Marketing Strategy

A Case Study of NIKE

Marketing Management
Master of Business Administration, UNITEN
Semester 1 2017/2018
31 May 2017

SB22280 Ahmad Farid Jamil

SB22264 Ahmad Rizal Muhammad Arif
SB22236 Hisyam Hasib
SB22450 Elangkoh Ragiana

Marketing Management, Master of Business Administration, UNITEN

 A strong company brand ensures the sustainability of the business
Variety of product line made the company diversify its income streams

1 Initial Business Name 2 Rebranded Business Name 3 Product Categories

Running NIKE Basketball Jordan Brand

NIKE, Inc.
Football Mens Training Womens Training
Incorporated in 1967
Founded in 1962 Founder Philip Knight believed
Focusing on providing high- high-tech shoes for runners
quality running shoes designed could be manufactured at
for athletes by athletes competitive prices if imported
from abroad Sportswear NIKE Action Sport Golf
Source: 1 Marketing Management, 15e, Kotler Keller
2 http://s1.q4cdn.com/806093406/files/doc_financials/2016/ar/docs/nike-2016-form-10K.pdf
Marketing Management, Master of Business Administration, UNITEN 2
 NIKE is doing well in its financial performance over 5 years period
An increasing trend in its financial performance promise a stable business future

Source: http://s1.q4cdn.com/806093406/files/doc_financials/2016/ar/select_financials.html

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 Positioning the business globally ensure the company to maximize its revenues

1 Operating Segments 2 United State Market 3 International Market

47%
revenue
53%
revenue

North America China NIKE Brand NIKE Brand

Western Europe Japan Jordan Brand Converse
Central & Eastern Hurley
Europe Converse

Source: http://s1.q4cdn.com/806093406/files/doc_financials/2016/ar/docs/nike-2016-form-10K.pdf

Marketing Management, Master of Business Administration, UNITEN 4

 Embarking the right marketing strategy is the key success in dominating the
market (1/2)
However the strategy involve several risks and rewards
The PROs
Business Expansion Advertising & Promotion
Pyramid of Influence
Celebrity Specialist

Celebrity

Specialist
Value Customer Distribution
Strong BRAND
Proposition Segment Channels Generalist

Focusing Niche Market Targeting consumer NIKEiD enable Sponsorship

i.e high tech running who are serious in customer to design
shoes performance, comfort their own shoes
Diversify to public who and safety with High premium
are serious in trainings reasonable price products given to
& sports certain distributor
Targeting active people Low priced product Brazil Tiger Wood Cristiano Maria Michael
who enjoy high quality discounted price at the Football in Golf Ronaldo in Sharapova Jordan as
sport goods i.e retail stores team won Football in Tennis Spokesperson
footwear E-commerce offering 1994
Focus on creating 65 styles of sport World Cup
premium consumer shoes to the US market
experiences

Marketing Management, Master of Business Administration, UNITEN 5

 Embarking the right marketing strategy is the key success in dominating the
market (2/2)
However the strategy involve several risks and rewards

The CONs The RISKS

Intense Market Rivalry High Marketing Cost Expanding to the Less Sensitive to Fast Changing of
Competing with ADIDAS, REEBOK, Increasing cost in handling inventory, Oversea Social Responsibility NIKEs Products
PUMA designing, advertising and
Customer switching cost is LOW production. Outsourcing its NIKE to practice Market demand incline
Product differences among the players Inflation effect raised cost of raw product to developing holistic marketing toward trend & fashion
ADIDAS specializes in footwear for materials and transportation countries such as dimension of non- Nike should introduce
men, women and children (10 years NIKE to increase its price & reduce its China, Indonesia & finance performance new products to
30 years) marketing budget affecting its Thailand marketing related to maintain its customer
NIKE focus in footwear for men & future growth Currency exchange risk eco-friendly system loyalty as well as
women (15 years - 35 years) Employed child labour in Cambodia & Bad perception on NIKE to consider attract new customer
NIKE could diversify to children India reducing production cost but Made in China ethical, social and markets
segment affecting brand image production environmental effects NIKE to change its
NIKEs distribution strategy mainly of marketing and marketing strategy and
focus in domestic market (US) programs product designs

Marketing Management, Master of Business Administration, UNITEN 6

 Understanding the key features of the company will help other competitor to
compete in the same field
Business Position Marketing Strategy Business Strategy
Pyramid of Influence

TOP Apparel &

Differentiation Strategy
Footwear Manufacturer Partner with high profile and influential
athletes, coaches, teams and leagues to
promote its brands
Product Diversification
31% Celebrity Specialist
50%

US Market International Market

NIKE+ NIKE+ Kinect
Focusing Products Celebrity
Acquisition
Running Action Sport Basketball
Specialist

Generalist
Mens & Womens Training
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 Crafting an appropriate marketing strategy will enable a company to operate
competitively in an established market
Market
Development
1st Mover Advantage establishing business
at which NIKE has not entered yet
Late Mover Advantage taking advantage
on the learning curve cost by NIKE in its market
Strengthening Marketing Strategy
Offering higher values/price to the
winning teams, athletes, coaches,
teams & celebrity
Sponsoring movie actors & actress
Sponsoring major events and teams
Adopting Board Differentiation
Strategy - Adidas brand as a lifestyle
shoe company i.e sport and daily life
Acquiring Other Company
REEBOK
Taylor Made
Diversification of product for other sports
Marketing Management, Master of Business Administration, UNITEN
Product Product
Development Promotion
Eco-Friendly Product Announcing the public that the
DryDye Technology uses NO Water, 50% sponsored winning teams/athletes won
fewer chemical & less energy because they are using Adidas products
Tiny, minimal weight, recyclable & reusable
sensors and processor installed in the shoes
Sponsoring small/local sports events,
Technology Innovation
Partnership Samsung phone is used as
athletes, clubs and schools To get close
with local people and gain competitive
fitness gadget while wearing ADIDAS shoe for
training advantages
Climacool - ventilation system with energy
management system that guide and drives an Establishing more outlets in strategic
athletes foot through each strides places while increase promotion via
Smart shoes - ability to help sportsman internet enable user to look and feel of
performance and stamina by sensing body
temperature, heartbeat, ambient
their products
temperature and etc. It will subsequently
adjust cushion and air pressure in the shoes
8
 THANK YOU

Marketing Management, Master of Business Administration, UNITEN 9