Nike follows the idea of 'pyramid of influence'.

It creates its brand image by

positioning itself strategically and using celebrity marketing as the core
marketing strategy.
Pros: distribution, advertising & promotion, price, market segmentation
- A clearly defined target audience which comprises of athletes, sports
enthusiasts, well to do and brand conscious customers. This enables
them to take up target-centric ad campaigns. It appeals to their
emotions; this helps to promote it as a brand of allegiance and loyalty.
- A strong distribution channel: Geographic segmentation is used to
promote its brand and products. It delivers only one kind of product.
- Nike always chose the most accomplished athletes for endorsing the
brand, which ensured profits in millions
- The numerous campaigns and attempts to build Nike as a global
sportswear brand not limited to just one or two sports were massively
successful.
- Strong PR that deals with scandals
- Technological strength Nike+

Cons:
- Its main focus is on the production of high products with cutting edge
technology. It concentrates on selling them at competitive prices. The
lower and middle classes in the society are not given much
importance.
- Nike's brand image suffered considerably due to its association with
controversial athletes such as Tiger Woods and Lance Armstrong.
- The brand strategy had always been about being the winner, and little
focus had been laid on being sustainable.
- the price of Nike products is quite expensive as compare to other
global competitors.
- Adaptability of Nike in foreign markets can affect its brand image
Risks:
- The influence of spokespersons and intense competition pose a risk
to their strategies. A continuous change in the demands and choices
of the consumers and the international expansion may also pose a
danger to their strategies.
- The major risk associated with the core marketing strategy was that
there was no explicit display of being environmentally sustainable in
an attempt to maintain the slick, high-tech image of the brand. This
 could later discourage the environmentally conscious consumers to
think twice before investing in that brand, as they would not be aware
of the eco-friendliness of the products.
- Changes in market trends, consumer tastes and preferences.
- Fast changing of Nike’s product lines through excessive acquisitions.
- Expanding to overseas, the core marketing strategy of Nike can be
ineffective as it is in the current applying market.
Question2:
• Adidas needs to tap into the potential of the consumers among the
Generation Z. This is because if the brand is successful in acquiring the
younger market shares, there is a high chance that they will turn out to
be loyal customers who would remain with the brand in the long run.
• Asia and Latin America are some of the major markets that have still
not been used by Nike. Adidas can utilize this to their advantage by
sponsoring the teams from these regions and become market leaders in
these populous areas.
• The brand can also consider launching a new line of sportswear, which
will not only be fashionable but also be ethical and sustainable when the
manufacturing procedures are concerned. This will further enable to
attract those environmentally conscious customers as they will prefer to
use products that have the label of being eco-friendly on them.
 Not so expensive products
 Use low-labor cost of production
 Collaboration with entities like FIFA, teams, PlayStation
 Focus on Niche markets to build a strong customer support system
 Change customer perception about its products
 Encourage customer customization.
 Focus on emerging markets
 Focus on sports that Nike is not targeting

Cost, Market position, target audience

HOW:
1. Adidas needs to tap into the potential of the consumers among the
Generation Z.
2. Asia and Latin America are some of the major markets that have
still not been used by Nike. Adidas can utilize this to their
 advantage by sponsoring the teams from these regions and
become market leaders in these populous areas.
3. The brand can also consider launching a new line of sportswear,
which will not only be fashionable but also be ethical and
sustainable when the manufacturing procedures are concerned.
WHY:
1. This is because if the brand is successful in acquiring the younger
market shares, there is a high chance that they will turn out to be
loyal customers who would remain with the brand in the long run.
2. This is because Nike is not currently focusing on those emerging
market and it can be an opportunity for adidas to penetrate first.
3. This will further enable to attract those environmentally conscious
customers as they will prefer to use products that have the label of
being eco-friendly on them.