Nike-case study

2. Founded by Bill Bowerman and Phil Knight and
originally called Blue Ribbon Sports, Nike is
an American Multinational corporation,

3. Headquartered near headquartered
near Beaverton, Oregon, in the Portland
metropolitan area, , it’s Brand Mantra
says “ Authentic Athletic Footwear”

4. Believed in a “pyramid of influence”.
Preferences of a small percentage of
top athletes influenced the product and
brand choices of others. Started
expanding all over the world with this
strategy

6. In 1985, Nike signed up then-rookie
guard Michael Jordan as a
spokesperson. the Air Jordan line of
basketball shoes flew off the shelves
and revenues hit over $100 million.

7. Nike sponsors many high-profile
athletes and sports teams around the
world, with the highly recognized
trademarks of "Just Do It" and the
Swoosh logo.

8. Focused on soccer in Europe, to
authenticate its brand there. Nike’s big
break came in 1994 when the Brazilian
team won the World Cup. Acquired
Umbro in 2007 .

9. The Nike Golf brand, endorsed by Tiger
Woods, has changed the way professional
golfers dress. In 2009, it launched a Tiger
Web Talkback session at nikegolf.com.

10. • In tennis, Nike has aligned with Maria
Sharapova, Roger Federer, and Rafael
Nadal to push its line of tennis
clothing and gear.

11. Nike teamed up with seven-time Tour
de France champion Lance Armstrong
not only to sell Nike products but also
to help Armstrong’s LIVESTRONG
campaign.

12. Lead in the running category has grown
to 60 percent market share thanks to
its exclusive partnership with Apple.
Nike (Plus) technology includes a sensor
and a receiver.

13. In 2008 and 2009, Nike hosted the
Human Race 10K, the largest and only
global virtual race in the world.

14. Nike dominates the athletic footwear
market with a market share of 31 % globally
and a 50 % in USA. It is the top athletic
apparel and footwear manufacturer in the
world, with corporate fiscal 2009 revenues
exceeding $19 billion.

15. WHAT ARE THE PROS, CONS, AND RISKS ASSOCIATED WITH
NIKE’S CORE MARKETING STRATEGY?
Pros:
• Advertising and Promotion
• Segmentation and Targeting
• Distribution and Market Penetration

16. Cons:
• Intense competition in the industry.
• Pyramid of influence ( spokespersons and brand
endorsers), over reliance on marketing.
• Selectively targeted market, high costs incurred
during production and marketing.

17. Risks:
• Changes in Market Trends, Consumer
Tastes and Preferences.
• Deals with a lot of overseas markets with
risky economic and political climates.
• Allegations and other controversies
related to the sports stars.

18. IF YOU WERE ADIDAS, HOW WOULD YOU COMPETE WITH
NIKE?
• Focus on Emerging Markets like India,
China, Korea, Japan and other countries
where Nike hasn't penetrated much and
sports like cricket, baseball, badminton
where Nike isn’t present.
• Encourage Product Customization, and
improve its customer reach and
sponsorship

19. • Implementation of Rebranding Reebok,
a part of Adidas . In the process,
internal competition, cannibalization
should be avoided and a market for non
expensive sports shoes must be captured
by it.

20. SUMMING IT UP…
• Nike was started as Blue ribbon sports, which has become
the world’s largest company for athletic footwear.
• Uses the strategy of pyramid of influence and has ventured
into a lot of markets across the world, using the same
• Aligns itself with various super stars, in various sports to
improve it’s image in that sport.
• Has launched innovations like Nike+ with Apple.
• Is still on the trot, with innovations coming up everyday to
maintain its position at the top

21. DISCLAIMER
This slideshow is created by Amulya
Shruthi, BITS Hyderabad during a
Marketing Internship by Sameer
Mathur, IIM Lucknow