemer, J.R., International Business Machines Corp, 2017. Automatically generating an optimal marketing strategy for improving cross sales and upsales of items. U.S. Patent 9,685,048.
Brohi, H., Prithiani, J., Abbas, Z., Bhutto, A. and Chawla, S., 2016. Strategic Marketing Plan of Nike.
Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services framework. Ecosystem Services, 17, pp.99-111.
Burns, A.C., Bush, R.F. and Sinha, N., 2014. Marketing research (Vol. 7). Harlow: Pearson.
Charter, M., 2017. Greener marketing: A responsible approach to business. Routledge.
Childs, M., & Jin, B. 2018. Nike: An Innovation Journey. In Product Innovation in the Global Fashion Industry (pp. 79-111). Palgrave Pivot, New York.
Christensen, B., Marvin, W. and Litchfield, P.E., Reebok International Ltd, 2014. Sole And Article Of Footwear Having A Pod Assembly. U.S. Patent Application 13/849,395.
converse.com.au, 2018. All Star Chuck Taylor. Retrieved on August 31, 2018. From: https://www.converse.com.au/
DeAlmeida, M., Nike Inc, 2017. Shoe midsole. U.S. Patent Application 29/551,537.
Ellis, F.E., VARSGEN LLC, 2017. Microchip with faraday cages and internal flexibility sipes. U.S. Patent 9,568,946.
Flynn, P., 2015. Nike Marketing Strategy: A Company to Imitate.
Jacobs, R.R.L., 2015. Methods for predicting inventory levels in a segmented retail supply chain (Doctoral dissertation, Massachusetts Institute of Technology).
Kast, M., Knight, D.P., Parsons, M.A. and Saxby, D., Sentient Energy Inc, 2016. Energy harvest split core design elements for ease of installation, high performance, and long term reliability. U.S. Patent 9,229,036.
Kingsnorth, S., 2016. Digital marketing strategy: an integrated approach to online marketing. Kogan Page Publishers.
Kozinets, R., 2017. Brand Networks as the Interplay of Identities, Selves, and Turtles: Commentary on “Interplay between intended brand identity and identities in a Nike related brand community: Co-existing synergies and tensions in a nested system”. Journal of Business Research, 70, pp.441-442.
Mahdi, H.A.A., Abbas, M., Mazar, T.I. and George, S., 2015. 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), pp.167-177.
news.nike.com, 2018. NIKE, Inc. Reports Fiscal 2018 Fourth Quarter and Full Year Results. Retrieved on August 31, 2018. From: https://news.nike.com/news/nike-inc-reports-fiscal-2018-fourth-quarter-and-full-year-results
nike.com, 2018. Nike Air VaporMax. Retrieved on August 31, 2018. From https://www.nike.com/us/en_us/c/innovation/vapormax?ref=https%253A%252F%252Fwww.google.com%252F
Ormsby, S., Nike Inc, 2018. Shoe midsole with translucent rainbow color appearance. U.S. Patent Application 29/610,905.
Pandey, B.C., 2017. Nike Inc-Complete Analysis: SWOT, PESTLE and Marketing strategy. BookRix.
Park, T., Paudel, K. and Sene, S., 2018. Sales impacts of direct marketing choices: treatment effects with multinomial selectivity. European Review of Agricultural Economics, 45(3), pp.433-453.
Parnell, J.A., Acikdilli, G. and Doyle, J.D., 2017, September. Nonmarket strategy, marketing capabilities, and marketing strategy in Turkey. In British Academy of Management (BAM) 2017 Conference Proceedings, UK (pp. 5-7).
Salari, R. and Backman, A., 2017. Direct marketing of parenting programs: comparing a promotion-focused and a prevention-focused strategy. European journal of public health, 27(3), pp.489-494.
Seamarks, K., Nike Inc, 2017. Shoe. U.S. Patent Application 29/560,046.
Sethi, A.P.S., Ahuja, I.P.S. and Singla, A., 2018. Shifts Between Technology Push and Market Pull Strategies for Sustainable Development in Manufacturing Industries. In Global Value Chains, Flexibility and Sustainability (pp. 319-331). Springer, Singapore.
Spivack, N.T., ZAMBALA LLLP, 2015. System and method for facilitating transactions of a physical product or real life service via an augmented reality environment. U.S. Patent Application 14/755,553.
store.nike.com, 2018. Nike Store. Retrieved on August 31, 2018. From: https://store.nike.com/us/en_us/pw/vapormax-shoes/126eZoi3
theguardian.com, 2018. Nike’s lightning shoes hint at power of technology to skew elite competition. Retrieved on August 31, 2018. From: https://www.theguardian.com/sport/2018/jul/22/nike-shoes-vaporfly-sport
Vaneeckhaute, C., Lebuf, V., Michels, E., Belia, E., Vanrolleghem, P.A., Tack, F.M. and Meers, E., 2017. Nutrient recovery from digestate: systematic technology review and product classification. Waste and Biomass Valorization, 8(1), pp.21-40.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download