A comparative analysis of strategies and business models of. Similarly nike outsources distribution to firms that specializes in logistics services. The corresponding intensive strategies grow nike s global sports shoes, apparel and equipment business. The marketing strategy of nike invests a lot in commercials and product promotion. Nike and international labor practices nike a condensed nike football. The logo is much like the name in that it is easily recognizable and distinct.
What sort of marketing strategy has nike used to achieve and maintain this level of market dominance sure, the highprofile celebrity endorsements probably play a role, but for the most part. By this strategy, nike measures the value customer is willing to pay for every product. Nike primarily does its business in three main strategic business units. Nike introducing a new product nike made a successful entry in the 1980s by introducing the nike air technology in its. Executive summary this report examines how nike utilizes their social media. A case study of nike with identifying marketing challenges. Not only does it own 48% of the american athletic footwear market, but its share of the basketball footwear market is at a staggering 96%. Social entrepreneurship, cause marketing, and a partnership with nike homeless world. The corresponding intensive strategies grow nikes global sports shoes, apparel and equipment business.
Nike faced a lot of challenges in its journey to emerge as a world leader in sports industry. After the success of the visible air line, bruce kilgore, head of nike s research and development department, wanted to develop a shoe whose entire heel was a visible air bag. A comparative analysis of strategies and business models. It embraces a multi brand strategy, emphasis on expanding activities in. Constant innovation has been the byword for nike s success.
Objectives of d iversification s trategy reduce the companies dependence on the swoosh brand. The corresponding intensive strategies grow nikes global sports shoes, apparel and equipment. Nike is a market leader in the sportswear and sports equipment and employs value based pricing strategy to facilitate growth in sales and profits of the company. The marketing strategy of nike rested completely upon a product image which is favorable and allowed it to develop into one of the best multinational companies after a while nikes favorable product icon has been kept optimistic because of the strong relation with the company logo that is quite distinct and unique as well as the product slogan that has been utilized in commercials. Nike, which first started experimenting with social media and networking in 2004, has been consistently reducing its spending on traditional advertising. Case study of nikes social media marketing strategy. The nike swoosh is one of the most universally recognized. A comparative analysis of strategies and business models of nike, inc. Nike is the largest seller of athletic footwear and athletic apparel in the world acclaimed.
Nike used to operate under the strategy of guerrilla marketing to promote its. Sporting goods giant nike is raising its prices at a time when other companies are turning to increased markdowns and heavy promotional activity to drive traffic. Social strategy at nike case solution and analysis, hbs case. Social strategy at nike case solution and analysis, hbr. Evolving marketing strategies behind nikes success t1. Is a marketer of sports apparel and athletic shoes. A strategy from which nike can benefit from social media is through consistently posting content on platforms like youtube and instagram. How nikes marketing strategies helped it become a global brand. Products products cont it is as thought the products themselves will give you qualities that make you more attractive other people as well.
Marketing plan of developing and promoting sport shoes. However your effectiveness on social media is decided by your content and your style. Social media has added impact to marketing and become the favorite venue of brands for the low cost access to a large customer base it offers. Nke unveiled its strategy and key initiatives to achieve sustainable, longterm growth across its global portfolio of brands and businesses. Its safe to say nike s at the top of its game right now. What nike pretends via marketing is to capture more costumers, but the main mission is that nike takes part of the costumers lifestyle. Oneline summary nike transformed its marketing strategy by embracing key digital strategies such as data analytics, social engagement and storytelling. Nikeintroducing a new product nike made a successful entry in the 1980s by introducing the nike air technology in its. Constant innovation has been the byword for nikes success. Marketing plan of developing and promoting sport shoes online. Nike was able to reduce the companys advertising by 40% and now they are linking social strategy with the product and experience. Business analysis nike the company was founded in 1964 by a student of phil knight, middledistance runner at the university of oregon team, and his coach bill bowerman. Nike, strategy, product differentiation, innovative and outsourcing. Nikes strategy to become the leader in their market.
Nike is positioned as a premiumbrand, selling welldesigned and expensive products. The problem as one of the biggest sports brands in the world, nike was not struggling for exposure or attention. Integration, incentives and innovation nikes strategy to. Integration, incentives and innovation nike s strategy to improve social and environmental conditions in its global supply chain angharad porteous and sonali rammohan 19th november 20 nike s approach to managing supplier responsibility has greatly evolved since the 1990s, when the. Is nike increasing focus on its digital initiatives. Adding social media to the marketing mix nike football. By referring to legendary trackand field coach bill bowermans quotation, nike states that the vision of their company is to bring inspiration and innovation to every athlete in the world. Do the swot analysis of the social strategy at nike, portuguese version. Introduces 2015 global growth strategy business wire. Needless to say, with nike s return to an emphasis on performance, research and development people played a dominant role in the companys strategy making. Social entrepreneurship, cause marketing, and a partnership with nike homeless world cup. Market segmentation sportsmen are the majority consumers of nikes products. The strongest of these three sbus is the footwear category where nike has a hold of 35% of the market, the largest share by %. Oct 26, 2010 nike s marketing strategy is an important component of the companys success.
Bill bower man a track and field coach was the cofounder of nike. Nike uses this innovation in order to become a more sustainable company, which is the second key aspect of its business strategy. And analysts say the strategy is singlehandedly driving growth in the us sneaker market, as well as helping the company to carve out a new competitive advantage. Social strategy at nike case harvard business school.
This case study analyses the everevolving marketing strategies adopted by. World cup 2010 south africa social media marketing hitting the wall. The strategic opportunity for nike is to build and promote the use of internet. Nike lures customers with a marketing strategy centering around a brand image which is attained by distinctive logo and the advertising slogan. Nike have contracts with many of the worlds best athletes. This case study analyses the everevolving marketing strategies adopted by nike to become a global brand founded in. Doc case study social responsibility strategy for nike. Nikes consumer direct offense, its strategy to revive growth particularly in the north america market where sales just fell 3% in 1q2018, may be jeopardizing its long term prospects by alienating. Pdf this report is all about to show a marketing plan for nikes products. Oct 27, 2017 nike s consumer direct offense, its strategy to revive growth particularly in the north america market where sales just fell 3% in 1q2018, may be jeopardizing its long term prospects by alienating.
Social strategy at nike, portuguese version 10 steps. Nikes marketing strategy is an important component of the companys success. This is extremely because of the usefulness that goes along with the items. Needless to say, with nikes return to an emphasis on performance, research and development people played a dominant role in the companys strategy making. Once you finished the case analysis, time line of the events and other critical details. In india, nike s strategy was to increase local manufacturing to be price competitive. Jul 24, 2014 sporting goods giant nike is raising its prices at a time when other companies are turning to increased markdowns and heavy promotional activity to drive traffic. Various areas and lines of diversification beach style sport clothing hurley hockey market bauer golf market other top selling categories of are shoes for men, women and children, basketball and cross training etc. Nike in particular is known for its innovative culture.
The findings of the study highlight nikes strategies which. With a drastic change in business strategy to counterback the problem, effective use of public relation policies, committing itself to corporate social responsibility, committing to health and safety of employees, creating some benchmark working standards and an informed work place for representatives to audit independently, nike can turn back. How nikes marketing strategies helped it become a global. Evolving marketing strategies behind nikes success. Marketing management albert alarcon ros department of business management, international university of catalonia email. Nike strategy how nike became successful and the leader. The nike marketing strategy that most of us recognize isnt the one that made them famous, at least not in the early days. The nike marketing strategy has emerged from their past footings that have helped it secure a renowned positioning within the industry. Establish a new symbol representing improved labor.
Social strategy at nike case solution and analysis, hbr case. The american manufacturer, through its marketing strategy which rests on a favorable brand image, has evolved into a large. Nike marketing mix 4ps nike marketing strategy mba. Nike has a very clear cut business strategy and specific goals it wants to accomplish.
Social strategy at nike case study solution, social strategy at nike case study analysis, subjects covered business to consumer competitive advantage by mikolaj jan piskorski, ryan johnson source. Tie individuals with corporate social responsibility 2. Ali mahdi1, mohammed abbas2, taher ilyas mazar3 1,2,3mba student, university of bahrain, kingdom of bahrain dr. Step 4 swot analysis of social strategy at nike, portuguese version. Innovation is at the heart of nikes business growth strategy. Nike depends upon tightly controlling the athletic footwear supply chain and gettingretailers to commit to orders far in advance. Soon the company will discover if this strategic jump will be reflected on the bottom line. Social strategy at nike case solution, social strategy at nike case analysis, social strategy at nike case study solution, nike, which first began to experiment with social media and networks in 2004, consistently reducing its spending on traditional advertising. This report talks about the major challenges and the steps taken for remediation. Nikes strategy implementation history development growth. Social strategy at nike case study social strategy at. Initially it was called blue ribbon sports and specialized in the order of athletic footwear in asian countries and resell them in the u. The company that i am going to develop a social responsibility strategy is the nike company that was formed in 1962by bill bowerman and phil knight as a result of collaboration of the two to come up with the most sufficient athletic shoes after the.
Nike is successful because it has some of the best, if not the best, marketing in the world. In support if nike in the use of only one generic strategy, an experiment by dess and davis 1984 found that firms employing only one of porters generic strategies outperformed firms. The focus of this paper is to analyze the social media efforts of two publicly traded consumer retail companies, nike and adidas, and to identify elements of their. Focus on the following zero down on the central problem and two to five related problems in the case study. Nike strategy how nike became successful and the leader in. Furthermore, j ust like any true content marketing strategy, it isnt really much of a strategy at all. Social strategy at nike case analysis, social strategy at nike case study solution, social strategy at nike xls file, social strategy at nike excel file, subjects covered business to consumer competitive advantage by mikolaj jan piskorski, ryan johnson source. Nike s social media strategy and its creative execution can be worth following for other brands. Social strategy at nike case solution and analysis, hbs. Discovering the nike marketing strategy that put them on the map is where the gold is. While nike is a large and powerful brand, they realize that smaller upstart brands, like under armor, can be a competitive threat. This article will cover how nike became the leading company in sports brand apparel.
Over the last three years, the company has used these insights to experiment with innovative sustainability solutions including its considered design ethos, which has enormous potential to drive. It was groundbreaking technology in wearable tech that resulted in an 8. Nikes dominant generic strategy is in the differentiation strategy wherein the other two generic strategies may not be a prioritized strategy for nike. This estimate is based upon 3 nike director of strategy salary reports provided by employees or estimated based upon statistical methods. Exclusive report 50 pages on marketing strategy of nike can be downloaded here. After the success of the visible air line, bruce kilgore, head of nikes research and development department, wanted to develop a shoe whose entire heel was a visible air bag. Do the swot analysis of the social strategy at nike. Nikes apparel holds only 7% of the industry share and is struggling to compete with other companies.
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