Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Bachelor of Science in Business Administration Major in Marketing
Management (OUS)

Rachel L. Mendoza FERNANDO ERANA REYES, JR. DComm, Ph.D.

BSBAMMOUMN 3-1 Professor

MARK 40063

INTERNATIONAL MARKETING MANAGEMENT

Assignment # 2

Marketing Case 1: NIKE

Nike, founded in 1962, aimed to create high-quality running shoes for athletes. The company's
"pyramid of influence" theory suggests that a small group of top athletes' choices can influence
the choices of other athletes. Nike's "Just Do It" ad campaign began in 1988, encouraging
sports fans to pursue their goals. Today, Nike spends over $3 billion on endorsement deals with
sports worldwide, with a projected increase to $4 billion from 2012 to 2017. The company has
also been supportive of athletes like Tiger Woods and Kobe Bryant during personal issues.
Nike's most recent technological advances have made customers more loyal and emotionally
connected. For example, Nike+, a running app and community, has grown to 60% of the
market. Nike+ Basketball, Nike+ Kinect, and Nike+Fuelband have expanded to areas like
basketball and exercise. The company is the largest sports shoe and clothing company globally,
with a 31% market share in the sports shoe market and a 50% market share in the US. In the
long term, Nike aims to focus on running, basketball, soccer, men's and women's training, and
outdoor sports. The company's focus on sustainability and innovation will continue to shape the
way marketing is done today.
1. What are the pros, cons, and risks associated with Nike’s core marketing strategy?

The marketing strategies employed by Nike have their own set of advantages and
disadvantages. Nike adeptly adapts to fashion trends and shifts in customer behavior through
strategic adjustments to its marketing strategies and product offerings. The company's
impressive sales and revenue can be credited to its highly effective distribution channel, which
encompasses direct sales through its website. The strategic use of celebrity athletes by Nike to
promote and endorse its products has successfully generated a strong brand presence among
consumers. The company's brand equity has been enhanced through aggressive advertising
campaigns and high-profile endorsements. Nike's effective market segmentation strategy has
allowed it to successfully connect with a diverse range of consumers by offering a wide variety
of product lines.

Nevertheless, there are a few drawbacks to Nike's marketing strategies. The company's
advertising and promotional strategies come at a significant expense, accounting for almost
10% of its global revenue allocated to marketing activities. The current situation has resulted in
higher product prices and the implementation of cost-cutting measures, potentially affecting the
brand's reputation. Nike's heavy reliance on celebrity endorsements comes with its fair share of
risks. After all, the actions or scandals involving these endorsers have the potential to hurt the
brand's reputation. In addition, Nike's marketing strategy is not as varied as its competitors’.

Nike's marketing strategy also carries uncertainties. To maintain its market share, the company
must stay updated on the constantly evolving market trends and customer preferences.
Introducing new products without carefully aligning them with the brand's positioning can lead to
consumer confusion. Nike's global expansion plans are not without their fair share of risks.
Fluctuating currency exchange rates, the possibility of a global economic recession, and political
instability all pose potential challenges.

Ultimately, Nike's marketing strategy has its strengths, weaknesses, and potential risks.
Although the company maintains its position as a frontrunner in the industry, there is an
opportunity to enhance and adjust strategies to overcome obstacles and outpace rival
companies.

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

To effectively compete with Nike, I must adopt a strategic approach that capitalizes on Adidas'
strengths and tackles its weaknesses.

I should focus on highlighting Adidas' distinct brand identity and values to set itself apart from
Nike. One way to accomplish this is by emphasizing rich history, cutting-edge product design,
and dedication to environmental responsibility. By highlighting its unique brand proposition,
Adidas can appeal to consumers who appreciate these specific qualities.

To boost brand visibility and credibility, I will also consider collaborating with influential athletes
and celebrities, just like Nike does. By working alongside athletes from different sports and
participating in co-creation projects, Adidas can establish a more profound connection with
consumers. By emulating Nike's approach, Adidas can achieve similar success by partnering
with athletes who embody its brand identity. By allocating resources towards research and
development, Adidas can differentiate itself and appeal to consumers who prioritize cutting-edge
innovations in athletic gear.

Another strategy that I will consider is to encompass a wider range of customers. One way to
accomplish this is by focusing on untapped markets, like women, through the development of
tailored product offerings and strategic promotional strategies. In addition, Adidas should
consider exploring opportunities in emerging markets, where there is a rising demand for
sportswear and an increase in consumer purchasing power.

Adidas should allocate resources towards enhancing its online presence and e-commerce
capabilities. This involves optimizing the website to ensure a smooth shopping experience,
utilizing social media platforms for focused marketing campaigns, and employing data analytics
to understand consumer behavior. Adidas can enhance its competitive edge by embracing
digital transformation and effectively countering Nike's robust online presence.

MARKETING CASE 2: Google

1. With a portfolio as diverse as Google’s, what are the company’s core brand values?

Google changed the way people access information; it all started as a dorm room project
in 1998. A misnomer of the gigantic number "googol," its search engine swiftly became the
world's go-to for answers, organizing the ever-growing web with its smart algorithms. However,
Google had further ambitions. The firm has expanded into other interconnected areas, such as
language translation and global mapping, software development for Android devices, and the
development of autonomous vehicles while staying true to its principles of user-centricity,
innovation, and social responsibility. Even though Google has a lot of different departments that
work together, it surprisingly sticks to a set of core brand values that guide its goal and shape
how it operates. These are the followings:

Focus on the user: Google creates products or services that mainly benefit its target users.

Great just isn't good enough: Google values continual development and strives for excellence
in all it does. Its product improvements and innovative new projects show its continuous quest
for excellence.

Do the right thing, don't be evil: This principle underscores the importance of ethical concerns
in Google's operations. It guides making choices about user privacy, data collecting, and the
ethical development of AI.

Fast is better than slow: This aspect involves inside processes, creating a dynamic and fast-
paced environment.

Democracy on the web works: Google strongly advocates for the unrestricted distribution of
information and believes in empowering individuals to express themselves.

There's always more information out there: Google always evolves and grows since data is
limitless. This motivates its research and development, pushing technology's boundaries.

Even now, Google is a major player in the digital industry, impacting not just our daily lives, our
careers, and our visions of the future.

2. What’s next for Google? Is the company right to put so much focus on Mobile?

Google has big plans that are both extensive and ambitious. The company is placing significant
emphasis on "ambient computing," which involves the utilization of computers or internet-
enabled devices without requiring conscious interaction. Google aims to seamlessly incorporate
its products into users' lives, promoting continuous usage regardless of location or activity.
Some of the products covered are Nest, Android devices, Chromebooks, smartwatches, Google
Home, and other similar items. This will ultimately create opportunities to increase website
visitors and generate revenue.
 In addition, the company is emphasizing mobile applications, recognizing the potential for
expansion in this field. As an example, there are approximately 2 million mobile apps, and the
number of mobile devices exceeds 13 billion. The disparity between these two figures indicates
a huge opportunity for growth in the mobile app market. Google also is placing a strong
emphasis on voice search. Because 50% of searches are now conducted through voice, Google
is urging marketers to develop a voice-enabled version of their websites to generate sales and
capture leads.

On the other hand, Google’s focus on mobile is a smart move. The mobile market is growing
quickly, and more and more people are using their smartphones for daily tasks, getting
information, and having fun. Google is making sure it stays relevant and grows by making its
goods and services work better on mobile devices. However, focusing on mobile may overlook
other intriguing opportunities. Google must balance mobile superiority with investments in AI,
cloud computing, and Web 3.0 to stay ahead in the digital world.
References:

Patel, N. (2021, August 28). An Inside Look at Google’s Future Plans. Neil
Patel. https://cc.bingj.com/cache.aspx?
q=Niel+patel+an+inside+look+of+google+future+plan&d=4885834884983775&mkt=en-
PH&setlang=en-US&w=mn5D0DLWqs-t0j70KUiQIsLpEqTI2Rfe
Referral Candy. (2018, June 17). Nike’s Brilliant Marketing Strategy — Why You Should Be
(Just) Doing it Too. Medium. https://medium.com/the-mission/nikes-brilliant-marketing-
strategy-why-you-should-be-just-doing-it-too-d3680d9254ba
Sanusi, M., Lazarev, A., Jorgensen, J. M., Latsanych, V., & Badtiev, T. (2014, July 9). How
Nike's marketing strategies helped it become a global brand. Business Today.
https://www.businesstoday.in/magazine/lbs-case-study/story/nike-marketing-strategies-
global-brand-45353-2014-06-25
Patel, N. (2021, August 28). An Inside Look at Google’s Future Plans. Neil
Patel. https://cc.bingj.com/cache.aspx?
q=Niel+patel+an+inside+look+of+google+future+plan&d=4885834884983775&mkt=en-
PH&setlang=en-US&w=mn5D0DLWqs-t0j70KUiQIsLpEqTI2Rfe
Ten things we know to be true - Google. (n.d.).
https://about.google/philosophy/