NIKE

MARKETING
STRATEGY
AMRAN DEWANGGA / 2171001013
ARIEF RAHMAN / 2171001028
ALEXANDER SIDAURUK / 2171001033
Presentation Outline

 Intro- About Nike

 Acquition-Deacquition
 4P Nike
 Nike Value Chain
 Pro – Cons and Risk
 About Adidas
 Adidas SWOT Analysis, How to compete Nike
ABOUT NIKE

 Nike, is an American multinational corporation that is

engaged in the design, development, manufacturing and
worldwide marketing and sales of footwear, apparel,
equipment, accessories and services.
 Nike, originally known as Blue Ribbon Sports (BRS), was
founded by University of Oregon track athlete Philip
Knight and his coach Bill Bower man in January 1964.
From 1971 it is called as NIKE .
 Nike, head quarter is located in Beaverton, Oregon, US.
 Nike is currently having 44,000 employees.
Acquisition-Deacquisition
Nike Value Chain
4P
 PRODUCTS
 Shoes, Jerseys, Shorts, Base layers for a wide range of sports.
 Nike recently teamed up with Apple Inc. to produce the Nike+.
 PROMOTION
 1994-Victory of Brazilian team.
 2008-09- Hosted the Human race
 2009-launched Tiger web talkback session.
 PRICE
 Nike uses vertical integration in pricing
 The pricing is based on the basis of premium segment as target customers.

 PLACE
 Nike shoes are carried by multi-brand stores and the exclusive Nike stores across the globe.
 Most of the factories are located in Asia,including Indonesia, China, Taiwan, India, Thailand,
Vietnam, Pakistan, Philippines, and Malaysia.
PRO-CONS & RISK in
Marketing Strategy
 PROS:
 NIKE + (Plus) (Apple).
 Nike customer designing shoes.
 Sponsorship
 CONS:
 High costs incurred in advertisement.
 Nike is not an eco-friendly product.
 Child labor issue.
 RISK:
 Being one of the major players in the World Market when ever Nike
launches a new product it has to make sure it addresses to the
concerns of the Global Market, which is difficult to achieve.
ADIDAS

 Adidas AG is a German multinational corporation that

designs and manufactures sports Shoes, Clothing and
Accessories.
 The company is based in Herzogenaurach, Bavaria,
Germany.
 Adidas also produces other products such as bags, shirts,
watches, eyewear and other sports and clothing-related
goods.
 Focusing on European market
ADIDAS SWOT
 STRENGTH
 Adidas has a high brand value among the
consumer.
 Sponsoring major sports events including
Olympics and sports team.
 Adidas product are available in world wide.
 Produces of wide variety of products.
 Strong work force.
 Customer retention ratio is high.
 WEAKNESS
 Price of the product is high.
 It has been serving limited segments.
 Cost structure of the company is high.
 OPPORTUNITIES
 Market penetration.
 Developing new products to attract new customers.
 Contribute to corporate social responsibility activity.
 Strengthen its market position.
 Expand customer base.
 Merger and acquisition.
 THREAT
 Strong competition (Nike and Puma).
 Demand of the product could decrease due to
economic slow down in
 European countries.
 Social and environmental concerns due to human
rights violation and employment.
 Macroeconomic risk due to change in consumer
expanding habit.
 Technological and design changes.
PLAN OF ACTION

 Focusing on R&D
 Concentrating on emerging markets.
 Creating strong workforce.
 Develop products such as Sport wear, Sunglasses and
Jewellery.