This document summarizes a case presented by Jacob, Martin, and Mads regarding the Nike-Apple partnership. It provides an overview of Nike and Apple as companies, describes the Nike+ iPod product, and poses three questions for analysis: 1) strategic opportunities and pitfalls of the partnership, 2) how co-branding influences consumer decision making, and 3) the competitive threat posed by the Adidas-Samsung partnership and potential Nike-Apple responses.
2. Nike Apple
A major player in the Designs and markets
clothing and sports consumer electronics,
equipment industry
computer software and
Founded in 1964 as Blue personal computers
Ribbon Sports
Founded in 1976
Nike sponsors a large
number of high profile Best known for the
athletes and sports
teams around the world Macintosh computer,
iPod, iPhone and iPad
Recognized by the “Just
do it” slogan and Swoosh
logo
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3. The product:
The Nike + iPod kit measures and records the distance and
pace of a walk or run, using a small chip embedded in a Nike
shoe, which communicates with an iPod and other Apple
software
The scene:
Intelligent sportswear
The case - Nike+ iPod:
Nike-Apple partnership
Strategic opportunities/pitfalls
Co-branding & decision-making process
Adidas-Samsung vs. Nike + iPod
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4. Conduct an analysis of the Nike-Apple partnership, including a
discussion of the strategic opportunities (and possible pitfalls)
this collaboration presents for each partner?
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5. Both market leaders within their industry
Mutual interests
Same type of customers
Brand synergy - both ways
Large joined customer base
75% of all runners already listen to music (Enclosure 2)
A Nike crisis affects Apple and vice versa
”The Nike/Apple co-branding ventures is
successfulbecause of its undeniable ability to addvalue
to eachother’sproducts,
therebycreatingsomethinggreaterthan the sum of their
parts.” - The Duffy Agency.
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6. S
The Apple & Nike brands
Innovative
Market leaders
Large loyal customer base
W
Product requirements
High priced
O
Brand synergy
Distribution channels
Expansion of technology
T
Expansion of technology
Potential harmful influences
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8. Describe and discuss the consumer decision-making process in
relation to purchasing Nike+ shoes and iPod Sport Kit or Sensor.
How does the co-branding influence the decision-making
process?
9. 2 types of Nike + iPod buyers:
Dedicated and loyal customers
Members of the “Nike community”
“Apple-fans”
Contemplating customers
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10. Need recognition & Problem
awareness
Information search
Evaluation of alternatives
Purchase
Post-purchase evaluation
“Five-stage model” Kotler, p.
246
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11. The best of two strong brands
Brand equity influence
Collective pitfalls
Loyal customer base
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12. • Adidas and Samsung have developed a fitness concept, the
“miCoach system” (Enclosures 3 and 4), which bears
resemblance to the Nike + iPod system.
• To which extent does the Adidas-Samsung partnership
constitute a competitive threat to Nike and Apple?
• How may Nike and Apple respond to this?
13. A differentiated oligopoly market
Few major players
Nike-Apple, Adidas-Samsung, Garmin, Polar
Nike-Apple the market leader
Adidas-Samsung the market challenger
Segmental flank attack on Nike-Apple
Phone
Nike-Apple respond counter-offensive defence
strategy (iPhone)
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14. 4 P’s
Difference in:
Price
Adidas: $ 300-600
Nike-iPod: $ 180-230
Product
No phone vs. Phone
Nike shoes exclusively vs. all brands
Adidas-Samsung: less music storage
Place
Adidas-Samsung only sold in Europe
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15. Operating within the same market a threat
Differences in the 4 P’s softens the threat
Nike-Apple needs to keep an eye on the
other market players
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