NIKE
MARKETING
STRATEGY
AMRAN DEWANGGA / 2171001013
ARIEF RAHMAN / 2171001028
ALEXANDER SIDAURUK / 2171001033
Presentation Outline
Intro- About Nike
Acquition-Deacquition
4P Nike
Nike Value Chain
Pro – Cons and Risk
About Adidas
Adidas SWOT Analysis, How to compete Nike
ABOUT NIKE
Nike, is an American multinational corporation
that is engaged in the design, development,
manufacturing and worldwide marketing and
sales of footwear, apparel, equipment,
accessories and services.
Nike, originally known as Blue Ribbon Sports (BRS),
was founded by University of Oregon track
athlete Philip Knight and his coach Bill Bower man
in January 1964. From 1971 it is called as NIKE .
Nike, head quarter is located in Beaverton,
Oregon, US.
Nike is currently having 44,000 employees.
Acquisition-Deacquisition
Nike Value Chain
4P
PRODUCTS
Shoes, Jerseys, Shorts, Base layers for a wide range of sports.
Nike recently teamed up with Apple Inc. to produce the Nike+.
PROMOTION
1994-Victory of Brazilian team.
2008-09- Hosted the Human race
2009-launched Tiger web talkback session.
PRICE
Nike uses vertical integration in pricing
The pricing is based on the basis of premium segment as target customers.
PLACE
Nike shoes are carried by multi-brand stores and the exclusive Nike stores
across the globe.
Most of the factories are located in Asia,including Indonesia, China, Taiwan,
India, Thailand, Vietnam, Pakistan, Philippines, and Malaysia.
PRO-CONS & RISK in
Marketing Strategy
PROS:
NIKE + (Plus) (Apple).
Nike customer designing shoes.
Sponsorship
CONS:
High costs incurred in advertisement.
Nike is not an eco-friendly product.
Child labor issue.
RISK:
Being one of the major players in the World Market
when ever Nike launches a new product it has to
make sure it addresses to the concerns of the Global
Market, which is difficult to achieve.
ADIDAS
Adidas AG is a German multinational corporation
that designs and manufactures sports Shoes,
Clothing and Accessories.
The company is based in Herzogenaurach,
Bavaria, Germany.
Adidas also produces other products such as
bags, shirts, watches, eyewear and other sports
and clothing-related goods.
Focusing on European market
ADIDAS SWOT
STRENGTH OPPORTUNITIES
Market penetration.
Adidas has a high brand value
among the consumer. Developing new products to attract new
customers.
Sponsoring major sports events Contribute to corporate social responsibility
including Olympics and sports activity.
team.
Strengthen its market position.
Adidas product are available in Expand customer base.
world wide.
Merger and acquisition.
Produces of wide variety of THREAT
products.
Strong competition (Nike and Puma).
Strong work force.
Demand of the product could decrease
due to economic slow down in
Customer retention ratio is high.
European countries.
WEAKNESS
Social and environmental concerns due to
Price of the product is high. human rights violation and employment.
Macroeconomic risk due to change in
It has been serving limited consumer expanding habit.
segments.
Technological and design changes.
Cost structure of the company is
high.
PLAN OF ACTION
Focusing on R&D
Concentrating on emerging markets.
Creating strong workforce.
Develop products such as Sport wear, Sunglasses
and Jewellery.