SUNILKUMAR M

REG NO: 20202MDM0016

NIKE CASE STUDY

1. What are the pros, cons and risk associated with Nike’s core
marketing strategy?
Sol: Nike follows the global fashion trends and is well known and
popular in the youth, hip hop; culture to supply some fashion products
as customers wants to fulfill their needs. Nike believes in “Pyramid of
influence”. Nike has contracted with many athletes and using celebrity
marketing as the core marketing strategy.

Pros:

 Nike always chose the most accomplished athletes and takes suggestions
from them for designing its products to them, which increase the profits.
 Nike organized campaigns and attempts to build Nike as a global
sportswear brand not in one or two varieties it is diversifying into many
sports utilities to increase the market.
 It sponsors players in the games for their brand promotions.

Cons:

 The Nike had always been focused on selling at prices but it never
thinks about moderate and lower class people about the price
distribution in the market.
 Its main focus is on the production of high products with cutting edge
technology.

Risks:
The way Nike sponsors the top players and matches by spending huge
money of the company and also selling their products at higher prices this
continues changes in the demand and choices of the consumers and also
environmentally conscious consumers they think twice before investing
in that brand, as they would not be aware of the eco-friendliness of the
products.
 2. If you were Adidas, How would you compete with Nike?

Sol: If Adidas compete with Nike the following strategic will be useful-
 Adidas should focus on sale of the products at higher and as well as
lower prices, then moderate and lower class will also show interest in
buying the products and it will increase the sales and acquires profits.
 Adidas should invest money in the promotion and advertising rather
than sponsoring the players and the matches.
 It should focus on producing wide varieties of products according to the
modern styles and needs of the consumer.
 Asia and South America are some of the major markets that have still
not been used by Nike, so Adidas should enter into these markets to
acquire huge profits.
 The products should be environmental conscious, where consumers will
show more interest in buying those products.