ALLYAH PAULA A.

POSTOR MKTG 2216

BS ENTREP 2-2 CASE LET #1

QUESTIONS:

1. What are the pros, cons and risks associated with Nike’s core marketing strategy?

 Pros – Nike put heavily proportion in their marketing strategies and products design. In
order to sustain their dominance in the industry and retain their competitive advantages,
Nike actively responds to the market trends and changes in consumer preference by
adjusting their marketing strategies, the mix of existing product offerings, developing
new products, styles and categories, and influencing sports and fitness preferences
through various marketing strategies. Nike clearly defined their target market which are
the athletes, sports enthusiasts, well off and brand conscious customers that makes it easy
for them to make target-centric ad campaigns. It uses geographic segmentation to
promote its products and brand.
 Cons – Although Nike's marketing strategies had brought lot of positive implications to
the company, it brings negative implications too. The negative implications that will
identify are high cost incurred, influence of spokesperson, and competitors. It mainly
focuses on producing high-products with cutting edge technology and sells them at
competitive prices. It does not communicate to the middle class and lower-class society.
 Risks – 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, brand image, and customer
loyalty. Intense competition and the influence of spokespersons poses a risk to their
strategies. Also, ever-changing demands and choices of the consumers along with the
international expansion poses a risk to their strategies.
2. If you were Adidas, how would you compete with Nike? 

If I were Adidas, I will compete with Nike by focusing on their weak points. I want to
introduce a variety of products to the market, which will help to popularize them among
customers directly through their products. Investing the profit increases in some creative and
well-known commercials will be a fantastic ground-breaking product to gain a competitive
advantage over Nike. I'll focus on developing innovative products and devising new marketing
strategies for Adidas. I'd make a new product with a smart feature that could compete with
Nike+. Apart from keeping track of mileage, this product might do a lot more. They can give the
user advice how to maintain their health, warning about their bad habit or health problem, and
also give some suggestion about running for user. Keep lower price than Nike with the same
quality to attract customer. Nowadays, brand is not the only thing that customer is looking for.
They looking for product that have low price with best quality, because of consumers buying
power so if Adidas could use this to compete with Nike, they will gain some advantage. Instead
of invest a lot of money in marketing like Nike. Adidas could spend money in some campaign
like running for the poor people in that they could offer their product with a discount price, also
most of the profit from that campaign goes to the poor people. This will make them build their
brand image to compete with Nike. Adidas will allow customers to customize their products on
the website and enable them to do so by allowing them to enter a program in which their design
would be chosen as a limited edition if it is the most creative customize design. With this, I
believe Adidas will be able to compete with Nike.