Nike's grand strategy is Growth . The company feels the international marketplace (rather than the domestic) is where the majority of growth will be realized in the next five years. Product Differentiation is the product strategy that Nike has utilized and will continue to use as design creativity is one of Nike's core competencies.
International Marketing Nike feels strongly that their biggest opportunities for growth lie in the countries on South Africa, India, Mexico, Peru, Chili, Bolivia, and several eastern European countries. Nike is planning to expand marketing in these areas in the next several years to build demand and distribution systems. Nike also plans to contract manufacture its shoes in several of these countries.
Contract ManufacturingThe use of contract manufacturers is only way in which Nike produces anything. Nike does not directly manufacture anything. Nike provides footwear and apparel designs to it hundreds of ...view middle of the document...
These initiatives are part of a larger program that began when the company established its Code of Conduct in 1992.
Expansion into the Golf and Hockey Markets - Nike has begun to market golf balls and hockey equipment. Aggressive marketing in these areas including the signing of Tiger Woods and the Jersey Logo deal with the National Hockey League, have positioned Nike to sell products bearing their swoosh. Hockey and golf TV viewership has been steadily rising over the last several years and so have golf ball sales and hockey equipment sales. Nike plans to establish itself as a player in these arenas.
Commitment to Marketing through Michael Jordan- Nike has Michael Jordan under contract until 2023 and is planning to expand his subproduct line which already is a major division under Nike. Casual wear with Jordan name will be added and his shoe line continued for the foreseeable future.
Cost Cutting- Nike has cut approximately 350 million in operating expenses in the last 2 years. They have also laid off 1900 workers. Although the bulk is completed, they plan to continue cutting costs for another year. Nike undertook most of these actions in anticipation of a sagging Asian market and changes in consumer buying. Both of which came true to make 98 a very poor year for Nike.
Nike Town - Nike is planning on building additional Nike-Town Superstores in major cities over the next several years. The next to receive a Nike-Town is Denver. It is planned to be opened later in 1999. Nike just completed the 28,000 square foot Nike Town in Coral Gables. These stores feature a motif divided store with video and sound effects in each department. Each Nike-Town sells a full line of shoes and apparel.
Marketing to Women- Nike is stepping up its marketing to young women in an attempt to appeal to a greater share of female consumers. TV and radio advertisements are featuring young female athletes who are competitive, committed to sport, and outfitted with Nike products.