SUMMARY

Nike committed in footwear market focused athlete community based on

U.S consumers. Hence Nike marketing strategic mainly focusing on the
pyramid of influence where success athletes play significant role in crafting
the brand image. At the same time they persuade others in buying
decisions. Meanwhile Nike is also used adds as a publicity as one of
promotion tools to influence consumer behavior. Besides that, Nike also
aggressively applies sponsorship strategies in Europe to capture soccer
audience. Thus, audience look upon Nike as a must personal fitting and
this make Nike to enter International Global market. However, Nike is not
only concentrating in a particular sport in term of producing footwear but
also in variety sports. They focus more than one product line to be safe in
the competitive market. Not only that, Nike is also involved in partnership
policies as one of the marketing strategy. For example, Nike has merged
with Apple to sustain the brand image. Further to this, Nike energetically
conducting event marketing to stand up their brand image among
consumer as well potential user.

Question 1:What are the pros, cons, and risks
associated with Nikes core marketing
strategy?
Pros

1. High portfolio celebritys endorsement.

Nike is heavily contingent on the popular athletes for the marketing purposes &
selling its products. Hence, make people believe the product contributes to
superstar status.

Ex Tiger Wood well known as the champ athlete for Nike brand of athletic
shoes. The brand endorsed by him well recognize/associated with success.
Thus customers will try to match themselves with Tiger Wood to declare
themselves into success cluster of people too which ending buying the same
apparels alike celebrity.

Ex Successful American businessman, Phil Knight has NIKE logo tattooed on
his ankle as symbol of endorsement for the brand.


2. Products Design
Nike put heavily proportion in their marketing strategies and
products deign. In order to sustain their dominance in the industry
and retain their competitive advantages, Nike actively responds to
the market trends and changes in consumer preference by adjusting
their marketing strategies, the mix of existing product offerings,
developing new products, styles and categories, and influencing
sports and fitness preferences through various marketing strategies.

Ex Nike always enclose diverse type of design and material such as
Polyester, Eva Foam, Rubber, Cotton, Synthetic leather and leather
foam to present comfort wear. Meanwhile they also include new
choices for recycled and recyclable materials to reduce the overhead
cost.

3. Emotional Branding
Nike advertising uses the emotional branding technique of Heroism to
inspire incredible customer loyalty all over the world. The hero starts
from humble beginnings, challenges a foe greater than he, and against
all odds, prevails.

Ex- NIKE use heroism character to story about the humble beginnings,
challenges a foe greater than he, and against all odds, prevails. The
NIKE presents you are the hero with NIKE apparels, and your lazy
side is the villain.

Cons

1. Celebrity Endorsement
Images change caused celebrities make mistakes. And when they do,
they can affect the brands they endorse.
Ex in 2009, Tiger Woods public image crumbled after his infidelity
with a number of women, including pornography actresses, hit the
news.
Ex General Motors, Gillette, Accenture, and Gatorade dropped Tiger
to avoid negative perception. Nike stuck around and lost customers
and the golf industry as a whole saw a major revenue slow-down with
no Tiger on the course.
Celebrities become overexposed where at the height of Tiger Woods
popularity, he endorsed over ten companies at once. When a celebrity
works with so many companies, the celebritys credibility may suffer.
People may feel that the celebrity will endorse anything to make a
buck.

2. Competition.


Nike has lots of pressure from rivals. The main ones include
companies like Adidas and Puma. However, there are more upstarts
(New brand footwear) that are making inroads.
Ex-Lululemon Athletica (Nasdaq:LULU), which has built a strong
franchise with yoga apparel.


Risk

1. Too much of celebrity endorsement
This strategy is beneficial but costly. It generated Nike an immense
profit. However, consumers are now more conscious and in future they
may not be influenced by an athlete. Professional athlete said that,
consumer may prefer to buy products they think is suitable to them
rather than just following. Beside as discuss earlier images changes by
the celebrity can impact tremendously to the sales growth of NIKE.
Ex- In 1994 Nike teamed up with Brazil national team and gained
popularity only because Brazil had won the cup. If Brazil had lost the
tournament, the outcome would have been totally different. The action
and attitude of Nikes chosen spokespersons could bring the impacts
on its promotional stratagems.

2. Ambush Marketing
This strategy would mislead the public and pollute the commercial
values of the event as well create unhealthy competition to expose
NIKE brand among consumers.
Ex-During Barcelona Olympic in 1992, NIKE spend $700Million for
press conference to promote directly their US basketball winning
moments.

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

1. Product
As Adidas, would make more diversity on the sport product. Hence Adidas will not
depend upon footwear market only, but will also expend into varieties of sports product.
Besides, Adidas will not only focus on single brand market where few other brands will
be invented under the roof to capture the consumer market.

2. Price
Adidas marketing strategies will be none price sensitive rage which will be considered
everyone can owned the product.

3. Place
Adidas will build strong international operation in order to capture the local market too.

4. Promotion
Adidas will more emphasized and actively engaged in CSR program to create awareness
about the brand which it is in directly a method of promotion.