This paper presents a comprehensive marketing plan for a proposed new Nike product: women's skinny jeans featuring Dri-FIT moisture-wicking technology. The plan examines Nike's company background, mission, and core competencies before conducting a full SWOT and industry analysis. It then outlines a market-product focus, including target demographics (women aged 15–50), points of difference from existing jeans brands, and positioning strategy. The marketing program covers product, price, promotion, and distribution strategies, followed by financial data, five-year projections, organizational structure considerations, and an implementation and evaluation framework. The paper argues that Nike's strong brand recognition and existing retail infrastructure give it a meaningful competitive advantage in entering the women's denim market.
Nike is a significant company in the athletic clothing market. While it is most closely associated with shoes, the company also offers other clothing options for those who need and want workout gear, running shorts, and various other items (Nike, 2012). However, Nike is more than just an athletic brand. The company is expanding to offer other clothing options as well. An analysis of the company indicates that it has strengths in the market that can be leveraged for growth. As with any company, there are also weaknesses — but there are opportunities to take those weaknesses and turn them into something that benefits the company. One of the ways in which the company is expanding is through women's jeans. Currently, Nike does not have a women's jean in its clothing line. The proposed item will be a skinny jean with Dri-FIT technology that wicks sweat away and keeps the wearer cool and comfortable in nearly any weather conditions.
There is much to consider any time a company decides to move forward with a new product (Jain, 1990; Jarillo, 1988; Porter, 1980). That is especially significant if the new product is outside the "comfort zone" of the company. With these jeans, Nike is moving away from its comfort zone to some degree, because it is focusing less on athletic shoes and clothing and more on general clothing for women. However, it is still operating within the same basic realm of clothing in which the company originally positioned itself and clearly intends to remain. That reduces some of the risk, but it is still vital that the risks inherent in the creation and marketing of a new product be addressed by the company in order to ensure it is protecting itself. By being careful about the marketing mix and conducting significant research, the likelihood of success is much higher — as even well-established companies can fail without such diligence (Kerin, Hartley, & Rudelius, 2011; Porter, 2002).
Nike has been in existence since 1968 and was incorporated in Oregon (Nike, 2012). The principal business of the company is footwear, equipment, accessories, and apparel with an athletic focus (Nike, 2012). Nike develops, designs, markets, and sells these products worldwide. As a seller of athletic apparel and footwear, the company is the largest in the world (Nike, 2012). Products are sold through several channels: internet and direct-to-consumer sales are popular, but the company also sells to large retailers and through retail stores owned by Nike. Additionally, there are licensees and independent distributors in more than 170 countries worldwide (Nike, 2012). Nearly all apparel products are created by independent contractors and are produced outside of the United States (Nike, 2012). Some equipment is produced within the U.S., also by independent contractors that help keep Nike's cost of doing business low (Nike, 2012). While most products are designed for athletes, they can certainly be used by anyone.
The mission and vision of Nike is to bring inspiration and innovation to every athlete, no matter where they are in the world. Nike also holds that "athlete" is not reserved for some elite group of people who are on the Olympic team or earning millions of dollars per year to play a sport. According to Nike's co-founder, anyone who has a body is an athlete. All people can and should move their bodies, get exercise, and do what they can to stay healthy — and they should enjoy those things. By having a mission and vision like that, Nike demonstrates a focus on everyone rather than just those with the skill level to become professional athletes. While few people make it in the professional athletic world, everyone can be athletic in some way and reap the benefits of that.
There are several goals that are important to Nike. Naturally, like any company, Nike wants to continue to grow, develop, and be successful. However, with the creation and marketing of the women's sporty jeans, Nike is also demonstrating a desire to move into uncharted areas where it has not yet ventured. This can allow Nike to focus on continued product development and could pave the way for a broader Nike clothing line that does not revolve exclusively around athletics. At that point, Nike would have the opportunity to enter clothing market segments it has previously avoided, potentially propelling the company to a new level financially and in terms of overall company dynamics. The goal for Nike at this point should be to market its women's jeans to its target market and ensure that market recognizes the strength of the brand behind the product. Nearly everyone recognizes the Nike name and logo, and the company can use that to its advantage.
Nike's core competency and sustainable competitive advantage is its brand recognition and the quality of the clothing, footwear, equipment, and accessories it produces. The company is very clear about what it does, and because it has cultivated its brand over a long period of time, the work has clearly paid off in the form of sales and recognition. When a company does well because people recognize it, that means it has established itself in the marketplace (Kerin, Hartley, & Rudelius, 2011). People may not be expecting women's jeans from Nike, but they will recognize the brand as something they know and trust. That will give Nike a competitive advantage with the women's jeans, because women likely already have Nike products in their closet. They know the quality of the brand, and that gives Nike an advantage with them.
A SWOT analysis of Nike examines its strengths, weaknesses, opportunities, and threats. The main strengths of Nike are its brand name recognition, the length of time the company has been in business, and the quality of the clothing and other items it provides to customers. Weaknesses include price — because some people feel Nike costs too much or cannot afford its products — and a lack of diversity, since Nike has been branding itself for athletes and with athletic wear for so long. Moving toward non-athletic clothing could be difficult.
Opportunities abound for Nike, however. The main opportunity is for the company to move into the women's clothing market using the brand recognition it already has. Few other athletic companies have done this, leaving an untapped part of the market waiting for Nike. There are threats as well. The main threats would come from other jean companies that are already well-established in the marketplace, and from other athletic companies that might decide it is their time to jump into the same niche that Nike is exploring.
The clothing industry is much more than athletic apparel, and much more than women's jeans. It encompasses all kinds of items, and Nike has the opportunity to move into more areas if it wishes. Currently, however, the industry appears to be focused on items like skinny jeans, which have made a significant comeback, and athletic attire, because the benefits of exercise are being promoted more heavily in the media. This is a good time for Nike to use its athletic apparel clout to market skinny jeans for women, as it capitalizes on two simultaneous market trends. Following industry trends is important, and setting them is even better (Perreault & McCarthy, 1999; Porter, 1979). By moving into the skinny jeans market and being the first major athletic apparel company to do so, Nike can both set and follow a trend.
The competition at this point is limited to other clothing manufacturers that sell skinny jeans. Other athletic companies are not currently an issue, because they do not sell or market skinny jeans for women. If they observe Nike's success they may decide to try their hand at it, but for now they are a non-issue. The only companies with which Nike must currently compete are those that already produce skinny jeans, and the vast majority of those companies do not have Nike's brand recognition.
Currently, Nike is very strong. It has been building its brand since its founding. It started out as a footwear company only, but it was not long before it moved into accessories, apparel, and equipment. Almost everyone recognizes the trademark Nike "swoosh," and simply seeing that on clothing is often enough to entice a purchase. The company is in a good position in the market currently, and financially it is doing well even amid a recession. Moving into the women's clothing market with skinny jeans appears to be one of the best marketing moves Nike could make at this time, and will help prepare it for the future.
The customers to whom Nike will be marketing its new product are women who are interested in the skinny jeans look and also interested in being athletic. Not all women are athletes, but many are interested in looking fit and trim. Because they want to maintain a healthy weight, look nice for themselves and others, and remain hip and trendy, skinny jeans are a good choice for them.
The main objectives for the product and its marketing are as follows:
"Target market, positioning, and product objectives"
"Product, price, promotion, and distribution strategies"
"Sales history, five-year outlook, and flat org structure"
"Launch timing, performance evaluation, and adjustments"
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