nike marketing management case analysis

NIKE CASE STUDYPRESENTED BY:

ANURAG, BHARAT, CHETAN, DURGA, SINDHU LAKSHMI, SUNDARA RAJAN

ABOUT NIKE Nike, is an American multinational corporation that is engaged in the design, development,

manufacturing and worldwide marketing and sales of footwear, apparel, equipment,

accessories and services.

Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of

Oregon track athlete Philip Knight and his coach Bill Bower man in January 1964. from

1971 it is calling as NIKE .

Nike, head quarter is located in Beaverton, Oregon, US.

Nike is currently having 44,000 employees.

SPOKESPERSON FOR NIKE

MICHAEL JORDAN (US) - basketball - revenue $100 million.

TIGER WOOD (US)- Golf - build great customer relationships.

MARIA SHARAPOVA (Russia), ROGER FEDERER(Switzerland),

RAFAEL NADAL (Spain)- Tennis - revenue $10.6 million.

ACQUISITION AND DEACQUISITION BY THE NIKE

Company name Acquisition year

Cole Haan 1988

Bauer Hockey 1994

Hurley International 2002

Chuck Taylor All-Stars 2003

Starter 2004

Umbro 2008

ACQUISITION

Company name Deacquisition year

Starter 2007

Bauer Hockey 2008

Umbro 2012

Cole Haan 2013

DEACQUISITION

4 P’s OF NIKE PRODUCTSShoes, Jerseys, Shorts, Base layers for a

wide range of sports.Nike recently teamed up with Apple Inc.

To produce the Nike+.

PROMOTION1994-Victory of Brazilian team.2008-09- Hosted the Human race 2009-launched Tiger web talkback

session.

PRICENike uses vertical integration in pricing The pricing is based on the basis of premium

segment as target customers.Nike is giving 30% discount for law and

enforcement appreciation for the police officers.

PLACENike shoes are carried by multi-brand stores

and the exclusive Nike stores across the globe.Most of the factories are located in Asia,

including Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, and Malaysia.

WHAT ARE THE PROS, CONS AND RISK ASSOCIATED WITH NIKE’S CORE MARKETING STRATEGY?PROS: NIKE + (Plus) (Apple). Nike customer designing shoes..Sponsorship

CONS: High costs incurred in advertisement. Nike is not an eco-friendly product. Child labor issue.

RISKS

Being one of the major players in

the World Market when ever Nike

launches a new product it has to

make sure it addresses to the

concerns of the Global Market,

which is difficult to achieve.

ADIDAS Adidas AG is a German multinational corporation that designs and

manufactures sports Shoes, Clothing and Accessories.

The company is based in Herzogenaurach, Bavaria, Germany.

Adidas also produces other products such as bags, shirts, watches,

eyewear and other sports and clothing-related goods.

Focusing on European market.

IF YOU WERE ADIDAS, HOW WOULD YOU COMPETE WITH NIKE?

SWOT ANALYSIS FOR ADIDAS

STRENGTH Adidas has a high brand value among the consumer. Sponsoring major sports events including Olympics and sports team. Adidas product are available in world wide. Produces of wide variety of products. Strong work force. Customer retention ratio is high.

WEAKNESS

Price of the product is high.

It has been serving limited segments.

Cost structure of the company is high.

OPPORTUNITIES

Market penetration.

Developing new products to attract new customers.

Contribute to corporate social responsibility activity.

Strengthen its market position.

Expand customer base.

Merger and acquisition.

THREAT Strong competition (Nike and Puma).

Demand of the product could decrease due to economic slow down in

European countries.

Social and environmental concerns due to human rights violation and

employment.

Macroeconomic risk due to change in consumer expanding habit.

Technological and design changes.

PLAN OF ACTION

Focusing on R&D.Concentrating on emerging markets.Creating strong workforce.Develop products such as Sport wear, Sunglasses and Jewellery.