Title Page

The proper situation analysis is essential in nature as this is one of the most effective collection methods which is utilised by the managers to analyse the internal and external environment of the organization effectively. This will help in analysing the different capabilities of the organization along with identification of the business environment.

Analysis of the Foot Locker Organization

Foot Locker Retail Inc Organization is defined as the American footwear and sportswear retailer in which the headquarter of the company is situated in Midtown Manhattan, New York city. Furthermore, the company is operating in more than 28 countries in the entire world and the company was founded in the year 1974 (Team, 2013).

Additionally, the company operates in as the chain of athletic footwear retail outlets and the number of employees working in the respective organization includes 15141 employees who are working in the organization full time (Moutinho & Vargas-Sanchez, 2018). Lastly, this has been seen and noticed that the company is in good position in the entire market and this has helped them in increasing their brand image. Foot Locker had experienced largely positive year since the beginning of 2014 and this has affected the revenue of the company in a positive manner.

SWOT Analysis of Foot Locker

            With the help of SWOT analysis, the potential strengths, weaknesses, opportunities and threats of the Foot Locker Company can be analyzed in an effective manner. These factors will help in analyzing and identifying the various types of issues which are faced by the company and this will help Nike in gaining knowledge on position of Foot Locker and solve the differences in an effective manner.

Strengths

• Foot Locker has strong management team
• There is proper brand recognition of the Foot Locker
• There is strong relationship with Nike Inc. and this helps Foot Locker in managing the different trust of the customers and this will keep close business relationships among the different customers in the market (Vogel & Güttel, 2013)
• There is global expansion of the respective company
• The company has strong website presence and this has positive impact on the company as well
• Furthermore, Foot Locker has different kinds of sports apparel brands as well
• Consumer loyalty is high in nature

Weaknesses

• Foot Locker is overly dependent on Nike Inc and this is one of the negative aspect of the company (Williamson et al., 2013)
• Poor R&D is the other element which is creating negative impact on Foot Locker
• The prices of the different footwear products are high in nature in comparison to the other companies in the market
• The advertising is poor in nature which is affecting the entire brand image of the company in a negative manner (Morschett, Schramm-Klein & Zentes, 2015)

Opportunities

• The company has the scope of targeting different age group customers in the entire market (Wood, Wrigley & Coe, 2016)
• The other scope is related to the celebrity endorsements which can be beneficial for the company which will assist the company in expanding their brand in the international markets as well
• The Foot Locker Company includes the different other products and they have the scope of expanding their product offerings for the customers with inclusion of the different innovative technologies (Merat & Bo, 2013)

Threats

• There are different other kind of substitutes in the entire market
• Furthermore, there are different other entry of the companies in the market and this affects the brand image and sales of the company in a negative manner (Martinsuo, 2013)
• There is increase in the number of competition in the market and this is negative aspect for Foot locker as this is decreasing the sales of the company in a negative manner
• There has been continuous increase of the fake products in the market which is causing decline in the profit of the company negatively (Wheelen et al., 2017)
• Positioning Grid

With the help of the positioning map, this can be analyzed that Foot Locker has been positioned as the most expensive brand along with high rate of the customer satisfaction as well. It has been noticed that there are different other competitors in the entire market which can be a threat for the company and this will be managed by Foot Locker by applying the opportunities as their strengths and this will improve the overall marketing strategy adopted by them (Right, Paroutis & Blettner, 2013).

Additionally, this has been seen and analyzed that there are various other issues such as the advertising options are low in nature which affects the brand image of the company. Nike can sell the Air Force Shoes in the market with the help of analysis of the stock price and this will provide a view on the different kinds of surge in the sales amount in the organization (Lasserre, 2017).

Multi-Attribute Model of Foot Locker

Attributes	Importance	Foot Locker	Nike
		Rating	Score	Rating	Score
Quality	9	3.00	27	4.00	36
Design	8	4.00	32	4.00	32
Price	9	5.00	45	3.00	27
Popularity	8	6.00	48	2.00	16
Trusted	9	5.00	45	5.00	45
Authentic	10	4.00	40	4.00	40
Total			237		196
Rank			1		2

Products and Service Solution

            There are different issues faced by the Foot Locker Company which includes that the promotional strategies of the company are weak and this affects the entire productivity of the organization. Nike can help Foot Locker Company by selling the Air Force shoes to them as this will assist the client company in managing the different kinds of differences effectively (Johnson, 2016).

Table of Contents

Products and Services of Nike

            There are different kinds of products which are being sold by Nike that includes different categories such as lifestyle, gym and training, running, Basketball. Football, Cricket along with Tennis (Kalkan & Bozkurt, 2013). There are different brands which are sold by Nike that includes Jordan, NikeLab, Nike Sportswear and they provide the different types of water resistant and cold weather shoes which will be comfortable for the individuals who will be purchasing it. The versatility is the main factor which is present in Air Force shoes and this helps Nike in gaining more competitive advantage in the entire market.

            Furthermore, there are different kinds of services provided by Nike that includes they offer risk free product trail for the customers and this has helped them in increasing the competitive advantage in the market. Furthermore, trail run is offered by Nike and this helps the company in gaining stronger customer base in the market. There are different other products of Nike which includes sports attire along with various accessories and this inspires the sports inspired lifestyle eyewear and protective sports equipment as well (Adams et al., 2017).

Benefits of Products and Services of Nike (FAB)

            There are different kinds of benefits which are being offered by Nike to the customers in the market and this is the main reason, Nike is the most popular brands which are being selected by more than 85% of the customers and there are huge celebrity endorsements in this brand which has created huge popularity and this has benefitted the customers in the entire market as well (Armstrong et al., 2014).

The benefits provided by Nike to their customers include the different kinds of satisfaction on the face of the customers post the purchase of the products of Nike. Nike shoes help in preventing the foot injuries and this is main reason for popularity of the Nike shoes and the main feature includes the protection of the feet while participating in any kind of sports (Baker, 2014).

            Secondly, the brand image is the second benefit which is provided by Nike to their customers as this will attract many customers to purchase the products and gain more competitive advantage in the market. It has been seen and analysed that the brand image has created different attributes which helps the company in gaining more profitability in the entire market. Nike shoes are lightweight and durable in nature and the flexibility is huge in nature as well (Gronroos, 2016).

            Thirdly, Nike provides the different customers with free trial for the customers which helps the customers in trying for themselves. Furthermore, the attires and the other products which are sold by Nike are long term in nature as in the clothes or the other products are of best quality and there is no such compromise made regarding the quality by Nike and this helps them in maintaining a strong brand image in the entire market appropriately (Holliman & Rowley, 2014).

Executive Summary

            Fourthly, the products which are sold by Nike are sold to customers at a high price, however this is worth buying and this includes value for money (Kotler, 2015). The customers are satisfied with the products and services provided to them by the company and this helps the company in managing the different other demands of the customers in an appropriate manner (Hsu, 2016). These are the feature advantage benefits provided by Nike in which it has been seen that there is different other popularity of the Nike shoes which help in managing the popularity effectively.

Specifications of Air Force Shoes to Substantiate Offering

            There are different specifications of the Air Force Shoes which are offered by Nike in order to substantiate the different offerings in an effective manner. The different specifications of the Air Force shoes include the following:

• Mid top silhouette with proper ankle strap for secure lockdown
• Leather and textile upper for the premium kind of fit and durability
• There is Nike Air cushioning for comfort which helps the company in gaining competitive advantage (Krishnan & Malick, 2015)
• Non-marking rubber outsole for durability and traction
• There are different metal tags on the different laces which helps in reading AF-1-82 which helps in honouring the debut of the shoes

These are the different features of the shoes which are provided by Nike Air Force shoes and this helps Nike in selling the respective product to Foot Locker and this is advantageous in nature for Foot Locker as this will help them in gaining more competitive advantage. Furthermore, this is seen that Air Force Shoes are popular in the market and while Nike sells the Air Force shoes to Foot Locker and this helps them in managing their popularity and brand presence effectively (McDonald & Wilson, 2016).

Solution that Fits with Client’s Business Goals

            There are different core business goals of Foot Locker retail shoe company which is required to be managed by Nike by providing and matching the same goals effectively. Firstly, the main goal of the company is to provide high quality shoes to the customers with proper and average pricing technique. Furthermore, the excellence is the other goal which is maintained by Nike wherein this will foster new ideas and this will gain more competitive advantage.

Nike needs to maintain the same with the implementation of the proper pricing technique which helps in managing the different kinds of pricing of the products as this is required to be adopted by Nike as the main vision and core goal of Foot Locker is to improve the experience of the customers in an efficient manner.

Supporting Services

            There are different supporting services which are required to be maintained by both Nike and Foot Locker that includes the following:

Warranties and Guaranties

            There are specific warranty and guarantee written on the different products of Nike and the same has to be done by Foot Locker as this will help the company in managing the image.

Help Desk

            The help desk of Nike is strong and the customer service executive helps the customers in solving their different queries within the next 24 hours of the query being dropped by the customers (Moutinho & Vargas-Sanchez, 2018).

Return Policy

            The merchandise can be returned for refund or the merchandise exchange within 30 days of the original purchase.

Training and Costs

            There are different kinds of training provided to the employees as this will help the company in managing the different kinds of activities which are undertaken by them. Furthermore, the costs associated with the purchase is required to be analysed effectively which will help the company in managing the sales of the company.

Situation Analysis

Installation, Material and Transportation Costs

            There are different installation and material along with transportation costs which are required to be analysed by Nike and Foot Locker in managing the different issues in an effective manner.

Pricing and Financing

            The cost to the client includes the original cost of the shoe along with the implementation of the different costs associated with the same. The costs which is associated with it is realistic in nature and Nike offers the products at a higher price in comparison to the other competitors in the market. The level of discount provided by Nike to Foot Locker is high as this helps the company in gaining profitability in the market.

            Furthermore, the different financing terms applied by the company in the purchase of the products includes:

• Term Loan
• Line of Credit
• Refinance

Marketing and Promotional Strategies

            Promotional activities are defined as the inclusion of the advertising of the products or the service or the brand in the newspaper, radio, television along with online strategies as well.

            Potential Co-branding activities which are required to be undertaken by Nike and Foot Locker includes the different celebrity endorsements along with sponsorships provided by them to the customers and this attracts the customers in an effective manner as well.

            Public Relation is required to be maintained in an effective manner and it has been developed by Nike in which they try to advertise their products with the help of social media and this will increase the sales of the products in an appropriate manner.

Co-op advertising is essential and this is required to be followed by the companies which will help in cutting the media costs and this will increase the creativity of the company as well.

Guerrilla Marketing is essential in nature and this is followed by the companies in which this will help them in advertising their products and services in unconventional manner with little budget and this will be beneficial for the company effectively.

Implementation and Timetable

Activity
M Jan	M Feb	M Mar	M April	M May
Delivery of the Product	ü
Training Provided to the Employees	ü	ü
Promotional Activities		ü
Potential Co-Branding Activities public relations		ü	ü	ü
Co-Op advertising			ü	ü
Gorilla Marketing				ü	ü
Follow Up				ü	ü

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