Professional Documents
Culture Documents
Question 1:
This case discuss about marketing strategy of Nike and how it established its
dominance in USA market (50% market share) and promotes their brand with athletes.
There are some strong strategies which helped Nike to gain such success in footwear
industry. Here are some Pros of Nike core marketing strategy-
Athlete Endorsement:
Nike always tried to choose athletes who dominates the sports world with sheer talent,
hard work and ambition which actually reflects company’s own values and image. As
a result they easily convinced consumers and achieved continuous profit from their
campaigns
Identifying Opportunities:
Nike capitalized every opportunity along the way with sheer grit. An example of how
they capture Asian market utilizing Olympic held China is a great example of such
capturing every opportunity. Another example is how they went for exclusive
partnership with a tech giant like Apple, which is definitely a smart move from
business point of view. Also arranging only global virtual marathon shows company’s
strength in adaptability and innovation. This certainly creates long lasting impression
on consumers mind
However, every strategy have its own weakness as well. Nike is no different to that.
Here are some cons that effected Nike along their successful run-
Controversial Athletes:
Tiger Woods and Lance Armstrong are two athletes who shocked the whole sports
world with their controversial activities. So it’s imperative that their controversial
image had an impact on Nike’s brand image as well.
Focus on Winning:
Nike’s focus has always been on wining. As a result the work they put in behind
sustainable solution/eco-friendly solution is never on the front page. It’s more of a
behind the door approach. There is a strong notion among the organization that eco-
friendly/ recycling will tarnish their current image
The non-focus on sustainability or eco-friendly product is also the risk associated with
current marketing strategy. The continuous effort the retain the high tech image
among the consumers may be hindrance when it comes capturing the consumer base
who are looking for environment friendly products. As their effort behind creating
eco-friendly product is not being promoted by company itself.
In conclusion. Nike has always been successful in understanding market demand and
trend. They always captured the right opportunities, endorsed celebrities with diverse
background. However they should have more campaigns which will portray their
continuous effort behind building a sustainable solution for environment.
Question 2:
Adidas is another popular name in the sports world with a huge number of athletes
promoting their brand from different sports as well. However to combat against Nike
there some opportunities Adidas need to capture-
Regional Sponsorship:
It is imperative that Nike is trying to create dominance in Asian market with huge
population. Huge population indicates huge consumer base. From the case it’s
imperative that there is a huge untapped market in Asia and Latin America. Adidas
needs to come up with an campaign to bring those consumers under their platform.
One easy step will be sponsoring regional sports team. Local team getting sponsorship
from international giant will sure gain massive customer base from those areas.
Football clubs from china and Latin America are good start. Furthermore they can
sponsor regional sports events as well.
Focusing on Sustainability:
People now days are more aware of environmental impacts created by the goods,
products they us on regular basis. More and more awareness, discussions are taking
place on how we can preserve our nature. Eco-friendly products are gaining more and
more attractions from consumers. While Nike is taking more of a behind the doors
approach, Adidas should come up with a full frontal campaign strategy on
sustainability and environment friendly products. This will not only bring positive
brand image but also huge success among consumers who are looking for eco friendly
products
Customized Offer:
By allowing customers to customize their products before purchasing the product will
give customers a wide range of selection and will help Adidas to gather data regarding
customers demand and will help them to understand the current fashion trend. This
will enable Adidas to bring further innovation in their product design. This will not
only give their customers sense of satisfaction but also create a huge loyal consumer
base i.e. more profit.