Marketing management case analysis of 'NIKE'. This PPT contains Nike's Acquisitions, Pros & cons and risk faced by NIKE and spokes persons of the NIKE. SWOT analysis of ADIDAS. Purely focused on Marketing Mix and SWOT analysis of NIKE and ADIDAS.
2. 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 calling as NIKE .
Nike, head quarter is located in Beaverton, Oregon, US.
Nike is currently having 44,000 employees.
3. SPOKESPERSON FOR NIKE
MICHAEL JORDAN (US) - basketball - revenue $100 million.
TIGER WOOD (US)- Golf - build great customer relationships.
MARIA SHARAPOVA (Russia), ROGER FEDERER(Switzerland),
RAFAEL NADAL (Spain)- Tennis - revenue $10.6 million.
4. ACQUISITION AND DEACQUISITION BY THE NIKE
Company name Acquisition year
Cole Haan 1988
Bauer Hockey 1994
Hurley International 2002
Chuck Taylor All-Stars 2003
Starter 2004
Umbro 2008
ACQUISITION
Company name Deacquisition year
Starter 2007
Bauer Hockey 2008
Umbro 2012
Cole Haan 2013
DEACQUISITION
5. 4 P’s OF NIKE
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.
Nike is giving 30% discount for law and
enforcement appreciation for the police
officers.
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.
6. WHAT ARE THE PROS, CONS AND RISK ASSOCIATED
WITH NIKE’S CORE 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.
7. RISKS
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.
8. 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.
9. IF YOU WERE ADIDAS, HOW WOULD YOU COMPETE WITH
NIKE?
10. SWOT ANALYSIS FOR ADIDAS
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.
11. WEAKNESS
Price of the product is high.
It has been serving limited segments.
Cost structure of the company is high.
12. 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.
13. 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.
14. PLAN OF ACTION
Focusing on R&D.
Concentrating on emerging markets.
Creating strong workforce.
Develop products such as Sport wear, Sunglasses and Jewellery.
