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I. Introduction
1. Company profile
Nike, Inc. is an American multinational corporation engaged in the design, development,
manufacture, marketing, and sale of footwear, clothing, equipment, accessories, and services
worldwide. The company was founded by William Jay Bowerman and Philip H. Knight in 1964
and is headquartered in Beaverton, OR. One of the most valuable brands in the sports business,
Nike employs more than 76,000 people worldwide. Nike, Inc. is also the company that controls
the Nike, Converse, Hurley, and Jordan brands (Forbes, 2022).

Regarding Nike's scale in the Vietnam market, as of October 2022, Nike has 152 manufacturers
and suppliers located here. In which, there are 116 factories producing finished products and
36 factories of raw materials(Nguyễn, 2022). The structure focuses on three main products:
garments, equipment, and footwear. In particular, the latest financial year ended on May 31,
2022, Nike's revenue reached more than 46.7 billion USD (Forbes, 2022).

2. Mission, Vision, Core Values

Mission

The mission of Nike Inc. is to drive product innovation for athletes everywhere. Countless
ideas are tested in pursuit of aiding performance, injury risk reduction, enhancing perception
and feel, and delivery of innovative products to athletes.

Vision

Nike goal is to carry on its legacy of innovative thinking, whether to develop products that help
athletes of every level of ability to reach their potential, or to create business opportunities that
set Nike apart from the competition and provide value for our shareholders.

Core Values

Nike's core values are (Parker, 2023):

• Community
• Sustainability
• Diversity
• Social responsibility

These values are at the core of Nike and continue to move the company forward, even into an
uncertain global future. These core values shine in the company's dedication to business and
social success.

3. Environment analysis in Vietnam

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MacroEnvironment

This macroenvironment in this report will be defined based on the PEST analysis:

First, political factors: The political environment in Vietnam is relatively stable, and the
government has implemented policies to promote foreign investment and economic growth.
However, there are also restrictions on foreign ownership and regulations on advertising and
marketing that Nike needs to comply with.

Second, economic factors: Vietnam is one of the fastest-growing economies in Southeast Asia,
with a large and rapidly growing middle class. This presents a significant market opportunity
for Nike, but the country's economy is also vulnerable to global economic fluctuations and
changes in consumer behavior.

Third, sociocultural factors: Vietnamese consumers are becoming increasingly fashion-

conscious, and there is growing interest in streetwear and sneaker culture among young adults.
However, there are also cultural values and norms that Nike needs to consider when marketing
its products in Vietnam.

Finally, technological factors: Vietnam has made significant investments in technology

infrastructure in recent years, and there is growing internet and mobile penetration among
consumers. This provides Nike with opportunities to reach consumers through digital
marketing and e-commerce channels.

MicroEnvironment

Nike's customers in Vietnam can be very diverse and have many segments, including youth,
athletes, sports shoe enthusiasts and fashion-conscious consumers. Nike needs to understand
the needs and preferences of its target customers in order to develop effective product delivery
and marketing strategies.

Nike faces competition from domestic and international brands in the Vietnamese market,
including Adidas, Converse, Vans and local brands such as Biti's and Anta. Nike needs to stay
competitive by offering unique and high-quality products, effective marketing strategies, and
competitive pricing.

Nike source materials and products from suppliers around the world, including Vietnam. The
company needs to maintain close relationships with its suppliers to ensure the quality and
timely delivery of its products.

Nike has a network of distributors and retailers in Vietnam that sell Nike products. The
company needs to maintain close relationships with these partners and provide effective
training and support to ensure that they effectively represent the Nike brand and products.

Nike's internal stakeholders in Vietnam include employees, management and shareholders. The
company needs to ensure that its employees are motivated and well-trained, that the company's

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managers are effective leaders and decision-makers, and that the company's shareholders are
satisfied with the company's financial performance and growth prospects.

II. Main Body Headings

1. Current marketing situational analysis & Competitive analysis
This part will be determined following The 5 C's of Marketing.

• Company: Nike is a well-known global sportswear company that operates in over 190
countries, including Vietnam. The company's mission is to bring inspiration and
innovation to every athlete in the world.
• Customers: Nike's target customers in Vietnam include young athletes, sports
enthusiasts, and fashion-conscious consumers. The company offers a wide range of
products, including shoes, apparel, and accessories for different sports and activities.
• Competitors: Nike faces intense competition in Vietnam from other global sportswear
brands, such as Adidas, Puma, and Under Armour. Additionally, local brands like Biti's
and X-Girl are also popular among Vietnamese consumers.
• Collaborators: Nike works with various retailers and distributors in Vietnam, including
international chains like Foot Locker and local retailers like FPT Shop and Sports
World.
• Climate: Vietnam has a growing economy with a young population and increasing
interest in sports. However, the country also faces challenges such as low purchasing
power and high competition from local brands.

In short, Nike's marketing situation in Vietnam is promising due to the country's economic
growth and interest in sports.

2. Opportunity analysis SWOT Model analysis

Nike Strengths

• Nike Possesses Strong Brand Equity

Aside from the fact the Nike brand is one of the most recognizable identities in the business
world, it also commands strong brand equity. In simple terms, brand equity is defined as the
commercial value enjoyed by a company based on the social perception of its products or
services by consumers. There are three main components to brand equity; brand loyalty, brand
awareness, and brand association. All these are key areas where the company has a strong
comparative advantage over competitors.
Nike has been able to position itself as one of the leading figures representing the cultural
identity of the current generation. The brand has also been able to cultivate a reputation
associated with innovation, quality, and a liberal ideological stance concerning critical
contemporary issues, such as racism, LGBTQ+ rights, and body positivity. Nike and Adidas
account for nearly 40% market share in Vietnam.

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 • The Brand Enjoys an Enormous Market Share
Very few brands enjoy the proportion of market share that Nike does. This is especially evident
in the Vietnam market, where Nike is by far the most popular sports apparel brand, especially
when it comes to footwear.
Another positive indicator of the strength of the brand is the fact that unlike many of its
competitors, it has seen its revenue grow consistently in the past few years. The Nike company
made a total annual revenue of $46.71 billion in 2022, representing an almost 5% increase from
its total revenue in 2021.

• Low-Cost Manufacturing Is a Key Part of Its Business Strategy

One of the reasons that Nike has been able to maintain its profitability over the years is that it
has invested heavily in low-cost manufacturing. It achieved this by outsourcing virtually every
aspect of the product manufacturing process to countries that have a favorable wage structure,
such as China, the Philippines, Vietnam, Indonesia.
According to a report by CNBC, up to 51% of Nike footwear in 2021 were produced in
Vietnam. Nike products are currently supplied by 191 manufacturing plants located in 14
countries globally, in Vietnam only Nike has 152 suppliers- manufacturing plants. Looking at
the numbers above, it can be seen that Vietnam is becoming one of Nike's biggest global bases.
In Vietnam, Nike could cut the "middleman" fee and take advantage of its local knowledge to
bring input materials at the lowest prices in the market. All of this makes Nike become one of
the manufacturing corporations with the lowest production and operating costs, bringing 2.5
times more profit per product than its competitors.
• Innovative Marketing
Effective branding and marketing are the key pillars of any successful company. However,
Nike has taken this to a whole different level. Through the smart use of celebrity endorsements
(which will be discussed next), iconic catchphrases, the Nike “swoosh” logo, and commercials
such as the worldwide-famous ‘Just Do It’ campaign, as well as their ability to align the brand
with positive associations such as innovation, stylishness, maximum performance, winning,
self-empowerment.
Nike Vietnam won the Silver Prize in Lead Generation category, honoring the business with
an advertising campaign “Aim Da Max” that attracts a good amount of prospective customers
that are primed for future engagement and sales at the Vietnam MMA Smarties ™ Awards
2019. Aim Da Max (#ChơiHếtMình) is a race for sneakerheads to hunt for legendary Nike
sneakers through AR at 7 stores in Ho Chi Minh City, Hanoi, Da Nang.

• Getting Rid of Retailers

Nike has made headlines over the past few years for gradually cutting ties with its major
retailers, which include department stores, brick-and-mortar stores, and sporting goods
specialists. The company does not operate a significant chain of dedicated retail outlets and
therefore has mainly used third-party businesses to market its products to customers.
By promoting direct-to-consumer sales, they have greater control over customer experience,
pricing, profit margins, and brand image. They have achieved this by increasing their e-

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commerce presence, as well as launching a suite of apps that allow customers to purchase their
goods directly from the brand.
This strategy of Nike is suitable with the key trends in the Vietnamese footwear market- the
increasing popularity of online shopping. Many consumers now prefer to shop for shoes online,
as it offers them a wider range of options and the convenience of shopping from home.

• Impressive R&D Department

Nike is more than just a company that sells sports footwear. They are also considered drivers
of innovation with regard to sports apparel and equipment. The company is well known for
outspending its closest competitors in this area. In fact, it has introduced some of the most
iconic developments in competitive sportswear, making it a favorite for many top athletes.
One of the secrets behind the success of the company in research and development is the fact
that it all sources its low-cost manufacturing process. This allows the company to focus on
high-value activities such as R&D as well as branding and marketing.

Nike Weaknesses
• Controversial Labor Practices
As we mentioned earlier, one of the key factors behind the success of Nike was the low-cost
manufacturing process. One of the primary reasons behind this is the fact that their products
are produced in countries that have relatively cheaper wage structures. However, several
reports published in the late 1990s indicated that in the process, the company might have been
involved in unethical labor practices such as poor working conditions, long working hours, and
abysmal pay.
In Vietnam, Nike still struggled with the image of a greedy American company that exploited
poor employees in emerging markets. The scandal involving Nike factories as po working
conditions in Asia, almost caused the company image - "the American giant" to tumble. The
Vietnamese laborersearns at least $ 47 a month, over time, limited to going to toilets and using
water during their working time. This caused a lot of global protests and a new revision of the
Nike slogan: "Just do NOT do it."

• The Brand Is Over-dependent on the U.S. Market

While Nike may be correctly seen as a global brand, careful analysis shows a significant portion
of its revenue comes from the U.S. market (Pereira, 2023). Well, this may not necessarily be a
bad thing, it can be likened to placing all your eggs in one basket. This is because it leaves the
company vulnerable to market shocks or economic downturns within the U.S. market.

• Worrying Financial Indicators

While Nike is still by far the most valuable sports apparel company in the world, recent
worrying financial trends have been brought to the spotlight. One of them is the steadily
increasing long-term debt profile of the company. Nike’s long-term debt stood at about $8.9
billion in 2022, a 5.21% decline from the previous year but more than twice what it was just
three years prior and nearly forty times its value ten years ago.

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 • Unfavorable Relationship With Retailers
We have already discussed the relationship between Nike and third-party retailers, and how it
has tried over the years to reduce its dependence on its services. While it has made considerable
strides towards this, a majority of its revenue still comes through these outlets. This, therefore,
exposes the company to some of the disadvantages associated with this strategy, such as lower
profit margins, as well as less control over their branding and customer experience.
Another issue that the company faces with the use of third-party retailers is the sale of
counterfeit products. These substandard goods still bear the Nike logo and therefore cause
significant harm to the brand image. If the company operated with exclusive Nike retail outlets,
it would have much better control over these factors.

• Their Revenue Stream Is Over-dependent on Their Line of Footwear

In the modern business world, specialization is definitely an advantage. However, businesses
must avoid the mistake of becoming overly dependent on a narrow range of products or
services. The Nike brand offers a wide range of sports-related products, but over 60% of the
revenue comes solely from their sales of footwear.

Similar to being overly dependent on a single market, being overly dependent on a single
product leaves you vulnerable if significant shocks were to affect the sale of this product. This
could include supply chain issues, negative brand associations, or even a fall in the popularity
of the brand.

• Reduced Quality Control

One of the disadvantages of outsourcing your manufacturing process is that you have reduced
control over the quality of your products. While Nike is certainly a brand that pays close
attention to this fact and is well-known for the quality of their product, even they are not
immune to this flaw. Outsourcing can also increase the risk of the market being flooded with
counterfeit Nike products then faked shoes could miss Vietnamese customers’ beliefs.

Nike Opportunities
• Increasing Their Product Range
Another area the brand could look into is investing in sports technology, such as wearable
sports gear like smartwatches and other forms of digital sports technology. They could also
invest in promoting their other sports products besides footwear.

• Tapping Into the Future

We have already discussed the efforts that Nike has made to increase its online presence, as
well as improve the proportion of its direct-to-customer sales. However, there are other ways
the company can improve its online revenue.
One of these is by introducing artificial intelligence into their e-commerce activities. Nike
seems to be taking a step in this direction through their acquisition of the Boston-based
predictive analytics company Celect. The goal of this technology is to use predictive algorithms

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to determine which products and apparel a particular user will be most interested in and where
they can purchase it from.

• Introducing Anti-counterfeiting Technology and Methods

Counterfeit products are one of the greatest dangers to a brand obsessed with quality control,
such as Nike. Therefore, it is understandable that the brand has introduced a wide range of
methods and technologies to battle this threat.
Some of these include liaising closely with local and international law enforcement agencies,
creating a platform that allows users to report counterfeit Nike products, promoting direct-to-
consumer sales through a range of dedicated stores and online retail services, as well as
collaborating with large e-commerce platforms such as Amazon who unfortunately market a
large number of counterfeit Nike products.

• Investing in Sustainability
In Vietnam, many consumers are now looking for eco-friendly and sustainable footwear
options, and brands are responding by incorporating sustainable materials and production
methods into their products. In line with this threat, Nike has taken steps to ensure that its
company embodies these values, and one of these steps was to promote the use of recycled and
sustainable materials in its products.
For example, the company introduced a new collection that was aimed at reducing its carbon
footprint by 75% when compared to the other products. The company has also started
encouraging customers to recycle used apparel as well as return old footwear to the company
for refurbishment.

• Other Nike’s specific opportunities in Vietnam

“Within Southeast Asia, Vietnam has the highest percentage of annual household GDP spent
on health and fitness. Almost a third of Vietnamese are now considered fitness believers, which
shows that Vietnam is the most health-conscious country in the world, and the percentage is
almost twice that of the United States” – Randy Dobson, founder and president of CMG.ASIA,
owner of California Fitness & Yoga.
The Vietnamese young generations keep up with and update immediately the global fashion
trends, so the demand for buying shoes keeps going up.
The cheap labor and low real estate in Vietnam. So Nike can cut down costs and has more
profit.
Vietnam has a high population rate, a high consumption rate…
In particular, in recent years, consumers tend to change their tastes, especially with American
consumers increasingly preferring "made in Vietnam" shoe products.

Nike Threats
• Counterfeit Nike Products

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As mentioned earlier, counterfeit products reduce the trust customers have in brand quality and
create a negative brand image. Counterfeiting is a serious issue and is believed to have made
up about 2.5% of international trade in 2019 (roughly $464 billion). This is especially important
for Nike because the brand is one of the most counterfeited in the world, with footwear being
one of the most commonly faked products.
Aside from the effects counterfeiting has on brand image, it also leads to significant losses in
revenue. This is because many customers may seek out counterfeit products, as they are
typically cheaper than the originals. Some reports have shown that Nike loses as much as 10%
of its annual revenue to counterfeit products.

• Competition From Other Sports Brands

Nike is undoubtedly significantly ahead of other sporting wear companies such as Adidas,
Reebok, Under Armour, and Puma. However, some of these companies, such as Adidas,
command a significant market share and pull in revenue that is indeed threatening Nike’s
continued dominance of the industry.
Realizing the potential of the Vietnamese sportswear market is growing, Decathlon officially
opened its first store in Hanoi with a scale of up to 4,300m2. These are all megastores (large
stores) offering a variety of 14,000 products, apparel, training and competition equipment for
more than 70 sports. Brands Adidas, Lyning, Puma... from choosing Vietnam as a production
base for export, have focused on selling products.

• Its Competitors Are Investing More Heavily in Advertising

In absolute terms, Nike spends more than its closest competitor Adidas on advertising, having
spent approximately $3.8 billion on advertising in 2018 (less than 10% of its total revenue),
while Adidas spent $3.5 billion (representing roughly 14% of its total revenue) in that same
year.
This shows that Nike’s competitors are investing more heavily in advertising in an attempt to
carve out a larger market share. Even though Mikey still has the upper hand as far as branding
and marketing are concerned, to maintain its advantage, they need to focus on matching the
efforts of its rivals.

3. Identify the Segmentation & Positioning of the company’s entry mode to

the Vietnam market

Nike has a specific segmentation and positioning strategy for the shoe market in Vietnam. Nike
uses a combination of geographic, demographic, psychographic, and behavioral segmentation
to target specific customer groups in Vietnam (Nike Market Segmentation, Targeting, and
Positioning | EdrawMind, n.d.). In terms of geographical segmentation, Nike targets customers
in urban areas throughout the country. Demographically, Nike targets both men and women
between the ages of 18-40. Psychologically, Nike targets customers who are interested in sports
and fitness activities such as running, basketball and football. Specifically, they are looking for

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high-quality shoes that are time-conscious, environmentally conscious, and interested in
sustainable products.

Particularly for the Nike Air Max 97 product line, Nike targets the young customer segments
from 18 to 30 who prioritize a fashionable lifestyle. For example, Nike Air Force 1 and Nike
Air Max used to be popular among young people in Vietnam. These shoes are designed for
everyday wear and are often worn as a fashion statement.

In terms of positioning, Nike positions itself as a premium brand offering innovative and high
quality products. However, as a developing country with a growing middle class and large
population, many customers in Vietnam are price sensitive and may not be able to afford high
priced products, Nike has therefore established partnerships with local distributors to improve
the accessibility and affordability of their products in Vietnam. That way, Nike can position
itself as a leading brand in the Vietnamese sports and fitness market.

Overall, Nike's segmentation and positioning strategy for the shoe market in Vietnam is based
on a combination of affordability, innovation, sustainability, and community involvement. This
allows Nike to differentiate itself from its competitors and position itself as a leading brand in
the Vietnamese shoe market.

4. Identify the Marketing Mix of the company

a. Nike’s Products (Product Mix)

This component of the marketing mix lists the organizational outputs of the sporting goods
company, sometimes referred to as the product mix, which is the collection of commodities
provided to target consumers. The marketing plan of Nike Inc. calls for expanding the company
through modifications to the product mix dependent on the market. Currently, the marketing
mix of the athletic goods company encompasses a wide range of product categories and brands.
However, broadly speaking, Nike's product mix can be divided into the following categories
(Gregory, 2022):
• Footwear
• Apparel
• Equipment and accessories
Nike Inc.'s most popular items are shoes, and the company's general marketing plan continually
expands the product mix by adding other product lines. For instance, the business now provides
tennis shoes, running shoes, and shoes for numerous other sports, such as cricket. Additionally,
Nike sells clothing items including jerseys, shorts, and associated goods. The company's
marketing mix also includes product lines for golf clubs and other accessories and equipment.
These goods are offered by the corporation under a number of its brands, including Air Jordan
and Converse. Nike expands its product mix to meet the needs of its target markets and market
segments based on this component of the marketing mix, better adjusting the 4Ps to market
characteristics.

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 b. Place/Distribution in Nike’s Marketing Mix
The locations where the sporting goods company's products are sold, accessed, or distributed
are described in this component of the marketing mix. Nike's market reach is optimized using
this 4P variable. Sports shoes, clothing, and equipment are all sold by the corporation through
several stores across the world, including big-box stores and niche shops. Nike's distribution
strategy in this instance of the marketing mix is comprised of the following locations or venues
(Gregory, 2022):
• Niketown retail outlets (company-owned)
• Nike Online Store
• Retail stores
Because they are well-positioned and convenient to access in numerous markets throughout
the world, retail outlets are the most major locations where Nike products are sold. These
merchants include big companies like Walmart as well as little neighborhood and regional
shops. This 4P component of Nike's marketing strategy also demonstrates that clients may buy
sporting goods from the company's online store, including clothing and equipment.
Additionally, the corporation manages its Niketown retail locations, where it has control over
the retail sales procedures. These outlets, which are owned by the corporation, provide access
to business and market intelligence that aids corporate strategy management with reference to
Nike's marketing approaches and plans for both established and new items. Based on this
element of the marketing mix, the company has considerable control on the distribution of its
products, especially through its online store and Niketown retail outlets, making this 4P
variable an information contributor to strategic formulation. However, this element of the
marketing mix also shows that Nike has limited control on the distribution and sale of its
products at other retail outlets.

c. Nike Inc.’s Promotion (Promotional Mix)

This marketing mix element, also known as marketing communications mix, involves the
tactics that Nike uses to communicate with its target markets. The company depends on the
effective promotion of its products to maintain a strong brand image. This part of the sporting
goods company’s marketing mix uses promotional tactics to communicate with customers
about its products, and persuade them to purchase these products. The following are Nike’s
promotional activities, arranged according to significance in the firm’s marketing strategies
(Gregory, 2022):
• Advertising
• Personal selling
• Direct marketing
• Sales promotions
• Public relations
One of the main factors in Nike's success in luring customers is advertising. The business
largely relies on advertisements in this 4P variable, particularly those that feature high-profile
celebrity endorsers, such professional players and sports teams. This component of the
organization's marketing mix also involves personal selling, in which salespeople convince

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target customers to purchase the sporting items the company sells. For instance, salespeople at
Niketown retail locations are taught how to employ similar persuasion techniques. Contrarily,
the company's direct marketing activities in the context of the 4Ps entail promoting its products
through direct communications with universities, regional sports teams, and other groups. In
addition, in terms of sales promotions, Nike occasionally provides discounts and special offers
to attract more customers and generate more sales. Moreover, the marketing mix includes
public relations, in which the company sponsors and provides financial support to
organizations, such as community-based networks, to promote its athletic shoes, apparel, and
equipment. Based on the tactics included in this element of Nike’s marketing mix, the business
depends on its relations with high-profile endorsers to succeed in promoting its business and
products to the international sporting goods market.

d. Nike’s Prices and Pricing Strategies

This part of the marketing mix determines the prices that will provide the greatest profits while
luring the targeted proportion of the global market for athletic and recreational goods. Nike
makes technology expenditures in order to use premium pricing methods in its marketing.
However, the company's marketing strategy takes into account the state of the market when
determining its price points and price ranges. Nike Inc. uses the following pricing methods in
its business based on these factors for this 4P variable (Gregory, 2022):
• Value-based pricing strategy
• Premium pricing strategy
In the value-based pricing strategy, Nike Inc. considers consumer perception about the value
of its products. In the marketing mix context, perceived value determines the maximum prices
that consumers are willing to pay for the company’s sports shoes, apparel, and equipment. In
contrast, the premium pricing strategy uses high prices, based on a premium branding strategy
that establishes Nike products as higher in quality and value than competing products. The
footwear company's usage of commercials with prominent celebrity endorsers in this 4P
variable is suggestive of this emphasis on premium branding. Since customers connect a
premium status with the firm's products when Nike uses the premium pricing approach as part
of its marketing mix, the company benefits from larger profit margins and perhaps higher sales
revenues. Furthermore, it's important to note that the sociocultural and economic developments
in the industry environment are connected to premium statuses and premium costs. To make
sure that this 4P variable fits the market, the footwear and apparel industries modify their price
points and ranges in response to such trends. In this element of the marketing mix, Nike Inc.
successfully uses its pricing strategies to maximize its profits while emphasizing high value in
promoting its products and brands.

5. Marketing objectives

• Increase brand awareness

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One of the primary marketing objectives for Nike in Vietnam could be to increase brand
awareness for the Nike Air Max 97. This could involve a combination of marketing tactics such
as advertising, sponsorships, and influencer marketing.

• Increase sales

Another key objective for Nike could be to increase sales of the Nike Air Max 97 in Vietnam.
This could be achieved through a combination of targeted promotions, discounts, and product
launches.

• Expand market share

Nike may also aim to expand its market share in Vietnam by targeting new customer segments
and increasing its product offerings in the market.

• Improve customer loyalty

Nike could also focus on building customer loyalty by offering personalized marketing
experiences, exclusive content, and promotions to customers who purchase the Nike Air Max
97.

• Enhance the brand perception

Finally, Nike may aim to enhance the overall brand perception in Vietnam by investing in
corporate social responsibility initiatives, sustainability efforts, and community engagement
programs that align with the brand's values.

By setting clear marketing objectives for the Vietnamese market, Nike can align its marketing
strategies and tactics with its overall business goals and maximize its chances of success in the
market.

6. Marketing Strategy & Marketing Mix

a. Product

The Nike Air Max 97's look was said to be inspired by high-speed Japanese bullet trains and
alternatively the titanium metal frames on mountain bikes. The upper uses a very rustic and
casual color palette, with lots of colors for different racing stripes. Corduroy material is selected
for this upper, creating a very fancy texture.

Thus, to cater to the Vietnamese market, Nike may consider offering a range of color options
and designs that appeal to local fashion trends. Nike also could offer customization options to
allow consumers to design their own shoes.

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 b. Price

The Air Max 97 retail price is approximately 4.000.000VND -> 6.000.000VND.

The target of Nike Air Max is to be at the forefront of quality in the market

Nike used Price Skimming Strategy. The reason why Nike sells at a high price is to protect the
interests of traders and distributors

c. Promotion

Nike can use various promotional strategies to increase awareness and generate interest in the Nike
Air Max 97. This could include traditional advertising channels such as TV and billboards, as well
as targeted social media and influencer marketing campaigns. Nike could also collaborate with
local celebrities and athletes to showcase the product and generate buzz.

d. Place

Most Nike products are available and sold in retail stores since most customers prefer to choose
products by trying them on physically. Nike strategically positions its retail stores in areas
where they are accessible for customers to find its products. Customers can also purchase Nike
products through the company's online website and other online sales platforms.

7. Action Plan in details in 1 year

7.1. Key performance indicators

The brand’s goal is to help the sneakerheads express their own creativity and style as Nike’s
Air Max target customers are the young who love to express themself. At the same time, Nike
wants to increase brand awareness and continue to develop the iconic Nike Air Max identity,
which they have been striving for over the past few years. Specific goals include increasing
sales of Nike Airmax products 97. Expand the community that loves the Air Max 97. Increase
product image and customer trust when using the product.

Short-term goals:

• Gain 500 quality comments, 300 pictures of virtual customized Air Max on social
media posts or stories per week. (43 pictures per day during the campaign)
• Boost brand awareness by generating 500 new social media followers for Air Max
Vietnam channel on Facebook, instagram,... each week
• Incresea Nike Vietnam’s website traffic, stores traffic by 10%

Long-term goals:

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 • Get on the first page of Google Vietnam for three of our main focus keywords: sport
shoes, Air Max, customizes shoes.
• Create a sales funnel that generates 20% new customers for Air Max 97 over the next
few years.

7.2. Campaign frame

Phase 1: research and analysis phase (month 1,2)

In the Vietnamese community of people who are addicted to shoes, “customs” shoes is a
familiar word, a hobby and a passion of many people. That’s when they can turn the shoe
models into their unique, disruptive ways to their liking. Nike will conduct a market research
to identify target audience and consumers preferences in Vietnam to develop the campaign.
Knowing that Vietnamese consumers are likely to research products online and rely on social
media and peer recommendations for product information and reviews, they are highly
influenced by fashion trends.

Therefore, Nike organized a marketing campaign in Vietnam called “Color your Air Max” by
using the Facebook and Instagram stories features where the Vietnamese consumer can
customize it. (customize virtual shoes on apps like facebook, instagram,...)

Nike needs to know which kind of Air Max shoe does the Vietnamese consumer prefer the
most. Do they prefer an active lifestyle, are they interested in sports and fitness or the value of
comfort and durability in their footwear.

Phase 2: Execution phase (month 3 to 6)

To develop “Color your Air Max” Nike choosed Facebook

and Instagram to run their campaign as many of their
Vietnamese customers are using these two social network
sites. This is a place where Vietnamese people can
customize shoes right on their phone in the way they want
to. In this campaign Nike also partnered with social media
influencers to promote the Air Max product line. The
influencers will be the judges and consider which is the
best work among all customized shoes from their
followers . Nike will collaborate with local designers to
create limited editions of the winning customized Air Max
products.

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1. Social media influencers will post a photo of a white Air Max
shoe with the title “Color your Air Max” on their Facebook and
Instagram stories according to the model that people voted for
the most. They call their followers, friends and people that are
Nike fans to join them with hashtag #AirMaxChallenge.

2. Each person will take a screenshot, using the Facebook and Instagram stories coloring
function to customize a new shoe model. They also can download the picture and use other
apps than Facebook and Instagram to customize it as long as they feel free to customize. Once
they are done, they will re-post the photo to their story and tag the previous influencer.

3. The influencers will be the judges and check out all the stories they were tagged. Each
influencer will choose the best work creation and award a special pair of Nike Air Max shoes
to the person that they have self-designed.

4. Additionally, not just award the winner, Nike will create a list of top 59 (Nike is 59
years old) best customized Air Max and give the designers discounts when they purchase Nike
Air Max at stores as Vietnamese consumers tend to be price-sensitive, and often seek out
promotions or discounts before making a purchase.

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Phase 3: Develop side campaigns ( month 7 to 10)

1. Plan and execute exclusive events to showcase the Air Max product line in Vietnam,
award the winner in the “color your Air Max” campaign, give out discount tickets for
top 59 best customized virtual shoes,...

2. Host product launches, fashion shows, and especially sponsor for sports tournaments
to engage with consumers and increase brand awareness, product awareness and
express Nike's spirit.

3. Creating Ad placement on services like Google, Youtube, Bing, Facebook,...

4. Collaborate with well-known Vietnamese youtuber, famous Vietnamese football,

basketball players, athletes to customize their own Air Max, creating a trend among
young people to customize their Air Max (real white Air Max are available for self-
customizing) and share their moment or pictures with those shoes on the internet.

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Phase 4: Evaluate the success of the marketing campaign and event initiatives
(month 11, 12)

Analyze sales data to determine the effectiveness of the retail channels, analyze Nike’s
Vietnam stores performance both online and offline. Optimize the marketing strategy and
make necessary adjustments to improve results. We could track the following indicators:

1. Overall website traffic: the traffic received from the digital channels we use.
2. Traffic by source: tells what the most effective channels are.
3. New visitors vs. returning visitors: shows the value and relevance of our content.
4. Social reach: how many people have seen our ad on social media.
5. Social engagement: the number of users’ interactions with our content, including their
clicks, likes, shares, comments, etc.
6. Return on investment (ROI): tells how much we spent on our campaign vs. how much
we earned.

III. Conclusion
In the Vietnamese market, Nike has made new strides and achieved certain achievements here.
Nike's product lines are gradually becoming more widely known, especially the Nike Air Max
97 product line. These shoes are becoming more and more popular in Vietnam, especially
among young people, who love the dynamic and health that the shoes bring.

Currently, Nike holds 33% of the market in the sports shoe segment, the highest and second is
Adidas with 22% of the market (UKEssays., 2018). Our next goal is to dominate 50% in the
next ten years, which has a great contribution to the growth of the Vietnamese market. By
understanding the brand's SWOT and implementing a flexible and creative 4P Marketing
strategy, the marketing team will make Nike in general and Nike Air Max in particular always
affirm its position in the sportswear industry.

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REFERENCES
Forbes. (2022). Nike | NKE Stock Price, Company Overview & News. Forbes.
https://www.forbes.com/companies/nike/?sh=24c3d2956eb5

Gregory, L. (2022). Nike’s Marketing Mix (4Ps/Product, Place, Promotion, Price) - An

Analysis - Panmore Institute. https://panmore.com/nike-inc-marketing-mix-4ps-product-
place-promotion-price-analysis

Nguyễn, C. (2022). Việt Nam sẽ thành “cứ điểm” toàn cầu của Nike? Diễn Đàn Doanh
Nghiệp. https://cafef.vn/viet-nam-se-thanh-cu-diem-toan-cau-cua-nike-
20221207173531247.chn

Nike Market Segmentation, Targeting, and Positioning | EdrawMind. (n.d.). Retrieved June 3,
2023, from https://www.edrawmind.com/article/nike-market-segmentation-targeting-
and-positioning.html

Parker, B. (2023). Nike Mission Statement | Vision | Purpose | Core Values (2023) | Business
Strategy Hub. Business Strategy Hub. https://bstrategyhub.com/nike-mission-vision-
purpose-core-values/

Pereira, D. (2023). Nike SWOT Analysis. https://businessmodelanalyst.com/nike-swot-

analysis/

UKEssays. (2018). Marketing Management Marketing Strategies Of Nike Marketing Essay.

https://www.ukessays.com/essays/marketing/marketing-management-marketing-
strategies-of-nike-marketing-essay.php

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