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Nike Running Shoes Marketing and Inventory Management Project

This paper discusses “Nike Running Shoes Marketing and Inventory Management Project” which is further divided into 2 parts for users to easily understand and differentiate between the topics.

Part 1 – Nike Running Shoes Market Analysis


Product Description

The product brand is Nike running shoes which come in different categories. This brand is a very reliable, supportive and durable fit that is an improved quality over its predecessors. It features an advanced and attractive fit that takes into consideration a 100% guarantee of comfortability. It is made flattened out, new, and a Dynamic Flywire, a typical strategy to keep it extraordinarily with great experience of relief and confidence. Its engineered Flymesh upper material makes substantial provision for pliability and solid support to also stand the test of time. It is definitely designed with a midsole that features a triple density foam provided with a Stock fit medial post to decrease over pronation and then provide a cushioned ride to enhance everyday training. This product comes in varying sizes to suit and fit in any size that needs to. Light weighted, durable, attractive and sophisticated.

Nike Running Shoes Marketing and Inventory Management Project

Nike Running Shoes Marketing and Inventory Management ProjectBranding is an important aspect of the market that creates and defines the identity of an organization, business or company. Building up a brand implies that an organization is taking on the responsibility of creating substantial value, brand visibility and desirability of a product. Brand is something that surrounds a lifestyle, provides customers with something to identify with, and then offer a product with meaning and considerable substance. The importance of Nike as a unique brand is narrowed down to how excellent they have refined themselves and their products, especially as an athletic and fitness company; not just like any other shoe company. Their logo has gone so globally recognize with respect to the quality of products they manufacture. Nike is that perfect exemplary company that has extensively translated the importance of producing, protecting and maintaining the brand they are building consistently. Their success have excellently thrived in dominance in the sport world with an exclusive brand image, and visibility that had given the company an extremely high value.

Nike Running Shoes Marketing and Inventory Management ProjectManufacturing this product is not as difficult as it appears. Though it requires intensive labor, quality materials and sophisticated technologies to manufacture this product. However, manufacturing this product is a result of an outsourced activity by some subcontractors around the world. Therefore, these factors definitely affect the cost of the product. But the quality is what is sold throughout the world.

Purpose of the Product Serve

The major purpose of this product is to provide the characteristics of shoes while performing athletic activities. Some of these purposes are:

To avoid blisters and other pains

Running with just any shoes will prompt some kinds of sores around the feet, and also result in a tendency of friction against the skin. The fact remains that wearing a running shoe for any athletic activity will definitely result in an adverse effect. But to prevent any kind of blisters or related pains  resulting in effects of sore feet and the legs, this product is manufactured to address these issues and ensure a safe use during related activities.

The best fit for the feet

This product is provided with a function of a snug and well-shape custom for the feet, this is because it comes in different sizes and it’s a best fit for any person, whether adult, teens, adolescents and kids. This product is also very light weighted and helps the feet carry without stress. Also, when people need a custom shoes to their feet, an in-store machine tests can be used to show the foot type to be sure what type of running shoe would be the best for that foot

Variations for the Product

The variation of this product occurs in different colors, sizes and categories.

  • For colors: The product occurs in Black/Cool Grey/Anthracite, Neutral Grey/Bright Crimson/Dark Grey, Black/White/Persian Violet/Ink, Black/Anthracite/Black, Black/White/Black, Pure Platinum/Game Royal/Cool Grey, Wolf Grey/Black/Dark Grey/Pure Platinum, Wolf Grey/White/Cool Grey/White, Midnight Navy/Neutral Grey/Dark Obsidian, Black/Lyon Blue, White/Court Purple/Yellow, White/Black/Lyon Blue/Bold Berry, Black/White/light pink/Retro, Black/Metallic Silver, Soar/Volt Green Strike, Bright Crimson/Black/Dark Grey, Vivid oink/Black/Pink Powder/white, laser Orange/Black/Bright Crimson, Black/Metallic silver/University Red, Red/Metallic Silver/Bright Crimson, etc.
  • For Sizes: The sizes are specific to the general custom sizes for a country, such sizes include US Sizes, Euro Sizes, and UK Sizes. The shoes are designed to fit for Men, Women, Grade School, Pre school, and Toddlers. In a more specific term, the sizes occur in Small, Medium, Large, Extra Large, etc.
  • The other categories of variation include the prices, weights, warehouse handlings, product information, etc.

End Users of the Product

The end users of this product are Men, Women, Grade School, Pre-School, and Toddlers. It is basically an athletic shoe, and mostly applicable for sporting events.

The retail price of this product ranges between $20 and  $250. For example, one of the running shoes for men called Mizuno Wave Inspire 12 Men shoes is sold for $120.00, another one called Nike Zoom Vomero 10 is sold for $139 and the other one for women is sold for $99.99 – Nike Free 5.0.

Nike Running Shoes Competition

Three Brands for this Product

There are many other competitions for this product, some of them are:

  1. Reebok
  2. Adidas
  3. Converse
What other Brands Offer

Reebok offers natural, incredible foot and leg articulations. Their minimalist shoes are of good quality, and are enhanced with the good components for athletic activities.

Adidas is another brand that offers running shoes, apparel, and accessories. Their products are for men, women, and kids. Also, they offer for sports, brands, customize and mlcoach.

Converse also offers running (Athletic) shoes, chucks, sneakers, clothing, eyewear, and boots. These are for Men, Women, and Kids.

Other Retailers that Sell the Product

My product is used internationally for athletic activities and there are many retailers who also make sales of this running shoes product. Some of these competitions include:

  1. Foot Locker
  2. Eastbay
  3. Finish Line
  4. Running Warehouse
What the Competitions Offer for Consumer Purchase

I have observed from these competitors that they offer outstanding quality images on their websites, attractive graphics, detailed description of the products, use of customer languages, best and affordable prices, free shipping aid, instant and available customer care services, reasonable money back policy guarantee and valid contact details.

Retail Price Range for the Competitions

The retail prices of these competitions vary with respect to the competition individual differences.

  • For Foot Locker, their running shoes range between $59.99 and $199.99
  • For Eastbay, their running shoes also range between $0 and $250
  • For Finish Line, their running shoes range between $0 and over $200

Forecasting and Seasonality

Product Seasonality

This product is a footwear, though it’s designed for athletic activities, which definitely makes it a seasonal product. But there are different seasons for athletic activities, which may vary with respect to sporting time in different locations. However, it depends relatively. We may assume it’s seasonal or not.

Importance of Safety Stock to the Product

Safety stock is very important to this product. There are very important issues that could warrant having safety stock. These are:

  1. Inaccurate Forecasting

The supply chain and manufacturing operation of the business of this product may be vary. Since I’m just a retailer and would always expect the products supplied from the brand. Therefore, sales process may not be integrated properly into the right management application. Furthermore, there may be a lack of accountability that is not up-to-date, other times, the data being entered may not be totally scrutinized by the management. Hence, when these occur, safety stock will help the business retain its life and efficiency.

  1. Manufacturing Shortages

Complaints may come from the manufacturer, on the accounts of shortage of raw materials, price inflation, shortage of labors, and high demand for the product. When these occur, safety stock would help balance the business.

  1. Transportation Delay

This is always a general excuse from different manufacturers. They tie this to so many reasons such as unexpected negative occurrences, breakdown of transportation vehicles, hurricane prediction, and related risks. Safety stock will guide against these factors and would keep the business running on.


At this point, this product is thriving very successfully in the market. Annually, the product sales are growing effectively and the rate of increase is tremendously reasonable. It had been observed that people find it very necessary to change their shoes as often as they could, most especially when it is constantly used for sporting activities. Nowadays, runners feel much better running with shoes that are light weighted and less cushioning, and this makes them seek to buy the best products that suit their desires and wants. Therefore, this product is really booming the market. #

I feel very happy to run the sales of this product, though there are challenges faced by many retailers of this product. This is a normal factor in the business world. However, the Nike running shoes are the best products to deal with. The statistics of the outstanding success of Nike from Forbes posts and other related posts have been fantastic. The quality of the product keeps helping it thrive successfully in the market. As a result, I’m good dealing with this product and will always ensure the ethics of the business is strictly adhered to.

Part 2 – Nike Running Shoes Inventory Management

Storing the Product

  1. Packaging the Item

A pair of Nike running shoes is stored in a shoe box. Often with an orange and brown box with a Swoosh. The box is made of a cardboard wrapped together, made out of recycled paper with water-based inks and does not contain any glues, staples, or coatings. It is provided with a small lid.

For the buyers, the storage of the running shoes is based on high volume with high frequency shipments. Shoes are stored in containers in order to allow the affordability of shipment. The number of shoes in each container depends and varies on what is required by the buyer. But on a general benchmark, a 20’ container could carry approximately 2,500-5,000 pairs of Nike running shoes. Also, the containers are pre-made, and often includes assorted colors, styles, and sizes as required by the buyers.

For the end consumers, a pair of shoes is stored in the box, and sold to directly. Also, buyers who require that the shoes be shipped to them, probably if they purchase it over the internet, then delivered it to them in the box.

Minimum order quantity of the Nike running shoes should be 2,500 pairs of Nike running shoes. This is because the container is 20’ sized and can conveniently occupy any quantity within the previously stated range. Additionally, for such size of a container, it will be necessary to carry a reasonable amount of quantity, though not necessarily a must to be up to 2,500 pairs per container, depending on buyer’s requirements.

  1. Impact of item to warehouse storage space

Storage of items requires the use of warehouses. Warehousing incorporates storage of goods depending on a large-scale in an orderly manner for easy accessibilities when needed. In the case when demand is not as good as anticipated, the impact this plays to an inventory management team can affect the business adversely. Some of the impacts include:

Increase in storage cost: When the large volume of those items remains in the warehouse for some time, there wouldn’t be space to store any more inventory. Most especially high levels of inventory, they lead to higher insurance costs.

Obsolescence: Manufacturers of items such as Nike running shoes produce different trends of shoes overtime, when the particular ones stored up are kept for too long, they may lose value and become old in trend.

Financial impact: This has a big financial impact on the inventory management team. Since demand is low, there won’t be good income to maintain the storage space, business, and personal living. Also, it would cost more having to keep items in stock for a longer time. Additionally, if items are kept for a longer time, it wouldn’t be possible to request for newer items.

Getting rid of the excess requires some strategies

Considering the inventory with an objective in mind will help. In order to achieve this, it is important to turn the stocked item into cash by recognizing that the inventory will become stale if it does not go, and therefore having it in mind that the demand for the item must go is the first step.

Taking the advertisement to the next level. One of the major strengths of business success is identifying the loopholes of a business and what is needed to earn success, aggressive advertisement will help pull traffic to the business.

Since the items are staying longer than expected, discounts can be placed on them. Along side with advertising, there could be a slash in prices to make which could pose as a promo price to help increase sales faster.

Intensifying keyword to the product title and description will help search easier online. Buyers online try to search for products before determining whom to buy from. Choosing the best key-words of the product title and description will help the item on the first selections on the internet, making it easier to be located.

Special Inventory Managing

Inventory managing is important to every business in order to scale up the business. The Nike running shoes business needs a special inventory managing for the following reasons:

  1. To track and fulfill the sales orders of the business promptly in order to make the customers happy.
  2. To scale up the business.
  3. To improve the accuracy of the inventory orders.
  4. It would help to create strategy to save time and money.
  5. Since inventory helps to keep repeat buyers, a special one will also motivate repeat buyers to advertise the item with word-of-mouth advertisement approach.

Product Life Cycle

The Nike running shoes have existed for many years and it had effectively passed through the developmental stages of the product life cycle. Therefore, it is in its maturity stage because it had thrived successfully in the market. Also, it is one of the leading product in its segment.

Product cycle is an explanatory subject that defines the swing between the activities in a product’s existence. A full understanding of product cycle enlightens me as a buyer of the development process of a particular product, whether to venture into it or not. This understanding also gives me the prospective livelihood of the existence of a product.

As important as inventory is, so is product life cycle, the knowledge of product life cycle affects inventory because the product life cycle may not be constant due to some factors that can affect the product. When there is fluctuation in the sales of a product, it could affect the daily stock inventory since most inventories are based on a regular order and delivery routines.

  1. Modes of Transportation

Nike running shoes are mostly manufactured from the Asian countries, but has shops around the world, particularly in the United States. The mode of transportation to convey those items to different parts of the world from the manufacturing factories is through the Air. While transporting the items to the warehouse for storing, and then to the final sales point will be through the Land.

As a purchasing and inventory professional, this information helps to put me ahead of time and helps to track exactly where the goods are at any particular time. It also helps to know exactly the weight of the items. Also, it would also help to plan for the budget involved in the shipment, and also understand the intending risks.

  1. Quality & the Environment

The Nike running shoes are provided with a warranty of 30 days of the shipping date. It could be returned through the websites or any accredited Nike store. During holidays such as between 10/31/ and 12/22, items can be returned within 60 days of the shipping date. This is important to keep consumers at rest on the quality provided and to assure them of providing necessary assistances to getting them what they desire.

Nike as a company considers the responsibility of their product with respect to the environment. Their products are environmentally responsible. Basically, Nike running shoes were designed to be used in the environment and therefore, comes in a quality unmatched to suit environmental factors. The importance of this is to maintain the primary purpose of a business – profit. In order to make profits, there must be provision of quality that matches any environmental factors.


This project had exposed me to the study of how products are stored and packaged for final sales. Business cannot thrive successfully if there are no measures prepared to ensure the proper management of product purchase and inventory. Warehousing is so important as it is the major storage of large volume of items, taking inventory of the daily stock will help to keep track of the sales of the business. This project also exposes me to the review the knowledge of product life cycle and its importance to inventory. Finally, in venturing any business, quality is important with a consideration of the final consumer and their immediate environment, this will keep the business at the maturity level of the product cycle and making it sufficiently profitable.

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