Marketing analysis of Nike

3. Ansoff’s Matrix
Market penetration, product development, market development, diversification.

ANSOFF MATRIX

Product Development
New Market
Market Development
Existing Product
Diversification
New product
Market penetration
Existing Market
increasing risk
increasing risk

MARKET PENETRATION

• It is the secondary growth plan executed by Nikes to penetrate the existing market
• Market penetration occurs when a company utilizes an intense growth strategy to infiltrate the market by producing the same product in the same market and market segment but at different price points.
• The company grows through boosting sales revenues in existing areas with this method.Nike is increasing the number of stores and retailers in the United States in order to sell more athletic shoes to Americans.

PRODUCT DEVELOPMENT

• It is a centralized growth plan for the company of Nike
• This intensive strategy involves the introduction of new products to grow sales revenues in the market
• Through changing designs, product features or characteristics retain the existing customer with latest product innovation
• Focuse on innovative product to an existing customer by modifying the design
• Increase the market share of shoe companies by integrating the latest technology into the design and quality of athletic shoes

MARKET DEVELOPMENT

• Plays a vital role in the financial, demographical and geographical growth of the company
• It is a company's most profitable strategy because it helps to the expansion of the company's growth by focusing on various markets and sectors.For example, Nike intends to open shoe retailing stores throughout Africa and the Middle East in order to increase sales
• A company's market development plan is executed by producing modified and innovative items in new markets in order to enter new market segments.However,a company's growth can be measured by the saturation of Nike stores around the world