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Marketing Mix (4ps) Analysis Of Nike
Introduction
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The marketing mix is an interesting and important analysis to determine the right product for selling at the right place with the right promotion at the right price. This report is going to analyse the Marketing mix of a footwear company, Nike. The company sells shoes, apparel and other equipment and by which it gained significant market revenue. In this report, the 4P marketing mix will be analysed to determine the strategies for product, price, place and promotion of Nike.
Product
The company focuses on the new variants of its traditional products to attract new customers. Although it is a footwear company; however, Nike focuses on clothing and other accessories as well. The accessories include bottles, dumbbells, bags, sunglasses and many more. These products along with shoes and clothes come under three broad product mixes; such as Apparel, Shoes and Accessories. Reports suggest that this company invests in their research and development (R&D) to develop its existing products (nike.com 2022a). Shoes are the key product mixes of Nike and different variants are introduced to the customers; such as tennis shoes, running shoes, cricket shoes, football spike shoes and many more. Clothing includes shorts, yoga pants, jerseys, sunglasses and so on. Accessories include Hurley, Converse and Air Jordan. This product mix requires the right price at the right place with the right promotion for capturing the market.
Price
The price mix analysis is done for both generating sales and gaining market share. The pricing strategy for those products can be “Premium pricing strategy” which is also known as skimming. It will generate significant market sales if a particular segment of customers is targeted. The customer segment will purchase the product at a premium price when their demands will be met (Tarasovych and Vlasenko 2020, p. 26). Moreover, setting a premium price at the initial place will allow the company to have a space for a price reduction if the sales are not generated. Therefore, the price reduction strategy by understanding the sales rate will generate more sales in return.
Another pricing strategy is “Value-based pricing strategy” or “Neutral pricing strategy" which is achieved by understanding the opinion of customers. Apparently, the economic value of the Nike product is considered before setting the conditions (Figure 1).
Figure 1:
(Source: Self-developed)
Place
Nike products are sold mostly at the retail stores, and building retail stores near the selected customer segments generate more sales. For example, there is a great chance the products will attract customers in the urban area, beside playgrounds and stadiums. According to Srinivasan and Adaro (2020, p. 5), geographic location influences sales. Moreover, designing the stores will influence customers to explore new innovative products. Most importantly, distribution channels in the urban area will generate sales more than in the rural area because the company makes a valued product and follows a premium price strategy. Neutral pricing and price reduction in rural areas will also not generate significant sales. Medium size enterprise (MSE) of Nike has a positive impact on the business as it allows the retailers to understand customer needs (Hansen and Bøgh 2021, p. 1).
Promotion
The promotion of sales has a positive impact on the volume of sales. Moreover, the company builds MSE with brand promotion to improve brand loyalty. Reports suggest that advertising increases sales (Nguyen et al. 2020, p. 10). Advertising to target the viewer's feelings and emotions has a significant possibility to catch the market (nike.com 2022b). The below figure 2 shows the advertisement of Nike which targets human emotion through a famous tennis player, Serena Williams.
promotion mix for Nike to target emotions and feelings of customers
(Source: nike.com. 2022)
Other promotion strategies include providing coupons and price discounts (Amanah and Harahap 2018, p. 100). Apart from those, Nike has direct marketing and personal selling mix through which they train their store retailers to guide their customers for buying the right products. Moreover, through this promotion mix, they motivate their customers to buy certain other products also.
Conclusion
The report has described the 4P marketing mix of Nike where strategies for pricing, product mix, place mix and promotion mix have been analysed by researching their market strategies and other available studies. Products are clothes, shoes and other accessories, and these need a place in the urban locality for gaining more sales. MSE retail stores are advantageous as it helps the retailers to understand customer needs through close communication. Moreover, following both neutral and premium pricing strategies help to gain consumer interest when particular customer segments are targeted. Advertisement to target viewers' emotions and providing offers/coupons influence the customers to buy a threshold number of products.
References
- Amanah, D. and Harahap, D.A., 2018. Examining the effect of product assortment and price discount toward online purchase decision of university student in Indonesia.JurnalManajemen dan Kewirausahaan,20(2), pp.99-104.
- Hansen, E.B. and Bøgh, S., 2021. Artificial intelligence and internet of things in small and medium-sized enterprises: A survey.Journal of Manufacturing Systems,58, pp.362-372.
- Nguyen, N.T., Zuniga, A., Lee, H., Hui, P., Flores, H. and Nurmi, P., 2020. (m) ad to see me? intelligent advertisement placement: Balancing user annoyance and advertising effectiveness.Proceedings of the ACM on Interactive, Mobile, Wearable and Ubiquitous Technologies,4(2), pp.1-26.
- Nike.com. (2022). Homepage. Available at: https://www.nike.com/in/ [accessed 21 February 2022]
- Nike.com. (2022). Serena Williams. Available at: https://www.nike.com/in/w/serena-williams-a0o00 [accessed 22 February 2022]
- Srinivasan, K. and Adaro, L.E., 2020. Effect of Marketing Mix Strategy on MSE? s Sales performance-Gomo region, Ethiopia.
- Tarasovych, L. and Vlasenko, O., 2020. MARKETING PRICING STRATEGIES IN B2B AND B2C MARKETS: THEORETIC EXPLICATION.AGRICULTURAL SCIENCES, p.25.
Marketing Mix (4ps) Analysis Of L'oréal
Introduction
L'Oreal is an international brand of beauty and Cosmetics Company that has its main headquarter in Paris. The company is famous for its excellent quality products that effectively meet the needs and requirements of consumers. This well-known company has created high-quality products through its vast array of research and development. This includes toxicological development, pharmacological development, dermatological screening and tissue engineering.
Product
L’Oreal has different products such as "cosmetics", "skincare", "hair colour", "make-up", "sun protection", "hair care", "perfumes" etcetera. These products have high quality and have been tested in the company’s laboratory before selling in the market. The company has different types of products for each makeup section (Maksudunov and Avci, 2020, p. 225).
| Cosmetic body part |
Product |
| Eyes |
eye-liner, mascara, kohol, eye-primer, eye-shadow etcetera |
| Lips |
Lip gloss, lipstick, lip liner, lip primer etcetera |
| Face |
Different ranges of foundation, skin primer, blusher, face cream, moisturiser etcetera |
| Nails |
Nail paint, Nail paint remover, nail primer etcetera |
| Hair |
Different types of shampoos according to hair type, hair oil, serum, conditioner, spray etcetera. |
| Body |
Moisturiser, Perfume, Body spray, body oil, body butter etcetera |
Table 1: Different products of L’Oreal
(Source: Self-Created)
The company also contains different kids products and specific chemical free products such as herbal and “ayurvedic products”. L’Oreal has launched different products by combining with companies such as “VLCC” and “Biotique”. The company products are all high-quality products and have different price ranges from expensive to affordable. The products are created for all skin types and individuals with all economic backgrounds (Gassama, 2020).
Price
The company has implemented consumer specific price distribution policies to gain high revenue. As the majority of the company's products are very high-end and have a wide range of benefits, the prices are quite expensive. However, a company requires to focus on consumers of every economic background in order to gain high revenue. Therefore, L'Oreal has created two different policies that are “Premium pricing” and “Value added Pricing”. The premium pricing is typically applied in the high-end products and the value added pricing is applied in other products (Meryem, 2020). By following this way the company can gain the market of consumers belonging to every financial background. L'Oreal also provides specific offers and discounts in their "value added pricing" in order to maintain the re-stocking and selling. This strategy has resulted in a high revenue and profit gain for the company.
Place
The company has opened its store in more than 130 countries and have opened “research and development” centres in countries such as “France”, “Japan”, “USA” etcetera (Reza, 2020). The company products are clinically tested in these laboratories before shipping to different countries. The organisation has implemented various “Supply channels” and “distribution policies” around the world and have opened new stores in different locations. Moreover, L'Oreal has also started an e-commerce business and are shipping their products via both online and offline marketing. This strategy has boosted the company's revenue and has made this company the “largest company for personal care”. The organisation has implemented various experienced and highly skilled employees in their salon that works as professional skin and hairdresser (Palet al. 2020). The organisation has distributed their products in different beauty salons and shops in the United Kingdom to gain more revenue and popularity (Golubkina, 2019). The use of customer attracting products is the main marketing strategy of the company.
Promotion
The company has implemented different slogans for their market advertising strategy. One of the major company slogans “Because We are worth it” has created immense popularity in consumers due to the personal care and affection it showed. L'Oreal has promoted its products via television advertisement, social media campaigns, hoardings, and global methods (Al-Shahmani, 2018).
Market promotional strategy of L’Oreal
One of the major promotional strategies of the company is the use of “former miss world Aishwarya Rai Bacchan” as their brand ambassador and international face. The company has implemented different promotional strategies such as “free product distribution”, “Salon product distribution”, “customer attracting offers” etcetera. These marketing and promotional strategies have helped the company in becoming an international sensation (Ahmed, 2020).
Conclusion
L'Oreal has created international fame and popularity through its globally accepted high-end products. The use of an effective marketing strategy and customer attracting popularity has helped the company in gaining popularity. The organisation have created beauty salons and products for both genders and have implemented market strategies to attract every individual regardless of their background, age, gender or nationality. The marketing mix analysis helps to determine the specific policies that this company has implemented to get both national and international fame. L'Oreal has won the heart of the majority of cosmetics lovers through its high quality, affordable and beneficial products.
References
- Ahmed, M., 2020. Customer satisfaction and marketing mix of MAGGI 2mn Noodles.
- Al-Shahmani, H., 2018. The impact of the emerging trends on the makeup market in Europe.
- Golubkina, V., 2019. Ratio of direct and indirect distribution in the global FMCG sector by the example of beauty care products of Henkel, L'Oréal and Unilever in Russia and Brazil.
- Pal, A., Panda, P. and Mukkamala, S., 2020. Recent Trends of Cosmetics in India: A Review on Marketing Strategies and Consumer Behaviour.International Journal of Management (IJM),11(7).
- Reza, M.H., 2020. Marketing Strategy and Sustainable Plan of Unilever.
- Meryem, D.E.M.N.A.T.I., 2020. GREEN MARKETING: A STRATEGIC TOOL FOR THE ATTAINMENT OF SUSTAINABLE DEVELOPMENT IN MOROCCO (Doctoral dissertation, KDI School of Public Policy and Management).
- Gassama, M., 2020. International Marketing Research: A Marketing Strategy Case Study with Inari Arctic Cosmetics.
- Maksudunov, A. and Avci, M., 2020. The color of the future in marketing is green. Contemporary Issues in Strategic Marketing, pp.225-254.
