Assignment # 1

Marketing Management

SUBMITTED
Dr. Shumaila Gull
TO:
F20BA128 Farhan Qadir
SUBMITTED F20BA107 Muhammad Usman Saleem
F20BA129 Abdullah Zaman

BY: F20BA137 Junaid Shakoor

Khan
Submission date: 04 October 2022
 Q1: What are the pros, cons and risks associated with Nike’s core marketing strategy?
PROS

 Nike’s aggressive marketing helped them to capture a big portion of market first in America and
then in Europe. Their core competency was engaging not only the biggest sport like soccer but
specifically the individuals (Players). Since majority of the people followed them Nike recorded a
huge hike in its revenue.
 As the world was advancing in technology and Apple was the most prominent brand at that time
in technological inventions, so Nike grabbed this opportunity and collaborated with them. They
developed Nike+ (plus) technology that is connected with the shoes and it keep a check about
your running, calories burned likewise.
 Product placement was the other factor that helped Nike to boost their sales. They placed their
product specifically in those countries where soccer was a common sport and everybody loved
soccer players. But gradually Nike penetrated other sports too like basketball and tennis.
CON
S
 As Nike collaborated with Apple to add value in its product so that they can give their
customers a better experience altogether. But for this Nike invested a lot which in turns
increased their cost of production. So alongside experience now customer had to pay more to
buy the product which was not so affordable for middle class families.
 Another point to consider was that if the players whom Nike had sponsored got themselves into
any type of controversy or any undisciplined act then this can affect Nike also because they had
invested in that player which is found guilty of doing something, which can cause a decline in
their revenue.
RISK

 As Nike did not encourage talking about eco friendly products or recycling things which can work for
short term but this can cause trouble for them in long run because the world is moving towards green
technology by promoting the use of reusable products and people are also well aware of this. But if
Nike keeps going like this people will start to think before buying its products and eventually, they will
face a dip in their selling.

Q2: If you were adidas, how would you compete with Nike?
If I were adidas I would have also adopted the aggressive marketing strategy by Nike like sponsoring
athletes and other sporting events. It would be a better choice if you go with sponsorship of many athletes
in an event unlike doing a major title sponsor. I would have also focused on some pocket friendly
collection of footwear, so that the targeted audience (middle class) are addressed. The main focus on my
marketing strategy would be running campaigns based on sustainability and eco-friendly products. This is
the main part the Nike was missing and it would be a great opportunity for competitor to make an image
in mind of the consumer that the products are not problematic for the environment.