Describe about the marketing regarding to nike, sport apparel company, justify the macro,micro, internal and swot analysis.
Nike has its presence in 190 countries and they are one of the leading manufacturers of sportswear. They are known for the quality of products that they offer to the customers. There are certain countries wherein Nike is not present but those markets are capable enough to attract the potential markets. In this assignment, Nike will explore the opportunities available in Iraq and Bangladesh. Both the countries are different than that of each other and hence, the organization will have to understand the markets individually before they launch the product (Durna 2015).
PEST analysis is one of the best ways to understand the macro environment of Bangladesh and Iraq. The PEST analysis of both the countries is discussed below.
Plenty of multinational organizations are willing to enter Bangladesh as this is one of the strongest economies at this point of time. The PEST analysis of Bangladesh is as discussed below. Political environment of Bangladesh
The political environment of Bangladesh is getting stricter so it is important for the business to understand the laws so that they don’t get into legal complications. Few of the practices in the Political environment which may create an impact on the business of Nike are as follows: –
The economic environment of the nation is defined by the earning capacity of the people in the nation. Few of the facts related to the economic environment of Bangladesh are as follows: -In t
he past, there was a huge inequality when it comes to distribution of income but that is not the situation any more. The inequality of income distribution has reduced and hence, the disposable income of plenty of people has increased in the nation.
The spending patterns of the people in Bangladesh have changed in the recent past. Today, lot of people are working with multinational companies and hence, they have a stable income. This stable income motivates the people to spend on items that are more than just for necessity (Muhi 2013).
The people in Bangladesh are willing to accept change and they are allowing major changes in their lifestyle. This is a positive sign for any business. Few of the practices in the social environment that can create an impact on the business are as follows: –
People in Bangladesh are more open to accept MNCs in the organization as they are willing to work in them and at the same time, they love to buy goods that are manufactured by a multinational organization.
Lot of private schools have entered the Bangladesh society. People are well aware of the fact that education in private school is expensive than that of private school but they are fine to bear with the expenses so that their children can have a bright future (Becerra 2013).
The technological environment of Bangladesh can be considered as growing so Nike will have to make adjustments so that they can grow in this area. Few of the practices that are creating an impact on the technological environment of Bangladesh are as follows: –
Using of internet has increased drastically in Bangladesh. Due to the usage of internet, people are getting huge exposure to what are developments that is taking place in different corners of the world.
The technology that is used for manufacturing and various other processes may not be up-to-date in the nation. The organization which enters Bangladesh can get in their technology along with them, to the nation (Kessler 2015).
The economy of Iraq has started to grow and people are willing to explore the various new things that are available around. The PEST analysis of Iraq is discussed below.
The political environment of Iraq is unstable in Iraq. Nike will have to consider these factors while they would be entering the nation. Few of the factors in the political environment of Iraq which can create an impact on the business of Nike are as follows: –
The economical environment of Iraq is good as people here work in rig, oil refineries and other places that are related to oil processing. Few of the factors of economical environment which can create an impact on the businesses in Iraq are as follows: –
The social environment of Iraq is very cultural as compared to that of any other nation. Few of the factors in the social environment will may create an impact on the businesses are as follows: –
The technological environment in Iraq is improved continuously so that the oil refineries can extract more oil. Few of the factors in the technological environment which will create an impact on the business are as follows: –
Various micro factors will create an impact on the business of Nike in Bangladesh and Iraq. It is important for the business to understand those factors and act accordingly. Various micro factors and its impact on the business of Nike, in Bangladesh and Iraq are discussed below.
Attracting customers is one of the most important things that any marketing plan needs to achieve. It is important for Nike to come up with marketing plans that can attract the customers in Bangladesh and Iraq. Customers in both the nations should be attracted differently because their likes, dislikes and preferences would be different. Attracting people in Bangladesh would be an easy job because people are willing to change their lifestyle. The advertisement should reflect the lifestyle of people so that the people in Bangladesh are motivated and attracted to buy Nike products (Anthonisz 2014).
Attracting people in Iraq will be a tough job because they are not very much comfortable in adopting themselves to western lifestyle. In Iraq, Nike products should be placed as something that is much related to fitness. Women in Iraq would be more interested to buy Nike products as they are willing to explore but they aren’t able to do so because of the societal pressure.
It is important for Nike to hire people in Bangladesh and Iraq so that they can take care of the logistics and also the store operations. In Bangladesh, it would be difficult to meet people as the availability of educated adults is very less. Most of the educated adults are working with other multi-national organizations. Nike can hire and train people so that they can contribute to Nike.
The situation in Iraq will also be similar but in Iraq, people are not willing to take up opportunity in any sector other than that of oil. Good pay is something that will motivate the people to take up employment at Iraq. Nike will have to pay good and at the same time, the employees will also have to be trained (Chou 2014).
Nike need not be much concerned about the suppliers and shareholders as they have a strong base of suppliers and shareholders. Nike can just stock the products rather than that of looking for local suppliers. Nike can get the products from the existing suppliers. Similarly, they have their shareholders in different corners of the world so they need not be concerned by people in Bangladesh or Iraq is willing to make investments in Nike (Hsu 2014).
Media should be used effectively by Nike in both the nations. It is very important for Nike to be in the news for at least for few months from their date of entry in the nation so that people from different corners of the world are aware of the presence of Nike. Internet is one of the best ways by which Nike can reach the target market in Bangladesh. Nike can opt for SEO strategies so that people are aware of Nike and its presence in Bangladesh.
In Iraq, television is one of the easiest ways by which it can reach the target market. Nike will have to come up with creative advertisements that can be showcased on television so that it can reach out to different group of people (Lo 2013).
At this point of time, in Bangladesh and Iraq, there are no direct competitors present. Nike can be rest assured that there won’t be any competitors for next two to three years but this may not be the case always. Looking at the success of Nike in these countries, other countries may also be willing to enter the nation (Liat 2014).
It is very important for any business to understand the strengths, weaknesses, opportunities and threats so that they can survive in the competitive market. Few of the strengths of Nike that will allow it grow in markets like Bangladesh and Iraq are as follows: –
Nike holds good reputation in the market and hence, its entry into various countries becomes an easy task to achieve.
The employees at Nike are dedicated to the goals of the organization and hence, it becomes easy for the organization to achieve what they have planned (Sund 2013).
There are various weaknesses as well in Nike so that needs to understood by Nike and act accordingly. Few of the weaknesses that need to be considered by Nike are as follows: –
In the past, Nike was involved in unethical practices so that they can produce the cheapest possible goods. This has spoiled their reputation in the market. Due to this, many people are still sceptical about buying Nike products (Nomsa 2015).
There are various opportunities which can be explored by Nike so that they can grow further. Few of the opportunities which aren’t explored yet by Nike are as follows: –
There are plenty of countries which don’t have direct Nike outlets and it is merely impossible for Nike to enter all the countries. To start with, Nike can set up their online store so that people can explore Nike before they walk into the store.
Nike should enter developing nations so that they can have their presence in different corners of the world. Nike has its strong presence in India and China but still there are plenty of countries which are unexplored by Nike (Morris 2014).
It is very important for Nike to understand the threats and act accordingly. Few of the threats which need to be understood and then acted upon are as follows: –
In Bangladesh and Iraq, there are plenty of local sportswear manufacturer. They will be giving a touch competition to Nike. It is important for Nike to understand their strength and act accordingly.
The taxation implied on foreign products may increase at any point of time, especially in Iraq as Iraq doesn’t give a warm welcome to the multinationals to enter the nation (Lee 2013).
Nike will have to opt for different entry modes for both the countries. The entry modes that can be tried by the management of Nike are discussed below.
People and government in Bangladesh are more than willing to allow a new organization to enter the countries and hence, the below mentioned market entry strategies can be used by Nike.
Joint Venture is one of the easiest ways by which Nike can enter Bangladesh. Joint venture will reduce the barriers that the organization will face. In this, the organization can form a joint venture with an organization which is currently present in Bangladesh. This will ensure that the other company will be aware of the market situation and hence, it will be easy for Nike to explore the market.
Direct investment would be the second option which can be explored by Nike, if they are not able to find a suitable partner for joint venture. If this mode is opted by Nike then they will have to study the market thoroughly (Promsivapallop 2015).
People and government in Iraq are not much willing to allow multinationals to enter the country so they will have to plan accordingly. Few of the market entry strategies that can be considered by Nike to enter Iraq are as follows: –
Joint venture is one of the ways by which Iraq market can be explored by Nike. They will have to hunt for an appropriate partner so that they can establish themselves stably in Iraq
Exporting can also be considered in the Iraq market. The organization can look for look for sellers who are willing to stock Nike products. The organization can look for malls who will allow a separate section for Nike (Rashid 2013).
It is important for the business to understand the various P’s of marketing so that they can plan their marketing strategies accordingly. The marketing strategies that can be used by Nike in Bangladesh and Iraq are as follows.
|
7P’s |
Bangladesh |
Iraq |
|
Product |
Sportswear |
Sportswear |
|
Place |
Retail and internet |
Retail and local-export |
|
Price |
Cost plus a minimum level of profit method would be used |
Penetration pricing |
|
Promotion |
SEO marketing Television advertisements |
Distribution of samples Television advertisements |
|
People |
Employees Customers |
Employees Customers |
|
Process |
Talking to customer and understanding their likes Showing them the available models If the customer doesn’t like anything then a note of their requirement is made and the same is shared with the management. |
Talking to customer and understanding their likes Showing them the available models If the customer doesn’t like anything then a note of their requirement is made and the same is shared with the management. |
|
Physical Evidence |
Store Hoardings |
Store Hoardings Pamphlets |
(Yu 2014)
Conclusion
It is important for the management of Nike to explore Bangladesh and Iraq so they can understand the expectations of the people in those countries. They should also try to understand the various legal complications that they may encounter while they are trying to enter the nation. Initially, Nike may find some difficulty in establishing themselves but later people will accept as they are also willing to improve their lifestyles.
References
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