Observations – Talking of the International Finances, with the slow down in the world economy, Nike shares came down as the consumer spending decreased multi folds. The indexes fell as the corporations released their earnings reports leaving the investors in a shaken state. The analyses reports does state that its still going to take time for the Nike shares to be affected with its reach, brand name and the increasing cash flow. III. Alternative Solutions: Marketing auditors have conducted a thorough study on the marketing strategies of Nike’s Businesses.
With the economics changing drastically, the main issue was whether Nike Incorporated should focus on only the domestic market or get to know the considerations of the international markets as well. Hence if the economy gets into recession, then the sales of Nike, their promotional and marketing strategies also gets affected. Majority of Nike’s sales are dependent on the multinational customers with the international operations touching 36. 06 of the total revenues.
Solutions need to be analyzed with respect to the competition, tactics and the marketing strategies adopted by Nike and checking on if they meet the objectives. Competition: Nike has to fight the fierce competition that exist with Adidas, Reebok, Fila, Timberland,
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Tactics: Nike’s distinctive and unique tactics need to be in the area of marketing, brand power and awareness of the brand. Research showed that the tactics should not be easily replicated by the competitors. Since Nike is becoming a part of the Americas and world culture, replication and duplication of brand power becomes difficult in this case which is an advantage for Nike which it capitalizes on its slogan and the trademark. Marketing Product: Checking on the product line addition or deletion, what changes require to be incorporated in the present technique of product handling has to be viewed by Nike.
Marketing Price: Vertical integration method of pricing was proved to be effective for Nike where by the company owns their participants at every channel levels there by cutting on the costs and influencing on the pricing modes. Marketing Place: The queries that bother Nike are whether they need to add on more channels to reach their target. Addition of licensees and subsidiaries, independent distributors in the international markets is presently being carried out, but independent distributors have no pressure of the local adjustments being made in the local place as the 4Ps are fully taken care by the distributors.