Nike’s Market Audit Essay

The merchandise audit is a fundamental part of the merchandise planning process. It is conducted not only at the beginning of the process, but overly at a series of points during the implementation of the plan. The merchandise audit considers two internal and external influences on marketing planning, as well as a review of the plan itself. Marketing inspect considers the introductorys of the marketing audit, and introduces a marketing audit checklist. The checklist is designed to answer the query, what is the current marketing situation?Marketing audit could be considered under three rudimentary headings * The Internal Marketing Environment. * The External Marketing Environment. * A Review of the underway Marketing Plan. Where is the business concern sector now? is a core marketing interrogative mood as it is concerned with how the business is performing in its marketplace. To answer this question one of the primary activities of the marketing function in a business is to undertake an audit of the market for the business. Once this question has been answered then the business kitty take decisions over setting and implementing their strategies to overcome the anticipated challenges. today lets have a look at the way the companies, that had been selected previously to exemplify the Marketing mix, are conducting the Market visit to achieve their goals Nike Nike operates its business deep down the sports footwear and apparel market. Originally designing and producing running shoes, their portfolio has broadened to include a wide range of sports and leisure wear. This is all endorsed by top sportsmanlike personalities and has gained a faithful reputation among them. Mission statement of NikeIn its commission statement Nike expresses that it requires doing business in a responsible way, leading to sustainable financial growth. With the advances in technology, HR practices, the well informed and trained spiel force, there is very little left to variousiate organizations. Being seen to go further than the minimum required on social issues can get out and retain customers. This green cleansing attracts attention to the organization they are viewed as caring and social responsible (Mullins, L. 2005). In a marketing enquiry done by the federation the following blemishes could be revealed.A report, on the business practices of Nike through its supply chain accused the organization of existence involved in poor working conditions, violations of labor rights, low recompense and harassment of its workforce. Nike takes these reports seriously. On the basis of the research findings the friendship has intensified the monitor of its suppliers and right away did take actions and implemented to rectify the flaws. This is the importance of an Audit to a company to maintain its standards and the good reputation. * Internal Marketing Audit * Value chainNikes supply chain provides a actualize view of the extent of the global nature o f the company. Nikes headquarters are in America however, virtually all of its harvest-timeion takes place out-of-door of the United States. Nikes supply chain upstream begins with the materials used in the ingatheringion of its products. Many of these materials used in production are uncommitted in the locations which the manufacturing takes place, but some specialized materials have to be merchandise to the manufacturing company. Now lets take a look at how theyve overcome their challenges by getting the aid of an internal marketing audit considering two instances. early(prenominal) options Outsourcing of all production Rationale Reduced costs prospective Options source with stronger control Rationale Speed up reporting of any problems in production, the supply chain, the greater the distance the slower the reporting of problems Critical achiever Factor Reduce problems associated with distance, i. e. quality, consistency and value Change of center Although dormant outsou rcing, they would gain more control over production. Past options Target the States Rationale Demand and growth for footwear in the US was rapid. Future Options Future option is to enter EU markets Rationale To expand into increment markets as US is near saturation. Critical Success Factor entire growth as well as by acquisition, also label name, goodwill- therefore there is a match is CSF to succeed Change of Focus Maybe have to target marketing in a different way * Portfolio analysis in current product (BCG Matrix) The BCG matrix method acting is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit.To ensure long-term value creation, a company should have a portfolio of products that contains both(prenominal) high-growth products in need of cash inputs and low-growth products that buzz off a lot of cash. It has 2 dimensions market share and market growth. The basic idea behind it is that the bigger the market share a product has or the faster the products market grows the better it is for the company. Placing products in the BCG matrix results in 4 categories in a portfolio of a company 1. Stars (high growth, high market share) use large amounts of cash and are leadership in the business so they should also generate large amounts of cash. * frequently roughly in balance on net cash flow. finished the BCG analysis for Nike, what has been revealed is that Nike is established within its markets, benefiting from economies of scale. And this places them in the Cash Cows socio-economic class on the Matrix. Where the Cash cows market growth has slowed, and the products hold a fairly stable market share. * External Marketing Audit * large Environment PESTEL This will consider the influences of about six factors on the organization, both in the past and with future strategic plans. Following information could be gathered about Nike through a PESTEL analysis I. Polit ical ) liaison dock workers b) Political unrest in the production countries.