Case Study on Nike (Marketing)

Topics: Marketing, Brand, Nike, Inc. Pages: 5 (1533 words) Published: August 6, 2013
Nike is a major publicly traded sportswear, footwear and equipment supplier based in the US which was founded in 1962 originally known as Blue Ribbon Sports. Nike is the world leader in the manufacturing of sportswear and gear with more than 47 market shares across the global. Nike produces a wide range of sports equipment such as running shoes, sportswear, football, basketball, tennis, golf, etc. Now Nike follows the global fashion trends and is well known and popular in the youth culture and hip hop culture to supply some fashion products. Nike recently teams up with Apple Company to produce the Nike+ products which can monitor a runner's performance through a radio in the shoe that can link to the iPods. Besides that, Nike also becomes the top of three companies which are climate-friendly companies which build better image to customers. Nike's excellence marketing strategies are their energy to achieve their market goals. Nike believes the "pyramid influence" that the preferences of a small percentage of top athletes influence the product and brand choice. So Nike contracted with many athletes' spokesperson, professional teams and college athletic teams to advertise and promote their products to customers. Nike seriously pay attention on the technology producing, design and selling such as e-commerce, high-tech running shoes, Nike+ with Apple, etc. Nike outsourcing their products most of the factories are located in Asia such as China, Indonesia and India.



Nike has a high –cost product that everyone could not afford the product. Nike does not also promote efforts eco-friendly product they want always been about winning and how is sustainability relevant to its brand.

The objective of this case study is to know what are the advantages, disadvantages and risks associated with Nike’s core marketing strategy and how Adidas would compete with Nike. These problems concerning with Nike will help their company on what strategies they will be needed in order to sustain their needed target market and how can they compete with their competitors. AREA OF CONSIDERATION (SWOT ANALYSIS)

Nike faces many risks when they use their core marketing strategies to achieve their goals and these risks can come from both internally and externally environmental circumstance. The risks will have a negative influence about Nike's future development, for example, the market share in the world, reputation, and brand image and customer loyalty. Nike needs to stay on the top of changes in consumer taste and preferences as evidenced by changes in fashion. The changing in fashion and customers' preference had brings negative effect on its marketing strategies. Hence, Nike should introduce new products to maintain its customer loyalty as well as attract new customer markets. However, it will also have negative implication if Nike's implement new products rapidly. Strength

The first strength is the product’s strong brand recognition. Almost all people know the brand Nike and its logo, and usually even without the brand name the customer can still recognize the brand by looking at the check ü or “swoosh” logo. The second strength could definitely be contributed by its distribution. In the U.S. alone, there are around 18,000 retail accounts and outside the U.S. there are around 30,000 international retail outlets that sell Nike products. Nike also operates a “futures” program, wherein retailers can order up to six months in advance. They sell their products through independent distributors in 200 countries around the world. The next strength could be attributed to its research and development. They have a team which observes athletes in order to provide them with the latest technologies in footwear and apparel. Since Nike contracts with foreign manufacturers to produce their shoes, the company does not really require a huge investment in machines and equipments,...
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