THE FINANCIAL UNIVERSITY OF

FINANCE – MARKETING


Homework week 1
MARKETING MANAGEMENT
UNDERSTANDING

Instructors: Ngô Minh Trang

Students implementation:
1. Hà Diệu Linh Chi – 2121003788
2. Võ Đăng Khoa – 2121000388
3. Trần Ngọc Hằng – 2121003682
4. Nguyễn Quang Anh – 2121003515

Ho Chi Minh city, 01/2023

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Question 1: What are the pros, cons, and risks associated with Nike’s
core marketing strategy?
Pros
1. Nike focuses on their product
design.
To research and develop
products, Nike’s scientists have
an incredible array of
measurement and analysis
tools. Their data collection
includes virtually every variety
of muscle sensor, pressure
platform, breath analyser, foot
scanner and thermal imaging
device. There are high-speed
video cameras that capture
soccer kick data at 1,000
frames per second and a
scanner that produces, in just
seconds, a perfect 3D digital
image of your foot.
2. Positioning itself strategically
and using celebrity marketing
as the core marketing strategy.
As the top famous athletic wear
company, Nike’s vision is “To
bring inspiration and
innovation to every athlete in
Cons
1. The price of Nike products are
quite expensive as compared to
other global competitors.
2. As the influence of
spokespersons is huge,
choosing a celebrity to
advertise its brand if an athlete
is involved in a scandal will
also affect the customer's
decisions, causing loss of
revenue for Nike.
3. The continuous change in the
demands and the international
expansion require the non-stop
operation of Nike’s workers.
4. The brand strategy had always
been about being the winner,
and little focus had been laid on
being sustainable.
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 the world.”

Therefore, Nike always chose

the most accomplished athletes
for popularizing the brand such
as footballer Christiano
Ronaldo, Athletics Steve
Prefontaine, basketball player
LeBorn James,... It creates
attention, trust, trends for target
customers as well as brings
profits to the company.

3. The worldwide expansion for

long-term development.

Nike not only produces

sportswear for some significant
fields like running, football or
basketball but also for almost
every well-known sport in the
world. In addition, It also
constantly innovates products
to suit the customer market.

4. Decades of striving for a stable

future, Nike has been building
considerable groups of loyal
customers.

By delivering the right thing at

the right time to customers,
Nike is building beneficial
customer relationships and
gaining customer satisfaction
and loyalty. Nike distributes its
products on a different level.

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 The high-premium products are
given to certain distributors
while leaving the low priced to
be sold at highly discounted
prices at the retail stores such
as Wal-Mart.

5. Their aggressive advertising

campaigns make the most
effort.

Celebrity endorsements and

quality products all enhance
their brand and image. Nike
targets the consumers who care
more about the utility and
quality of the products rather
than the price.

Risk:

- The major risk associated with Nike at the present is its competitors. The
competitors are increasing day by day and yet more development is needed in
the company’s product line.

- Social status and controversies associated with famous Golf Athlete Tiger
Woods could get Nike in trouble.

- There was no explicit display of being environmentally sustainable in an

attempt to maintain the high-quality image of the brand. Products that are not
eco-friendly can discourage the environmentally conscious consumers from
buying Nike shoes.

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

Nike and Adidas are the two most well-known athletic wear companies. For
nearly 60 years in this industry, they have been competing fiercely for
worldwide market domination. Both brands deliver their specific values that
go beyond the functional benefits of wearing items of clothing. It can not be
denied that soccer has been considered a king sport as the players and viewers
are always superior in numbers in comparison to other kinds of sports.
Therefore, this is a potential market for every athletic brand to widen their
names, Nike and Adidas are not exceptions. Being a weighty competitor of
Nike for decades, Adidas has launched plenty of noteworthy marketing
campaigns which are enormously attractive to the customers.

1. The goal of Adidas is to “find the need and fill it”. They settle on creating
the most comfortable and relaxing kind of shoes as a matter of priority. In
other words, they are focusing on the optimal product.
- 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.
- 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
environmentally conscious customers as they will prefer to use products
that have the label of being eco-friendly on them.

2. While Nike choses paying for daily catchy advertisements and powerful
celebtity endorsements, Adidas decides to save the budget for well-built and
large-scale events.

This is quite a crucial move for Adidas since their total global revenue in
2021 is moderately smaller than that of Nike. Sports sponsorship has been
the main activity of the company and has a history of being a part of
numerous famous sports events. In 2018, Adidas sponsored way more than
Nike in the Football world cup where 12 teams wore the brand Adidas.
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 Moreover, Adidas boasts the current World Cup holders Germany, along
with Argentina, Spain, Belgium, Colombia, Egypt, Iran, Japan, Mexico,
Morocco, Russia, and Sweden. In order to maintain such a huge influence,
Adidas needs to take good advantage of its sponsorship as this is always a
sustainable profit flow.

3. The segmentation of Adidas’s products is for everyone instead of just for the
elite as that of Nike. This would
4. These days, environmental issues are on top of the attention. Therefore,
Adidas’s products should be concentrated on environmentally
consciousness.