Context Analysis

Executive Summary

Summary of Context Analysis

Porter’s five forces, SWOT and the PESTEL analysis are the techniques that were used to evaluate the context of Nike in the UK sport gear market. Upon a comprehensive analysis of the market, some of the relevant macro-environment factors identified in the analysis include the social factors. The UK population associate internet usage, mostly the social media, with the young people. However, many companies and organization have internet in their offices and have already launched their social media presence. Context Analysis

Most of the managers and other high ranked employees in their late forties and early fifties arealso using the internet consistently. Companies in the sport gear field have neglected such markets with very few creating direct strategies to attract them. The legal factors were also considered in the analysis whereby the laws that govern the internet usage were examined. The UK laws guiding on line marketing were examined to ensure that the proposed plan was inline with the legal requirements. Context Analysis

The level of technology penetration was also highly evaluated in the analysis. Digital marketing heavily relies on technology such as the internet and computers to work. After evaluation, the level of technology penetration in the UK was found to satisfying with many homes, offices, and institutions using the internet consistently. The economic level of the UK was also found to support use of Digital platforms in marketing. The United Kingdom is one of the economic super powers in the world meaning that the many of the citizens can afford infrastructures necessary to internet access.

The political environment in the UK is conducive to the digital marketing in that the ruling government has measures in place to control on line marketing and internet security. The efficiency of the government to control the internet usage has created trust among the users hence improving the usage and creating a large online market. Companies and the government institutions have also invested heavily on the internet. Context Analysis

The Micro-environment to the Nike companyinclude the market place. Theinternet penetration in the UK has created opportunities and created threats to Nike. The penetration of the internet has created a wider range of the products available for the customers hence improving their bargaining. The internet has also reduced the bargaining powers of the suppliers to creation of varieties by the internet. With many suppliers using the internet to market their products, the company can identify the clients with the cheapest prices. Context Analysis

The internet penetration will the

Digital marketing objectives

Objective 1: To increase Nike’s web conversion rate from 2.0% to 2.5% between December 2016 and June 2017.

Conversion rate in digital marketing is used to refer to the percentage of potential customers who purchase the product being advertised. It is important to note that not every target customer who views the advertisement on online platforms takes the action the advertising company expected him/her to take. By pursing this objective, Nike will be in a position to acquire new online customers. This is expected to dramatically improve its profits within the 6 months period. Improved profits will create a room for the company to improve the quality of their services, thereby attracting more customers and retaining the existing digital customers. Context Analysis

In an effort to achieve this objective, Nike should be guided by the understanding that clients are the livelihood of any business, whether the business is being conducted through offline or online platforms. Successful companies in digital marketing such as Amazon have taken advantage of the potential presented by an increase in the customer conversion rates. This should encourage Nike to pursue the same objective and achieve an increase in the number of online customers.

Strategy 1

Nike will be required to make a decision of the best headline to use when delivering a specific message to its online customers. The recommended method to use is conducting what is called an A/B testing. This will involve creating two versions of Nike’s pages in the form of page A and page B containing different headings. The company will then be required to use a software that directs half of the incoming customer traffic to page A and the other half to page B.  The two pages will be designed in such a way that they will contain a call to action. The number of people taking the desired action (ordering a Nike product) in each of the two pages will be calculated by the software and recorded as the number of conversions. The page with a higher number of conversions will be selected and its headline used. Nike will use the same procedure to test other important aspects such as page layout, page navigation, and type of media. A/B Strategy will help Nike determine which of the two web pages can achieve the optimum conversion rate hence increase revenues. Context Analysis

Strategy 2

Use of strong CTA’s (Call to Actions) on every piece of content on all the pages of the Nike’s website. Nike will ensure that the readers can identify what they are required to do next while in the site. For instance, potential visitors will know whether they are required to click a button, fill out a form, or read a blog post. Towards the realization of effective CTA, the company will ensure that the ground work for the call to actions is laid properly. Prior to completing a certain call to action, visitors demand to recognize the need for doing so. One of the techniques to explain the need to complete a particular call to action to the visitors is by the use of informercials. Informercials establish a problem and offer a product that can fix the issue before requesting visitors to respond. Nike will identify the problems that their products such as a particular sport shoe solves then create proper informercials for every of their product. These tools will also explain the benefits of responding to the informercials by specifying what the visitor stands to get out of completing a particular CTA. For instance, the company can create an informercial explaining the user that he/she stands to get a ten percent discount on shipment fee if she/he orders for a certain sport jacket. The number of items per page will be carefully determined to ensure that the informercials do not surpass a certain level to irritate the visitors. Context Analysis

The implemented CTAs will also be crafted in manner that they will not be confusing to the visitors. Words like order, buy, or view will be used to cearly explain the visitors what they are required to do for every CTA. Complex language will confuse the potential customer hence frustrate them meaning that they might not respond positively to the call to action. The language will also emphasize on urgency. Active urgent language will be used to emphasize on the need for the visitors to respond to the CTA immediately. Phrases such as ‘offer ends on June 31st, ’ ‘order now and get a 10% discount,’ or ‘for a short duration only,’ will be utilized. Context Analysis

Strategy 3:

            The third strategy will be aimed at minimizing the risks for the potential customer. The customers will be assured that they can get their money back easily whenever something happened between their placing of the order and the delivery. For instance, the customer might be no longer  interested in buying the item requested for, the delivered item might also not meet the customers expectations created by the product on the website or the company might be unable to meet the customer request at particular instance. Assuring the clients that they can easily recover their money whenever there is such an occurrence will leave the clients with nothing to risk hence might purchase more. A no-questions-asked refund policy on all the clients purchases is one of the approaches that will be used to ease the refund process. Easing the process will ensure that the customers are not frustrated when requesting for refunds hence create a trust between the company and the online customers. Context Analysis

Objective 2: Increase Bulk Buying Via the Website from 20% to 25% in the first quarter and second quarter of 2017.

Bulk buying is the core of every marketing team of any organization that wishes to be competitive in the market. Marketing, whether performed offline or online must target bulk buyers to boost the sales exponentially. The benefit of selling in bulk is that it encourages mass production thereby decreasing the cost producing the items due to the economies of scale. With a lower cost of production, will help the company to offer competitive prices in the market and hence hedge out there competitors. Nike will therefore require efficient strategies targeting potential bulk buyers to harness the benefits of the same. Context Analysis

Before the end of the year 2016, Nike will establish the potential buyers and find the best approaches to encourage them online. Some of the potential bulk buyers that will be targeted include Governmental and non-governmental organizations, sports teams, and institutions such as colleges and universities. Such buyers will be targeted because, for instance, most corporate institutions run successive sports departments and spend a lot of money in purchasing sporting equipment and uniforms.

Strategy 1:

Personal Branding is one of the strategies that will be used to achieve selling in bulk. The company will create a profile section on their website whereby they will include the details of their top personnel including their experience and achievements. The profiles will be aimed at creating personal brands around individuals which can help market the company. Corporate buyers in most cases are keen on details such the people involved in the production of particular products. These kind of buyers normally associate the experience and achievements of the personnel with the quality of the products and are more likely to purchase.

The personal brands will help the company to build trust between them and other corporate buyers who can associate the products on the website with team involved in creating them. The corporate buyers can then identify the website a serious outlet for Nike due to the connection between the team and the products. The personal brands are also an efficient tool for marketing products because of association people create between the items and the personnel behind them. For instance, people are more likely to purchase a football when they are told that the person who designed also designs English premier league footballs. Context Analysis

The corporate buyers who also in most cases purchase in bulk are more likely to create a link between the personnel than the company. The Nike’s personnel represent the company in various events, where other corporate organizations members also participate, such as conferences and trade fairs. In these events other organization’s members interact with the Nike’s representatives and not the company hence they are more likely to know them better than the company. The knowledge means these buyers are more to likely to buy product from the website because they can identify the people behind the items since maybe they have interacted before.

The main reason why the strategy does not target small scale buyers is due to the bulkiness of details involved. Small scale buyers are usually scared away by a lot of details and usually ignore those details. Hence, the approach is inefficient in attracting small scale buyers because it achieves the opposite. The Personal Brands are unique tool that most of the competitors ignore hence has the potential to place Nike a step ahead of the others. Most of the companies in the sports gears and equipment industry focus on building their brand and fail to recognize the advantages of creating separate brands around their employees. Context Analysis

Strategy 2:

Content Marketing is another strategy will that will be used to reach out to the bulk buyers. Nike will create packages targeting bulk buyers such as a whole football team gear. The packages will be accompanied appealing discounts to the potential buyers. For instance, the football gear can come with a 15% percent discount on every item that makes the package. After creating enough packages to attract the bulk buyers, a section on the website for the bulk purchases will be created that will contain information about every package. The section will also contain the necessary tools to facilitate ordering and payment of the new packages.

After creating the bulk and purchases section on the website and ensuring that it is functional, Nike will create at least one short exposition video per package. The video will include the benefits of purchasing a particular package which will include discounts and gifts. For instance, a team’s gear can be accompanied by free gears for the team’s officials such as the manager and the medical personnel. The video will distributed via the three mainstream socialmediawhich are Facebook, twitter, and Youtube. One video explaining the common benefits of buying in bulk will also be created and be placed on the Nike’s website homepage.

The Digital Marketing Mix

Product

Most of organizations whether in the in the sports field or not purchase sports gears and equipment in bulk. The organizations in the sport area such as professional football and basketball clubs must purchase the items because they require them in their day-to-day operations. Most of big Organizations outside the sports field also have sports department and participate in various tournaments. Both categories of organizations spend a lot of money in buying sports equipment. However, major brands in the sports gear business have failed to create on line marketing strategies that target these kind of buyers.

Having identified the gap existing in the market, Nike will develop full team sportsequipment which will be categorized as packages to target the bulk buyers. The packages will encourage big organizations to purchase from Nike because they will ease the burden of the companies of having to purchase single items from different vendors. The companies will also be relieved the burden of having to visit or call physical stores or officesto make an order.

 Packages with items that require specific details on them such as names and measurements will provide an avenue for the customer to do so. The clients also will be able to specify the number of items to deducted or added to a particular package to improve their satisfaction. The effect of such changes on price and discounts will calculated instantly and be displayed to the customer. For every package, the site will propose a number of free designs for every item where the client will choose one for every item. If the customer is not pleased by any of the proposed designs, a section for file upload will be provided where they can upload their own designs for some or all of the items. The customers will also specify the amount of a particular package they are willing to purchase. If the customers face any difficulties in the process, they will invoke an online live chat where they can be guided on the particular process and any other issue. Afterspecifying the details about the packages, customers can proceed to place the orders and make payments online.

Price

Nike will create full team sports equipment and categorize them as packages. The packages will attract bulk buyers from organizations in and outside the sports fields. The selling in bulk will encourage mass production and shipment. Mass production will lead to an exponential increase in the amount of raw materials required hence give the company a chance to enjoy the benefits of buying in bulk which include discounts. After producing the goods, the company will also take advantage of the transshipping in bulk where they can also enjoy considering discounts.Nike will also be able to enjoy the benefits of economies of scale due their production, sale, and transshipment in bulk.

The benefits realized from handling the products in bulk will help the company to reduce the price of their products to highly competitive levels in the market. The reduction in prices will assist the company boost their sales hence achieve their marketing and business strategy.

Promotion

The reduction in the production, sale, and the transshipment prices will give the company a room to offer discounts and gifts. The company will create a discount scheme based on the size of each package whereby the more the number of items in every package will attract a bigger discount. The bulk sales will also increase the profit margins realized per an order hence enable the company to afford sophisticated on line advertisements. Nike will employ advertisement tools such as inforgraphics and videos. For every package, a video giving extensive information about it will be created. The videos will be aimed at giving the knowledge of the components of every package and the benefits of purchasing the package. One video detailing all the packages including the benefits of purchasing them will created.

Place

The entire marketing of the packages created by Nike will take place online. The company will their website and the mainstream social media to advertise the packages. The video detailing all the packages will be placed on the homepage of the company’s website for every visitor to view. The videos describing particular packages on the other hand will be uploaded on the mainstream social media via the Nike’s accounts. The three social media platforms that will be used are Facebook, twitter, and Youtube.

Implementation Plan

Control and Measurement

One of the techniques that will be used to measure the performance of the marketing strategy is the sales metric. Nike will be target to convert the top-of the-funnel numbers to customers, that is, influence the bottom-of-the-funnel results. The more the approaches used convert visitors to customers the more they will be considered successful. The manner in which the strategies fill the pipeline will be evaluated in terms of order place in specific duration of time. Increase in the number of orders in queue waiting to be worked on will also be a measure used to evaluate the efficiency of the marketing strategy.

Specifically, the increase in bulk buying will be the primary measure of the strategies used. Increase in the bulk orders in queue will be a positive sign that the strategies are functioning. The overall effect of the strategy on revenue will also be considered. A considerable increase in the revenues will be a confirmation of the effectiveness of the strategies applied.

The lead metrics or the middle-of-the-funnelwill also be used to evaluate the efficiency of the startegies. Increase in the number of visitors on the companies websites will also be a positive sign that the methods used are functional. Failure to affect the number of visitors will lead to the assumption that the methods applied have failed.

The number of likes on the videos uploaded on the three social media and the Nike’s website will be used to gauge their performance. The shares on the online videos on the social media will also be a measure of performance.

Appendix

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