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H O M E / / U NCAT E G ORIZ E D / / A M AR KETIN G C ASE S TU DY O N N IK E A M AR KETIN G C ASE S TU DY O N N IK E W RIT TE N B Y M IL E S M ED IA O N A PR IL 1 0, 2 016 . P O STE D IN U NCAT E G ORIZ E D 1 .0 IN TR O DUCTIO N O F N IK E N ik e is a m ajo r p ublic ly tr a ded s p orts w ear, fo otw ear a nd e quip m ent s u pplie r b ase d in th e U S w hic h w as fo unded in 1 962 o rig in ally k n ow a s B lu e R ib bon S ports . N ik e is th e w orld le ader in th e m anufa ctu rin g o f s p orts w ear a nd g ear w it h m ore th an 4 7 m ark e t s h are s a cro ss th e g lo bal ( N ik e .c o m , 2 011 ).

N ik e p ro duce s a w id e r a nge o f s p orts e quip m ents s u ch a s r u nnin g s h oes, s p orts w ear, fo otb all, b aske tb all, te nnis , g olf , e tc . N ow N ik e f o llo w s th e g lo bal fa sh io n tr e nds a nd is w ell k n ow n a nd p opula r in th e y o uth c u lt u re a nd h ip h op c u lt u re to s u pply s o m e fa sh io n p ro ducts .

N ik e r e ce ntly te am s u p w it h A pple C om pany to p ro duce th e N ik e + p ro ducts w hic h c a n m onit o r a r u nner’s p erfo rm ance th ro ugh a r a dio in t h e s h oe th at c a n lin k to th e iP ods. B esid es th at, N ik e a ls o b eco m es th e to p o f th re e c o m panie s w hic h a re c lim ate -fr ie ndly c o m panie s w hic h b uild b ette r im age to c u sto m ers .

N ik e ’s e xce lle nce m ark e tin g s tr a te gie s a re th eir e nerg y to a ch ie ve th eir m ark e t g oals . N ik e b elie ve s th e “ p yra m id in flu ence ” th at th e p re fe re nce s o f a s m all p erc e nta ge o f to p a th le te s in flu ence th e p ro duct a nd b ra nd c h oic e . S o N ik e c o ntr a cte d w it h m any a th le te s’ s p oke sp ers o n, p ro fe ssio nal te am s a nd c o lle ge a th le tic te am s to a dve rtis e a nd p ro m ote th eir p ro ducts to c u sto m ers . N ik e s e rio usly p ay a tte ntio n o n th e te ch nolo gy p ro ducin g, d esig n a nd s e llin g s u ch a s e -c o m merc e , h ig h-te ch r u nnin g s h oes, N ik e + w it h A pple , e tc . N ik e o uts o urc in g th eir p ro ducts m ost o f th e fa cto rie s a re lo ca te d in A sia s u ch a s C hin a, In donesia a nd In dia .

2 .0 P R O S O F N IK E’S C O RE M ARKETIN G S TR ATE G Y  N ik e p ut h eavily p ro portio n in th eir m ark e tin g s tr a te gie s a nd p ro ducts d eig n. In o rd er to s u sta in th eir d om in ance in th e in dustr y a nd r e ta in t h eir c o m petit iv e a dva nta ges, N ik e a ctiv e ly r e sp onds to th e m ark e t tr e nds a nd c h anges in c o nsu m er p re fe re nce b y a dju stin g th eir m ark e tin g s tr a te gie s, th e m ix o f e xis tin g p ro duct o ff e rin gs, d eve lo pin g n ew p ro ducts , s ty le s a nd c a te gorie s, a nd in flu encin g s p orts a nd f it n ess p re fe re nce s th ro ugh v a rio us m ark e tin g s tr a te gie s. N ow w e d is cu ss th e p ro s o f N ik e ’s c o re m ark e tin g s tr a te gie s a nd r e la te d th em t o th e r e le va nt m ark e tin g th eorie s h elp u s to d epth u nders ta ndin g.

2 .1 D is tr ib utio n M ore e ff ic ie nt p ro duct d is tr ib utio n is th e m ore s a le s a nd th us m ore p ro fit s . T he d eliv e ry o f th e r ig ht p ro ducts a nd a t th e r ig ht tim e to th e c u sto m ers is n ot o nly e ff e ct th e u tilit y b ut a ls o le ads to h ig h le ve l o f c o nsu m er’s s a tis fa ctio n a nd lo ya lt y . N ik e d is tr ib ute s it s p ro ducts o n d if f e re nt le ve l b asis . T he h ig h p re m iu m p ro ducts a re g iv e n to a c e rta in d is tr ib uto rs w hile le avin g th e lo w p ric e d to b e s o ld a t h ig hly d is co unte d p ric e a t th e r e ta il s to re s s u ch a s W al- M art ( J e annet J , 2 00, p p 4 4).

N ik e h as b eco m e th e le ader in th e e -c o m merc e b y b ein g th e fir s t to th e m ark e t w it h it s e -c o m merc e w ebsit e . N ik e la unch ed it s e - c o m merc e s it e in A pril 1 999 b y o ff e rin g 6 5 s ty le s o f s p ort s h oes to th e U S m ark e t fo r p urc h asin g ( N ik e , 2 000). T his p ro gra m r e pre se nts t h e fir s t tim e a c o m pany h as o ff e re d m ass fo otw ear th ro ugh th e In te rn et a nd p ro vid es c o m petit iv e a dva nta ges to N ik e .

2 .2 A dvertis in g a n d P ro m otio n N ik e m ake s c o ntr a cts w it h s o m e c e le brit y a th le te s w hic h c a n d ra w a tte ntio n to th eir p ro ducts s u ch a s T ig er W oods, R onald o. T his h as c re ate d a r e la tiv e ly h ig h le ve l o f N ik e ’s a w are ness. B esid es th at, N ik e a ls o e m plo ye d a la rg e a m ount o f a dve rtis e m ents th ro ugh th e m ass m edia ( G old m an S , 2 000, p p 1 54). N ik e ’s b ra nd im ages, in clu din g th e N ik e ’s n am e a nd th e tr a dem ark a re c o nsid ere d to r e pre se nt o ne o f th e m ost r e co gniz a ble b ra nds in th e w orld . T he N ik e n am e a nd a sso cia te d tr a dem ark s h ave a ppeare d fr o m p la ye rs ’ s h ir ts , p ants a nd e ve ry w here . T heir a ggre ssiv e a dve rtis in g c a m paig ns, c e le brit y e ndors e m ents a nd q ualit y p ro ducts a ll e nhance th eir b ra nd a nd i m age. F or e xa m ple , w hen a c e le brit y a th le te s p onso rs a s p ecif ic b ra nd o f a th le tic s h oes, th e b ra nd w ill b e a sso cia te d w it h s u cce ss.

2 .3 P ric e N ik e ta rg ets o n th e c o nsu m ers w ho c a re m ore a bout th e u tilit y a nd q ualit y o f th e p ro ducts r a th er th an th e p ric e . In th is w ay, th e p ric e is n ot a ff e ct to o m uch ( F ra nk, 2 004, p p173). T his h as m ake N ik e to s e t r e la tiv e ly h ig her p ric e th an it s c o m petit o rs . T his s tr a te gy fo cu se s o n t h e c o nsu m ers w ho lik e N ik e a nd p ush es th e p ro ducts v a lu e to a h ig her le ve l. T he c u sto m ers w ho c o nsid er a p ro duct to b e h ig h q ualit y a re lik e ly to p ay th e h ig h p ric e m ore o fte n a nd c o nsis te ntly . O nce th e c o nsu m ers d eve lo p th e p ro duct in tim acy, th ey c o m e to a sso cia te t h eir p ers o n w it h th e p ro ducts a nd w ill p ay w hate ve r p ric e q uote d o n th e p ro ducts . N ik e u se v e rtic a l in te gra tio n p ric e s tr a te gy in w hic h th ey ta ke o w ners h ip o f th e p artic ip ants a t c h annel le ve l th at d if f e r a nd th ey a ls o e ngage in v a rio us c h annel le ve l o pera tio ns b oth to c o ntr o l c o sts a nd th us in flu ence th e p ric in g fu nctio n ( G old m an S , 2 000, p p154).

2 .4 M ark et S eg m en ta tio n a n d T a rg et M ost o f th e c o nsu m er o f N ik e ’s p ro ducts is m ain ly a th le tic . N ik e is th e m aste r o f s e gm enta tio n, th eir s e gm entin g m ark e t ty p ic a lly ta rg et’s a th le te s, b oth w om en a nd m en fr o m th e a ge 1 5 to 3 5. N ik e ’s ta rg etin g m ark e t is a ctiv e p eople w ho e njo y h ig h q ualit y s p ortin g g oods, e sp ecia lly fo otw ear. N ik e fo cu se s o n c re atin g p re m iu m c o nsu m er e xp erie nce s o n p ro duct in nova tio n, b ra nd le aders h ip a nd e le va te d r e ta il p re se nce . N ik e ta rg ets o n th ese c u sto m ers b y a gre em ents b etw een N ik e a nd a th le tic te am s, c o lle ge’s a th le tic te am s fo r p ro ducts s p onso rs h ip a nd e ve ntu al p ro m otio n to th e m em bers o f th ese te am s. E ve n th ough o th ers a re lik e ly to b uy th e p ro ducts , N ik e fo cu se s o n t h e a th le te m ore th an a ny g ro up o f in div id uals e ve n th ough it a ls o ta rg et o n th e y o uth . T his s tr a te gy is e sp ecia lly s u cce ssfu l b eca use o f i t s a bilit y to r e ach a la rg e n um ber o f a th le te s.

3 .0 C O NS O F N IK E’S C O RE M ARKETIN G S TR ATE G Y A lt h ough N ik e ’s m ark e tin g s tr a te gie s h ad b rin gs lo t o f p osit iv e im plic a tio ns to th e c o m pany, b ut it w ill b rin g n egativ e im plic a tio ns to N ik e t o o. T he n egativ e im plic a tio ns th at w ill id entif y in th is a ssig nm ent a re h ig h c o st in cu rre d, in flu ence o f s p oke sp ers o n, a nd c o m petit o rs .

3 .1 C ostly S in ce N ik e h as im ple m ente d s e ve ra l m ark e tin g s tr a te gie s, it h ad in cu rre d h ig h c o sts in p ro ducin g a nd p ro m otin g it s p ro ducts . T he c o sts a re in cre ase a m ong h andlin g in ve nto ry , d esig nin g, a dve rtis in g a nd p ro ductio n. ( A bhir o opsu r, 2 009) B eyo nd th at, th e in fla tio n h ad r a is e d t h e c o sts o f r a w m ate ria ls a nd tr a nsp orta tio n. T o d eal w it h th ese p ro ble m s, N ik e h as in cre ase d th e p ro ducts ’ p ric e s a nd r e duce s it s m ark e tin g b udget. T here fo re , th is c o uld h urt th e lo ng-te rm g ro w th o f th e N ik e . ( T a ulli, 2 011 ) A cco rd in g to B oggan ( 2 001), N ik e h ad a ls o e m plo ye d c h ild la bor in C am bodia to r e duce it s p ro ductio n a nd la bour c o sts . T his h ad a ff e cte d it s b ra nd im age, a nd it m ig ht h ave m any p eople b oyco tt N ik e a nd s to p to b uy a nyth in g fr o m N ik e . ( B oggan, 2 001) F urth erm ore , N ik e h as b een u sin g c h ild la bour in th e p ro ductio n o f it s s o cce r b alls in P akis ta n. ( T E D , 2 011 ) 3 .2 In flu en ces o f s p okesp ers o n O ne o f th e N ik e ’s c o re m ark e tin g s tr a te gie s is d epend o n a g ro up o f a th le te s to p ro m ote it s p ro ducts . N ik e p re fe rs to h ave h ig h p ro file a th le te s a s it s e ndors e rs , lik e R unner S te ve P re fo nta in e, M ic h ael J o rd an, a nd L eB ro n J a m es. T he a th le te s h ad p osit iv e a nd n egativ e i n flu ence o n c h angin g c o nsu m er p re fe re nce s, c h anges in c o nsu m er ta ste s a nd p rio rit ie s, a nd a ls o c o nsu m ers ’ b uyin g d ecis io ns. T he a ctio n a nd a ttit u de o f N ik e ’s c h ose n s p oke sp ers o ns c o uld b rin g th e im pacts o n it s p ro m otio nal s tr a te gie s. F or in sta nce , it w ill a ttr a ct th e a th le te ’s id ola te r to p urc h ase th e p ro ducts if N ik e u sin g a p opula r a th le te a s e ndors e r. O n th e o th er h and, if th e a th le te w ere c a ught in d ru g a ddic te d o r a ny im mora l a ttit u de, it w ill a ff e ct th e c u sto m ers n ot to b uy N ik e ’s p ro ducts , th us w ill a ff e ct N ik e ’s s a le s, r e ve nue a nd p ro fit . ( C lo ke M ., 2 011 ) 3 .3 In te n se C om petit o rs T here is in te nse c o m petit io n fa ce d b y N ik e . T heir c o m petit o rs a re A did as, R eebok, P um a, a nd s o fo rth , w hils t c o m petit io n is tig hte r w it h t h e c o m in g o f A did as. M ore , th e p ro duct lin e is s lig htly d if f e re nt b etw een N ik e a nd A did as. N ik e is m ain ly fo cu s o n fo otw ear fo r m en a nd w om en w ho b etw een 1 5 to 3 5 y e ars o ld , w hile A did as is s p ecia liz e in fo otw ear fo r m en, w om en a nd c h ild re n b etw een th e a ge o f 1 0 to 3 0. T his h ad s h ow n th at th ere is le ss d iv e rs if ic a tio n o f N ik e m ark e tin g s tr a te gy. T hey c o uld a ls o p ro vid e fo otw ear fo r c h ild re n to a ttr a ct m ore p are nts to b eco m e th eir p ote ntia l c u sto m ers . A ddit io nally , N ik e d is tr ib utio n s tr a te gy is m ain ly fo cu s in d om estic m ark e t w hic h is U nit e d S ta te s o f A m eric a , w hils t A did as’s m ain o ff ic e is lo ca te d a t G erm any, b ut it fo cu s in E uro pean m ark e t. T here fo re , N ik e s h ould d is tr ib ute it s p ro ducts to m ore r e gio n a nd c o untr ie s in o rd er to c a ptu re m ore p ote ntia l c u sto m ers a nd a ch ie ve g re ate r r e puta tio n. ( A llic k e t a l. , 2 000) 4 .0 R IS K S O F N IK E’S C O RE M ARKETIN G S TR ATE G Y N ik e fa ce s m any r is ks w hen th ey u se th eir c o re m ark e tin g s tr a te gie s to a ch ie ve th eir g oals a nd th ese r is ks c a n c o m e fr o m b oth in te rn ally a nd e xte rn ally e nvir o nm enta l c ir c u m sta nce . T he r is ks w ill h ave a n egativ e in flu ence a bout N ik e ’s fu tu re d eve lo pm ent, fo r e xa m ple , th e m ark e t s h are in th e w orld , r e puta tio n, b ra nd im age a nd c u sto m er lo ya lt y .

4 .1 C han ges in M ark et T re n ds, C onsu m er T a ste s a n d P re fe re n ces N ik e n eeds to s ta y o n th e to p o f c h anges in c o nsu m er ta ste a nd p re fe re nce s a s e vid ence d b y c h anges in fa sh io n. S o N ik e fa ce th e r is k t h at fa sh io n tr e nds m ay c h ange s o fa st th at N ik e fa ils to fo llo w . F or e xa m ple , fo r a p erio d, th e g lo bal a th le tic s p orts w ear is fo cu s o n p ers o nalit y a nd N ik e ’s p ro ducts s till b e g enera l to th e c u sto m ers th is w ill le ad N ik e g o b ehin d o f th eir c o m petit o rs if th eir c o m petit o rs c a n f o llo w th e tr e nds. F or a noth er e xa m ple , s u ch a s th e s o cia l c h anges, w om en a re b eco m in g m ore fit n ess-c o nscio us a nd a re in cre asin gly b ein g ta rg ete d a s g ro w th p ote ntia l in th e s p ortin g a ppare l a nd fo otw ear in dustr ie s. D ue to c o nsta nt c h anges in c o nsu m er ta ste s a nd f a sh io n, th ese in dustr ie s a re a lw ays c h angin g. If N ik e c a nnot fo llo w th e fit n ess tr e nds in th e m ark e t th ey w ill fa ce r is ks o f lo sin g m ark e t s h are s. T o c o m pete w it h th is r is ks a nd p ro ble m s, N ik e s h ould p osit io n it a s a tr e ndse tte r a nd n ot a tr e nd fo llo w er a nd b e r e sp onsib le to t h eir c u sto m ers . ( S t. J o hn U niv e rs it y , 2 004) 4 .2 F ast c h an gin g o f N ik e’s p ro ducts F ro m th e a bove r is k, th e c h angin g in fa sh io n a nd c u sto m ers ’ p re fe re nce h ad b rin gs n egativ e e ff e ct o n it s m ark e tin g s tr a te gie s. H ence , N ik e s h ould in tr o duce n ew p ro ducts to m ain ta in it s c u sto m er lo ya lt y a s w ell a s a ttr a ct n ew c u sto m er m ark e ts . H ow eve r, it w ill a ls o h ave n egativ e im plic a tio n if N ik e ’s im ple m ent n ew p ro ducts r a pid ly .

A s w e k n ow , N ik e ’s p ro ducts a re fo cu s o n th e a th le te ’s s h oes, a ppare ls a nd e quip m ents a nd th eir ta rg et c o nsu m ers a re fo r th e a th le te s.

B ut n ow th e g lo bal tr e nds a re to b e fa sh io n a nd p ers o nalit y . S o N ik e c h ange it s m ark e tin g s tr a te gie s a nd p ro ducts d esig n to b eco m e m ore fa sh io n a nd fo cu s o n th e y o uth c o nsu m ers . It b rin gs r is ks to N ik e b eca use in th e tr a dit io nal m in d o f c u sto m ers , th ey c o nsid er N ik e o nly s e ll th e a th le tic p ro ducts . T he fa sh io n o r th e c h angin g s ty le p ro ducts is u nim agin ativ e fo r c u sto m ers to p urc h ase . N ot a ll th e c u sto m ers c a n fo llo w th e c h angin g o f N ik e . S om etim es c u sto m ers m ayb e fe el fe d u p b eca use th ey c a nnot fo llo w th e c h angin g o f N ik e ’s p ro ducts w ill le ad N ik e lo se c u sto m ers w hic h d ro p d ow n th e c u sto m er lo ya lt y a nd m ark e t s h are s. ( S t. J o hn U niv e rs it y , 2 004) T here fo re , N ik e s h ould a naly se th e m ark e t a nd c u sto m ers ’ p re fe re nce a s w ell a s c u sto m ers ’ b uyin g b ehavio r fr o m tim e to tim e. N ik e c o uld p re pare s u rv e y fo rm to th eir c u sto m ers in o rd er to h ave m ore u nders ta ndin g o n c u sto m ers ’ ta ste , r e quir e m ents w hen b uyin g s p orts w ear o r fo otw ear, a nd a ls o c o lle ct th e fe edback a nd r e co m mendatio n fr o m c o nsu m ers .

4 .3 E xp an din g t o t h e O vers eas O ne o f M ajo r N ik e ’s m ark e tin g s tr a te gie s is to e xp and to o ve rs e as a nd b eco m e th e le ader in th e w orld . It a ls o w ill b rin g r is ks to N ik e w hen th ey e xp and th eir b usin ess g lo bally . F or e xa m ple , N ik e o uts o urc e s th eir p ro ducts to d eve lo pin g c o untr ie s s u ch a s C hin a, I n donesia , a nd T haila nd. C urre ncy e xch ange r a te flu ctu atio ns c a n d is ru pt th e b usin ess o f th e in dependent m anufa ctu re rs th at p ro duce N ik e p ro ducts b y m akin g th eir p urc h ase o f r a w m ate ria ls m ore e xp ensiv e a nd m ore d if f ic u lt to fin ance . B esid es th at, th e g lo bal e co nom ic r e ce ssio n in flu ence th e o ve ra ll b usin ess o pera tio n in th e o uts o urc in g c o untr ie s. F or e xa m ple , in fla tio n r a te to o h ig h in a n o uts o urc in g c o untr y w ill in cre ase th e c o st a nd r e duce th e p ro fit s fo r N ik e . W hat’s m ore , th e w ar a nd fu el p ric e flu ctu atio ns a ls o c a n le ad to u nsta ble s it u atio n fo r N ik e o ve r th e lo ng p erio d. ( F lo rz a k, 2 011 ) 5 .0 C O M PETIT O RS – A DID AS 5 .1 IF FIC ULT IE S F A CED B Y A DID AS W HEN C O M PETE W IT H N IK E 5 .1 .1 M ark etin g S tr a te g ie s O ne d if f ic u lt y m ost lik e ly to b e fa ce d b y A did as is in it s m ark e tin g, c o m pare d to it s c o m petit o r N ik e , N ik e s p ends m ore m oney o n a dve rtis in g a nd p ro m otin g th eir p ro ducts r e puta tio n, N ik e s p end a bout $ 1.1 3 b illio n a s o f 1 998 in vo lv in g c e le brit ie s lik e T ig er W oods, M ic h eal J o rd an, C arl L ew is e tc . w hile p ayin g th ese c e le brit ie s la rg e a m ount o f m oney ( B edar, 2 002), a s o f 2 010, N ik e s p ent a bout $ 800 m illio n o n N ontr a dit io nal a dve rtis in g b y u sin g o th er m ediu m o f a dve rtis in g th eir p ro ducts o th er th an T V a nd h as r e duce T V a nd P rin t a dve rtis in g b y 4 0% , a nd in 2 006, N ik e in tr o duce d th e N ik e + P la tfo rm w hic h is a m ult i- c h annel, m ult i- s e nso ry in te gra tio n b etw een a pple a nd N ik e te ch nolo gie s th at a llo w s p ers o ns to tr a ck p erfo rm ance ( F lu ff y lin ks, 2 012) in e sse nce , A did as w ill h ave a h ard tim e tr y in g to c o m pete w it h N ik e in te rm s o f a dve rtis in g a nd p ro m otio n, c o nsid erin g N ik e ’s u tiliz a tio n o f lo w la bor c o st o f p ro ductio n, N ik e c a n a ff o rd to s p end s o m uch m oney in c re atin g a w are ness fo r th eir p ro ducts a nd g ain in g c o nsu m ers lo ya lt y b y u tiliz in g c e le brit ie s. A did as w ill h ave to i n ve st m ore m oney o n a dve rtis in g a nd c re ate in nova tiv e m eans o f a dve rtis in g th eir p ro duct, h avin g c o nsu m ers in m in d a nd fo llo w in g th e t r e nds o f te ch nolo gie s, fo r e xa m ple , A did as c a n c o lla bora te w it h IT c o m panie s s u ch a s S am su ng to c re ate in nova tiv e m eans o f a dve rtis in g th eir p ro ducts .

5 .1 .2 A did as a n d R eeb ok R ep uta tio n o n It s F in an ces A did as a nd R eebok jo in in g u p to geth er a s a m erg er w ould b e a g ood d eal fo r le adin g o ve r N ik e b ut th e tw o c o m panie s h ave a b ad r e puta tio n d ue to fin ancia l p ro ble m s w hic h a lm ost le d th em to b ankru ptc y a nd s in ce th ey a re to w ork to geth er. T he e xp ansio n o f th eir b usin ess w ill ta ke a w hile to d eve lo p b eca use th ey h ave to h ave s tr o ng a dve rtis in g s tr a te gie s u ntil th e A sia ns .If th e A sia ns lik e th eir i d eas th en th ey m ig ht a s w ell a dju st to th e c u lt u re in c o untr ie s lik e c h in a s in ce it h as th e b ig gest p opula tio n. In th e lo ng r u n A sia n c o untr ie s lik e C hin a m ig ht a s w ell ta ke a lo ng tim e to w ork w it h th e c o m pany in te rm s o f c o m in g u p w it h fa cto rie s in c h in a. T his m ig ht b e o ne o f th eir b ig gest p ro ble m s w hic h w ill e nable th em ta ke a lo ng tim e to le ad N ik e in te rm s o f th eir m ark e t N ik e . T o g o th ro ugh a ll th at t h ey w ill b e a lo t o f e xp ense s th us th e c o m pany m ig ht r u n b ankru pt a gain . ( A did as-R ebook, 2 011 ) 5 .2 H O W ADID AS C O M PETE W IT H N IK E?

5 .2 .1 D evelo p t h e S m all C om pute r “ S m art S hoe” P ro duct L in e T he d eve lo pm ent o f a p ro duct lin e o f s m art s h oes w ill b uild o n th is r e puta tio n a nd s h ow b uye rs th at A did as is h um orle ss a bout i n nova tio n a nd u sin g te ch nolo gy to a dva nce a th le tic a cco m plis h m ent. T he lin e o f s m art s h oes c o m bin es a m ic ro pro ce sso r o r im pla nte d c o ntr o lle r, s e nso rs , a nd tin y m oto rs a lo ng w it h m em ory a nd b atte ry . T he s e nso rs w ork to s te adily m onit o r, m easu re , a nd s u pply d ata l o okin g a t th e la ndsca pe, im pact o f e ach s te p, a th le te ’s b ody te m pera tu re , e nvir o nm ent te m pera tu re , a nd a th le te ’s h eart r a te . T his d ata c a n s te adily b e fe d to a m ic ro pro ce sso r w hic h a gent m oto rs to a dju st p addin g a nd a ir flo w w it h in th e s h oe. ( D ogia m is e t a l. , 2 009) W ir e le ss G PS s yste m is a noth er fe atu re o n th e s m all c o m pute r p ro ductio n lin e th at e nable s r u nners to d ecid e th eir a ccu ra te lo ca tio n, d is ta nce tr a ve le d, a nd s p eed fr o m th e s h oe’s G PS b y w earin g a s m all w ir e le ss G PS w ris t s tr a p. T he s h oes im pla nte d m em ory c a n k e ep d ata a bout w ork o uts s u ch a s a ve ra ge h eart r a te , b ody te m pera tu re , c a lo rie s b urn t a nd fo rc e o f e ach s te p. F or s it u atio n, in b aske tb all th e m ic ro c a n w atc h h ow h ig h th e a th le te ju m ps a nd h ow h ard o f a la ndin g th ey m ake . A s m any a th le te s d em and g oods c re ate d th at c a n d eliv e r b oth w atc h in g a nd a cco m plis h m ent b ette rin g c a pabilit ie s, th ey w ill fin d A did as th e s o lu tio n th us le adin g to m uch h ig her r e ve nue, p ro fit , a nd m ark e t s h are in s p orts th at A did as a lr e ady le ads a nd in s p orts w here A did as la gs in r e ve nue, p ro fit , a nd m ark e t s h are ( D ogia m is e t a l. , 2 009) 5 .2 .2 Im ple m en ta tio n o f R eb ra n din g R eeb ok P ro gra m A did as G ro up s h ould p hase o ut it s h ig h a cco m plis h m ent a th le tic s h oe lin e a nd r e posit io n it s e lf in th e c a su al fo otw ear a nd a ctiv e fo otw ear m ark e t w it h in th e n ext y e ars . T he h ig h a cco m plis h m ent a th le tic s h oe lin e c a n b e s p onged u p in to th e A did as b ra nd. A did as It s h ould c o nsid er o penin g R eebok r e ta il o utle ts th at m ark e t R eebok a s w ell s ty lis h R eebok a t m ore u psca le d epartm ent s to re s s u ch a s M acy’s a nd N ord str o m . R eebok s h ould e nsu re k e epin g u p a v e ry h ig h le ve l o f q ualit y a nd d ura bilit y o f it s s h oes. H ow eve r, it s h ould w ork w it h m ajo r fa sh io n d esig ners s u ch a s C alv in K le in to c o m e u p w it h a w ell s ty lis h p ro duct lin e o f s h oes m eant fo r a ctiv e , c a su al u se , g ain b ra nd im age a s a n u psca le a nd m ore c u lt u re d s h oem ake r. R eebok s h ould fir s t c o m e u p w it h a lin e o f c a su al b ut w ell s ty lis h s h oes d esig ned b y C alv in K le in th at b le nd q ualit y a nd s ty le . ( D ogia m is e t a l. , 2 009) T he r e bra ndin g o f R eebok c a n h elp A did as to m ake la rg er a dva nce m ents w it h w om en. T hey w ant a s h oe th at c a n b e u se fu l fo r a ll v is ib le f e atu re o f a n a ctiv e lif e sty le . T here fo re , m ark e tin g R eebok a s a w ell s ty lis h lin e o f s h oes m eant fo r a ctiv e lif e sty le m ig ht a llo w A did as to m ake la rg er in r o ads w it h w om en. R eebok s h ould s ta rt a lin e o f w ell s ty lis h s h oes p re pare d to w ard w om en w it h a ctiv e lif e sty le s.

( D ogia m is e t a l. , 2 009) T he o ve ra ll r e bra ndin g o f R eebok s h ould b e fin is h ed to a vo id in te rn al c o m petit io n w it h in A did as G ro up w here th e R eebok d iv is io n is s e en a s th e le ss p ro fit a ble s ib lin g o f A did as a nd to k e ep b uye rs fr o m b elie vin g th at R eebok is n ot a n e xp ensiv e s u bstit u te fo r a n e xce lle nt A did as p ro duct. ( D ogia m is e t a l. , 2 009) 5 .2 .3 E xp an d It s S ponso rs h ip P ro gra m ( M ark etin g) A did as m ain ly fo cu se s in th e E uro pean m ark e t e ve n th ough it is k n ow n in o th er p arts o f th e w orld , w hic h is b eca use o f it s c o lla bora tio n w it h s o cce r e ve nts a ll o ve r th e w orld a nd fo otb all a sso cia tio ns w it h b odie s s u ch a s F IF A , U EFA , le agues, c lu bs a nd in div id ual p la ye rs , in 2 010, A did as e xp erie nce it s m ost s u cce ssfu l y e ar in th e h is to ry o f fo otb all w it h s a le s a bove 1 .5 b illio n E uro s. It a ls o h ad a s u re c lim ax d urin g th e 2 010 F IF A W orld C up o f w hic h it s p onso re d th e w in in g te am S pain a nd th e a diZ ero F 50 w hic h is a ls o a n A did as p ro duct h ad t h e to p s co rin g b oot in th e e ve nt, la stly , A did as F ootb all g ro up o n F ace book m assiv e ly in cre ase d fr o m 1 00,0 00 m em bers to o ve r 6 m illio n m em bers p re se ntly . A did as h as b een a n o ff ic ia l s p onso r o f th e O ly m pic s a nd h as a ls o b een in clu ded a s a s p onso r o f th e 2 012 O ly m pic s; t h is g iv e s it a n e dge o ve r it s c o m petit o r N ik e . ( A did asG ro up, 2 011 ) It s h ould u se th is o pportu nit y to c a rry o ut p re cis e m ark e tin g, b y f o cu sin g o n it s s e gm ent m ark e t w hic h in clu des th e s o cce r, te nnis a nd a th le tic s te am s a nd p ro bably e xp and it s fo cu s to th e u p a nd e m erg in g lo ca l te am s in th e g ra ssro ots , b eca use , th is g ro up o f p eople a re k e en a bout s p orts a nd s p end tim e w atc h in g th em o n th e T V b ut h ard ly g et a cce ss to th em u nle ss th ey p urc h ase th e p ro duct th em se lv e s.

5 .2 .4 C han ge in C onsu m er P erc ep tio n t o P ro ducts A did as c a n a ls o c h ange th e c o nsu m er’s p erc e ptio n a bout it s p ro ducts , m ost c o nsu m ers p erc e iv e A did as p ro duct a s b ein g to o s tif f a nd t h ere fo re a re u nco m fo rta ble w it h it , A did as c a n c o m e u p w it h a d ura ble b ut u se s o ft m ate ria ls fo r it s p ro duct a s w ell a s r e bra nd it p ro duct a s n ot ju st a s p ortin g s h oe b ut a ls o a fa sh io nable s h oe w hic h c o nsu m ers c a n w ear o n a c a su al b asis e xa m ple fo r o utin gs, p artie s e tc .

w hen th is is in stille d in th e m in ds o f th e c o nsu m ers , m ore o f A did as p ro duct w ill b e p urc h ase d b y c o nsu m ers a s it w ill b e p erc e iv e d a s d ura ble a nd fa sh io nable .

5 .2 .5 E nco ura g e P ro duct C usto m iz a tio n A did as c a n a ls o m ake p ro vis io ns fo r c o nsu m ers to c u sto m iz e th eir p ro ducts o nlin e b efo re it is d eliv e re d to th em , th is w ill g iv e c u sto m ers u niq ue a nd a w id e r a nge o f th eir p ro ducts to c h oose fr o m a nd w ill a ls o a llo w th em to u nders ta nd w hat th eir c o nsu m ers r e ally w ant a nd f o cu s o n s a tis fy in g th eir c o nsu m er. W it h e ach c o nsu m er tr y in g to b e v e ry c re ativ e a nd u niq ue in th eir w ay, A did as w ill s h if t it s fo cu s o n t h eir c o nsu m ers fr o m h ow m uch th ey a re to p ay fo r th e p ro duct to h ow m uch th ey c a n b enefit fr o m th e p ro duct. A did as c a n p ro m ote th is f e atu re th ro ugh it s F ace book p age w hic h h as o ve r 6 m illio n m em bers .

5 .2 .6 F ocu s o n E m erg in g M ark et A did as c a n c a pit a liz e o n N ik e ’s w eakn ess w hic h is it s fo cu s o n lo ca l m ark e t, A did as c a n c a ptu re e m erg in g m ark e ts , a nd a lr e ady it h as a l e ad in m ark e t s u ch a s In dia a nd J a pan. In L atin A m eric a , it e xp erie nce s a g ro w th s a le o f 3 8% in 2 007. ( R eC om paris o n, 2 012) A lt h ough i t is c o m petin g w it h N ik e in C hin a, it s h ould fo cu s o n r a nkin g it s in ve stm ent s o le ly o n m ark e ts w hic h o ff e r s u perio r c h annels to lo ng-te rm g ro w th a nd p ro fit p ro sp ects a nd s h ould a ls o fo cu s o n e xp andin g it s s h are to u nre ach ed a re as e sp ecia lly in C hin a, R ussia , A fr ic a a nd th e U nit e d S ta te s. It s h ould a ls o e nsu re th at it d if f e re ntia te s c o nsu m ers ’ b uyin g b ehavio rs a s it d if f e rs in d if f e re nt r e gio ns a nd c o untr ie s a nd u nders ta ndin g th is w ill b e a n a dded a dva nta ge to A did as.

6 .0 C O NCLU SIO N A ND R EC O M MEN DATIO NS F ro m th e a bove a naly sis , w e h ad u nders ta ndin g a bout th e p ro s, c o ns a nd r is ks o f N ik e ’s c o re m ark e tin g s tr a te gie s w it h r e le va nt m ark e tin g th eorie s. B esid es th at, th e d if f ic u lt ie s N ik e fa ce d w hen th ey c o m petin g w it h A did as. W e d is cu ss fr o m th e d is tr ib utio n, p ric e , p ro ducts d esig n, p ro m otio n a nd a dve rtis in g, m ark e t s e gm enta tio n to a naly sis N ik e ’s c o m petit iv e a dva nta ges in th e g lo bal m ark e t. W e a ls o fin d th at th e o th er s id e in flu ence s o f N ik e ’s c o re m ark e tin g s tr a te gie s s u ch a s c o stly a dve rtis in g, r a w m ate ria ls c o sts a ff e cte d b y th e g lo bal e co nom ic , th e s p oke sp ers o n’s b ehavio rs w hic h h as n egativ e in flu ence s to th e N ik e ’s b ra nd im ages. W hat’s m ore , th e r is ks o f N ik e ’s c o re m ark e tin g s tr a te gie s s u ch a s N ik e c a nnot fo llo w th e w orld fa sh io n tr e nds, th e p ro fit s h as a ff e cte d b y th e c u rre ncy e xch ange a nd e co nom ic r e ce ssio n w hen e xp and to th e g lo bal. N ik e h as r e m ain ed a nd c o ntin ues to r e m ain a t th e to p in p ro ducin g a nd d is tr ib utin g th eir s p orts c lo th es a nd e quip m ents . H ow eve r, N ik e s h ould c o nsid er th e c o m petit iv e p re ssu re is v e ry h eavy a nd n ot a llo w th e “ s le ep a t th e to p”. S o N ik e s h ould c o ntin uously fin d e ff ic ie nt m ark e tin g s tr a te gie s to k e ep th eir to p le aders p osit io ns.

T he fo llo w in g r e co m mendatio ns a re s u ggeste d in a s it u atio n w here m ark e tin g m anagem ent is c o m pete nt. N ik e s h ould in cre ase th eir m ark e t s h are s th ro ugh is su e n ew p ro ducts , c o m petit iv e p ric in g s tr a te gie s, a nd a dve rtis e m ent a nd p ro m otio ns a ctiv it ie s. N ik e a ls o s h ould r e str u ctu re m ark e t d om in ance b y s e para te th em se lv e s fr o m th e c o m petit o rs m ain ly th ro ugh m ass p ro m otio n s tr a te gie s a nd p ric in g s tr a te gie s w hic h m ake N ik e m ore a ttr a ctiv e to c u sto m ers . B esid es th at, N ik e m ust in cre ase th eir a w are ness o f c o rp ora te s o cia l r e sp onsib ilit y to s tr e ngth en th eir im age o f th em se lv e s. W hat’s m ore , N ik e s h ould p ay m uch a tte ntio n to th eir R &D d epartm ent to r e se arc h o ut d if f e re nt k in ds o f p eople w it h d if f e re nt ta ste to g et th e m ark e t d iv e rs if ic a tio n g oals .

A ll th e a bove s h ow a c o m pete nt m ark e tin g m anagem ent w hic h c a n h elp N ik e K eep th eir to p m ark e t le aders a nd k e ep th eir c o m petit iv e a dva nta ges. 7 .0 R EFE R EN CES A bhir o opsu r ( 2 009) ‘N ik e – H ow th e B ra nd S urv iv e d u ntil T o day’, ( o nlin e) ( c it e d 1 st M arc h 2 012).

A did as G ro up ( 2 011 ) ‘A did as S tr a te gie s’, ( o nlin e) ( c it e d 1 0th M arc h 2 012). A va ila ble fr o m A did as-R ebook ( 2 011 ) ‘A did as-R eebokM erg er’, ( o nlin e) ( a cce sse d 1 1 th M arc h 2 012). A llic k M ., K eany E ., K oslo w J ., T a nsa m rit A ., T hork e ls o n D . ( 2 000) ‘C om paris o n b etw een N ik e a nd A did as’, ( o nlin e) ( c it e d 2 6 F eb 2 012).

A va ila ble fr o m S oc.d uke .e du/~ s1 42tm 17/c o m pare .h tm B edar S . ( 2 002) ‘P uttin g th e B oot In ’, T he E co lo gis t, 3 2:3 , ( o nlin e) ( c it e d 1 1 th M arc h 2 012).

B oggan S . ( 2 001) ‘N ik e A dm it s to M is ta ke s O ve r C hild L abor’, ( o nlin e) ( c it e d 2 nd M arc h 2 012). A va ila ble fr o m :

h ttp ://w ww.c o m mondre am s.o rg /h eadlin es0 1/1 020-0 1.h tm C lo ke M . ( 2 011 ) ‘M ark e tin g M anagem ent 0 1′, ( o nlin e) ( c it e d 2 6 F eb 2 012). A va ila ble fr o m U RL:

h ttp ://w ww.s lid esh are .n et/m ic h aelc lo ke /m ark e tin g-m anagem ent- 0 1-8 568487 D ogia m is G ., V ija ya sh anke N . ( 2 009) ‘A did as: S prin tin g A head o f N ik e ’, ( o nlin e) ( c it e d 4 th F eb 2 012).

E nderle K ., H ir s ch D ., M ic ka L ., S avin g B ., S hah S ., S ze rw in ski T . ( 2 000) ‘S tr a te gic A naly sis o f N ik e , In c’, ( o nlin e) ( c it e d 2 6 F eb 2 012).

F lo rz a k A . ( 2 011 ) ‘S tr a te gic A naly sis : N ik e ’, ( o nlin e) ( c it e d 2 9th F ebru ary 2 012).

F lu ff y lin ks ( 2 012) ‘H ow N ik e ’s M ark e tin g R evo lu tio n h as R esu lt e d in a 4 0% R eductio n in T V a nd P rin t A dve rtis in g in th e U .S .’, ( O nlin e) ( a cce sse d 1 1 th M arc h 2 012).

J e ro m e A . ( 2 005) ‘P ro s, C ons a nd R is ks o f N ik e ’s M ark e tin g S tr a te gie s’, ( o nlin e) ( c it e d 1 2th M arc h 2 012).

J o nes, S ( 2 012) h ttp ://w ww.s tu dy-a id s.c o .u k/b usm an/b usm an2.h tm l M BA D is se rta tio ns S ara h H opkin s ( 2 008) ‘N ik e ’s M ark e tin g S tr a te gie s’, ( o nlin e) ( c it e d 9 th M arc h 2 012).

S m it h L . C . ( 2 010) ‘M ark e tin g S tr a te gie s o f N ik e ’ ( o nlin e) ( c it e d 1 0th M arc h 2 012). S t. J o hn U niv e rs it y ( 2 004) ‘N ik e ( N ke )’, ( o nlin e) ( c it e d 1 st M arc h 2 012).

T a ulli T . ( 2 011 ) ‘N ik e S hare s’, ( o nlin e) ( c it e d 2 nd M arc h 2 012).

T E D ( 2 011 ) ‘N IK E: N ik e S hoes a nd C hild L abor in P akis ta n’, ( o nlin e) ( c it e d 2 8th F eb 2 012).

S ourc e b y S te ve J o nes T a gs: m ark e tin g , s m all b usin ess m ark e tin g T ra ckb ack fr o m y o ur s it e . M AR KETIN G S ER VIC ES W EB D ESIG N G RAPH IC D ESIG N M AR KETIN G B LO G G RAPH IC D ESIG N P R IN TIN G S O CIA L M ED IA M AR KETIN G P R O FE SSIO NAL W RIT IN G A R E Y O U M AKIN G Y O UR M AR KETIN G E FFO RTS T H IS ‘F R ESH & E ASY’?

H O W T H E IN TE R NET H AS H ELP ED T H E S M ALL B U SIN ESS M AR KETIN G C O M MUNIC AT IO N W IT H S U BLIM IN AL M ESSAG ES – H O W E FFE C TIV E IS IT ?

D IG IT A L M AR KETIN G C O URSE A T IIC M ( M UM BAI) 1 1 T Y PES O F M OBIL E M AR KETIN G C USTO M ER P R O FIL E T E M PLA T E – L E AR NIN G IM PO RTA N T C LIE N T IN FO RM AT IO N W HAT Y O U C AN L E AR N F R O M F A SH IO N D ESIG N A N D M AR KETIN G S C HO OL