Nike is a giant multinational company that is engaged in the development, design, distribution related to professional footwear, sport accessories, equipment and services. In 1979, Nike officially introduce its Air Cushioning Technology which many Nike Air including Air Max (1987), Zoom Air (1995), Tuned Air (1998) and Air-Sole shoes use nowadays. Nike Air shoes came out very successfully thanks to their realistic characteristics such as lightweight, cushioning, versatile and durable and great supports from the reputation of Nike’s brand (Nike Canada 2007). In addition, Nike also gets positive reaction from media and public in Vietnam due to high-quality products. Furthermore, Nike Air shoes to which Nike applied the exclusive Air technology are different from any competitors in market since. The target of Nike Air in Vietnamese market is middle-class and upper-class with a variety of age from 18 to 35, especially people who have relative high income (above 15 million VND) and desire lifestyle shoes. In addition, Vietnamese begins use shoes as main footwear at work, at school or when they play sport, so Nike will have many potential customers in Vietnam. Moreover, the Government of Vietnam always welcomes the positive investment from foreign company. As a result, Nike may find more chances to expand the business in Vietnam market. Nike is a very popular international brand known as designer, producer and distributor of quality shoes as well as sport gears designed for athlete (Nike Corporate Responsibility Report 2005). Therefore, Nike takes advantages of that to continues to apply the marketing strategy “more for more” in which the company sell high-quality shoes at high price to Vietnam market. Nike keep using the quality as their strongest competitive advantage which help them to maintain the position in market. As a result, Nike will sold Nike Air shoes at high price.
At the end of 2012, Nike is the leader in footwear market in Vietnam with over 1% value share (Euromonitor 2013) followed by two biggest competitors: Binh Tien Dong Nai Imex Corp and Adidas Vietnam. The position of Nike in Vietnam footwear market is promoted by many loyal customers who love the popular logo “swoosh” and want the high-quality shoes. In addition, Nike brand is very popular thanks to its favored mission statement: “To bring inspiration and innovation to every athlete in the world”. Furthermore, Nike begins open more outlets to maximize their sales and to increase brand awareness of Vietnamese in recent years. This report will investigate and analysis the situation of Nike through its popular product called Nike Air in many segments in Vietnam market as well as microenvironment and macro environment. Company analysis:
Nike Inc which has headquarter placed near Beaverton, Oregon, USA was established in January 1964 originally named as Blue Ribbon Sports (BRS) by a mid-distance runner, Philip Knight, and his coach Bill Bowerman. Nike focus on producing sport gears like clothes and equipment, for people with the statement: “To bring inspiration and innovation to every athlete in the world”. Not only having the largest market share in the world, in Vietnam, by comprising 1% of footwear market share in 2012 (Euromonitor International 2013),to dominate the Vietnamese sport footwear market. At the moment, Nike are still developing in Vietnam, and running their shops quite well in the country. Product analysis:
Nike Air line brand with Air Cushioning Technology was first introduced in 1979. Nike embedded Air Cushioning, which was more durable than foam-based cushioning, in the midsoles of their shoes. There are four main advantages of Nike Air: lightweight, versatile, cushioning and durable. Up to now, Nike provided many Air products including 3 popular sports: athletics, tennis and basketball. All of these attractive designs shoes are suitable not only for sport activities but also for...
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