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1. What are the pros, cons, and risks associated with Nike’s core marketing
strategy?
Nike orientation towards Marketplace: Social marketing concept (high-quality, high-tech
products)
The firm's long-term strategy, however, is focused on running, basketball, foot-
ball/soccer, men's training, women's training, and action sports.
Nike's core marketing strategy
 Emotional Marketing Strategy: :Build a cult following by focusing on celebrities
in sports and Ads Inspiration
 Expansion strategy: expanding overseas and products Focused on sports
 Marketing mix (4ps)

Core
Tactics Pros Cons Risks
Strategy

Build a cult Build a fanbase Nike's The boycott

Focusing on
following by of consumers finances of the
celebrities in
focusing on Public support must be opposing fan
sports
celebrities in sports (In 1985, Nike strong community
 Highly
dependent on
the North
American
market
It takes time
Nike's to understand
signed a rising
commitment to your athletes
player, Michael
creating footwear and build
Jordan- a great
for famous lasting The scandal /
personality as a
athletes. relationships Bad influence
spokesman→ .re
Nike signed a with them. of celebrities
venues hit over
contract with a Non-
$100m in the
celebrity as cooperation
first year alone)
spokespreson and not in
keeping with
the spirit of
Nike (runner
Steve
Prefontaine)

Inspiring, High
Ads that don't
uplifting, trying advertising
resonate and
to do your best. costs $20
1988, "Just Do It" inspire
Ads Inspiration Targeting a wide million.Do
ad campaign Ads only
audience, all not focus on
work in
ages, sports product
certain places
enthusiasts advertising.
 Market Become active as
expansion a sponsor for
youth leagues,
local clubs and
national teams.
Professional
athletes use Risks when
Nike' products football teams
and win (1994 dont do well
Around 2003, Nike in foolball
Brazil team - Depends on
expanded overseas, matches.
Nike sponsored the shoe
focusing on
to win the World products. Legal and
football
Cup) cultural
⇒Nike's brand issues.
image from a
sports shoe
company to a
brand that
represents
emotion, loyalty,
and identity

- Nike focuses on Improve the Depends on Risks when

emerging markets company's heavy the shoe football teams
(Ex: the 2008 reliance on the products. dont do well
Summer Olympics North American in foolball
in Beijing) market matches.
- Run Nike ads increased sales in Legal and
featuring Olympic the Asia region cultural
athletes in games by 15%. issues.
- Sponsorship for
 several teams and
athletes, including
most Chinese
teams

Rapid
Nike becomes changes in
the sole supplier consumer
to more than 100 preferences
- In 2003, Nike
professional and needs
acquired Umbro, a
teams around the
British .
world and
manufacturer of Unstable
strengthens
football-related quality, local
Nike's
footwear, apparel workers,
nationwide
and equipment. legal, cultural
presence and
authenticity in and
football. transportation
issues).

Expanding its - Partner with Nike has linked Nike's -The personal
brand into famous and up with stars that finances life stories of
many sports influential athletes, bring great must be athletes,
and athletic coaches, teams and revenue to the strong coaches affect
sectors, leagues to build company (The 2008 the sales of
including credibility in these (Tennis: Maria Wimbledon products...
footwear, categories Sharapova, match - Expensive to
clothing and - Plans to spend Roger Federer between resolve
equipment more than $3 and Rafael Roger scandals..
billion on sports Nadal. Federer and
activities between -Basketball: Rafael Nadal
2012 and 2017 Kobe Bryant and - both
wearing
 - Nike is the
LeBron James $10.6 million
largest sponsor of
- Gold: Tiger Nike gear.)
athletes in the
Woods)
world

- Consumers are
more loyal and
- Technology
emotionally
development and
connected
innovation
- Nike's leading
- The revolutionary
position in
running app and
running has
community called - Defective
increased to 60%
Nike+ (plus) - Depends product, does
market share
heavily on not bring
- Nike has
- Sales increased, shoe features as
expanded Nike+ to
(In 2014, sales products advertised by
focus on key
exceeded $27 the
growth areas like
billion and Nike manufacturer
basketball and
dominated the
fitness and recently
athletic footwear
launched Nike+
market with a
Basketball, Nike+
31% share
Kinect and Nike+
globally and a
Fuelband
50% share in the
US)

2012, after it Solve the

became clear that scandal, ease the Unsatisfied
Social Lance Armstrong fan community financial loss fan
responsibility took the drug (It has designed, community
during his time as manufactured
an athlete and and sold over 80
 while competing in
all of the Tour de
Frances. Nike cut million yellow
ties Before the LIVESTRONG
scandal, the bracelets, raising
company helped $500 million for
develop the Lance
Armstrong's Armstrong
LIVESTRONG Foundation)
campaign to raise
money for cancer.

Environmentally
friendly however Solving
like recycling old environmental
shoes into new problems
ones are kept silent

MARKETING MIX

4P Pros Cons Risks

Product - Respond to - Supply chain - Competition

 At first, focused changing user dependency from new
preferences and
 on developing
shoes, then
expanded his
brand into many
sports fields. trends by brands
Including shoes, developing new -Risk of
clothing and products, styles, counterfeit
equipment... and categories. goods
 Shoes that bring in - Customer access
the most revenue
 New technology
products

Price - Customers will - Focus on selling - Hold up sales

 High-tech shoes pay a high price for products at because many
for runners a good quality competitive prices customers
imported from product that do not meet choose cheaper
abroad → the needs of the products.
Competitive price lower and middle
classes of society
 Use a value-based
pricing strategy.
Nike considers
consumer
perceptions and
sets the maximum
price consumers
are willing to pay
for the product.
 Use a special
pricing strategy.
 Pricing quality
products above the
value of
competitive
products.

Distribution:
 Sell products
through a large - Local labor
number of stores risks, legal,
- widely distributed - High cost of
worldwide. has a cultural and
=> increased sales maintaining
strategic location, transportation
-delivered at the premises
easy access to the issues
right time - High cost of
market - There is a
-distributing website
 Retail store possibility that
products on a level maintenance and
the website is
 Online shop basis upgrade
unstable and has
 Niketown reseller poor security.
(company)

Promotion - Advertisements - A spokesperson's - Impact on

 Mainly used for of celebrities, their actions and sales, revenue
promotion and endorsements and attitudes have an and profits.
sponsorship quality products impact on the
enhance their brand promotion of the
 Different logo and
and image. product.
slogan, carrying a
meaningful
message.
 Use digital
 marketing to
promote your
products: Youtube,
educational
videos,
advertising...
 Apply preferential
policies and
discounts

2. If you were Adidas, how would you compete with Nike?

I. Product competition
Nike: American sports company has always been known for iconic products such
as: Air Jordan, Air Force 1 or Jordan brand shirt. Because they are iconic, design styles
and materials are often inherited by the Swoosh family over a long period of time (even
forever). Therefore, modern technology elements will be less added to these sneakers.
About Adidas: German sports company is always at the forefront of applying
advanced technology to its products, especially sports shoes. From the Boost soles of the
famous Ultraboost line to the textile upper, which feels more snug and airy than many
leather models. Adidas is really the sports brand of the young and the future, as
evidenced by the high growth rate in recent years.
It can be seen that in terms of design, Nike, although not bringing many changes
in design, has gained popularity because it follows the direction of Influential (marketing
through celebrities) - creating an impression in the hearts of fans tomb. And Adidas is
very trusted by young people and athletes because of its product innovation as well as its
increasingly sophisticated and modern design. The influence can be said to be not too
inferior to Nike. Adidas should continue to develop and maintain the form it has in terms
of products.
Product Line Expansion: Expanding its product line opens up a host of new opportunities
and it can differentiate itself from its competitors by implementing this strategy.
 Example: When you need to jog, kick a soccer ball, and be physically active, it's
basically all Nike football boots and Adidas running shoes.They all meet the needs very
well. But it seems that Adidas is having an advantage over Nike because its product
specialization is extremely high, providing the best experience when playing. In addition,
the limited product line also makes it difficult for Adidas to compete to surpass Nike.
II. Product value to customers
For each brand, having a product auction is a testament to how much passion and
influence it has on customers. In the top 10 list taken from a reputable newspaper site
Businessinsider, then Nike weighted the highest-priced and most-modeled shoes. In this
respect, it is clear that Nike is the number one in the world and Adidas needs to do more
to touch the hearts of customers like Nike has done.
III. The right to sponsor jerseys for teams
Adidas has the relationship advantage, the home field advantage. For example, at
Euro 2012, Adidas seems to have won the advantage of being present on the jerseys of 6
teams, Spain, Ukraine, Denmark, Greece and Russia, while Nike "only" sponsors 5
teams. The team is Portugal, France, the Netherlands, Croatia and Poland. Statistics show
that Adidas has collected nearly 2 billion euros from Euro 2012, while Nike, although
still ranked first in revenue from sports in general, proved quite inferior in the sport of
kings. Adidas needs new strategies to help it surpass Nike in the king sport because
Adidas has a huge advantage.
IV. Weight
The introduction of Boost technology into the line of sneakers makes them
versatile. They can be used for sports and also infused into everyday lifestyle. Not only
does this make the shoes lightweight, but it also provides them with proper cushioning,
arch support, flexibility, and breathability. Basically, Adidas shoe products are number
one in this category. Nike also has some lightweight shoes like the Nike Free RN Flyknit,
but the cushioning is nowhere near the Adidas.
This is also a strong point of Adidas that Nike is very eager to do. Adidas needs to
do more marking on this issue and at the same time create something new for it to attract
customers.
V. Price
 When you go to shoe stores, you may notice that Nike shoes tend to be a bit more
expensive than Adidas. Of course, there are some Adidas shoes that cost a lot more than
certain Nike products, like shoes. adidas Yeezy. However, a pair of Nike shoes will "dig
deeper" into your pocket. The Nike Mag 2016 Air retails for up to $26,000. Here, it can
be seen that Adidas targets a very diverse audience with reasonable prices from low to
high for each customer's spending. In addition, to achieve greater efficiency in business,
Adidas should segment the market clearly and should not let the price difference be too
big.
High price range: The high price range due to innovative production technologies
& methods has made the brand suitable for limited customers, especially in developing
countries.
Things Adidas needs to change
Market development: Entering new markets will be the only way to future success
as advanced economies are already highly competitive.
Growing demand of premium products: If we consider only the Indian market,
there is a growth rate of 33% in demand for premium products. This gives us future
business opportunities and expands the market size of developing economies.
Reverse Integration: This would be a smart strategy if pursued by Adidas as it
would help Adidas secure their patent rights and also integrate their R&D with the
operations team to operate in the open system.
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