Nike and Google Case Study

Topics: Google, IPhone, Mobile phone Pages: 3 (891 words) Published: February 16, 2013
Marketing Management
What are the pros, cons and risks associated with the Nike’s core marketing strategy?
Nike’s core marketing strategy is tag lined as “Pyramid of Influence”. This marketing strategy helps Nike gain competitive advantage over the competitors. Nike’s core marketing strategy is tag lined as “Pyramid of Influence” Nike heavily depends on the successful athletes for marketing and selling its products. Professional athletes such as Tiger wood, Michael Jordan, Lance Armstrong and many other influential athletes. Nike believes that by teaming up with the influential athletes they can enter into the mind of consumers. As there are many advantages of enlisting high profile athletes to sell products, there is also negative impact on this. In 1994 Nike teamed up with Brazil national team and gained popularity only because Brazil had won the cup. If Brazil had lost the tournament, the outcome would have been totally different. The action and attitude of Nike’s chosen spokespersons could bring the impacts on its promotional strategies. For instance, it will attract the fans of a high profile athlete to purchase the products if Nike uses the athlete as endorser. On the other side of the coin, if the athlete were caught in drug addicted or any immoral attitude, it will impact the customers not to buy Nike’s products. As a result, Nike’s sales, revenue and profit will be severely hampered. The risks involved of Nike’s core marketing strategy are not many, but though few, the impact of the risks are costly. One of the risks on its core strategy is to stick to the idea on depending too much on the high profile athletes. This strategy is beneficial but costly. It generated Nike an immense profit. However, consumers are now more conscious and in future they may not be influenced by an athlete. They may prefer to buy products they think is suitable to them. * If you were Adidas, how would you compete with Nike?

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