<span class="text_page_counter">Trang 1</span><div class="page_container" data-page="1">

<b>FPT UNIVERSITY- CAMPUS HO CHI MINH</b>

<b>GROUP ASSIGNMENT [MKT101]TOPIC:The giant in the shoe industry - Nike</b>

<b>Course:</b>

<b>MARKETING PRINCIPLES – MKT101</b>

<b>Lecture: Đỗ Vũ Thiện Nhân</b>

<b>Group: 1</b>

<b>Name of group memberCode</b>

1. Nguyễn Thành Lộc _SS1810932. Ngô Hà Gia Bảo _SE1728123. Nguyễn Quốc Bảo SE1728504. Nguyễn Lê Nhật Nam _SS18013115. Mai Hoàng Phúc _SS1809696. Nguyễn Lê Khang SS180864

<b>Thành phố Hồ Chí Minh, 6/2023</b>

</div><span class="text_page_counter">Trang 2</span><div class="page_container" data-page="2">

<b>TABLE OF CONTENT:I/ EXECUTIVE SUMMARYII/ COMPANY OVERVIEW</b>

<b>1/ Introduction</b>

<b>III/ Marketing environment analysisIV/ Target customers and PositioningV/ Analysis of the marketing mixVI/ Marketing plan for the next yearVII/ Conclusion</b>

<b>VIII/ ReferencesIX/ Appendices</b>

</div><span class="text_page_counter">Trang 3</span><div class="page_container" data-page="3">

I/ EXECUTIVE SUMMARY

This report provides an overview of Nike, analyzing its company history, marketing environment,target customers, positioning, and marketing mix. The report also discusses Nike's collaboration withDior and its marketing strategies to position the Nike Jordan Dior shoes as a unique and premiumbrand that combines sports and haute couture. Additionally, it examines Nike's marketing mix,including its product offerings, pricing strategies, distribution channels, and promotional activities.The report concludes by outlining Nike's marketing plan, which involves expanding into developingmarkets, strengthening the brand, increasing digital presence, and focusing on product developmentand customer care.

II/ COMPANY OVERVIEW

<b>1/ Introduction: Nike was founded in 1964 as Blue Ribbon Sports by Bill Bowerman, a track and field</b>

coach at the University of Oregon, and his former student, Phil Knight. They opened their first retailstore in 1966 and launched the Nike shoe brand in 1972. By the turn of the 21st century, Nike hadretail stores and distributors in more than 170 countries and its logo. —a curved check mark calledthe “swoosh mark”—is recognized worldwide.

In 2020, Dior Men's leading footwear designer Thibo Denis, and Jordan Brand's VP of Design MartinLotti, embarked on the meticulous process of designing and creating the shoes, with materials they"haven't used before". And launched the special “AJ1 Dior” made entirely in Italy in a combination ofwhite leather and Dior gray, with the Swoosh logo and hand-painted edges. "Air Dior" has also beenapplied to Jordan's familiar Wings logo.

III/ Marketing environment analysis:Nike's micro and macro environment

</div><span class="text_page_counter">Trang 4</span><div class="page_container" data-page="4">

-Suppliers: Nike must build and maintain good relationships with suppliers to ensure stable supplyand product quality. At the same time, the company must also ensure that suppliers comply withstandards and regulations on occupational safety and environmental protection.

-Competitors: Nike goes up against many competitors in the sports and footwear industry, includingAdidas, Puma, Under Armor, and many more. All these brands have to compete fiercely in productdesign and customer acquisition.

-Customers: Nike targets a wide range of customers, from professional athletes to everydayconsumers. However, the consumer market increasingly demands personalization, convenience, andadded value, so Nike must meet these requirements to retain customers.

-Supply Chain Management: Nike needs to manage a complex supply chain. This requires closecoordination with Nike suppliers and partners, tracking and controlling production and shipping toensure product availability and quality.

<b>Macro environment:</b>

</div><span class="text_page_counter">Trang 5</span><div class="page_container" data-page="5">

consumption, and strategy. Factors such as exchange rate fluctuations, economic growth, consumerincome, and market volatility can have a major impact on Nike's revenue and profits.

-Culture, society: Nike is a global company and operates in many international markets. They facedifferent cultural diversity and market power. This requires Nike to understand and respect thecultural factors of each market, creating marketing and product development strategies tailored tothe needs of each market.

-Policies and regulations: Nike must comply with the regulations and policies of the countries andregions in which they operate. This includes advertising regulations, labor regulations, andenvironmental protection regulations. Changes in policies and regulations may require Nike to adaptits manufacturing and business processes.

-Technology: Advances in technology can affect manufacturing, so Nike must keep up with newtechnology trends to improve business efficiency and create groundbreaking products and services.Here is the technology that Nike is using:

Using 3D printing technology: with 3D printing, Nike technology will optimize performance. With thistechnology, Nike can create precise layers of fabric with distinctive textures and textures. The fabriclayers can be optimized to provide durability, friction, and elasticity to the shoe to create comfort forthe user. This improves performance and increases user experience.

Besides, 3D printing technology also saves more time and costs compared to traditionalmanufacturing methods. The 3D printing process takes only a few days or even hours, which saves a

</div><span class="text_page_counter">Trang 6</span><div class="page_container" data-page="6">

to some weeks.

-Developing online shopping channels: developing online shopping channels that allow Nike to reachcustomers around the world. Anyone can access the Nike website and app to shop. Online shoppingbrings convenience and flexibility to customers. They can browse Nike's product catalog, compareprices and quality, and order and pay quickly and easily.

IV/ Target customers and Positioning

<b>1. Consumer behavior.</b>

Why do young people like sneakers?

-Upon receiving this question, many people will surely have the answer "Because I like it" or"Because I feel beautiful". There are many reasons for people to buy themselves a pair of sneakers. Inaddition to the uses of shoes for our feet, it is also fashionable, diverse with designs, eye-catchingdesigns, and color schemes, or are manufactured by famous brands. It could also be from some lovefor sneakers that can't be explained. Along with the strong development of today's sporty trend,sneakers are an indispensable accessory in our collection of fashionistas. Along with a healthy, trendyappearance, sneakers ensure the most comfortable, comfortable, and confidence for the wearer.

-Ten years ago, it was unthinkable for someone to spend $10,000 just to own a pair of sneakers.Now, however, it's possible. Statistics from consulting firm Bain & Co. show that while sales in thehandbag category only increased by 7%, in the global sneaker category, the figure reached 3.5 billioneuros (up 10%) in 2018.

-In recent years, sneakers can be considered the most popular fashion trend and it is on the verge ofstrong development along with the rise of Gen Z – a group of dynamic, young customers who likecreativity and breakthrough. Therefore, brands are increasingly innovating in designs to attract moreyoung customers. Not only that, middle-aged customers also love sneakers because wearing sneakerswill make them a few years younger and they feel like they are returning to their youth.

</div><span class="text_page_counter">Trang 7</span><div class="page_container" data-page="7">

Mexican 66 line is associated with the legend of Bruce Lee and also the favorite shoe of British PrinceWilliam, the Bata Converse shoe was used by rock legend Kurt Cobain of Nirvana in his final days,Nike's Air Jordan It is still as popular as it was 20 years ago because it once belonged to America'sgreatest basketball superstar Mike Jordan, and the Adidas Superstar line included in the song MyAdidas by the famous rapper DMC. This is an immeasurable added value in money, creating extremelyunusual values and emotions for buyers– especially loyal fans of brands.

<b>2. Customer segmentation.</b>

-The Nike Jordan Dior shoe is a product of sneakers designed by Dior and Nike. This shoe issegmented into high-end shoes and has a high selling price. The actual price of Jordan Dior shoesdepends on many factors such as material, model, size, and especially the uniqueness of the product.

-The difference is that the Dior x Air Jordan 1 was only sold in 8,000 units. Of these, 5,000 pairs havebeen prioritized for high-end customers. So, to spread out the remaining 3,000 pairs in a fair way,Dior thought of asking users to leave personal information on the pre-order website to conduct alottery.

-That lucky draw helps ensure fairness for all buyers. However, in another aspect, that form ofissuance also increases the competition of buyers, when everyone expects to be lucky and win thespoils. They didn't even wait all day, or wait in long lines before dawn just to hear their namesannounced.

- Dior has made shoes that have attracted the attention of the fashion world now the focus of theentire media thanks to their chance sales style. Every move regarding how to own the Dior x AirJordan 1 was in the news, and the density of information became dense, so the potential customersalso increased significantly.

</div><span class="text_page_counter">Trang 8</span><div class="page_container" data-page="8">

on the feet of a series of famous stars and weigh in with the fashion industry. Typically, Travis Scott isthe most influential and talented male rapper in the hearts of young people's fans. Or like "vampire"Robert Pattinson. The most outstanding is the photo of Kylie Jenner, the youngest female billionaire inthe world showing off her slim figure with a pair of comedies.

- Luxury fashion house Dior's collaboration with Nike in mid-2020 strategically targets Gen Z andGeneration Millennium, who are less attracted to Dior's designs. However, the combination with Nike– a popular sports fashion brand has created a big bang.

- Nike's main goal when partnering with Dior to produce shoes is to create a unique combination ofsports and haute couture while enhancing value and capturing customer attention. Here are somespecific goals Nike can aim for in the process:

- Create unique products: Nike and Dior's main goal when co-manufacturing shoes is to createbreakthrough and unique products. This can include the use of premium materials, unique designs,and special details to set it apart from conventional products.

- Combining sports and fashion: Nike and Dior collaborated to create a unique combination of sportsculture and haute couture. The goal was to bring contrast and appeal by combining Nike's sportyelements with Dior's style and elegance.

- Enhance brand value: By partnering with a prestigious fashion brand like Dior, Nike hopes tostrengthen its brand value. This combined product is seen as a symbol of the elite and the new in theworld of sports and fashion.

- Create the effect of creating expectations and expectations: Limiting the number of products andcreating rarity is also Nike's goal when partnering with Dior. This contributes to creating expectationsand expectations on the part of customers, creating interest and appreciation for the value of theproduct.

</div><span class="text_page_counter">Trang 9</span><div class="page_container" data-page="9">

combination, enhance brand value, and create expectations and expectations from customers.

- Product limits: Jordan Dior creates limited products, contributing to the brand's rarity anduniqueness. Product limitations also create expectations and expectations from customers.

- Respect for history and values: Jordan Dior creates a fresh combination and retains consistency withthe values and history of the two original brands. Jordan Dior products often carry elements ofcelebration and tradition from both Air Jordan and Dior.

- Unique Marketing Strategies: Jordan Dior uses unique marketing strategies to attract attention andcreate expectations. For example, the organization of an exclusive product launch event usescelebrities and celebrities to promote the brand.

- Premium value: Jordan Dior positions itself as a premium, worthwhile, and unique brand. The costof Jordan Dior products is usually higher than conventional products of both original brands.

Overall, Jordan Dior has positioned itself as a brand that combines sports and haute couture with itsrarity and uniqueness, and respects the historical values of both brands.

V/ Analysis of the marketing mix

<b>1. Product</b>

</div><span class="text_page_counter">Trang 10</span><div class="page_container" data-page="10">

product lines, there are usually 3 main product categories: shoes, clothing, accessories andequipment.

- The three levels of Nike’s product:

1. Core Customer Value: Nike aims to provide products that help athletes andindividuals improve their performance, achieve their fitness goals, andenhance their overall sports experiences. This core benefit is centred aroundinspiring and empowering athletes to push their limits and reach their fullpotential.

2. Actual Product:Nike's shoes are designed with advanced technologies such asresponsive cushioning, lightweight materials, and superior traction, all aimedat enhancing athletic performance. Nike's apparel combines functionalitywith style, offering moisture-wicking fabrics, breathable materials, andergonomic designs. The actual products reflect Nike's commitment toproviding high-quality, performance-oriented products that cater to thespecific needs of athletes and fitness enthusiasts.

3. Augmented Product:Nike offers various augmented services and experiencesto enhance the overall customer value. Nike provides customization options,allowing customers to personalise their shoes and apparel. They offer onlinetools and apps for tracking and analysing performance metrics, providinginsights and recommendations for improvement. Nike also has a strong

</div><span class="text_page_counter">Trang 11</span><div class="page_container" data-page="11">

creating a sense of belonging and motivation.

- The company is also providing tennis shoes, running shoes, soccer shoes or basketball shoes.Besides shoes, Nike also produces sportswear, equipment and tools such as hats, socks and bags. Inparticular, Nike has integrated modern technologies into its product lines to improve productefficiency and customer satisfaction, thereby expanding the market to meet customer needs.

<b>2. Price</b>

- Investments in technology make Nike products priced higher than the average. However, Nike stillimplements value-based and premium pricing strategies. High-end or exclusive products will bepriced significantly higher than the market.

- In a value-based pricing strategy, Nike considers consumers' perceptions of a product's value, andthis value is used to determine the maximum price a consumer is willing to pay for that product.

- As for the Premium pricing strategy, Nike positions itself as a leader in the sportswear industry, sothey have priced their products very high to position themselves as a premium brand compared totheir competitors. By collaborating with influencers or famous sports players like Rafael Nadal, SerenaWilliams,... they have established themselves as a premium brand.

<b>3. Place</b>

- Retail store

These retailers are usually controlled by Nike or Vietnam Supersports Vietnam is a Nike retailer. Thesestores are usually located in malls or shopping centers, so they are very accessible to customers.

- Nike online store

Most of Nike's branches around the world are provided with online shopping websites, for example inVietnam it is nike.com/vn/. Customers can visit the website and choose the products they love

</div><span class="text_page_counter">Trang 12</span><div class="page_container" data-page="12">

<b>4. Promotion</b>

Nike will not leave a way to promote its products. The first is advertising, they mainly convey tocustomers the spirit of the brand. Using the motif of the story of heroes conquering enemies, butmade new by Nike when focusing on each person's enemies such as laziness or using celebrity imagesto promote products. For example, they used an image of CR7 to advertise their new football boots.Second, Nike trains its employees to sell as a form of personal selling. Finally, they sometimes applyyear-end discounts to stimulate demand and sell inventory.

VI/ Marketing plan for the next year:

<b>Nike and 5-year goals (2020-2025)</b>

Towards the goal of gender equality, ethnic equality by 2025

Based on the report, Nike has increased the global representation of women in its business to 49.5%,from 48% in 2015, the number of interns in 2020 is diverse. most ethnically by far, with 55% of the310 interns being women and 49% representing racial and ethnic groups.

Nike has set a goal that by 2025, they aim to make up 50% of their global workforce (excluding retailand warehouse employees) and 45% in leadership positions. The company is also targeting 35% ofracial and ethnic representation in the US workforce.

At the end of July 2018, it announced a pay increase for more than 7,000 workers and pledged tochange the way annual bonuses are awarded to employees globally, to address concerns about payequity. and corporate culture.

After 5 years since that decision, inflation has increased and the value of money has decreased, whichmeans that workers or employees working at Nike will gradually lose motivation to work. This leads

</div>