Nike has expanded into Japan to pursue growth opportunities outside of the slowing US market. It operates 160 countries globally and has headquarters in Portland, Netherlands, Shanghai, and Tokyo. In Japan, Nike has found success by standardizing its popular brand while adapting marketing approaches to the local culture's preference for "soft sell" advertising linked to spirituality. Nike entered Japan in 1981 through a partnership and has since opened multiple retail stores nationwide, catering to local sports like baseball. While facing competition from domestic brands Mizuno and Asics, Nike has maintained its presence in Japan through brand recognition and tailored product lines.

1. Nike in Japan
Group 2:
Amanda Collins
Preston Paynter
Andrew Radka
Amanda Rodwell
William Walker

2. Nike’s Mission Statement
 “To bring inspiration and innovation to every athlete* in
the world”
 *If you have a body, you are an athlete.

3. Overview
 Nike operates in over 160 countries on 6 different
continents
 Nike has headquarters in
 Portland, Oregon
 Hilversum, Netherlands
 Shanghai, China
 Tokyo, Japan

4. Unofficial Goal
To take over the top
spots in athletic
apparel in the markets
that they are not
already deemed as
number 1

5. Where Expanding to and Why
 Where: Japan
 Why:
 Open stores in Japan because of slowing growth in US
market
 Nike had ties since it started importing Japanese shoes
before 1971

6. Nike’s Orientation to Global
Marketing
 Regiocentric
 Master Brand- Universal Ideals
 Adapts Marketing
 Standardizes Products

7. SWOT
 Strengths: Instant Brand Recognition, Lean
Organization, Research and Development
 Weaknesses: Heavily dependent on footwear market
(60% of sales), low price pressures
 Opportunities: Product development with subcultures,
Broader Recognition
 Threats: Rivals (Mizuno & ASICS started in Japan),
Natural Disasters, Different culture

8. Competitive Analysis
 Rivals
 Adidas/Puma- football or “soccer”; running
 Mizuno- created in Japan, Baseball/Golf
 ASICS- created in Japan (49% Sales), part of Onitsuka
Tiger Co.
 Fila Korea -young population, running
 How will they compete:
 Aggressive Marketing of Brand,
NOT Individual Products
 Big Endorsers
 Specialty Lines

9. PESTEL/CAGE Frameworks
 PESTEL
 High GDP/GDP per capita
 Highly urbanized
 Highly educated
 CAGE
 Shifting Individualism
 Importance of Status

10. Plan for Expansion
 Nike started in 1962: Importing Japanese running
shoes from independent contractors (Tiger Co.)
 Made financial sense to open stores where already had
factories (1981)
 Allied itself with Nissho Iwai (6th largest Japanese
trading company) to form Nike-Japan Corporation
 Standardize Product, Adapt Marketing and Price

11. Marketing Mix Adapted
 Product: Baseball, Football emphasis.
 Promotion: Brand recognition, Athletes, focus on mood
and Japanese style
 Price: Price leadership and value based pricing to gain
market share.
 Place: Focus shifted from the flagship store in Tokyo to
more retail and outlet stores country-wide.

12. Connection to Universal Ideals
 Michael Jordan quote: “It’s not about the shoes;” what it
is about, undeniably, is the furthering of the world’s
collective spirit.”
 Powerful appeal
 Have to resist localization for strategic reasons (won’t
be profitable)

13. Difference in Marketing
 Japan’s way of advertising:
 constant need for added cultural value
 must be linked to a kind of spiritual or cultural
enhancement
 “soft sell” importance: mood more important than content
itself
 Taps into richness of Imagination/Absurd to western
audience
 Example: Japanese Nike Commerical

14. US vs. Japan Ad
US Advertisement
Japanese Advertisement

15. Lebron James Cultural
Differences

16. Implementation
 Opened stores in 1981
 Penetration strategy: undifferentiated targeting
approach
 Open 16 factory outlets/9 retail stores- appeal to lower
price points
 Offer same brands- Nike, Nike Golf, Nike Pro, Nike +,
Air Jordan, Nike Skateboarding
 Added: SHA|DO Special Baseball Line, Nike ID

17. Subsidiaries
 Acquired and currently own:
 Hurley
 Converse
 Sold to refocus on core business lines:
 Cole Haan in 2013
 Umbro in 2012
 Bauer Hockey in 2008
 Recently Announced to be Acquired:
 USATF (United States Track and Field)

18. Execution
 Successfully entered in Japan by leveraging with Nissho
Iwai- created Nike-Japan
 Immediately successful in Sales
 Use Standardized Product/Brand Recognition- Nike
“Swoosh”
 Adapted Marketing (Focus on Mood & Soft Sell)
 Catered to Subcultures (Adding Special Lines/Nike ID)
 Established as low-end provider but looking to move into
high-end because of increased competition today
 Failed (decrease in revenue) a few times due to localization
attempt

19. Recommendations
 Use brand recognition to move into fashion - Connects
with mission statement (every “body” is an athlete)
 Ex: Selena Gomez/Jay-Z endorses Adidas
 Appeal to youthful individualistic market/culture and
advanced, technological culture (Tokyo Flagship retail
specialty store)
 Sponsor Athletic Teams in Country/Universities
 Ex: Mizuno & ASICS create casual uniforms for Japan in
Sochi Olympics

20. Evaluation
 Financial Metrics- short term immediate success
 Sales Revenue
 Market Share (4% of Nike in Japan)
 Marketing Metrics- long-term sustainability
 Brand Impact
 Perception
 Social Responsibility

21. Thank YOU!
Any Questions?