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Executive Summary This report is about to show a Marketing plan for Nike’s products in Jordan for five years

March 17, 2019 0 Comment

Executive Summary
This report is about to show a Marketing plan for Nike’s products in Jordan for five years; with reference to older offerings the report shows the plan that how can Nike offer new products in the market. With respect to this the report contains comprehensive marketing plan components including company analysis (Nike’s current and future status), situation and market analysis and competitors analysis; the report shows the Nike’s objectives and marketing strategies in terms of its 4ps that is it is shown that Nike can offer and increase its product range by offering other related products as women footwear and women apparel to its customers and set value-based pricing strategy accordingly, and for new offerings it can increase its other media other than commercials that is it can focus more campaign that can touch the local community, using the social media to promote its new products, the financial budget of this marketing plan has been discussed which is been forecasted by reviewing Nike’s previous years revenue and marketing expenses figures. Also execution plan has been shown which is thoroughly depends upon Nike’s senior management and team work which would make its objectives possible new offerings.
Nike Overview

Nike, Inc., formerly (1964–78) Blue Ribbon Sports, American sportswear company headquartered in Beaverton, Oregon. It was founded in 1964 as Blue Ribbon Sports by Bill Bowerman, a track-and-field coach at the University of Oregon, and his former student Phil Knight. They opened their first retail outlet in 1966 and launched the Nike brand shoe in 1972. The company was renamed Nike, Inc., in 1978 and went public two years later. By the early 21st century, Nike had retail outlets and distributors in more than 170 countries, and its logo—a curved check mark called the “swoosh”—was recognized throughout the world.
From the late 1980s Nike steadily expanded its business and diversified its product line through numerous acquisitions, including the shoe companies Cole Haan (1988; sold in 2012) and Converse, Inc. (2003), the sports-equipment producer Canstar Sports, Inc. (1994; later called Bauer and sold in 2008), and the athletic apparel and equipment company Umbro (2008; sold in 2012). In 1996 the company created Nike ACG (“all-conditions gear”), which markets products for extreme sports such as snowboarding and mountain biking. In the early 21st century Nike began selling sports-technology accessories, including portable heart-rate monitors and high-altitude wrist compasses.
Part of Nike’s success is owed to endorsements by such athletes as Michael Jordan, Mia Hamm, Roger Federer, and Tiger Woods. The NikeTown chain stores, the first of which opened in 1990, pay tribute to these and other company spokespersons while offering consumers a full range of Nike products. In the 1990s the company’s image briefly suffered from revelations about poor working conditions in its overseas factories. (Britannica, 2018)

Nike Status in the Emerging Markets

According to a recent evaluation of emerging markets by Credit Suisse in its 2015 Emerging Markets Consumer Survey, Nike has extended its market share in the country where 51 percent of the population is under the age of 25 (Wilson Center’s Study of Winter, 2011)

the rising influence of developing markets like the Middle East is hard to deny with Saudi Arabia leading the area.

Nike started to invest more in this region, as they proved by launching the Pro-Hijab, this new innovation that Nike spent a year developing this product, adding to that the big campaign followed the launch to promote the idea that Nike is taking the Middle East which is a Muslim dominant countries into their high consideration as an area of development with a high potential of growth.

Figure 1 Nike Vs Adidas in Emerged Markets
Future marketing Orientation:
Nike has already planned a head to expand their marketing share by setting a marketing revenue by 2020 for a $5o Billion, the middle east is considered one of their main focus areas for market share expansion as per their new Pro-Hijab strong campaign that took a part showing a five female Muslims athletes raising the awareness with a slogan “What will they say about you”.
Nike futuristic vision includes the women’s apparel segment and consider it a key driver to gain more loyal customers specially with targeting the Muslims country with their innovative Pro-hijab product.

Customer behavior
Gender Behavior Comparison:
Global studies have shown that there are some similarities in shopping behaviors between men and women specially with the increasing ratio of women joining the workforce all over the globe. For the differences those studies show that both phycological and emotional factors that affects the female shopping behavior and decision. (Dr. PK Sharm, 2017)

Men Women
1. Men look on shopping as a mission Women take it as a casual exercise
2. They locate the target They can plan but never formulate.
3. Bachelor men generally shop alone or with same age group and married can shop with their spouse. Women can shop with anyone and everyone.
4. They hardly use trial room or if use then follows only there target. They enjoy taking several outfits into the trial room to try on.
5. They try to complete their shopping as quickly as possible. They will consume plenty of time. Sometimes whole day just shopping
6. They avoid window shopping They love window shopping

7. Men routinely shop at the same store Women are more inclined to shop around for the best buy
8. Men appear not to ask for assistance They generally ask for assistance
9. Not stick to a definite budget Definite budget and believe in good deal.
10. Not stick to a definite budget Women favored almost everything they dreamed off. Always try to bargain
11. Limit price-comparison shopping Lots of price comparison
12. As they finished with shopping, they
immediately try to leave the shop After finished with shopping, they will take a round and look around if something is useful.
Figure 2 Shopping Habit of Male and Female
The result of the study shows the gender-based behavior, and its importance of understanding the behavior for each gender to design a marketing plan addresses the targeted segment.as female customers tends to be attracted to the visuals, to drive their shopping motivation, the window show is one of the first aspects to focus on. The professional help by the experienced sales person would be also a key driver for females to buy the best suitable product for their real needs.
Another study showing the differences between each gender behavior in the shopping malls. men ; women: a comparison of shopping mall behavior (Haiyan Hu, 2017). Its obvious that the shopping malls is one of the most preferable places for shopping, as the concept of shopping mall are evolving from being just a place for shopping, but also to include other activities that covers most the age range of the mall shoppers.
One of the study conclusions regarding the attitude toward shopping in general, they found that more that 50% of the women involved in the study tends to respond emotionally for shopping not only to fulfilling purposes.
Shopping Malls affect Consumer Behavior:
A Jordanian study about the effect the shopping mall experience on the customer behavior (Al-Khateeb, 2009), the study stated that more than half of the mall visitors are females, the highest percent for the ages between 20-40 yrs. The study showed that the marital statues played a significant rule as it showed 57% of the mall visitors are married, one of the main factors is the monthly average income which was 600~1000 JD.
General Customer Behavior in Jordan:
Due to the available studies in the Jordanian Market, the shopping mall experience has a huge effect on the customers, as they changed the concept of shopping for purposes into more fun and socializing experience, that will be reflected as more mall foot traffic, which can lead into more sales for not only the essentials, but it can lead to raising sales in the more luxurious products.
The shopping mall in Jordan has already given themselves a trait according to the targeted customers and the different average income level, for example City Mall trait is a family mall with most of the affordable brands for most of the available products which might be targeting customers with monthly Avg. income 700~900, a high end brand trait mall, Taj mall which have between there shopping floors the designer brands that attracts a higher income category.

Competition
Nike main competitors according to Raed Dabbabneh (Nike branch manager in Jordan) is Adidas, Sketchers, Sports forever and Go Sport.
As it’s known worldwide, Adidas is the main competition for Nike, by having the same targeted age for customers and a same product portfolio Adidas takes a major roleplay in the footwear market competition, and it’s not any difference in the Jordanian market, with 12 branches spread all over the main shopping areas in Amman, gives Adidas the place and distribution advantage against 3 Nike branches.
As per Adidas world wild marketing strategies focusing on promoting Lionel Messi as all time favorite player, with a country that football considered the most popular game, creating a customized Leo Messi line will drive many of the young generations who is a fan of Messi or a member of FCB to be eager to have some of the product in his customized collection.
PEST Analysis
Political Factors
• Jordan is strategically positioned at the crossroads of the Middle East-North Africa (MENA) region, centrally located between Europe, Asia, and Africa
• 2001, it became the first Arab country to sign a Free Trade Agreement with the United States. The U.S.-Jordan Free Trade Agreement (FTA), which came into full effect in 2010, continues to create advantages for U.S. exporters, who are able to sell high-quality products at more attractive prices, as tariff barriers on the majority of goods traded between the United States and Jordan have been eliminated.(Services, 2013)
• The government amended the tax system for 2013 and imposed a special tax on clothing at 20 percent
Economical
• According to the latest update of the department of statistics in Jordan, the population is around 10.2M, Gross national income: 84.9 billion, Gross national income per capital: 8,980
• The current situation is worrying in terms of higher production costs and higher energy prices affecting the competitiveness of domestic products in favor of foreign goods.
• Private consumption is raising slightly due to the increased number of refugees
• the EBRD’s Regional Economic Prospects report stated, highlighting a positive impact from the government’s programmed to offer citizenship to foreign investors under certain conditions, an improved global outlook and higher confidence stemming from fiscal consolidation.
Social
• the influence of the social media in all its ways has a numerous effect on the local community, and also affected the consumer behavior directly and indirectly by shifting the customers mind to think of the more luxurious products, even on the expense of the essentials

Technological
• as the world-wide trend is becoming keener to have the latest technological innovation, the Youth in Jordan is all about linking their lives in all technological products, Nike innovational portfolio can be a good attraction for this category