Tuvalu earlier known as Ellice Islands is located in the Pacific Ocean in between Australia and Hawaii. It is an island nation where nine islands are grouped together in Southern Pacific, and it was unbounded from the rule of U.K. in 1978. Based on an evaluation of the Shoe Market and strengths, Nike will introduce the footwear and apparel market in Tuvalu region. Nike has planned to introduce its brand using Penetration Pricing strategy, advertising at the extensive level and expanding the distribution levels to increase the growth rate and revenues. This Brand is planning to combine the cost-effective and unique design to launch at least four percent share of the market in the initial year. The following sections will present a Market Plan for the Nike to invade in the region of Tuvalu by doing extensive search and analysis of a market segment of Tuvalu, competitive analysis, presenting its strategy, financial analysis and marketing mix for the brand to uncover a smooth experience for itself.

Brand Description

Nike is considered to be the most well-known provider of apparels and shoes which are used for athletic purposes. It was formed in the year 1968 under the Oregon's state's law. Our main activity involves worldwide selling and marketing, designing and developing the athletic apparel, footwear, services, activities, and equipment. It is considered to be the widest footwear seller in the athletic domain in the world. All the autonomous contractors produce all our products. A huge position has been obtained by this business in the market places with the help of attractive design, innovative quality and well-drafted strategies of the market.

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Market Analysis and Research

Market Description

The environment of marketing for Nike represents the opportunities which are overpowering the existing benefits. The company has strong belief over the fact that it can successfully meet all the challenges in the environment. Robust relationships with retailers, suppliers, and consumers can help ruin the competitors. Therefore we must reply to shifts and trends in the preference of consumers by doing adjustment of new product development, categories and style making influence to fitness and sports by doing marketing at extensive manner. Nike possesses abundant market information. This market information can help to understand that who gets served with what needs and how the better communication can take place. Each brand of Nike operates mainly in single industry geographically- development, designing, footwear of athletics, marketing, accessories, services, and equipment. Nike also works on direct selling to Customers which is managed in every segment of geography.

Evaluation of Target Market

Target Market

The main focus of the Nike brand remains attentive for athletes, but still it can deliver much more than the shoes. Nike provides the best environment and surrounding which suits the experience an athlete wants. Nike has over 90,000 employees worldwide; there is various categorization of departments for product and geographic divisions which has created a flexible structure of leadership and responsibilities which create overlying management. Nike indulges itself in endorsing the celebrity for marketing the products like athletes in golf, tennis, soccer and basketball. Also many big events of Sports are now being sponsored by Nike to make huge brand following and awareness (Piercy, et al., 2015).

Market Entry Recommendations

Market Demographics

Male- The basic product line for Males are Tennis, Outdoor, Baseball, Track & Field, Golf, Football, Action Sports, Soccer, Nike Sportswear, Basketball, Training, Running (Wilkinson, et al., 2013).

Female- The famous products for Females are Tennis, Outdoor, Baseball, Track & Field, Golf, Football, Action Sports, Soccer, Nike Sportswear, Basketball, Training, Running

Youth- Nike srves the categories of Kids, Toddler/Infant, Pre-School.

Age- Nike caters to the primary need of people between the ages of 13-46 years

Education- 70% are graduated

Income- Medium income is around Rs. 50,000

Behavior Factors

Almost all the equipment regarding sports involves huge money expense. Users are used to indulging in a lifestyle that is very active. The activities which involve healthy recreation and fitness lifestyle are adopted by the consumers (Tu, et al., 2013).

Need of the Market

Being a customer centric company, it emphasizes more on choice and needs of the customer. The following add-on can be provided by the company for it customer- Products with good quality, Unique designs, and extensive services to customers.

Growth of the market

Growth is very strong in soccer, basketball, and running categories shoes which fuel the demand for products of Nike. Nike has also associated itself with the sponsorship of Basketball game which helps to drive the sales in the category of basketball.

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Competitive Analysis

SWOT Analysis

The sneakers have been modified to increase the weakness, strength, threats and opportunities in the market. The SWOT analysis will help to capture the important weaknesses and strengths and also describes the threats and opportunities which are faced by Nike.


  • The network of Distribution is very broad; that is it sells the products worldwide.
  • It is a leader in brands globally
  • A large proportion of market share has been captured by Nike
  • Updated Technology is used by Nike to manufacture innovative products and also to maintain the competitive edge. For example- The partnership of Nike with Apple.
  • Nike provides customized and a wide variety of products in footwear category.


  • The hierarchy of management is centralized, and there is no management backup which can hinder the growth and creativity.
  • The present facility of Nike is overcrowded. Very little is there for new employees and additional equipment.
  • The skills and requirement which are required in an employee are hard to find.


  • Sports is being funded by the government and also many companies are setting up large programs
  • Awareness about health is increased regarding losing weight, and it can also benefit those who possess problems like cancer and high blood pressure.
  • It has been predicted that the footwear market will increase globally by 28.9 % by 2018.


  • Outsourcing, right sizing, and reengineering trends can either modify or eliminate relationships of traditional channels with distributors, dealers, and brokers.
  • Increased competition daily can also be a major threat.
  • There is no guarantee of the political, economic and natural situation to be favorable every time.

PESTEL Analysis of Environment

  • Political/Legal- A lot of terrorism has been observed in the home country and the rest of production countries there is a lot of Political unrest which proves an unstable political environment for Nike.
  • Economic- to enter the Economic Union, there is multiple barriers recession in Economy, and also the cost of labor and prices of materials are increasing.
  • Social- the Market's female share is going up, and now there is more demand for products of fitness. Nike also understands the social responsibility for its labor.
  • Technology- Updated technology has also helped the companies to maintain the facilities of production more efficiently and also develop more material for new product speedily which can help to design the products with an expert eye.
  • Environmental- the impact of climate can change the functioning of Nike's internal environment. Also, there is the philosophy for sustaining the resources like re using a shoe which can help to keep clean the environment inside and outside the organization.
  • Legal- Three main factors which determine the intensity of legal environment are issues regarding child labor, working conditions which are unsafe and few laws which can help to protect the products from being copied.

Effect of Porter’s Five Forces on Nike

  • Potential Entrants (low) - There are high barriers to entry in the footwear industry for athletics as this industry involves huge capital to be invested at the initial entry stage and this industry is being consolidated, and very few among many will survive.
  • Buyers (High) - The main buyers for this industry include the end users and retailers, and they get influenced by the pricing of the products. Now there is an increased number of women buyers in the segment which are adding up to some buyers in the industry.
  • Substitutes (High) - There are many substitutes for the product and service which the customer can get attracted to and also shift to it easily if the costs for switching are low.
  • Suppliers (low) - Because of availability of some suppliers in the market, they do not bargain much for the product's price. Also, Nike experiences the Economies of scale because of facilities of production in the Far East.
  • Competitive Rivalry (High) - Its competitors like Reebok and Adidas is offering more variety of shoes in the market at a competitive price, thus to make its way for the higher success, Nike needs to understand the target market and customer’s demand effectively.

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Industry and Competitors Analysis

The list of competitors includes Adidas, Reebok, Under Armour, Li Ning, Toys R Us, TaylorMade, PVH, Titleist, Fuel Clothing, Crocs, Pebble, Phat Farm, Atac, Skechers, ASICS, etc. Adidas is competing in the comprehensive market for sports goods while Puma is a Germany brand which competes in apparel, footwear, equipment and accessories market. Under Armour designs its product by the markets for active outdoor and goods lifestyle with microfibers fitted inside the products which do away with the perspiration (Morgan, et al., 2015).

Value Chain Analysis of Nike

Nike follows the value chain commencing from the development of the product to making it accessible for the customers through sales in the departmental stores. The initial development of product takes place after doing the analysis of the market trends and finding the tastes and preference of the customers. Expensive raw material and fabrics and rubber are used to finish the products and then they are sent for the final promotion and marketing activities like placing the products in departmental stores, exclusive Nike brand stores and making online catalogs and promotions for the new products being launched. At last the customers give their feedback in respect to their experience with the products they have used (Rouzet, et al., 2013)

Marketing Mix

Production of Nike

A wide variety of apparel, equipment and shies are offered by Nike by constitute the Number 1 position in today’s market. Now it has entered into the accessory based products like athletic bags and sports apparel. They have one more brand I itself Cole Haan which supports a line of casual footwear, men, children and women's accessories and dresses. Under the name of Sports Specialties, they are leaders in selling the gears of the head. Under this category, they can sell and manufacture the in roll skates, skate blades, protective gear, accessories, hockey jerseys, hockey sticks, and ice skates (Rahmani, et al., 2015).

Price of Nike

Pricing of the Nike is competitively designed as compared to the other brand of shoes in the market. The primary market base for this Brand has been set up as Premium class. Nike instructs huge amount. The pricing strategy of Nike makes integration vertically in the pricing where the participants are owned by them at various levels of the channel. They also make active participation in multiple levels of a channel for different operations. The cost of the production can be controlled by this, and it can also help to influence the pricing of the product. There are many facilities for production in Asia and other units of operations and services for customers worldwide.

Promotion of Nike

Promotion depends upon having access to the large market base in multiple locations of stores. The Advertising in Newspaper for the target market and strategically creation of alliance. The brand ambassadors of Nike are the famous athletes like Team of Soccer from Brazil, Lebron James, Jermaine O’Neal of basketball, cycling expert Lance Armstrong, Golf champion Tiger Woods. Many events are sponsored by Nike such as Hoop it Up and Golden West Invitational. Factors like trademark swoosh, the name of Nike and images for the brand makes it as the most recognizable and unique brand worldwide. The revenues for this Brand are much high, and the main reason behind this is the power of the brand. Nike is considered to be the empire in shoe industry as it has a loyal and obedient base of the customer, the techniques of marketing is great, and the product of Nike are high on quality. These all reasons make it as a high earning and huge revenue collector brand in the world (Yoo, et al., 2000).

Place of Nike

Many stores which carry the multiple brands do have Nike products, and their products are also available in the Exclusive stores of Nike. The products of Nike are sold in about 20000 retails outlets in U.S. and in approx. 200 countries worldwide. Nike can sell its product via a subsidiary, Licensee, and distributor.

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