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Table of Contents

I. Introduction....................................................................................................................... 4
1. History........................................................................................................................... 4
2. Missions........................................................................................................................ 4
3. Target............................................................................................................................ 4
4. Product lines.................................................................................................................5
5. Revenue......................................................................................................................... 5
a. By regions..................................................................................................................5
b. By categories..............................................................................................................6
II. Analysis of two international markets.............................................................................7
1. Market selection criteria and review............................................................................7
a. Demographic.............................................................................................................. 7
b. Technology.................................................................................................................7
c. Consumer spending power.........................................................................................8
d. Lifestyle......................................................................................................................9
e. Review of the selected criteria....................................................................................9
2. Comparison of two markets..........................................................................................9
3. Evaluate the market selection.....................................................................................12
III. Marketing entry method that Nike uses in China.......................................................13
1. Entry method............................................................................................................... 13
a. Production................................................................................................................ 13
b. Consultant................................................................................................................13
c. Marketing - Sponsor sports teams and sports events................................................13
2. What do Nike have achieved in China.......................................................................14
a. Low production costs................................................................................................14
b. Maximize their presence...........................................................................................14
3. What do they need to improve.....................................................................................14
a. Low quality product..................................................................................................14
4. Evaluation of Nike’s entry method.............................................................................15
IV. Nike Marketing Mix......................................................................................................15
1. Nike’s Products...........................................................................................................16
Product Recommendations..................................................................................................16
2. Nike’s Prices and Pricing Strategies..........................................................................17
Pricing Recommendation....................................................................................................18
3. Nike’s Place/Distribution............................................................................................18
Place/Distribution Recommendations.................................................................................20
4. Nike Inc.’s Promotion.................................................................................................20
Promotion Recommendation...............................................................................................21
V. Company failure’s and analyze possible causes............................................................21
REFERENCES:....................................................................................................................... 24
I. Introduction
Nike, Inc. is an American multinational association that is involved in the design, development,
manufacturing and worldwide marketing and sales of apparel, footwear, accessories, equipment
and services.

1. History
Nike was founded in 1964 as Blue Ribbon Sports by Bill Bowerman, a track-and-field coach at
the University of Oregon, and his former student Phil Knight. They opened their first retail
outlet in 1966 and launched the Nike brand shoe in 1972. The company was renamed Nike,
Inc., in 1978 and went public two years later. 
By the early 21st century, Nike had retail outlets and distributors in more than 170 countries,
and its logo—a curved check mark called the “swoosh”—was recognized throughout the world.

2. Missions
The mission of Nike Inc. is to drive product innovation for athletes everywhere. Countless
ideas are tested in pursuit of aiding performance, injury risk reduction, enhancing perception
and feel, and delivery of innovative products to athletes. With this in mind, Nike manufactures
sports apparel, shoes, and equipment meant for a diverse market. 
Nike's slogan “Just Do It” embodies this component perfectly. With this very simple
catchphrase, the company is able to inspire and motivate athletes of all levels to push
themselves beyond their limits and achieve their bodies' maximum potential. 

3. Target 
Nike has three classifications of its target customers, including men, women, and kids. 
For men, Nike designs shoes for running, lifestyle, gym and training, American football,
football, tennis, golf, crickets, baseball, basketball, skateboarding, softball, and athletics.
Nike includes yoga in its shoe selection for women. Meanwhile, the company targets young
athletes in its kids' classification. Besides providing quality shoes, Nike offers various colors
for its products since the company believes that comfort and the products' physical appearance
can give satisfaction and enjoyment to customers. (Nike Market Segmentation, Targeting, and
Positioning, 2022)
 
4. Product lines
The company has organized its operations into six product categories: Sportswear, Jordan
brand, Running, Training, Basketball, Football and Others. (Pratap, 2022)
However, the company has provided a break-up of revenues by product categories: Footwear,
Apparel, Equipment and Other. 
 Footwear is the largest category of products by Nike includes: Boot for strikers, Mid
fielders, Defenders and Sneakers.
 Apparel is the second category of products: Headwear, Tops/Polo, Jerseys, Jackets,
Shorts and Shocks.
 Equipment includes: Balls, Bags and Watches.
 Other categories include National Team Gear and Club Gear.

5. Revenue
a. By regions
NIKE recorded revenues of $42.29 million in 2021, an increase of 21.05% over 2020. For
2021, North America, the company's largest geographic market, accounted for 40.62% of the
total revenues. The second is Europe, Middle East and Africa with 27.09% and third is China
with 19.6%. (Nike's global revenue, by region 2022 | Statista, 2022)
b. By categories
In 2021, NIKE generated revenues through six product categories: sportswear (15.05M),
Jordan brand (4.71M), Running (5.3M), Training (3.99M), Basketball (1.69M), Football
(1.68M) and Others. (Pratap, 2022)
II. Analysis of two international markets 
This part of the report contains three main parts, which are to provide criteria that the company
uses when deciding whether to enter a market, to apply these criteria to the two selected
markets, and to give reasons why the company entered the market and evaluate this decision. 
1. Market selection criteria and review
Our team believes that when entering a market, Nike should consider four main factors, which
are demographics, technology, consumer spending power, and lifestyle.
a. Demographic
Demographics is a basis for segmentation. It is necessary for each firm when deciding to enter
a market to pick its target consumers and whether it can develop in the market. For Nike
Incorporate, with a wide range of products in different age groups, the company mostly focuses
on the age between 15 to 45 years old. This means Nike can not only taps middle-aged
consumers who have disposable income but also develops its relationship with younger
audiences to ensure future growth and build life-long brand enthusiasts (Start.io | Nike Target
Market Segmentation & Brand Analysis, 2022)

b. Technology
Technology is also a crucial factor that Nike needs to focus on when choosing a market to
enter. Social media is a powerful tool to spread news and influence people’s tastes and interests
these days. Since the beginning when Nike was first established, the company has realized the
potential that these platforms could bring, so the company was an early adopter of email
marketing, internet marketing, and broadcast communication. Now, when having over 40
million followers on Facebook and 234 million on Instagram. It uses its social media to share
its newest products and campaigns to consumers globally. For this, a country with a high
presence of social media such as Facebook, Instagram, or twitter would be necessary for Nike
to thrive in. (Nike's Global Expansion - Global Marketing Professor, 2022)
c. Consumer spending power
Starting a business in a foreign market requires managers to know if consumers have
disposable income and if they can afford the company’s products as this can have a direct
impact on the success of the company. The higher-income socio-economic group is Nike’s
target audience, reflected in the premium brand image and pricing of Nike products. The
average Nike customer is a sports enthusiast, interested in leading an active and healthy
lifestyle, and looking to be ahead of the trends and up-to-date with the latest in fitness fashion
and footwear technology.  This could be seen when comparing Nike with its biggest competitor
Adidas. (Start.io | Nike Target Market Segmentation & Brand Analysis, 2022)

From the MRP (Maximum Retail Price) graph, from 0 to 8000 rupees (from 0 USD - 100
USD), Adidas outshines Nike in the number of products that they offer to the public. However,
from beyond 8000 rupees (100 USD +) an opposite trend has clearly been seen with Nike
having an overwhelming number of products over Adidas. 
d. Lifestyle
Nike have their positioning statement: “For serious athletes, Nike gives confidence that
provides the perfect shoe for every sport”. Although Nike has widened its target market from
time to time, the company’s essence is to maintain the best product for their athletes. This
could be seen when Nike is currently sponsoring many big athletes such as Cristiano Ronaldo,
Neymar, Tiger Woods or big sports clubs such as Liverpool or Chelsea. By signing with these
big names in the sports industry, small sports clubs or future athletes may buy Nike’s products
to better their performance. As a result, countries that produce a large number of professional
athletes or have many people that take sports seriously have always been Nike’s potential
market to commercialize their image. (Nike's Global Expansion - Global Marketing Professor,
2022)

e. Review of the selected criteria


Our team believes that these four characteristics have vital roles in comparing two markets.
With demographics, for Nike in particular, the company will know its main market has to be
nations that have the median age of around 15 to 45, and has to be cautious about nations that
are experiencing an aging population. In addition, technology and consumer spending power
means Nike has to give attention to countries where civilians use much social media and have
disposable income. Lastly, the lifestyle criteria helps Nike to put emphasis on markets that have
well-known professional athletes and citizens that have a passion for sports. 

2. Comparison of two markets


In this report, our team will compare China market and The United Kingdom market in four
main factors, which are demographics, technology, consumer spending power, and lifestyle.

Selection China The United Kingdom


Criteria

Demographic - China currently has a population - The United Kingdom currently has a
of approximately 1.5 billion people population of around 68 million
with 25% of the population is at the people with 22.3% of the population
age from 15 to 45 with a median is at the age from 15 to 45 with a
age of 38.4 years. (population of median age of 40.5 years. 
China, 2022) - The United Kingdom has a
- Despite China reportedly having population from 0 -10 takes up 10%
an aging population since the of the population, providing evidence
influence of the one-child policy in that the country has a sustainable
the past, in 2021, the country has growth in the future. (population of
implemented the three-child policy the United Kingdom, 2022)
and it is set to improve the
country’s current population. (From
One Child to Three: How China’s
Family Planning Policies Have
Evolved

Technology - China has around 930 million - The UK has 57.6 million social
social media users with two most media users, which accounts for
common social media sites are 84.3% of the UK population. Five
Wechat, and Weibo which stands at most common social sites are We
450 million and 230 million active chat, Facebook, Facebook messenger,
users daily. (2022 Top Chinese Twitter and Instagram. (UK: leading
Social Media Platforms You Need social networks by usage reach 2021 |
To Know, 2022) Statista, 2022)
- In 2020, the added value of the -  According to Ecommerce Europe,
digital economy accounted for in the UK, an estimated 93% of the
more than 38 percent of the UK population shopped for products
country’s GDP. In the same year, or services online in 2021. (Topic: E-
nearly a quarter of China’s physical commerce in the United Kingdom
goods retail sales were sold online, (UK), 2022)
far above the global average of 18
percent. (Topic: E-Commerce in
China, 2022)

Consumer - In 2021, the per capita - In 2021, the per capita consumption
spending consumption expenditure of expenditure of national residents was
power national residents was 24,100 yuan roughly 14.6 thousand USD, with
(3500 USD), according to World roughly 120 USD being spent on
Bank, with 5.9% used for clothing shoes. (Topic: Footwear industry in
expenditure (1419 yuan = 202 the United Kingdom (UK), 2022)
USD) (Households' Income and - In the footwear industry, trainers are
Consumption Expenditure in 2021, the most popular kind of shoes in this
2022) country. (Trainers rated the most
- In the footwear industry popular type of shoe in the UK,
specifically, footwear made out of claims poll, 2022)
textile is the most popular in this
country (accounting for almost
50%), followed by sneakers and
athletic shoes. (Footwear - China |
Statista Market Forecast, 2022)

Lifestyle - With over 400 athletes in the - The UK is currently hosting one of
previous Olympics, which ranked the biggest football leagues in the
fifth in the number of participants world which is the Premier League
by country, and with a culture that where many well-known football
regards physical fitness as an players and coaches are gathered. The
important characteristic, China is league is reported to make a revenue
seen to have an active lifestyle. of 5.9 billion USD in the previous
(RANKED: Every nation at the season. Thanks to this
Tokyo Olympics by the number of accomplishment, thousands of
athletes they have taken to Japan, unprofessional teams spread across
2022) different age groups have been
- China is also home to many formed in the country. (Study:
professional leagues such as the Premier League revenues projected to
Chinese Super League (CSL) and pass US$7bn for 2022/23, 2022)
countless sports associations.
(Football in China - boom or bust?,
2022)

3. Evaluate the market selection


In this part of the report, our team would like to further analyze the United Kingdom market
and why we think that Nike has made the right choice when entering this market. For the
demographics, almost 25% of the UK population is in Nike’s target customers and with 10% of
the population is heading towards that target age gap, this will guarantee a promising future for
Nike. Regarding technology, it has been mentioned that Nike’s main ways of marketing is
through social media, specifically through Facebook and Instagram and with two of these apps
currently in the top 5 of most used social media platforms in the UK, this once again proves to
be an advantage for Nike. With the expenditure of 120 USD on shoes, in particular for trainers,
an average UK citizen can absolutely afford shoes from Nike, which mostly ranges from 100
USD. Lastly, Nike has a tradition in promoting their products through sponsoring professional
athletes, and with the Premier League as one of the biggest football tournaments in the world, it
comes as no surprise that Nike chooses to create a business in the UK. 
In conclusion, after evaluating the four criteria, our team thinks that Nike chooses to operate
in the UK is a well-thought out decision. 
III. Marketing entry method that Nike uses in China
1. Entry method
It is clear that Nike used intermediate mode to enter China market. This can be proved by the
following reasons.
a. Production
In 1980, Nike created its first joint venture with the People’s Republic of China. Nike does not
produce directly and its entire manufacturing has been outsourced to contractors. The company
has worked with Chinese producers for many years. The majority of Nike's athletic wear is
made in these factories. The consumer presence of Nike in China started in 1981.

b. Consultant
Nike engaged a consultant to help negotiate an agreement between them and the government in
order to enter the difficult country (Austin 34). The consultant was knowledgeable about the
language, customs, and expertise needed to produce a good agreement. Writing a proposal
describing their goals and the benefits their joint venture would provide to China was the first
thing they set out to do.

c. Marketing - Sponsor sports teams and sports events


Instead of bringing its products directly to China, Nike began to venture into the Chinese
market by being a key sponsor of numerous sports-related events, which includes professional
leagues. The company initiated sporting leagues and was key in developing the American
streetball culture in the country. By doing so, Nike was able to develop a strong brand presence
leading to a high rate of familiarization among Chinese consumers. In China, Nike’s Back to
the Beginning campaign told the stories of successful female sports stars and how they
overcame limitations and prejudice to make it big. The idea was to inspire young girls to stick
with sport as they grow older, as 75% of girls in China stop playing sport by year ten. During
the 2008 Beijing Olympics, Nike took the full responsibility to sponsor several teams, which
potentially expanded the brand across the whole country. Nike’s popularity expands, and
Nike’s ability to shape its brand image draws more potential consumers’ attention.
2. What do Nike have achieved in China
a. Low production costs
The most significant benefit of entering the Chinese market is based on the fact that China is a
low-cost country. Nike didn’t build their own factory but outsourcing the production.
Moreover, they took advantage of cheap labour cost. In 1981, Nike started production in China.
At that time, China had yet to become a global manufacturing hub and was nowhere near the
fastest-growing economy in the world. However, Philip Knight, founder of Nike, always
believed that China was a market which held great potential for Nike. The combination of the
talented workforce and low wages made Philip realize that China offered numerous
opportunities. He held the perception that with some progression, the manufacturing plants
would be able to make exactly what Nike needed. 

b. Maximize their presence


Since Nike sells sports clothes and produces equipment for the sports it sponsors, the
advantages of sponsorship are clear to the company. Maximizing their visibility in and around
the clubs, where players typically purchase their own training equipment, makes perfect sense.
Sport enthusiasts and armchair athletes who wear Nike gear but don't actually participate in
sports provide the brand fantastic exposure.

3. What do they need to improve


a. Low quality product
On the contrary, the biggest flaw is Nike's difficulties in maintaining product quality across the
several contractors located all throughout the nation. In China, Nike has been linked to severe
quality scandals. Over the years, many products have been recalled, and some of those products
have injured their users. In 2011, women's sports shoes had thinner soles than necessary,
according to Ni and Hu (2012), who claim that Shanghai quality regulators discovered three
sample pairs of Nike shoes did not fulfill the specifications. Nike was penalized $779,416 USD
for selling shoes in China with only one air cushion per shoe at a greater price and lesser
quality than those sold in other markets, where there are two air cushions and substantially
lower pricing (Zheng, 2012). All pairs of shoes must be recalled, and refunds are being given.

4. Evaluation of Nike’s entry method


From my point of view, Nike had chosen a good entry method based on the strength and
weakness of Chinese market and the firm itself.
 Product is small and easy to produce
 Early entry advantage of FDI 
Lack of strong competitors: In 1981 when Nike entered China, there was hardly any
competition in the same market
Brand loyalty customers: Entering the market early helps Nike gain loyal customers
in China
 Nature of know-how is not tacit: Although Nike has improved the material quality and
the production technology, the production of sports clothing and footwear are not so
tacit.
 However, there are few things that Nike should be considered to archive greater success in
China.
 Quality control: Nike has a history of serious quality controversies in China, which have
a negative effect on consumer confidence in their goods. The firm should have a quality
control (QC) team in each factory to prevent similar incidents in the future

IV. Nike Marketing Mix


Nike has a marketing mix that involves athletic and leisure products. Through its marketing
mix, Nike Inc. strengthens its capabilities to protect its business from the strong force of
competition. 
In the case of China, the 4p are carefully deployed in order to be suitable for such a tough
market as China.
1. Nike’s Products
At present, the sporting goods company’s marketing mix includes a wide variety of product
categories and brands. Nike majorly produces sports-related items and equipment. The
company designs different products for each kind of sport which makes its products
comfortable for athletes.
Nike has produced different shoes for different purposes like running, golf, football, cricket,
skateboarding, tennis, cycling, and other sports too. They manufacture different styles of
sneakers according to men, women, and kids. The most famous shoes of Nike are:
 The Nike Cortez
 The Nike Air Max  
 The Air Huarache 
 The Nike Blazer 
 The Nike Air Force 1 
 The Nike Air Jordan 
Shoes are the most popular product from Nike Inc., and the company’s overall marketing
strategy gradually adds more product lines to strengthen the product mix. 
Besides these, NIKEiD is an innovative sub brand of Nike which allows its customers to design
and customize the features of their desired products as per their requirements which attracts the
greater audience.
Nike also listens to the consumers, as when sales regressed in the China investigations revealed
the new products at that time were not attractive to the Chinese consumers. Therefore, Nike
decided to restart designing what the Chinese customers like, considering each big city in
China as a separate market, by which the sales recovered from 2014-2015 (Perepu, 2016)
(Nike’s Marketing Mix (4Ps/Product, Place, Promotion, Price) – An Analysis) 
Product Recommendations
 Nike China can stop selling products that are either not profitable or not creating enough
differentiation from the existing products. 
 Nike China can introduce a new brand in the existing product line or it can strive to
establish a whole new product line. (similarly to what they did with converse and
Jordan)
 Nike China can try to reposition the products from the existing brands within one line.
 Nike China can think of ways - how features and value can be added to existing brands
that help them in consolidating and increasing their market position. (the air/ foam
series)

2. Nike’s Prices and Pricing Strategies


The price of mid-range Nike shoes varies between countries. It ranges from $38.09 (Kosovo) to
$187.73 (Iran). The price in China is on the 50th centile ($83.03). It is slightly dearer than the
price in the US ($75.78), but cheaper than the price in Singapore, Hong Kong, and Vietnam
$89.66, $90.12, and $91.25 respectively (Numbeo, 2020). We can see clearly that the pricing
for the Chinese market (a highly competitive market in terms of pricing) is comparatively dear
in order to attract customers 
Nike utilizes Value-based and Premium pricing strategies for all its products.
 Value-based pricing strategy
Nike Inc. considers consumer perception about the value of its products. In the
marketing mix context, perceived value determines the maximum prices that consumers
are willing to pay for the company’s sports shoes, apparel, and equipment.
 Premium pricing strategy
The premium pricing strategy uses high prices, based on a premium branding strategy
that establishes Nike products as higher in quality and value than competing products
(Nike’s Marketing Mix (4Ps/Product, Place, Promotion, Price) – An Analysis)
In China, conceptually perceived value is the maximum price a customer is willing to pay for
Nike product in the given competitive context.
 Cost Base Pricing
Under cost base pricing strategy, Nike China can work out what it takes to produce the
product and put a markup based on profit it wants to earn. For example, Uber running
losses in billions can provide lower prices and sustain compared to individual taxi
service providers who are not backed by private equity and long-term strategy.
 Competition Based Pricing
The pricing strategy is based on the competition in the market. Under this strategy Nike
China focus is to match the prices of the competitors and focus on reducing the cost of
operations to increase profitability.
Nike also uses other pricing strategies in China: Value Base Pricing, Market Penetration
Pricing, Market Skimming Pricing and Good Value Pricing to increase the profit and make
competitive price with other brands such as Adidas, Puma, Lining, etc. (Pro, 2022)
 
Pricing Recommendation
Based on the evidence at hand – we can choose the following pricing strategy
 High Brand Awareness – The brand of Nike China is well respected in the market so it
can fetch a slight premium over the other competitive brands.
 Innovative Product – With advanced features the product is perceived as innovative in
the current market context. A slight premium price will not only emphasize the features
of the products but also stops other players from entering the present segment. A high
premium price may attract new entrants and thus lower profitability.

3. Nike’s Place/Distribution
The following places or venues form Nike’s distribution strategy, arranged according to
significance in the company’s marketing strategy and performance:
 Retail stores
 Nike Online Store
 Nike town retail outlets (company-owned)
Retail stores are the most significant places where Nike products are sold because these venues
are strategically located and easily accessible in various markets around the world. These
retailers include small local and regional stores, as well as large retailers

Nike’s strong sales growth was largely thanks to its digital strategy in China. In 2012, Nike
started its online journey in China by opening its first flagship store on T-mall, one of China’s
largest e-commerce shopping platforms. Nike also launched its official website store, the
SNKRS app, and its WeChat Store over the next several years.
In November 2019, Nike
launched its flagship app in
China, a one- stop shop
delivering exclusive
content, events, and
personalized services while
collecting consumer data
to inform its products and
marketing initiatives.
(Nike in China:
building an omnichannel experience) (Nike Marketing Mix (4Ps) Analysis)
Place/Distribution Recommendations
 Make products more accessible by establishing third-party venues, such as TikTok and
affiliates.

4. Nike Inc.’s Promotion


This marketing mix element, involves the tactics that Nike uses to communicate with its target
markets, in this case China’s. 
Nike figures the uprising middle-class population could be the best opportunity in China. As
China’s eCommerce system is rapidly advancing, Nike decides to enter their digital markets,
such as Alibaba and WeChat This part of the sporting goods company’s marketing mix uses
promotional tactics to communicate with customers about its products, and persuade them to
purchase these products. The following are Nike’s promotional activities, arranged according to
significance in the firm’s marketing strategies:
 Advertising: 
 Personal selling:
 Direct marketing
 Sales promotions
 Public relations:
Advertising is one of the biggest contributors to Nike’s ability to attract customers. In this 4P
variable, the company heavily relies on advertisements, especially those that involve high-
profile celebrity endorsers, such as professional athletes and sports teams in China. basketball
and soccer are two major sports among teenagers, so Nike brings their advertisement and
sponsorship with famous American Athletes to China and those who have a huge fan base in
China. Other traffic sources come from other online platforms such as WeChat Brand Zone or
the official Nike website. (Nike in China: building an omnichannel experience)

Promotion Recommendation
 Nike should increase personal selling through sales personnel who persuade target
consumers to buy the company’s sporting goods. For example, sales personnel at Nike
town retail outlets are trained to use such persuasion tactics.
 The company’s direct marketing activities involve promoting its products through direct
communications with colleges, local sports teams, and other organizations.

V. Company failure’s and analyze possible causes


Judging over a long process, we can conclude that Nike has been successful in the Chinese
market, as revenue from this market contributes greatly to Nike's total revenue.
However, not all of the marketing campaigns that Nike conducts in China are successful. A
typical failure was in 2015 when Nike tried sloppily cramming Chinese cultural symbols into
the Air Force 1 shoes. (Cheng, 2022)
Nike launched limited variants of the Nike Air Force 1 shoe in 2015, including vivid pink and
green lotuses on the tongue and a large baby's head printed on the insole heel. While they are
cultural markers, one reviewer remarked the shoes looked like "Nike recruited some farmer as a
designer," and several referred to them as "village style." Others claimed that the crimson
writing on the heel gave the impression that the shoes were phony. 
A day later, they offered another limited-edition pair, this time with the option of adding
Chinese symbols to the heels. "Fa" means "becoming rich," while "Fu" means "fortune
arrives." So far, everything is in order.
What Nike overlooked was that "Fa Fu" translates to "Getting obese." This sparked much more
social media ridicule. 
Nike responded to Campaign Asia-Pacific, saying, "NikeiD enables the consumer to perform
just the same character on the two heels." As a result, it will be a pair of FU or FA shoes.
Unless you build two shoes (FU shoes and FA shoes) and mix & match them, it is unlikely that
the two terms will be regarded together as your article indicated. We also make certain that the
character Fu is upside down to properly portray Chinese culture." 
We appreciate Nike's efforts to incorporate local culture into products and marketing
campaigns. Culture is one of the factors in the macro environment that marketers will study
when making marketing campaigns for brands. The culture of a locality or country will more or
less affect the consumption habits and behavior of consumers. Therefore, when entering a new
market, brands need to carefully study the culture of the place to have the right campaign. Nike
has applied this method many times, especially in countries with solid nationalism and high
national identity like China. 
This product has no significantly different features from the others from Nike, except some
images related to Chinese’s culture symbols. So we judge this action as a public relation
campaign of (in the Nike’s Promotion Mix we mentioned above), instead of Product Mix. 
However, in this case, Nike did the research sloppily, and without the involvement of local
marketers. This resulted in the local marketing campaign (using cultural symbols as the main
message) failing miserably. When incorporating local cultural elements into marketing, if done
in the wrong way, the negative customer reaction is very strong and affects the reputation of the
brand.
Another failure in the international market of Nike in 2021 was when CEO John Donahoe said:
"Nike is a brand that is of China and for China". (Lea, 2022)
This statement is intended to appease the Chinese people's boycott of international fashion
brands due to political issues. Immediately, consumers around the world criticized Nike for not
taking other countries seriously.
We believe that Nike's CEO's speech can be viewed as an instant marketing campaign aimed at
the Chinese market, to enhance consumers' connection and love with the brand. However, what
harmed other international markets is that the person who made this statement was the CEO of
Nike, not the Nike leaders in China. Again, this effort is a part of an immediate public relation
campaign. 
This example shows the problem of choosing the wrong level of marketing campaign delivery.
A local marketing campaign that is steeped in local culture and symbols, as well as with
targeted brand messages, should only be distributed within that niche. If the distribution is
wider, for example on a global scale, a negative reaction will occur in other markets. In the
case of Nike, statements or messages from headquarters (or global leaders) will be considered
as a communication channel in the worldwide market.
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