Approach Nike to Kenya

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MARKET APPROACH KENYA
NIKE

JUST DO IT

Project Nike – Kenya

Ada van Eck – 1531924 Daan van Harten – 1534013 Pauline van der Hoog – 1527744 Melvin Vennema – 1560501

Tallam K. Zakayo Cheruiyot K. Albert Korir Peninnah

Group 4 Teachers: Paul Jaspers Henk Penseel

3 December 2009

Nike

Kenya

2

Preface
December 2009 On the 18te of August off this year we have had a mail. That our school was looking for motivated students with ambitions to work on an international project. The project was to make a market-entry strategy for Nike to enter the market in Kenya. The name of our project is “The International Sport Bridge Project for Nike”. We have made a group of four persons Melvin Vennema, Daan van Harten, Pauline van der Hoog and Ada van Eck. To make this project successful we had assistance of students of the MOI University in Kenya. Under the guidance of Paul Jaspers we created a Market approach for Nike. This report will give you many answers for a Market-entry Kenya. We like to thank Hans Koeleman, (Brand Manager Rapidly Emerging Markets at Nike Europe) for his presentation, Paul Jaspers for the lessons, the Kenyan students for their information and in particular Anthony Hanningtone for the information we needed out of Kenya. We hope you will enjoy our report, Ada van Eck Daan van Harten Pauline van der Hoog Melvin Vennema

Nike

Kenya

3

Management summary

Nike Apple Nairobi – Hilversum city run
Nike is the world‟s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. For Nike is the Kenya market a new chance for success, and with our idea of a Nike Nairobi Hilversum City Run‟ could be the opening of a good market approach for Nike in Kenya. The first line of footwear is established in 1972. Since then, Nike has become a very popular brand which is known all over the world. The mission of Nike is to bring inspiration and innovation to every athlete* in the world. Besides, Nike has formed a Customer service mission, which is to represent the highest service standard within and beyond our industry, building loyal consumer relationships around the world.1 This mission is worked out in a strong strategy and together with the strong brand portfolio, Nike has got a perfect place in the market. The logo, slogan and endorsement contracts underline the position of Nike and are part of its Unique Selling Point. When we look at the external environment of Kenya, then we have got some positive and negative issues to deal with. First of all, the life expectancy of Kenyan people is very low and the number of persons infected with Hiv/Aids is pretty high. On the other hand, the future looks better. Kenya is getting more popular for tourists and the economy is the most modern one in the East of Africa. Kenya is a country with a lot of cultural traditions and habits, which influence the lifestyle. The communication and infrastructure is not that good developed, but it‟s getting better. New techniques are not very common, but the population is very open to accept new technologies. The poor infrastructure is partly due to the fact that the rain creates damaged roads which are hard to drive over. Furthermore, there is a lot of corruption in Kenya, also in the politics. For many sport brands is an introduction a big chance for a bigger take-off but during this economic hard times, not a lot of sport brands will enter the Kenyan market. Substitutes are a threat to Nike, because the Kenyan people might spend their money on other products and not on sporting clothes and shoes. Due to this, the Kenyan people who can be the buyers have a lot of power. The suppliers of Nike are not able to force things, since Nike is too big and has too much power over their products. The competitors are a big threat to Nike. Looking at Adidas, Reebok, Puma, Asics and Fila, these brands also put a lot of effort in...
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