NIKE VS NEW BALANCE

A MARKETING ANALYSIS

TOPICS FOR
DISCUSSION
Marketing Creating and Capturing
Value

Organizations Mission
Marketing Mission
Marketing Strategy / Plan NIKE &
NEW BALANCE

INTRODUCTION
Marketing -Critical To
Organizational Success
The

following

presentation

seeks

to

highlight the importance of marketing to

the success of two rival company in the
manufacturing of shoe and athletic wear.

Businesses Mission &

Objectives
NIKE

NEW BALANCE

Bring Inspiration And Demonstrating

Innovation
To
Every Responsible Leadership,
Athlete* In The World
We Build Global Brands
That Athletes Are Proud
*If You Have A Body, You To Wear, Associates Are
Are An Athlete.
Proud To Create And
Communities Are Proud
To Host.

Nikes Vision
For every team to be high-performing,

diverse, and inclusive

To achieve this vision, the strategy is to:
cultivate diversity and inclusion to develop

world-class, high-performing teams

ignite change and inspire critical
conversations around diversity, inclusion and
innovation
create venues and environments for open
dialogue, diverse opinions and a multitude of
perspectives

NEW BALANCE
New Balance employs the concept of
continuous improvement to increase the
effectiveness of each stage of
manufacturing.

BACKGROUND
INFORMATION

NIKE
Nike has become one of most recognizable
companies in the entire world

Nike is now the most popular brand in, not

just America, but through out the whole
world.

Nike offers all the athletic shoes, clothes,

and other accessories one would need to
wear in their certain sport.

Nikes Target Appeal

LeBron James, Tiger Woods, Mia Hamm
have been recognized as many of today's
sports
Images that are associated with Nike .

Nikes Target Strategy

Nikes target market for their shoes,
clothes and other accessories are males
and females between 18 and 35 years old.

Nikes Competitive market has expanded

and dominated in the international market.

Nike disburse TV ads during professional

and college sports events, prime-time
programs, and late-night TV programs

NEW BALANCE A SYMBOL

OF AMERICA

NEW BALANCE
New Balance Athletic Shoe, Inc. (NBAS),
best known as simply New Balance, is a
footwear manufacturer based in Boston,
Massachusetts. It was founded in 1906 as
the New Balance Arch Support Company.

NEW BALANCE
CUSTOMERS ARE?
Fitness Enthusiast, Outdoor Enthusiast,
Competitive Athlete,

Womens Initiative, Runners, Trend

Relevant, and Moms of Kids

Baby-Boomers who seek function over style

New Balance shoes are mostly worn by older
adults/seniors due to orthopedic
recommendations.

NIKE & NEW

BAL.
MANUFACTURIN
G AND SALES

DO YOU WANT TO
KNOW HOW NIKE AND
NEW BALANCE
ACHIEVED THIS
SUCCESS??

The Marketing
Plan
Framework

MARKETING STRATEGY
FRAMEWORK
Step 1: Business
mission &
objectives

Planning
Phase

Step 2: Situation
analysis
SWOT
Step 3: Identify opportunities
Segmentati
on

Targeting

Positioning

Implementation
Phase

Marketing
strategy
Step 4: Implement marketing mix
Product

Control
Phase

Price

Place

Promotio
n

Step 5: Evaluate
performance
using marketing metrics

SITUATIONAL ANALYSIS
SWOT

WHAT EXACTLY IS A SWOT

ANALYSIS?

STEP 2- SITUATIONAL ANALYSIS

Strengths
The strengths that Nike takes pride in is
getting the top athletes to wear and
sponsor their products rather than events
or competitions as much.

The basis of this comes from the idea that

people tend to remember the brand worn
by players and not the brand that
sponsors the event that the players
perform at.

Economies of Scale
Nike is the single largest producer of
athletic footwear and apparel, allowing them
large cost advantages over competition.

Larger companies tend to have major

economies of scale over smaller companies
in areas such as distribution and marketing.

Nike is so large that many of the companys

suppliers depend on Nike to remain in
business.

Endorsements
Nike has been known for their
endorsements of high profile athletes.

Examples included:
Michael Jordan
LeBron James
Kobe Bryant
Tiger Woods

But, some investors worry about Nikes

star endorsements.

Nike is likely to cut the 2009 marketing

budget

Strength of Patents
One of Nikes most revolutionary technologies comes
through its footwear cushioning.
The cushioning systems in a shoe serve to distribute
pressure evenly among the foot, absorb shock, and
deliver comfort to the user.
Nike has patents on four cushioning technologies:

Nike
Nike
Nike
Nike

Air
Zoom
Air Max
Shox

Although some of Nikes earlier patents are beginning to

expire, they still hold patents on the newer technologies.

In the past, competitors have tried to match rival Nikes
cushioning systems, but none have matched their success.

Weakness
The market that Nike participates in is
very price sensitive. Most of Nikes
income comes from the selling of its
products to retailers.

This usually shows that margins tend to

get squeezed as retailers try to get low
price competition on Nikes products.

Manufacturing Skills
Due to cheap labor in foreign countries,
Nike outsources virtually all production
to other areas of the world.

This behavior has become an industry

standard, with all major competitors
also outsourcing production.

Consequently, no competitor has a

major advantage in manufacturing.

Opportunities
The technology is always changing in the
retail market, as well as the sporting market.

The ability to have the most recent fashion

trends involved in their sporting equipment,
sunglasses, shoes, and clothing is crucial to
generate more money.

Nike has a large global market and a large

acceptance of their product all over the
globe.

Technology in Products
Nike has historically had some of the most
cutting-edge products on the market.

For example, Nike teamed up with Apple

and launched the Nike + iPod line of
products.

This technology allows consumers to

connect their iPod devices to sensors inside
the shoes to record time, distance, pace,
and calories burned.

Threats
The retail sector is becoming substantially
price competitive. Ultimately it means that
consumers are shopping around for a better
deal.

The consumer now maintains the control

over the manufacture

So if a consumer wanted to find the lowest

price on the same exact product, then the
consumer could just walk from store to

Competitors
Adidas is about to launch a new
innovative campaign praising the Team
Spirit in sports

"It takes 5IVE" -celebrating the concept

of team over individual or "we over me"

Nike has always been big on marketing

the individual as the passport to selling
basketball shoes.

IDENTIFYING OPPORTUNITIES

Nikes Target
To move its large and global organization

into organizational learning and sustainable

practices.

Their goal is to spread the understanding of

sustainability throughout the company and

demonstrate its value to the business and its
customers.

In 21st century, you must successfully

integrate corporate responsibility into the

heart of the business.

NIKES POSITIONING
Nike's products are viewed as higher quality and

command higher prices than its competitors,

sometimes though consumers do not agree to this
line of thinking.
To substantiate its high quality/high price lines,
Nike is placing emphasis on the latest technology
and applying innovation towards the development
of new products, particularly the Nike Alpha
Project which is a new line of athletic shoes. In
the past, Nike has overlooked the mid to lower
price point products, which could be a possible
weakness too.

NIKES POSITIONING

Formulating a strategic plan for the

corporations future is key in determining

the all around goals of the company.

Nike, with there marketing, innovation,

technological advancements, and equitable
manufacturing departments, has created
an al around dominant strategic plan

Nike has built there competitive advantage

to the highest form possible.

NIKES
MARKETING MIX

EVALUATE PERFORMANCE
USING BOSTON MATRIX

Environmental Efforts
Nike strives to minimize the environmental impact
of each product throughout its product life cycle
from design to manufacturing, post-consumer use
and ultimate disposal.
NEAT programs now recycle shoe manufacturing waste.

Nike shoes produces solid waste. The largest of

these by weight is cured rubber used in shoe

soling. Nike employees engineered a creative way
to keep it out of landfills and convert it into more
outsoles,called REGRIND, is available to the public.

NEW
BALANCE

MARKET
SEGMENTATION
NEW BALANCE

New Balances
Marketing Mix

Non
athletic
Walking
shoes

Tennis
shoes

Appar
el

THE END